If you’re searching for strong, long-term investments that deliver income and growth, look no further than the world’s top alternative asset managers: Brookfield, Ares, Apollo, and KKR.
These global giants quietly manage trillions of dollars in private equity, credit, real estate, and infrastructure—and they’ve become essential players in modern finance. For retirees and everyday investors alike, understanding these companies isn’t just smart—it can be highly rewarding.
But what makes each of these firms different? How do their business models compare? And how can you invest in them with confidence?
Let’s break it down.
What Is an Alternative Asset Manager?
Before we dive in, let’s clarify what these firms do.
Unlike traditional investment companies that focus on stocks and bonds, alternative asset managers focus on non-traditional assets such as:
- Private equity (buying and improving private businesses)
- Private credit (lending to companies outside of traditional banks)
- Real estate (commercial buildings, apartments, logistics)
- Infrastructure (energy, toll roads, data centers, renewables)
These are high-demand, often inflation-resistant assets. Institutions like pension funds and sovereign wealth funds pour billions into these firms to manage their capital. As individual investors, we can invest in these managers directly—and ride the wave of institutional demand alongside them.
Brookfield vs. Ares vs. Apollo vs. KKR
A Side-by-Side Comparison
Let’s take a look at what makes each firm unique.
Brookfield Asset Management (BAM)
- Headquarters: Toronto, Canada
- Assets Under Management (AUM): $900+ billion
- Focus: Real assets – infrastructure, renewable energy, real estate, private equity
- Business Model: Brookfield focuses on “real assets” that produce steady cash flows, like toll roads, power plants, office buildings, and pipelines. It earns management fees from institutional clients and invests alongside them with its own capital.
- What Makes It Unique:
- Global leader in infrastructure and renewables
- Strong alignment with long-term trends like decarbonization and digitization
- Fee-based, inflation-linked income streams
Why Investors Like It:
Brookfield combines growth, stability, and dividend income. It’s like owning the landlord, utility company, and power grid operator—all in one. It’s also less volatile than pure private equity firms.
Ares Management Corporation (ARES)
- Headquarters: Los Angeles, CA
- Assets Under Management (AUM): $430+ billion
- Focus: Credit, private equity, real estate, and secondaries
- Business Model: Ares is best known for its private credit platform, lending to middle-market businesses that banks can’t or won’t finance. It earns interest income and fees on its managed capital.
- What Makes It Unique:
- Leader in private credit (a booming alternative to traditional loans)
- Strong focus on income-generating strategies
- Well-diversified across credit, equity, and real estate
Why Investors Like It:
Ares is especially attractive to income-focused investors. As interest in private credit surges, Ares is positioned to benefit from tighter bank lending and growing institutional demand.
Apollo Global Management (APO)
- Headquarters: New York, NY
- Assets Under Management (AUM): $650+ billion
- Focus: Credit, private equity, retirement services (through Athene)
- Business Model: Apollo is a hybrid asset manager and insurer. Through its subsidiary Athene, it gathers retirement and annuity assets, then reinvests them into private credit and other alternative strategies. This model creates a massive pool of long-duration capital.
- What Makes It Unique:
- Integrated asset manager + insurer
- Deep expertise in credit and fixed income
- Focused on generating high yields in a conservative manner
Why Investors Like It:
Apollo has created a powerful “flywheel” of permanent capital from Athene. Its model is especially attractive in a rising interest rate environment, where credit yields increase. It’s also among the most innovative of the four.
KKR & Co. Inc. (KKR)
- Headquarters: New York, NY
- Assets Under Management (AUM): $550+ billion
- Focus: Private equity, real estate, infrastructure, credit, insurance
- Business Model: KKR is a diversified alternative asset manager that earns fees on its assets and co-invests with clients. Like Apollo, it has also entered the insurance space, acquiring Global Atlantic, which provides permanent capital to manage.
- What Makes It Unique:
- Long history in private equity (pioneers of the leveraged buyout)
- Broad diversification and global scale
- Increasing focus on insurance, infrastructure, and credit
Why Investors Like It:
KKR is like a Swiss Army knife of private markets. It’s aggressive, innovative, and well-positioned across multiple asset classes. It also returns capital efficiently through buybacks and dividends.
How Do They Make Money?
All four firms follow a “two-engine” business model:
- Management Fees – Charged on the money they manage for clients (predictable, recurring revenue)
- Performance Fees / Carried Interest – A share of profits when investments do well (higher but less predictable)
They also invest their own balance sheet capital, which gives them skin in the game—and aligns them with shareholders.
Investing in These Firms: What to Know
All four companies are publicly traded and easy to buy through your brokerage account—just like any other stock.
Here are their tickers:
- Brookfield Asset Management – BAM
- Ares Management – ARES
- Apollo Global Management – APO
- KKR & Co. Inc. – KKR
Most pay dividends, and many have grown those dividends over time. These are not speculative startups—they’re established firms with strong balance sheets and long-term contracts generating recurring income.
Risk factors to keep in mind:
- Their earnings can be affected by interest rates, economic conditions, and market cycles.
- Performance fees are variable—especially in volatile markets.
- Insurance exposure (for Apollo and KKR) adds complexity.
But over time, investors have been rewarded handsomely. These firms know how to turn institutional demand into steady profits—and now individual investors can share in the rewards.
Real-Life Example: Riding with the Billionaires
If you had invested $10,000 in ARES five years ago, your investment would be worth over $40,000 today, with reinvested dividends. Similarly, Brookfield (BAM) has compounded investor wealth at 15%+ annually for decadesacross its family of companies.
Why? Because these firms don’t just invest money—they control capital, partner with governments and mega-institutions, and operate in sectors most investors can’t access directly.
By owning shares in these managers, you’re essentially partnering with billionaires who know how to create value over the long haul.
Which One Is Right for You?
It depends on your priorities:
- ✅ Want income and safety? Start with Ares (ARES) or Brookfield (BAM)
- ✅ Want faster growth and innovation? Consider Apollo (APO) or KKR (KKR)
- ✅ Prefer real assets and infrastructure? Brookfield is unmatched
- ✅ Fascinated by private credit? Ares and Apollo are top-tier
- ✅ Want a bit of everything? Build a mini portfolio of all four
These companies often complement each other, not compete directly. A balanced mix may provide both income and growth over time.
Final Thoughts
Brookfield, Ares, Apollo, and KKR are no longer just for Wall Street insiders. Today, everyday investors can buy into these financial powerhouses and benefit from the same trends that fuel institutional portfolios: private credit, infrastructure, alternative real estate, and private equity.
With strong dividend profiles, long-term contracts, and global reach, they offer a rare mix of stability and performance—a perfect pairing for the modern retirement portfolio.
Want to dive deeper into how to build a high-yield portfolio with asset managers and private equity firms? Check out my book:
The 15% Solution: Invest With the Billionaires in Private Equity and Asset Managers – available now on Amazon in paperback and eBook formats.
Disclaimer: This content is for informational purposes only and should not be considered investment advice. Always consult a licensed financial advisor before making investment decisions. Investing involves risk, including the risk of loss. Past performance does not guarantee future results.