Private Equity Firms Hold Majority Stake in Rackspace Technology

Rackspace Technology, a US-based company, has seen a 14% loss last week, affecting both individual investors and institutions. Private equity firms hold a significant 55% of the company, with Apollo Global Management owning the majority. Institutions own 22% of the company. The ownership structure suggests private equity firms have a greater say in management and business strategy.

Rackspace Technology, a US-based company listed on the NASDAQ, has experienced a significant market cap drop, with a 14% loss last week. This decline affected both individual investors and institutional stakeholders. The ownership structure of the company, with private equity firms holding a substantial 55% stake, suggests that private equity firms have a significant influence over the company's management and business strategy [1].

Apollo Global Management, Inc. is the largest shareholder, owning 55% of the company's shares. This significant stake implies that the company's future decisions are heavily influenced by Apollo Global Management. Institutions hold 22% of the shares, indicating a degree of credibility in the investment community, but also highlighting the potential for swift share price fluctuations if multiple institutions change their view on the stock [1].

The ownership breakdown also includes 21% held by the general public, including retail investors. This group, while not controlling the company, can still exert influence on how it is run. Insiders collectively own 1.0% of the company, aligning with the management team but not holding a substantial enough stake to control the company's direction [1].

The private equity ownership structure suggests that Apollo Global Management and other private equity firms may have a shorter investment horizon, potentially leading to strategic changes or exits in the future. However, the company's performance and future prospects are multifaceted and depend on various factors, including earnings history and analyst sentiments [1].

References:
[1] Simply Wall St. (July 25, 2025). Rackspace Technology's Market Cap Drop Reflects Private Equity Influence. Retrieved from https://simplywall.st/stocks/us/software/nasdaq-rxt/rackspace-technology/news/rackspace-technology-incs-nasdaqrxt-market-cap-dropped-us40m