Apollo Global Management Sees Unprecedented AI Capital Demand, Piper Sandler Sets $165 Target
Apollo Global Management CEO Marc Rowan predicts that generative AI will create the largest capital demand ever and reveals the firm holds no software assets in its private equity portfolio. Piper Sandler held an Overweight rating and $165 price target based on full-stack strategy and 10% SRE, 20% FRE growth.
1. CEO Forecasts Unprecedented AI Capital Demand
Apollo Global Management CEO Marc Rowan predicted that generative AI will create the largest capital requirement ever and noted that the firm currently holds no software assets within its private equity portfolio, highlighting a deliberate focus on other sectors.
2. Piper Sandler Reaffirms Rating, Sets Growth Objectives
Piper Sandler maintained an Overweight rating on Apollo and set a $165 price target, citing the firm’s full-stack risk and asset originator strategy that has driven strong cash flow. The firm reiterated Apollo’s targets of 10% spread-related earnings growth and 20% fee-related earnings growth alongside 100 basis points of annual FRE margin expansion.