Private credit houses, such as Apollo, have seen significant growth since the global financial crisis
Apollo's CEO, Marc Rowan, faced misunderstandings about the industry during a meeting with the CEO of a large European bank
The bank CEO criticized Apollo and other lightly regulated asset managers, referring to them as part of the "shadow banking" market
Rowan defended Apollo, highlighting the higher percentage of investment-grade debt on their balance sheet compared to the European bank
Apollo aims to match its assets and liabilities from a duration perspective, distinguishing itself from traditional banks that borrow short and lend long
Rowan emphasized Apollo's higher equity capital and Tier 2 capital ratios compared to the European bank
Private credit and equity groups have gained importance since the 2008 financial crisis and the implementation of the Dodd-Frank law
Big banks, once considered Wall Street's leaders, are now less leveraged and required to hold more capital
Regulatory decisions by the US Federal Reserve have limited the scope of acquisitions and mergers for big banks
This has created opportunities for firms like Apollo, Blackstone, and KKR to expand in the financial market by assuming risks in areas where others are not willing to tread