Two of the founders with some cornerstone investors are selling off shareholdings in Apollo Global Management LLC. This is a clear demonstration on how firms going public makes it easier for investment firms to cash out on their holdings.
When a firm cashes out, it is a sensitive matter between private equity investors as the earnings of fund managers are seen and this is a sore point regarding the interest to be protected when deals work out. There is a big aspect of how fund managers earn and their long-term committment to the firm hinges on their ownership.
The cornerstone investors that are selling off their shares are Abu Dhabi Investment Authority and the California Public Employees' Retirement System or CalPERS. Both have a combined investment of US$1.2 billion in the hedge fund as of 2007. The investors have committed US$203.4 million each for sale in documents filed with the US Securities and Exchange Commission.
The two founders that are also selling off their shares are Marc Rowan and Joshua Harris. Rowan has committed US$120.1 million for the sale while Harris has committed US$60.1 million for the sale.
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