Core Viewpoint - Athene, a subsidiary of Apollo Global Management, is set to host a Fixed Income Investor Call to discuss business trends, new business origination, investment portfolio, and capital updates on February 19, 2026 [1][2] Company Overview - Athene is a leading retirement solutions company with total assets of $430 billion as of September 30, 2025 [2] - The company operates in the United States, Bermuda, Canada, and Japan, focusing on providing financial security through retirement income and savings products [2]

Core Insights - The upcoming year may represent a significant turning point for retirement planning as the aging US population increases the demand for effective retirement solutions [1] Demographics and Market Risks - The US population aged 65 and older is expected to grow steadily, with 12,000 new retirees reaching age 65 daily, highlighting the urgency for effective retirement strategies [2][4] - Two major risks for retirees by 2026 include market concentration, where a few mega-cap technology stocks dominate the S&P 500, and inflation, which threatens purchasing power for those reliant on fixed income streams [4] Retirement Savings Landscape - There exists a $4 trillion "savings gap" between the amount Americans should have saved for retirement and what they currently possess, indicating a significant shortfall in retirement preparedness [5] - Less than 10% of Americans' overall wealth is derived from pensions, emphasizing the need for alternative retirement income sources [5] Evolving Investment Strategies - New asset classes, particularly private equity and private credit, are being integrated into retirement plans, with US pensions already allocating over 25% of their assets to private markets [4] - The gap in exposure to private assets for everyday retirement savers is narrowing as platforms evolve, suggesting a shift towards more diversified investment strategies [4]

Core Insights - The retirement system is experiencing a significant shift towards pension-like income security due to increasing retiree demand, with 12,000 Americans reaching retirement age daily and a total addressable market exceeding $45 trillion [1][2] Market Dynamics - There is a $4 trillion retirement savings gap, persistent inflation risks, and concentrated public markets, emphasizing the need for diversification and reliable income in retirement planning [2] - New sources of retirement income are becoming essential for mitigating market and inflation risks, reintroducing dependable income security that was once more common with pensions [5] Product Evolution - Annuities have evolved to offer principal protection, tax-deferred accumulation, guaranteed income, and higher yields than traditional safe havens, making them attractive to various retirement savers [5] - Some annuities provide yields that are 2% higher than certificates of deposit (CDs), suggesting that the estimated $10 trillion in low-yield cash equivalents could generate more retirement income if allocated differently [5] Access to Investment Tools - Expanding access to private market investments through retail channels is enabling individual savers to achieve additional yield and diversification, narrowing the gap with institutional tools like U.S. pensions, which allocate about 25% of their portfolios to private market investments [5] Focus on Outcomes - As more retirement savings tools become available, the focus is shifting from fees to outcomes, allowing individuals and institutions to prioritize stability, liquidity, flexibility, and total lifetime income [5] Addressing Spending Challenges - Nearly 60% of retirement plan participants are concerned about outliving their savings, leading to the introduction of next-generation target date funds that assist retirees in converting lump-sum savings into predictable, pension-like income [5]

Core Insights - Apollo Global Management's CEO Marc Rowan has communicated to investors that the company is increasing cash reserves, reducing leverage, and selling off higher-risk debt assets [1] - Rowan emphasized that his "top priority" is to maintain a strong balance sheet to ensure Apollo can perform well and generate profits even in adverse conditions [1] - The company has enhanced liquidity for its insurance subsidiary, Athene, by accumulating hundreds of billions of dollars in U.S. Treasury securities and reducing leveraged loans [1] - Apollo's leadership has also highlighted a defensive posture in an internal meeting held in December [1] Summary by Categories Financial Strategy - Apollo is focusing on increasing cash reserves and reducing leverage [1] - The company is selling off higher-risk debt assets to strengthen its financial position [1] Leadership Insights - CEO Marc Rowan stated that maintaining a strong balance sheet is the company's primary goal [1] - The leadership team has reiterated a defensive approach during internal discussions [1] Liquidity Management - Apollo has increased liquidity for its insurance company, Athene, by acquiring hundreds of billions in U.S. Treasury securities [1] - The company has also reduced its leveraged loans to improve financial stability [1]

