Unless otherwise noted, information as of 

Confidential and Proprietary - Not for distribution, in whole or in part, without the express consent of Apollo Global Management, Inc.

It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.

APOLLO GLOBAL MANAGEMENT

Stephanie Drescher

January 2020

January 2020

SEC Asset Management Advisory Committee
All figures as of September 30, 2019 unless otherwise noted. 

(1) AUM figures include funds that are denominated in Euros and translated into US dollars at an exchange rate of €1.00 to $1.09 as of September 30, 2019. Business segment AUM may not sum to total firm AUM due to rounding. 

(2) Headcount includes 3 Executive Officers as Private Equity Investment Professionals

(3) Number may not be fully reflective of all Apollo affiliated office space worldwide

Apollo Overview

2

Key Attributes Global Footprint

Value-oriented, contrarian approach

Opportunistic across market cycles

Integrated platform across asset 

classes and geographies

Deep industry knowledge 

Private Equity

156 Investment

Professionals2

$78 bn in AUM1

Credit Real Assets

208 Investment

Professionals2

$208 bn in AUM1

95 Investment 

Professionals2

$37 bnin AUM1

New York

Bethesda

Houston

Los Angeles

London

Madrid

Frankfurt

Luxembourg

Delhi

Mumbai

Shanghai

Hong Kong

Singapore

Firm Profile

Founded: 1990

AUM: ~$323 bn1

Employees: 1,352

Offices Worldwide: 153

Tokyo

San Diego
Apollo’s Offerings Span the Risk-Return Spectrum 

Apollo’s limited partners invest predominately through private partnerships

3

These targeted return are based upon estimates and assumptions that potential investments will yield returns equal or greater than these targets. There can be no assurance that Apollo's targets will be realized or that Apollo will be 

successful in finding investment opportunities that meet these anticipated return parameters. These return targets are based upon estimates and assumptions that potential investments will yield returns equal or greater than these 

targets. There can be no assurance that Apollo's targets will be realized or that Apollo will be successful in finding investment opportunities that meet these anticipated return parameters. The target return information is presented 

gross and does not reflect the effect of management fees, incentive compensation, certain expenses and taxes, which will reduce returns.

Opportunistic Credit Private

Equity / Real Assets Yield Opportunistic Strategies

Structured

Finance

5% 20%+

5-12% gross target 8-15% gross target 12-17% gross target 12-20% gross target 18-20%+ gross target

Private

Origination

12-15% gross target

§ Multi-sector

§ Senior secured loans

§ High yield

§ Investment grade

§ Performing credit

§ Long/short credit

§ Event-driven

§ Dislocated liquid 

credit

§ Single-name shorts

§ Opportunistic HY

§ CLO debt/equity

§ Solution capital

§ Consumer finance

§ Insurance

§ Financials credit

§ Life settlements

§ Middle market

§ ABLs / revolvers

§ Aircraft

§ Life sciences

§ Lender finance

§ Non-control 

stressed/distressed

§ Structured equity

§ Capital solutions

§ NPLs

§ Non-core assets

§ Financials equity

§ Infrastructure equity

§ LBOs

§ Distressed for 

control

§ Corporate carveouts

§ Real estate 

platforms/assets
Apollo’s Investor Base1

4

1 Based on capital commitments to active funds and AUM from public vehicles, as of October 2019

Public Pension

27%

Sovereign

18%

Finance/Insurance

15%

Other

10%

Wealth

Management

15%

Corporate

Pension

7%

FoF/

Consultant

6%

Endowment/

Foundation

2%

Segment Type

Private Bank – Wealth Management

Wires

RIA

Family Office

Mutual funds - Sub-advisory

Publicly Listed Vehicles
Increased Allocations to Passive Managers

Source: 1 Goldman Sachs Research as of September 2019

U.S. Equities AUM is Shifting to Passive1

83%

58%

17%

42%

2006 2019

Active Passive

100%

78%

22%

2006 2019

Active Passive

U.S. Debt AUM is Shifting to Passive1

5
Growth in Number of Private Companies Exceeds That of Public

Source. 1 The World Bank as of October 2019. 2 Hamilton Lane Markets Overview 2019. Source: S&P Capital IQ (March 2019) 

6

Number of Listed Companies in the U.S1

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

19801982198419861988199019921994199619982000200220042006200820102012201420162018

0%

10%

20%

30%

40%

50%

60%

2012 2017

Public vs. Private Company Growth2

52%

Growth in # of 

Private Companies

8%

Growth in # of 

Public Companies
Credit Markets Shifting Toward Private

7

Sources: SIFMA, Preqin, S&P LCD, BofA Merrill Lynch Global Research. Note: we include leveraged loans in the private credit %s. 

