Apollo: Still a time to reap

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.

Webcast and presentation slides

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."

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs