In a bold statement, Apollo Global Management CEO Marc Rowan says the old investing model — relying heavily on public stocks and bonds — no longer works. “I do think it is broken,” Rowan told CNBC, pointing to the rapid rise of private credit and the inefficiencies in today’s public markets.
What’s Changing?
Private credit is booming: Once considered niche, it now attracts major institutions seeking better returns. Apollo alone manages over $840 billion, up from $40 billion in 2008.
Public markets are shrinking: Fewer companies are listed (about 4,000 today vs. 8,000 in the 1990s), and the S&P 500 is dominated by just 10 megacaps, making diversification harder.
Traditional 60/40 portfolios are struggling: Bond yields are low, stock markets are concentrated, and passive investing often hides real risks.
Why Private Credit?
Rowan argues that private credit can be safer than public stocks — it’s just less liquid. Loans to companies like Meta via private channels may offer strong returns with controlled risk, as long as investors can handle short-term illiquidity.
The Future: More Access, More Risk
New policies are opening up private markets to retirement plans and retail investors. Apollo is also teaming with traditional asset managers to launch private credit ETFs and interval funds, aiming to bring more liquidity to the space.
Final Word
Rowan sees the shift to private markets not as a trend, but as a permanent evolution in investing. For investors, it means adapting to new tools, accepting less liquidity, and seeking better returns beyond the old public playbook.