Apollo's Marc Rowan Secures $1 Billion Mubadala Deal, Discusses AI Valuations and Anthropic's IPO

Apollo Global Management has finalized an investment exceeding $1 billion for a 10 percent stake in Mubadala Capital, aiming to bolster the Abu Dhabi asset manager's presence in North America. For Marc Rowan, co-founder and chief executive of Apollo, which oversees more than $1 trillion in assets, this strategic move involves supporting complementary asset managers, even those that are direct competitors. In an exclusive interview with Manus Cranny for The Inside Brief, recorded in Abu Dhabi on the day of the announcement, Mr. Rowan elaborated on the partnership and his perspective on the healthy competition between the two firms. He also shared his view that the Gulf region presents less risk today compared to a year ago, despite ongoing regional conflicts. Mr. Rowan outlined Apollo's intention to increase investments in the UAE, aligning with the region's significant infrastructure development and the creation of alternative trade routes, projected to involve $1 trillion in spending. The discussion also touched upon Anthropic's anticipated $2 trillion initial public offering, the impact of passive investing on the pricing of major stock listings, and his expectation that a significant AI-driven event will eventually necessitate regulatory intervention. Furthermore, Mr. Rowan addressed the financial aspects of AI, from chip financing to the substantial borrowing by hyper scalers, and expressed his primary concern regarding short-term political decision-making in the US. He contemplated whether AI represents a bubble and explained why both Blackstone's Jon Gray and Citadel's Ken Griffin could be correct in their assessments. The Inside Brief with Manus Cranny is accessible on platforms including YouTube, Apple Podcasts, and Spotify.