Keep pulling the thread on Chris Edson.
Apollo holds 25% to 50% of every loan it originates on its own balance sheet, primarily through Athene.
Over the last five to six years, approximately one-third of all private equity buyouts have been software companies.
Apollo's exposure to software lending is approximately a couple of percent of its Assets Under Management (AUM).
Apollo originated $300 billion of assets in the last year.
One of Apollo's three largest origination platforms is Atlas, a warehouse lending business with approximately $50 billion in assets that was acquired from Credit Suisse.
Apollo has $35 billion of its own company capital invested in its subsidiary, Athene.
Regulatory filings for Apollo's insurance company, Athene, contain a complete list of every loan on its balance sheet, including the borrower's name, maturity, and size.
The market for private credit related to high-yield financing for private equity buyouts is estimated to be between $1 trillion and $2 trillion.
The total capital exposure to software within the private equity buyout market is estimated to be in the hundreds of billions of dollars.
Chris Edson was able to use the AI model Claude to build a progressively difficult math game for his daughter in approximately 60 seconds.
Chris Edson believes software companies with no moat, no proprietary data, quick installation, and no regulatory overlay are likely to face disruption from AI over the next couple of years.
Steve Eisman believes the ability of SaaS companies to raise prices is significantly weaker now than it has been in the last 30 years due to emerging risks from AI.