Apollo Global Management (APO) Q2 2025 Earnings Call August 05, 2025 08:30 AM ET Company ParticipantsNoah Gunn - MD & Global Head - IRMarc Rowan - Co-Founder, CEO & Chairman of the BoardJim Zelter - PresidentMartin Kelly - Partner & CFOAlex Blostein - Managing DirectorWilma Burdis - DirectorBen Budish - DirectorMichael Cyprys - Managing DirectorBrian Bedell - DirectorKyle Voigt - Managing DirectorConference Call ParticipantsPatrick Davitt - Senior Analyst - US Asset ManagementGlenn Schorr - Senior MD & Seni ...

Apollo Global Management (APO) Q2 2025 Earnings Call August 05, 2025 08:30 AM ET Speaker0Good morning, and welcome to Apollo Global Management's Second Quarter twenty twenty five Earnings Conference Call. During today's discussion, all callers will be placed in listen only mode. And following management's prepared remarks, the conference call will be opened for questions. Please limit yourself to one question, then rejoin the queue. This conference call is being recorded.This call may contain forward lookin ...

Core Viewpoint - Athene has appointed Grant Kvalheim as the new Chief Executive Officer, effective July 1, 2025, as part of a leadership transition aligned with its five-year growth plan [1][3]. Leadership Changes - Grant Kvalheim, a 14-year veteran of Athene, will take over as CEO, having previously served as President [1][4]. - Jim Belardi, co-founder of Athene, has been named Executive Chairman and will continue as Chief Investment Officer [1]. - Mike Downing and Sean Brennan have been elevated to Co-Presidents of Athene USA, with Downing also serving as Chief Operating Officer and Brennan as Chief Commercial Officer [2][5]. Strategic Focus - The leadership appointments are part of Athene's strategy to capitalize on market opportunities and drive growth, particularly in response to the growing retirement crisis in the U.S. [3][4]. - Kvalheim emphasized the need for guaranteed lifetime income and plans to expand market share and innovation [4]. Company Background - Athene is a leading retirement services company with over $380 billion in total assets as of March 31, 2025, and operates in the U.S., Bermuda, Canada, and Japan [7]. - The company focuses on providing financial security through retirement income and savings products, as well as serving corporate clients [7].

Core Insights - Asure Software has announced a strategic partnership with PensionBee to enhance retirement savings solutions for employees of Asure's payroll and HR clients [1][2][3] - The collaboration aims to simplify the process of rolling over 401(k) and IRA accounts into a single, manageable retirement savings plan [1][2] - This partnership aligns with Asure's mission to provide big-company benefits to small and mid-sized organizations, promoting financial wellness [2][3] Company Overview - Asure Software (NASDAQ: ASUR) specializes in cloud-based Human Capital Management (HCM) software solutions, offering services such as HR, payroll, and benefits administration [5] - PensionBee (LON: PBEE) is a digital-first retirement provider managing approximately $8 billion in assets and serving over 275,000 customers globally [6] Partnership Details - The partnership allows employees to consolidate their retirement accounts into a streamlined account, enhancing the management and growth of their savings [2][4] - Asure's marketplace partnership with PensionBee is designed to democratize financial wellness, making retirement savings solutions accessible to smaller enterprises [3][4]

Core Viewpoint - Athene Holding Ltd. will redeem all outstanding shares of its 6.375% Fixed-Rate Reset Perpetual Non-Cumulative Preferred Stock, Series C, along with the corresponding depositary shares on June 30, 2025 [1][2]. Group 1: Redemption Details - The Series C Preferred Stock will be redeemed on the upcoming dividend payment date, with all 24,000,000 depositary shares being redeemed [2]. - The redemption price for the depositary shares is set at $25.00 per share, equivalent to $25,000 per share of Series C Preferred Stock [3]. - No further dividends will be declared or paid following the redemption date, and the regular quarterly dividend will be paid separately to holders of record on June 15, 2025 [3]. Group 2: Company Overview - Athene is a leading retirement services company with over $380 billion in total assets as of March 31, 2025, and operates in the United States, Bermuda, Canada, and Japan [5]. - The company focuses on providing financial security through a range of retirement income and savings products, also serving as a solutions provider to corporations [5].

