Cold Call Apollo Global Management’s Business Model Transformation
19 snips
Nov 11, 2025 George Serafeim, a Harvard Business School professor and expert on Apollo Global Management, dives into Apollo's evolution from a private equity giant to an insurance-focused powerhouse. He discusses the implications of their Athene acquisition, revealing shifts in their financial profile and governance. The conversation covers the competitive landscape between asset-heavy and asset-light firms, the transformation of their investment strategy, and the growing role of private credit. Serafeim also emphasizes the importance of risk management amid changing market dynamics.
AI Snips
Chapters
Books
Transcript
Episode notes
Balance-Sheet Transformation Changes Everything
- Apollo's deal with Athene turned a fee-driven private equity firm into an insurance-backed capital manufacturer.
- That shift created a massive balance-sheet transformation and new regulatory and risk challenges.
Retirement Demand Fuels Cheap, Long-Term Capital
- Insurers needed higher yield for long-dated annuity promises as rates fell and retirees grew.
- Apollo saw this as a source of long-duration, lower-cost capital to deploy into credit and other assets.
Reform Governance To Signal Trust
- Strengthen governance: increase shareholder voting power and independent boards to build credibility.
- Shift compensation toward deferred equity and set up separate investment committees for conflicting interests.
