Fed decision day in America. In your view, what does getting policy right look like. >> I don't know if there's a right answer here.Um, you know, internally at Apollo, we do not think there's a need for a cut. There's nothing in the data that tells us, but at the same time, I understand the decision. But longer term, I'm not sure it really matters.I mean, if you think about what's happening, the market is ultimately determining the outcome. We have governments around the world who are borrowing record amoun ...

Core Insights - The AI boom is initiating a significant construction surge, with financing needs becoming increasingly apparent [1][2] - Companies traditionally operating with minimal assets are transitioning to asset-heavy models, exemplified by Meta's substantial increase in debt [1][3] Group 1: Financing Trends - There is a massive and sustained increase in borrowing, transforming public spending into private credit lending opportunities [2] - Apollo Asset Management is focusing on sectors such as data centers, defense spending, and energy transition, which require extensive long-term financing [3] Group 2: Debt and Investment Quality - Despite the high demand for assets, there are concerns regarding the rising debt levels and whether companies are over-leveraging [4] - Companies involved in these projects generally maintain low net debt to EBITDA ratios, indicating a solid financial foundation as they transition to debt financing [5] Group 3: Investment Strategy - The complexity and scale of these investments necessitate high-quality underwriting, with Apollo leveraging a large investment team to assess asset classes effectively [6] - The AI revolution presents a multitrillion-dollar lending opportunity, but only the most capable private credit firms will be able to manage the associated risks [7]

Summary of Blue Owl Capital Conference Call Company Overview - **Company**: Blue Owl Capital (NYSE: OWL) - **Industry**: Alternative Asset Management - **Assets Under Management**: Nearly $300 billion - **Specialization**: Private credit, GP solutions, and real assets Key Priorities and Strategic Focus - **2026 Priorities**: Focus on execution after a year of integration and diversification in 2025 [4][43] - **Margin Improvement**: Aim for gradual increase in margins and focus on FRE (Fee-Related Earnings) per share [4][43] - **Fundraising Initiatives**: Actively fundraising for flagship funds, including a $7.5 billion real estate fund and a digital infrastructure fund expected to be larger than the previous $7 billion [5][6] Fund Performance and Market Dynamics - **Private Credit Performance**: Underlying portfolio companies show strong performance with average EBITDA of $275 million and low loan-to-value ratios (39% for corporate credit, 30% for software loans) [13][14] - **Revenue and EBITDA Growth**: Recent growth rates have slowed slightly to 7.5%-8% from 8%-9%, but remain robust [15] - **Default Rates**: Very few defaults observed, with no new names added to the watch list [15] Wealth Management Channel - **Growth in Wealth Channel**: $16 billion of inflows over the last 12 months, with a focus on expanding product offerings and geographical reach [22][25] - **Market Positioning**: Transitioned from an advisor-sub-advisor model to an in-house fundraising model, resulting in a team of over 200 people [24][25] Market Challenges and Outlook - **M&A Environment**: Deployment rates have been below expectations, but there is cautious optimism for improvement in the M&A environment [10][11] - **Concerns from Advisors**: Financial advisors express concerns about market conditions, but there is still optimism about the long-term potential of private credit [29][31] New Product Launches - **Digital Infrastructure Fund**: Recently launched with significant initial capital, expected to scale rapidly [34][36] - **Alternative Credit**: Less competition than direct lending, with higher expected returns [40][42] Financial Metrics and Future Guidance - **FRE Margins**: Commitment to improving FRE margins, aiming for around 60% in the future [43][45] - **Long-term Growth Target**: Targeting $3 billion in FRE, with confidence in achieving this goal [46] Conclusion - **Focus on Organic Growth**: Current strategy emphasizes growing existing products and managing recent acquisitions rather than pursuing new M&A opportunities [47][48]

Summary of Blackstone Conference Call - December 10, 2025 Company Overview - **Company**: Blackstone (NYSE: BX) - **Assets Under Management**: Over $1.2 trillion, making it the world's largest alternative asset manager [1][1] Economic Outlook - **General Sentiment**: More optimistic than most, citing resilience in the U.S. economy despite challenges like government shutdowns and high short rates [4][4] - **Private Equity Performance**: Q3 revenue growth of 9% for private equity companies [4][4] - **AI Capital Expenditure Cycle**: Identified as a major growth driver, positively impacting the alternative investment space [4][4] - **Inflation and Labor Market**: Inflation data appears better than reported; hiring difficulties have decreased significantly from 93% to 30% among CEOs [7][7] Investment Activity - **Capital Deployment**: Approximately $140 billion deployed over the last 12 months, with an acceleration in investment pace [10][10] - **Key Investment Themes**: - **Infrastructure**: Significant investments in data centers and energy transition [11][11] - **Secondary Market**: Strong position in the secondary space, providing liquidity at scale [12][12] - **Geographic Focus**: Positive outlook on India and Japan for real estate and private equity investments [13][13] - **Areas to Avoid**: Emerging markets outside India and the Middle East, and businesses at risk of disruption from AI [14][14][16][16] AI Investment Strategy - **AI as a Transformative Force**: Investments in infrastructure supporting AI, including data centers and energy [19][19] - **Risk Management**: Continuous assessment of AI risks in investment memos; focus on transforming legacy businesses with AI [25][25] Credit Market Insights - **Private Credit Growth**: Rapid growth in private credit, with a $500 billion portfolio that does not rely on balance sheets [32][32] - **Credit Quality**: Generally good credit quality with low loan-to-value ratios; EBITDA growth of 9% in portfolio companies [34][34] - **Market Dynamics**: Private credit is seen as a structural change benefiting borrowers and investors, with enduring premiums expected [40][40] Wealth Management - **Market Share**: Blackstone holds approximately 50% of the industry fee pool in the wealth market, with $290 billion in assets [41][41] - **Product Innovation**: Focus on delivering performance-driven products; potential for new collaborations and multi-asset credit products [44][44] Real Estate Outlook - **Market Recovery**: Signs of recovery in real estate after a challenging three years; demand for housing and logistics remains strong [55][55] - **Investment Strategy**: Active in privatizing REITs and investing ahead of market recovery [58][58] Fundraising Expectations - **Positive Outlook**: Anticipation of a strong fundraising year, driven by wealth management and institutional business growth [60][60] IPO and M&A Activity - **Market Activity**: Highest IPO pipeline since 2021; expected increase in M&A activity as cost of capital decreases [62][62] Long-term Business Evolution - **Growth Potential**: Alternatives market is seen as having significant room for growth; focus on delivering premium returns and maintaining quality [66][66][70][70] Conclusion - **Optimism for Future**: Strong confidence in Blackstone's ability to navigate market changes and capitalize on growth opportunities in various sectors [70][70]

