(Bloomberg) — Apollo Global Management Inc. CEO Marc Rowan is betting $431 million of the company’s stock and could eventually sell it as he seeks access to some of his wealth tied to the company .
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Entities affiliated with Rowan have entered into a so-called prepaid variable forward contract for 2.5 million shares, or about 7% of his stake in the company, according to a filing on Monday. The stock of shares represents less than 0.5% of Apollo’s total outstanding.
The contracts – which essentially trigger a future sale – can help participants access cash while deferring a tax liability and retaining their voting rights until the deals are completed. The plans typically give shareholders most of their money up front and may include terms that allow a participant to avoid the sale by paying cash.
Rowan, 62, is making money from some of his stocks as Apollo joins the S&P 500, the world’s most watched stock gauge. That was “a unique time to enter into the contracts given the expected increase in trading volumes following such an announcement,” the company said in the filing. Rowan “has no current intention to sell the remaining company shares he ultimately owns and has entered into a one-year lock-up agreement on all such company shares,” the report 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 risen to $733 billion and shares have more than tripled. It hit an all-time high on Friday when it joined the index.
He has refrained from selling in recent years and is now Apollo’s fourth-largest shareholder, with a roughly 6% stake worth nearly $6 billion, according to data compiled by Bloomberg. That excludes his stake in Apollo’s funds.
In total, he has a fortune of $11.3 billion, according to the Bloomberg Billionaires Index.
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