(Bloomberg) — Apollo Global Management Inc. co-president Scott Kleinman said the firm is selling about $1 billion a month in its so-called semi-liquid products as the alternative asset manager expands its offerings to wealthy individuals.
The firm has 10 products that include credit, real assets, infrastructure and equity, he said on Tuesday Barclays Global Financial Services Conference. Apollo has added about 200 people working on the property in the past three years, according to Kleinman.
Private equity firms are racing to build and sell products to wealthy individuals and insurers as fundraising remains challenging among their traditional investor base, such as pension funds and endowments. The industry has created a category known as semi-liquid funds, which typically allow individual investors to cash out a portion of their holdings quarterly or monthly.
Apollo debuted an infrastructure product earlier this year, and it will reach about $1 billion in assets by the end of the year, according to Kleinman. The firm also launched an asset-backed financial vehicle and expects to break ground on a secondary product next month, he said.
“We're only in the first or second phase of this global wealth revolution, tapping into the alternatives,” Kleinman said.
According to Kleinman, the firm is raising more than $200 million a month for its flagship equity product, Apollo Aligned Alternatives. Chief Executive Marc Rowan said at the meeting product launch that he expects it to become the largest fund on the entire Apollo platform.
The alternative asset manager said on Tuesday that it had presented to start a private credit exchange-traded fund with State Street Corp.
Read more: Private equity battles traditional insurers for $15 trillion