One of the few private equity firms that is accepting higher rates is Apollo's co-president.

In December 2023, when the market was anticipating six or more rate cuts, Apollo Asset Management's co-president Scott Kleinman held a more contrarian view. He predicted that he would be betting against any rate cuts in 2024.

The private-equity industry has not benefited from higher-for-longer rates as they increase financing costs.

The buyout deal count for the year through May 15 is down 4% globally on an annualized basis compared to the already-subdued activity from 2023, according to a report from Bain & Co. Additionally, the lack of investment has resulted in a $1.1 trillion mountain of dry powder within buyout funds that must be deployed.

Apollo's Kleinman stated that he is "completely at ease" with the current rates.

"Kleinman stated in an interview for the Delivering Alpha Newsletter from the SuperReturn Conference in Berlin that we are likely the only private-equity firm that has been wishing for higher rates for a long time. As a value-oriented investor, higher rates lead to more value discipline on corporate valuations, resulting in more intriguing companies to purchase and more reasonable valuations."

What is Kleinman's current view on rates? He stated, "It is possible that one cut may be added for political reasons, but based on the data we're examining, a rate cut isn't necessary."