(Bloomberg) -- Apollo Global Management Inc.’s chief executive officer said the business of making leveraged loans to companies is in its “late innings” as regulators crack down on banks and private credit continues to grow.

“When they ask the banking system to put up 15% or 20% more capital, they’re telling the banking system to shrink,” Marc Rowan said in an interview Wednesday at the Goldman Sachs US Financial Services Conference.

When Europe unveiled new capital requirements, “they’re telling the banks to shrink,” he added. “And we’re seeing this everywhere in the world, so debanking is at the early stages.”

It’s a “poor choice of language” to think of private credit as levered lending, he said.

Apollo originates $100 billion of private credit assets annually, and alternative credit is key to its goal of reaching $1 trillion of assets under management by 2026. 

The firm has $631 billion in assets under management, of which about $500 billion is credit — making its one of the largest alternative credit managers in the world.

Wealth management, the business of selling alternative investments to individuals, is also a growing area for Apollo and its peers. 

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Rowan said firms such as Apollo will squeeze active managers, while the largest players in passive management will continue to grow.

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