When high-yield bonds yielded only 4.5% in late 2021, Apollo abstained, viewing it as poor risk-return. Because they invest their own capital heavily alongside clients, they have the discipline to sit out popular but overpriced markets, even if it means forgoing AUM growth that competitors chased.

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.

Many fund managers approach capital raising by broadcasting their own "unique" story. However, the most successful ones operate like great listeners, first seeking to understand the specific needs and constraints of the Limited Partner (LP) and then aligning their value proposition accordingly.

Recognizing the friction in accessing private markets, Apollo spent $1 billion from its balance sheet on wealth tech. This strategic investment aims to improve the underlying infrastructure for the entire industry, acknowledging that a better ecosystem benefits all participants, not just themselves.

Early on, Apollo's culture was non-communicative, viewing information as power. As it grew into a public, global firm and entered the highly regulated insurance industry, this became untenable. The firm had to learn to articulate its strategy clearly to align employees and build trust with global regulators.

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.

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.

Apollo entered the insurance market by identifying a post-GFC niche in guaranteed products (annuities), realizing it was essentially a spread-lending business they could master. This opportunistic move, not a preconceived plan, evolved into a half-trillion-dollar cornerstone of their firm.