2024-02-10 03:48:00 ET
Summary
- As the U.S. Federal Reserve loosens its stranglehold, the strategic mania should ease.
- As interest rates shot up, choking off the supply of cheap debt with which to juice deals, earnings dropped.
- Apollo Global Management said on Feb. 8 that it generated $1.2 billion in adjusted net income, its preferred measure of earnings that reflects cash available to be distributed to shareholders, in the fourth quarter of 2023.
By Breakingviews
Carlyle named a new boss; KKR (KKR) embarked on an insurer-merger makeover; Apollo Global Management ( APO ) touted its rise to debt-printing machine. The era of high interest rates choked off deals, cut into earnings, but saw a flowering of strategic shifts among buyout shops. The industry's giants now all have a story to tell about why they're on stronger footing. As the U.S. Federal Reserve loosens its stranglehold, the strategic mania should ease. But as they're showing, buyouts still matter....
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Private Equity Is Getting Its Story Straight