Rowan reports 44% gross and high 20s net returns on Apollo's $25 billion fund.
“For the last time we announced results, 44% gross on the $25,000,000,000 fund, high 20s net.”
Rowan cites 44% net returns in Apollo's 2001 fund and recent funds ranging from $15-25 billion.
“And in that fund, which was the 2,001 fund, 44% net returns. So, now you fast forward and you look at the last three funds we've done.”
Rowan cites 44% net returns on Apollo's 2001 fund to counter concerns about too much money chasing deals.
“And in that fund, which was the two thousand and one fund, 44% net returns. So now you fast forward and you look at the last three funds we've done.”
Rowan reports Apollo's $25 billion fund is delivering 44% gross returns and high-20s net returns.
“44% gross on the $25,000,000,000 fund, high 20s net. The world just keeps moving. The world just keeps changing. It's our job to continue to reinvent ways to extract and to produce value.”
Rowan reports Apollo's 32-year track record shows 36% gross and 26% net returns with every fund profitable.
“If you look at the now thirty two year history, 36% gross 26% net returns every fund has made carry. We've done really well.”
Rowan questions whether massively scaling private equity benefits investors or is even possible given return requirements.
“It is unclear to me that massively scaling that business is good for investors or good for us or possible. Our job as investors and alternatives is to produce excess return per unit of risk.”
Rowan says Apollo runs private equity for returns not growth, calling it a farming business.
“But literally, we run this business for rate of return. If we do a good job for investors, we will grow a little.”
Rowan distinguishes between traditional private equity and a new model of private equity without leverage or fund structures.
“I think we're heading to a world where we not just have private credit, but we have equity that is private, not just private equity.”
Rowan says the real story is private equity's 30% concentration in enterprise software during an AI-driven technology shift.
“we're seeing, this technology shift take place at a point in time when the private equity industry spent a decade where 30% of their activity was enterprise software. That to me is the story.”
Rowan argues enterprise software losses are about sector concentration and AI disruption, not public versus private structure.
“Because if you're public and you are concentrated in enterprise software, the stocks are down 6070%.”