The Legends of Money

The Legends of Money

Now you understand why KKR and Apollo are peerless in the world of private equity business. They shared data with the SEC and the world got a window into the the most exclusive club in this world. A $1 billion investment in Apollo, on formation, would be worth $32 Trillion (with T) today. Source.

The SEC was shown a version of Apollo’s annual report which said it had generated an annual IRR of 39.0% over the past 30 years. At that rate, a $1 billion investment would be worth $20 TRILLION over 30 years or roughly the GDP of the US.

The SEC was also shown a of KKR’s annual report, which said it had generated an annual IRR of 25.6% over the past 45 years. At that rate, a $1 billion investment would be worth $32 TRILLION over 45 years or almost half of the GDP of planet earth.

Update: apologies that I did not give the meaning of IRR. IRR means an internal rate of returns. Think of it as an annual rate of growth and investment generated.

 

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