Apollo CEO Marc Rowan states that the U.S. 'industrial renaissance' is driving a resurgence in fundraising.

• The demand for capital in the U.S. is increasing due to the surge in government spending and the ongoing "industrial renaissance," according to Marc Rowan of Apollo Global.
• Other panelists stated that the normalization of economic conditions and growth in the data center and energy sectors were also contributing to a resurgence in fundraising activity.

Marc Rowan, CEO of Apollo Global Management, stated at the Global Financial Leaders' Investment Summit in Hong Kong that the "industrial renaissance" in the U.S. is driving demand for capital.

Rowan stated on Tuesday during a panel discussion that the demand for capital, through both debt and equity, is so high, it is truly remarkable.

The asset manager, who is said to be in the running for the Treasury Secretary position under President-elect Donald Trump, stated that this demand has been backed by significant government spending, specifically on infrastructure, the semiconductor industry, and projects under the Inflation Reduction Act.

The capital raising business is expected to be profitable due to the high demand for capital occurring against the backdrop of a U.S. government with significant deficits.

The CHIPS and Science Act and the 2021 infrastructure legislation require billions in funding.

Over the past three years, the U.S. has been the largest recipient of foreign direct investment and is predicted to maintain its position as the top recipient this year, according to Rowan.

Other panelists, including Rowan, identified energy and data centers as growth sectors that require more capital for the development of artificial intelligence and digitization.

Billions of dollars are spent by Blackstone on the development of data centers, according to Jonathan Gray, the President and COO of the company.

"We are committed to investing in digital infrastructure and will continue to do so in equity and financing."

Fundraising and M&A recovery

Capital raising is expected to recover from a recent slowdown, according to other panelists at the summit organized by the Hong Kong Monetary Authority.

In 2020 and 2021, capital raising activity reached its peak due to the massive Covid-era stimulus, but it later decreased due to the war in Ukraine, inflation pressures, and stricter regulations from the Federal Trade Commission, as stated by David Solomon, chairman and CEO of Goldman Sachs.

Solomon stated that there has been a recent increase in activity due to normalized conditions and anticipated more lenient regulation on dealmaking from the FTC under the incoming Donald Trump administration.

Despite the inflationary environment and other risks, Ted Pick, CEO of Morgan Stanley stated that the consumer and corporate community are generally healthy as the economy continues to grow.

"He stated that this environment has been ideal for capital allocation businesses, and now the group is preparing to enter "raising capital mode.""

He stated that a growing and thriving economy is characterized by classic underwriting and mergers and acquisitions businesses.

Solomon predicted that these trends would result in "stronger" capital raising and M&A activity in 2025.