Meet the “Master of the Universe” who leads a private credit explosion
Venture capitalists love the spotlight. They’re on X, in the White House, and are constantly following Series A coverage.
Today’s VCs hold an incredible amount of cultural capital, and for good reason, they are often committed to funding not only our economy but many companies that embrace our social structures, and shaping the trends of tomorrow. Still, I am always amazed at the size of the private equity industry, as they represent just a small part of the broader investment environment.
I’ve spent the past few months Report ARES Management is an alternative asset manager woven from Apollo in the late 1990s. Originally, I was interested in the company because of my role in the booming field of private credit.
Ares’ bread and butter business lends to other alternative asset companies such as KKR and Apollo, raising funds to fund acquisitions of middle market companies that most venture companies will never be interested in (but change), and sometimes a small fairness bet. This strategy has become widespread, particularly after the financial crisis of 2008, with ARES aiming to increase its managed assets to $750 billion by 2028. Compare that. Insight Partnerone of the large venture players who dabbles in private equity for $90 billion.
Similarly TokenizationPrivate credit plays an increasingly larger role in the economy as companies have either taken time to make it public or decided not to make it public at all. Rather than relying on the open market to raise funds, companies like Ares are waiting on the wings, so they must look at other measures.
For everyday investors, it limits the types of companies they can put money in. However, some companies like Apollo are beginning to provide vehicles and tokenized funds, such as ETFs, which provide access to private companies. Critics argue that lack of transparency creates potential problems.
Companies like Ares may have less name recognition than Sequoia and Andreessen Horowitz, but they definitely play a major role in shaping how money in our economy moves (and they have three ARES executives taking on a higher profile within the new Baltimore Orioles Leadership Group through sports). These are the “Master of the Universe” famously written by Tom Wolf in the 1987 Wall Street Classic vanity bonfirehowever, they are often more hidden from sight. you can Please read my features The rise of Ares, including the unique structure of CEO and two co-chairmen, leads the next era of growth.
Leo Schwartz
X: @leomschwartz
Email: leo.schwartz@fortune.com
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Venture deals
– Herodefa Sandy, Utah-based security solutions provider raised $125 million. psg Leading the round, with existing investors joining album.
– root evidencea Boise, Idaho-based cybersecurity company raised $12.5 million in seed funding. Ballistic Venture Leading the round and participating Grossman Venture.
– Drizzlea mobile app testing agent based in Bengaluru, India, has raised $2.7 million in seed funds. Stellaris Venture Partners and Shastra VC They led the round and others joined in.
– cvectora Boston-based industrial AI company raised $1.5 million from Circuit diagram Venture.