The restructuring of Apollo Global Management Inc.'s Asia division is beginning to pay off: Since the beginning of 2022, the area has contributed $35 billion to support expansion.

Chief Executive Officer Marc Rowan selected Matthew Michelini as head of Asia-Pacific to restructure Apollo's footprint in the area. Since then, the business has been meeting client demand for more consistent returns on private market investments, such as credit and hybrid finance.

Apollo aims to attract financing from insurance companies and financial organizations that manage retirees' assets in the area. This includes Australia and Japan, where these businesses seek increased access to opportunities in the private market. In the past two years, insurance companies have raised around $14 billion of the total funds. In addition, the company has closed its Asia real estate equity fund business and strengthened its regional investment teams in hybrids and private credit.

In a Zoom interview, Michelini stated, "A lot of the tailwinds in the last 10, 15 years are not going to be tailwinds any more." He was alluding to the monetary policy that was easy and the low interest rates that drove a protracted rally in public market investments.

With $651 billion in assets under management globally, the New York-based company has historically concentrated on private equity and similar real estate transactions in the area. Apollo chose to purchase holdings at more affordable prices, frequently valued at six or seven times earnings before interest, taxes, depreciation, and amortization, if gaining control, while other investors pursued high-growth enterprises in nations like China and India.