Apollo Faces CEO Question and Golden Moment If Trump Picks Rowan as Treasury Chief

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(Bloomberg) -- Apollo Global Management Inc. Chief Executive Officer Marc Rowan’s potential next act as US Treasury secretary would thrust the firm he co-founded into an entirely new era of leadership. It may also help unlock trillions of dollars for its hottest business line.

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In the roughly three years since co-founders Leon Black and Josh Harris left the company, Rowan has helped transform Apollo from a feared distressed-debt investor into a buzzy, money-spinning lending machine that rivals Wall Street’s banks. He also ushered in an era of stability and prosperity after a tumultuous power struggle. During his tenure, assets have soared to $733 billion, and its stock has more than tripled.

“We actually outgrew Apple, we outgrew Microsoft, we outgrew almost every growth company you could think of,” Rowan said of the firm’s trajectory since the financial crisis at an investor day last month.

If selected, Rowan’s exit would trigger a leadership change that would put a non-founder in charge for the first time in its 34-year history. But Rowan would move into a position with the sway to open up private markets to a broader range of investors. That could supercharge growth of both Apollo and the booming $1.6 trillion private credit market, which has attracted investors seeking higher returns but also faced questions over transparency and complexity.

Rowan, who interviewed with President-elect Donald Trump on Wednesday, is one of several candidates auditioning for the role. Others include former Soros Fund Management investor and hedge fund founder Scott Bessent and former Federal Reserve Governor Kevin Warsh, both of whom also met with Trump.

None of the conversations spurred the president-elect to announce a decision by Wednesday night.

Apollo shares fell as much as 4.4% on Wednesday but were roughly flat at 10:55 a.m. in New York on Thursday.

Senator Bill Hagerty, a Tennessee Republican who served as ambassador to Japan during Trump’s first term, spent time in Palm Beach earlier this week and traveled to Texas on Trump’s plane to watch Elon Musk’s SpaceX launch its Starship rocket. Already seen as a dark-horse candidate, Hagerty didn’t inspire Trump to call off his search.

The Trump transition team declined to give a timeline for naming a nominee.

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