Apollo reports flat second quarter earnings
Apollo Global Management has reported adjusted net income of $1.01bn (£791m) for the second quarter of 2024, which is flat compared to the same quarter in 2023.
The results, which were published today, fell short of analyst’s expectations after a strong performance in the asset management business was offset by falling revenue from the retirement business.
The firm reported record fee-related earnings of $516m, driven by record quarterly fee related revenues, while spread-related earnings in the retirement business were down 12.5 per cent to $710m.
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Debt origination also set a quarterly record at $52bn.
Adjusted net income for the year to date was $2.07bn, compared to $1.8bn at the same point in the previous year.
“We generated record fee related earnings in the second quarter behind particularly strong momentum in Asset Management,” said chief executive officer Marc Rowan.
“The business produced record levels of quarterly debt origination, gross capital deployment, and third-party fundraising excluding flagship private equity. In retirement services, Athene’s compelling profitability is attracting significant amounts of third-party capital to support continued growth following the highly successful fundraise for ADIP II – the largest equity sidecar in the industry.”
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Apollo reported total assets under management (AUM) of $696bn, benefitting from inflows of $39bn in the second quarter and $144bn over the last twelve months, driving a 13 per cent increase year-over-year.
Inflows from asset management were reported to be $22bn in the second quarter, with $20bn of third-party fundraising activity cited as the driver for that income.
Dry powder was $68bn at the end of the second quarter, including a record $55bn of dry powder with future management fee potential.
Adjusted net income per share was lower than anticipated at $1.64, while the company declared a cash dividend of $0.4625 per share for the second quarter.
The firm completed a series of high-profile deals during the quarter, including the acquisitions of parcel delivery company Evri for £2.7bn ($3.47bn) and gambling machines company Everi Holdings for $6.3bn. It also made a $700m investment to Sony Music Group.
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