Rowan emphasizes Apollo manages half its $500 billion for itself, offering clients only what it already owns.
“Think about what that does from an alignment point of view. We go to a client and we offer them nothing that we don't already own.”
Rowan says retirement savings companies functioned like banks post-2008, with annuities replacing deposits as liabilities.
“The next best thing was to be a retirement savings company. But where you thought like a bank the liability side of your balance sheet rather than being deposits was annuities.”
Rowan says a $16 million equity investment grew into $270 billion AUM making it the largest retirement services company.
“And what started out as a $16,000,000 equity investment has now morphed into 270,000,000,000 of AUM and the largest retirement services company in”
Rowan explains Athene cannot buy fixed income in public markets because there is no excess return, only beta.
“Athene as a retirement services company wants 95% fixed income and 5% alternatives. But that 95% fixed income they can't buy in the market because the market is now completely beta.”
Rowan says Apollo grew Athene from $16 million equity in 2008 to $330 billion today.
“The other business is a business people don't know as well, that's the retirement services business, which we do through Athene. So in 2008, we started with a $16,000,000 equity investment.”
“So in 2008, we started with a $16,000,000 equity investment. We ended the year at 330,000,000,000 and have become the largest provider of retirement products in The US.”
Rowan says Athene's new sales grew from $20 billion four years ago to over $60 billion this year.
“Four years ago, we were 20,000,000,000 of new sales, then 30,000,000,000, then 47,000,000,000. This year, we'll do north of $60,000,000,000 of new sales, and it continues to be.”
Rowan says Athene has grown book value at 17% annually for twelve years.
“And when I look at what we've done, we have actually grown book value at about 17% for the last twelve years.”
Rowan explains Athene's 25% diversification rule creates a $400 billion ecosystem with co-investors.
“So as Athene buys 25% of everything, clients of ours, institutions, other insurance companies, retirement systems, wealthy individuals come in side by side aligned with Athene.”
Rowan explains Athene's diversification strategy of taking 25% of everything Apollo originates rather than 100% of anything.
“Athene does not want a 100% of anything that we originate. They wanna be a diversified investor. They want 25% of everything and a 100% of nothing.”
Rowan states Athene manages over $400 billion in assets and grows $70 billion annually.
“It, along with its European affiliate, are now more than $400,000,000,000 of assets under management. We grow on a gross basis more than $70,000,000,000 a year.”
Rowan reports Athene grows over $70 billion annually and is the largest U.S. retirement services provider.
“We grow on a gross basis more than $70,000,000,000 a year. So we're doing something right. We are in fact the largest provider of retirement services products to The U. S.”
Rowan claims Apollo is the largest U.S. retirement services provider by a significant margin.
“We are in fact the largest provider of retirement services products to The U. S. Market by a long shot.”