Apollo Aligned Alternatives enables investors to achieve equity-like performance at reduced volatility levels through its diversified private market investments which span equities and real assets and credit. The innovative fund entered the market as a retail-focused product which aims for 12–15% net returns at a $15 billion launch size to make alternative investments accessible to investors who do not belong to traditional institutional groups.
CEO Marc Rowan recognized a fundamental market flaw which led to the creation of Apollo Aligned Alternatives because private markets deliver superior long-term risk-adjusted returns yet remain inaccessible to most retail and high-net-worth investors. The fund combines equity performance with fixed income stability through 180 established positions that Apollo Global Management has accumulated since 2011 from Athene's entire equity portfolio. The fund structure enables investors to access a mature diversified portfolio right away instead of waiting for the extended timeframes needed by traditional private market funds.
The investment approach utilizes Apollo's complete alternatives platform by making investments through its balance sheet in a mature portfolio that matches Apollo Global Management's existing funds across credit and equity and real assets. The fund's alignment with Apollo's capital decisions enables investors to benefit from the company's investment choices and eliminates the typical performance risks that occur when new funds enter the market. The fund operates with a flexible private market approach to connect investors with diverse private market assets including equities and real assets and credit while providing a complete alternative investment solution.
The company demonstrates exceptional management capabilities through its 2024 achievements which include surpassing $220 billion in origination and receiving $150 billion in inflows and reaching $750 billion in assets under management. The credit market performance of Apollo Asset Management demonstrates exceptional strength because the company achieves 30-40 basis points of asset outperformance in its investment portfolios. Apollo started in 1990 through the efforts of industry veterans who now lead the company under CEO Marc Rowan and has developed from a conventional private equity firm into a diverse alternative asset manager that manages $840 billion across its platforms including $392 billion in credit investments and $99 billion in private equity.
The semi-liquid structure of this investment product enables private market access through a liquid investment that lacks a maturity date and provides scheduled withdrawal opportunities. The quarterly liquidity windows of Apollo Aligned Alternatives allow investors to make withdrawals through specific trade dates while avoiding the decade-long commitments typical of traditional private equity and credit funds. The evergreen investment structure removes the uncertainty about capital calls and distribution timing which has traditionally made private markets difficult for individual investors to include in their financial plans.
Apollo Aligned Alternatives positions itself where multiple significant market developments meet. CEO Marc Rowan predicts alternative investments will become the preferred choice for more than half of high-net-worth investors during the next five years as they transition from their current investment distribution. The fund serves as an S&P 500 replacement for high-net-worth investors because Apollo believes traditional 60/40 portfolios no longer meet current market requirements. The fund welcomes investors with a $25,000 minimum investment requirement while maintaining a 1.5% management fee that competes well with other alternative investment options.
Additional Fund Details
The fund entered the market in 2023 as part of Apollo's initiative to expand retail offerings and CEO Marc Rowan predicted AAA would become the biggest fund under the Apollo umbrella. The strategy achieved a 10.5% annualized return during the third quarter of 2024 according to early performance results. The fund provides access through collective investment trusts for retirement plans and direct investment vehicles for taxable accounts. The fund has gained significant traction according to management statements which predict AAA will achieve $20 billion in assets by the end of the year.The fund operates under the supervision of a dedicated management team and investment committee which includes senior leaders from across Apollo's business to access the firm's complete investment platform and deal flow. The fund's geographic distribution matches Apollo's worldwide presence through substantial investments in North America and Europe and its industry focus on financial services and credit and business services sectors that match Apollo's main areas of expertise and deal sourcing abilities.