Rowan explains banks excel at short-term lending while Apollo excels at long-term lending backed by retirement liabilities.
“And if you think about people like us, we borrow really long because we back retirement liabilities. And institutions, pension funds, endowments, sovereign wealth funds, they borrow really long.”
Rowan says the banking system is in the best shape he has seen in his 42-year career.
“I think it's in the best shape I've ever seen it in my forty two years of professional career.”
Rowan predicts regional banking business models will fundamentally transform within five years.
“I'll be shocked if five years from now the business model of a regional bank looks like what they do today.”
Rowan sees enormous opportunity in Asia where banks represent 90% of corporate capital versus 25% in the US.
“The banking system is 25% of all corporate capital. In Europe it's 65%. In Asia I think it's 90%.”