The fortunes of US sovereigns have increased by $56bn

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The wealth of US private equity managers rose by more than $56bn by 2024 as shares of Blackstone, Apollo and KKR hit new highs, boosted by rapid growth and their contribution to the main stock index of US.

The growth of the segment is strong private equity Pioneers like Blackstone CEO Stephen Schwarzman and KKR co-founders Henry Kravis and George Roberts, and have introduced a new group of billionaire traders in the industry ahead of the expected takeover from the incoming Trump administration. which can stimulate business and asset growth by 2025.

Among the seven largest companies listed in the US capital, the profit of the shares held by the directors and founders of the industry was more than $56bn, led by the leadership of. Blackstonethe world’s largest manager of other brands, according to Financial Times figures based on public files.

Blackstone’s top executives saw their shares rise by $13.5bn by 2024 as the market value rose almost 50 per cent to $214bn.

Its property was managed by the growth of its resourceswhich have risen to more than $1tn. 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 in real estate, credit and private equity to generate higher returns in 2025, boosting profits. Expectations for its performance have pushed its value to more than 40 times its distributable earnings over the past 12 months, a proxy for the group’s cash flow.

Most of the growth of the officers went to the chief executive of Blackstone Schwarzmanwhose assets have risen to more than $11bn this year. President Jonathan Gray’s assets have also gained billions in value, putting his net worth at around $7.5bn.

It also means that two other top executives – head of private equity Joe Baratta and chief financial officer Michael Chae – have shares worth more than $1bn, according to a statement from a Blackstone representative.

KKR shares have performed better than any other major private equity group in 2024, as its stock has nearly doubled on the back of an acceleration in fundraising, with around $120bn in new capital in recent months 12 ago. It was added back to the S&P 500 in June.

Profits mean that the funds of Kravis and Roberts’ partners both exceed $12bn. Co-chairmen Scott Nuttall and Joe Bae have also seen their stocks rise to $2.7bn, boosted by KKR’s 30% return in the year since they took the helm in October 2021.

Apollo Global, which was added to the S&P 500 in December, also saw its stock almost double by 2024, boosting the shares of chief executive Marc Rowan and co-founders Leon Black and Josh Harris, both of whom left the firm in 2021. The gains also created significant windfalls for a a new generation of leadership inside Apollo who are now paid the most in stock.

James Belardi, co-founder and chief executive of Athens-based insurance arm Apollo, which oversees about $350bn, has seen the value of his Apollo shares rise above $1bn this year as presidents- Apollo partners Scott Kleinman and James Zelter had shares worth more than $500. mn, according to its annual report. The two were given large stock grants as part of their announcements in 2017 and were in line to jointly lead Apollo for Rowan to become US Treasury secretary under President-elect Donald Trump. Trump.

The next generation of Apollo leadership also benefited from the jump in share price. In September 2023, Apollo assigned a leadership team of John Zito, deputy chief executive officer of credit investments, Grant Kvalheim, president of Athens, and two senior private partners, Matt Nord and David Sambur. The value of that award has since nearly doubled to more than $1bn.

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

The top executives at Ares, TPG and Blue Owl all saw their shares gain more than $4bn in value by 2024, according to FT figures, boosted by share gains of 50-65%.

In addition to stock dividends, private equity fund managers stand to receive large dividends from quarterly dividends on their shares. In total, the top executives of the seven firms received almost $3bn in dividends this year, according to FT figures.