Apollo Global Management (APO) Q2 2022 earnings summary

Executive summary

• Q2 results showed resilience amid volatile markets: Fee and Spread Related Earnings were $783 million, while GAAP net loss was $2.1 billion, mainly from unrealized reinsurance-asset losses as interest rates rose.

• Total AUM was $515 billion; gross inflows reached $36 billion and gross capital deployment was $40 billion.

Financial highlights

• GAAP net loss attributable to common stockholders was $2.051 billion, or $3.53 per share, versus net income of $658 million in 2Q'21.

• Adjusted Net Income was $566 million, or $0.94 per share; YTD Adjusted Net Income was $1.481 billion, or $2.46 per share.

• FRE was a quarterly record $341 million; SRE was $442 million and normalized SRE was $535 million, both benefiting from higher floating-rate income.

Outlook and guidance

• 2022 PII expectations depend on second-half market conditions; the long-run forecast of ~ $1.00 per share annually on average over the next five years remained in place.

• Subsequent to quarter-end, Fund X received $13 billion of commitments, more than half of its $25 billion target size.

• Athora's announced AXA Germany block acquisition represents €19 billion of AUM and is expected to close by end-2023, subject to regulatory and other approvals.