(1 October 2024 – United States) Apollo Global Management aims to more than double in size over the next five years, targeting $1.5 trillion in assets under management by 2029.
This ambitious growth plan, revealed by CEO Marc Rowan, positions Apollo as one of the largest debt underwriters globally, reflecting a shift as companies increasingly rely on private capital for credit instead of traditional banks.
During Tuesday’s investor day, Rowan declared the dominance of Wall Street banks over, with asset managers like Apollo now taking the lead in high finance. Despite this, Apollo remains aligned with large banks, announcing plans to expand partnerships following recent lending ventures with Citigroup and BNP Paribas.
Apollo’s evolution from a small private equity firm focused on leveraged buyouts to a major player in corporate and consumer finance reflects the broader expansion of the private equity industry. Key to its success is Athene, an insurer owned by Apollo, which provides a steady stream of low-cost capital, with $33 billion in reserves and funding costs around half the industry average.
Fuelling Apollo’s ambitions are also what it sees as enormous opportunities to make loans to utilities, data centres and renewable infrastructure companies that will have trillions of dollars in capital needs but often require specially tailored financings.
If Apollo meets the new targets set by Rowan — including originating $275bn in debt annually within five years — it would make the group one of the biggest debt underwriters on Wall Street, surpassing the likes of JPMorgan which was the largest player in the market last year, according to data provider LSEG.
Rowan ruled out large acquisitions as part of the group’s strategy despite a wave of consolidation in the asset management industry highlighted by BlackRock’s $12.5bn acquisition of Global Infrastructure Partners, which closed on Tuesday. “I don’t see significant M&A for us on the horizon,” said Rowan.