Biggest names in banking are convening here in New York City for Goldman Sachs annual financial services conference. Been a busy week already, including Aries management co-founder and [music] CEO Michael Aragetti, who joins us now with Leslie Picker. Hey, Leslie. >> Hey, Carl.Thank you. And thank you, Michael. >> Hey, Leslie.It's good to be here. Good to have you. Um, so your stock was up about 7% yesterday on the inclusion into the S&P 500.Uh, what do you think that moment says about Aries in the industry ...

Core Insights - The annual financial services conference hosted by Goldman Sachs is gathering major banking figures, highlighting the significance of the event in the industry [1] - Aries Management's stock rose approximately 7% following its inclusion in the S&P 500, indicating positive market reception and investor confidence [1][2] Company Performance - Aries Management experienced a significant milestone with its S&P 500 inclusion, reflecting its growth and success over the past three decades [3][4] - The company has shown resilience in the face of recent high-profile bankruptcies in the private credit space, with a strong recovery in stock performance [4] Market Dynamics - The alternative investment landscape is described as sizable, scaled, global, and growing, suggesting a robust environment for private equity and credit [4] - Recent incidents of fraud and credit challenges in the market were viewed as isolated events rather than indicative of systemic issues, with low non-accrual rates reported by large managers [5][6] Regulatory Environment - The Bank of England is initiating stress tests for private equity and private credit, with Aries Management participating, indicating a proactive approach to risk management in the industry [7] - There is ongoing dialogue between private market participants and regulators in the US, emphasizing the importance of understanding the relationship between private and public markets [8] Industry Outlook - The stress testing process by the Bank of England is anticipated to benefit the industry by demonstrating the critical role of private markets in modern capital markets [9] - Private markets are seen as essential for driving growth in the middle market economy and mitigating volatility in liquid markets [9]

[music] [music] Good morning and welcome to Opening Bid. I'm Yahoo [music] Finance executive editor Brian Sazi and I'm joining you live from Apollo Global Management Headquarters in the heart of New York City. Paulo is the parent company of [music] Yahoo Finance, but it's also one of the largest private equity firms in the world [music] and a major player in the retirement market. All day, I'll be taking you behind the scenes of this financial powerhouse, showing you how a [music] top Wall Street firm like ...

Core Viewpoint - Blackstone CEO Stephen Schwarzman expressed confidence in the private credit market, dismissing concerns related to recent bankruptcies in the automotive sector [1] Group 1 - The CEO's remarks indicate a positive outlook on private credit despite market anxieties [1] - Recent bankruptcies in the auto industry have raised questions about the stability of private credit, but Schwarzman does not share these concerns [1]

The amount of capital that private credit firms have deployed reached a record last year, according to a new report https://t.co/phZeCCrEcr ...

Core Insights - Virtus Investment Partners, Inc. (VRTS) has entered into a definitive agreement to acquire a majority interest in Keystone National Group, an investment manager specializing in asset-centric private credit [1][4] Deal Details - The acquisition involves a total consideration of $200 million at closing, with an additional potential $170 million in deferred payments based on future revenue targets [2][8] - The transaction is expected to close in the first quarter of 2026, pending customary closing conditions and approvals [3][8] - The acquisition is anticipated to be accretive to VRTS's earnings in 2026 [3][8] Strategic Rationale - The addition of Keystone's capabilities is expected to enhance Virtus's multi-manager model by introducing differentiated asset-backed lending strategies, addressing the growing demand for private market solutions [4][6] - Keystone, founded in 2006, manages $2.5 billion in assets and has deployed over $6 billion across more than 750 transactions, showcasing its extensive experience in private credit [5] Market Context - The acquisition reflects a broader trend as investors increasingly shift towards private credit and alternative income sources amid ongoing market volatility [6] - Other firms, such as Charles Schwab and Goldman Sachs, are also expanding their private market offerings, indicating a growing industry focus on alternative investment strategies [11][12]