Summary of Apollo Global Management Conference Call Company Overview - **Company**: Apollo Global Management (NYSE: APO) - **Date**: December 10, 2025 - **Context**: Discussion at Goldman Sachs Financial Services Conference Key Industry Insights Private Credit Market - **Current State**: The private credit market is experiencing uncertainty, but Apollo primarily operates in the investment-grade space, which is less affected by market jitters [2][3] - **Definition Issues**: There is confusion surrounding the term "private credit," which encompasses various asset classes. Apollo plans to clarify this with a definitive guide [3] - **Risk Assessment**: Private credit is viewed as a de-risking trade compared to equities, with lower default rates than high-yield bonds. Investors are reallocating funds from equities to private credit for better risk-adjusted returns [4][5] Origination as Growth Driver - **Origination Focus**: Apollo emphasizes origination as the core of its business model, differentiating itself from traditional asset managers who invest based on available capital [9][10] - **Current Performance**: The firm has achieved strong origination volumes, exceeding five-year targets within the first year, with stable spreads around 300 basis points over treasuries [7][10] - **Collaboration with Banks**: Apollo collaborates with banks to originate loans, focusing on long-dated, high-quality assets, which are in high demand due to a global industrial renaissance [12][13] Emerging Opportunities - **AI and Infrastructure**: The demand for capital in sectors like AI and infrastructure is unprecedented. Apollo is cautious about taking on renewal risks associated with these investments [14][15] - **Wealth Market Growth**: The wealth management sector is expected to grow significantly, with Apollo positioned to benefit from a flight to quality in credit products [24][25] Financial Performance and Strategy Fundraising and Client Base - **Diverse Client Demand**: Apollo's client base has expanded beyond traditional institutional investors to include retail and insurance companies, indicating a growing acceptance of private assets [18][19] - **Future Fundraising**: The firm anticipates that fundraising will be driven by its ability to originate quality assets rather than merely raising capital [20][22] Hybrid and Private Equity - **Hybrid Business Growth**: Apollo's hybrid business is expected to be its fastest-growing segment, offering attractive risk-reward profiles [41][42] - **Private Equity Outlook**: While private equity remains a strong asset class, it is not viewed as a growth business. Apollo plans to raise over $20 billion in its next vintage [40][43] Athene and Insurance Strategy - **Athene's Role**: Athene is seen as a strategic asset for Apollo, allowing the firm to earn higher fees on originated assets. The focus is on achieving mid-double-digit returns [46][48] - **Market Positioning**: Apollo aims to leverage Athene to support guaranteed income products for retirees while capitalizing on the demand for investment-grade assets [50] Conclusion - Apollo Global Management is well-positioned for growth in the evolving financial landscape, with a strong focus on origination, a diverse client base, and strategic investments in private credit and hybrid assets. The firm is navigating market challenges while capitalizing on emerging opportunities in sectors like AI and infrastructure.

Summary of Apollo Global Management (NYSE: APO) Update / Briefing November 24, 2025 Company Overview - **Company**: Apollo Global Management - **Business Segment**: Retirement Services - **Focus**: Profitable growth and value creation in the retirement income market Key Points and Arguments Industry Context - The retirement income market is projected to grow significantly, with a 40% increase in the population over 65 by 2050, indicating a sustained demand for guaranteed retirement income [4][4] - The company emphasizes the societal need for retirement services, stating that the market will not peak until 2050 [4][4] Business Strategy - Apollo has developed a robust origination machinery for investment-grade assets, which is crucial for success in the retirement services sector [5][5] - The company focuses on originating investment-grade assets rather than below investment-grade assets, which are deemed less capital productive [5][5] - A stable source of liabilities is essential, with the company preferring to originate liabilities rather than purchase them in the secondary market [6][6] Financial Performance - Apollo originated $273 billion of assets in the last 12 months, with $190 billion being A-rated investment grade [21][21] - The company expects to produce approximately $880 million of spread-related earnings in Q4 2025 and anticipates a 10% growth in spread-related earnings through 2029 [25][25] - The company has faced headwinds in 2024 and 2025, including interest rates and asset prepayment, but these are expected to dissipate [24][24] Competitive Advantages - Apollo's unique position allows it to originate private investment-grade assets, which are increasingly in demand [12][12] - The company has a fortress balance sheet with $35 billion of statutory capital and lower leverage than peers, providing a competitive edge [32][32] - Apollo's origination capabilities are unmatched in the industry, allowing it to capture a larger share of the market [10][10] Market Dynamics - The company highlights the importance of private assets in the current market, noting that the demand for private credit is expanding [12][12] - The media's portrayal of private credit is often misleading, conflating it with riskier segments, while Apollo maintains a focus on investment-grade private assets [16][16] Future Outlook - The company is optimistic about growth opportunities, particularly in the retail annuity market, where it has become the largest player [36][36] - Apollo plans to expand its market presence, particularly in Asia-Pacific and new markets like stable value and structured settlements [43][43] - The management team believes that the best is yet to come for Athene, Apollo's retirement services arm [43][43] Risk Management - Apollo emphasizes a disciplined approach to risk management, opting to take less risk during periods of market volatility [26][26] - The company has a strong performance culture focused on long-term growth rather than short-term gains [32][32] Additional Important Insights - The company has a self-funded model with predictable and stable liabilities, which is a significant advantage in the retirement services market [29][29] - Apollo's operational efficiency is highlighted by the fact that it has fewer employees today than when it acquired Aviva USA, yet it has significantly increased its origination volume [31][31] - The company is actively working to improve its distribution channels and expand its market share in the annuity space [36][36] This summary encapsulates the key points discussed during the Apollo Global Management update, focusing on the company's strategic positioning, financial performance, competitive advantages, and future growth prospects in the retirement services industry.

