LionTrust fund manager, Storm Uru says some of the most compelling opportunities for investors in search of durable growth amidst persistent macro uncertainty may be in the private equity space.
According to Storm Uru, recent pullback in private equity stocks like Blackstone Inc (NYSE: BX) and Apollo Global Management (NYSE: APO) spells opportunity for long-term investors to build a position in those sector giants at a discount.
In his recent interview with CNBC, Uru dubbed BX and APO as standout buys for the back half of 2025, given their structural potential in infrastructure, data centers, and computing.
Why is LionTrust bullish on Apollo Global stock?
Apollo remains a key player in the alternative investment landscape, with a strong focus on credit, real assets, and retirement services.
Uru favours owning APO on its pivotal role in enabling capital-intensive infrastructure growth, particularly around data centre expansion and compute capacity, sectors expected to see massive funding over the next decade.
“Over the next 10 years a significant amount of capital is needed to build out these assets,” Uru said, pointing to the long-term funding gap in digital infrastructure.
Apollo’s unique combination of asset management and permanent capital gives it both stability and scale, making it well-positioned to benefit from global structural shifts.
LionTrust’s fund manager remains bullish on Apollo Global stock even though the asset manager reported weaker-than-expected earnings for its fiscal Q1 last month. Its revenue also came in down 21% on a year-over-year basis at the time.
Additionally, APO shares remain unattractive for income investors as they do not currently pay a dividend.
Why is Storm Uru bullish on Blackstone stock?
Blackstone, the world’s largest alternative asset manager, also earns a spot on LionTrust’s buy list.
The firm’s diversified exposure across private equity, real estate, infrastructure, and credit allows it to capitalize on multiple macro trends, including rising demand for digital infrastructure and private credit.
“The long-term structural case for these companies is really exceptional,” Uru noted. Despite recent weakness in its share price, Blackstone’s underlying business remains robust, with strong fundraising capabilities and deep institutional relationships, he added.
Uru believes BX will be instrumental in funding the next generation of compute and data center buildouts, sectors poised for multi-year investment cycles, making Blackstone stock worth owning for those who believe in the continued growth of private markets.
Finally, he recommends owning Blackstone shares for the strength of the company’s financials. In April, the asset manager acknowledged potential disruption due to Trump tariffs but reported Q1 profit that handily topped Street estimates.
Note that BX shares currently pay a healthy dividend yield of 2.89%, which makes them all the more exciting to own for those interested in setting up an additional source of passive income.
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