Financial Data and Key Metrics Changes - Fundraising in Q1 2025 totaled a record $3.2 billion, contributing to a target of $6 billion for the year [6][13] - Fee related earnings (FRE) were $42.6 million or $0.27 per share, representing a 2116% year-over-year growth [6][9] - Assets under management (AUM) grew to $46 billion, a 43% increase year-over-year and over 9% sequentially [11][26] - Distributable earnings were $37 million or $0.23 per share, up 12% year-over-year [9][33] Business Line Data and Key Metrics Changes - Fee earning AUM reached $35 billion, up 46% year-over-year and 6% sequentially [11][26] - Organic net inflows into fee earning AUM were over $700 million, reflecting an annualized growth rate of 8.6% [7][28] - Management fee revenue for Q1 was $77.3 million, up 28% year-over-year, driven by acquisitions [28] Market Data and Key Metrics Changes - Approximately 20% of fee earning AUM were in permanent capital vehicles, a key long-term objective [14][22] - Strong demand from Asian sovereign wealth funds resulted in $1 billion of commitments in customized investment accounts [14][20] - Local investors accounted for about 17% of fundraising in Q1 2025, indicating growing interest in alternative strategies [22] Company Strategy and Development Direction - The company aims to diversify and grow both organically and inorganically, enhancing resilience amid global uncertainty [23][24] - Focus on local consumption markets and resilient sectors such as healthcare and agribusiness [19][40] - The strategy includes increasing the proportion of assets that earn fees based on net asset value, which supports long-term compounding [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to weather economic uncertainty and potential global recession, highlighting Latin America's attractiveness for investment [17][18] - The company anticipates that geopolitical tensions may lead to increased foreign direct investment in Latin America [18][20] - Management remains cautious about extrapolating Q1 fundraising success across the entire year due to the unpredictable nature of large customized accounts [16][53] Other Important Information - The company expects FRE margins to fall within the range of 58% to 60% for the full year [32][72] - The effective tax rate for Q1 was 9.2%, with expectations to trend towards 10% by 2027 [33] - A quarterly dividend of $0.15 per share was approved for 2025 [34] Q&A Session Summary Question: How are portfolios positioned from higher tariffs in the U.S.? - Management indicated that most investments are Latin America-oriented, with minimal exposure to Mexico, and sectors are resilient and locally driven [40][42] Question: Could Chinese institutions divert allocations from U.S. to LatAm? - Management confirmed that conversations with Chinese investors have intensified, reflecting a shift away from U.S. exposure [45][48] Question: Is there potential upside to the $6 billion fundraising target? - Management maintained the $6 billion target but acknowledged the strong start with $3.2 billion raised in Q1 [52][53] Question: Update on integration of M&A completed last year? - Management reported that 2025 is focused on integration, with no major issues encountered and synergies expected to improve margins [67][72] Question: Overview of the $3.5 billion pending fee AUM? - Management indicated that most of the pending fee AUM will be allocated to infrastructure and GPMS, with deployment expected over the next four to six quarters [78][80]

Financial Data and Key Metrics Changes - The company reported GAAP net income of approximately $10.6 million for Q3 2024, with diluted net income per share of $0.04 [5] - Distributable earnings were $28.2 million or $0.15 per share after tax, with a dividend of $0.10 per share declared [5][28] - Fee-related revenue increased by 3% from the previous quarter to $82.5 million, driven by inflows into workforce and affordable housing [25][26] Business Line Data and Key Metrics Changes - The company acquired $349 million in multifamily and workforce assets and $966 million in debt strategies during Q3 2024 [9][18] - The debt strategies vertical had its largest lending quarter in over two years, originating 15 loans totaling over $720 million [17] - Multifamily investments year-to-date totaled $784 million, with unlevered IRRs 23% better than pre-pandemic levels [19] Market Data and Key Metrics Changes - Real estate values have decreased by an average of 19% since the 2021 peak, but signs of stabilization are emerging [8][16] - The commercial property price index showed a 3% increase in 2024, indicating a potential recovery in real estate prices [16] - Absorption in multifamily exceeded deliveries, with 193,000 units absorbed compared to 163,000 delivered in Q3 [20][85] Company Strategy and Development Direction - The company plans to capitalize on investment opportunities