Blackstone Inc. president and chief operating officer Jonathan Gray, from left, State Street Corp. chief executive officer Ron O’Hanley, Morgan Stanley chief executive officer Ted Pick, Apollo Global Management chief executive officer Mark Rowan LLC, and David Solomon, Chief Executive Officer of Goldman Sachs Group Inc. during the Global Financial Leaders Investment Summit, Tuesday, Nov. 19, 2024, in Hong Kong, China.
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Apollo Global Management CEO Mark Rowan said at the Global Financial Leaders Investment Summit in Hong Kong that an “industrial renaissance” in the U.S. is driving demand for capital.
“There is a huge demand for capital, [including through debt and equity] … What is happening is nothing short of extraordinary,” Rowan said during a panel discussion Tuesday.
The asset manager said this demand has been supported by large-scale government spending, particularly in infrastructure, the semiconductor industry and projects under the Inflation Reduction Act. Reportedly running for the post of Treasury Secretary under President-elect Donald Trump.
“What we’re seeing is that this incredible demand for capital is happening against the backdrop of a US government that’s running a significant deficit. And so the business of raising capital, I think it’s It will be a good business.”
Industry policies, including the CHIPS and Science Act and the 2021 infrastructure legislation, guarantee billions in spending.
Rowan added that the United States has been the largest recipient of foreign direct investment for the past three years and is expected to remain at the top this year.
Rowan and other panelists also identified energy and data centers — needed for artificial intelligence and digitalization — as growth areas requiring more capital.
Blackstone president and COO Jonathan Gray told the panel that data centers are the biggest theme with the company throughout his firm. Billions of jobs on their development.
“We’re doing it in equity, we’re financing it… it’s a space we’re very passionate about, and we’ll continue to be involved as it relates to digital infrastructure.”
Fundraising and M&A recovery
Other panelists at the summit, hosted by the Hong Kong Monetary Authority, said capital growth was well-positioned to recover from the recent slowdown.
According to David Solomon, chairman and CEO of Goldman Sachs, capital-raising activity peaked in 2020 and 2021 amid largely covid-era triggers, but later the war in Ukraine, inflationary pressures and Strict regulation by the Federal Trade Commission.
Solomon said activity has increased recently as things return to normal, along with expectations of friendlier dealmaking regulation from the FTC under the incoming Donald Trump administration.
While inflationary backdrops and other risks remain in the current environment, Morgan Stanley CEO Ted Pick said the consumer and corporate community are “broadly, in good shape” as the economy continues to grow.
“The environment has been one where, if you’re in the business of capital allocation, it’s been very good,” he said, adding that the group was now getting ready to go into “capital raising mode”. is
“He is. [the] Characteristic of a growing and thriving economy, this is where classic underwriting and mergers and acquisitions businesses take hold,” he said.
Solomon predicts that these trends will see “much stronger” capital raising and M&A activity in 2025.
