Apollo Executive Says Investors Overpaid for Private Companies

Apollo Global Management Inc.’s co-head of private equity said investors are right to be skeptical of private market valuations, as many sponsors overpaid for assets.

“The air is very slowly coming out of that balloon,” Matt Nord said in an interview Tuesday with Bloomberg TV at Apollo’s New York headquarters. “You can question some of the private market valuations.”

Nord said his firm is not exposed to the challenges facing many in the industry surrounding valuations, as it uses conservative assumptions in its underwriting. The firm typically buys assets at six to seven times, Nord said.

“The biggest issue ...