in a buyer's market, focusing on sectors with secular tailwinds [8][9] - Investments in logistics and distribution capabilities are expected to drive future growth, with a focus on expanding institutional coverage [12][13] - The company is positioning itself for a cyclical recovery by reinvesting in its platform and expanding its investment strategies [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the commercial real estate market, citing pent-up demand for transactions and improving debt markets [16][40] - The company anticipates significant improvements in valuation and transaction volumes in the coming quarters [17][19] - Management highlighted the importance of maintaining team morale and investing in talent to support future growth [67][72] Other Important Information - The company has opened an office in Dubai to enhance its Middle Eastern investor base and is expanding its presence in Europe and Asia [13] - The logistics value-add strategy has seen significant investment, with a strong team and local offices established in key markets [11][12] - The company expects to see a stabilization of reserve income to more normalized positive levels in the upcoming quarters [29] Q&A Session Summary Question: Outlook on real estate market recovery and fundraising - Management noted that while transaction flow may slow due to rate changes, there is significant pent-up demand for transactions and a loan maturity wall that will force activity [37][39] Question: Expected improvement in fundraising for Q4 - Management indicated that logistics and other strategies are expected to contribute positively to fundraising, with a potential increase in contributions from existing funds [64][65] Question: Impact of institutional inflows on transaction revenues - Management acknowledged that inflows from institutional investors typically result in lower management fee rates, affecting the overall revenue mix [92][93] Question: Trends in rent and NOI growth across sectors - Management reported a 3.3% quarter-over-quarter rent growth in multifamily workforce housing, with strong absorption rates expected to continue into 2025 [84][86]

Financial Data and Key Metrics Changes - The company raised $5.5 billion in 2024, exceeding its fundraising target of $5 billion, with $300 million from its advisory business and $5.2 billion contributing to its asset base [8][20] - Full year 2024 fee related earnings (FRE) reached $170 million, up 15% from 2023, with FRE per share at $1.12, up 13% [10] - Fourth quarter FRE was $55 million, up 35% from the prior quarter and 18% year-over-year, with FRE per share at $0.36, also up 35% from the third quarter [10] - The company generated $189 million of distributable earnings for the full year, and $89 million in the fourth quarter, with per share values of $1.24 and $0.58 respectively [12][44] Business Line Data and Key Metrics Changes - Performance related earnings (PRE) for the year exceeded $41 million, primarily driven by the sale of the Aguas Pacifico project [11] - The net accrued performance fee balance was $319 million, down 30% due to significant realizations in Infrastructure III and lower marks on publicly traded holdings [13] - The earning assets under management (AUM) rose 38% year-over-year to $33 billion, although it declined 3% sequentially due to dollar appreciation [15][33] Market Data and Key Metrics Changes - Net organic inflows in fee earning AUM in the fourth quarter were $380 million, with positive inflows across all investment verticals except public equities [16] - Approximately 70% of fundraising in 2024 came from local investors investing in local products, a significant increase from virtually nil in 2020 [22] - The company has seen increased demand for credit strategies in Brazil due to high interest rates, while equity-oriented strategies have softened [22][79] Company Strategy and Development Direction - The company aims to achieve a fundraising target of $6 billion in 2025, actively fundraising across various funds and strategies [21] - The strategy focuses on diversifying its business and enhancing growth profiles, with a significant portion of fundraising coming from local investors [20][22] - The company is developing local investment strategies tailored to specific countries in Latin America, including private equity and infrastructure funds [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2025 FRE target of $200 million to $225 million, with an FRE margin between 58% to 60% [42] - The company is well-positioned to thrive amid macroeconomic uncertainties, with Latin America remaining an attractive destination for long-term capital commitments [24][23] - Management highlighted the positive momentum from pension fund reforms in Chile, Colombia, and Mexico, which are expected to increase contributions to pension funds significantly [94][95] Other Important