Group 1 - Apollo Global Management, Inc. (NYSE:APO) has been significantly impacted in the stock market, performing worse year to date compared to its peers [1] - The stock is currently trading below its 50-day and 200-day moving averages at a price of 133, indicating a bearish trend [1] - Resistance levels for the stock are noted at mid-140s and again at 155, suggesting potential challenges for upward movement [1] Group 2 - Apollo Global Management is an alternative investment firm that manages portfolios across various sectors including private equity, credit, real estate, infrastructure, and secondaries [2]

Market Overview - AI infrastructure investment is rapidly growing year-over-year, with significant commitments and announcements in data centers [2][3] - AI-exposed companies have driven the majority of stock market increases over the last three years, accounting for nearly all incremental capital expenditure growth in the S&P 500 [3] Nvidia and OpenAI Deal - Nvidia's deal with OpenAI involves substantial chip purchases and a large investment, raising questions about the long-term implications for Nvidia [4][5] - Nvidia has made over 50 investments in AI-native companies in 2024, with the OpenAI deal being the largest at $100 billion, continuing its long-term investment strategy in AI [6][8] AI Infrastructure and Software Companies - Companies with infrastructure exposure, such as Nvidia and data center contractors, are expected to perform well in the AI boom [10] - Software businesses that integrate AI functionality into existing products, like ServiceNow, are seen as having significant growth potential, despite being currently underperforming [11][13] Blackstone and Alternative Investments - Blackstone is positioned well in the current market environment, benefiting from tight credit spreads and a strong IPO market, with expectations of significant earnings growth [16][18] Amazon's Growth Prospects - Amazon's recent settlement of a $2.5 billion FTC lawsuit removes a legal overhang, allowing focus on growth in both retail and AWS [19][20] - Amazon's retail business continues to outpace competitors, with opportunities for cost savings through robotics and expanded grocery delivery capabilities [22] Retail Sector Insights - Walmart and Costco are both well-positioned in the retail market, with Costco showing strong comparable sales growth but carrying a high valuation [24]

Core Insights - Apollo Global Management, Inc. is highlighted as a relatively cheap stock within the S&P 500, with projected earnings growth of approximately 19% by 2026 and a valuation of 15.5 times next year's earnings [1][2] Company Overview - Apollo Global Management specializes in alternative investments, focusing on private equity, credit, real estate, and infrastructure [2] - The firm's investment strategies include buyouts, distressed assets, structured credit, and direct lending [2] Market Position - The company is recognized as a leader in both private equity and private credit, consistently trading at a discount compared to the broader market [1][2] - Jim Cramer expressed strong belief in Apollo's potential, referring to it as a smart company and a cheap stock [2]

Group 1: Alternative Investment Managers - Fitch downgraded its outlook on large alternative managers to 'deteriorating' from 'neutral' due to concerns over U.S. trade policy, but noted the sector has performed well since the revision [1] - The SEC's Investor Advisory Committee recommended expanding investor access to private market strategies through registered funds, highlighting the investor protections and liquidity these vehicles provide [2] - Private equity groups warned about potential mis-selling as the sector opens to individual investors, citing intermediaries' lack of experience in assessing products and explaining liquidity issues [3] Group 2: Market Trends and Performance - International equities have seen a revival in 2025, with the Morningstar Global Markets ex-US Index up 25% year-to-date, compared to a 13% increase in the Morningstar US Market Index [4] - The SEC extended the deadline for private investment funds to comply with enhanced disclosure rules, reflecting ongoing regulatory adjustments in the sector [5] - The ETF industry is expected to benefit from lower interest rates, with a shift of assets from money market funds into ETFs anticipated as rates decline [7] Group 3: Private Credit and Business Development Companies - Private credit secondary transaction volume has surged globally since 2023, indicating increased activity in both limited partner-led and general partner-led transactions [9] - Business Development Companies have gained popularity as a means for investors to access loans, with their assets under management significantly increasing in recent years [11] - Blackstone appointed Katie Keenan as CEO of its real estate investment trust for individuals, following the death of the previous leader [12]

Core Viewpoint - Apollo Global Management Inc. is raising $10 billion from insurers using a special structure, highlighting the growing relationship between private capital and annuity providers [1][2]. Group 1: Fundraising Structure - Apollo is utilizing a special purpose vehicle to sell highly rated debt linked to its credit funds, which include direct lending, asset-based finance, hybrid capital, and investment-grade credit [2]. - The deal is in its early stages, with terms still under discussion with investors, and is expected to be one of the largest of its kind [2]. Group 2: Industry Trends - Alternative investment firms are increasingly accessing the trillions of dollars in insurance capital to sustain their rapid growth [3]. - Insurers are seeking higher yields to meet their liabilities and have invested in complex credit strategies, such as collateralized fund obligations, which allow for cheaper borrowing against illiquid assets [4]. Group 3: Investment Grade Ratings - The structured vehicles aim to achieve investment-grade ratings for their senior debt, enabling insurers to invest in private credit without incurring high capital charges associated with junk-rated credit [5]. - By the end of 2024, approximately one-third of US life insurers' $6 trillion in cash and invested assets is projected to be allocated to various forms of private credit [5].

