Shares of Blackstone and Apollo Global Management rose on Tuesday as investors welcomed fresh signs of deal-making at two of the world's biggest alternative-asset managers. Blackstone is lining up a secondary sale in its $57.7 billion property fund, while Apollo is in discussions with SoftBank to expand an existing loan tied to OpenAI to as much as $9 billion.
The moves come at a time when many investors are watching for signs that capital is still flowing through private markets, even as interest rates and economic uncertainty have made big transactions harder to complete.
What's happening at Blackstone
Blackstone's plan involves a secondary sale in its $57.7 billion real estate fund. In a secondary sale, an investment manager sells existing stakes in a fund to other investors, rather than raising new money from scratch. This can provide liquidity to current investors who want to cash out, while allowing new investors to buy into a fund that already holds a portfolio of properties.
For Blackstone, the move is a way to manage one of the largest real estate funds in the world. The fund has been under pressure in recent years as higher interest rates weighed on property values and made it harder for investors to exit. A secondary sale could help the firm return capital to clients and demonstrate that it can still find buyers for large assets.
Blackstone has been active in other areas too. Earlier this year, the firm was part of a bidding war for GFL Environmental, and it has backed a venture with Google to seek a $22 billion loan for AI chips. Those efforts show the firm is looking for growth beyond traditional real estate.
Apollo's OpenAI-linked loan expansion
Apollo is reportedly talking with SoftBank about increasing a loan that is tied to OpenAI, the artificial intelligence company behind ChatGPT. The loan could grow to $9 billion, up from its current size. The exact terms and current balance were not disclosed in the brief.
This is part of a broader trend where private credit firms like Apollo are stepping in to finance large AI-related projects. AI companies need huge amounts of capital to build data centers and buy expensive chips, and traditional banks are not always willing to take on that risk alone. Apollo has been backing AI hardware startups with early checks and debt plans, and this loan expansion would be another example of that strategy.
SoftBank, a major investor in OpenAI, has been looking for ways to fund its AI ambitions. Expanding the loan would give SoftBank more flexibility, while Apollo would earn interest on a larger loan. For Apollo, it's a way to put more money to work in a fast-growing sector.
Why the shares jumped
Both companies saw their shares rise after the news. For alternative-asset managers, investor confidence is everything. These firms rely on clients committing long-term money to their funds, and on lenders being willing to finance their deals. When they announce credible transactions, it signals that capital is still moving, even in a choppy market.
That's especially important right now. Rising bond yields and uncertainty about central bank policy have made some investors cautious. But Blackstone and Apollo are showing that they can still structure deals that attract capital.
What it means for investors
For everyday investors, the news is a reminder that private markets are still active, even when public markets are volatile. Blackstone and Apollo are not just stock tickers; they are managers of large pools of money that invest in real estate, private companies, and debt. Their ability to do deals affects the returns they can generate for their own investors, which include pension funds, endowments, and wealthy individuals.
If you own shares of Blackstone or Apollo through a mutual fund, ETF, or direct purchase, the rise in their stock price is a positive sign. But it's important to remember that these companies can be sensitive to interest rates and economic cycles. A slowdown in deal-making could hurt their earnings, just as a pickup could boost them.
For those who invest in private funds directly, the secondary sale at Blackstone could be a way to get liquidity, but it's not something most retail investors can access. The Apollo loan expansion is more of a sign of the growing role of private credit in financing big projects, a trend that could continue as banks pull back from riskier lending.
Looking ahead
Investors will be watching to see if these deals close and whether they lead to more activity. Blackstone's secondary sale could set a precedent for other large real estate funds facing similar pressures. Apollo's loan expansion could signal that private credit is becoming a bigger player in AI financing.
Both firms are also involved in other high-profile deals. Blackstone is part of a bidding war for GFL Environmental, and its venture with Google is seeking a massive loan for AI chips. Apollo has been in talks to expand the OpenAI-linked loan for some time, and this news confirms that those discussions are progressing.
For now, the market is taking the news as a positive sign that these firms can still execute big transactions. Whether that translates into long-term gains will depend on how the deals are structured and how the broader economy performs.
