Private Equity Fortunes Soar on Prospect of Washington Gridlock

For some, gridlock isn’t always bad news.

Private equity managers and their investors, who were concerned about progressive plans to increase taxes and regulation on their industry, are relieved the expected “blue wave” scenario that would have handed Democrats control of the presidency and both chambers of Congress now looks unlikely.

That’s led to jumps in the fortunes five of the wealthiest private equity titans at publicly traded firms since the election as stock prices rose. Apollo Global Management Inc.’s Leon Black, Blackstone Group Inc.’s Steve Schwarzman, Carlyle Group Inc.’s David Rubenstein, Ares Management Corp.’s Tony Ressler ...