- Record Fee Related Earnings (FRE): $627 million, up 22% year-over-year, driven by 21% management fee growth.
- Asset Origination Growth: $81 billion originated, a 50% year-over-year increase, with a spread of 350 basis points over treasuries.
- Assets Under Management (AUM): Reached a record $840 billion, with $61 billion in inflows during the quarter.
- Expansion in Europe: Strategic investment in Athora and acquisition of PIC in the U.K., enhancing origination capabilities.
- Strong Retirement Services Inflows: $21 billion in inflows, driven by fixed annuities and innovative product offerings.
Financial Performance
The company's financial performance was impressive, with a record FRE of $627 million and a 22% year-over-year increase in management fees. The EPS of $1.92 beat analysts' estimates, and the company's AUM reached a record $840 billion. According to the company's management, "We saw robust inflows of $61 billion, bringing our record Assets Under Management (AUM) to $840 billion." The company's valuation metrics are attractive, with a P/E Ratio of 23.93, a P/B Ratio of 4.78, and a Dividend Yield of 1.3%.
Business Segments
Apollo's business segments performed well, with the private equity business continuing to deliver strong returns, with Fund X net IRR of 23% and DPI of 0.2. The hybrid segment saw 17% returns across the franchise, with $75 billion in AUM. The retirement services segment saw $21 billion in inflows, with a strong contribution from fixed annuities. The company expects demographics to drive demand for retirement services products, and it continues to innovate in this space.
Origination and Investment Activities
The company originated $81 billion in assets during the quarter, with a spread over treasuries of 350 basis points. The high-grade capital solutions business originated over $8 billion across four transactions, including deals with AES, BP, Mumbai Airport, and EDF. The company generated excess spread of approximately 290 basis points over treasuries on investment-grade origination and over 470 basis points on sub-investment-grade origination.