Financial Data and Key Metrics Changes - Fiscal 2025 was a record year for the company, with net income from continuing operations reaching $15.7 million in the fourth quarter, a significant improvement from a net loss of $0.6 million in the prior year period [4][18] - Book value per share increased by approximately 24% year over year to $2.65 as of June 30, with a pro forma value of $2.58 after two capital raises in July and August [6][19] - Revenue in the fourth quarter was $5.6 million, compared to $8.9 million in the prior year, but excluding a one-time property sale, revenue grew over 140% year over year [17] Business Line Data and Key Metrics Changes - The credit business, GECC, generated record investment income and incentive fees, with net investment income exceeding quarterly distributions, supporting a 6% increase in dividends to $0.37 per share [9] - Monomoy Construction Services (MCS) launched in February and contributed nearly $1 million in revenue in its initial months, with expectations to more than double its revenue in fiscal 2026 [11] - The Great Elm Credit Income Fund posted net returns of 21% for the six months ended June 30, driven by unrealized appreciation in CoreWeave-related investments [10] Market Data and Key Metrics Changes - Assets under management in fee-paying AUM totaled approximately $759 million, up 4% from the prior year [17] - The company completed over $100 million in capital raises across its credit and real estate platforms in July and August, enhancing its financial flexibility [4][9] Company Strategy and Development Direction - The company aims to scale its credit and real estate platforms, with a target of $1 billion in assets for Monomoy REIT and a potential future IPO [14] - Strategic partnerships, such as with Kennedy Lewis Investment Management, are expected to accelerate growth and provide significant new capital for expansion [13][15] - The integration of MCS is designed to enhance development timelines and deepen tenant relationships, contributing to long-term revenue growth [11] Management's Comments on Operating Environment and Future Outlook - Management views fiscal 2025 as an inflection point, with strong momentum and a solid foundation for future growth [5][16] - The company is well-positioned to drive meaningful growth and create lasting value for shareholders, supported by a strong balance sheet and strategic partnerships [6][16] Other Important Information - The board expanded the stock purchase program by $5 million, bringing the total to $25 million, with $15.7 million remaining in capacity [7] - The company reported significant unrealized gains from its CoreWeave-related investment, contributing over $11 million to earnings [8] Q&A Session Summary - There were no questions during the Q&A session, indicating a strong confidence in the company's performance and outlook [20]

Core Insights - Caliber has established a Crypto Advisory Board (CCAB) to oversee its Digital Asset Treasury (DAT) Strategy, focusing on accumulating LINK tokens for long-term value and yield generation [1][3] - Michael Trzupek has been appointed as the first member of the CCAB, bringing extensive experience in finance and blockchain infrastructure [1][2][3] - The DAT Strategy aims to strengthen Caliber's balance sheet and connect traditional real estate markets with the digital financial ecosystem [3][4] Company Overview - Caliber (NASDAQ: CWD) is an alternative investment firm managing over $2.9 billion in assets, specializing in hospitality, multi-family residential, and industrial real estate [4] - The company launched its Digital Asset Treasury strategy in 2025, focusing on LINK, the token associated with Chainlink's blockchain infrastructure [4] Leadership and Strategy - Michael Trzupek's background includes roles at Imagination Technologies and Core Scientific, where he managed treasury and investment operations [2][3] - The leadership believes Trzupek's expertise will be crucial in executing the LINK DAT Strategy effectively [3]

Core Viewpoint - Vinci Compass Investments Ltd. reported strong financial results for the second quarter of 2025, highlighting solid fundraising momentum and strategic initiatives across its platform [2]. Financial Performance - Fee Related Earnings (FRE) for the second quarter of 2025 were R$65.2 million, equating to R$1.03 per common share [4]. - Adjusted Distributable Earnings for the same period were R$75.8 million, or R$1.20 per common share [4]. Dividends - The company declared a quarterly dividend of US$0.15 per share, payable on September 9, 2025, to record holders as of August 25, 2025 [3]. Company Overview - Vinci Compass is a leading provider of alternative investments and global solutions in Latin America, with nearly three decades of experience and operations in eleven offices across Latin America and the US [6]. - As of June 2025, the company managed R$304 billion in assets under management and advisory [6].

