Private-equity watchdog warns against nominating Marc Rowan as Treasury Secretary
Industry watchdog the Private Equity Stakeholder Project (PESP) has issued a statement decrying President-elect Donald Trump’s potential appointment of Marc Rowan to a role in the U.S. Treasury, citing his leadership in a private equity firm that has an extensive “highly indebted” hospital footprint.
While Rowan, CEO of Apollo Global Management, has yet to be officially nominated to the cabinet of the incoming Trump administration, Business Insider and other media outlets have reported that he is lobbying hard for a position.
According to PESP, Rowan's appointment would present a serious conflict of interest.
“Rowan’s consideration for Treasury Secretary raises concern given the extensive oversight the position has over the private equity industry and the high level of scrutiny already placed on his firm’s healthcare and retail investments,” the group wrote in its statement.
“In the healthcare sector, Rowan’s Apollo has an extensive hospital footprint, owning approximately 220 hospitals across 36 states through the companies Lifepoint Health and ScionHealth,” PESP added.
According to them, many of those hospitals are carrying heavy debt loads and have “cut operating costs and charity care” to compensate. “[U]nder Apollo’s ownership, Lifepoint and ScionHealth have taken on substantial debt and are now subject to high credit risk,” PESP argued, adding that the private equity firm could be running up against antitrust laws with some recent acquisitions.
Apollo's bankrupt history
As part of its nonprofit work, PESP releases regular reports that detail the influence private equity firms have on social infrastructure, particularly healthcare. On the organization’s Labor Scorecard, which ranks the impact investment entities have on workers' rights, Apollo received a low “D” rating, with PESP noting that it was associated with eleven bankruptcies over the past decade—the highest number of any firm in the rankings.
“In recent years, Apollo has taken companies employing tens of thousands of workers into bankruptcy, including Caesars Entertainment, Linens ‘n Things and Edge,” PESP wrote. “Additionally, Apollo had a low number of unionized workers in its portfolio companies’ workforce, as well as a high number of unfair labor practice violations it settled.”
Those labor violations stem, in part, from Cardenas Markets, a chain of supermarkets owned by Apollo. Cardenas has settled multiple class-action lawsuits for $10.5M, according to a 2023 report from the American Federation of Teachers. Claims against the company included poor working conditions and illegal union-busting.
Cardenas has not admitted to wrongdoing, despite agreeing to pay out settlements.
Going forward, PESP said Apollo is likely to make more investments in healthcare and other sectors in the near future. Even if Rowan steps down to become Treasury Secretary, he would still be in a position to advance policy that benefits his company. If nominated and confirmed to the role by the Senate, Matt Parr, PESP’s Communications Director, said he fears Rowan would be in the position of a "fox [chosen] to head up oversight of the hen-house."
“Under Rowan’s leadership, Apollo’s investments have been scrutinized by lawmakers and regulators and introduced financial risks for the firm’s investors,” Parr said. “Private equity investments have come with substantial hazards to investors and communities alike.”
“A private equity billionaire with the keys to the government’s coffers is another risk the country can’t afford,” he warned.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.