Does Apollo Investment's Management Team Have Skin-in-the-Game?
By Alan Brochstein, CFA:
I recently suggested that Business Development Companies (BDCs) merit further investigation for income-oriented investors. Given the complexity of some of the management structures as well as the risky nature of the underlying investments made, investors interested in this niche should pay careful attention to the alignment of interests between management and shareholders. I had indicated that I would follow up with a review of this dynamic if readers were interested, and that was overwhelmingly the case. Therefore, I am reviewing each of the 14 dividend-paying BDCs I had highlighted in order to assess the amount of "skin-in-the-game".After recently reviewing Ares Capital (ARCC), the largest of the group, I am following with Apollo Investment (AINV), which has a market cap of $1.6 billion. AINV has traded publicly since 2004. Click to enlarge:The company filed its annual proxy on June 21st. As is the case for many BDCs, management isComplete Story »