Assets Under Management (AUM) - As of December 31, 2024, Apollo Global Management had total assets under management (AUM) of $751 billion, with $616 billion in credit and $135 billion in equity strategies[347][349][350]. - Total Assets Under Management (AUM) reached $751.0 billion as of December 31, 2024, an increase of $100.3 billion or 15.4% compared to $650.8 billion in 2023[477]. - The company managed or advised $331.5 billion and $278.3 billion of AUM on behalf of Athene as of December 31, 2024 and 2023, respectively[472]. - Performance Fee-Generating AUM increased to $150,197 million in 2024 from $128,470 million in 2023, representing a growth of $21,727 million or 16.9%[471]. - Total Fee-Generating AUM increased to $568.7 billion as of December 31, 2024, up $75.7 billion or 15.4% from $493.0 billion in 2023[479]. Financial Performance - Total revenues for 2024 were $26.1 billion, a decrease of $6.5 billion or 20.0% from $32.6 billion in 2023[428]. - Net income attributable to Apollo Global Management, Inc. was $4.6 billion in 2024, a decrease of $470 million or 9.3% from $5.0 billion in 2023[428]. - GAAP Net Income attributable to Apollo Global Management, Inc. was $4.480 billion for the year ended December 31, 2024, compared to $5.001 billion in 2023, reflecting a decrease of 10.4%[535]. - Adjusted Net Income increased to $4.565 billion in 2024, up from $4.082 billion in 2023, representing a growth of 11.9%[535]. - The company reported operating cash flows of $3.253 billion for 2024, a decrease from $6.322 billion in 2023[541]. Investment Performance - Apollo's equity strategy has produced a 39% gross internal rate of return (IRR) and a 24% net IRR on a compound annual basis from inception through December 31, 2024[350]. - Fund IX had a total invested capital of $21.552 billion and a total value of $39.337 billion, achieving a gross IRR of 27%[530]. - Fund X reported a total invested capital of $6.089 billion with a total value of $7.948 billion, reflecting a gross IRR of 41%[529]. - The total value of distressed investments made in traditional private equity fund portfolios was $32.061 billion, with a gross IRR of 49%[528]. - The total value of Apollo's total equity investments amounted to $73.099 billion, with a total value of $174.885 billion as of December 31, 2024[526]. Revenue Sources - The company's Asset Management segment generated Fee Related Earnings (FRE), which is the primary performance measure, through management fees and capital solutions fees[348]. - Asset Management revenues increased by $669 million to $4.2 billion in 2024, primarily driven by increases in investment income, advisory and transaction fees, and management fees[431]. - Management fees increased by $127 million to $1.9 billion in 2024 from $1.8 billion in 2023, driven by fees from Atlas, ADS, and S3 Equity and Hybrid Solutions[440]. - Advisory and transaction fees increased by $199 million to $822 million in 2024 from $623 million in 2023[439]. - Capital solutions fees rose by $130 million or 24.2% to $668 million in 2024, reflecting strong performance across various sectors[462]. Expenses - Total expenses for 2024 were $19.0 billion, down by $8.3 billion or 30.5% from $27.3 billion in 2023[428]. - Total expenses were $4.0 billion in 2024, an increase of $265 million from $3.7 billion in 2023, primarily due to higher general, administrative, and interest expenses[441]. - Interest expense rose to $226 million in 2024, an increase of $81 million from $145 million in 2023, mainly due to higher interest rates[442]. - Compensation and benefits expense is the most significant expense in the asset management business, reflecting fixed salary, bonuses, and profit sharing associated with performance fees[383]. - Total compensation and benefits decreased by $114 million to $2.6 billion in 2024, primarily due to a $267 million decrease in equity-based compensation[443]. Market Conditions - The U.S. inflation rate decreased to 2.9% as of December 31, 2024, down from 3.4% in 2023, while the unemployment rate increased to 4.1%[359][362]. - The S&P 500 Index increased by 23.3% in 2024, following a 24.2% increase in 2023, indicating strong equity market performance[360]. - The U.S. 10-year Treasury yield rose to 4.58% as of December 31, 2024, compared to 3.88% in 2023, reflecting an increase in medium and long-term rates[367]. - Credit markets showed positive performance in 2024, with the BofAML HY Master II Index increasing by 8.2% and the S&P/LSTA Leveraged Loan Index increasing by 8.7%[361]. - Institutional investors continue to allocate capital towards alternative investment managers, indicating a favorable business environment for Apollo to raise larger successor funds and launch new products[366]. Investment Strategies - Athene, Apollo's retirement services business, focuses on generating spread income by sourcing long-term liabilities and investing in high-quality assets[352]. - As of December 31, 2024, Athene's net invested asset portfolio included $50.6 billion of floating rate investments, representing 20% of its net invested assets[369]. - The percentage of investment-grade assets in Athene's AFS portfolio was 97.1% as of December 31, 2024[502]. - Fixed income and other net investment earned rate improved to 4.86% in 2024, up from 4.45% in 2023, attributed to higher rates on new deployments[496]. - Alternative net investment earned rate rose to 8.03% in 2024, compared to 7.22% in 2023, driven by favorable performance in retirement services and strategic origination platforms[496]. Performance Fees - Performance fees receivable as of December 31, 2024 amounted to $3,467 million, with realized performance fees for the year ended December 31, 2024 totaling $1,128 million[380]. - The company does not earn performance fees until investors achieve cumulative investment returns exceeding an 8% hurdle rate in certain funds[377]. - The total undistributed performance fees since inception through December 31, 2024 were $3,467 million, with maximum performance fees subject to potential reversal totaling $5,515 million[382]. - Performance fees categorized as performance allocations are subject to reversal if distributed fees exceed the amount due to the general partner based on cumulative investment returns[379]. - Realized performance fees rose by $179 million (24.1%) in 2024, primarily driven by Fund IX, Freedom Parent Holdings, and ANRP III, despite a decrease from Fund VIII[516].

