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(Bloomberg) — Scott Kleinman said he expects Apollo Global Management Inc. to participate in more deals similar to the $11 billion joint venture it inked with Intel Corp. this week as companies look for creative ways to meet their growing capital needs.

“You’re going to see more and more of this coming,” Apollo Co-President Kleinman said in an interview with Bloomberg Television from the sidelines at the SuperReturn International conference in Berlin on Wednesday. The need for tech firms, for instance, to boost their capacity in areas such as AI means the “need for this kind of capital is insatiable.”

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Apollo announced in a statement Tuesday it would buy a stake in an Intel chip-making plant in Ireland. Under the terms of the deal, the investment firm will take a 49% share of a joint venture that operates Intel’s Fab 34 as the tech firm seeks external funding for a massive expansion of its factory network.

Such deals won’t just be the preserve of tech firms, Kleinman said. Digitization, deglobalization and the energy transition means companies in various industries face huge capital needs and private credit will play important part in supplying that, he said.

New York-based Apollo is one of the world’s largest alternative asset managers, investing across credit, equity and real estate. The firm, which ended last year with $651 billion of assets under management, is targeting $1 trillion by 2026.

Earlier this year, Apollo laid out goals to double its annual origination of private credit to $200 billion to $250 billion in five years, up from about $100 billion. At the time, the company said originating private credit assets to sell to its Athene annuities business, other insurance companies and individual investors is crucial for the firm’s growth. 

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Executives across the private markets landscape have bemoaned that stubbornly high interest rates are hampering dealmaking. Increasingly, these funds’ backers, a group known as limited partners, are demanding that buyout firms find new ways to monetize their stakes and allow them to cash out. 

The buyout industry is on track to do about 2,500 deals this year, which would be the lowest level in more than a decade, according to Bain & Co. This year is also shaping up to be the second-worst year for exit value since 2016, the consultancy found. 

Kleinman said that high interest rates means it is now harder for private equity firms to achieve past returns. He said sponsors would ultimately have to accept a lower valuation environment.

(Adds details of Apollo’s offerings in fifth paragraph.)

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