{"text":[[{"start":11.37,"text":"For decades, convincing pension and sovereign wealth funds to put cash into Apollo’s investment funds was straightforward. "},{"start":17.862,"text":"Returns were consistently excellent. "},{"start":20.104,"text":"It was harder to get public market investors excited about investing in the listed Apollo Global Management. "},{"start":25.497,"text":"The departure of Leon Black gives his successors a chance to try again "}],[{"start":30.57,"text":"The larger-than-life Apollo co-founder is leaving after 30 years. "},{"start":34.599000000000004,"text":"He cited health concerns and the media firestorm over his relationship with the late sex criminal, Jeffrey Epstein. "},{"start":40.641999999999996,"text":"Whatever the reason, his departure comes at a delicate moment. "},{"start":43.972,"text":"Despite good results, Apollo has failed to convince the market to price in its investment success, past and future. "}],[{"start":50.760000000000005,"text":"Since the start of 2020, Apollo’s share price has gone sideways. "},{"start":55.227000000000004,"text":"The stock of rivals Blackstone and KKR are up 30 per cent and 65 per cent, respectively. "},{"start":61.232000000000006,"text":"That has given new chief executive Marc Rowan a mandate for radical change. "},{"start":65.37400000000001,"text":"He has collapsed Apollo’s dual-class share structure and announced a merger with Athene Holding, a life insurance affiliate, which promises to be transformative. "}],[{"start":74.64,"text":"Rowan has created a valuable credit investing business at Apollo built on a foundation of retirement annuities. "},{"start":80.807,"text":"Both KKR and Blackstone have replicated this strategy, if more primitively. "},{"start":85.462,"text":"Yet, they trade an average of a tenth higher on forward earnings multiples. "}],[{"start":90.58,"text":"Apollo’s public listing created potential liquidity for founders such as Black and scope for the business to sell fresh equity to finance growth. "},{"start":98.247,"text":"It has also increased scrutiny. "},{"start":100.30199999999999,"text":"This has forced a business forged in the hard-nosed world of distressed debt to woo investors who care about the niceties of corporate governance. "},{"start":107.144,"text":"Simply turning a dollar of capital into $1.30 is insufficient. "}],[{"start":112.37,"text":"At the moment, Apollo does not earn the benefit of the doubt from this crowd. "},{"start":116.637,"text":"To be fair, rather than offering mere defiance Apollo wants to evolve into a better version of itself. "},{"start":122.117,"text":"Black has left open the possibility that he may return eventually. "},{"start":125.72200000000001,"text":"If Rowan does his job well Apollo will be better business by then — and will be valued accordingly. "}],[{"start":131.76,"text":"If you are a subscriber and would like to receive alerts when Lex articles are published, just click the button “Add to myFT”, which appears at the top of this page above the headline. "}],[],[{"start":141.85,"text":""}]],"url":"https://creatives.ftacademy.cn/album/36051-1616483936.mp3"}