Apollo Global Management (APO) Q3 2024 earnings summary

Executive summary

• Achieved record fee-related earnings (FRE) of $531M and near-record spread-related earnings (SRE) of $856M in Q3 2024, with adjusted net income of $1.1B, and total AUM reaching $733B, up 16% year-over-year.

• CEO emphasized execution on a growth plan and positioning as a next-generation financial services business, targeting large market opportunities.

• Origination platforms delivered a record $62B in new originations for the quarter, $194B year-to-date, with strong performance from ATLAS and Athene.

• Fee-Generating AUM rose to $551B, driven by robust net flows, new subscriptions, and growth in retirement services client assets.

• Segment Income for Q3 2024 was $1.47B, up 8.6% year-over-year, reflecting higher management fees, performance fees, and investment income.

Financial highlights

• Q3 2024 total revenues were $7.8B, up 199.5% year-over-year, driven by higher investment gains and net investment income.

• Adjusted Net Income (ANI) was $1.1B ($1.85/share) for Q3 2024 and $3.2B year-to-date; GAAP net income attributable to common stockholders was $787M ($1.30/share).

• FRE for Q3 2024 was $531M, up 12.5% year-over-year; nine-month FRE was $1.51B, up 15.1%.

• SRE for Q3 2024 was $856M, with a net investment spread of 1.83%.

• Total AUM reached $733B, with $42B in inflows during the quarter and record origination volume of $62B.

Outlook and guidance

• Outlined a five-year plan targeting 20% annual FRE growth, 10% SRE growth, and ANI more than doubling to $15/share by 2029, driven by four macro tailwinds.

• Management expects continued AUM growth, supported by strong institutional demand, new product launches, and stable to improving net investment spreads.

• Q4 SRE expected to be similar to Q3, with full-year SRE guidance at $3.2B and organic capital formation target of $120B for 2024.

• Anticipate continued strong demand for private assets from retirement, insurance, and retail channels.

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