US alternative asset managers: Mid-year update: Apollo joins our Buy list

Research evidence excerpt

US alternative asset managers: Mid-year update: Apollo joins our Buy list

20 July 2026

US alternative asset managers EquitiesCapital Markets

Mid-year update: Apollo joins our Buy list United States

◆ The significant derating of the sector year-to-date suggests Vikram Gandhi*, CFA

limited downside risks from here on, in our view Senior Analyst, US Financials HSBC Securities and Capital Markets (India) Private Limited

vikram.gandhi@hsbc.co.in

◆ However, until concrete signs emerge that flows have turned a +91 80 45552430

corner, we prefer names less exposed to private wealth Dmitriy Leskin

Analyst, US Financials

◆ Initiate Apollo with a Buy; retain Buy ratings on BAM and KKR; HSBC Securities (USA) Inc.

dmitriy.leskin@us.hsbc.com

Blackstone remains a Hold; adjust KKR and Blackstone TPs +1 212 525 4110

Private equity: Persistent headwinds have slowed the PE flywheel. The mantra ‘DPI is * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

the new IRR’ has taken hold as LPs prioritize liquidity, while the industry works its way out

of slower exits, a significant backlog of assets and extended holding periods. That said,

size and scale of the platform matter, perhaps even more so, as investors increasingly

gravitate towards established GPs. A de-escalation in geopolitical tensions could broaden

M&A and IPO market activity, which could allow for significant crystallization of embedded

DPI (distributed to paid-in capital) and help the PE flywheel regain momentum.

Private credit: While credit-oriented semi-liquid vehicles have been making headlines,

we estimate they only constitute c11.5% of the USD4.5trn global private credit market

(detailed BDC industry analysis inside the note).