Is a private equity billionaire going to be the treasury secretary of the US, one of the most important cabinet positions yet to be filled by incoming president Donald Trump?

Marc Rowan, the CEO of Appolo Global Management Inc, is a top contender for the post that has massive implications for US financial and economic policy affecting the nation and rest of the world, according to various media reports.

Watch: What Trump 2.0 Means For India | GRAVITAS

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Rowan, 62, has gone to Florida from his base in Hong Kong, and is set to meet Trump on Wednesday (Nov 20) to make his case for the job, the Financial Times reported.

According to the British newspaper, Rowan has the support of several Trump donors.

Other top names for the job include hedge fund investor Scott Bessent, former Federal Reserve governor Kevin Warsh and Tennessee Senator Bill Hagerty.

Trump will interview both Rowan and Warsh on Wednesday, Bloomberg news agency reported citing sources.

<a href="https://www.wionews.com/opinions-blogs/office-for-profit-how-trumps-return-will-add-to-his-wealth-and-raise-ethical-questions-777315">Also read: Office for profit: How Trump's return will add to his wealth and raise ethical questions&nbsp;</a> 
 
Trump tapped another billionaire, Howard Lutnick from the investment firm Cantor Fitzgerald, as commerce secretary on Tuesday.

Rowan, a Wharton School of Business graduate, was part of the team that adviced Trump during the early stages of Covid pandemic that hit the US at the fag end of his first term.

Rowan's&nbsp;investment firm Apollo Global Management has assets under management worth over $700 billion.

According to a report in Times of Israel, Rowan was an ardent critic of antisemitism in US educational institutions in the wake of Gaza war after Israel was attacked by Hamas terroists last October.

<a href="https://www.wionews.com/world/trump-20-cabinet-brendan-carr-to-be-chairperson-of-federal-communications-commission-776955">Also read: Trump 2.0 cabinet: Brendan Carr to be chairperson of Federal Communications Commission</a>

Financial industry veterans becoming treasury secretary is nothing new in the 'revolving door' of industry-government jobs of the US.&nbsp;

If Rowan is named by Trump and approved by Senate, he will have influence over the $24 trillion private equity market, said a report on Fortune magazine.

(With inputs from agencies)

Is a private equity billionaire going to be the treasury secretary of the US, one of the most important cabinet positions yet to be filled by incoming president Donald Trump?

Is a private equity billionaire going to be the treasury secretary of the US, one of the most important cabinet positions yet to be filled by incoming president Donald Trump? Marc Rowan, the CEO of Appolo Global Management Inc, is a top contender for the post that has massive implications for US financial and economic policy affecting the nation and rest of the world, according to various media reports. Watch: What Trump 2.0 Means For India | GRAVITAS × Rowan, 62, has gone to Florida from his base in Hong Kong, and is set to meet Trump on Wednesday (Nov 20) to make his case for the job, the Financial Times reported. According to the British newspaper, Rowan has the support of several Trump donors. Other top names for the job include hedge fund investor Scott Bessent, former Federal Reserve governor Kevin Warsh and Tennessee Senator Bill Hagerty. Trump will interview both Rowan and Warsh on Wednesday, Bloomberg news agency reported citing sources. Also read: Office for profit: How Trump's return will add to his wealth and raise ethical questions Trump tapped another billionaire, Howard Lutnick from the investment firm Cantor Fitzgerald, as commerce secretary on Tuesday. Rowan, a Wharton School of Business graduate, was part of the team that adviced Trump during the early stages of Covid pandemic that hit the US at the fag end of his first term. Rowan's investment firm Apollo Global Management has assets under management worth over $700 billion. According to a report in Times of Israel, Rowan was an ardent critic of antisemitism in US educational institutions in the wake of Gaza war after Israel was attacked by Hamas terroists last October. Also read: Trump 2.0 cabinet: Brendan Carr to be chairperson of Federal Communications Commission Financial industry veterans becoming treasury secretary is nothing new in the 'revolving door' of industry-government jobs of the US. If Rowan is named by Trump and approved by Senate, he will have influence over the $24 trillion private equity market, said a report on Fortune magazine. (With inputs from agencies)

Another billionaire in Team Trump 2.0? Marc Rowan a top contender for treasury secretary

The year 2023 witnessed a major surge in global equity markets, fueled by post-pandemic recovery efforts and near-zero interest rates. However, as we enter 2024, the landscape is shifting. Tightening monetary policies, geopolitical uncertainties and evolving investor priorities are creating a more complex and volatile environment. WION's Business Editor Rahul Karunkar spoke to Stephen Pagliuca, Managing General Partner & Co-owner of Bain Capital & Boston Celtics, regarding the private equity outlook.

