Apollo sees credit AUM rise by 20pc to $598bn in Q3
Apollo Global Management saw its credit assets under management (AUM) increase by more than 20 per cent year-on-year in the third quarter to $598bn (£460.5bn).
By contrast, AUM for its equity investments amounted to $135bn, which was flat on the same period last year, bringing total AUM for the quarter to $733bn.
Total AUM benefited from inflows of $42bn in the third quarter and $151bn over the last twelve months, driving a 16 per cent increase year-on-year.
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$22bn of inflows from asset management in the third quarter included fundraising activity in credit across direct lending, opportunistic credit, and multi-credit, as well as inflows from wealth-focused semi-liquid products and co-investments in equity.
The firm reported record fee-related earnings (FRE) of $531m, which it attributed to strong growth in fee related revenues and disciplined expense growth.
It also saw its second highest quarter of spread-related earnings (SRE), totalling $856m. Together, FRE and SRE totalled $1.4bn in the third quarter.
Performance fee-eligible AUM of $220bn increased 11 per cent year-on-year due to particularly strong growth in performance fee-eligible credit strategies.
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Performance fee-generating AUM of $143bn increased 14 per cent year-on-year, which it attributed to robust capital deployment activity.
Dry powder was $64bn at the end of the third quarter, including $54bn of dry powder with future management fee potential, of which approximately 75 per cent is in credit.
Apollo’s adjusted net income totalled $1.1bn, or $1.85 per share, for the third quarter.
“Our strong third quarter results reflect broad-based momentum across the platform,” said Apollo chief executive Marc Rowan. “We are building a next-generation financial services business uniquely positioned to win across massive market opportunities, and we are excited to execute on the attractive growth plan unveiled at our recent investor day.”
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