Core Viewpoint - Apollo Global Management reported a strong performance with a 23% growth in fee-related earnings (FRE) and $300 billion in origination, surpassing its five-year target in just one year [2][4]. Financial Performance - The capital solutions business generated $800 million, exceeding expectations and linked to origination activities [1] - Apollo's credit business drove upside in realizations and performance income, with credit funds seeing annual payouts typically in the fourth quarter and growth of 8%-12% across the board [5] - The firm achieved $42 billion in inflows for Q4 and $228 billion for the year, with expectations for higher capital raising in 2026 [7] Market Environment - The current environment is characterized by high activity levels and robust pipelines, driven by strong demand for capital [3] - Kelly noted a mixed economic picture but highlighted several factors that could lead to higher rates and inflation, including fiscal stimulus and rising government debt [3] Capital Formation Strategy - Apollo's capital formation priorities include wealth, institutional, and insurance channels, with a focus on expanding wealth products and launching Fund 11 for institutional capital [8][9] - The firm expects significant growth in institutional capital raising, particularly in credit strategies and infrastructure [8] Origination and Credit Focus - Apollo distinguishes between private credit below investment-grade and its focus on investment-grade private credit, which is seeing increasing demand [11] - The firm originated investment-grade credit at 290 basis points over Treasuries, indicating a strong performance compared to public high-yield indices [12] Operational Initiatives - Apollo's origination platforms consist of 16 platforms and nearly 4,000 employees, with potential for significant growth in international markets [13] - The company is focused on FRE dollar growth rather than margin, with expectations for margin expansion in 2026 [14] Technology and AI Integration - Apollo is evaluating AI's impact on portfolio companies and internal efficiency, with widespread adoption of AI tools across the organization [15]