Apollo’s Head of European Credit Eyes Deals in Defense, AI

Apollo Global Management Inc. is aiming to invest in artificial intelligence, defense and infrastructure in Europe, where trillions in spending is needed, its co-head of European credit Tristram Leach said in a Bloomberg TV interview.

The New-York based firm thinks the continent requires $18 trillion in investment to catch up in these areas, so that means private market funds will play a significant role alongside public markets and banks, he said.

“There is an enormous amount of spending that needs to happen in Europe,” Leach said, adding Apollo is ready to lean into the investment needs of the continent.

Europe has been mobilizing financing and wants to cut red tape in an effort to jump-start its fragmented defense industry, with NATO members having agreed to steeply increase their military spending. Germany alone is set to double its annual defense budget, while it also plans to create a €500 billion ($584 billion) infrastructure fund.

Blue-chip funds such as Carlyle Group Inc. and Ares Management Corp. as well as boutique investment shops like Pemberton Asset Management are also seeing more opportunities with defense-related companies.