Private Equity Giants Insurance Strategy

 

Circa 30 % - 40 % of the capital under management of the leading private equity firms Blackstone, KKR, Apollo, Carlyle is so called perpetual capital in the sense that it consists of insurance premiums fees from Blackstone, KKR, Apollo, Carlyle insurance businesses, according to Wolfteam Ltd.'s calculations

Such insurance capital provides for long-term capital appreciation opportunities. Blackstone, KKR, Apollo, Carlyle invest the insurance premium fees from their insurance lines in their private equity, real estate and credit and lending asset management businesses for long-term gains.

The US stock market seems to imply that Blackstone, KKR, Apollo, Carlyle will realize large returns from their investments as Blackstone, KKR, Apollo, Carlyle are trading at large, premium valuation multiples like Price/Earnings, Price/Sales, Price/Book ratios.