The Global Financial Leaders’ Investment Summit in Hong Kong saw industry experts discussing the current state of capital demand in the U.S. Marc Rowan, CEO of Apollo Global Management, highlighted the surge in demand for capital, driven by what he described as an “industrial renaissance.” He emphasized the significant government spending on infrastructure, the semiconductor industry, and projects under the Inflation Reduction Act as key factors fueling this demand.
Rowan also mentioned the impact of industrial policies such as the CHIPS and Science Act and the 2021 infrastructure legislation, which have led to billions in spending. He noted that the U.S. has been the largest recipient of foreign direct investment in recent years and is expected to maintain this position in the coming year.
Jonathan Gray, President and COO of Blackstone, echoed Rowan’s sentiments, highlighting the growing importance of data centers in the digital infrastructure space. He emphasized that data centers were a major focus for Blackstone, with the company investing billions in their development.
The panelists also discussed the recovery of fundraising and M&A activity. David Solomon, Chairman and CEO of Goldman Sachs, noted that capital raising activity had peaked in 2020 and 2021 but had slowed down due to various factors such as the war in Ukraine, inflation pressures, and regulatory challenges. However, he expressed optimism about a resurgence in activity, citing expectations of friendlier regulation under the incoming Trump administration.
Ted Pick, CEO of Morgan Stanley, emphasized the overall strength of the consumer and corporate community, stating that they were in good shape as the economy continued to grow. He highlighted the positive environment for capital allocation and hinted at a shift towards “raising capital mode.”
Looking ahead, Solomon predicted a more robust environment for capital raising and M&A activity in 2025. Overall, the panelists painted a positive picture of the U.S. economy, highlighting the growing demand for capital and the potential for increased investment and dealmaking in the coming year.
