Apollo Global Management CEO & Co-Founder Marc Rowan Talks Increasing Assets Under Management
Oct 2, 2024
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Marc Rowan, CEO and Co-Founder of Apollo Global Management, dives into the strategic shift towards private markets and infrastructure funding. He emphasizes the urgency for capital in energy transition projects and the evolving nature of investment-grade deals. Rowan also discusses the implication of the partnership with Citi, indicating a future of cooperation in finance rather than competition. Lastly, he sheds light on the changing perceptions of risk in private versus public markets and the need for adaptive strategies in today's economic landscape.
Marc Rowan emphasizes the growing trend of companies turning to private market financing due to restrictive public bond markets.
The podcast highlights the evolving investment landscape where private investments are increasingly perceived as safer alternatives to public equities.
Deep dives
AI Enhancements in Business Performance
Integrating AI technology into existing business architectures can significantly enhance performance. Intel’s AI accelerators have been shown to improve streaming performance for companies like Netflix by as much as three and a half times, with these accelerators outperforming competitors by 30%. This development illustrates the potential for businesses to leverage AI for operational benefits without overhauling their current systems. Utilizing trusted architectures for AI implementation can lead to substantial performance breakthroughs.
Shifts in Financing Strategies
An increasing number of companies are turning to private market financing as public bond markets become more restricted and less innovative. Businesses now seek unique financing solutions that aren't available through traditional public markets, particularly for complex, long-dated projects in infrastructure and energy transition. For example, investments in major companies like AT&T and Intel exemplify how private financing allows organizations to achieve objectives beyond what public markets can offer. This trend indicates a shift toward private investment grade options, which are anticipated to play a critical role in future financing landscapes.
Redefining Investment Dynamics
The landscape of investing has evolved, with private investments increasingly being viewed as safe alternatives to public equities. A significant decrease in the number of public companies, from 8,000 to around 4,000, suggests a growing preference for private ownership among companies, as many are opting to remain private rather than go public. As investors become more comfortable with private investments and their potential for strong returns, the distinction between public and private equity is expected to blur, ultimately leading to a more integrated investing approach. This transformation challenges long-held beliefs about the safety and risk associated with different types of investments.
Apollo Global Management CEO & Co-Founder Marc Rowan discusses increasing assets under management. Rowan speaks with Bloomberg's Jonathan Ferro, Lisa Abramowicz and Annmarie Hordern.