Key Takeaways
- • Apollo Global Management manages approximately $472 billion in assets under management, positioning it as one of the world's largest alternative investment managers, with Marc Rowan serving as Co-Founder and newly appointed CEO as of early 2021.
- • Rowan's first six months as CEO have delivered record results, including the firm's best quarter for distributable earnings in at least eight years, alongside completion of multiple high-profile blockbuster deals and strategic investments.
- • Apollo's stock price continues to underperform peers significantly despite operational achievements, with market analysts attributing the discount largely to reputational headwinds from former CEO Leon Black's departure in 2020, though Rowan characterizes this noise as "largely behind us."
- • During the September 13 livestream, Rowan addressed three critical market themes affecting Apollo's portfolio: the private equity boom, inflationary pressures across operations and investments, and emerging investment opportunities in the current economic environment.
- • Rowan stated plainly that "everything that we once did now costs more," signaling that portfolio companies and operational costs across Apollo's alternative investment platform are experiencing broad-based inflation impacts.
Summary
Apollo Global Management held a rare public appearance by newly appointed CEO and Co-Founder Marc Rowan during CNBC's inaugural Delivering Alpha Livestream on September 13, 2021. The interview, conducted by CNBC's Leslie Picker, marked a significant moment for the $472 billion alternative asset manager as Rowan addressed the firm's operational performance, market outlook, and efforts to restore investor confidence following governance challenges under previous leadership.
Rowan's tenure as CEO, now approximately six months into the role, has produced measurable results. The firm delivered its strongest quarter for distributable earnings in at least eight years, completed multiple blockbuster transactions, and executed high-profile strategic investments. However, these operational achievements have not translated into stock price appreciation. Apollo's shares continue to significantly underperform its peer group, a divergence that Rowan and market analysts attribute to lingering reputational concerns stemming from former CEO Leon Black's 2020 departure. Rowan acknowledged the valuation discount directly, stating he would not be doing his job as CEO if he didn't believe the stock was undervalued, while characterizing the reputational "noise" as "largely behind us" and positioning the firm's focus on execution going forward.
A central theme of Rowan's discussion involved macroeconomic headwinds affecting Apollo's portfolio companies and operations. When asked about inflation's impact on the business, Rowan provided a candid assessment: "Everything that we once did now costs more." This statement underscores the inflationary pressures rippling through alternative investment portfolios during 2021, affecting margins, operational expenses, and capital deployment decisions across portfolio holdings. Rowan also addressed the ongoing private equity boom and discussed emerging investment opportunities in the current market environment, though the livestream focused heavily on Apollo's strategic positioning rather than specific deal announcements.
The livestream served as a kickoff event for CNBC's eleventh annual Delivering Alpha conference, scheduled for September 29, 2021. The timing provided Rowan a platform to set expectations for Apollo's future direction, demonstrate operational confidence, and begin rebuilding institutional investor perception following the governance transition.
Rowan's tenure as CEO, now approximately six months into the role, has produced measurable results. The firm delivered its strongest quarter for distributable earnings in at least eight years, completed multiple blockbuster transactions, and executed high-profile strategic investments. However, these operational achievements have not translated into stock price appreciation. Apollo's shares continue to significantly underperform its peer group, a divergence that Rowan and market analysts attribute to lingering reputational concerns stemming from former CEO Leon Black's 2020 departure. Rowan acknowledged the valuation discount directly, stating he would not be doing his job as CEO if he didn't believe the stock was undervalued, while characterizing the reputational "noise" as "largely behind us" and positioning the firm's focus on execution going forward.
A central theme of Rowan's discussion involved macroeconomic headwinds affecting Apollo's portfolio companies and operations. When asked about inflation's impact on the business, Rowan provided a candid assessment: "Everything that we once did now costs more." This statement underscores the inflationary pressures rippling through alternative investment portfolios during 2021, affecting margins, operational expenses, and capital deployment decisions across portfolio holdings. Rowan also addressed the ongoing private equity boom and discussed emerging investment opportunities in the current market environment, though the livestream focused heavily on Apollo's strategic positioning rather than specific deal announcements.
The livestream served as a kickoff event for CNBC's eleventh annual Delivering Alpha conference, scheduled for September 29, 2021. The timing provided Rowan a platform to set expectations for Apollo's future direction, demonstrate operational confidence, and begin rebuilding institutional investor perception following the governance transition.
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