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.