Apollo Global Management Investor Day Presentation Deck
Athene's Strategy is to Pursue Yield Through Illiquidity and
Complexity Premia Without Adding Incremental Credit Risk
OPTIONS TO PURSUE EXCESS RISK ADJUSTED INVESTMENT RETURNS
MORE DURATION
• Buy assets with longer tenor than
liabilities to take advantage of upward
sloping yield curve
×
Likely liquidity issues
relative to business model
APOLLO RETIREMENT SERVICES BUSINESS UPDATE 2022
●
RISKIER ASSETS
Buy assets farther out on the
risk/reward spectrum (e.g. public
equities)
Buy lower quality credit in pursuit
of higher spreads
×
Likely capital issues
relative to business model
●
●
ILLIQUIDITY & STRUCTURE
Capture illiquidity premium by buying more
private, illiquid assets vs. public assets
Capture complexity premium by buying
structured securities offering diversification,
credit enhancement and structural
protections
Excess returns for spread-based
business with long-term
persistent funding
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