Why the Traditional Investing Model Is “Broken” and What Comes Next
Marc Rowan, CEO of Apollo Global, recently made headlines when he declared the traditional investing model “broken.” His point is clear: investors who still rely solely on the old 60/40 stock-and-bond portfolio are missing the bigger picture.
The rise of private markets and private credit is reshaping how growth gets financed — and how investors can capture returns. Giants like Apollo, Blackstone, and KKR now control over $2.6 trillion in assets under management, more than quadruple their size just a decade ago.
Why Public Markets Aren’t Enough Anymore
Rowan notes that the U.S. stock market is dominated by just a handful of mega-tech names. In fact, 10 companies now make up 40% of the S&P 500. That hardly represents the full strength of the American economy.
Meanwhile, the number of publicly listed companies has been cut in half since the 1990s, shrinking investors’ options for true diversification. Bonds aren’t providing the balance they once did either, as stock and bond correlations have increased.
The conclusion? Investors looking for resilience and higher yield need to broaden their toolkit — and alternatives are stepping into that role.
The Rise of Private Credit and Alternatives
Private credit — once the domain of pensions, sovereign wealth funds, and endowments — is booming. With yields that can reach 15% or more, institutional money has poured in. Companies like Meta, Intel, AT&T, and Air France are increasingly bypassing banks in favor of direct financing from private credit leaders such as Apollo and Blue Owl.
Rowan challenges the old assumption that “public is safe and private is risky.” Instead, he suggests that both markets have their risks and safety — the real difference is liquidity. And with new fund structures and ETFs emerging, even the liquidity gap is narrowing.
Source: CNBC
Disclaimer: All investments involve risk, including possible loss of principal. Past performance is not indicative of future results.
What This Means for Everyday Investors
For decades, the best private market opportunities were locked away for institutions and the ultra-wealthy. But that wall is coming down.
Platforms like Alture Funds now make it possible for individual investors to access top-tier alternatives from industry-leading sponsors — with starting investments as low as $2,500.
The Bottom Line
Marc Rowan’s warning is a wake-up call: clinging to outdated models won’t cut it in today’s markets. The future belongs to investors who embrace alternatives.
And thanks to Alture Funds, the doors to industry-leading alternative investments are finally open to everyday investors — delivering access, diversification, and yield once reserved for the world’s largest institutions.
👉 Explore opportunities today at alturefunds.com.
