UPDATE 3-Apollo Global shares fall in NYSE debut

* Shares fall 2.1 pct below IPO price

* Puts pressure on Carlyle, Oaktree IPO chances

* Apollo valued lower than peers Blackstone, KKR

* Goldman, JPMorgan, BofA Merrill Lynch lead underwriters

* Trading on NYSE under symbol “APO”
(Updates to other asset managers’ IPO prospects)

By Alina Selyukh and Megan Davies

NEW YORK, March 30 (Reuters) – The shares of private equity
firm Apollo Global Management LLC (APO.N: Quote, Profile, Research) fell in their debut
on the New York Stock Exchange on Wednesday, dampening the
prospects for other alternative asset managers to go public.

Apollo’s $565 million IPO, which valued the company at
close to $7 billion, was seen as setting the tone for other
alternative asset managers such as Carlyle Group [CYL.UL] and
Oaktree Capital Management [OAKCP.UL].

Apollo’s shares fell 2.1 percent in afternoon NYSE trading
to $18.61, off the $19 IPO price. This is in contrast to the
positive signal Apollo was seen as sending to its peer IPO
hopefuls on Tuesday, when it sold more shares than planned and
priced them the top of the proposed range.

“Now investors really are going to turn an icy shoulder to
any other private equity firm that comes to the marketplace,”
said David Menlow, president of IPOfinancial.com.

“They may have priced at the top and (sold more shares),
but it’s the performance of the stock that’s going to call the
shots” for other IPOs in the sector.

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IPO VIEW-After Apollo, the deluge [ID:nN27282211]

GRAPHIC-Apollo ownership http://r.reuters.com/nap78r

FACTBOX-Apollo portfolio companies’ IPOs [ID:nN30188493]

BREAKINGVIEWS-Apollo’s IPO discount [ID:nN22290065]

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Apollo, which was founded by former Drexel Burnham Lambert
banker Leon Black in 1990, follows private equity firms
Blackstone group LP (BX.N: Quote, Profile, Research) and KKR and Co LP (KKR.N: Quote, Profile, Research) in going
public.

Along with a number of other firms and hedge funds, Apollo
missed the first great wave of private equity firms going
public starting in 2007, just before the firm first filed with
U.S. regulators to list shares on a public stock exchange.

A source previously told Reuters Carlyle may file IPO
papers later this year, while other sources have said bankers
are holding discussions with Oaktree about going public.

VALUATION COMPARISON

Apollo, valued at nearly $7 billion by the IPO, is dwarfed
by KKR which has a market capitalization of nearly $12 billion
and Blackstone which is valued at about $21 billion.

Blackstone trades at nearly 15 times its 2010 economic net
income and KKR trades at about six times its 2010 numbers,
according to Reuters calculations from Tuesday’s market close
price.

Apollo’s IPO priced it at about 5.8 times its 2010 adjusted
economic net income, according to Reuters calculations.

“For Apollo and KKR both, their fortunes are tied directly
to the state of the private equity market,” said Greg Warren,
senior stock analyst at Morningstar who follows Blackstone.

He added that private equity remains “somewhat hamstrung
from the heydays.”

Blackstone shares were slightly up 0.1 percent to $18.42,
while KKR shares slipped 1.8 percent to $17.10. They have risen
30 percent and 20 percent, respectively, this year.

“(Blackstone) is bigger, more diversified, they are in
other businesses that the other two aren’t,” said one financial
analyst who asked not to be quoted.

“For Apollo more specifically, given their investment
approach, it seems their prospects for deal flow seemingly are
not as compelling as a KKR or a Blackstone.”

Apollo has assets under management of $67.6 billion, which
include investments in companies such as real estate company
Realogy and casino operator Caesars Entertainment, which
canceled IPO in November, citing difficult market conditions.

Goldman Sachs Group Inc (GS.N: Quote, Profile, Research), JPMorgan Chase & Co (JPM.N: Quote, Profile, Research)
and Bank of America Merrill Lynch (BAC.N: Quote, Profile, Research) led the underwriters
on the Apollo IPO.
(Reporting by Alina Selyukh and Megan Davies; editing by Dave
Zimmerman, Tim Dobbyn and Andre Grenon)

UPDATE 3-Apollo Global shares fall in NYSE debut