News about Apollo

Apollo Global Management is finalizing a deal to buy nearly a 10% stake in Mubadala Capital, the alternative asset manager subsidiary of Abu Dhabi's sovereign wealth fund Mubadala Investment Company, according to people familiar with the matter. The deal is expected to be announced Monday morning, with financial terms not yet known, and builds on Apollo's 15 years of relationships in Abu Dhabi and its existing partnership with Mubadala Investment Company, including a $2.5 billion private credit joint venture formed in 2023. Mubadala Capital advises and administers over $755 billion in assets, and its alternatives business has grown to more than $60 billion. The article describes the deal as a sign of Apollo investing directly in Abu Dhabi, reversing the usual flow of capital from the Middle East. Spokespersons for both firms declined to comment.

According to Apollo Global Management Chief Economist Torsten Slok, AI has delivered 'zero payoff' to corporate America outside technology despite heavy investment. Revenue per worker is rising for the Mag 7 but is flat for the S&P 493, with similar patterns in profit margins and no sign yet of AI lifting productivity growth. Companies are increasingly viewing token spending as a cost that weighs on margins, while concerns grow over debt-financed AI infrastructure, the collapse of Firmus Grid's IPO after investors balked at a $30 billion valuation, and Gartner's estimate that more than $3.5 trillion of AI infrastructure spending could be impaired by 2030. Slok argues the macroeconomic effects of AI will stay limited as long as agentic AI and token spending remain confined to a small part of the economy.