"For this to be an attractive private equity market again, with tougher financing we are going to have to have a parallel of lower prices and on that basis we're happy to over-equitise deals and, hopefully, in a few years refinance them," he said.But if equity prices fail to decline and tougher financing conditions remain, private equity returns will weaken, he added.
In terms of challenges posed by slower economic growth to companies in Apollo's portfolio, Black said U.S. real estate brokerage Realogy Corp, which it bought last year for $6.65 billion, was already affected.
Consumer and retail companies were also suffering but businesses operating in the packaging, chemicals, gambling and transport industries were doing quite well, he said.
