APOLLO CHIEF: AI CAPEX 'UNPRECEDENTED,' RATES TO STAY HIGH

Zelter outlined Apollo's strategic positioning in the AI boom during a Bloomberg Surveillance appearance, citing partnerships with Nvidia and the New York Yankees as evidence of the firm's diversified exposure to emerging markets. The executive characterized current AI capex spending as operating at an "unprecedented" level, signaling sustained demand for infrastructure investment. On monetary policy, Zelter stated that "rates are going to be higher for a while," suggesting the Federal Reserve will maintain elevated borrowing costs despite recent economic data. Apollo's partnerships reflect broader trends in private capital deployment, with asset managers increasingly targeting infrastructure and technology sectors. The Nvidia partnership positions the firm to benefit from chip demand driven by AI deployment, while the Yankees investment signals interest in sports entertainment assets. Zelter's comments align with growing consensus among institutional investors that the current rate environment will remain sticky, complicating refinancing decisions for leveraged portfolios.