Core Insights - The influx of capital into AI infrastructure is increasing the risk of overcapacity as major investors seek to benefit from the AI boom [1][2] Group 1: Investment Trends - Ares Management Corp. and other alternative asset management firms are heavily investing in data center projects to capitalize on the rising demand for processing power driven by AI [2] - Ares has set aggressive fundraising targets, aiming for over $8 billion for data centers and increasing its wealth business target to $125 billion by 2028 [3] - The firm raised $2.4 billion in the first half of the year for data centers and acquired GLP Capital Partners Ltd.'s operations for up to $5.2 billion, significantly expanding its real estate assets [4] Group 2: Strategic Focus - Ares focuses on pre-leased developments with long-term leases (15 years or more) and rent escalators to mitigate long-term risks [6] - The company is also looking to raise $70 billion for alternative credit by 2028 and anticipates the secondary market for private funds to more than double in the next five years [7] Group 3: Market Opportunities - Ares is supportive of integrating its products into retirement plans that include alternative assets, following an executive order aimed at easing such investments [8]

Financial Performance - Great Elm achieved record results in Fiscal Q4 2025, marking the best operating quarter and fiscal year in its history[6] - Fee-paying assets under management (FPAUM) grew by 5% year-over-year as of June 30, 2025[6] - Book value per share increased by 24% from the prior year, reaching $2.65[6] - Fiscal 4Q25 revenue was $5.6 million, with revenue growth over 140% excluding a prior-year BTS property sale[34] - Assets Under Management ("AUM") as of June 30, 2025, was $759 million, up 4% from June 30, 2024[40] - Fee-Paying AUM ("FPAUM") as of June 30, 2025, was $553 million, up 5% from June 30, 2024[42] Strategic Initiatives - Great Elm launched Monomoy Construction Services, LLC ("MCS") in February 2025, expanding its real estate platform[6] - A strategic partnership with Kennedy Lewis Investment Management ("KLIM") was announced in July 2025, providing up to $150 million in leverageable capital[6] - Woodstead Value Fund, L.P ("Woodstead") purchased 4 million shares of GEG at $2.25 per share for gross proceeds of $9 million in August 2025[6] - GECC sold 1.3 million shares to an affiliate of Booker Smith, or 9.9% of outstanding common stock, at $11.65 per share for gross proceeds of $15 million[6] Capital Allocation - The Board of Directors authorized an additional $5 million of stock repurchases, bringing the total stock repurchase program to $25 million[6]

Financial Data and Key Metrics Changes - The company achieved a return on equity (ROE) of 10.6%, marking the twelfth consecutive quarter of double-digit ROE, based on adjusted net investment income (NII) per share of $0.40, reflecting strong earnings power [5][21] - The net asset value (NAV) per share was $15.03, down $0.11 from the prior quarter [6][21] - Adjusted NII per share increased by $0.01 compared to the prior quarter, driven by elevated one-time repayment income totaling $0.05 per share [21][22] - The company declared a supplemental dividend of $0.02 and a base dividend of $0.37 for the third quarter [22] Business Line Data and Key Metrics Changes - Approximately $1.1 billion of new investment commitments were deployed in the second quarter, with $906 million of fundings [12] - The debt portfolio maintained a conservative loan-to-value (LTV) ratio of 42% on average, supporting robust recoveries [16] - Revenue and EBITDA for portfolio borrowers increased by mid to high single digits year-over-year, with interest coverage rising to 1.9 times [17] Market Data and Key Metrics Changes - The deal environment in 2025 has been challenging, with muted M&A activity impacting overall deal flow [8] - The company noted a stabilization in spread pressure experienced last year, with direct lending spreads remaining tight but commanding a healthy premium over the broadly syndicated loan market [26][60] Company Strategy and Development Direction - The company is expanding into complementary strategies, including alternative credit and digital infrastructure, to access new investment opportunities [10][26] - A cross-platform equipment leasing joint venture was formed to enhance diversification and expand reach in new investment areas [10][15] - The company aims to maintain strong risk-adjusted returns regardless of economic conditions, supported by a defensively constructed portfolio and disciplined underwriting [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a potential rebound in deal activity in the second half of the year, citing increased engagement with private equity sponsors [28][45] - The company does not foresee significant stress in its portfolio, with a stable watch list and no material increase in amendment activity [18][66] - Management believes that the current economic environment is resilient, with portfolio companies continuing to perform well despite broader economic concerns [66] Other Important Information - The company ended the quarter with over $4 billion in total cash and capacity on its facilities, providing significant liquidity to invest in new opportunities [24] - The non-accrual rate was reported at 0.7% at fair value and 1.6% at cost, reflecting a slight increase due to one small position on the watch list [18] Q&A Session Summary Question: Where are we in terms of realizing synergies from the merger with OBD? - Management indicated that operational expense synergies have been realized, while financing synergies are expected to materialize over the next year [32][34] Question: Can you quantify how much of year-to-date originations have come from new business lines? - Management noted that the platform has expanded into new lines of business, but the impact on originations is still modest as they are just beginning to see deal flow [36][38] Question: What types of deals are being seen in the current environment? - Management highlighted a mix of public-to-private activity, refinancing, and add-on acquisition financing as potential deal types [44][46] Question: How does the company view leverage going forward? - Management stated that they are comfortable with current leverage levels and expect to maintain them unless deal activity picks up significantly [48] Question: What is the outlook for spreads in the current market? - Management believes spreads have troughed and may widen in the future, depending on market conditions [68] Question: How does the company plan to scale the equipment leasing business? - Management emphasized that while the equipment finance joint venture may not be a massive investment, it represents a diversification strategy that can create consistent returns [75][76]

