The stocks, respectively the market capitalization of the world's leading private equity firms Blackstone, KKR, Apollo, Carlyle, Ares, CVC, Blue Owl etc. have fallen around 30 % - 40 % from their recent peaks.
Many market and Wall Street equity research analysts forecast that due to the leveraged nature of private equity investments, the leading private equity investment management firms KKR, Apollo, Carlyle, Ares, CVC, Blue Owl etc. will be disproportionately negatively affected by the current stock markets slump.
While in the short-term private equity firms' investments may suffer by a higher margin, in the long-term due to the widening of corporate debts spreads to treasuries and the mergers and acquisitions(M&A) leveraged buy-outs(LBOs) pent up demand coming to fruition later this year KKR, Apollo, Carlyle, Ares, CVC, Blue Owl etc. will recover more strongly than the rest of the US and global stock markets on the realization that tariffs are a long-term negotiation tactic of President Donald Trump's administration, according to Wolfteam Ltd.'s projections and estimates.
KKR, Apollo, Carlyle, Ares, CVC, Blue Owl etc due to lower liquidity for corporate M&A, LBO deals and widening of credit spread will go on displacing banks in doing deals with and lending to risky mid-market firms, even large corporations in Wolfteam Ltd.'s view. And private credit is in a huge boom phase, the development of which will propel KKR, Apollo, Carlyle, Ares, CVC, Blue Owl's stocks eventually higher.
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