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Major Asset Managers Pivot Strategy as Private Credit Market Faces Headwinds

Leading investment firms are reshaping their private credit operations as portfolio valuations decline across the $1.8 trillion market. Apollo Global Management reported quarterly losses tied to weakening asset values, prompting the firm to raise $6.5 billion for a hybrid debt-equity fund strategy. This reflects broader efforts by KKR, BlackRock, and Apollo to navigate performance challenges in the sector. Meanwhile, private credit lenders including Apollo and Blackstone are mobilizing capital for major corporate financings, such as a roughly $35 billion facility for chipmaker Broadcom. Industry strategists debate the effectiveness of more frequent asset valuations in improving market transparency. The shifts signal that major players view structural adjustments and expanded financing capabilities as essential to navigating current market conditions.