The world's biggest private equity, real estate and private credit investment management firms Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. are lagging the global stock markets recovery. Furthermore, Blackstone, KKR, Apollo, Carlyle, Ares, CVC are undervalued according to Wolfteam Ltd.'s projections and estimates.
Most of Blackstone, KKR, Apollo, Carlyle, Ares, CVC's private equity, private credit and real estate investments are tied to mid market and smaller technology companies active in artificial intelligence, AI. Large part of Blackstone, KKR, Apollo, Carlyle, Ares, CVC's investment flows go indirectly toward the Magnificent 7 AI technology companies, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla via investments in technology data centers and other AI infrastructure.
While Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla's stocks prices outside Tesla have recovered, the stock market capitalization of Blackstone, KKR, Apollo, Carlyle, Ares, CVC remain around 25 % below their recent peaks.
The artificial intelligence, AI trade is in full swing and it makes no sense for Blackstone, KKR, Apollo, Carlyle, Ares, CVC, which have invested heavily in artificial intelligence, AI to be left behind in terms of stock market capitalization recovery, in Wolfteam Ltd.'s view.
If anything, due to the leveraged private equity buyout nature of their investments Blackstone, KKR, Apollo, Carlyle, Ares, CVC should recover even quicker than the Magnificent 7 AI technology companies, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla or the general stock market.