Apollo Global Management Inc. Chief Govt Officer Marc Rowan mentioned the very best buyers function in locations equivalent to Singapore and the United Arab Emirates, contending US establishments have grow to be too targeted on benchmarks.
Initially of his profession, Rowan “thought the single best investors in the world were in the US,” he mentioned in an interview Tuesday with David Rubenstein on the Financial Membership of Washington, D.C. “That’s no longer the case.”
Apollo and different non-public fairness companies have turned to the Center East, Asia and rich people to boost funds, as institutional buyers stay over-allocated to the asset class. Deal-making evaporated final yr on account of increased rates of interest. In flip, distributions to institutional buyers fell, protecting them from committing cash to new funds.
Rowan mentioned Tuesday that institutional buyers in each the US and Europe have grow to be beholden to benchmarks. “Benchmarks force you to do the same thing that everyone else is doing because you don’t want to be outside the norm,” he mentioned.
Furthermore, he mentioned, “Family offices are where all the great things in the investment marketplace are happening today.”
For its half, Apollo fell in need of a $25 billion goal for its tenth flagship non-public fairness fund final yr, elevating about $20 billion. The agency has pushed to faucet rich people with quite a lot of methods, together with its flagship fairness alternative technique referred to as Apollo Aligned Alternate options.
The Apollo CEO’s profile has risen not too long ago past the non-public fairness universe. He’s spoken out in assist of Israel, demanding the resignation of leaders of his alma mater, the College of Pennsylvania, over their responses to allegations of antisemitism on campus.
Rowan instructed Rubenstein, who hosts a present on Bloomberg TV, that he’d serve if the president of the US requested him to chair the Federal Reserve, grow to be Secretary Treasury or take one other place. He mentioned he doesn’t establish as a Republican or Democrat.
“We are in a very confusing time politically, but at the same time, when the dust settles from this election, something tells me we will need as a country to turn our attention to the fiscal disorder of our house,” he mentioned.
The US financial system is in “reasonable shape” as a result of must construct infrastructure, semiconductor vegetation and electrical automobile manufacturing, which can create jobs, Rowan mentioned. The monetary markets “march to the beat of their own drummer,” pushed by the Fed, liquidity, rates of interest and cash stream, he mentioned.
“We can get financial market corrections without corrections in the real economy,” he mentioned. “I think that’s where we’re heading.”
