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Apollo's Role in Evolving Capital Markets

Jun 5, 2025

Lecture on Apollo and Shifts in Capital Markets

Introduction

  • Discussing a unique style of investing and innovation in capital markets.
  • The global capital markets are shifting, with a focus on Apollo's role and innovations.

Evolution of Capital Markets

  • Early career experiences highlighted the shift from banks holding loans to trading them.
  • Growth of credit hedge funds and CLOs (Collateralized Loan Obligations).

Apollo's Approach

  • Apollo's traditional asset management model versus new alignment with clients through Athena.
  • Merging with insurance retirement service company, Athena, to align interests.
  • Shift from being purely asset managers to also being principal investors.

Innovation in Asset Management

  • Building a merchant-focused asset manager rather than agent-focused.
  • Long-duration annuities and infrastructure projects.
  • Shift from traditional bank-funded to insurer and retirement-backed funding.

US Role in Global Capital Markets

  • The U.S. has benefited from being the center of capital markets.
  • Discussion on monopolistic position in equity and venture capital markets.

Historical Innovations in Financing

  • Innovations such as junk bonds in the 80s, ETFs, and fixed-income products.
  • Apollo's unique approach to structuring deals with creativity.

Apollo's Business Model

  • Large footprint in credit markets, mostly investment-grade products.
  • Origination of $260 billion in investment grade and private asset products in a year.
  • Integration of private credit and private equity teams without traditional walls.

Importance of Private and Public Market Integration

  • The convergence of private and public markets, with Apollo bridging this gap.
  • Impact of increasing liquidity in private markets.

Apollo's Strategic Initiatives

  • Emphasis on origination platforms and flexibility.
  • Examples like CS's Atlas business and the transition to more flexible asset management.
  • Apollo's role in structuring unique capital solutions for major companies.

Market Trends and Future Focus

  • Increasing role in infrastructure, especially AI and defense sectors.
  • The rise of private market bets in the face of shifting capital landscapes.

Company Culture and Leadership

  • Apollo's culture of innovation, openness, and willingness to explore new opportunities.
  • Leadership's role in fostering a dynamic and engaging work environment.

Personal Stories and Insights

  • Stories of key deals like Carvana and Hertz showcasing Apollo's strategic flexibility.
  • The significance of maintaining personal relationships and trust in the business.

Conclusion

  • Closing reflections on Apollo's evolution and future directions in global capital markets.
  • Personal anecdotes about work-life balance and finding meaning beyond financial success.

These notes outline the key themes and strategies discussed in the lecture, emphasizing Apollo's innovative approach and its impact on the evolving capital markets landscape.

Full transcript