What is the most significant event reported in this filing?

The most significant event reported is the completion of the merger with Athene Holding Ltd. on January 1, 2022. This all-stock transaction is expected to significantly accelerate Apollo's growth and enhance its capabilities as a capital solutions provider.

What is the financial impact of the compensation reset program?

The compensation reset program will result in a one-time, non-cash GAAP charge of approximately $950 million in the fourth quarter of 2021. While this is a significant charge, it is intended to lower the fee-related compensation expense ratio from approximately 30% to 25% over the next five years and better align employee incentives with shareholder interests.

How will the pending acquisition of Griffin Capital affect Apollo?

The acquisition of Griffin Capital's US wealth distribution and asset management businesses is a strategic move to build Apollo's Global Wealth Management Solutions business. It is expected to expand Apollo's presence in retail investor channels, accelerate its global wealth build, and become a meaningful driver of earnings growth, though it is expected to be approximately breakeven to Apollo's after-tax Distributable Earnings (DE) per share in 2022.

When can investors expect to see full financial results including the impact of these events?

Apollo plans to release its financial results for the fourth quarter and full year 2021 on February 11, 2022. The company also expects to file its Form 10-K on or around February 25, 2022.

APO 8-K: Earnings & Results & Regulation FD

Summary

Apollo Global Management, Inc. (APO) filed an 8-K on January 27, 2022, providing key financial updates ahead of its Q4 and full-year 2021 earnings release. The report highlights significant progress on its five-year growth strategy, particularly the completion of the transformative merger with Athene Holding Ltd. on January 1, 2022. This merger is expected to accelerate growth by aligning strategies and strengthening Apollo's capabilities as a capital solutions provider. Further strategic initiatives include the pending acquisition of Griffin Capital's US wealth distribution and asset management businesses, aimed at expanding Apollo's retail investor presence and global wealth build. The company also announced a compensation reset to better align employee incentives with shareholders, which will result in a one-time non-cash GAAP charge of approximately $950 million in Q4 2021 but is expected to lower the fee-related compensation expense ratio over time. Apollo also noted its belief that it has met all criteria for inclusion in the S&P 500 index following its share class restructure and Athene merger.

Key Highlights

1Completion of the merger with Athene Holding Ltd. on January 1, 2022, a key step in accelerating growth and strengthening capital solutions capabilities.
2Announcement of a definitive agreement to acquire Griffin Capital's US wealth distribution and asset management businesses, enhancing Apollo's global wealth platform.
3A compensation reset program designed to better align employee incentives with shareholders, involving a one-time non-cash GAAP charge of approximately $950 million in Q4 2021.
4Expectation that Apollo has met all criteria for inclusion in the S&P 500 index following the Athene merger and share class restructure.
5Approval of a new share repurchase authorization totaling $2.5 billion, split between opportunistic reduction and offsetting dilution from equity issuances.
6Recasting of non-GAAP financial results and performance measures to reflect new operating segments (Asset Management, Retirement Services, Principal Investing) and expense allocations, effective Q1 2022.
7Confirmation of comfort with previously stated five-year growth targets and 2022 Fee Related Earnings (FRE) and Spread Related Earnings (SRE) estimates.

Apollo Global Management, Inc. 8-K Report, Financial Results (Jan 27, 2022)

Summary

Key Highlights

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