What were Apollo's key third quarter 2024 earnings figures?

GAAP net income attributable to common stockholders was $787 million, or $1.30 per basic share, versus $660 million in 3Q'23. Adjusted Net Income was $1.132 billion, or $1.85 per share, up from $1.045 billion, or $1.71 per share, a year earlier. Fee Related Earnings were $531 million and Spread Related Earnings were $856 million.

Why did the Retirement Services net spread decline year-over-year?

Net spread fell to 1.44% from 1.68% in 3Q'23, driven mainly by a 67 basis point increase in cost of funds to 3.34%. Higher net cost of funds on new business relative to run-off, along with lower net investment spread on the margin, offset gains in fixed income and alternative investment returns. Excluding notable items, net spread was 1.40% versus 1.51% a year earlier.

How did Apollo's alternative investment returns compare with management's expectations?

Athene's alternative investment portfolio produced an annualized 8.2% return in 3Q'24, below management's long-term expected average of 11%. Alternative net investment income of $236 million was $81 million below what the 11% long-term expectation would have produced. Management presents this as supplemental information and notes that future results may differ materially.

What drove the increase in Principal Investing Income?

Principal Investing Income rose to $78 million from $4 million a year earlier, driven by realized performance fees of $331 million, the highest level since 2021, reflecting a few sizeable monetizations within flagship private equity. Because these realizations are lumpy and event-driven, results can vary significantly from quarter to quarter.

What dividends and capital returns did Apollo announce?

Apollo declared a quarterly cash dividend of $0.4625 per common share, payable November 29, 2024, to holders of record on November 18, 2024. It also declared a $0.8438 per share dividend on its 6.75% Mandatory Convertible Preferred Stock, payable January 31, 2025. Dividends remain at the discretion of the board. In 3Q'24 Apollo repurchased 4 million shares for $426 million, and it had $1.90 billion remaining under its share repurchase authorization at quarter-end.

Apollo Global Management, Inc. 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 5, 2024. Cited figures are marked; the original filing is the authoritative source.

Apollo Global Management (NYSE: APO) reported third quarter 2024 results on November 5, 2024, led by record Fee Related Earnings (FRE) of $531 million^a, up 12.5% year-over-year, and Spread Related Earnings (SRE) of $856 million, the second-highest quarterly SRE on record.

Adjusted Net Income (ANI) was $1.132 billion^b, or $1.85 per share, up from $1.71 a year earlier. GAAP net income attributable to common stockholders was $787 million, or $1.30 per share, compared with $660 million in 3Q'23. Total AUM reached $733 billion, up 16% year-over-year, supported by $42 billion of quarterly inflows and $151 billion of LTM inflows.

Management highlighted record quarterly origination of $62 billion^c. Several items deserve investor attention. SRE excluding notable items rose 6% year-over-year to $831 million, and Athene's alternative portfolio returned an annualized 8.2% in the quarter versus management's 11% long-term expectation, which reduced alternative investment income by roughly $81 million against that benchmark.

Realized performance fees of $331 million^d were the highest since 2021, but this lumpy income drove a large share of Principal Investing Income, which rose to $78 million from $4 million a year earlier. Retirement Services fixed income and Athene's cost of funds rose sharply, with cost of funds up 43% year-over-year, so the net spread compressed to 1.44% from 1.68%. Management also returned $1.6 billion to stockholders over the last twelve months, including $426 million of share repurchases in the quarter.

The company declared a quarterly common dividend of $0.4625 per share, payable November 29, 2024, and a mandatory convertible preferred dividend of $0.8438 per share, payable January 31, 2025. This 8-K furnishes the results under Item 2.02 and is not deemed filed under Section 18 of the Exchange Act.

02—Key points

Key Highlights

Record quarterly FRE of $531 million (up 12.5% YoY), with FRE margin of 57.4% and FRE per share of $0.87
SRE of $856 million, the second-highest quarter on record; SRE excluding notable items up 6% YoY to $831 million
ANI of $1.132 billion, or $1.85 per share, versus $1.71 in 3Q'23; ANI excluding notable items was $1.112 billion, or $1.81 per share
Total AUM of $733 billion (up 16% YoY) with $42 billion of quarterly inflows and $151 billion LTM; fee-generating AUM of $551 billion (up 18%)
Record quarterly origination of $62 billion, and realized performance fees of $331 million, the highest since 2021
Retirement Services net spread compressed to 1.44% from 1.68% a year earlier, as cost of funds rose 43% YoY, partly offset by higher alternative returns (8.2% annualized vs. 11% long-term expectation)
Returned $1.6 billion to stockholders over the LTM period, including $426 million of share repurchases in 3Q'24; declared $0.4625 quarterly common dividend

03—Questions

Frequently Asked Questions

What were Apollo's key third quarter 2024 earnings figures?
GAAP net income attributable to common stockholders was $787 million, or $1.30 per basic share, versus $660 million in 3Q'23. Adjusted Net Income was $1.132 billion, or $1.85 per share, up from $1.045 billion, or $1.71 per share, a year earlier. Fee Related Earnings were $531 million and Spread Related Earnings were $856 million.
Why did the Retirement Services net spread decline year-over-year?
Net spread fell to 1.44% from 1.68% in 3Q'23, driven mainly by a 67 basis point increase in cost of funds to 3.34%. Higher net cost of funds on new business relative to run-off, along with lower net investment spread on the margin, offset gains in fixed income and alternative investment returns. Excluding notable items, net spread was 1.40% versus 1.51% a year earlier.
How did Apollo's alternative investment returns compare with management's expectations?
Athene's alternative investment portfolio produced an annualized 8.2% return in 3Q'24, below management's long-term expected average of 11%. Alternative net investment income of $236 million was $81 million below what the 11% long-term expectation would have produced. Management presents this as supplemental information and notes that future results may differ materially.
What drove the increase in Principal Investing Income?
Principal Investing Income rose to $78 million from $4 million a year earlier, driven by realized performance fees of $331 million, the highest level since 2021, reflecting a few sizeable monetizations within flagship private equity. Because these realizations are lumpy and event-driven, results can vary significantly from quarter to quarter.
What dividends and capital returns did Apollo announce?
Apollo declared a quarterly cash dividend of $0.4625 per common share, payable November 29, 2024, to holders of record on November 18, 2024. It also declared a $0.8438 per share dividend on its 6.75% Mandatory Convertible Preferred Stock, payable January 31, 2025. Dividends remain at the discretion of the board. In 3Q'24 Apollo repurchased 4 million shares for $426 million, and it had $1.90 billion remaining under its share repurchase authorization at quarter-end.

04—Continue

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