Apollo Management(US:APO)2025-11-10 13:03Assets Under Management - As of September 30, 2025, Apollo Global Management had total assets under management (AUM) of $908 billion, with $723 billion in credit and $185 billion in equity strategies[363][365][366]. - Total AUM increased by $68.8 billion, or 8.2%, to $908.4 billion as of September 30, 2025, compared to $839.6 billion at June 30, 2025[529]. - For the nine months ended September 30, 2025, Total AUM increased by $157.3 billion, or 20.9%, compared to $751.0 billion at December 31, 2024[530]. - Fee-Generating AUM reached $685.0 billion at September 30, 2025, with net flows of $97.5 billion during the nine months ended September 30, 2025[533]. - Total Fee-Generating AUM increased to $685.0 billion as of September 30, 2025, up $46.7 billion or 7.3% from $638.3 billion at June 30, 2025, primarily due to the Bridge acquisition and growth in retirement services client assets[534]. - For the nine months ended September 30, 2025, Total Fee-Generating AUM rose by $116.4 billion or 20.5% compared to $568.7 billion at December 31, 2024, driven by retirement services client asset growth and market activity in credit strategy[535]. Financial Performance - Total revenues increased by 26.4% to $9,823 million in Q3 2025 from $7,773 million in Q3 2024[445]. - Net income attributable to Apollo Global Management, Inc. increased by 114.1% to $1,736 million in Q3 2025[445]. - Total expenses rose by 21.6% to $7,070 million in Q3 2025, with significant increases in compensation and benefits[445]. - Total expenses were $1,234 million in 2025, an increase of $248 million from $986 million in 2024, primarily due to higher compensation and benefits, general administrative costs, and interest expenses[456]. - Total expenses were $13.8 billion in 2025, an increase of $1.4 billion from $12.4 billion in 2024, driven by higher interest sensitive contract benefits and amortization of DAC, DSI, and VOBA[496]. Investment Income - Net investment income is a significant component of total revenues, recognized as it accrues or is legally due[414]. - Investment income increased by 93.0% to $444 million in Q3 2025, primarily due to a $217 million rise in performance allocations[447]. - Net investment income in Retirement Services increased by 22.2% to $5,013 million in Q3 2025[445]. - Net investment income rose by $912 million to $5.0 billion in 2025 from $4.1 billion in 2024, due to significant growth in Athene's investment portfolio and higher rates on new deployments[462]. - Net investment earnings increased to $10.5 billion in 2025, up $1.9 billion from $8.6 billion in 2024, driven by $38.0 billion growth in average net invested assets[559]. Performance Fees - Total performance fees receivable on an unconsolidated basis as of September 30, 2025, amounted to $3.733 billion, with realized performance fees for the nine months ended September 30, 2025, totaling $800 million[399]. - The company does not earn performance fees in certain funds until investors achieve cumulative investment returns exceeding an 8% hurdle rate[397]. - Performance fees categorized as performance allocations are subject to reversal if distributed amounts exceed the amount due to the general partner based on cumulative investment returns[397]. - As of September 30, 2025, Fund VIII had $138 million of gross performance fees in escrow due to its remaining investments being valued at 85% of the fund's unreturned capital, below the required escrow ratio of 115%[399]. - Performance allocations from Fund X contributed $109 million to investment income in 2025, driven by sector appreciation[448]. Market Conditions - The U.S. inflation rate was reported at 3.0% as of September 30, 2025, up from 2.7% as of June 30, 2025[378]. - The U.S. unemployment rate increased to 4.3% as of August 31, 2025[381]. - The U.S. 10-year Treasury yield was at 4.16% as of September 30, 2025, down from 4.24% as of June 30, 2025[386]. - The S&P 500 Index increased by 7.8% during the third quarter of 2025, following a 10.6% increase in the second quarter[379]. Acquisitions and Investments - The acquisition of Bridge was completed on September 2, 2025, in an all-stock transaction, making it a consolidated subsidiary of Apollo[367]. - Apollo managed or advised $381.8 billion of AUM on behalf of Athene as of September 30, 2025, an increase from $319.8 billion in Q3 2024[525]. - The Bridge acquisition significantly contributed $34.2 billion to the equity strategy funds[529]. Compensation and Expenses - The most significant expense in the company's asset management business is compensation and benefits, which includes fixed salary, bonuses, and profit-sharing expenses[403]. - The company’s compensation arrangements contain a significant performance-based incentive component, leading to increased compensation costs as net revenues rise[404]. - Higher fee-related compensation expenses in 2025 were driven by increased headcount due to investments in growth[511]. - General, administrative and other expenses increased to $1,087 million in 2025, up $202 million from $885 million in 2024, driven by higher professional fees and travel expenses[486]. Other Income and Losses - Other income (losses) include interest income and gains from remeasurement of foreign currency denominated assets and liabilities[410]. - Other income (loss) was a loss of $130 million in 2025, a decrease of $301 million from income of $171 million in 2024, driven by declines in net gains from investment activities[488].