Magazine

Apollo’s Strategic Shift: Targeted M&A to Fuel $1.2 Trillion Private Credit Growth

Apollo Global Management shifts strategy, embracing modest M&A for growth. CEO Marc Rowan announces plans to expand investment capabilities through targeted acquisitions, aiming to double private credit assets to $1.2 trillion in five years. Recent Argo Infrastructure Partners acquisition exemplifies new approach.

Staff Editor February 4, 2025

Apollo Global Management Shifts Strategy, Embraces Modest M&A for Growth

Apollo Global Management, under the leadership of CEO Marc Rowan, is pivoting towards a new strategy that embraces modest mergers and acquisitions (M&A) to expand its investment capabilities. This shift, announced during Apollo’s 2024 year-end earnings call, marks a departure from Rowan’s previous stance of “no new toys” and focus on execution over growth through M&A.

The recent acquisition of Argo Infrastructure Partners, a firm with $6 billion in assets under management (AUM), serves as a model for Apollo’s future acquisitions. This strategic move aims to enhance Apollo’s lending capabilities and bolster its infrastructure investment track record.

Rowan emphasized that the firm’s M&A plans will remain modest, focusing on increasing capacity to originate and expand lending capabilities. This approach contrasts with larger-scale acquisitions in private credit and alternative asset management pursued by competitors like BlackRock.

The CEO expressed optimism about deal prospects, citing a perceived business-friendly federal government and improving economic conditions. Apollo has set an ambitious five-year plan to double its private credit assets under management to $1.2 trillion.

Central to Apollo’s growth strategy is its insurance arm, Athene, whose balance sheet supports the firm’s private credit ambitions. Rowan stressed that growth is not just about increasing assets, but enhancing lending capabilities.

Looking ahead, Apollo aims to acquire businesses that align with its franchise and can be immediately accretive. The Argo acquisition exemplifies this approach, expanding Apollo’s infrastructure investment capabilities and providing access to a team with extensive experience in the sector.

As Apollo navigates this strategic shift, the financial industry will be watching closely to see how this new approach impacts the firm’s growth and market position in the coming years.