Apollo plans to double AUM by 2029

Apollo Global Management has set out plans to double its assets under management (AUM) from $696bn (£523bn) to $1.5tn by 2029.

The ambitious target was announced at today’s investor day to present its business priorities and five-year financial targets.

In its presentation on the credit business, the firm pointed to massive opportunities in the investment grade market and asset-backed finance.

Apollo currently has $562bn in credit AUM, comprised of $365bn of corporate credit and $197bn of asset-backed finance.

Read more: Apollo inks $5bn funding commitment from BNP Paribas

The firm’s growth target is based on the continuing trend away from traditional lenders, as well as the consequent emerging opportunities to lend to growth sectors such as energy transition, power and utilities, and digital infrastructure industries.

“In every market, banks are being asked to do less and investors are being asked to do more,” Apollo chief executive Marc Rowan said. “We are just at the beginning of this trend.”

According to the Financial Times, if Apollo meets its target of originating $275bn in debt annually within five years, it will become the one of the biggest debt underwriters on Wall Street.

Apollo has originated $164bn in new loans over the past 12 months.

Read more: Apollo acquires more than half of risk on Deutsche Bank’s $3bn loan portfolio

“In an industry where we believe the capacity to originate good assets is the key to success, Apollo is playing to win,” said Rowan.

“Our entire industry is supported by powerful tailwinds that support robust growth over the next five years. Apollo is uniquely positioned given our focus on origination, expansive credit franchise and retirement services leader, Athene.”

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