00:00Japan is like, I would say, like many economies.
00:03If you think about the structure of the Japanese market, it is primarily two financial products, bank debt and equity.
00:10Apollo CEO Mark Rowan sees his company as providing a much-needed third way to finance the capital investment Japan
00:17needs.
00:18The equity market in the context of the world is actually quite small, although it is the second largest equity
00:23market in the world.
00:24But it is roughly the size of Nvidia, just to put things in perspective.
00:27There's not the well-developed kind of corporate bond market that exists throughout the U.S.
00:33And so I think what we're watching, not just in Japan, but around the world, is corporate CFOs, corporate treasurers
00:40now understand that there are three types of finance.
00:43Things that are really highly rated and short, you want to be with your banks.
00:46There's no better provider.
00:48Equity, very, very expensive.
00:51Public markets for plain vanilla, very, very good execution.
00:55Everything else comes to the private market.
00:58The largest part of the private market today is investment grade.
01:01It is these large companies who have these transformational opportunities, who want to match long-dated investments.
01:08And most of what we're doing is long-dated with long-dated capital.
01:12And that is not what the banking system does well.
01:14That is not what the public markets do well.
01:16And so you're seeing this extraordinary growth.
01:19In the U.S., we've seen it in lots of ways.
01:22Meta's financing last year at some $30 billion.
01:25In Europe, we've seen the Europeans, who also have structural issues vis-Ã -vis capital availability, really embrace private finance.
01:33In Japan, we're seeing the beginnings of that.
01:36That's what the beauty of that.
01:37That's how I saw it.
01:38You
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