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The wealth of America’s top private capital firms soared by more than $56 billion in 2024, as shares of Blackstone, Apollo and KKR hit new highs following rapid growth and inclusion in major U.S. stock indexes.
The soaring stock prices have made private equity pioneers like Blackstone Chief Executive Stephen Schwarzman and KKR co-founders Henry Kravis and George Roberts wealthy, making it easier for the incoming Trump administration to close deals. A new billionaire dealmaker has emerged in the industry ahead of expected deregulation that could spur it. and asset increase in 2025.
The leadership of Blackstone, the world’s largest alternatives manager, has increased the stakes held by top industry executives and founders in seven publicly traded U.S. private capital companies, according to Financial Times calculations based on public filings. profits exceeded $56 billion.
Blackstone’s top leaders expected their stock to rise by $13.5 billion in 2024, as Blackstone’s market value rose nearly 50% to $214 billion.
The company’s stock price was boosted by asset growth, which soared to more than $1 trillion. In September 2023, Blackstone became the first private equity group to be included in the S&P 500 Index.
Analysts expect the Blackstone fund, which caters to wealthy retail investors in real estate, credit and private equity, to generate lucrative fees in 2025, boosting profits. Expectations for the company’s performance have seen its valuation rise to more than 40 times the group’s distributable earnings, a measure of its cash flow, over the past 12 months.
Much of the increase in executives’ holdings has gone to Blackstone Chief Executive Officer Schwartzman, whose stock has increased by more than $11 billion this year. President Jonathan Gray’s holdings have also increased in value by billions of dollars, bringing his stake to about $7.5 billion.
It also means that two other executives, private equity head Joe Baratta and chief financial officer Michael Che, own more than $1 billion worth of stock, according to Blackstone’s proxy statement. It means that you were doing it.
KKR stock nearly doubled in value in 2024 due to accelerating fundraising, with nearly $120 billion in new capital flowing in over the past 12 months, making it the best performer among large private equity groups. It was added to the S&P 500 in June.
The gains mean co-founders Kravis and Roberts’ stakes are now worth more than $12 billion. Co-CEOs Scott Nuttall and Joe Bey have also increased their holdings to approximately $2.7 billion since joining the management team in October 2021, backed by an average annual return of 30% in KKR stock. It is rapidly increasing.
Apollo Global, which was added to the S&P 500 in December, will also see its stock price nearly double in 2024, with CEO Mark Rowan and co-founder Leon Black, who left the company in 2021. Josh Harris’s shareholding has been strengthened. The profits also greatly benefited a new generation of leaders within Apollo. Their compensation is now mostly paid in stock.
James Berardi, co-founder and CEO of Athene, Apollo’s insurance arm that oversees about $350 billion, said Apollo co-presidents Scott Kleinman and James Zelter own more than $500 in stock. Meanwhile, his Apollo stock is expected to be worth more than $1 billion this year. million dollars, according to the annual report. The pair were given large stock grants as part of their promotions in 2017 and are set to co-lead Apollo if Rowan leaves to become Treasury secretary under President-elect Donald Trump. Ta.
Apollo’s next generation of management is also benefiting from the stock’s soaring price. In September 2023, Apollo acquired $550 million in restricted stock units to John Zito, deputy chief investment officer for credit, Grant Kvalheim, president of Athens, and two senior private equity executives.・Awarded to a leadership group consisting of partners Matt Nord and David Sambar. Since then, the value of that award has nearly doubled to more than $1 billion.
But in recent months, executives including Mr. Kleinman, Mr. Berardi, Mr. Zelter and Mr. Rowan have sold or indicated they intend to sell large amounts of Apollo stock.
According to FT calculations, top executives at Ares, TPG and Blue Owl all expect the value of their companies to increase by more than $4 billion in 2024, supported by 50-65% share price appreciation. There is.
In addition to stock profits, private capital managers can earn significant profits through quarterly dividends from their stock holdings. The heads of the seven companies have collectively received nearly $3 billion in dividends this year, according to FT calculations.
