Scott Kleinman, co-president of Apollo Asset Management, traces the firm's evolution from a value-oriented private equity boutique to a trillion-dollar alternative asset manager. The discussion highlights Apollo's core philosophy of excess return per unit of risk and its expansion into private credit and retirement services post-GFC. Kleinman emphasizes that origination, not capital, is now the key constraint on Apollo's growth, driven by the need for specialized expertise in asset-backed lending and private investment grade opportunities. He recounts the firm's early success with undervalued companies like Compass Minerals and the strategic shift towards insurance-related assets, leveraging duration arbitrage to enhance returns. The conversation also explores Kleinman's transition to firm-wide leadership, focusing on culture, incentives, and the importance of clear communication.
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