The United States holds a near-monopolistic and structurally superior position in global capital markets, evidenced by its deep, $15 trillion securitized market compared to Europe's $500 billion.
The convergence of public and private markets is inevitable, with most private assets destined to become more liquid through innovations like tokenization.
Apollo's unique advantage stems from its massive, permanent capital base from the Athene insurance balance sheet, which allows it to originate and hold long-duration, complex credit assets at a scale few others can match.
Geopolitical shifts, particularly the global refocus on national sovereignty in sectors like defense, energy, and chip manufacturing, are creating the most significant investment opportunities.
There is a massive, untapped opportunity to bring alternative investments, particularly private credit, to the retail and private wealth channels, which are currently vastly under-allocated.
▶The Apollo Flywheel: Integrating Insurance, Origination, and Asset Management
Zito describes a self-reinforcing business model where Apollo's insurance arm, Athene, generates massive, stable liabilities through annuity sales ($1-2B/week). This capital is then deployed into assets sourced by a network of acquired origination platforms, creating a proprietary deal flow that feeds its nearly $800 billion AUM, the majority of which is in credit.
This vertically integrated model allows Apollo to manufacture its own long-duration liabilities to perfectly match the complex, illiquid assets it creates, giving it a significant competitive advantage over traditional asset managers reliant on third-party capital.
▶The Inevitable Blurring of Public and Private Markets
A core thesis for Zito is that the distinction between public and private assets will diminish over time. He points to the inefficiency of traditional fixed income markets and Apollo's experiments with tokenizing funds and making markets for private securities as the first steps toward a future of continuous trading and greater liquidity for private assets.
Zito's vision positions Apollo not just as a participant but as a key architect of future market infrastructure, aiming to capture value by increasing the velocity and accessibility of the assets it originates.
▶Geopolitics as a Primary Investment CatalystMay 2026
Zito argues that geopolitical tensions in Europe and the Middle East are forcing a global 'refocus on sovereignty.' This trend is driving massive capital needs in defense, AI, semiconductor manufacturing, and energy infrastructure, creating large-scale financing opportunities that align with Apollo's capabilities.
This perspective frames large-scale private credit not just as a financial instrument but as a tool for executing national industrial and security policy, positioning firms like Apollo as critical partners to both corporations and governments.
▶The Untapped Retail Market for AlternativesApr 2026
Zito highlights a major market inefficiency: an estimated 91% of private wealth clients have no exposure to alternative investments. He sees this as a vast, untapped market, drawing parallels to the explosive growth of the ETF market, and suggests the next wave of growth for asset managers will come from creating products that bring private market returns to this audience.
While the potential market is huge, the challenge lies in product structuring and distribution, requiring a fundamental shift in how illiquid assets are packaged and sold to comply with retail regulations and meet liquidity expectations.