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Apollo, god of basically everything

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Marc Rowan, Co-Founder and Senior Managing Director, Apollo Global Management, LLC, takes part in a panel discussion of Credit Markets: What's Next? during the 2014 Milken Institute Global Conference in Beverly Hills, California April 29, 2014. REUTERS/Kevork Djansezian

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NEW YORK, Oct 19 (Reuters Breakingviews) - Marc Rowan has set Apollo Global Management (APO.N) a challenge worthy of Greek myth. As part of the asset manager’s 261-page investor day presentation, the new chief executive read more

said on Tuesday that he wants the firm to manage more than $1 trillion by 2026, more than twice what it has now. Apollo’s market capitalization rose $2.1 billion, or 7%. Take Rowan’s comments at face value, and that may be conservative.

The engine driving the Apollo’s assets is Athene , the insurance company it created in 2009. Over the past five years, Apollo’s assets under management have more than doubled to $472 billion. So-called permanent capital vehicles make up more than half of that.

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Assume, crudely, that Rowan hits that $1 trillion, and can squeeze out 1% a year in fees. Apollo’s revenue would be $10 billion by 2026. Based on BlackRock’s (BLK.N) five-year average multiple of 5 times revenue, according to Refinitiv, Apollo would be worth 50% more than its current value. Tuesday’s more modest share price suggest investors are at least giving him credit for trying. (By Lauren Silva Laughlin)

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Editing by John Foley and Sharon Lam

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