At the Global Financial Leaders’ Investment Summit in Hong Kong, addressing a gathering of attendees, Marc Rowan, chief executive officer of Apollo Global Management, said that part of what has really driven this very sharp rebound in fundraising has been a bit of a combination of government spending and the beginning of this “industrial renaissance” unfolding across the United States. And, according to him, demand for capital, including debt and equity, is reaching all-time highs. This growth is largely attributed to enormous investments in infrastructure, in the semiconductor industry, and under the Inflation Reduction Act. More specifically, U.S. industrial policies like CHIPS and Science Act and the 2021 infrastructure bill promise to push spending into the billions of dollars, thereby fueling demand for capital.
Rowan also pointed to the fact that, despite running substantial deficits, the US remains a magnet for foreign direct investment. After all, it was the largest recipient of foreign direct investment over the last three years. And this will continue to be so. In parallel, what are crucial for the growth of artificial intelligence and digital infrastructure—energy and data centers—are also fast emerging as key areas of capital commitment.
The panel discussions, which included notable figures like Jonathan Gray, president of Blackstone, and David Solomon, CEO of Goldman Sachs, underscored the broader recovery in capital raising activities. Gray specifically pointed to data centers as a central growth area for Blackstone, with the firm deploying billions in equity and financing to expand this digital infrastructure.
David Solomon explained that while capital-raising activities reached their peak during the Covid-19 pandemic, they had slowed due to external factors such as the war in Ukraine, inflation, and tighter regulations. However, with these conditions normalizing and a more favorable regulatory outlook under the incoming Trump administration, fundraising is gaining momentum again.
Founder and Chief Executive at Morgan Stanley, Ted Pick further states that the consumer as well as corporate sectors are in good health. Economic growth is having an onset with a more favorable environment for capital allocation, and positions are made for a stronger fundraising and mergers and acquisitions (M&A) outlook by 2025.