Decoding key private equity trends

Market rally: 2023's boom continues?

Asia-Pacific private equity (PE) continued to set new highs for the industry in 2018 but investors should expect tougher times ahead.

This according to a recently released report on the PE market by global management consultancy, Bain and Company.

In 2018, deals values hit record highs together with exit values but fund-raising declined.

Leading the way in Asia-Pacific deal-making are China and India, which accounted for 75 per cent of the total deal value in the region.&nbsp;

Asia-Pacific deal value rose to $165 billion in 2018, exceeding the all-time high of $159 billion of a year earlier and 48 per cent greater than the 2013- 17 average.

China saw a staggering $94 billion of total private equity investment value last year, up 64 per cent over the previous five-year average.&nbsp;

However, it`s important to note that China's private equity market consists of two markets which operate very differently - one for transactions in renminbi which is almost entirely exclusive to domestic funds and one in foreign currencies.

The powerful momentum of previous years lifted the Asia-Pacific private equity industry setting new records in deal value and exit value making an impact in the overall deals done globally.&nbsp;

With $883 billion in total assets under management, Asia-Pacific now represents 26 per cent of the global PE market, up from only 9 per cent just a decade ago.&nbsp;

As General Partners (GPs), compete for deals against corporate players, increasingly they are winning. (A GP is the entity that manages the fund.)&nbsp;

Private equity's share of the Asia-Pacific M&amp;A market rose 6 percentage points to 17 per cent in 2018, from the previous five-year average of 11 per cent. Despite higher deal values, exit values and increasing M&amp;A market share, overall fundraising in Asia-Pacific was sharp lower declining more than 50 per cent to $75 billion, after a record high in 2017, Bain said in its report.&nbsp;

<img alt="Asia-Pacific Private Equity" data-entity-type="file" data-entity-uuid="74abe78d-c914-42b2-b68a-928d738f9657" src="//cdn.wionews.com/sites/default/files/inline-images/Asian%20equity.jpg" />

The report further added that the strength of previous years masked three disconcerting market developments that could affect investment activity and returns in the coming year. First, US-China trade tensions have increased the risk of macroeconomic disruption in China and across the region.&nbsp;

Secondly, deal prices have remained high while interest rates are rising steadily after a period of decline, a trend that will increase the cost of funding and could put a brake on future multiple expansion.&nbsp;

Third, and perhaps most telling, the region's private equity market has become sharply polarized between large funds with strong track records that dominate activity across the region, and smaller, less experienced funds that are having difficulty raising funds and exiting. These economic and market trends could slow the revenue growth and multiple expansion that powered Asia-Pacific PE returns in recent years.&nbsp;

In past recessions, the PE market has outperformed other asset classes. But if recession strikes, vulnerable and less differentiated funds are likely to disproportionately bear the brunt of the downturn. There is a growing acute divide between winners and losers that became more evident in 2018. This could impact a significant number of funds especially smaller funds with smaller deals in the coming year. To win even in a tougher market, many will have to work hard to raise their game.&nbsp;

Thirty-two mega deals (USD 1 billion or more in value) pushed the average deal size to $151 million, on par with last year and up 27 per cent over the previous five-year average of $119 million. These mega deals made up 39 per cent of deal value, compared with an average 33 per cent over the last five years. A critical factor in PE investing is a successful exit strategy. In an exit, the PE firms leave an investment position by selling a stake in a company in which it`s invested.&nbsp;

In this regards, although exit values set new records, the total number of exits declined sharply, and large exits dominated the year`s results. The report added that large, experienced PE-owned companies racked up the vast majority of successful exits and dominated total exit value, while smaller companies had increasing difficulty finding buyers.&nbsp;

For example, Bain said, exits involving companies sold for under USD 100 million dropped 58 per cent last year, while those in excess of USD 500 million increased 26 per cent. Kiki Yang, Bain`s co-head of Asia Pacific private equity and co-author of the report, said in an accompanying release that "we're seeing warning signs that suggest the party may be coming to an end, at least for some investors ..... with the risk of global recession and other macro-economic challenges, we expect the market for exits will only get tougher.