Apollo's Origination Platform Strategy - Apollo's origination platforms power Athene and grow Apollo, focusing on investment-grade assets with excess spread and a track record of low losses[21] - Apollo has invested billions of dollars over 10+ years to build a large origination ecosystem[21, 70] - Apollo's asset-backed finance franchise has experienced low losses over a long period, especially for investment-grade tranches and post-crisis for all tranches[44, 45] - Apollo's ABF business has over \$200 billion in asset-backed originations to date[50, 55] Private Credit Market - The private credit market is large, with an addressable market of approximately \$40 trillion, and Apollo is focused on areas with attractive risk/reward[41, 42, 43] - The majority of private credit across Apollo is investment grade, with the origination ecosystem primarily focused on asset-backed finance[43] MidCap Financial - MidCap Financial has over \$14 billion in assets originated LTM 3Q'23 and cumulative credit losses of 27 bps since 2008[125] - MidCap Financial manages \$48.4 billion in total managed commitments as of 3Q 2023[125, 137] - MidCap generates a ~17% return on equity[152, 153] Wheels - Wheels has approximately \$4 billion in assets originated LTM 3Q'23 and average charge-offs of less than 1bp over the last 15 years[165, 209] - Wheels manages a vehicle fleet of approximately 800,000 vehicles as of 3Q'23[165] ATLAS SP Partners - ATLAS SP Partners had approximately \$40 billion in funded AUM at launch in February 2023 and has originated approximately \$10 billion in assets since acquisition[216] - ATLAS SP Partners has less than 1bp in aggregate impairments on originations over the last 7 years[216, 247] Earnings Power - Apollo has approximately \$95 billion of directly originated assets within Athene's investment portfolio[281] - Apollo's capital solutions fees were approximately \$420 million YTD 3Q'23[299]

Core Viewpoint - The tension between large banks and private credit firms is escalating, particularly regarding systemic risks in the US insurance industry due to private financing and regulatory concerns [1][5]. Group 1: Regulatory Concerns - UBS Chairman Colm Kelleher highlighted the "lack of effective regulation" in the insurance sector, suggesting it leads to a "looming systemic risk" as small rating agencies proliferate [1]. - Kelleher compared the current situation to the 2007 subprime crisis, indicating that there is significant rating agency arbitrage occurring in the insurance business [2]. Group 2: Private Capital Response - Apollo CEO Marc Rowan countered Kelleher's claims, asserting that 70% of Athene's assets are rated by major agencies like S&P, Moody's, and Fitch, thus challenging the notion that ratings are the primary concern [3]. - Rowan acknowledged that while Kelleher's concerns about systemic risk are valid, the focus should not solely be on private letter ratings but rather on the movement of assets to jurisdictions like the Cayman Islands, which lack robust regulatory frameworks [4]. Group 3: Industry Dynamics - The insurance industry, a significant institutional investor, has increasingly invested in private credit assets, with private equity firms establishing captive insurance lenders or partnering with large insurance providers [2]. - Both Rowan and Ares' Michael Arougheti agreed that larger players in the industry tend to be more reliable, indicating a preference for established firms in navigating these risks [5].

