Growth Larger Than Apple... US Private Equity Market Cap Increases by $40 Billion in One Year

Effect of Business Diversification Strategy Including Loans
"14 Times Asset Growth Compared to 2008"

The stock value of major U.S. private equity firms has risen by more than $40 billion (approximately 53.152 trillion KRW) compared to a year ago, according to major foreign media reports on the 12th (local time).

Blackstone, KKR, Apollo Global, Ares Management, and TPG have seen their stock prices reach or approach all-time highs, driven by financial results that exceeded expectations. Foreign media analyzed that the stock price increase was the result of a business strategy that shifted focus from traditional corporate acquisitions last year to diversification. In particular, they benefited from rising interest rates as credit and insurance-based investment operations increased.

[Image source=Reuters Yonhap News]

The world's largest asset manager, Blackstone, attracted $148 billion (approximately 196.7216 trillion KRW) in new investor funds last year, pushing its assets beyond $1 trillion. Since 2023, it has recorded a total return of 80%, including dividends. Its market capitalization is about $155 billion (approximately 206.026 trillion KRW), larger than Morgan Stanley or Goldman Sachs. Most of these companies' profits came from credit and insurance businesses. Private credit investments increased by 16.4% last year, helping offset revenue declines in the private equity sector. Thanks to this growth, Blackstone CEO Stephen Schwarzman’s net worth is estimated to have increased by more than $12 billion (approximately 15.9504 trillion KRW).

Apollo Global raised a total inflow of $158 billion (approximately 210.0136 trillion KRW) last year, securing more funds than Blackstone. Its total assets amount to $652 billion (approximately 866.6384 trillion KRW). Apollo Global CEO Mark Rowan analyzed that the private equity industry's growth stems from changes in the financial system that pushed out public markets and banks due to historically low interest rates and high regulations. CEO Rowan stated, "In 2008, we managed $44 billion (approximately 58.4848 trillion KRW) in assets, and we have grown 14 times since then," adding, "This growth rate is faster than Apple’s revenue growth."

Overall, private equity firms earned $15.5 billion (approximately 20.6026 trillion KRW) last year from fee- and spread-based revenues, an 11% increase from the previous year. After three large regional U.S. lenders failed last year, private equity firms actively entered the lending market. Apollo Global executed nearly $100 billion in loans last year, including large loans to German real estate company Vonovia and Air France-KLM. Blackstone formed lending partnerships with large regional U.S. banks. TPG acquired credit investment group Angelo Gordon for $2.7 billion (approximately 3.5883 trillion KRW), and KKR strengthened its credit investment capabilities by acquiring insurance company Global Atlantic earlier this year.

William Katz, an analyst at TD Cowen, evaluated, "These private equity firms demonstrate that there are diverse growth paths by product, region, and distribution channel."

This content was produced with the assistance of AI translation services.