"Looking forward, three important themes are playing an increasing role in the Asia-Pacific private equity market: the rush to invest in China tech and Internet companies; the use of advanced analytics as a tool to improve fund performance; and a shift toward environmental, social and governance (ESG) and impact investing. It warned however that PE investors are increasingly cautious with China`s Internet-based "new economy" that may be a speculative bubble waiting to burst. The report continued, "The huge volume of private equity and venture capital flowing into China's new economy has oversaturated the lower end of the market, prompting investors to seek larger investments."

With trends suggesting that the PE market is beginning to differentiate better-established funds as well as with the gathering macroeconomic uncertainty, revenue growth and multiple expansions in the Asia-Pacific PE market is expected to decline. Less differentiated and smaller funds are the most vulnerable and would be disproportionately affected.&nbsp;

Asia-Pacific private equity (PE) continued to set new highs for the industry in 2018 but investors should expect tougher times ahead. This according to a recently released report on the PE market by global management consultancy, Bain and Company.

Asia-Pacific private equity (PE) continued to set new highs for the industry in 2018 but investors should expect tougher times ahead. This according to a recently released report on the PE market by global management consultancy, Bain and Company. In 2018, deals values hit record highs together with exit values but fund-raising declined. Leading the way in Asia-Pacific deal-making are China and India, which accounted for 75 per cent of the total deal value in the region. Asia-Pacific deal value rose to $165 billion in 2018, exceeding the all-time high of $159 billion of a year earlier and 48 per cent greater than the 2013- 17 average. China saw a staggering $94 billion of total private equity investment value last year, up 64 per cent over the previous five-year average. However, it`s important to note that China's private equity market consists of two markets which operate very differently - one for transactions in renminbi which is almost entirely exclusive to domestic funds and one in foreign currencies. The powerful momentum of previous years lifted the Asia-Pacific private equity industry setting new records in deal value and exit value making an impact in the overall deals done globally. With $883 billion in total assets under management, Asia-Pacific now represents 26 per cent of the global PE market, up from only 9 per cent just a decade ago. As General Partners (GPs), compete for deals against corporate players, increasingly they are winning. (A GP is the entity that manages the fund.) Private equity's share of the Asia-Pacific M&A market rose 6 percentage points to 17 per cent in 2018, from the previous five-year average of 11 per cent. Despite higher deal values, exit values and increasing M&A market share, overall fundraising in Asia-Pacific was sharp lower declining more than 50 per cent to $75 billion, after a record high in 2017, Bain said in its report. The report further added that the strength of previous years masked three disconcerting market developments that could affect investment activity and returns in the coming year. First, US-China trade tensions have increased the risk of macroeconomic disruption in China and across the region. Secondly, deal prices have remained high while interest rates are rising steadily after a period of decline, a trend that will increase the cost of funding and could put a brake on future multiple expansion. Third, and perhaps most telling, the region's private equity market has become sharply polarized between large funds with strong track records that dominate activity across the region, and smaller, less experienced funds that are having difficulty raising funds and exiting. These economic and market trends could slow the revenue growth and multiple expansion that powered Asia-Pacific PE returns in recent years. In past recessions, the PE market has outperformed other asset classes. But if recession strikes, vulnerable and less differentiated funds are likely to disproportionately bear the brunt of the downturn. There is a growing acute divide between winners and losers that became more evident in 2018. This could impact a significant number of funds especially smaller funds with smaller deals in the coming year. To win even in a tougher market, many will have to work hard to raise their game. Thirty-two mega deals (USD 1 billion or more in value) pushed the average deal size to $151 million, on par with last year and up 27 per cent over the previous five-year average of $119 million. These mega deals made up 39 per cent of deal value, compared with an average 33 per cent over the last five years. A critical factor in PE investing is a successful exit strategy. In an exit, the PE firms leave an investment position by selling a stake in a company in which it`s invested. In this regards, although exit values set new records, the total number of exits declined sharply, and large exits dominated the year`s results. The report added that large, experienced PE-owned companies racked up the vast majority of successful exits and dominated total exit value, while smaller companies had increasing difficulty finding buyers. For example, Bain said, exits involving companies sold for under USD 100 million dropped 58 per cent last year, while those in excess of USD 500 million increased 26 per cent. Kiki Yang, Bain`s co-head of Asia Pacific private equity and co-author of the report, said in an accompanying release that "we're seeing warning signs that suggest the party may be coming to an end, at least for some investors ..... with the risk of global recession and other macro-economic challenges, we expect the market for exits will only get tougher. "Looking forward, three important themes are playing an increasing role in the Asia-Pacific private equity market: the rush to invest in China tech and Internet companies; the use of advanced analytics as a tool to improve fund performance; and a shift toward environmental, social and governance (ESG) and impact investing. It warned however that PE investors are increasingly cautious with China`s Internet-based "new economy" that may be a speculative bubble waiting to burst. The report continued, "The huge volume of private equity and venture capital flowing into China's new economy has oversaturated the lower end of the market, prompting investors to seek larger investments." With trends suggesting that the PE market is beginning to differentiate better-established funds as well as with the gathering macroeconomic uncertainty, revenue growth and multiple expansions in the Asia-Pacific PE market is expected to decline. Less differentiated and smaller funds are the most vulnerable and would be disproportionately affected.

