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Mark Rawan, CEO of Apollo Global Management, says a wave of partnerships between the managers of the alternative and adult assets will shake Wall Street.
Rowan It has predicted that large private capital companies will increase their investments increasingly, such as the purchase of companies, to traditional asset managers who have given priority to increasing their customers' exposure to unlikely assets.
Corporates said like Apollo It can create joint investment funds or “huge managed accounts” with traditional asset managers who would expand investors' ownership of the uninterrupted assets.
“I see a very good marriage between our industry and our company and the general or traditional asset managers who I think will re -invent their business stimulated by competitive forces,” Rowan said during the invitation of the fourth quarter profits in Apollo.
For a quarter, the average net income from Apollo increased by 15 percent to $ 1.36 billion from the previous year.
Rowan said that the Blackrock acquisition of HPS Investment Partners and the infrastructure infrastructure group should be considered an “vigilance invitation” for the investment industry.
He said that this Megadeals indicated the need for traditional investment groups to provide special funds, which will lead to a greater “rapprochement” between public and private investment portfolios.
His comments come as the largest special capital collection in this field such as APollo, BlackStone, KKR and Bookfield, and have raised their growth to money management for wealthy investors, and ultimately, regular retirement savings.
Executive managers expect that they will manage trillion dollars for individual investors, in addition to the 13 -run -running trails of institutions.
Traditional asset managers have given priority to investing in unlike assets, which bear higher fees and larger diversification than public markets. These efforts come with a decrease in fees on public funds, and investors are increasingly portfolios and bonds as a commodity products.
“Our industry and our company will be a supplier of similar products to traditional asset managers, as they seek to make their products more competitive due to the amount of indexing and amazing relationship.”
Such partnerships between two fields of funding that have been dealt with for decades as distinct markets that reflect the increasing relations between private capital groups and the wider banking system.
Since the collapse of Silicon Valley and Credit Suisse in 2023, private capital groups have formed loans to create loans with large banks, such as Citigroup and JPMorgan, which reduced lending due to capitalist regulations and restrictions.
In these partnerships, private capital companies use their investing money to finance loans that large banks receive. They have also formed flow arrangements to distribute the loan slices that create, and sell the pieces to large banks in search of the higher returns.
In 2024, Apollo established a record $ 220 billion in debt and has dozens of partnerships to distribute debt to large banks.
Rawan said that the Trump administration will decline the bank's regulations that restricted their lending business and reviving competitiveness.
“The banks will be stronger competitors in what we call direct lending or a small part of our own credit works,” Rawan said of the motor batch. He also expected “tremendous unification of regional banking services” during the Trump administration.