Core Viewpoint - Athene Holding Ltd. has declared preferred stock dividends for its non-cumulative preferred stock, which will be payable on June 30, 2025, to holders of record as of June 15, 2025 [1]. Company Overview - Athene is a leading retirement services company with over $380 billion in total assets as of March 31, 2025, and operates in the United States, Bermuda, Canada, and Japan [3]. - The company focuses on providing financial security through a range of retirement income and savings products, and also serves as a solutions provider to corporations [3]. Dividend Details - The quarterly dividend for Series A Preferred Stock is $396.875 per share, translating to $0.396875 per depositary share [4]. - The quarterly dividend for Series B Preferred Stock is $351.5625 per share, translating to $0.3515625 per depositary share [4]. - The quarterly dividend for Series C Preferred Stock is $398.4375 per share, translating to $0.3984375 per depositary share [4]. - The quarterly dividend for Series D Preferred Stock is $304.6875 per share, translating to $0.3046875 per depositary share [4]. - The quarterly dividend for Series E Preferred Stock is $484.375 per share, translating to $0.484375 per depositary share [4]. Stock Listings - Depositary shares for Series A, B, C, D, and E Preferred Stocks are listed on the New York Stock Exchange under the ticker symbols "ATHPrA," "ATHPrB," "ATHPrC," "ATHPrD," and "ATHPrE," respectively [2].

Financial Data and Key Metrics Changes - The company generated record fee-related earnings (FRE) of $559 million, representing a 21% increase year over year [6][44] - Spread-related earnings (SRE) excluding notable items were $826 million, with adjusted net income of $1.1 billion or $1.82 per share [5][45] - Assets under management (AUM) increased by 17% year over year to $785 billion, with record inflows of $43 billion in the quarter [6][34] Business Line Data and Key Metrics Changes - The credit business showed strong performance with origination of $56 billion, a nearly 30% growth year over year [31] - Private equity fund performance was highlighted, with Fund 10 achieving a net IRR of 19%, significantly outperforming industry peers [15] - In retirement services, the company raised $26 billion in the first quarter, driven by strong demand for guaranteed income products [18][38] Market Data and Key Metrics Changes - The company noted a tightening of BBB corporate spreads below 100 basis points, a level not seen since 1998 [12] - The equity market saw significant concentration, with 10 stocks in the S&P 500 accounting for 40% of the index [11] - The company experienced increased competition in retail sales of fixed annuities, despite tighter spreads [17] Company Strategy and Development Direction - The company emphasized a focus on origination as a source of excess return, willing to reduce leverage and wait for favorable market conditions [8][10] - The strategy includes a pivot towards private assets, with expectations of increased demand from traditional asset managers [22][24] - The company is actively pursuing partnerships with traditional asset managers to integrate private assets into their offerings [88][90] Management's Comments on Operating Environment and Future Outlook - Management described the current market as volatile but expressed confidence in the company's positioning and ability to navigate challenges [27][41] - The outlook for the company remains positive, with expectations of continued strong performance in capital formation and asset origination [34][40] - Management acknowledged potential headwinds from competitive pressures and interest rate changes but remains focused on long-term growth [47][60] Other Important Information - The company announced the acquisition of Bridge Investment Group for approximately $1.5 billion, expected to enhance its real estate capabilities [49] - The company has $64 billion of dry powder available for investment, positioning it well for future opportunities [14] Q&A Session Summary Question: Can you break down the lower SRE and the conditions that could make you less conservative? - Management explained that they underwrite based on spread and ROE, with a focus on maintaining a mid-teens ROE. They are currently prioritizing cash and lower-risk assets to prepare for wider spreads in the future [55][61] Question: How are flows in the AAA channel and the durability of April flows? - Management reported strong momentum in the wealth channel, with AAA flows remaining stable and a positive outlook for the rest of the year [67][68] Question: What is the outlook for institutional demand amid market volatility? - Management expressed optimism about institutional demand, noting that they have historically under-earned their fair share and see significant opportunities for growth [72][78] Question: How does the company view the potential backlash from foreign LPs reducing allocations to U.S. markets? - Management acknowledged the risk but emphasized that the U.S. capital markets remain essential for global funding needs, suggesting that Apollo is well-positioned to navigate these dynamics [102][104]