Apollo Global Management, Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Summary

Apollo Global Management, Inc. (APO) reported strong financial results for the second quarter and first half of 2023, driven by robust growth across its Asset Management and Retirement Services segments. Total revenues surged, reflecting increased management and advisory fees in Asset Management, and significant growth in premiums and net investment income within Retirement Services. The company's net income attributable to common stockholders turned positive, reaching $599 million for the quarter and $1.6 billion for the first half, a substantial improvement compared to the prior year's net loss. This performance underscores the successful integration of Athene and the effectiveness of Apollo's diversified business model. The company maintained a strong liquidity position, with significant cash and cash equivalents available to support ongoing operations and strategic initiatives. Key highlights for investors include substantial year-over-year revenue growth, driven by both organic growth and market appreciation across investment strategies. The Asset Management segment saw Fee Related Earnings (FRE) increase by 29.6% year-over-year, showcasing the growing predictable revenue stream. Retirement Services demonstrated strong performance with a 75.6% increase in Spread Related Earnings (SRE), driven by improved net investment income and a wider net investment spread. The company also reported a significant increase in Assets Under Management (AUM), reaching $617.1 billion, reflecting successful capital raising and positive market movements. The company's robust balance sheet and strong cash flow generation provide a solid foundation for future growth and shareholder returns.

Key Highlights

• 1Total Revenues increased significantly to $13.7 billion in Q2 2023 and $19.0 billion for the first half of 2023, up from $2.3 billion and $3.1 billion respectively in the prior year periods, primarily driven by Retirement Services and Asset Management growth.
• 2Net Income Attributable to Common Stockholders was $599 million for Q2 2023 and $1.6 billion for the first half of 2023, a substantial improvement from a net loss in the prior year periods.
• 3Fee Related Earnings (FRE) for the Asset Management segment grew by 29.6% year-over-year to $442 million in Q2 2023 and by 28.9% for the first half to $839 million.
• 4Spread Related Earnings (SRE) for the Retirement Services segment increased by 75.6% year-over-year to $799 million in Q2 2023 and by 31.7% for the first half to $1.5 billion.
• 5Total Assets Under Management (AUM) reached $617.1 billion as of June 30, 2023, up from $514.8 billion as of June 30, 2022, indicating strong growth in assets managed.
• 6The company maintained a strong liquidity position with $12.1 billion in unrestricted cash and cash equivalents as of June 30, 2023.
• 7Earnings Per Share (EPS) attributable to common stockholders was $1.00 (diluted) for Q2 2023, compared to $(2.82) in the prior year quarter.

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