Apollo Global Management Investor Presentation November 2024 Forward Looking Statements & Other Important Disclosures In this presentation, references to "Apollo," "we," "us," "our" and the "Company" refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193 ...

Financial Data and Key Metrics Changes - The company reported strong portfolio performance with positive NOI and EBITDA growth, indicating resilience in its financials [3][4] - The alternative credit business is valued at $40 billion, reflecting a robust position in the market [3] Business Line Data and Key Metrics Changes - Direct lending portfolios maintain a loan-to-value ratio of 42%, suggesting a strong backing by institutional equity [7][30] - The company has seen a 61% increase in deployment despite a 7% decline in US M&A volumes, showcasing effective management of capital [25][26] Market Data and Key Metrics Changes - Credit spreads have widened by 50 to 75 basis points post-Liberation Day, but the total return in direct lending remains attractive at around 10% [18][21] - The secondary market for private equity is experiencing significant growth, with an estimated $160 billion in secondary deployment last year, indicating a healthy demand for liquidity solutions [62] Company Strategy and Development Direction - The acquisition of GCP enhances the company's position in industrial real estate and digital infrastructure, aligning with its strategic roadmap for growth in Asia and data centers [57][58] - The company aims to double its asset-based finance business to $75-80 billion, focusing on sub-investment grade and investment grade opportunities [36][38] Management's Comments on Operating Environment and Future Outlook - Management expresses cautious optimism about the economy, noting strong fundamentals despite concerns over inflation and economic growth [4][5] - The company maintains its five-year fee-related earnings growth guidance of 16% to 20%, reflecting confidence in its business model and market position [85][86] Other Important Information - The company emphasizes the importance of maintaining a balance between retail and institutional fundraising to ensure sustainable growth and performance [78][79] - Management highlights the educational efforts made to improve investor understanding of asset-based finance, which is crucial for market expansion [42][44] Q&A Session Summary Question: What are the biggest risks to the private credit market? - Management believes that private credit is one of the last places to see losses due to the high quality of borrowers and the structure of the market [8][9] Question: How is the integration of the GCP acquisition progressing? - The acquisition is on track to enhance the company's capabilities in industrial real estate and data centers, with significant growth potential identified [57][58] Question: How does the company manage the conflict between retail and institutional flows? - The company focuses on building investment capacity to ensure that it can meet the demands of both retail and institutional investors without compromising performance [78][79]

