Trump Treasury Contender Linked to Wall Street’s Fiercest Private Equity Firm

Marc Rowan, CEO of Apollo Global Management and a potential nominee for Treasury Secretary, would be uniquely positioned to bolster the private equity industry that built his billion-dollar fortune.

Marc Rowan, the CEO of Apollo Global Management and a potential nominee for Treasury Secretary under Donald Trump, is a prominent figure in the private equity world—an industry often characterized by aggressive, profit-driven practices. If selected and confirmed, Rowan’s appointment would mark a significant triumph for one of the most influential and controversial sectors in finance.

At 62, Rowan oversees Apollo, a private equity giant managing over $700 billion in assets, with ambitions to double that by 2029. The firm has built its reputation as one of Wall Street's most relentless players, specializing in distressed debt and leveraging businesses with high levels of debt. Rowan’s personal fortune, estimated at $11 billion by Bloomberg, places him among the wealthiest financiers in the industry.

As Treasury Secretary, Rowan would play a critical role in shaping financial regulation. He would lead the Financial Stability Oversight Council (FSOC), which is tasked with monitoring risks in the “nonbank” financial system—a category that includes private equity. The Treasury also houses agencies like the IRS and the Office of the Comptroller of the Currency (OCC), which oversee tax collection and banking regulation. Rowan’s leadership could ensure these entities continue their historically hands-off approach to private equity, a trend consistent across Democratic and Republican administrations.

The regulation is really not there - said Bill Lazonick, president of the Academic-Industry Research Network. He pointed out the opaque nature of private equity, where ownership and operations are hidden behind complex corporate structures. Critics fear Rowan’s potential influence could further entrench this regulatory leniency.

A Mixed Legacy of Industry Leaders in Government

It’s not uncommon for industry titans to transition into roles regulating their former domains. The results of such appointments have often been contentious. While it’s unclear how Rowan would approach the role, his deep ties to private equity raise concerns about potential conflicts of interest.

Megan Greenwell, a journalist and author of the upcoming book Bad Company, describes private equity as a sector that thrives on discretion. “People are not necessarily going to know the ways in which private equity affects their lives until there is some sort of crisis,” she said. Indeed, private equity firms operate in the “private capital” market, a $24 trillion industry that rivals the size of the U.S. stock market but lacks equivalent regulatory oversight.

The Private Equity Model: High Risk, High Reward

Private equity firms like Apollo buy struggling companies, restructure them, and eventually sell them for profit. However, the process often involves significant downsides for workers and communities. Acquisitions are typically financed through heavy borrowing, with the debt burden shifted to the acquired company. For example, when Red Lobster was acquired by a private equity firm, its real estate was sold for profit, only for the company to pay rent on the same properties—an arrangement that inflated operating costs and strained finances.

Research shows that firms acquired by private equity are ten times more likely to go bankrupt than their peers, often due to the high debt levels imposed by their new owners. Workers frequently bear the brunt of these financial pressures through layoffs and aggressive cost-cutting measures.

Dennis Kelleher, president of the nonprofit Better Markets, warns that Rowan’s appointment would exacerbate these issues. “The private equity industry is grossly under-regulated, and its business model is based on extreme leverage and wealth extraction,” he said, adding that it often enriches itself at the expense of workers and communities.

Apollo’s Aggressive Strategy

Apollo’s approach epitomizes private equity’s high-stakes nature. The firm has built its success by leveraging businesses to the brink of default while offering creditors minimal protections. This aggressive strategy has made Apollo one of the most powerful players in the industry, but it has also drawn criticism for prioritizing profits over stability and sustainability.

If Rowan were to assume the role of Treasury Secretary, his tenure could cement private equity’s influence in U.S. financial policy. Critics argue that such an appointment would place the interests of Wall Street over those of everyday Americans, potentially allowing private equity firms like Apollo to continue operating with minimal oversight.

Private equity deals were once dominated by big banks, but the 2008 financial crisis reshaped the landscape. As increased regulation made traditional banks more risk-averse, firms like Apollo Global Management stepped in to handle deals that banks avoided. This shift has transformed private equity into a powerful economic force, with the industry managing over $8 trillion in assets last year.

Today, private equity controls key stakes in industries ranging from housing and healthcare to supermarkets and restaurants. However, the sector’s complex and opaque financing methods have drawn scrutiny from regulators and lawmakers, who view it as a potential threat to financial stability.

Senator Elizabeth Warren and other Democrats have introduced legislation to hold private equity firms accountable for their portfolio companies’ actions and protect employees affected by job cuts. Yet these efforts have faced significant resistance, struggling to gain bipartisan support. A recent federal appeals court ruling also struck down an SEC initiative aimed at increasing industry transparency.

As of Thursday, the president-elect had not named a Treasury Secretary, though Marc Rowan of Apollo, hedge fund manager Scott Bessent, and former Fed governor Kevin Warsh were reported as frontrunners. Journalist Megan Greenwell warned that if Rowan or another Wall Street insider is chosen, private equity's influence will only continue to grow unchecked.