01—Abstract
Summary
Summary of the 8-K filed February 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Apollo Global Management (NYSE: APO) reported strong fourth-quarter and full-year 2024 results on February 4, 2025, anchored by record fee-related earnings (FRE) and spread-related earnings (SRE).
Fourth-quarter GAAP net income attributable to common stockholders was $1.46 billiona ($2.42 per share), and full-year GAAP net income was $4.48 billion ($7.39 per share). The company's primary non-GAAP earnings metric, Adjusted Net Income (ANI), was $1.36 billion ($2.22 per share) in the quarter and $4.57 billion ($7.43 per share) for the year, up from $4.08 billion in 2023. Management highlighted record FRE of $2.06 billion for 2024 (up 16.7%), SRE of $3.22 billion (up 3.7%, or 6.9% excluding notable items), and principal investing income of $271 million, which rose sharply on realized performance fees.
Growth indicators were robust. Total assets under management reached $751 billionb, up 15% year over year, supported by $152 billion of 2024 inflows and record origination of $222 billion. Fee-generating AUM grew to $569 billion.
Capital solutions fees rose 24% to a record $668 millionc, and management fees rose 12%. Management also flagged that fee-related expenses grew only 14%, the slowest pace in five years, which supported roughly 60 basis points of FRE margin expansion. Capital returns were significant: Apollo repurchased $1.2 billion of common stock in 2024 and paid more than $1 billion in common dividends, and it plans to raise the annual common dividend 10% to $2.04 per share starting with the first-quarter 2025 payment.
Investors should note several caveats. Retirement Services net spread compressed to 1.37%d in the fourth quarter from 1.44% in the third quarter, and full-year net spread fell to 1.38% from 1.49%, reflecting higher cost of funds on new business. The 2024 alternative investment return of 8.0% was below management's 11% long-term expectation, and the fourth quarter's Athene GAAP investment results were negative.
Principal investing income is inherently volatile and depends on monetization timing. The company also remains highly leveraged at the Athene level, with the consolidated balance sheet reflecting substantial insurance liabilities. These results are unaudited, and the filing itself is furnished rather than filed under the Exchange Act.
02—Key points
Key Highlights
- Adjusted Net Income of $1.36 billion ($2.22/share) in Q4 2024 and $4.57 billion ($7.43/share) for FY2024, up from $4.08 billion in FY2023.
- Record Fee Related Earnings of $554 million in Q4 and $2.06 billion for FY2024 (up 16.7%), with FRE margin expanding about 60 basis points on expense growth of only 14%.
- Spread Related Earnings of $841 million in Q4 and $3.22 billion for FY2024; excluding notable items, SRE grew 6.9%.
- Total AUM reached $751 billion (up 15% YoY), with $152 billion of FY2024 inflows and $222 billion of record origination.
- Capital solutions fees rose 24% to a record $668 million for FY2024, and management fees grew 12% to $2.78 billion.
- Returned capital: $1.2 billion of share repurchases in 2024 and over $1 billion in common dividends; the annual dividend will rise 10% to $2.04 per share from Q1 2025.
- Retirement Services net spread compressed to 1.37% in Q4 2024 (from 1.44% in Q3) and 1.38% for FY2024 (from 1.49%), while the 8.0% alternative portfolio return trailed the 11% long-term expectation.
03—Questions
Frequently Asked Questions
How did Apollo perform on its key non-GAAP earnings metric in Q4 and full-year 2024?
Adjusted Net Income was $1.36 billion, or $2.22 per share, in Q4 2024, up from $1.18 billion ($1.91 per share) in Q4 2023. For the full year, ANI was $4.57 billion, or $7.43 per share, compared with $4.08 billion ($6.74 per share) in 2023. ANI is Apollo's primary non-GAAP measure and combines Fee Related Earnings, Spread Related Earnings, and Principal Investing Income, less HoldCo interest and estimated taxes.
What is driving growth in the Asset Management business?
Management fees rose 12% in 2024 to $2.78 billion, driven by Retirement Services clients, third-party inflows, and capital deployment. Capital solutions fees grew 24% to a record $668 million, and fee-related performance fees increased more than 40%, led by Apollo Debt Solutions and other Global Wealth products. Fee-generating AUM grew 15% to $569 billion, and nearly 60% of total AUM is perpetual capital.
Are there any concerns in the Retirement Services segment?
Net spread declined in 2024, falling to 1.38% from 1.49% in 2023 and to 1.37% in Q4 from 1.44% in Q3. This was driven by a higher net cost of funds on new business. The alternative investment portfolio returned 8.0% in 2024, below management's 11% long-term expectation, which reduced alternative net investment income by about $349 million relative to that target. Investors should watch whether spread compression persists as Athene continues to grow its liabilities.
What capital return actions did Apollo announce?
Apollo repurchased more than $1.2 billion of common stock in 2024, including $501 million of opportunistic buybacks, and paid over $1 billion in common dividends. The board intends to increase the annual common dividend 10%, from $1.85 to $2.04 per share, beginning with the Q1 2025 dividend. The Q4 2024 dividend of $0.4625 per share is payable February 28, 2025. Dividends remain at the discretion of the board.
Why did Principal Investing Income increase so sharply, and is it repeatable?
Principal Investing Income rose to $271 million in 2024 from $83 million in 2023, and to $139 million in Q4 from $51 million in Q4 2023. The increase came mainly from higher realized performance fees, which reached $921 million for the year, driven by private equity monetizations and credit fund performance fee crystallizations. Because these fees depend on the timing of realizations, PII can be lumpy from quarter to quarter and may not recur at the same level.
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