Apollo Global Management (APO) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly fee-related earnings (FRE) of $516M ($0.84/share) and spread-related earnings (SRE) of $710M ($1.15/share), with adjusted net income of $1B ($1.64/share) in Q2 2024.

• Total assets under management (AUM) reached $696.3 billion as of June 30, 2024, up 7% from year-end 2023, driven by strong net inflows and growth in retirement services client assets.

• Athene's profitability in Retirement Services attracted significant third-party capital, highlighted by the successful ADIP II fundraise.

• Set new records in quarterly debt origination, gross capital deployment, and third-party fundraising, excluding flagship private equity.

• Net income attributable to common stockholders for Q2 2024 was $828 million, up 38% year-over-year, with diluted EPS of $1.35.

Financial highlights

• FRE increased 11% sequentially and 18% year-over-year, with management fees up 3% and 8% respectively.

• GAAP Net Income attributable to common stockholders was $828 million ($1.36 per share) for Q2 2024; Adjusted Net Income was $1.0 billion ($1.64 per share).

• Total AUM rose to $696 billion, up 13% year-over-year, with $39 billion in Q2 inflows and $144 billion over the last twelve months.

• Asset Management revenues increased 34% year-over-year to $1.05 billion, led by higher investment income and advisory/transaction fees.

• Declared a $0.4625 per share common dividend and $0.8438 per share preferred dividend.

Outlook and guidance

• Expect mid-single digit SRE growth for 2024, with a return to double-digit growth in 2025.

• Management expects continued AUM growth, supported by robust fundraising, new product launches, and strong demand for alternative investments.

• Management fee growth anticipated in H2 2024, supported by healthy inflows and capital deployment.

• Full-year Capital Solutions fees projected to be stronger than initially expected.

• No assurance of future dividends, as payments are at the board's discretion.