Apollo PE vs. Apollo Credit vs. Apollo Hybrid Value
Apollo is known for its infamous hours, culture, and pay. How is it similar/different across the three primary strategies?
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PE and HVF (hybrid value) are quite similar - there's no walls between their opportunistic businesses and APO associates work across funds frequently
HVF is basically a middle-market fund with a lower returns threshold than the flagship PE fund, so that means smaller checks that have lower base case returns but same approach to deals, so hours are still sweaty
don't know anything about the credit business
Would be keen to hear more about HVF - it does not seem like an MM PE fund, they tend to do funkier deals (Non control, Preferred equity, distressed - see here https://www.globenewswire.com/news-release/2020/04/29/2024145/0/en/Apol…) - I think it was born out of the "opportunistic credit" fund which was in fact taking a number of equity positions post restructuring thus decided to re-name the fund.
Not quite true that HV is just a MM rendition of their vanilla PE fund. It's more akin to Blackstone's tacopps with a much more flexible mandate across the cap structure for "hairier" situations. Not a ton of cross-pollination in associate usage either which is more of a recent phenomenon
From what I hear the work in HVF and PE is somewhat similar. Hours are high across both but greater focus on development / culture in HVF. However, HVF is definitely not just a MM PE fund with a lower returns threshold because that would have been a stupid idea (why offer LPs lower returns at the same risk level?). The team was born out of the PE special sits team and the illiquid credit fund.
Think of it more like an all-weather fund that depending on the cycle either makes distressed investments or provides strategic growth capital. The key differentiator vs PE is that the downside risk is protected, either by way of structure (pref. / convert, asset pledge) or some fundamental characteristics of the business. A bit reminiscent of the Dhando investment mantra "heads I win, tails I do not lose much". Also HVF does not need full control, but they will do structured control deals. Cannot comment on credit
Can echo this more or less, seems like HVF is more of a structured equity / mezz debt type fund. Lower returns, lower risk than equity and higher returns, higher risk than credit. Fits between the pure equity of the PE side and pure credit of the credit side.
Think blackstone's tacopps group. Cross-capital structure financing solutions for special sits
How is the sourcing for HVF deals done? Do they have a ton of sourcers similar to direct lending shops? Can’t imagine a lot of their deals are competitive bank led processes.
PE I get doesn’t need sourcers since their bread and butter is IB-marketed deals
To chime in on the credit side since it doesn’t seem like they have said much, my limited knowledge of it is that it is still Apollo so expected to work hard but maybe closer to like an 80 hour week on that side of the business as compared to 100-168 or whatever effectively on the PE and kinda HVF side from what I know. I think the credit side of the business used to be or still is in a different part of the office or even different floor of the building entirely which may account for some slight differences in hours/culture. Pay structure is prob meaningfully different for the credit side in my guess
Apollo credit vs Blackstone credit?
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