Scott Kleinman, co-president of Apollo Global Management, said that with the end of the era of expansion, the private equity industry needs to create value in “traditional ways.” According to Kleinman, improving profitability, optimizing cost structures, and exploring new growth paths are at the core of portfolio management in the current environment. He mentioned that if interest rates rise another 200 basis points, valuations will shrink further; however, no matter what level interest rates are at, takeover transactions can still be completed.

Scott Kleinman, co-president of Apollo Global Management, said that with the end of the era of expansion, the private equity industry needs to create value in “traditional ways.” According to Kleinman, improving profitability, optimizing cost structures, and exploring new growth paths are at the core of portfolio management in the current environment. He mentioned that if interest rates rise another 200 basis points, valuations will shrink further; however, no matter what level interest rates are at, takeover transactions can still be completed.