Apollo says sees credit investment opportunity

Sept 12 Mon Sep 12, 2011 2:22pm EDT

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Sept 12 (Reuters) - U.S. private equity firm Apollo Global Management LLC (APO.N) sees an opportunity to invest in credit, which it called a huge and fast growing business as its investors search for yield.

Apollo co-founder Marc Rowan said at a Barclays Capital conference on Monday, which was webcast, that it has been a large buyer of residential mortgages, commercial performing loans and nonperforming loans.

These historically would have ended up on balance sheets of financial institutions, said Rowan over the webcast.

Rowan said he sees opportunities to serve clients more broadly -- beyond offering products viewed as fitting a portfolio manager's allocation to alternative investments.

He said he sees opportunities to offer products that fit a pension or endowment fund's allocations to equities and fixed income, with particular focus on the latter.

"Fixed income is where the greatest changes are taking place," Rowan said.

Rowan said Apollo's portfolio companies have not shown a downturn, with its consumer facing businesses still meaningfully ahead of last year while numbers in its industrials business are "pretty much the same."

Apollo in August reported a rise in second-quarter earnings, helped by higher profits from its private equity unit, and said the recent market falls potentially gave it opportunities to invest. [ID:nN1E778040]

(Reporting by Megan Davies; Editing by Richard Chang)

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