Treasury Eyes Private Credit Oversight, Threatening Apollo’s $224B Lending Arm
US Treasury advisor Scott Bessent said the department will intensify monitoring of the $1.5 trillion private credit market to detect systemic risks arising from rapid growth in leveraged loans. Heightened scrutiny could trigger reporting mandates affecting Apollo Global Management’s $224 billion private credit portfolio.
1. Treasury Plans New Oversight of Private Credit
Scott Bessent signaled that the Treasury Department will closely track the $1.5 trillion private credit market, focusing on rapid growth areas like leveraged loans and direct lending for signs of systemic stress.
2. Potential Impact on Apollo’s Credit Business
Apollo Global Management’s private credit unit, with about $224 billion under management, may face new reporting requirements, capital tests or underwriting adjustments that could raise compliance costs and weigh on new deal activity.