great start!!, page-49

This diversifies Apollo's business in such a great way.

"For example, Mr. McGould said the two companies are talking about ways that Apollo could invest cash raised through capital calls in Lighthouse's liquid managed account hedge funds-of-funds strategies until it's needed for investment."

This is pure genius if this is what they intend on doing. Think of it this way you are a large state pension and you need to allocate part of your portfolio to Private Equity, but you know that you are going to have a negative curve (J-Curve) for the first year. However, now Apollo comes along and says you know what, we have a way that we can not only reduce the J-Curve but perhaps provide you with a positive ROR from year one, by investing your unused callable cash in a liquid hedge fund strategy.

Obviously there is more to it that that, but on the surface it is an incredible idea and a huge Alpha generator for a private equity strategy.



Read more: http://www.pionline.com/article/20101213/REG/101219981#ixzz18dvAI9UL