Ex-Apollo Partner Is Taking ‘Rifle-Shot Approach’ to Buyout Debt

(Bloomberg) -- Sachin Khajuria, a former partner at Apollo Global Management LLC who now runs his own firm, said he sees buyout debt as one of the best opportunities for returns in public markets.

“I don’t think I would buy the whole market -- I would look at more of a rifle-shot approach,” he said Friday in a Bloomberg Television interview. He said he’s looking for investments high enough in the capital structure that “if winter is coming as close as the market fears, you’re in the fulcrum security, or you’re money good.”

Khajuria founded Achilles Management LP after leaving Apollo in 2017. In the interview Friday, Khajuria said he found buying opportunities in leveraged-loan markets after a selloff in December. He’s also looking at direct lending to capitalize on opportunities in private markets. But largely, Khajuria said, he believes economic growth is slowing globally and many firms have taken on too much debt, risking credit downgrades or default.

“There’s no question there’s been something of a bubble in the credit markets,” he said. “That will come home to roost if it’s supported by the economic data slowing.”

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