Private vs. Public: Apollo’s CEO Reveals Why Investors Should Redefine ‘Risk'

Introduction

Apollo Global Management's (NYSE: APO) CEO Marc Rowan recently highlighted an evolving shift in asset management: the traditional view of private equity as "risky" and public assets as "safe" no longer holds in today’s market. Rowan shared his insights on the benefits and risks of private and public investments at the Yahoo Finance Invest event, challenging investors to reconsider their fixed-income allocations.

The Evolving Role of Private and Public Assets

With increasing numbers of companies opting to go private, the historical divide between “risky” private assets and “safe” public ones has blurred. Rowan emphasized that both asset types now involve similar risk-reward profiles. He pointed out that individual and institutional investors are increasingly questioning the rationale behind maintaining solely public assets in their fixed-income portfolios, with many exploring private credit as an attractive alternative. This trend is fueling demand for private equity products tailored to generate reliable, long-term returns, especially in environments of market volatility.

The Growth of Private Equity

As Rowan explained, private equity continues to expand, reshaping how investors approach their portfolios. Apollo's growth reflects this broader industry movement, as more investors diversify into private credit, real estate, and infrastructure. Rowan’s insight suggests that Apollo’s investment philosophy aligns well with the needs of clients seeking security in private markets, blending asset performance with minimized exposure to short-term market swings.

Looking Forward

Rowan’s perspective underscores a new way of thinking about private and public assets as complementary rather than opposing forces. With the increasing popularity of private investments, the opportunities to diversify with Apollo’s specialized products are abundant. This trend aligns well with modern investors’ goals, allowing for more innovative allocation strategies that go beyond conventional asset categories. As Apollo continues to develop its offerings, we look forward to seeing how it helps clients redefine risk and reward to achieve stable growth in a dynamic market environment.

Disclaimer

This blog post is for informational purposes only and does not constitute financial advice. Investment in private equity and other alternative assets involves significant risk. Past performance is not indicative of future results. We recommend consulting a financial advisor before making any investment decisions.