Asia-Pacific private equity: India and China lead deals but fund-raising slowing

Private equity investments in January-March amounted to $3.1 billion through 160 transactions, registering a moderate two per cent decline in terms of deal value over last year, says a PwC report.&nbsp;PwC is India&#39;s one of the leading auditing and consulting firms. 
 
In comparison with the year-ago period, there was a considerable decline of 24 per cent in terms of deals numbers. January-March 2015 quarter had seen 211 deals worth $3.16 billion. 
 
&quot;Indian macros continue to gain health and this is likely to spur M&amp;A and funding activities over the next few months - however we expect this to be sectoral,&quot; PwC India leader Private Equity Sanjeev Krishan said. 
 
A sectoral analysis shows despite a shortfall in big deals in e-commerce, the information technology &amp; IT-enabled services (IT&amp;ITeS) sector continued its dominance with an investment flow totaling $1.26 billion in 92 deals. 
 
&quot;The Digital India programme and ongoing efforts on Smart Cities are driving spending on software and IT services,&quot; Sandeep Ladda, leader - Technology, PwC India said. &quot;The expected growth in the sector will provide more opportunities for investors.&quot; 
 
Banking, financial services and insurance sector (BFSI) came a distant second, attracting $430 million. With a single deal, the travel and tourism sector added $321 million to its account. 
 
&quot;There has been a definite slowdown in the e-commerce/ digital and consumer internet deals and the next few months are likely to see some consolidation in the sector,&quot; Krishan said. 
 
According to PwC MoneyTree India report, a quarterly study of private equity investment activity based on data provided by Venture Intelligence, appetite for private equity continued to be strong with late-stage investments of $1.32 billion invested into mature companies. 
 
Growth-stage investments also played a significant role, attracting $918 million in the first quarter of this calender year, the report said. 
 
From a regional standpoint, Delhi-National Capital Region had an edge over others in January-March with $914 million, whereas Bengaluru saw investments of $875 million. 
(PTI)

Information technology, banking and tourism firms bagged a total of $3.1 billion fund in the first three months of 2016

Private equity investments in January-March amounted to $3.1 billion through 160 transactions, registering a moderate two per cent decline in terms of deal value over last year, says a PwC report. PwC is India's one of the leading auditing and consulting firms. In comparison with the year-ago period, there was a considerable decline of 24 per cent in terms of deals numbers. January-March 2015 quarter had seen 211 deals worth $3.16 billion. "Indian macros continue to gain health and this is likely to spur M&A and funding activities over the next few months - however we expect this to be sectoral," PwC India leader Private Equity Sanjeev Krishan said. A sectoral analysis shows despite a shortfall in big deals in e-commerce, the information technology & IT-enabled services (IT&ITeS) sector continued its dominance with an investment flow totaling $1.26 billion in 92 deals. "The Digital India programme and ongoing efforts on Smart Cities are driving spending on software and IT services," Sandeep Ladda, leader - Technology, PwC India said. "The expected growth in the sector will provide more opportunities for investors." Banking, financial services and insurance sector (BFSI) came a distant second, attracting $430 million. With a single deal, the travel and tourism sector added $321 million to its account. "There has been a definite slowdown in the e-commerce/ digital and consumer internet deals and the next few months are likely to see some consolidation in the sector," Krishan said. According to PwC MoneyTree India report, a quarterly study of private equity investment activity based on data provided by Venture Intelligence, appetite for private equity continued to be strong with late-stage investments of $1.32 billion invested into mature companies. Growth-stage investments also played a significant role, attracting $918 million in the first quarter of this calender year, the report said. From a regional standpoint, Delhi-National Capital Region had an edge over others in January-March with $914 million, whereas Bengaluru saw investments of $875 million. (PTI)

India attracted $3.1 billion worth private equity investment from January to March: PwC

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