(Bloomberg) -- Asset managers that reach retail clients have become a new market for private investments, Apollo Global Management Inc. Chief Executive Officer Marc Rowan said.He sees those firms as potentially becoming one of the largest blocs backing private assets — alongside institutions, insurance companies and individuals — with exposure to those investments increasing inside mutual funds, exchange-traded funds and “products of all types” offered to retail clients.“This will allow our industry to reac ...

Core Insights - The growing interest in alternative investments is reshaping portfolio strategies, particularly as traditional stock and bond correlations have shifted [5][6][32] - The demand for income-generating strategies is driving retail investor interest in alternatives, with many seeking higher yields than traditional fixed income [14][28][52] Group 1: Alternative Investments and Market Dynamics - Alternatives are gaining traction due to the changing behavior of stocks and bonds, particularly after the rise in interest rates in 2022, which has led to positive correlations between the two [5][6] - The traditional 60/40 portfolio model is evolving as investors seek additional sources of risk and return beyond stocks and bonds [7][8] - New alternative products, including those in the cryptocurrency space and income-focused ETFs, are emerging to meet investor demand [9][39] Group 2: Income Generation and Retail Investor Behavior - Retail investors are increasingly focused on income, with strategies offering double-digit yields becoming particularly attractive [14][28] - The recent equity market rally has been driven more by retail investors than institutional ones, indicating a shift in market dynamics [11][12] - Active management strategies are being employed to navigate low volatility environments and enhance income generation [16][18] Group 3: Private Credit and Accessibility - The collaboration between Simplify and Vetify aims to provide accessible private credit investment options through ETFs, catering to a broader range of investors [39][41] - Private credit is seen as a disruptive asset class, offering high income potential and appealing to those moving away from traditional fixed income sources [52][53] - The demand for private credit is growing, with more investors seeking exposure through innovative ETF structures [50][55]