Apollo Global (APO -0.7%) is a dramatically different business today than at the time of its IPO in 2011, points out co-founder Josh Harris, presenting at the Morgan Stanley conference.
At the time of going public, Apollo had $70B in AUM vs. $159B today (CAGR of 32%), but the composition has also changed. More than half of AUM was in private equity in 2011, a figure that has dropped to less than one-third as of Q1 2014. Credit assets, on the other hand, accounted for just a small ratio in 2011, but today make up nearly two-thirds of AUM.
As for today's markets ... they're priced for perfection, notes Harris, pointing to the high S&P 500 valuation, historic lows for junk bond yields, and vanished volatility. Private-equity firms, meanwhile, are in high cotton, and deals are "fully priced ... In today's market, we continue to be net sellers."