Rowan says Apollo's asset management business will grow over 25% this year.
“We've already said our business will be up in the asset management side. We've told the street better than 25% this year.”
Rowan says Apollo focused on private investment grade markets and now competes for assets amid banking turbulence.
“We went for the private investment grade market. That is the dominant franchise we have built. What we're seeing right now, particularly the turbulence in banking, these are the kind of assets we compete for.”
Rowan says Apollo's existing business plan upside is so large that any distraction is too costly.
“The upside from simply executing the business plan that's in front of us is so high that the price of distraction is just very hard to contemplate.”
Rowan says the private credit industry grew from $40 billion AUM in 2008 to $550 billion at Apollo.
“Our entire industry was 40,000,000,000 of AUM. Every one of the companies plus minus in 2008. We ended the year at 550,000,000,000.”
Rowan says Apollo's $400 billion in private credit is still irrelevant in a $40 trillion market.
“At 400,000,000,000 of private credit, mostly investment grade, unfortunately, we're not relevant. It sounds like a lot, 400,000,000,000, but we're talking about a $40,000,000,000,000 market.”
Rowan states Apollo ended the year with $550 billion AUM including $400 billion in mostly investment-grade private credit.
“Apollo Asset Management ended the year roughly $550,000,000,000 $400,000,000,000 of private credit, mostly investment grade, dollars 75,000,000,000 of hybrid equity, 75,000,000,000 of private equity.”
Rowan says Apollo has no daily or quarterly liquid money, structured to exploit illiquid assets.
“There is no daily liquid, quarterly liquid money at Apollo. We are ideally situated to take advantage of less liquid assets. We've structured ourselves that way.”
Rowan says Apollo plans to double its business, limited by excess return not capital raising.
“Our business plan calls for a doubling of our business. And at the end of the doubling, liking who we are as a culture, our limiter is not capital raising.”
Rowan reports Apollo's best year ever with $650 billion AUM, $500 billion in credit.
“Single best year in Apollo's history. Earnings. Asset performance. The our platform as you think about it we are around 650,000,000,000 of assets under management in our asset management business. 500,000,000,000 of that is credit.”
Rowan reports Apollo's best year ever with around $650 billion in assets under management.
“Single best year in Apollo's history. Earnings. Asset performance. The our platform as you think about it we are around 650,000,000,000 of assets under management in our asset management business.”
Rowan says Apollo has invested nearly $8 billion and employs 4,000 people focused solely on origination.
“We've spent nearly $8,000,000,000. We have 4,000 people who wake up every day, and all they do is origination.”
Rowan reveals Apollo has invested nearly $8 billion and employs 4,000 people dedicated solely to credit origination.
“And for us, we are very focused on scaling origination. We've spent nearly $8,000,000,000. We have 4,000 people who wake up every day, and all they do is origination.”
Rowan states half of Apollo's $800 billion in assets is its own balance sheet, aligning outcomes with investors.
“When you look at an asset manager with some $800,000,000,000 of assets under management, 400,000,000,000 is our own balance sheet.”
Rowan says Apollo's industry has expanded from one market serving institutional alts to six distinct markets.
“We've gone from a business that historically had one market, the alts bucket of institutional clients, to now six markets.”
Rowan says Apollo originated over $300 billion in new investments last year, with 80% being investment grade.
“So if you think last year, we originated a little over $300,000,000,000 of new investments, mostly credit. 80% of that was investment grade. I assure you no one is complaining about the lack of buccaneering.”
Rowan discloses Apollo originated over $300 billion in new investments last year.
“if you think last year, we originated a little over $300,000,000,000 of new investments, mostly credit.”
Rowan reports Apollo originated over $300 billion in new investments last year, with 80% being investment grade credit.
“So if you think last year, we originated a little over $300,000,000,000 of new investments, mostly credit. 80% of that was investment grade. I assure you, no one is complaining about the lack of buccaneering.”
Rowan notes the major alternative asset managers grew from $40 billion combined in 2008 to nearly $1 trillion.
“I mean, we were the whole, the entirety of the companies that you see that are public today, everyone was 40,000,000,000 in 2008. We're now close to a trillion Blackstone more KKR, a little less.”
Rowan says Apollo's $16 billion in retail money means even 5% quarterly redemptions round to zero against total assets.
“We're a trillion dollar asset manager, 750,000,000,000 of credit, 16,000,000,000 of retail money. It works out to 5% a quarter of redemptions, works out to about 750,000,000, it rounds to zero.”
Rowan dismisses redemption concerns, saying Apollo handled $750 million in first quarter outflows easily.
“And so for us, $750,000,000 in the first quarter, dollars $750,000,000 out in the first quarter, this is not of any moment.”
Rowan says Apollo and Athene have focused on innovation driven by their retirement mission for over thirty years and prefer to lead change rather than react to it.
“At Apollo and Athene, we help meet the capital needs of companies and economies, while enabling people to retire with confidence. That mission has driven our innovation for more than three decades, and this new presence is a continuation of that DNA. Change is the only constant, and we'd rather lead it than react to it,”
Rowan chose Austin for Apollo's expansion because it offers existing talent, technology, and business infrastructure to build challenger models for parts of their own business.
“Austin lets us build the next generation of Apollo and Athene, including challenger models for parts of our own business, with the talent, technology and business environment already in place. That's why we chose Austin and Texas.”
Apollo's president stated that acquiring other firms conflicts with their integration strategy because acquired firms want autonomy.
“ in general. There were $15.2 billion in M&A deals centered on private asset managers this year through July 30, exceeding all previous full-year totals—as buyers moved to boost their fee-earning assets, enter new corners of private markets and add distribution networks to reach a growing universe of individual investors. Last week, the Financial Times reported that Ares Management had held talks with Leonard Green & Partners about a potential acquisition, which would bring Ares $85 billion in PE assets under management. The listed giant's existing corporate PE funds have received around $20 billion in aggregate commitments since 2012 . Apollo President James Zelter said that growing by acquisitions runs counter to the firm's plan to deepen integration across its platform, as any firm Apollo acquires will want to ”
Rowan worked multiple hospitality and retail jobs before founding and leading Apollo Global Management.
“Before leading the investment giant Apollo Global Management, CEO and cofounder Marc Rowan worked a string of hospitality and retail jobs. https://t.co/KxLMAasmPc”
Rowan worked multiple hospitality and retail jobs before founding and leading Apollo Global Management.
“Before leading the investment giant Apollo Global Management, CEO and cofounder Marc Rowan worked a string of hospitality and retail jobs. https://t.co/KxLMAasmPc”
Rowan worked multiple hospitality and retail jobs before founding and leading Apollo Global Management.
“Before leading the investment giant Apollo Global Management, CEO and cofounder Marc Rowan worked a string of hospitality and retail jobs. https://t.co/KxLMAasmPc”
Rowan worked multiple hospitality and retail jobs before founding and leading Apollo Global Management.
“Before leading the investment giant Apollo Global Management, CEO and cofounder Marc Rowan worked a string of hospitality and retail jobs. https://t.co/KxLMAasmPc”