As it grows its businesses spanning insurance, credit, and private equity, Apollo Global Management Inc said on Tuesday that its assets under management will more than quadruple to $1 trillion by 2026.
Apollo is second only to Blackstone Group Inc, the world’s largest alternative asset manager, which projected in 2018 that its assets under management would reach $1 trillion by 2026. As of the end of June, Blackstone had $684 billion in assets.
“We’re in the excess return industry, and assets, not capital, are in limited supply,” Apollo CEO Marc Rowan said during an investor day event.
Over the next five years, Rowan expects its insurance platform, led by annuities provider Athene Holding Ltd, to be a key driver in growing its assets under management and earnings.
That’s because Athene can raise a lot of money without doing much fundraising, allowing Apollo to profit from its fixed-income investments at low costs and even lower rates of return, according to Rowan.
At the end of June, Apollo had $472 billion in assets under management.
