Apollo Warns Private Equity Must Cut Valuations to Drive Asset Exits

Key Facts

1Apollo Co-President Scott Kleinman stated that longer hold periods are negatively impacting internal rates of return (IRRs).

2Kleinman expects private equity managers will have to start capitulating on valuations to facilitate asset sales and exits.

Amid a high-interest-rate environment that has stalled the deal-making landscape, Apollo Co-President Scott Kleinman warned that the private equity industry faces mounting pressure from extended asset hold periods. Kleinman stated that these longer durations are negatively impacting internal rates of return (IRRs) for funds. He expects that private equity managers will eventually have to capitulate on valuations to clear the backlog of unsold assets and facilitate exits.

This warning comes as alternative asset managers face similar headwinds; recent earnings reports from peers like Blackstone and KKR have shown a marked slowdown in exit activity compared to previous years per market data. Industry experts suggest that the valuation gap between buyers and sellers remains wide, necessitating a realistic re-pricing of portfolios to restore liquidity to the sector.

In the public markets, APO shares stood at $133.88 at close on June 12, 2026, after reaching an intraday high of $136.32. Investors are now looking toward upcoming economic catalysts, including speeches from Federal Reserve officials, to gauge the future trajectory of financing costs and its subsequent impact on alternative asset valuations.