Fox Hedge, a roughly $5 billion fund created for Apollo Global Management Inc. is a highly complicated investment vehicle pushing regulated insurance capital that smells like the initiator of the next global financial crisis

 

Apollo’s Fox Hedge Is Taking Financial Wizardry to a New Level

Private capital firms are going to remarkable lengths to squeeze out more returns for their regulated insurance companies.

By Esteban Duarte, Scott Carpenter, and Silas Brown

August 18, 2025 at 12:00 AM EDT

Updated on 

August 18, 2025 at 7:30 AM EDT

Lure of ‘Free Money’ in Secondaries Nears a Mania

By Neil Callanan

August 16, 2025 at 11:53 AM EDT

Demand for secondary funds focused on private markets is soaring, in part because some investors are seizing on an accounting quirk that allows them to buy assets at a discount and then revalue them at par.

It’s “creating this sense that people are just picking up free money, and almost a mania,” Blue Owl Capital Co-Chief Executive Officer Marc Lipschultz said on a call with analysts recently. He said his firm avoids the practice, adding there is still a “great business to be had being a really thoughtful buyer of secondary interest when you have more sellers today than you’ve ever had in the past.”