When you think about billionaire investors, what comes to mind? Maybe hedge funds, private jets, or exclusive real estate deals. But here’s a secret that’s hiding in plain sight: many of the world’s wealthiest people invest in asset managers—firms like KKR, Apollo, Ares, and Brookfield. These aren’t flashy tech startups or meme stocks. They’re global investment powerhouses that manage trillions of dollars in long-term, income-producing assets like real estate, infrastructure, private credit, and renewable energy.
And the best part? You don’t need to be a billionaire to invest alongside them.
In this post, we’ll explore why some of the richest and smartest investors choose to put their money into these asset management firms—and why you might want to consider doing the same.
What Do Asset Managers Actually Do?
At their core, asset managers help large institutions, governments, and wealthy individuals grow and preserve wealth. They manage “alternative assets” like:
- Private equity (buying and improving companies)
- Real estate (from office buildings to apartment complexes)
- Private credit (lending to companies)
- Infrastructure (roads, power grids, data centers)
- Renewable energy (wind, solar, hydro)
These aren’t everyday investments. They’re often illiquid, complex, and require deep expertise. But they tend to generate steady, long-term returns—often in the high single digits or low double digits. Billionaires love them because they offer predictable income, long holding periods, and growth potential—even in volatile markets.
So how do you, a retail investor, tap into this powerful strategy?
By investing in the asset managers themselves.
Why Investing in the Asset Managers—Not Just Their Funds—Makes Sense
Here’s the simple genius of it: instead of trying to get into one of their exclusive private funds (which often requires millions), you can buy stock in the company.
These companies earn fees on the assets they manage (think: management and performance fees), and as their assets under management (AUM) grow, so does their revenue and profitability.
In other words, by owning stock in a top-tier asset manager, you:
- Get exposure to the growth of alternative assets
- Participate in global mega-trends like infrastructure, renewable energy, and private credit
- Benefit from strong cash flow and shareholder-friendly practices like dividends and buybacks
- Own a piece of what billionaires already trust with their money
Meet the Big Four: KKR, Apollo, Ares, and Brookfield
These firms aren’t just leaders—they’re pioneers. Let’s take a closer look at each one.
1. KKR (Kohlberg Kravis Roberts & Co.)
Assets Under Management: ~$550 billion
Founded: 1976
Headquarters: New York, NY
KKR is one of the original private equity firms, famous for pioneering the leveraged buyout. But today, it’s much more than that. KKR manages assets across private equity, real estate, infrastructure, and credit. They’re known for a disciplined, long-term approach and their ability to improve the businesses they acquire.
Why investors like it: Strong historical returns, a diversified asset base, and a leadership team with deep expertise.
2. Apollo Global Management
Assets Under Management: ~$650 billion
Founded: 1990
Headquarters: New York, NY
Apollo specializes in alternative credit and yield-oriented strategies—lending to businesses that banks often overlook. They also manage real estate and private equity funds. Apollo’s success has been built on generating stable cash flows from less traditional, but highly profitable, investments.
Why investors like it: Income focus, resilience in downturns, and a scalable business model that benefits from rising interest rates.
3. Ares Management Corporation
Assets Under Management: ~$400 billion
Founded: 1997
Headquarters: Los Angeles, CA
Ares is a leading global player in credit, private equity, and real assets. What sets Ares apart is its disciplined risk management and flexible approach. They manage both institutional funds and public vehicles like BDCs (Business Development Companies), making them a household name in income investing.
Why investors like it: Consistent growth, strong dividend track record, and diversified sources of income.
4. Brookfield Asset Management
Assets Under Management: Over $900 billion (combined across its entities)
Founded: 1899
Headquarters: Toronto, Canada
Brookfield is the heavyweight champion in real assets. Their portfolio includes renewable energy, infrastructure, real estate, and private equity. They’ve been global leaders in sustainability and are deeply involved in the energy transition movement.
Why investors like it: Global reach, inflation-protected assets, and a proven history of compounding returns for over a century.
How Have These Companies Performed?
Historically, the “Big Four” have delivered long-term annualized returns in the double digits, often outpacing the broader market. Over the past 10 to 20 years, investors in these firms have benefited from:
- Steady dividend growth
- Rising AUM and fee income
- Shareholder-friendly policies like buybacks
- Exposure to long-term macro trends
Even during market downturns, these companies often prove more resilient than others, thanks to their focus on essential services (like infrastructure) and stable cash-generating assets.
Why Billionaires Love Asset Managers
So, why do the ultra-wealthy flock to these firms?
- Diversification: Asset managers give access to investments that don’t move with the stock market.
- Stability: Assets like toll roads, power plants, and commercial lending produce dependable cash flow.
- Compounding: Reinvested profits and fees can snowball over decades.
- Tax advantages: Many alternative investments are structured to be tax-efficient.
- Global reach: These firms operate across continents, giving billionaires exposure to emerging markets and global opportunities.
But What About Everyday Investors?
Here’s the good news: you don’t need millions to follow the same playbook.
Most of these firms are publicly traded and available on stock exchanges under tickers like:
- KKR – NYSE: KKR
- Apollo – NYSE: APO
- Ares – NYSE: ARES
- Brookfield – NYSE: BAM (plus spin-offs like BEP for renewables, BIP for infrastructure)
You can buy shares through any brokerage account, earn dividends, and benefit from long-term capital appreciation—just like the big players do.
If you’re building a retirement portfolio, these companies offer a rare combination of income, growth, and diversification. And for investors with a long-term view, they may be one of the smartest “set-it-and-forget-it” investments you can make.
Final Thoughts
Billionaires invest in asset managers because they understand something vital: real wealth is built with patience, diversification, and ownership of long-term, income-producing assets. Firms like KKR, Apollo, Ares, and Brookfield have the expertise, global networks, and track records to deliver consistent returns over time.
And thanks to public markets, you can invest right alongside them.
This post is an excerpt from my book: The 15% Solution: Invest With the Billionaires in Private Equity and Asset Managers, available now on Amazon in Kindle or paperback format.
Ready to take your investing to the next level? You don’t have to be a billionaire. You just have to think like one.
Disclaimer: For Educational Purposes Only
The content on this website is intended for general educational use and should not be considered personalized financial, legal, or tax advice. Always consult a qualified professional before making financial decisions. All investments carry risk, and past performance is not a guarantee of future results. The author assumes no liability for actions taken based on this content.