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Apollo Global Director General Marc Rowan said that a wave of partnerships between alternative managers and big assets will shake Wall Street.
Sorbier of birds provided that large private capital companies would increasingly distribute their investments, such as business buyouts, to traditional asset managers who had prioritized the increase in their customers’ exposure to unlisted assets.
He said companies like Apollo could create co-marqués investment funds or “massive managed accounts” with traditional asset managers who would extend ownership of investors of unreperted assets.
“I see a very good marriage between our industry, our company and the managers of public or traditional assets who, I believe, will reinvent their companies stimulated by competitive forces,” said Rowan when calling the fourth profits Apollo quarter.
For the quarter, Apollo’s adjusted net profit increased by 15% to $ 1.36 billion compared to the previous year. The actions of the company fell 2.8% of intrajournnal exchanges on Tuesday.
Rowan has said that the Credit Manager HPS BlackRock Partners’ acquisition and global infrastructure infrastructure partners should be considered an “alarm clock” to the investment industry.
These megados have reported a need for traditional investment groups to offer private funds, which would lead to greater “convergence” between public and private investment portfolios, he said.
His comments arise while the largest private capital groups in industry, such as Apollo, Blackstone, KKR and Brookfield, have reached their growth to manage money for rich individual investors and, ultimately, savers of savers Ordinary retirement.
Managers predict that they will manage billions of dollars for individual investors in addition to the $ 13 T that the industry manages for institutions.
Traditional asset managers have prioritized investment in unlisted assets, which have higher costs and greater diversification than public procurement. These efforts arise as costs on public funds decrease and investors are increasingly considering public shares and bond portfolios as basic products.
“Our industry and our company will be a supplier of products similar to traditional asset managers while they seek to make their products more competitive given the incredible indexing and correlation indexing,” said Rowan.
Last year, Capital Group – One of the largest asset managers in the world – and KKR launched two private funds co -marked as part of a wider partnership between groups. KKR on Tuesday said Tuesday a little better than the adjusted profits scheduled for its fourth quarter, but its shares have decreased by more than 7% in intraday exchanges after its analyst forecasts slightly remunerated by management fees.
These partnerships between two areas of funding that have been treated for decades as well as separate markets reflect growing loan ties 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 formed loan creation companies with large banks, such as Citigroup and JPMorgan, which have reduced loans due to regulations and capital constraints.
In these partnerships, private capital companies use the species of their investors to finance the loans obtained by large banks. They also made flow arrangements to distribute loans of the loans they come, selling parts to large banks looking for more assets to offer.
In 2024, Apollo created a record of $ 220 billion in debt and had a dozen partnerships with banks to increase its loan capacity.
Rowan said the Trump administration would make banking regulations that forced banking loan activities, release competitiveness.
“Banks will be stronger competitors in what we call direct loans or a small part of our private credit company,” said Rowan of the deregulation thrust. He also predicted “a formidable consolidation of the regional bank” during the Trump administration.
