Why Private Assets Are Essential: Masters in Business with Stephanie Drescher - Masters in Business Recap

Podcast: Masters in Business

Published: 2026-01-02

Duration: 57 minutes

Guests: Stephanie Drescher

Summary

Stephanie Drescher from Apollo discusses the strategic importance of integrating private assets into investment portfolios, emphasizing the global trend of democratizing private markets for broader access. She highlights Apollo's investment strategies and the evolving role of private markets in achieving long-term financial goals.

What Happened

Stephanie Drescher, Apollo's Chief Client and Product Development Officer, shared insights into the evolution of Apollo's wealth division, which has been strategically developed under CEO Mark Rowan over the past four to five years. She emphasized that Apollo invests alongside its clients, often being one of the largest stakeholders in the strategies they manage. The firm has committed $1 billion to wealth tech investments, underscoring its dedication to advancing the industry.

Drescher noted the growing integration of private markets into core investment portfolios, moving beyond being mere alternatives to public stocks and bonds. This trend is partly driven by the concentrated performance seen in public markets, such as the S&P 500, which has led investors to reevaluate what constitutes safe or risky investments. The shrinking number of public equities, with the Wilshire 5000 now comprising about 3400 stocks, contrasts with the vast private market, where roughly 90% of companies globally are private.

She highlighted the disparity in private market allocations between institutions and individuals, with institutions averaging over 20%, while individuals have about 3%. Drescher stressed that origination is a critical differentiator in private markets, with Apollo having developed 16 proprietary origination engines over 15 years. The democratization of private markets is a notable global trend, with regulatory moves in Europe and the UK aimed at increasing private market access in retirement plans.

Drescher discussed how Apollo's global wealth business, encompassing private banks, broker dealers, and family offices, operates across EMEA, Asia, and North America. She articulated the importance of maintaining discipline in investment strategies, focusing on purchase price, and targeting mispriced or complex investments to drive returns. This disciplined approach is crucial in navigating both public and private market dynamics.

The conversation also touched on the broader wealth market, which, along with the institutional market, holds about $150 trillion in assets globally. Drescher pointed out the mismatch in most 401(k) plans that have long time horizons yet offer daily liquid solutions, advocating for more alignment between investment horizons and liquidity needs.

Stephanie Drescher discussed the concept of guaranteeing a shared outcome with clients, emphasizing Apollo's strategy of aligning interests through co-investments. This approach ensures that both Apollo and its clients are committed to achieving similar financial objectives, fostering trust and collaboration.

Key Insights