Marc Rowan, CEO and Co-Founder of Apollo Global Management, discusses Apollo's growth strategy, his views on alternative investments, and why he believes alts could soon make up 50 percent of individuals' portfolios.
On what makes an organization successful: You go into an organization and you try to get a sense in 100 different ways of whether it has momentum. If it has momentum, it overcomes every obstacle. There's nothing you can put in front of the organization that they won't find a way around or that they will view as an impediment to their success.
On the business structure of Athene and Apollo: Think about how you can earn return in the world. You can take credit risk to earn higher returns, you can take equity risk, you can take valuation risk, you can take business startup risk or technology risk. All of those are risks that at a point in time are worth taking or not worth taking depending on how you're being paid. What about liquidity risk? If you can get paid more for being less liquid, why not? It's so simple in our business. Athene’s entire business is built on the notion of stepping back from public markets and earning 200 to 300 basis points over investment grade for taking less liquidity and therefore offering more bespoke structures, not by taking incremental credit risk.
This episode was recorded on January 23, 2023