2024-03-06
56 分钟Marc Rowan, co-founder and CEO of Apollo Global Management, joined Tyler to discuss why rising interest rates won't hurt Apollo's profitability, why liabilities have traditionally been the weak spot in insurance, why the concept of liquidity needs a rethink, the meaninglessness of the term "private credit", what role crypto will play in American finance, why Marc bought a brutalist apartment, which country has beautiful new neighborhoods, what motivated Apollo's office redesign, what he looks for in young hires, the different kind of decision-making required in debt versus private equity, the biggest obstacle to doing business in India, how university governance can be improved, what he's learned from running restaurants, the next thing he'll learn, and more. Read a full transcript enhanced with helpful links, or watch the full video. Recorded February 5th, 2024. Other ways to connect Follow us on X and Instagram Follow Tyler on X Sign up for our newsletter Join our Discord Email us: cowenconvos@mercatus.gmu.edu Learn more about Conversations with Tyler and other Mercatus Center podcasts here.
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hello, everyone, and welcome back to conversations with Tyler.
Today I'm talking with Mark Rowan, who is co founder and now CEO of Apollo Global Management.
Mark also has been leading a campaign to reform and improve american higher education.
Mark, welcome.
Thank you so much.
And while I do lots of interviews, this is actually my first podcast.
You said recently on Bloomberg that higher interest rates don't hurt the profitability of Apollo.
How do you think about that in terms of your portfolio, what you do, how do you manage to be in that position?
I just think globally about the shape of our business.
We are today a $650 billion asset manager.
Roughly $500 billion of that is credit, and $150 billion of that are various forms of equity.
Quite frankly, just math.
We do better on the $500 billion when rates are higher, up to the point that you have economic distress.
And most of our equity, they are pretty savvy about how they borrow and how they lock in interest rates and using fixed rate and other hedging instruments.
So generally, we have upside to the level of interest rates.
But how is it you manage to do maturity matching so much better than, say, alternative institutions?
I'm not sure it's better.
I think you have to look at the structure of our business, I assume by other institutions.