Apollo Global Management Inc (APO) is exploring a larger role in financing debt-laden governments and state-backed companies as they increasingly turns to private capital to address budget gaps, Bloomberg reported Tuesday, citing an interview with Apollo President Jim Zelter.

Zelter said European governments are embracing private capital as part of the solution to mounting debt, according to the report.

Apollo is exploring ways for government-backed companies to strengthen their balance sheets, including through long-term capital and asset-backed financing, Bloomberg said.

Zelter also said Apollo is seeking opportunities to finance the defense sector and artificial intelligence infrastructure in the US and Europe, while limiting its exposure to the AI buildout.