The private equity industry needs to create value the “old-fashioned way” as the era of expansion fades, Scott Kleinman, co-president of Apollo Global Management, said in an interview with Bloomberg TV. Speaking at the IPEM Private Equity Conference in Paris, Kleinman said that boosting earnings, improving cost structures and finding new avenues of growth is key to managing portfolios in the current environment. He emphasized that traditional operational improvements, rather than financial engineering or multiple expansion, will drive returns moving forward.

Kleinman’s remarks reflect a broader shift in PE strategy as market conditions tighten and easy gains from leverage and valuation multiples diminish. His focus on fundamentals aligns with Apollo’s long-standing approach to value creation through active ownership and operational excellence.