Apollo Global Management (APO.N) is gearing up for significant growth in Japan, planning to expand its presence and bolster its Asia wealth business. The move underscores a broader trend of global investment firms pouring resources into Asia to capitalize on a surge in deals and assets.
The New York-based asset manager intends to add approximately 10 staff members to its Tokyo office over the next two years, with a particular focus on private equity, institutional sales, wealth, and credit. The expansion aims to position Japan as Apollo’s fastest-growing office in the region, according to Matthew Michelini, Apollo’s Singapore-based partner and Asia-Pacific head.
“If I look at the regional leads that we need to hire over the next year or two, most of them we’re looking for will be seated in Japan,” Michelini said. Michelini has been a driving force behind Apollo’s strategy to amplify Asia’s contribution to its global business, an initiative launched three years ago.
Apollo’s Tokyo office currently has 20 to 25 staff, including 10 investment professionals. With plans to grow the team to 30 by 2025, the firm is doubling down on its commitment to the Japanese market. Michelini highlighted that capital allocation to Japan is also expected to rise in the near term.
A Thriving Market for Deals
Japan has emerged as a standout in the Asia-Pacific region’s private equity landscape, accounting for 30% of total deal value in 2023, a significant leap from its historical range of 5% to 10%, according to Bain & Co. This surge is fueled by stronger corporate governance reforms and a weaker yen, making assets more attractive to investors.
The country’s robust dealmaking environment has also drawn rivals such as Warburg Pincus and Carlyle, who are ramping up their hiring efforts in Japan.
Scaling Wealth Management Across Asia
Apollo is not just focusing on Japan; its Asia wealth business, launched two years ago, has already amassed over $5 billion in assets and is set to become a critical growth engine. The firm plans to double its wealth team in the next two years and expand its hiring footprint to South Korea and Australia in 2025, building on existing teams in Hong Kong, Singapore, and Japan.
In December, Apollo hired Diane Poon from KKR to strengthen its wealth team in Singapore. Michelini noted that the firm is positioning itself for broader regional growth: “We are aligning our wealth business to capture the increasing appetite for diversified investments across Asia.”
Strategic Moves and Ambitions
Japan’s appeal extends beyond private equity. Apollo is reportedly one of several firms approached by Seven & i Holdings (3382.T) to participate in a potential buyout of the retailer, a deal that could become the world’s largest-ever management buyout. While the firm has declined to comment on its involvement, its interest in such high-profile opportunities underscores its ambitions in the region.
Globally, Apollo is on track to more than double its size in the next five years. With $733 billion in assets under management as of Q3 2023, the Nasdaq-listed firm continues to cement its position as a leader in private equity and corporate credit.
The Road Ahead
As Japan takes center stage in Apollo’s Asia strategy, its aggressive expansion plans reflect a broader shift among global investment firms aiming to capitalize on the region’s dynamic growth opportunities. With robust dealmaking prospects and a growing appetite for wealth management solutions, Apollo’s strategic moves are poised to shape the future of investment in Asia.
