Marc Rowan, CEO of Apollo Global Management Company, said that the wave of partnership between alternative and large asset managers will shake Wall Street.
Rowan predicts that large private capital companies will increasingly distribute their investment (such as company acquisitions) to traditional asset managers, which have given priority to increasing customers' exposure to unsolved assets.
He said that companies like Apollo can jointly create investment funds or "large -scale custody accounts" with traditional asset managers, thereby expanding investors' ownership of undisturbed assets.
Ron said at the fourth quarter of Apollo's revenue conference call: "I think our industry, the marriage between the company and the public or traditional asset manager is very good.
In this quarter, Apollo's adjusted net income increased by 15 % over the same period last year to $ 1.36 billion.
Luo Wen said that BlackRock's acquisition of HPS investment partners and infrastructure group global infrastructure partners should be used as "awakening calls" for the investment industry.
He said that these large giants indicate that traditional investment groups provide private funds, which will lead to greater "integration" between public and private investment portfolios.
His comments are because of the industry's largest private capital group, such as Apollo, Blackstone, KKR and Brookfield. Their growth has incorporated their growth into wealthy individual investors and the final general retired savings.
Executives predict that in addition to the industry's $ 13 of agencies, they will also manage trillions of dollars for individual investors.
Traditional asset managers have given priority to investing in investment without listing, rather than the cost of listed assets than the public market. These efforts are carried out as the cost of public funds decreases. Investors are increasingly regarding the portfolio of public stocks and bond investment as commodity products.
ROWAN said: "Our industry and company will become a supplier of products similar to traditional asset managers, because the number of indexes and correlations is not enough, they try to make the products more competitive."
For decades, this partnership between the two financial sector has been regarded as a different market that reflects the increase in loan relationships between private capital groups and a wider banking system.
Since the collapse of Silicon Valley Bank and Credit Switzerland in 2023, private capital groups have formed loan initiative with large banks (such as Citi Group and JP Morgan Chase). This has reduced loans due to regulations and capital restrictions.
Among these partnerships, private capital companies use their investors' cash to provide funds for loans provided by large banks. They also formed a flow setting to distribute the slices of loans they initiated and sold them to large banks to find higher assets.
In 2024, Apollo set out a record of $ 220 billion in debt, and established twelve partnerships to allocate debts to large banks.
Luo Wen said that the Trump administration will revoke banking regulations restricting its loan business and restoring competitiveness.
"Banks will become more powerful competitors in a small part of our so -called direct loan or a small part of our private credit business," said Rowan, which abandoned the control. He also predicted the "huge merger of regional banking business" during the Trump administration.