Core Insights - Tenneco, Inc. announced a strategic investment from Apollo Fund X to enhance its Clean Air and Powertrain businesses, aiming to unlock growth opportunities and strengthen its position as a leading global automotive supplier [1][2] - The investment will allow Tenneco to execute streamlined growth strategies and invest in emerging opportunities, driving both organic and inorganic growth [2][3] - Since Apollo's acquisition in November 2022, Tenneco has transformed its operations, achieving top-quartile EBITDA margins and setting the stage for future growth [3][4] Company Operations - Tenneco will maintain its current management team and operational structure, ensuring continuity in its strategic priorities [2] - The company has focused on building a culture centered on safety, financial performance, and operational excellence, which has contributed to its recent success [4] Investment Details - The transaction is expected to be completed in the second quarter of 2025, reflecting a strong partnership between Apollo and Tenneco's leadership [4] - American Industrial Partners will also invest alongside Apollo Fund X, indicating a collaborative approach to enhancing Tenneco's capabilities [1][8] Financial Advisors - Citigroup Inc. and Deutsche Bank Securities Inc. are serving as financial advisors to Tenneco, while Barclays Capital Inc., Lazard, and PJT Partners LP are advising Apollo Funds [5]

Core Viewpoint - Redding Ridge Asset Management (RRAM), an affiliate of Apollo, is set to acquire Irradiant Partners, which will add approximately $10.7 billion in CLO assets, increasing RRAM's total AUM to around $38 billion, positioning it as a top five CLO manager in the industry [2][4]. Company Overview - RRAM is an independently managed affiliate of Apollo, founded in 2016, specializing in structured credit with over $27 billion in AUM prior to the acquisition [9]. - Irradiant Partners, established in 2021, focuses on liquid credit, private credit, and renewables, managing nearly $13 billion primarily for institutional investors [10]. Acquisition Details - The acquisition will enhance RRAM's scale and resources, with a first close expected in Q2 2025, subject to regulatory approval [5]. - RRAM will fund the acquisition using cash on its balance sheet, although financial terms have not been disclosed [5]. Leadership Changes - Following the acquisition, John Eanes, currently co-CEO of Irradiant, will become the Chief Investment Officer of RRAM US, while Michael Levitt and Jon Levinson will join Apollo [3][4]. Strategic Importance - The acquisition is seen as critical for achieving scale and operating leverage in portfolio management, enhancing RRAM's position as a well-capitalized global CLO manager [4].

