Wealth of US private capital chiefs boosted by $56bn

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U.S. private equity executives’ wealth grew by more than $56 billion in 2024 as shares of Blackstone, Apollo and KKR hit new highs, fueling rapid growth and their addition to the main U.S. stock index.

Stocks have grown rich private equity pioneers such as Blackstone CEO Steven Schwartzman and KKR co-founders Henry Kravis and George Roberts, and created a new group of billionaire dealmakers in the industry ahead of expected deregulation from the incoming Trump administration that could spur deal-making and asset growth in 2025 :

Among the seven largest listed US private equity firms, the industry’s top executives and founders’ equity gains exceeded $56 billion under management leadership. Blackstonethe world’s largest alternative manager, according to Financial Times estimates based on public filings.

Blackstone’s top executives saw their shares rise by $13.5 billion in 2024 as its market value rose nearly 50 percent to $214 billion.

Its stock has moved growth of its assetswhich grew to more than $1 trillion.In September 2023, Blackstone became the first private equity group to be included in the S&P 500 index.

Analysts expect Blackstone’s funds for wealthy private investors to generate lucrative fees in real estate, credit and private equity in 2025, boosting earnings. Its performance expectations have driven its valuation to more than 40 times trailing earnings. which is a proxy for the group’s cash flows.

Blackstone’s chief executive accounted for most of the increase in executive holdings Schwarzmanwhose stock has risen by more than $11 billion this year.Chairman Jonathan Gray’s fortune has also gained billions, with his share amounting to about $7.5 billion.

It also means two other top executives, private equity head Joe Baratta and CFO Michael Chai, owned more than $1 billion in shares, Blackstone said in a proxy statement.

Shares of KKR performed the best of any large private equity group in 2024, as its shares nearly doubled on accelerated fundraising with about $120 billion in new capital over the past 12 months.It was also added to the S&P 500 in June.

The gains mean that co-founders Kravis and Roberts’ stakes have both topped $12 billion.Co-chairmen Scott Nuttall and Joe Bae have also seen their holdings rise to about $2.7 billion, contributing to KKR’s average annual return of 30 percent. , as they rule in October 2021.

Apollo Global, which was added to the S&P 500 in December, also saw its stock nearly double in 2024, boosted by CEO Mark Rowan and co-founders Leon Black and Josh Harris, who both left the company in 2021. The acquisitions also brought big windfalls have created a a new generation of leadership Inside Apollo who are now paid mostly in stock.

James Belardi, co-founder and chief executive of Apollo’s insurance unit Athene, which oversees about $350 billion, has seen his Apollo stake rise to more than $1 billion this year, while Apollo co-chairmen Scott Kleinman and James Zelter have more than $500 worth of shares, according to its annual report. The duo were given large stock grants as part of their promotions in 2017 and were set to co-lead Apollo if Rowan left to become US Treasury secretary under President-elect Donald Trump.

Apollo’s next-generation leadership also benefited from the stock price jump. In September 2023, Apollo issued $550 million in restricted stock to John Zito, Athene’s chief investment officer, Grant Kwalheim, and two senior private equity partners, Matt Nord and David Sambour. : That prize has since doubled to more than $1 billion.

However, in recent months executives such as Kleinman, Belardi, Zelter and Rowan have either sold large blocks of Apollo stock or signaled their intention to do so.

The top executives of Ares, TPG and Blue Owl have seen their stakes increase in value by more than $4bn by 2024, according to FT estimates, with stakes rising between 50 and 65 per cent.

In addition to stock gains, private equity executives can get big windfalls from their quarterly stock dividends, with the top executives of seven companies taking home nearly $3 billion in dividends this year, according to the FT.