(Bloomberg) -- Apollo Global Management Inc.’s John Zito, deputy chief investment officer for its credit arm, said insuring bank balance sheet risk is the “investment du jour” — and one that the firm has been selective about.

The alternative asset manager has done very few deals, known as significant or synthetic risk transfers, in favor of bank transactions that serve their need for long-term assets and origination goals, Zito said Tuesday at the Bloomberg Invest conference in New York. He cited the firm’s acquisition of Credit Suisse’s structured products group as an example of Apollo’s approach.

“It has to be really something that’s going to work for both parties,” Zito said. 

Many publicly announced bank credit partnerships have been “small, narrow and not, I don’t think, fully diligenced with respect to how difficult it is to run those partnerships if there’s not full alignment,” he said.

Apollo had $671 billion of assets under management at the end of the first quarter, with credit comprising about $500 billion of the total.

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