Summary of Apollo Global Management (NYSE: APO) Update / Briefing November 24, 2025 Company Overview - **Company**: Apollo Global Management - **Business Segment**: Retirement Services - **Focus**: Profitable growth and value creation in the retirement income market Key Points and Arguments Industry Context - The retirement income market is projected to grow significantly, with a 40% increase in the population over 65 by 2050, indicating a sustained demand for guaranteed retirement income [4][4] - The company emphasizes the societal need for retirement services, stating that the market will not peak until 2050 [4][4] Business Strategy - Apollo has developed a robust origination machinery for investment-grade assets, which is crucial for success in the retirement services sector [5][5] - The company focuses on originating investment-grade assets rather than below investment-grade assets, which are deemed less capital productive [5][5] - A stable source of liabilities is essential, with the company preferring to originate liabilities rather than purchase them in the secondary market [6][6] Financial Performance - Apollo originated $273 billion of assets in the last 12 months, with $190 billion being A-rated investment grade [21][21] - The company expects to produce approximately $880 million of spread-related earnings in Q4 2025 and anticipates a 10% growth in spread-related earnings through 2029 [25][25] - The company has faced headwinds in 2024 and 2025, including interest rates and asset prepayment, but these are expected to dissipate [24][24] Competitive Advantages - Apollo's unique position allows it to originate private investment-grade assets, which are increasingly in demand [12][12] - The company has a fortress balance sheet with $35 billion of statutory capital and lower leverage than peers, providing a competitive edge [32][32] - Apollo's origination capabilities are unmatched in the industry, allowing it to capture a larger share of the market [10][10] Market Dynamics - The company highlights the importance of private assets in the current market, noting that the demand for private credit is expanding [12][12] - The media's portrayal of private credit is often misleading, conflating it with riskier segments, while Apollo maintains a focus on investment-grade private assets [16][16] Future Outlook - The company is optimistic about growth opportunities, particularly in the retail annuity market, where it has become the largest player [36][36] - Apollo plans to expand its market presence, particularly in Asia-Pacific and new markets like stable value and structured settlements [43][43] - The management team believes that the best is yet to come for Athene, Apollo's retirement services arm [43][43] Risk Management - Apollo emphasizes a disciplined approach to risk management, opting to take less risk during periods of market volatility [26][26] - The company has a strong performance culture focused on long-term growth rather than short-term gains [32][32] Additional Important Insights - The company has a self-funded model with predictable and stable liabilities, which is a significant advantage in the retirement services market [29][29] - Apollo's operational efficiency is highlighted by the fact that it has fewer employees today than when it acquired Aviva USA, yet it has significantly increased its origination volume [31][31] - The company is actively working to improve its distribution channels and expand its market share in the annuity space [36][36] This summary encapsulates the key points discussed during the Apollo Global Management update, focusing on the company's strategic positioning, financial performance, competitive advantages, and future growth prospects in the retirement services industry.