Capital Markets

Since Apollo’s founding in 1990, we believe our capital markets expertise has served as an integral component of our company’s growth and success.  Our credit-oriented capital markets funds leverage Apollo's integrated platform and utilize the same disciplined, value-oriented investment philosophy that we employ with respect to our private equity funds.  We seek to participate in high margin capital markets businesses where our industry expertise can be used to generate attractive investment returns.  Our capital markets activities span a broad range of the credit spectrum, including non-performing loans, distressed debt, mezzanine debt, senior bank loans, and value oriented fixed income. 

As of March 31, 2012, our capital markets funds had total assets under management of approximately $36 billion, including distressed and event-driven hedge funds,  mezzanine funds, senior credit funds and a European non-performing loan fund.  Our capital markets business also includes strategic investment accounts and Athene Asset Management. After the acquisition of Stone Tower Capital in April 2012, our capital markets funds had approximately $55 billion of total assets under management on a pro-forma basis.

The value-oriented fixed income segment of the capital markets spectrum is the most recent investment area for Apollo, and it is characterized by its ability to generate attractive risk-adjusted returns relative to traditional fixed income investments.  An example of our value-oriented fixed income investments includes Athene Asset Management, which we established to provide asset management services to Athene Life Re, Ltd.  We created Athene Life Re, which is substantially owned by a subsidiary of Apollo, to source, analyze, and negotiate the aquisition of fixed annuity policies from primary insurance companies.