Core Insights - Apollo has issued a total of $273 billion in loans to global corporate borrowers over the past year, marking a 40% increase in annual lending speed compared to the previous year [1] - The company's insurance business, Athene, reported a net interest margin profit of $871 million, the highest quarterly record in two years, contributing to an overall profit of $1.7 billion [1] - CEO Marc Rowan highlighted that funds are shifting from the stock market to private credit, with high-net-worth individuals viewing it as an alternative to overvalued stocks [2] Loan Issuance and Performance - Apollo issued $75 billion in new loans in the third quarter, a 21% year-over-year increase, with the total annual loan issuance expected to surpass the five-year target set for October 2024 [2][3] - The record loan issuance has alleviated concerns regarding the profitability of private credit, with Apollo's performance exceeding expectations despite pressures from declining interest rates and narrowing credit spreads [1][2] Insurance Business and Asset Growth - Apollo's insurance business, Athene, attracted $23 billion in net new funds, contributing to a total of $82 billion in new assets for the quarter, pushing managed assets above $900 billion [3] - The merger with Athene has raised investor concerns about the impact of declining private credit returns on the investment group, but the strategy of matching fixed annuities with higher-risk private loans has transformed Apollo into one of Wall Street's largest lending institutions [3] Market Sentiment and Stock Performance - Apollo's stock price has fallen by 25% this year, lagging behind competitors like Blackstone and Ares Management, partly due to not meeting ambitious net interest margin targets set a year ago [4] - The recent performance of Apollo and Ares Management, which saw stock price increases of approximately 5% and 4% respectively, indicates a recovering confidence in the private credit asset class [2] Credit Market Concerns - Concerns regarding the health of the private credit market have been fueled by isolated incidents of fraud leading to credit losses, as well as the Federal Reserve's interest rate cuts [5] - CEO Rowan defended the private credit sector, asserting that recent credit losses are not indicative of broader underwriting standards and that systemic risks are not present in the current environment [5] Future Outlook - According to Moody's, the private credit market is projected to reach $3 trillion by 2028, doubling its size from 2023, although it has yet to face a wave of defaults following its rapid growth [6]

Core Insights - Apollo Global Management is addressing concerns about the profitability of private credit by significantly increasing loan issuance, resulting in better-than-expected third-quarter performance [1][2] - The company issued $75 billion in new loans in Q3, a 21% year-over-year increase, contributing to a total of $273 billion in loans over the past 12 months, a 40% surge compared to the previous year [1][2] - CEO Marc Rowan defended the attractiveness of private credit despite declining yields, noting a shift of funds from the stock market to private credit as high-net-worth individuals seek alternatives to overvalued stocks [1][4] Loan Issuance Highlights - Apollo's loan issuance capacity is a key performance driver, with Q3's $75 billion in new loans being the second-highest on record, primarily funded by insurance premiums [2] - The annual loan issuance is on track to exceed the five-year target set for October 2024, positioning Apollo to compete with major investment banks like Citigroup [2] - Despite lower net interest margin profits from Athene's portfolio, the surge in new loans compensates for the decline in profitability [2] Asset Management Growth - Apollo gained $82 billion in new assets in Q3, with Athene contributing $23 billion in net new funds, leading to a 22% increase in fee-based revenue and surpassing $900 billion in managed assets [3] - Concerns about the merger between Apollo and Athene have been raised, particularly regarding the impact of declining private credit returns on the investment group [3] - Approximately half of Apollo's earnings now come from the spread between Athene's asset returns and policyholder contract payments, rather than traditional asset management fees [3] Market Health and Future Outlook - Recent discussions about the health of the private credit market have affected stock prices of major players, driven by concerns over credit losses from specific companies [4][5] - Rowan emphasized that recent credit losses are isolated incidents and do not reflect broader underwriting standards in the private credit sector [5] - Moody's forecasts that the private credit market will reach $3 trillion by 2028, doubling its size from 2023, indicating strong future growth potential [5]