Core Insights - Apollo has acquired a majority interest in Bold Production Services, a company specializing in natural gas treatment solutions, to capitalize on the increasing demand for U.S. natural gas and treatment solutions [1][2][3] Company Overview - Bold Production Services, founded in 2013, operates a fleet of over 700 assets, including dehydration units and H2S treating units, serving a prestigious customer base in the Permian and Eagle Ford basins [2] - The company will continue to be headquartered in Houston, Texas, and is led by CEO Glen Wind and his executive team [2] Market Trends - The investment from Apollo is expected to support Bold's growth as natural gas demand is projected to rise over the next decade, driven by trends in power generation, LNG exports, and data centers [2][3] - Bold aims to provide reliable gas treatment solutions that enhance operational efficiency while reducing emissions [3] Investment and Growth Potential - Apollo sees significant growth potential in Bold, supported by strong customer relationships and expansion opportunities in the natural gas treatment market [3] - Over the past five years, Apollo-managed funds have committed approximately $58 billion to climate and energy transition-related investments [3]

Core Insights - Apollo Global Management Inc. reported $955 million in revenue for Q4 2024, a year-over-year increase of 20.1% and an EPS of $2.22 compared to $1.91 a year ago, exceeding both revenue and EPS consensus estimates [1] Financial Performance - Revenue of $955 million represents a surprise of +1.50% over the Zacks Consensus Estimate of $940.9 million [1] - EPS of $2.22 shows a surprise of +17.46% compared to the consensus estimate of $1.89 [1] - Total Assets Under Management stood at $750 billion, slightly below the average estimate of $758.85 billion [4] Segment Income Analysis - Asset Management Fee Related Earnings from management fees were $742 million, exceeding the average estimate of $730.77 million [4] - Capital solutions fees and other net income were $160 million, above the average estimate of $150.58 million [4] - Fee-related performance fees were $53 million, below the average estimate of $58.59 million [4] - Retirement Services Fixed income and other net investment income was $2.91 billion, surpassing the average estimate of $2.88 billion [4] - Principal Investing Income was $139 million, significantly above the average estimate of $71.42 million [4] - Retirement Services Spread Related Earnings were $841 million, slightly below the average estimate of $845.93 million [4] - Realized performance fees in Principal Investing were $321 million, exceeding the average estimate of $285.40 million [4] - Alternative net investment income in Retirement Services was $269 million, above the average estimate of $262.93 million [4] Stock Performance - Apollo Global Management shares returned -1.2% over the past month, while the Zacks S&P 500 composite increased by +1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Performance - GAAP Net Income attributable to Apollo Global Management, Inc. Common Stockholders was $1.462 billion for Q4 2024, translating to $2.42 per share[2] - Adjusted Net Income (ANI) for Q4 2024 was $1.36 billion, or $2.22 per share[3] - Total revenues for Q4 2024 were $5.283 billion, a decrease from $7.773 billion in Q3 2024[4] - GAAP Net income attributable to Apollo Global Management, Inc. Common Stockholders for 4Q'23 was $2,732 million, reflecting a strong performance compared to previous quarters[59] - Adjusted Net Income for 4Q'23 was reported at $1,182 million, excluding notable items, showcasing consistent profitability[59] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $751 billion, with inflows of $33 billion in Q4 2024 and $152 billion for the full year[7] - Total assets under management (AUM) reached $751.037 billion by the end of Q4 2024, with net flows of $20.028 billion during the quarter[50] - Fee-generating AUM increased to $568.666 billion in Q4 2024, with net flows of $18.090 billion[52] - Performance Fee-Eligible AUM increased by 11% year-over-year to $223 billion, driven by strong growth in performance fee-eligible credit origination[42] Earnings and Income - Fee Related Earnings (FRE) for Q4 2024 were $554 million, marking a record annual FRE of $2.1 billion[7] - Spread Related Earnings (SRE) totaled $841 million in Q4 2024, contributing to an annual total of $3.2 billion[7] - Spread Related Earnings (SRE) per share, excluding notable items, increased by 13.2% year-over-year to $1.37 in Q4 2024[21] - Realized performance fees in Q4 2024 amounted to $321 million, reflecting a 19.3% increase compared to Q4 2023[37] - The principal investing income surged by 172.5% year-over-year to $139 million in Q4 2024[37] Capital Management - Apollo raised a record $12 billion in capital in 2024 through successful product distribution and expansion efforts[7] - The company repurchased over $1.2 billion of common stock in 2024, including $501 million in Q4[7] - The company returned a total of $1.6 billion of capital to stockholders over the last twelve months through dividends and share repurchases[48] - The average cost of shares repurchased in Q4 2024 was $105, with a total capital utilized of $475.2 million for share buybacks[54] Dividends - Dividends distributed exceeded $1 billion in 2024, with plans to increase the dividend from $1.85 to $2.04 per share starting Q1 2025[7] - An annual dividend of $2.04 per share is planned for 2025, representing a 10% increase from $1.85 per share in 2024[48] Investment Performance - Average net invested assets grew by 15.1% year-over-year to $244,796 million in Q4 2024[23] - Alternative net investment income increased by 41.6% year-over-year to $269 million in Q4 2024[21] - The company achieved a 48.9% increase in interest and other financing costs, totaling $137 million in Q4 2024[21] - The net investment spread for Retirement Services was 1.79% in Q4 2024, a decrease of 1 basis point compared to Q3 2024[23] Risks and Future Outlook - Apollo Global Management anticipates variability in revenues, earnings, and cash flow due to market conditions and competitive environments[75] - The company is subject to risks related to inflation and interest rate fluctuations, which could impact overall performance[75] - Future developments and performance expectations are based on management's beliefs and assumptions, highlighting the uncertainty in forecasting[75] - The company does not undertake any obligation to publicly update forward-looking statements except as required by law, indicating a cautious approach to future projections[75] Strategic Initiatives - Apollo's strategic platform, Athrora, focuses on acquiring or reinsuring blocks of insurance business in the European market, enhancing market expansion efforts[71] - The company is focused on managing its business within a highly regulated industry, which presents additional operational challenges[75]

