Marc RowanCEO & Co-Founder

I do think it’s broken. The way we think about stocks, bonds, and diversification doesn’t reflect today’s reality. In 2008 things became clear for me, private markets started reshaping fast, and what we believed about investing simply stopped working.

In 2008, Apollo had around $40 billion in assets under management. Today it’s $840 billion. That growth has been faster than Google, Amazon, or Microsoft. It’s not just management; it’s because private markets are fundamentally expanding.

Public markets are shrinking. We had 8,000 listed companies, now it’s 4,000 and falling. Ten stocks make up 40% of the S&P 500. Diversification is vanishing, and stocks and bonds are fully correlated. Passive indexing dominates, but 90% of active managers fail to beat the index. That’s not real investing anymore.

If you want diversification and real returns, you need private markets. They represent 80% of the economy and job creation. Public markets can’t give you that exposure anymore.

Alternatives are simply investments outside public stocks and bonds. Years ago, people thought public was safe and private was risky. That’s not true. Both have safe and risky elements. The real difference is liquidity.

Yes. Family offices are already more than 50% private. High-net-worth clients are moving into institutional-quality private products. And retail investors will get access indirectly through asset managers. We’re heading to a world of convergence: public and private in the same portfolio, even in the same product.

Over 21 of the last 22 years, private markets outperformed public markets net of fees. Yes, fees are higher, but if they don’t produce excess returns after risk, they shouldn’t exist. As for transparency, we now provide daily NAV in many funds. Illiquidity? It’s about knowing what you can bear, not every investor needs money available on Tuesday.

It’s a continuum. Some private investment-grade products allow 100% withdrawal every 30 days. Others offer 5% liquidity quarterly. If you’re saving for 30 years, why give up higher returns just for instant liquidity?

The advice business is going to be stronger than ever. Investors will move from choosing between three flavors, stocks, bonds, and a little alternatives, to something like Baskin Robbins, with many variations. Advisors will guide them through this complexity.

Depends on definition. If it’s just leveraged lending, it’s a $1.5 trillion market. If it’s all investment grade plus below, it’s already a $40 trillion market. Big companies now view private markets as a third source of capital alongside banks and bonds.

No. Banks are efficient at short-term lending. But long-term capital like infrastructure, energy transition, and defense will go to insurance companies, pensions, and investors. That’s where private credit shines.

For diversification and compounding, even 1–2% better returns change retirement outcomes by 50–100% over decades. If you don’t need daily liquidity, private can be as reasonable as public. It’s not about labels but about risk, reward, and liquidity.

Yes, but not dramatically. Maybe 5–10% in below-investment-grade credit. What matters more is within the 60/40 allocation: how much of that 60 or 40 is private vs public. For long-term investors, more private makes sense.

It’s already happening. Even without full regulatory clarity, fiduciaries are experimenting. The big change will be the return of guaranteed income options in 401(k)s, like defined benefit plans but offered through retirement services and insurers.

Because people don’t know how long they’ll live. In places like Australia, 40% die with much of their savings unspent. Guaranteed income gives peace of mind and helps people actually retire with security.

More companies will stay private longer, not fewer. Capital is abundant in private markets, so they don’t need to go public. Over time, I see private equity-like investments, but broader: hundreds of private industrial or tech companies people can access through new structures.

No. We’re in an indexed world. Investors don’t need thousands more small public companies. Ten big stocks already dominate the S&P. The future is more private companies, more transparency, and more access for everyday investors through retirement plans and hybrid products.