Apollo profits hit 10-year high amid credit push

Apollo Global Management saw its profits hit a 10-year high in 2023, as the firm continued to grow its private credit business.

The asset manager reported  a 31 per cent year-on-year increase in adjusted net income, reaching $1.18bn (£0.94bn), or $1.91 a share. Analysts had predicted profits of around $1.72 per share.

Assets under management grew to $651bn, up from $548bn in 2022.

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The firm also confirmed that it had originated $30bn in private credit assets during the fourth quarter of 2023, with around half of this coming via origination platforms such as Atlas.

“Amid a volatile market backdrop in 2023, Apollo was firing on all cylinders,” said Marc Rowan, chief executive officer at Apollo.

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“We generated exceptional results highlighted by fee and spread-related earnings growth exceeding 25 per cent and nearly $160bn of inflows.

“Entering 2024, we are employing discipline at every turn as we continue to provide our clients with excess return per unit of risk.”

Apollo’s year-end financial report noted that the asset manager has benefited from higher interest rates and investor demand for private credit. More than 80 per cent of the firm’s assets under management are invested within its credit and hybrid units.

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