Financial Data and Key Metrics Changes - The company reported a 31% increase in management fees, with approximately 90% derived from permanent capital vehicles [35] - Fee-related earnings (FRE) grew by 23%, while distributable earnings (DE) increased by 20% on a last twelve months (LTM) basis [35][23] - The company raised $6.7 billion in equity during the first quarter and $29.4 billion over the last twelve months, marking a 76% increase from the prior year [36] Business Line Data and Key Metrics Changes - In direct lending, gross origination reached nearly $13 billion, with net origination over $4.5 billion for the quarter, more than double the previous quarter's net origination [26] - The direct lending portfolio gross returns were 3.1% in the first quarter and 13.3% over the last twelve months [39] - The net lease strategy saw a record quarter of commitments totaling $3.8 billion, with commitments over the last twelve months reaching $8 billion at an average cap rate of roughly 8% [46] Market Data and Key Metrics Changes - The company raised over $6.5 billion in the first quarter, with $4 billion raised in private wealth, primarily across perpetually distributed products and GP stakes [25] - The company noted a significant increase in investor interest in alternative credit solutions, particularly as traditional securitization markets face challenges [22] Company Strategy and Development Direction - The company is focused on innovation, diversification, and scale, aligning with the ongoing evolution of the alternatives industry [11] - The strategy emphasizes downside protection, income generation, and inflation protection, which are particularly valuable in volatile markets [18] - The company aims to leverage its permanent capital model to provide stability and predictability in uncertain economic environments [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market volatility, citing a strong track record of performance during previous disruptions [16] - The company anticipates continued growth in FRE per share, expecting to narrow the gap between FRE growth and FRE per share growth over the next few years [56] - Management highlighted the defensive nature of their business model, which is expected to perform well even in challenging economic conditions [50] Other Important Information - The company completed the merger of OTF and OTF2, positioning OTF as the largest technology-focused BDC in the public market, which is expected to drive additional management fees [20] - The company has over $23 billion of assets under management (AUM) that will begin to pay management fees once capital is deployed, potentially driving an incremental $290 million in revenue [19] Q&A Session Summary Question: How to bridge the gap from stable growth to better earnings per share growth? - Management acknowledged a gap between FRE growth and FRE per share growth due to acquisitions and expects this gap to narrow in the coming years, targeting 20% growth in FRE per share over the next five years [55][56] Question: Evolution of retail investors' behavior during volatility? - Management noted that retail investors are increasingly recognizing the benefits of stability and predictability offered by Blue Owl products, especially during volatile periods [60][64] Question: Drivers for expected acceleration in institutional business? - Management highlighted the launch of flagship funds and new products as key drivers for anticipated growth in institutional fundraising throughout the year [68][76] Question: Dynamics of GP stakes fees and future run rate? - Management explained that the decline in GP stakes fees was due to a fee step down and catch-up fees from the previous quarter, indicating a clean quarter for management fees [84][86] Question: Spread and pricing dynamics in the market? - Management indicated that dislocated environments are beneficial for the company, with expectations for spreads to widen as competition in the public market diminishes [90][95]

Financial Data and Key Metrics Changes - The company reported fee-related earnings (FRE) of $0.23 per share and distributable earnings (DE) of $0.21 per share for Q4 2024, with full-year FRE at $0.86 and DE at $0.77 per share [8][9] - For the last twelve months, management fees increased by 31%, FRE grew by 23%, and DE rose by 20% [36][23] - The company raised $6.7 billion in equity in Q1 2025 and $29.4 billion over the last twelve months, marking a 76% increase from the prior year [37][23] Business Line Data and Key Metrics Changes - In direct lending, gross origination was nearly $13 billion, with net origination over $4.5 billion for the quarter, more than double the previous quarter's net origination [26][27] - The net lease strategy saw a record quarter of commitments totaling $3.8 billion, with commitments over the last twelve months reaching $8 billion at an average cap rate of roughly 8% [46][32] - The alternative credit portfolio generated gross returns of 6.1% in Q1 and 15.2% over the last twelve months [44] Market Data and Key Metrics Changes - The company raised over $6.5 billion in the first quarter, with $4 billion raised in private wealth, primarily across perpetually distributed products and GP stakes [25][37] - The company noted a significant increase in fundraising from institutional channels, with expectations for stronger fundraising in Q2, Q3, and Q4 due to flagship fund launches [76][78] Company Strategy and Development Direction - The company is focused on innovation, diversification, and scale, with a strategy aimed at downside protection, income generation, and inflation protection [11][19] - The merger of OTF and OTF2 is expected to drive approximately $135 million of incremental annual management fees, enhancing revenue visibility [21] - The company is actively pursuing opportunities in alternative credit and digital infrastructure, anticipating increased market share as traditional markets face challenges [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid economic uncertainties, highlighting the defensive nature of its business model [18][50] - The company expects to see increased demand for private credit solutions as traditional markets face volatility, with a focus on maintaining strong credit quality [27][92] - Management anticipates a narrowing gap between FRE growth and FRE per share growth, projecting 20% growth in FRE per share over the next five years [58] Other Important Information - The company declared an annual fixed dividend of $0.90 for 2025, a 25% increase from the prior year [9] - The company has over $23 billion of assets under management (AUM) that will begin to pay management fees once capital is deployed, driving an incremental $290 million of revenue [21] Q&A Session Summary Question: How to bridge the gap from stable growth to better earnings per share growth? - Management acknowledged a gap between FRE growth and FRE per share growth due to acquisitions, expecting this gap to narrow as they progress [56][58] Question: Evolution of retail investors' behavior during volatility? - Management noted that retail investors are increasingly recognizing the benefits of stable, income-oriented products during volatile periods, leading to optimism about future adoption [61][65] Question: Drivers behind expected acceleration in institutional business? - Management highlighted the launch of flagship funds and new products as key drivers for expected acceleration in institutional fundraising [76][78] Question: Decline in GP stakes fees relative to AUM growth? - Management explained that the decline was due to a fee step down and catch-up fees from the previous quarter, indicating a clean quarter for management fees [82][84] Question: Spread and pricing dynamics in the market? - Management indicated that dislocated environments are beneficial for the company, with expectations for spreads to widen as competition in the public market decreases [88][92]