affluence of US private capital distribution chiefs boosted by $56bn

The affluence of US private capital distribution bosses jumped by more than $56bn in 2024 as shares of Blackstone, Apollo and KKR hit recent highs, fuelled by rapid growth and their addition to the main US stake index.

The distribute surge has enriched private ownership pioneers such as Blackstone chief executive Stephen Schwarzman and KKR co-founders Henry Kravis and George Roberts, and spawned a recent set of billionaire dealmakers in the industry ahead of expected deregulation from the incoming Trump administration that could fuel dealmaking and resource growth in 2025.

Among the seven largest listed US private capital distribution firms, gains in shares held by the industry’s top executives and founders were over $56bn, led by the leadership of Blackstone, the globe’s largest alternative manager, according to monetary Times calculations based on community filings.

Blackstone’s top leaders saw their shares rise by $13.5bn in 2024 as its economy worth soared nearly 50 per cent to $214bn.

Its stake was propelled by the growth of its assets, which have soared beyond $1tn. In September 2023, Blackstone became the first private ownership throng included in the S&P 500 index.

Analysts expect Blackstone funds for wealthy private investors in real estate, capital and private ownership to generate lucrative fees in 2025, bolstering profits. Expectations for its act have pushed its evaluation to more than 40 times its distributable returns over the history 12 months, a proxy for the throng’s funds flow.

Most of the growth in executives’ holdings went to Blackstone chief executive Schwarzman, whose stake rose by more than $11bn this year. The holdings of president Jonathan Gray also gained billions in worth, putting his stake at about $7.5bn.

It has also meant two other top executives — private ownership head Joe Baratta and chief monetary officer Michael Chae — held shareholdings worth over $1bn, according to Blackstone’s proxy statement.

KKR shares performed the best of any large private ownership throng in 2024, as its stake nearly doubled due to accelerated donation collection, with nearly $120bn in recent capital distribution over the history 12 months. It was also added to the S&P 500 in June.

The gains cruel the stakes of co-founders Kravis and Roberts both exceeded $12bn. Co-chiefs Scott Nuttall and Joe Bae have also seen their stockholdings soar to about $2.7bn, fuelled by KKR stake’s 30 per cent average annual gain since they assumed leadership in October 2021.

Apollo Global, which was added to the S&P 500 in December, has also seen its stake nearly double in 2024, bolstering shareholdings of chief executive Marc Rowan and co-founders Leon Black and Josh Harris, who both left the firm in 2021. The distribute gains have also created large windfalls for a recent creation of leadership inside Apollo who are now paid mostly in stake.

James Belardi, co-founder and chief executive of Apollo’s insurance unit Athene, which oversees about $350bn, saw the worth of his Apollo shares rise above $1bn this year while Apollo co-presidents Scott Kleinman and James Zelter held shares worth more than $500mn, according to its annual update. The duo were given large stake grants as part of their promotions in 2017 and were in line to jointly navigator Apollo had Rowan left to become the US Treasury secretary under President-elect Donald Trump.

Apollo’s next creation of leadership has also benefited from the leap in the distribute worth. In September 2023, Apollo granted $550mn of restricted stake units to a leadership throng of John Zito, deputy chief resource officer of capital, Grant Kvalheim, president of Athene, and two elder private ownership partners, Matt Nord and David Sambur. The worth of that award has since roughly doubled to more than $1bn.

However, in recent months, executives like Kleinman, Belardi, Zelter and Rowan have either sold large blocks of Apollo stake or signalled their intent to do so.

The top executives at Ares, TPG and Blue Owl all saw their shares boost by over $4bn in worth in 2024, according to FT calculations, bolstered by distribute gains of 50-65 per cent.

In addition to stake gains, private capital distribution executives stand to earn large windfalls from quarterly dividends on their shareholdings. Collectively, top executives at the seven firms have received nearly $3bn in dividends this year, according to FT calculations.