For decades, convincing pension and sovereign wealth funds to put cash into Apollo’s investment funds was straightforward. Returns were consistently excellent. It was harder to get public market investors excited about investing in the listed Apollo Global Management. The departure of Leon Black gives his successors a chance to try again
The larger-than-life Apollo co-founder is leaving after 30 years. He cited health concerns and the media firestorm over his relationship with the late sex criminal, Jeffrey Epstein. Whatever the reason, his departure comes at a delicate moment. Despite good results, Apollo has failed to convince the market to price in its investment success, past and future.
Since the start of 2020, Apollo’s share price has gone sideways. The stock of rivals Blackstone and KKR are up 30 per cent and 65 per cent, respectively. That has given new chief executive Marc Rowan a mandate for radical change. He has collapsed Apollo’s dual-class share structure and announced a merger with Athene Holding, a life insurance affiliate, which promises to be transformative.