Apollo’s Zelter Sees Chance for Distressed-Debt Bargains in 2023

Apollo Global Management Inc. Co-President Jim Zelter sees potential opportunities to invest in distressed companies starting next year, and says he’s intrigued by collateralized loan obligations now.

The alternative-asset manager could see more distressed investments in its 10th flagship buyout fund than in the preceding vintage, as higher interest rates threaten to push the global economy into a recession. Opportunities could emerge in the next 12 to 15 months, Zelter said Tuesday in an interview at the Greenwich Economic Forum in Connecticut.

“You’ll certainly see opportunities over in Europe because of the fundamental challenges they’re having with energy prices ...