Apollo’s Marc Rowan criticizes Europe’s financial policies, says region is “fighting itself”

Apollo Global Management chief executive delivers scathing criticism of European regulatory system in new interview. Marc Rowan, CEO of the $600 billion alternative asset manager, cautions that European markets are being smothered by over-regulation, which is inhibiting growth and preventing Europe from competing on an even playing field with the United States markets.

How Europe’s regulatory system harms economic competitiveness

Marc Rowan argues that the European continent is faced with the very essence of the contradiction between its political aspirations and regulatory landscape. While in public, European leaders endorse risk-taking, equitization, and private markets development, the regulatory environment tells a different story. The schizophrenic strategy creates barriers that impede real progress towards the economic reforms needed for investment attraction and the recovery of the region’s struggling economy.

Apollo’s CEO spoke of the way in which European governments and firms increasingly seek private groups of capital to compete more successfully within their high-technology industries of high technology. But regulation remains a hindrance, and there is also the self-destructive dynamic Rowan identifies as a “diplomacy of regulatory exhaustion” that contradicts the stated European aim of greater economic independence and technological sovereignty.

Specific regulatory issues for European markets

• Excessive compliance constrains private capital deployment
• Disaggregated national regulations impose operational complexity
• Risk-averse steps discourage investment and innovation
• Bureaucratic systems discourage market development initiatives

Why Apollo believes there is a massive opportunity despite regulatory concerns

While he denounces regulatory policy in Europe, Rowan acknowledges good opportunities in regional markets. Apollo sees opportunity at $15 trillion for family wealth in Europe and the Middle East, or a humongous market opportunity for private capital managers. Apollo has just initiated three new private capital funds to target rich individual investors in Europe to take private credit, diversified credit, and private markets secondaries.

These emerging wealthy demand at least a €10,000 investment, with five percent quarterly redemption caps and monthly capital contributions. This calculated step places Apollo directly in competition with other giant companies like Blackstone and Ares Management, which similarly target affluent European citizens with the same amount.

“I do see Europe to a large degree in conflict with itself when it comes to financial regulation. You have politically all the indications of embracing risk-taking, equitisation, and private markets. [But] when it comes to regulation, not so much” – Marc Rowan

European private market competitive landscape

Apollo has to compete with tough competition from established incumbent operators in European markets. Blackstone’s ECRED fund manages €2.7 billion of assets, and Ares’ equivalent fund manages €4.6 billion, illustrating the enormous size of established market operators and competitive forces Apollo has to contend with.

What Europe needs to unlock private capital potential

Rowan is of the view that European leaders have to bridge the gap between political rhetoric and regulatory action in pursuit of their economic dreams. The continent needs huge amounts of capital to construct self-paying infrastructure, defense, and technological supremacy, but existing regulatory regimes are getting in the way of private capital flows necessary to achieve that.

Ex-European Central Bank president Mario Draghi had previously warned of an “existential threat” if Europe didn’t increase productivity and competitiveness. Rowan estimates that if Europe can overcome its regulatory issues, the continent may see far more explosive growth in private capital usage than the United States, primarily due to greater demand for this type of investment from European economies.

Investment requirements across key sectors

Apollo’s expansion into European markets reflects broader industry recognition that, despite regulatory challenges, the region offers compelling long-term opportunities for private capital deployment. Success will depend on Europe’s ability to align its regulatory framework with its stated economic objectives and competitive aspirations.