Apollo's Wassenaar: Germany Sparks European Investment Rush

In Brief:

Olivia Wassenaar, Partner and Head of Sustainability and Infrastructure at Apollo, spoke with Bloomberg's Anna Edwards and Guy Johnson on 'The Opening Trade' about Germany's surprise infrastructure and defense spending plan announced on March 18, 2025. Speaking from a major infrastructure conference where the German announcement dominated discussions, Wassenaar highlighted how this unexpected fiscal move represents a turning point for private capital investment across Europe. With Apollo already allocating 25% of its funds to European opportunities, she expressed enthusiasm about the plan's potential multiplier effect for private investments in power, transport, and digital infrastructure sectors.

Big Picture Drivers:

• German Fiscal Pivot: Unexpected spending plan represents major policy shift

• Private Capital Catalyst: Public spending expected to multiply private investment

• Power Demand Surge: Critical infrastructure needs driving energy investments

• Long-term Stability: Infrastructure assets providing inflation protection amid volatility

Key Topics:

• European Allocation: Apollo currently dedicates 25% of investments to European markets

• Infrastructure Pipeline: Multiple large European deals under active consideration

• Energy Transition: Renewable investments continuing alongside traditional power sources

• Market Opportunity: Germany's fiscal capacity creating regional investment momentum

Key Insights:

• Long-term Asset Advantage: Infrastructure investments offer inflation protection through contracted cash flows

• Multiple Power Opportunities: Beyond renewables, grid resilience and battery storage becoming major themes

• Digital Infrastructure Boom: Data center power demands driving cross-sector investment opportunities

• Transport Sector Potential: Growing interest in transportation infrastructure complementing energy investments

Memorable Quotes:

• "We think Europe is really on the cusp of something profound in terms of investment attraction" - Olivia Wassenaar

• "There are a ton of opportunities in Germany around power, around broader infrastructure, around transport" - Olivia Wassenaar

• "You're going to see really an energy addition over the next decade. It's going to be a lot of renewable power, but it'll also likely be gas as well" - Olivia Wassenaar

The Wrap:

While Germany stands alone in its fiscal flexibility compared to other major European economies, Wassenaar views the spending plan as a positive signal for the entire continent's investment landscape. Apollo is particularly focused on critical infrastructure like power generation, transportation, and digital networks that provide contracted cash flows and inflation protection. As power demands increase dramatically, especially from data centers, Wassenaar emphasizes an "all of the above" approach to energy investment - spanning renewables, storage solutions, grid resilience, and traditional sources - to meet growing needs in both Europe and the United States.