The first special guest of our Executive Edge Talks, Akila Grewal, Partner at Apollo Global Management, shares insights on the rapid growth of private credit and its impact on global finance. She discusses strategies for managing risk, leading diverse teams, and building foundational skills, offering valuable advice for investors and aspiring MBA leaders in finance.
Private credit has seen relevant growth over the past decade. From your perspective, what are the most important factors driving this evolution, and how do you foresee the role of private credit changing in the global financial ecosystem in the coming years?
AG: Stepping back, I work at Apollo, a $700 billion asset manager. Oftentimes people think of Apollo as a private equity firm, because we have a significant kind of private equity backdrop in terms of how we started our business. But increasingly, our assets are within the credit and private credit business. So roughly 550 billion of our 700 is in credit. I think that speaks to your comment as it relates to the growth of private credit. We believe that private credit, just as a broader asset category, is a much bigger market than maybe market participants have so far believed it could be. You hear people say it's a one and a half trillion-dollar market. We think it's almost a 40 trillion-dollar market, when you include all types of credit. This includes not only financing for companies or sponsors but also a wide range of assets, such as asset-backed loans, equipment financing, aircraft financing, and even investment-grade credit. We believe this market is much larger than it's typically given credit for, and we expect it to keep growing. For example, in 2008, the U.S. had 8,000 public companies. Today, there are 4000, so there's half the number of public companies out there. And when you think about revenue and earnings and employment, about 85% to 90% of the economy in the US is private. That's just a trend that we've seen, and one that will require different types of things.
Given your experience in managing strategies across various credit platforms, what are some best practices that investors and institutions can adopt to navigate periods of uncertainty or volatility in the credit markets?
AG: I think investors need to spend real time understanding that not all risk is created equal. Knowing exactly what type of risk you're taking and how it’s structured is incredibly impactful. What I mean by that is, when you're investing in a private credit manager, there might be managers that are focused more on mezzanine or subordinated risk, that likely will have more volatility associated with it, particularly during periods of economic downturn and volatility. Whereas managers that are focused on first line, high quality, up in the capital structure, you might have muted volatility during those periods and hopefully outsized returns, because they won't mark down as much. So, my advice is making sure you understand the type of risk that you're taking, and especially if you expect there to be volatility or economic uncertainty, focus on less risky parts of the capital structure to be able to really build your portfolio.
You lead a global team of professionals across multiple asset classes. What are the key leadership strategies you've found most effective for managing and inspiring a diverse, cross-cultural workforce, especially in a fast-paced and evolving industry like finance?
AG: I lead a global team with employees in Hong Kong, Singapore, London, New York, and LA. This team is not only global based but also spans different cultures, generations, and genders. What’s worked well for me as a leader is leading by example. I think that a lot of people respect hard work, dedication, the ability to prioritize and the ability to pick your spots in terms of what you needed. From a leadership perspective, what’s worked for me is meeting people where they are, without assuming everyone is at the same stage. I take the time to understand where they are in their career journey, where they’re aiming to go, and then focus on how we can support their ongoing career progression. Creating autonomy and allowing people to operate independently—once you're confident in their work—has been incredibly effective. It empowers them to make decisions, reduces bottlenecks, and prevents me from being the only one taking credit. True leadership requires the confidence to delegate decisions and to give credit where it’s due. For me, success with a global team has come from granting them the autonomy to run their areas, guiding them on necessary escalations, and helping them prioritize effectively.
As someone who has built a successful career across several prominent financial firms, what advice would you give to MBA students aspiring to leadership roles in the financial industry, particularly in product management and capital formation?
AG: I believe there's no one-size-fits-all approach to finding success. I've been fortunate in how my career has evolved, but what’s worked for me is focusing on mastering the fundamentals of the business segment I’m in. MBAs are fantastic because they provide a solid foundation in the fundamentals of finance, economics, marketing, and communications, which you can then pair with real-world experience. And you can get real world experience in many ways —working in an engaging role, for instance—but I also find that networking is incredibly important. My advice to any MBA student, or any student, is to seek out mentorship and networking opportunities. While being a strong technical expert is great, developing as a future leader requires a broader skill set. This includes communication, technical skills, judgment—which is learned, not taught—and the ability to navigate diverse opportunities and environments.
Interview with Akila Grewal, Partner at Apollo Global Management.