Core Insights - Apollo Global Management reported strong financial results for the fourth quarter and full year ended December 31, 2024, highlighting record origination activity exceeding $220 billion, inflows of more than $150 billion, and assets under management surpassing $750 billion [2][8]. Financial Performance - The company achieved record origination activity of over $220 billion in 2024 [2]. - Inflows for the year exceeded $150 billion [2]. - As of December 31, 2024, Apollo's assets under management reached approximately $751 billion [8]. Dividends - Apollo declared a cash dividend of $0.4625 per share for its Common Stock for the fourth quarter, payable on February 28, 2025 [3]. - A cash dividend of $0.8438 per share for its Mandatory Convertible Preferred Stock was also declared, to be paid on April 30, 2025 [4]. Strategic Outlook - The company emphasized a clear growth strategy entering 2025, with a focus on execution and competitive positioning [2]. Conference Call - Apollo will host a public audio webcast on February 4, 2025, to review its financial results for the fourth quarter and full year ended December 31, 2024 [6].

Group 1 - Apollo will participate in a fireside chat at the Bank of America Securities Financial Services Conference on February 11, 2025, at 8:50 am ET [1] - A live webcast of the event will be available on Apollo's Investor Relations website, with a replay accessible shortly after the event [1] Group 2 - Apollo is a high-growth global alternative asset manager with approximately $733 billion of assets under management as of September 30, 2024 [2] - The company aims to provide clients with excess returns across the risk-reward spectrum, from investment grade credit to private equity [2] - Through its retirement services business, Athene, Apollo specializes in offering retirement savings products and solutions for financial security [2]

Core Insights - Apollo has launched Apollo Allocation Pro, a tool aimed at financial advisors to enhance portfolio construction strategies that include alternatives, particularly in private markets [1][2][4] Product Overview - Apollo Allocation Pro is designed to provide an intuitive experience for exploring portfolio strategies and is now available on Apollo's website [1] - The tool builds on Apollo Academy, which offers various educational programs for financial advisors, including a cornerstone course on alternative investing [3][4] Strategic Partnerships - The development of Apollo Allocation Pro was in partnership with iCapital, a fintech platform focused on alternative investments [6] Key Features - The tool allows for interactive portfolio design, enabling advisors to create and model allocations that integrate alternatives with traditional public market indices [8] - It provides advisor-focused insights with access to 17 different indices for diverse client objectives [8] - Apollo Allocation Pro complements the educational resources available through Apollo Academy [8] Company Background - Apollo is a global alternative asset manager with approximately $733 billion in assets under management as of September 30, 2024 [6]

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