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David's avatar

Ares Management would have been an interesting addition to the comparison group.

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James Emanuel's avatar

Ares was spun out of Apollo. Yes it would have been interesting, but there are so many of these. Carlyle Group is another.

I focused on these 4 because they garner the most attention in the investment community, have all tracked each other (e.g. incorporating insurance), but each is nuanced in its own way.

Also, these four all have long term CEOs with a founder mentality.

I had to split the analysis into 3 parts because it was already too long. Introducing others wasn't really an option.

Also, I think that Brookfield is the most interesting. The other three were thrown in as a means to compare it and distinguish it.

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James Emanuel's avatar

All of these big alternative investment managers have moved into insurance. Apollo was the first back around 2008 with Athene, but Brookfield, KKR and Blackstone have all followed suit.

It's not too dissimilar to the Berkshire approach to boosting earnings via insurance float.

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Bernardo's avatar

Apollo also has a different model because it owns it’s own insurance operation (Athene). That’s why Apollo is close to the DE multiple of Brookfield.

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Anshul Puri's avatar

Great read

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Yuval Haronian's avatar

Thank you for this amazing deep dive!

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James Emanuel's avatar

My pleasure. Please feel free to share with others.

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David's avatar

Hi James,

where does this picture "Split of investor portfolio by sector (% of assets)" come from?

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James Emanuel's avatar

Non-public analyst reports, hence no source attribution. I thought it was useful in the context of this post.

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David's avatar

It definitely is. It would have been interesting if it had been a publicly available source. Thanks for your answer.

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joe's avatar

This is wonderful. Thank you for sharing.

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