Apollo Global Management is betting on continued expansion in the secondaries market, where demand for liquidity consistently outpaces available capital. The firm closed its debut secondaries flagship Apollo S3 Equity & Hybrid Solutions Fund at $5.4 billion last year and is now targeting $2 billion for Apollo Credit Secondaries II, according to Secondaries Investor data.

Apollo has organically built its secondaries capabilities by bringing in a team from BlackRock to lead the unit. Co-head Steve Lessar told attendees at PEI Group's NEXUS conference that the firm believes the secondary industry remains undercapitalized and that new entrants can thrive if they offer differentiated approaches. While Apollo remains open to acquisitions, Lessar emphasized the firm's preference for building strategies internally when the right talent can be found.

Lessar welcomes additional competition in the space, noting that the supply-demand imbalance creates ample opportunities for growth. He acknowledged that market saturation could eventually become a concern, but maintains that the industry is far from reaching that point. With more capital entering the market, Apollo sees increasing opportunities rather than threats to its position.