0%

2%

4%

6%

8%

10%

12%

14%

16%

 -

 2,000

 4,000

 6,000

 8,000

 10,000

 12,000

 14,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Investment Grade Debt Leveraged Loans High Yield C&I Loans Private Credit Private % of Total

CAGR:

Private Credit = 17%

Leveraged Loans = 13%

High Yield = 7%

IG Debt = 5%

C&I Loans = 4%
Sources: Bloomberg as of October 2019. (1) Barclays US Aggregate Index. (2) Barclays US Corporate HY Yield Index. (3) Cambridge Associates Private Credit Index. The index is a horizon calculation based on data compiled from 461 

private credit funds, including fully liquidated partnerships, formed between 1986 and 2018 (4) S&P 500. (5) Thomson Reuters All Private Equity Index. 

Alternative Credit and Equity Continue to Outperform 

Traditional Asset Classes

8

Credit Equity

(1) (2) (3) (4) (5)

3%

5%

8% 9%

13%

4%

8%

11% 11%

16%

Barclays

Agg

Corporate

HY

Private

Credit

Public

Equities

Private

Equity

5 Year 10 Year

8
Even the Worst Five-Year Periods Over the Last 23 Years in 

Buyout and Private Credit Produced Gains

9

Source: Hamilton Lane State of the Markets

-20%

-15%

-10%

-5%

0%

5%

10%

Equity Credit Real Assets

Infrastructure 

& Natural 

Resources

MSCI

World

Index

VC/Growth Private

Credit

BofA ML

High-Yield

Index

CS 

Leveraged

Loan Index

Developed 

Market 

Buyout

MSCI

World 

Energy

Index

Private 

Real

Estate

FTSE NAREIT

All Equity

REITs Index

2.7%

-5.7%

-15.7%

5.8%

-0.9%

-2.8% -3.8%

-5.5%

-7.8% -8.6%

Lowest Five-Year Annualized Performance (1995-2019)

Private Markets

Public Markets
3-Year Asset Class Risk-Adjusted Performance

10

Source: Hamilton Lane Market Overview2019. Indices used: Hamilton Lane All Private Markets with volatility desmoothed; Hamilton Lane All Private Equity ex. Credit and Real Assets with volatility desmoothed; S&P 500 Index; 

Russell 3000 Index; MSCI World Index; HFRI Composite Index; Hamilton Lane Private Credit with volatility desmoothed; Credit Suisse High Yield Index; Barclays Aggregate Bond Index; Hamilton Lane Private Real Estate with 

volatility desmoothed; Hamilton Lane Private Real Assets with volatility desmoothed; FTSE/NAREIT Equity REIT Index; S&P Global Infrastructure Index; MSCI World Energy Sector Index. Geometric mean returns in USD.

Assumes risk free rate of 2.4%, representing the average yield of the ten-year treasury over the last three years. Source: Hamilton Lane Data via Cobalt, Bloomberg (October 2019)

Sharpe 

Ratio 2.07 0.88 0.89 0.78 0.49 1.81 0.86 0.45 1.31 0.52 0.27 0.17 0.01

Private 

Equity

S&P 500 

Index

Russell 

3000

Index

MSCI 

World 

Index

Hedge

Funds

Private

Credit

Credit 

Suisse 

HY 

Index

Barclays 

Agg Bond 

Index

Private

Real 

Estate 

Private 

Infra &

Natural 

Resources

FTSE 

NAREIT 

All Equity 

REITs

Index

S&P 

Global 

Infra

Index

MSCI World 

Energy 

Sector Index

Private Markets Outperforming by 300+ bps Private Markets Outperforming by 0–300 bps Public Markets Outperforming

Equity Credit Real Assets

0%

4%

8%

12%

16%

20%

Annualized Time-Weighted Return (as of 6/30/2019)

Private 

Equity

S&P 500 

Index

Russell 

3000

Index

MSCI 

World 

Index

Hedge

Funds

Private

Credit

Credit 

Suisse 

HY Index

Barclays Agg. 

