Apr 16, 2026, 2:00 PM ETFireside Chat, Interview

Leaders in Asset Management | Global Conference 2025

Blackstone had approximately 70 employees and managed a single LBO fund when John Schwarz joined in 1992, contrasting with today's $1.2 trillion AUM.
Apollo was founded in 1990 during a recession marked by the Texas and New York banking crises, starting with one investor: the government of France via Credit Lyonnais.
Apollo generated approximately $3 billion annually for its initial French partner over five years, achieving roughly 50% rates of return.
Both firms grew from niche "cottage industries" serving pension funds and sovereign wealth to serving insurance companies and individual investors following the 2008 financial crisis.
The 2008 crisis shifted investor demand from high-liquidity public markets to private assets (real estate, infrastructure, credit) offering higher returns in exchange for reduced liquidity.

Private credit has evolved from a niche non-investment grade market to a massive sector targeting the $30 trillion "real economy," including energy, infrastructure, and consumer finance.
Apollo and Blackstone have pioneered direct-to-customer models (bypassing securitization) to offer borrowers certainty and investors roughly 175 basis points higher returns than A-rated public debt.
Blackstone notes that 99% of global companies are non-investment grade, contrasting with the Wall Street historical focus on the top 1% investment grade.
The departure of GE Capital from the market created a financing gap that non-bank lenders (like Apollo and Blackstone) have filled with granular origination capabilities.
European regulators have shifted from viewing non-bank finance as a risk to recognizing it as a necessary diversifier for financial systems, particularly as bank balance sheets become constrained.

India is identified as the most significant emerging market for both firms over the last decade, delivering exceptional returns due to infrastructure development and a shift toward "growth capitalism."
Southeast Asia (specifically Vietnam and Indonesia) is emerging as a key region due to manufacturing pivots and a rising middle class, though still smaller than the India opportunity.
The Middle East (UAE, Saudi Arabia, Qatar) is highlighted for its massive domestic capital development plans and sophisticated governance, where local governments actively seek foreign partners to build capital markets.
Blackstone predicts Europe will become a premier credit market due to wider spreads and less flexible banking systems, though equity investment is viewed as more challenging due to macro trends.
Japan's market transformation was driven by a stock exchange official forcing disclosure standards and a Prime Minister enabling the sale of $800 billion in sovereign bonds to be invested globally.
Latin America and Africa remain underutilized due to political volatility, lack of rule of law, and challenges in scaling operations.

Blackstone's "Career Pathways" initiative has hired approximately 10,000 individuals from underserved communities, veterans, and their spouses across its portfolio companies.
Mark Schwartz highlights that private equity firms can drive better wages and job creation by owning companies long-term, accelerating growth rather than deconstructing businesses for short-term gain.
Apollo emphasizes "financial technology" as a multiplier, matching complex capital structures (hybrids, preferreds, warrants) to specific business needs, a capability lacking in many international markets.
Both leaders argue that the ability to align management and ownership (equity stakes) creates stickier labor models and better long-term performance than traditional corporate structures.
Blackstone's CEO describes their primary role as removing barriers for partners and preventing the "reversion to mediocrity" that often plagues large, successful enterprises.

Both firms project continued exponential growth over the next 10–20 years, driven by the "indexing" of public markets which makes private assets more attractive for diversification.
Blackstone envisions becoming a "full-service capital solution provider," offering everything from senior debt to hybrid capital to any corporate or bank globally.
Apollo aims to maintain its position as a provider of "excess return per unit of risk," cautioning against growing its capital base faster than its ability to generate premium returns.
A key future trend is the shift toward "active management" in public portfolios, where institutions add private assets to public beta to generate alpha.
Mark Schwartz notes that the banking system will increasingly partner with non-bank lenders (keeping origination fees and servicing fees) rather than holding loans to maturity.

Blackstone replaced its physical Christmas party with an annual "Christmas Video" (spoofing formats like The Office) to humanize the firm, connect thousands of employees, and counter negative media portrayals.
The 2024 video featured a country music theme inspired by James Brown's "I Can't Get Next to You," while the previous year featured a Taylor Swift spoof.
The leadership views humor and self-deprecation as critical tools for maintaining a culture of creativity and "playing to win" as the firms scale to massive sizes.
Internal culture relies on a small group of 200 partners to set the tone for the broader organization, focusing on retention and making the firm a "great home" for talent over 25+ year careers.

The transcript concludes with a disjointed, fictional narrative segment unrelated to the business discussion, featuring characters discussing a "Taylor Swift heiress tour" and a fraudulent fundraising scheme at a mall.