At the Global Financial Leaders’ Investment Summit held in Hong Kong, Marc Rowan, CEO of Apollo Global Management, emphasized the burgeoning demand for capital in the United States, describing it as part of an “industrial renaissance.”
Speaking during a panel discussion on Tuesday, Rowan remarked, “The demand for capital, encompassing both debt and equity, is extraordinary.” He attributed this surge to substantial government investments, particularly in infrastructure, the semiconductor sector, and initiatives under the Inflation Reduction Act.
Rowan noted, “We are witnessing an incredible demand for capital against the backdrop of significant U.S. government deficits. Therefore, I believe the capital-raising sector is poised for growth.” He highlighted that recent industrial policies, such as the CHIPS and Science Act and the 2021 infrastructure legislation, are set to drive billions in spending.
Furthermore, Rowan pointed out that the United States has been the leading recipient of foreign direct investment over the past three years and is expected to maintain this position in the current year.
The panel also identified energy and data centers—essential for the advancement of artificial intelligence and digital transformation—as key growth areas that will require increased capital investment. Jonathan Gray, President and COO of Blackstone, echoed this sentiment, noting that data centers represent a significant focus for his firm, which is investing billions in their development.
“We are engaging in equity financing and other forms of investment in this sector. We are fully committed to expanding our digital infrastructure capabilities,” Gray stated.
Recovery in Fundraising and M&A Activity
Other experts at the summit, organized by the Hong Kong Monetary Authority, expressed optimism about the recovery of capital raising after a recent slowdown. David Solomon, Chairman and CEO of Goldman Sachs, explained that while capital raising reached historic highs in 2020 and 2021 due to extensive Covid-era stimulus, it subsequently declined due to geopolitical tensions, inflation, and stricter regulations from the Federal Trade Commission (FTC).
However, Solomon noted a recent resurgence in activity as market conditions have stabilized and with the anticipation of more favorable regulatory environments under the incoming administration of President-elect Donald Trump.
Despite ongoing inflation and other economic risks, Ted Pick, CEO of Morgan Stanley, remarked that both consumers and corporations are generally in good financial health as the economy continues to expand. “For those involved in capital allocation, this environment has been highly favorable,” he said, indicating that his firm is preparing to shift into a “capital-raising mode.”
“This phase is characteristic of a robust and flourishing economy, which is where traditional underwriting and mergers and acquisitions thrive,” he added.
Looking ahead, Solomon predicted that these trends would lead to a “more robust” capital raising and M&A landscape by 2025.
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