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Apollo adds 150 to global wealth, poaching from Goldman and HSBC

(Bloomberg) — Apollo Global Management Inc. is expanding its global wealth business, bringing on new employees at a rapid clip as it seeks to win over the wallets of individuals investing outside of stocks and bonds.

According to Stephanie Drescher, the alternative-asset management giant has added nearly 150 people to global wealth since May, including senior employees at Goldman Sachs Group Inc. and HSBC Holdings plc, whom Apollo oversaw global wealth last year. was nominated for.

“When we think about the investors who are eligible for options today, the landscape has changed quite dramatically,” Drescher, Apollo’s chief customer and product development officer, said Thursday at Bloomberg Wealth Summit in New York. “Being able to provide institutional quality opportunities to individuals through financial advisors is exactly what we and others want to do.”

New York-based Apollo said at an Investor Day in October that 2022 should be the best year ever for fundraising, with Drescher calling global funding a “major bet” and a big contributor to the new funds.

The firm has said it expects global wealth to grow to 30% of new capital in the coming years, up from 5% last year, and could be even higher. Drescher said Thursday that Apollo is well on its way to reaching those goals.

Part of the plan to expand the business will include making it easier to access private loans, real estate and buyout funds through technology.

“It’s a matter of when, if not all, that it might be a simple click”, Drescher said, to invest in Apollo Funds.

Apollo isn’t the only alternative-asset manager to seize the rise in global wealth since the COVID-19 pandemic. Ares Management Corp. Chief Executive Officer Michael Arogetti said earlier at a Bloomberg summit that there is a “revolution” in the way individual investors can access private equity and other options.

Read more: Ares CEO Arughetti bets on the retail ‘revolution’ for alternatives

Meanwhile, Royal Bank of Canada is in talks with several fund providers, including Brookfield Oaktree Wealth Solutions and Blue Owl Capital Inc., to engage individual investors in private loans, people familiar with the matter told Bloomberg News. Told.

Investors are flocking to the private debt market, where some companies choose to borrow instead of syndicated loans for their higher yields, and the US Treasury is coming out of its worst quarterly loss since at least 1973. Meanwhile, the S&P 500 index dropped nearly 5% in the three months ended March 31.

“As we approach this opportunity set for the global wealth channel, it seems like it is the perfect time to bring together a wonderful team,” Drescher said. Unlike the past decade, now is “a time when purchase price matters.”

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