Apollo Reports Second Quarter 2024 Results

Rhea-AI Summary

Apollo Global Management (NYSE: APO) reported record fee related earnings in Q2 2024, driven by strong performance in Asset Management. The company achieved record levels of quarterly debt origination, gross capital deployment, and third-party fundraising excluding flagship private equity. In Retirement Services, Athene's profitability attracted significant third-party capital, supporting continued growth following the successful ADIP II fundraise. Apollo declared a cash dividend of $0.4625 per share of Common Stock, payable on August 30, 2024, and a cash dividend of $0.8438 per share of Mandatory Convertible Preferred Stock, payable on October 31, 2024. The company will host a public audio webcast on August 1, 2024, at 8:30 a.m. Eastern Time to review Q2 2024 financial results.

Positive

• Record fee related earnings in Q2 2024
• Record levels of quarterly debt origination
• Record gross capital deployment
• Record third-party fundraising excluding flagship private equity
• Successful ADIP II fundraise - largest equity sidecar in the industry
• Significant third-party capital attracted to support Athene's growth

Negative

• None.

Insights

Financial Analyst

Apollo Global Management's Q2 2024 results demonstrate robust performance across key business segments. The company reported record fee-related earnings, signaling strong revenue generation from its core asset management activities. This is particularly noteworthy in the current market environment.

The Asset Management division showed exceptional momentum, achieving record levels in three critical areas:

• Quarterly debt origination
• Gross capital deployment
• Third-party fundraising (excluding flagship private equity)

These metrics indicate Apollo's ability to identify and capitalize on market opportunities, as well as its strong reputation among investors. The success in debt origination is especially relevant given the current high-interest rate environment, potentially positioning Apollo to benefit from higher yields.

In the Retirement Services segment, Athene's profitability is attracting significant third-party capital. The successful fundraise for ADIP II, described as "the largest equity sidecar in the industry," underscores Apollo's leadership in this space and suggests potential for continued growth and increased fee generation.

The declared dividend of $0.4625 per common share represents a commitment to shareholder returns. However, investors should note the cautionary statement regarding future dividends, which are at the board's discretion.

Overall, Apollo's Q2 results paint a picture of a company firing on all cylinders, with strong performance across its diversified business model. The record-breaking metrics and successful capital raises position the company well for continued growth, though as always, market conditions and execution will be key factors to watch.

Market Research Analyst

Apollo's Q2 2024 results offer several insights into broader market trends and the company's competitive positioning:

1. Alternative Asset Management Resilience: The record fee-related earnings and strong fundraising suggest that demand for alternative investments remains robust, even in a potentially challenging macroeconomic environment. This could indicate that institutional investors are continuing to allocate capital to alternatives in search of higher returns and diversification.

2. Private Credit Boom: The record levels of debt origination align with the growing trend of private credit as an asset class. As traditional banks face regulatory constraints, alternative asset managers like Apollo are stepping in to fill the lending gap, potentially capturing higher yields.

3. Retirement Services Opportunity: The success of Athene and the ADIP II fundraise highlights the growing importance of the retirement services sector. With an aging population in many developed markets, this segment could be a significant growth driver for Apollo and its peers.

4. Capital Deployment Capabilities: The record gross capital deployment suggests that Apollo is finding attractive investment opportunities despite market uncertainties. This could be a differentiator in a competitive landscape where dry powder has been a concern for many firms.

5. Diversification Benefits: Apollo's strong performance across both Asset Management and Retirement Services demonstrates the benefits of its diversified business model, potentially providing more stable earnings compared to pure-play asset managers.

These results indicate that Apollo is well-positioned within the alternative asset management industry, capitalizing on key market trends and demonstrating strong execution capabilities. However, investors should remain mindful of broader economic factors, such as interest rate movements and regulatory changes, which could impact the company's future performance.

NEW YORK, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the second quarter ended June 30, 2024.

Marc Rowan, Chief Executive Officer at Apollo said, “We generated record fee related earnings in the second quarter behind particularly strong momentum in Asset Management. The business produced record levels of quarterly debt origination, gross capital deployment, and third-party fundraising excluding flagship private equity. In Retirement Services, Athene’s compelling profitability is attracting significant amounts of third-party capital to support continued growth following the highly successful fundraise for ADIP II – the largest equity sidecar in the industry.”

Apollo issued a full detailed presentation of its second quarter ended June 30, 2024 results, which can be viewed on Apollo’s Investor Relations website at ir.apollo.com.

Dividend

Apollo Global Management, Inc. has declared a cash dividend of $0.4625 per share of its Common Stock for the second quarter ended June 30, 2024. This dividend will be paid on August 30, 2024 to holders of record at the close of business on August 16, 2024.

Apollo Global Management, Inc. has also declared and set aside for payment a cash dividend of $0.8438 per share of its Mandatory Convertible Preferred Stock, which will be paid on October 31, 2024 to holders of record at the close of business on October 15, 2024.

The declaration and payment of dividends on the Common Stock and the Mandatory Convertible Preferred Stock are at the sole discretion of Apollo Global Management, Inc.’s board of directors. Apollo cannot assure its stockholders that they will receive any dividends in the future.

Conference Call

Apollo will host a public audio webcast on Thursday, August 1, 2024 at 8:30 a.m. Eastern Time. During the webcast, members of Apollo’s senior management team will review Apollo’s financial results for the second quarter ended June 30, 2024.

The webcast may be accessed at ir.apollo.com. For those unable to listen to the live broadcast, there will be a replay of the webcast available at the same link one hour after the event.

Apollo distributes its earnings releases via its website and email distribution lists. Those interested in receiving firm updates by email can sign up for them at ir.apollo.com.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2024, Apollo had approximately $696 billion of assets under management. To learn more, please visit www.apollo.com.

Forward-Looking Statements

In this press release, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo’s expectations regarding the performance of its business, its liquidity and capital resources and other non-historical statements. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this press release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, interest rate fluctuations and market conditions generally, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management’s assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene’s ability to maintain or improve financial strength ratings, the impact of Athene’s reinsurers failing to meet their assumed obligations, Athene’s ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2024, and the quarterly report on Form 10-Q filed with the SEC on May 7, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. This press release does not constitute an offer of any Apollo fund.

Investor and Media Relations Contacts

For investors please contact:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
212-822-0540
ir@apollo.com

For media inquiries please contact:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
212-822-0491
communications@apollo.com

FAQ

What were Apollo's (APO) key financial highlights for Q2 2024?

Apollo reported record fee related earnings, record levels of quarterly debt origination, gross capital deployment, and third-party fundraising excluding flagship private equity in Q2 2024.

What dividend did Apollo (APO) declare for Q2 2024?

Apollo declared a cash dividend of $0.4625 per share of Common Stock, payable on August 30, 2024, and a cash dividend of $0.8438 per share of Mandatory Convertible Preferred Stock, payable on October 31, 2024.

When will Apollo (APO) host its Q2 2024 earnings call?

Apollo will host a public audio webcast on Thursday, August 1, 2024, at 8:30 a.m. Eastern Time to review Q2 2024 financial results.

What was significant about Apollo's (APO) Retirement Services performance in Q2 2024?

Athene's compelling profitability in Retirement Services attracted significant third-party capital to support continued growth, following the highly successful fundraise for ADIP II, the largest equity sidecar in the industry.