Rowan says origination strategy earns 150 to 200 basis points premium at near investment-grade level.
“And if you could earn 150 to 200 basis points more in origination at a very safe near investment grade level, that's a business we want to build.”
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 argues that excess returns in private credit come from origination capacity, not from illiquidity premiums.
“I believe excess return comes from origination. The capacity of an investor, someone like us, and we're not the only ones who do this, who can go out and work with a company and solve their unique issues and make the commitment and structure and take the whole thing down and originate a credit.”
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 predicts illiquidity and structuring premiums will disappear as public and private markets converge, leaving origination as key return source.
“if I'm right and we're right that public and private are going to converge to some extent, illiquidity premium, structuring premium, they're going to disappear.”
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 reports Q2 originations of $74 billion, excluding Broadcom which was the sector's largest ever origination.
“Origination here was a very strong quarter, 74,000,000,000. Just to give you some perspective, that does not include Broadcom, the largest origination in our sector ever, or a number of others.”
Rowan states $50 billion of signed deals will benefit future quarters and pipeline is at record strength.
“$50,000,000,000 of signed and announced in Q2 will benefit coming quarters. The pipeline has never been stronger”