Apollo is not primarily a private equity firm — 80% of its trillion-dollar-plus AUM is credit (mostly investment grade), with only a small fraction in traditional private-equity fund structures.

9:23management, 80% of the assets under management are credit >> and the vast majority of that is investment grade. Mhm. >> And the other 200 billion or 20% of it, half of it is what we call hybrid equity, partner-like equity, >> and half of it is traditional private equity in a fund structure. >> It's a totally different makeup of a business than people expect when they say, well, Apollo is a private equity

9:47firm. Um, well, actually, Apollo is mostly an investment grade credit firm. >> Totally. >> And I think what we appreciate is when you are a small firm, you can be a good deal shop. But when you when you want to get large, you have to serve a fundamental good. Otherwise, the societal pressure, the government regulation, the forces around you constrain you. >> And so I always start with what is what

10:14is the fundamental good we're doing and then what are the drivers of the business. >> And so there they overlap. The fundamental good is we are the largest provider of retirement income anywhere in the world. Mhm. >> Um the second is we are the largest source of financing for this global industrial renaissance that is taking place across the US primarily but across Europe and Asia and elsewhere.

10:36>> And finally we are diversification for public markets and this is the least understood portion >> of what we do. 10 stocks right now in the US are nearly 50% of the S&P and they're all levered to the same trend. >> Yep. >> So far that's been amazing. >> Yep. But we've levered most of the retirement system of the country. Yep. >> To 10 stocks. We can question in

10:59hindsight the wisdom of that if things go poorly. And so the same thing, by the way, is happening in the global fixed income market. >> Dominated historically by 10 large banks, it's about to be dominated by five large banks and five large tech companies. As much concentration as exists in the equity market, that's how much concentration is going to exist in the fixed income market. And so if

11:22you're an investor and you're looking for diversification, there's no place to get it other than private markets. Private markets are 80% of the action going on in the world. >> And if you think about what's going on, great companies, Enthropic, Open AI, SpaceX, Cognition, Cursor, >> and on and on and on. Every one of those companies is private, multiple trillion dollars >> of value and yet most investors have