Bond 

Index

Private

Real 

Estate 

Private 

Infra & 

Natural 

Resources

FTSE 

NAREIT 

All Equity 

REITs

Index

S&P 

Global 

Infra

Index

MSCI 

World 

Energy 

Index
Over 15,000 Institutional Investors Active in Alternatives

11

76% of Institutional Investors are Invested in 1 or More Alternative Asset Class

Source: Peqin AIM Summit 2019 November AB

None

26%

One

18%

Two

13%

Three

13% Four

11%

Five

10%

Six

9%

Institutional Investors by Number of Alternative Asset Classes Invested In

Approximately 2/3 of Institutional Investors Allocate to Private Equity and Real Estate

Institutional Investors Allocation to Each Alternative Asset Class
Allocations to Private Funds Have Continued to Increase, 

Given Relative Risk-Return Profile

12

2019 YTD as of September 2019. Source: Preqin: Private Equity in Context: Historical Private Capital Fundraising, CAIA June 2019

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Average 2009 - 2013 2014 2015 2016 2017 2018

Axis Title

Private Equity Real Estate Infrastructure Private Debt Natural Resources

Private Capital Fundraising

$688

$771

$865

$982 $970

$bn

$423
$46.9 T

$5.7 T

$34.1 T

$2.0 T

Private Markets Have Grown Significantly Faster Than Public Markets

Total Private Market Size Remains Relatively Small In Comparison

13

Sources: Hamilton Lane Market Overview 2019, including data via Hamilton Lane via Cobalt, Bloomberg (October 2019). Note: Total exposure and market cap as of year end for 1999, 2007. For 2019, as of 6/30/19. Source: Hamilton Lane Data

12% 13% 11%

2%

7% 12%

25% 13%

22%

5%

10%

14%

31%

24%

17%

25%

33%

24%

1999 2007 2019

Mega/Large

Buyout

SMID Buyout

Credit

VC/Growth

Infrastructure

& Natural

Resources

Real Estate

Private Markets Total Exposure $0.5 T

MSCI World Market Cap $16.0 T

Total private markets AUM represents $5.5T or 6.7% of all global listed equities and non-financial debt
Pensions Continue to Increase Allocations To Alternatives

7% 

19% 

26% 

1998 2008 2018

Source: Willis Towers Watson Global Pension Assets Study 2019; % of total assets within Alternatives represented above. Alternatives defined as assets not invested in cash, equities, or fixed income buckets. 

14
0%

20%

40%

60%

80%

100%

120%

0 5 10 15 20 25 30

Illustrative Private Equity Effect on Pension Portfolios

Based on the views and opinions of Apollo Analysts. Subject to change at any time without notice. For illustrative and discussion purposes only. There is no guarantee that pension portfolios will achieve the illustrative portfolio 

accretions. (1) FRED as of October 2019. (2) “Economic Contribution of the U.S. Private Equity Sector in 2018.” Ernst &Young, October 2019. 

Private Equity is a Critical Component of Pension Portfolios

15

Private Equity’s Outsize Contribution to Pension Returns

14%

86%

Illustrative State

Pension Allocation

Private Equity’s Return 

Contribution to Illustrative 

State Pension’s Portfolio

31%

69%

91% of U.S. Public Pensions Allocate to Private Equity(2)

Private Equity Other Asset Classes

67%

102%

Portfolio Accretion with Private Equity

Portfolio Accretion without Private Equity

Years

Funding Status 
With Growth Expected to Continue Across Many Asset Classes

Source: Preqin Future of Alternatives Report – October 2018. Predictions based on results from surveys with 300 fund managers and more than 120 institutional investors, as well as proprietary data. 

$3.1 tn

$0.2 tn

$0.7 tn

$0.4 tn

$0.8 tn

$4.9 tn

$0.8 tn

$1.4 tn

$1.0 tn

$1.2 tn

Private Equity Natural Resources Private Debt Infrastructure Real Estate

2017 2023

+58% +300% +100% +150% +50%

16