10-QPeriod: Q2 FY2024

Apollo Global Management, Inc. Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 8, 2024For Securities:APOAPOSAPO-PA

Summary

Apollo Global Management, Inc. (APO) reported its second-quarter 2024 financial results, showcasing strong growth across its core businesses. The Asset Management segment saw a significant increase in revenues, driven by higher investment income and advisory fees, reflecting growth in assets under management and increased activity in its credit solutions business. The Retirement Services segment, operated by Athene, experienced a substantial rise in net investment income, demonstrating effective deployment of capital in a higher interest rate environment, although premium revenues saw a notable decline, primarily due to a reduction in pension group annuity premiums. Overall, the company demonstrated robust financial performance, with total revenues for the quarter reflecting the contributions from both segments. Total assets under management grew to $696.3 billion. The company's balance sheet remains strong, with ample liquidity and available credit facilities. Management highlighted the strategic importance of capital deployment and disciplined investing as key drivers for future growth and profitability. The company also maintained a positive outlook on the alternative investment market.

Financial Highlights

34 data points
Beta

Revenue

$6.02B

Net Income

$828.00M

13.8% Net Margin

EPS (Diluted)

$1.35

Total Assets

$346.50B

Cash & Equivalents

$17.98B

Free Cash Flow

$1.33B

Financial Statements
Beta
Revenue$6.02B
Operating Expenses$4.58B
Interest Expense$119.00M
Net Income$828.00M
EPS (Basic)$1.36
EPS (Diluted)$1.35
Shares Outstanding (Basic)587.10M
Shares Outstanding (Diluted)590.17M

Key Highlights

  • 1Total Assets under Management (AUM) grew to $696.3 billion as of June 30, 2024.
  • 2Asset Management segment revenues increased by 34.1% year-over-year to $1,054 million, driven by higher investment income and advisory fees.
  • 3Retirement Services segment net investment income increased by 29.0% year-over-year to $3.8 billion, reflecting growth in Athene's investment portfolio and higher interest rates.
  • 4Fee Related Earnings (FRE) for the Asset Management segment increased by 16.7% year-over-year to $516 million, demonstrating strong operational performance.
  • 5Spread Related Earnings (SRE) for the Retirement Services segment decreased by 11.1% year-over-year to $710 million, primarily due to higher cost of funds, though net investment spread remained positive.
  • 6The company ended the quarter with a strong liquidity position, including $15.9 billion in unrestricted cash and cash equivalents and $4.9 billion in available credit facilities.
  • 7Net income attributable to common stockholders increased by 38.2% year-over-year to $828 million.

Frequently Asked Questions

Apollo Global Management's total revenues decreased by 56.1% year-over-year to $6.0 billion for the three months ended June 30, 2024, primarily driven by a significant decrease in premium revenues within the Retirement Services segment. However, the Asset Management segment revenues increased by 34.1% to $1.05 billion.

The increase in Asset Management revenues was primarily driven by higher investment income, which rose by $140 million, and a $97 million increase in advisory and transaction fees, net. These were attributed to strong performance allocations from various funds, growth in the debt origination ecosystem, and record corporate solutions activity.

Athene's Retirement Services segment saw a 29.0% year-over-year increase in net investment income to $3.8 billion, due to growth in its investment portfolio and higher interest rates. However, future policy and other policy benefits decreased significantly due to lower pension group annuity obligations. Interest sensitive contract benefits also decreased slightly, influenced by changes in fixed indexed annuity reserves and the fair value of embedded derivatives.

Apollo Global Management maintains a strong liquidity position, with $15.9 billion in unrestricted cash and cash equivalents and $4.9 billion in available credit facilities as of June 30, 2024. The company anticipates these resources, along with operating cash flows, will be sufficient to meet its anticipated expenses and working capital needs for at least the next 12 months.