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Marc Rowan, Managing Director of Apollo Global Management, says that a wave of partnerships between alternatives and large asset management managers will shake Wall Street.
rowan predicted that large private capital companies, such as B. Corporate orders would increasingly distribute conventional asset managers who had prioritized the commitment of their customers on non -listed assets.
He said company how Apollo Co-Branded investment funds or “massive managed accounts” could create with conventional asset managers that would expand investors’ ownership of non-listed assets.
“I see a very good marriage between our industry, our company and the public or traditional asset management managers, of which I believe they will reinvent their business,” said Rowan during Apollo’s fourth quarter.
For the quarter, the adjusted net income of Apollo rose 15 percent to $ 1.36 billion compared to the previous year. The company’s shares closed 2.7 percent lower on Tuesday.
According to Rowan, Blackrock should be accepted as a “wake -up call” to the investment industry by taking over the private loan manager HPS Investment Partner and the infrastructure group Global Infrastructure Partners.
These megadeals have signaled the need for traditional investment groups to offer private funds, which would lead to a stronger “convergence” between public and private investment portfolios, he said.
His comments are the largest private capital groups in the industry such as Apollo, Blackstone, KKR and Brookfield have overthrown their growth in the management of money for wealthy individual investors and ultimately ordinary pensioners.
Managers assume that they manage billions in addition to the 13 -TN dollars that manage the industry for institutions.
Traditional asset managers have prioritized that they carry in non -listed assets in non -listed assets and higher diversification than public markets. These efforts come when fees for public funds fall and investors are increasingly considering public stock and bond portfolios as raw material products.
“Our industry and our company will be a supplier of products that are similar to traditional asset managers because they make their products more competitive given the incredible indexing and correlation,” said Rowan.
Last year, Capital Group-Einer of the world’s largest asset managers and KKR started two private funds as part of a wider partnership between the groups. On Tuesday, KKR reported slightly better than the forecast adjusted winnings for his fourth quarter, but her shares closed 8.5 percent lower after the forecasts of the analysts were slightly missed.
Such partnerships between two financial areas that have been treated as different markets for decades reflect the increasing loans between private capital groups and the wider banking system.
Since the collapse of Silicon Valley Bank and Credit Suisse in 2023, private capital groups have founded loans with large banks such as Citigroup and JPMorgan, which restricted the loans based on regulations and capital restrictions.
In these partnerships, private capital companies use their investors’ money to finance loans that were collected by the large banks. They also closed river arrangements to distribute the windows of the loans they come and sell the parts to large banks to search for assets with a higher back.
In 2024 Apollo set up $ 220 billion and had a dozen partnerships with banks to increase credit capacity.
Rowan said that the Trump administration would attribute bank regulations that had restricted the banks’ credit transactions and revive competitiveness.
“Banks will be greater competitors in what we describe as direct lending or a small part of our private loan business,” said Rowan from the Deregulation boost. During the Trump administration, he also predicted “enormous consolidation of the regional banking business”.
