Apollo Global Management (APO) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with record fee-related earnings of $531M ($0.87/share), near-record spread-related earnings of $856M ($1.40/share), and adjusted net income of $1.1B ($1.85/share), supported by broad-based momentum across asset management and retirement services.

• Total AUM reached approximately $733B as of September 30, 2024, up 16% year-over-year, driven by robust net flows, new subscriptions, and growth in retirement services client assets.

• CEO emphasized execution on a growth plan and positioning as a next-generation financial services business, with a five-year plan targeting significant earnings growth and capital generation.

• Four macro tailwinds identified: global industrial renaissance, retirement, growth of individual investors, and public/private convergence, each with potential to double the business.

• Declared a quarterly dividend of $0.4625 per share and continued share repurchases, with $1.6B returned to shareholders over the last twelve months.

Financial highlights

• Q3 2024 total revenues were $7.8B, up 199.5% year-over-year, with net income attributable to common stockholders of $787M ($1.29 per share), and adjusted net income of $1.1B ($1.85 per share).

• Fee-related earnings reached a record $531M in Q3 and $1.51B year-to-date, driven by strong credit management fees and capital formation.

• Spread-related earnings for Q3 were $856M, with a net investment spread of 1.83%; SRE totaled $2.4B year-to-date.

• Principal investing income for Q3 was $78M, benefiting from Fund IX monetizations and higher realized performance fees.

• Total AUM inflows were $42B in Q3, with record origination volume of $62B and gross capital deployment of $76B.

Outlook and guidance

• Management expects continued AUM growth, supported by strong institutional demand, new product launches, and a five-year plan projecting FRE and SRE reaching $10B and $5B, respectively, by 2029.

• SRE for full year 2024 expected to approximate $3.2B, with organic capital formation target of $120B.

• No material changes to risk factors or guidance for the remainder of 2024; regulatory and market conditions will be closely monitored.