Apollo Management treats CalPERS as Vegas whales

Apollo Management will cut $125 million in fees for CalPERS (California Public Employees' Retirement System) over the next five years is similar to kicking back a whale $125 million after losing billions at Caesars Palace in Las Vegas. CalPERS is a whale (high roller) in casino terms, and as suckers, they get thrown a bone as a good customer/loser by Harrah's owner, Apollo Management CEO Leon Black. Harrah’s has pushed back much of its 20 billion dollar debt to 2015 instead of the immediate future. Apollo Management and TPG bought time to pay back CalPERS and CalSTRS (California State Teachers' Retirement System), but at what cost? CalPERS/CalSTRS is on the hook for much of the debt (around $8 billion), but exactly how much did these pension funds lose with the restucturing of Harrah’s debt? It is known about the $475 million loss CalPERS suffered with 9% ownership of Apollo Management, but the potential of these public pension funds to lose $8 billion in 2015 should be alarming. The media is concerned with $100,000 pension clubs while it ignores Leon Black’s and TPG’s possible looting of California totaling billions!

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