We recently met with Apollo's management We recently met with Apollo Co-Founder Josh Harris and CFO Martin Kelly, who were optimistic about the growth opportunities for the firm and the recurring fee outlook, although they expect meaningful upside in DE (distributable earnings) to take time given seasoning of funds. While it is too early to have a clear view on the potential tax impact to APO and the sector from a tax overhaul, management is keeping a close eye on all potential scenarios (carried interest tax rate, C-corp vs. PTP with lower corp tax, and interest deductibility). While we are raising our PO to $21 and continue to see attractive growth for APO, given valuation and muted DE levels, we maintain our Neutral rating. Post-election outlook for their business Management sees the election outcome (Trump and Republican Congress) to be likely favorable for GDP growth (portfolio company EBITDA trends), with the potential for rising rates and inflation to eventually create some volatility and uncertainty on multiples. In addition, potential de-regulation could create more competition in some areas that the alternative asset managers have expanded into over the last few years, although the team still sees ample opportunity for growth. Potential tax changes a mixed bag There are three primary tax items that could potentially impact APO and the industry. First, the tax rate on carried interest could go higher, which would increase the tax rate on carry for employees and on a portion of the distribution for some unitholders (this has generally been expected at some point, given bi-partisan support). Second, if the corporate tax rate is reduced to 15-20%, this could create an incentive for firms to shift from a partnership structure to a c-corp structure, which would simplify the tax issues and entertain a larger investor base (including possible index inclusion). Finally, if the corporate tax rate