(Bloomberg) — Apollo Global Management Inc. Chief Executive Officer Marc Rowan is putting up $431 million of the company’s stock, and could end up selling it, as he looks to access some of his wealth tied to the firm.
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Entities affiliated with Rowan entered into a so-called prepaid variable forward contract for 2.5 million shares, or about 7% of his holding in the company, according to a regulatory filing on Monday. The slug of stock represents less than 0.5% of Apollo’s total outstanding.
The contracts — essentially putting a future sale in motion — can help participants access cash while putting off a tax liability and preserving their voting rights until the deals are complete. The arrangements typically give shareholders most of their money up front and may include terms letting a participant avert the sale by settling in cash.
Rowan, 62, is monetizing some of his shares as Apollo joins the S&P 500, the world’s most-watched equity gauge. That presented “a unique time to enter into the contracts given the expected increase in trading volumes following such announcement,” the company said in the filing. Rowan “has no current intention to sell the remaining company shares beneficially owned by him and has entered into a one-year lock-up agreement covering all such company shares,” it said.
Rowan helped co-found Apollo 34 years ago and took over as CEO in 2021, ushering in an era of relative stability and prosperity after a tumultuous power struggle. During his tenure, assets have soared to $733 billion, and its stock has more than tripled. It touched a record high on Friday as it joined the index.
Abstaining from sales in the past few years, he now ranks as the fourth-largest Apollo shareholder, with a stake of about 6% that’s worth almost $6 billion, according to data compiled by Bloomberg. That excludes his stakes in Apollo’s funds.
Altogether, he commands an $11.3 billion fortune, according to the Bloomberg Billionaires Index.
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