Jack McDonald of Apollo's Redding Ridge and Michael Manapat of Rowspace discuss where AI becomes mission-critical in structured credit and CLO management. They cover compressing portfolio construction from days to minutes, automating the weekly trade reconciliation, and why embedding engineers with front-office teams, rather than relying on generic LLMs, is what earns trust in financial data.
This episode delves into how AI is fundamentally altering the power law of technology investing, making capital a compounding advantage for AI companies and expanding the total addressable market far beyond traditional software. The guests discuss rethinking portfolio construction, the challenges of evaluating true AI traction amidst hype, the struggles of legacy SaaS businesses, and future trillion-dollar opportunities in robotics, autonomy, healthcare, and physical infrastructure, emphasizing that the real bottleneck for AI's growth is often on the supply side, particularly compute and energy infrastructure.