Apollo Global Management CEO Leon Black said Monday that the volatile market sell-off due to the coronavirus was a good example of why he believes in Apollo's approach to investing.
"The last few weeks have shown us the benefit of Apollo's value-oriented approach, which has always emphasized downside protection and less leverage use, and also to really be able to navigate cycles," Black said on CNBC's "Closing Bell." "And clearly the first and foremost thing we do is protect our own portfolio for our investors, but because we have a very strong balance sheet and a lot of dry powder, we also try to be opportunistic."
Apollo has more than $300 billion in assets under management, including about $77 billion of private equity assets as of the fourth quarter of last year. Apollo's stock is down about 24% so far in 2020.
During the financial crisis over a decade ago, Black was a big investor in distressed debt. He said on Monday that there was briefly an opportunity in another part of the credit market during this crisis.
"There was a quick high-grade opportunity a few weeks ago, and that basically bounced back. It was basically a one-week window. And now I think it will be a much longer, patient study of many, many different credits," Black said.
He said Apollo is looking at several different areas, including leisure and insurance.
Black said that the federal government has "actually done a very good job" of providing economic relief during this period and that his firm is looking at scenarios where the virus crisis lasts for six months, 12 months and 18 months.
"Clearly, the big question is how quickly can we get workers back to work, generate demand, generate revenues, and make sure this is a recession and not a depression," Black said.
When asked whether companies that are owned by private equity funds should be allowed to get economic relief from the government, Black said that the suggestions he has made to support the economy are to shore up areas like corporate debt and not private equity in particular.
"We're all in this together, and it's pretty important we have a healthy economy," Black said.
Black joined Aramark CEO John Zillmer on "Closing Bell" to discuss their "NYC Health Heroes" program, which will help provide food, supplies and health products to health-care workers in the city.
Correction: This story was updated to show the correct value of Apollo's private equity assets.