Apollo Exec Declares Private Software Valuations "Wrong"
In previously unreported comments made public on March 15, 2026, John Zito, a senior executive at Apollo Global Management, issued a stark warning on private market valuations, stating, "I literally think all the marks are wrong." While Apollo later clarified the comment was directed specifically at software companies, the statement from a top dealmaker at one of the world's largest alternative asset managers has intensified scrutiny of the sector's high valuations. The charge suggests a growing disconnect between the carrying value of private assets on paper and their true market worth.
Private Credit Stress Mounts With Bank Markdowns
The skepticism over valuations aligns with tangible signs of stress in the private credit market, which provides the debt financing for many private equity deals. JPMorgan recently reduced the value of loans pledged as collateral by some of its private credit clients, signaling concern about underlying borrower health. This move follows increased redemption requests from retail investors at major private credit funds managed by Blackstone and Blue Owl Capital. Much of the anxiety centers on loans to software companies, where investors worry that rapid advances in artificial intelligence could disrupt established business models, rendering some borrowers less creditworthy. These concerns were heightened by the collapse of auto-related borrowers Tricolor and First Brands in 2025.
Goldman Sachs Flags $220B Retail Fund Vulnerability
While industry insiders argue most of the private credit market is insulated from liquidity shocks, strategists at Goldman Sachs have pinpointed a specific area of risk. They estimate that $220 billion, or roughly 20% of the industry's total lending exposure, sits in retail-focused evergreen funds. Unlike traditional long-duration funds that lock up capital, these vehicles allow investors to request withdrawals, creating a potential vulnerability if redemption requests accelerate. This corner of the market has grown rapidly as managers chased higher yields for individual investors, often by backing leveraged buyouts of companies with lower credit ratings. Despite the concerns, Oaktree Capital Management co-founder Howard Marks sought to calm fears of a systemic crisis.
There's not a systemic problem with private credit.
— Howard Marks, Co-founder of Oaktree Capital Management.
However, Marks cautioned that the sector's rapid growth has likely funded weaker lenders and riskier deals, which will be exposed when economic conditions eventually deteriorate.
