The new approach to asset allocation treats private markets as an alternative to public stocks and bonds, not just a small add-on. This means integrating them directly into the core equity and debt portions of a portfolio to enhance returns and diversification.
Apollo deliberately structures its office with a central floor for food and amenities. This forces "casual collisions"—unplanned interactions between employees from different teams—which is crucial for collaboration, innovation, and sustaining a strong culture, especially post-pandemic.
The standard 401(k) is filled with daily-liquid assets, despite having a time horizon of decades. This structural mismatch unnecessarily limits potential returns. This is the core argument for allowing more access to less-liquid private market investments within retirement plans.
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.
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.
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.
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.
Stephanie Drescher, an Econ and Psych major, jokes that her psychology background is far more applicable in her day-to-day finance role than economics. This highlights the critical importance of understanding human behavior, client needs, and interpersonal dynamics in high-stakes financial services.