Behind the Money Why Blackstone, KKR and Apollo are moving in different directions
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Jun 4, 2025 
Antoine Gara, US private equity and deals editor at the Financial Times, sheds light on the diverging strategies of Blackstone, Apollo, and KKR in a complex market. He discusses how these firms have adapted their approaches amid economic challenges and interest rate fluctuations. Apollo’s integration of private capital and insurance stands out, while Blackstone maintains its traditional growth model. Gara also examines KKR's extensive $50 billion portfolio and the risks it faces in a volatile market, linking these strategies to future performance prospects.
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Diverging Strategies of PE Giants
- Blackstone, Apollo, and KKR started similarly but are now pursuing radically different strategies.
- This divergence reflects adaptation to potential economic downturns and market volatility.
Apollo's Hybrid Model Explained
- Apollo evolved into a bank-like entity by integrating insurance with private capital management.
- This model aims to optimize insurance portfolios for higher returns and enhance Apollo's profit potential.
Risks in Insurance-Private Capital Link
- Insurance business carries risks of guaranteed payouts and policyholder withdrawals, especially in downturns.
- Apollo must manage these liabilities carefully to protect profitability.