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Private equity can still find ‘diamonds in the rough’: Apollo exec

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FILE PHOTO: Joshua Harris, co-founder and a member of the board of administrators at Apollo Global Management speaks throughout the Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2017. REUTERS/Lucy Nicholson/File Photo

NEW YORK (Reuters) – Private equity billionaire Joshua Harris thinks there are still loads of undervalued corporations to enhance and revenue from, particularly away from the public markets.

“Certainly, this is not a value-oriented environment,” stated Harris, senior managing director of Apollo Global Management, “but we’re able to find really interesting diamonds in the rough.”

Harris, talking at the CNBC Institutional Investor Delivering Alpha convention, stated Apollo noticed alternative in taking public corporations personal.

Harris cited Apollo’s buy of Aspen Insurance Holdings for $2.6 billion in August 2018 and Smart & Final Stores for $1.1 billion in April 2019 as examples.

There is probably going extra to return: The New York Post reported Apollo desires to purchase publicly traded Hilton Grand Vacations Inc, the resort chain’s time-share operator, for $2.four billion.

Harris stated at the New York occasion that sectors still below important stress, together with banking, insurance coverage and power, still wanted capital and supplied alternative for corporations like Apollo.

Generally, Harris stated that personal equity income “have come down a bit,” however that they “still way better” than returns in the public market, resembling shares.

Investors appear to agree: Earlier this 12 months, the agency stated it deliberate to boost round $9 billion. Apollo, based in 1990, already has $319 billion in dedicated capital. Some $77 billion of that’s in personal equity funds, together with $24.7 billion for its newest portfolio, Fund IX, which was closed in 2017.

Reporting by Lawrence Delevingne and Svea Herbst; Editing by Lisa Shumaker

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