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Executive director Apollo Global Management Marc Rowan says that a wave of partnerships between alternative and large property managers will shake Wall Street.
Rowan He predicted that large private capital companies would increasingly arrange their investments, such as corporate purchases, traditional property managers who prioritized priority increased their clients without property.
Said companies like Apollo They could create investment funds that are branded or “mass -operated accounts” with traditional property managers that would expand ownership of investors’ property.
“I see a very good marriage between our industry, our businesses and public or traditional property managers that I believe will invent their companies that have encouraged competitive forces,” Rowan said during Apoll’s invitation in the fourth quarter.
For the quarter, Apoll’s custom net income increased by 15 percent, to $ 1.36 billion compared to the year earlier.
Rowan said that Blackrock’s acquisition of a private credit manager of HPS Investment Partners and Infrastructure Group Global Infrastructure Partners should be understood as a “awake call” to the investment industry.
These megadeali signaled the need for traditional investment groups to offer private funds, which would lead to a higher “convergence” between public and private investment portfolio, he said.
His comments come because the largest industrial private capital groups such as Apollo, Blackstone, Kkr -ai Brookfield achieved their growth in the management of money for rich individual investors and, ultimately, usual pension savings.
The executives predict that they will manage the dollar trillion for individual investors, except for the 13 -storey industry managing for institutions.
Traditional property managers have in priority invested in undoubted property, which carry greater fees and greater diversification than public markets. These efforts come because public funds are dropped, and investors are increasingly viewing the portfolio of public shares and bonds as commodity products.
“Our industry and our company will be a supplier of products similar to traditional property managers because they strive to make their products more competitive with regard to the incredible amount of indexation and correlation,” Rowan said.
Such partnerships between two areas of finances that have been treated for decades as different markets reflect increasing bold connections between groups of private capital and a wider banking system.
From the collapse of the Silician Valley and Credit Suisse 2023, private capital groups formed ventures for loan with large banks, such as Citigroup and JPMORGAN, which reduced borrowing due to regulations and capital restrictions.
In these partnerships, private capital companies use the money of their investor to finance the loans received by large banks. They also formed flow arrangements to distribute the slopes of the loans they originate, selling pieces to large banks in search of more yield assets.
In 2024, Apollo performed a record $ 220 billion in debt and has a dozen debt distribution partnerships to large banks.
Rowan said Trump’s administration would reciprocate bank regulations that have limited their loans, reviving competitiveness.
“Banks will be stronger competitors in what we call direct borrowing or a small part of our private credit,” Rowan said of deregulatory pressure. He also predicted “huge consolidation of regional banking” during Trump administration.