Financial Data and Key Metrics Changes - For the second quarter of 2025, the company reported a 6% increase in fee-related earnings, a 99% increase in adjusted EBITDA, and a 19% increase in adjusted net income compared to 2024 [6][7] - Year-to-date fee-related earnings, adjusted EBITDA, and adjusted net income were up 14%, 17%, and 19% respectively compared to 2024 [6] - The fee-related earnings margin for the quarter was 42%, which is 200 basis points higher than the second quarter of last year [6] Business Line Data and Key Metrics Changes - The infrastructure segment accounted for $1,900,000,000 of fundraising in the first half of the year, contributing significantly to growth [8] - Private credit was the highest contributor to fundraising for the quarter, with expectations of increased diversification in private credit allocations [9] - Absolute return strategies (ARS) had a strong quarter with a multi-strategy composite returning approximately 6% on a gross basis, leading to a 7% increase in fee-paying AUM year-to-date [10][11] Market Data and Key Metrics Changes - Total assets under management (AUM) reached $86,000,000,000, a 5% increase compared to the end of 2024 [7] - Fundraising for the first half of the year totaled $5,300,000,000, a 52% increase from 2024, marking the highest first half fundraising total on record [7] Company Strategy and Development Direction - The company is focused on building out its individual investor channel and has made progress with its distribution joint venture, Grove Lane [11] - The company is also in the market with a structured alternative investment solution, indicating a strategic move towards innovative investment products [12] - AI is a key strategic focus, with increasing adoption expected to enhance efficiency and profitability [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the macro environment, noting strong demand for alternative investments and improved clarity around tax policy [13] - The company remains cautious due to ongoing volatility around interest rates and tariffs, but is well-positioned with $12,000,000,000 of dry powder for investment opportunities [14] - The firm aims to double its fee-related earnings by 2028, reflecting confidence in long-term growth prospects [30] Other Important Information - The company announced plans for its first Investor Day on October 15 in New York, aiming to showcase its growth profile and value proposition [15] - The firm has a strong financial position with robust cash generation and growing unrealized carried interest, which surpassed $900,000,000 this quarter [14][30] Q&A Session Summary Question: Retail uptake on the Evergreen retail vehicle and status on the private equity vehicle - Management indicated that the infrastructure interval fund is generating modest sales and is optimistic about the future of this channel, emphasizing a multiyear build [33][34] - Regarding private equity, management aims to develop their own product similar to infrastructure, with ongoing efforts to communicate progress [37] Question: Performance of absolute return business and fee rate influences - Management noted that while internal forecasts remain unchanged, improved performance has positively impacted the pipeline for ARS [42] - The fee rate has seen slight fluctuations due to idiosyncratic factors, but overall demand remains stable [44][46] Question: Re-ups in a volatile environment - Management reported strong re-ups and client tenure, with expectations for improved fundraising in 2025 compared to 2024 [51][54] Question: Fee pressures in private markets - Management stated that fee conversations have been constructive, with no significant pressures observed [56] Question: Differentiated origination capabilities in infrastructure - Management highlighted the flexible investment model that allows for diverse capital deployment, enhancing deal flow and client solutions [62][66] Question: AI opportunities and modeling - Management emphasized the integration of AI across various functions to improve efficiency and decision-making, with ongoing discussions on best practices [72][76]

Financial Performance - GAAP net income attributable to Ares Management Corporation was $137.1 million[1] - After-tax realized income was $367.9 million, with after-tax realized income per share of Class A common stock at $1.03[2] - Fee related earnings reached $409.1 million[2] Assets Under Management (AUM) - Total AUM reached $572.4 billion, a 28% increase year-over-year[9, 32, 35] - Total fee paying AUM was $349.6 billion, a 27% increase year-over-year[23, 32, 35] - Available capital stood at $150.8 billion[3, 23, 46] - AUM not yet paying fees available for future deployment was $86.8 billion, potentially generating $822.7 million in incremental annual management fees[23, 49] Capital Activity - Gross new capital commitments totaled $26.2 billion[23, 31] - Capital deployment amounted to $26.9 billion, including $13.0 billion by drawdown funds[23, 61, 65] Dividends - A quarterly dividend of $1.12 per share was declared for Class A and non-voting common stock[4, 23] - A quarterly dividend of $0.84375 per share was declared for the 6.75% Series B mandatory convertible preferred stock[5, 23]