Sept 12 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)