Information - The effective tax rate for 2024 was 6.5%, with expectations to trend towards 10% by 2027 [44] - The company finished the year with approximately $190 million of net debt, with plans to reduce this throughout 2025 [46][82] - A fourth quarter dividend of $0.15 per share was announced, with intentions to repurchase shares in 2025 [47] Q&A Session Summary Question: Clarification on PRE and future distributions - Management confirmed that the sale of Aguas Pacifico was completed, generating approximately $60 million in performance fees, all accounted for in the fourth quarter [56][58] Question: Redemption trends in public equities and credit strategies - Management noted that redemptions in credit strategies were minimal and expected to remain small in 2025, with positive net new money flows anticipated [66][68] Question: Breakdown of the $6 billion fundraising target for 2025 - Management indicated that while they have a well-organized plan, they prefer to maintain flexibility regarding the specific breakdown of the fundraising target [76][78] Question: Impact of Chile's pension reform on inflows - Management highlighted that pension fund reforms across Latin America are expected to significantly increase contributions, benefiting private equity and infrastructure funds [94][95] Question: Expectations on real estate inflows in Brazil - Management acknowledged that high interest rates may negatively impact brick-and-mortar strategies, while security strategies are expected to perform well [110][111]

Summary of Apollo Global Management (APO) Conference Call - February 10, 2025 Company Overview - **Company**: Apollo Global Management (APO) - **Participants**: Martin Kelly (CFO & Partner), Brennan Hawken (Senior Analyst - Equity Research) Key Points Industry and Business Strategy - **Apollo Capital Solutions (ACS)**: A significant differentiator for Apollo, focusing on syndicating risk in various forms, primarily in investment-grade debt [4][5][6] - **Transaction Volume**: In the previous year, Apollo completed 300 transactions, indicating robust origination capabilities [5] - **Growth Strategy**: Plans to expand ACS by syndicating risk from equity-adjacent businesses, including infrastructure and climate investments [6][8] Financial Performance and Projections - **Origination Growth**: Last year, origination effectively doubled across all segments, including core credit businesses and high-grade corporate solutions [11][12] - **Revenue Targets**: The target for origination was set at $275 billion, which is seen as achievable and necessary for maintaining equilibrium in the system [13] - **Fee-Related Performance Revenue (FRPR)**: Expected to grow by 15% to 20% in 2025, with a strong pipeline of business [31] Wealth Management and Distribution - **Wealth Products**: Significant growth in wealth products, particularly ADS and AAA, with a focus on quality revenue drivers [19][20] - **Distribution Costs**: A shift towards trailer fee structures over upfront fees, reflecting industry trends and the nature of semi-liquid products [23][24][25] Regulatory Environment - **Private Access to Retirement Markets**: Identified as a major opportunity, contingent on regulatory changes and acceptance of fiduciary standards [49][50] - **Impact of New Administration**: Uncertainty around tariffs and tax reforms, but potential for significant changes in private asset access within defined contribution plans [48][49] Capital Management - **Capital Framework**: Targeting to return $21 billion of capital over five years, with a focus on maintaining liquidity for growth investments [62][63] - **Share Buybacks**: Aiming to reduce shares from 617 million to 600 million, with a back-ended approach to achieving this target [62][64] Future Growth Opportunities - **Asset Growth**: Targeting to double Athene's gross invested assets over the next five years, with a mix of capitalized and third-party funding [75][76] - **Product Development**: Focus on new product offerings in annuities and guaranteed lifetime income, aiming to meet the needs of retirees [83][84] Market Conditions - **Interest Rate Environment**: Transitioning from high to low rates, with expectations of continued growth in Athene's assets despite potential headwinds [60][61] - **Annuity Demand**: Stable demand for annuities, particularly MYGAs and fixed indexed products, despite changing interest rates [84][85] Additional Insights - **Origination Focus**: Emphasis on origination as a key driver for growth across various asset classes, including infrastructure and secondaries [43][44] - **Market Confidence**: Building confidence in the marketplace through quality products and strong relationships with distributors and advisors [39][40] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Apollo Global Management's focus on growth, regulatory opportunities, and market conditions.