(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 Officer Marc Rowan said.
The firm already sells its credit instruments to its Athene 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 will watch us do this in retail,” he said at an industry conference Thursday. “You will watch us do this in interval funds. You will watch us do this in ETFs.”
Private asset firms are increasingly looking beyond traditional institutional investors such as pension funds and endowments for sources of capital amid a difficult fundraising environment. Blackstone Inc. and KKR & Co. are also building wealth units, while Carlyle Group Inc. is readying its first European private credit fund for wealthy individuals.
Apollo’s products for individual investors are distributed through intermediaries such as bank wealth 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’ll see this in credit, but eventually you will see this in the whole landscape,” he said.