Apollo Management(APO) - 2024 Q4 - Annual Results

Financial Performance - GAAP Net Income attributable to Apollo Global Management, Inc. Common Stockholders was $1.462 billion for Q4 2024, translating to $2.42 per share[2] - Adjusted Net Income (ANI) for Q4 2024 was $1.36 billion, or $2.22 per share[3] - Total revenues for Q4 2024 were $5.283 billion, a decrease from $7.773 billion in Q3 2024[4] - GAAP Net income attributable to Apollo Global Management, Inc. Common Stockholders for 4Q'23 was $2,732 million, reflecting a strong performance compared to previous quarters[59] - Adjusted Net Income for 4Q'23 was reported at $1,182 million, excluding notable items, showcasing consistent profitability[59] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $751 billion, with inflows of $33 billion in Q4 2024 and $152 billion for the full year[7] - Total assets under management (AUM) reached $751.037 billion by the end of Q4 2024, with net flows of $20.028 billion during the quarter[50] - Fee-generating AUM increased to $568.666 billion in Q4 2024, with net flows of $18.090 billion[52] - Performance Fee-Eligible AUM increased by 11% year-over-year to $223 billion, driven by strong growth in performance fee-eligible credit origination[42] Earnings and Income - Fee Related Earnings (FRE) for Q4 2024 were $554 million, marking a record annual FRE of $2.1 billion[7] - Spread Related Earnings (SRE) totaled $841 million in Q4 2024, contributing to an annual total of $3.2 billion[7] - Spread Related Earnings (SRE) per share, excluding notable items, increased by 13.2% year-over-year to $1.37 in Q4 2024[21] - Realized performance fees in Q4 2024 amounted to $321 million, reflecting a 19.3% increase compared to Q4 2023[37] - The principal investing income surged by 172.5% year-over-year to $139 million in Q4 2024[37] Capital Management - Apollo raised a record $12 billion in capital in 2024 through successful product distribution and expansion efforts[7] - The company repurchased over $1.2 billion of common stock in 2024, including $501 million in Q4[7] - The company returned a total of $1.6 billion of capital to stockholders over the last twelve months through dividends and share repurchases[48] - The average cost of shares repurchased in Q4 2024 was $105, with a total capital utilized of $475.2 million for share buybacks[54] Dividends - Dividends distributed exceeded $1 billion in 2024, with plans to increase the dividend from $1.85 to $2.04 per share starting Q1 2025[7] - An annual dividend of $2.04 per share is planned for 2025, representing a 10% increase from $1.85 per share in 2024[48] Investment Performance - Average net invested assets grew by 15.1% year-over-year to $244,796 million in Q4 2024[23] - Alternative net investment income increased by 41.6% year-over-year to $269 million in Q4 2024[21] - The company achieved a 48.9% increase in interest and other financing costs, totaling $137 million in Q4 2024[21] - The net investment spread for Retirement Services was 1.79% in Q4 2024, a decrease of 1 basis point compared to Q3 2024[23] Risks and Future Outlook - Apollo Global Management anticipates variability in revenues, earnings, and cash flow due to market conditions and competitive environments[75] - The company is subject to risks related to inflation and interest rate fluctuations, which could impact overall performance[75] - Future developments and performance expectations are based on management's beliefs and assumptions, highlighting the uncertainty in forecasting[75] - The company does not undertake any obligation to publicly update forward-looking statements except as required by law, indicating a cautious approach to future projections[75] Strategic Initiatives - Apollo's strategic platform, Athrora, focuses on acquiring or reinsuring blocks of insurance business in the European market, enhancing market expansion efforts[71] - The company is focused on managing its business within a highly regulated industry, which presents additional operational challenges[75]