(Bloomberg) — Apollo Global Management Inc . plans to expand its asset origination business to sell private credit to retail channels, including exchange-traded funds, Chief Executive Marc Rowan said.
The firm already sells its credit instruments to its Athens business and other insurers, as well as institutional investors.
“We built a third-party insurance business and then we built a third-party institutional business, a fixed-income replacement business, and you're going to see us do that in retail,” he told an industry conference. on Thursday. “You'll see us do that in the interval funds. You'll see us do that in ETFs.”
Private asset firms are increasingly looking beyond traditional institutional investors such as pension funds and endowment funds in a difficult fundraising environment. Blackstone Inc. and KKR & Co. are also building property units, while Carlyle Group Inc. is preparing its first European private credit fund for wealthy individuals.
Apollo's products for individual investors are distributed through intermediaries such as wealth banking channels and registered investment advisers, and the firm doesn't expect that to change, Rowan said.
But the firm sees opportunities to create investments for individual investors to access private markets that are a mix of 70% beta and 30% alpha, he said. Apollo plans to launch two such products this year, Rowan said.
“Eventually you're going to see this with credit, but eventually you're going to see this across the landscape,” he said.