Apollo often becomes the largest investor in its own funds, using its retirement services arm and balance sheet. This aligns interests by ensuring the firm experiences the same financial outcomes as its clients, which builds significant trust and demonstrates high conviction.

Apollo's foundational private equity strategy—seeking value, being contrarian, and investing flexibly across the capital structure—was not siloed. This single philosophy of maximizing return per unit of risk now guides every investment decision across their entire platform, including credit and insurance.

With half its AUM being its own captive insurance capital, Apollo's mindset shifts from a third-party manager to an owner-investor. This changes the client conversation from "here's a new product" to "here's what we're investing our own money in, join us." This deep alignment builds significant trust with LPs.

A skilled investor avoided a winning stock because his Limited Partner (LP) base wouldn't tolerate the potential drawdown. This shows that even with strong conviction, a fund's structure and client base can dictate its investment universe, creating opportunities for those with more patient or permanent capital.

Contrary to the industry's focus on capital raising, Apollo identifies the generation of high-quality investment opportunities ('origination') as the primary bottleneck to its growth. This mindset shifts their focus from fundraising to building and acquiring platforms that can source unique deals at scale.

Instead of taking more credit risk, Apollo leverages the long-term, stable nature of its insurance liabilities (8-9 years on average). This "secret asset" provides the flexibility to invest in complex or less liquid assets, capturing an "excess spread" unavailable to institutions like banks with short-term funding.

The firm's core belief, "purchase price matters," reframes the concept of "toxic assets." Any asset, no matter how distressed, can become attractive if the price is right. This mindset allows the firm to act decisively during market dislocations when others are fearful, capitalizing on mispriced complexity.

In the current late-cycle, frothy environment, maintaining investment discipline is paramount. Oaktree, guided by Howard Marks' philosophy, is intentionally cautious and passing on the majority of deals presented. This discipline is crucial for avoiding the "worst deals done in the best of times" and preserving capital for future dislocations.

For private market giants, the key differentiator isn't assets under management, but the ability to create proprietary investment opportunities. Apollo has built 16 internal "origination engines" in niche areas like fleet and consumer finance to generate unique alpha for its clients.