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 the second quarter [4] - FRE revenues grew by 29%, FRE increased by 23%, and DE rose by 20% year over year on a last twelve months basis [7] - The company raised $14 billion of new capital during the quarter, totaling a record $55 billion over the last twelve months, representing 28% of assets under management a year ago [6][7] Business Line Data and Key Metrics Changes - In alternative credit, the company closed a private offering of $850 million for a new interval fund, reflecting strong investor confidence [8] - The digital infrastructure strategy saw a final close of its third flagship fund at a $7 billion hard cap, with over half the capital already soft circled for investment [9] - The real estate credit strategy deployed over $3 billion year to date, with significant activity in the insurance channel [9] Market Data and Key Metrics Changes - Capital raised from EMEA and APAC investors increased to 23% from 14% two years ago, indicating ongoing globalization of the business [12] - The company raised $5.8 billion of equity in credit during the second quarter, marking a record quarter for the credit platform [24] - The direct lending portfolio gross returns were 3% in the second quarter and 13.5% over the last twelve months, with strong credit quality maintained [26] Company Strategy and Development Direction - The company is focused on expanding its product offerings to meet varying investor needs across the risk-return spectrum, leveraging its scale and incumbency [7] - A new strategic partnership with Voya aims to deliver private market strategies tailored for defined contribution retirement plans, broadening access to alternative investments [20] - The company plans to grow FRE management fees to over $5 billion and FRE to over $3 billion, indicating a strong long-term growth trajectory [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their investor base despite market disruptions, highlighting the secular demand for their strategies [12] - The company noted that the investments made over the past year are beginning to bear fruit, with a steady and predictable financial profile [33] - Management emphasized the importance of the current macro environment for direct lending, indicating optimism for future transaction volumes [84] Other Important Information - The company completed the listing of its technology-focused BDC, OTF, which is now the second largest publicly traded BDC by net assets [22] - The company has raised $3.5 billion of capital across strategies that did not exist two years ago, reflecting strong reception for new offerings [10] - The net lease pipeline continues to grow, with nearly $41 billion of transaction volume under letter of intent [28] Q&A Session Summary Question: Can you discuss the asset origination channel and the scaling opportunity in asset-backed finance? - Management highlighted the significant opportunity in asset-backed finance and the integration of their asset-backed business with direct lending, emphasizing their strong origination capabilities [36][40] Question: What are the thoughts on the build-out of a target date fund with Voya? - Management discussed the importance of democratizing access to alternative investments for 401(k) participants and the potential for innovation in this area [50][54] Question: What should be expected regarding the integration and scaling of recently acquired businesses? - Management indicated that integration benefits are already being realized, with strong fundraising numbers and a diversified business model [60][66] Question: Can you comment on the competitive environment in the triple net lease market? - Management stated that their leadership in the net lease market has accelerated, with a growing pipeline and strong trust built with partners [75] Question: How is the direct lending business performing, and what are the expectations for the third quarter? - Management noted strong credit quality and a positive macro environment for direct lending, with signs of increased activity in the market [84]

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 the second quarter [3] - FRE revenues grew by 29%, FRE increased by 23%, and DE rose by 20% year over year on a last twelve months basis [6] - The company raised $14 billion of new capital during the quarter, totaling a record $55 billion over the last twelve months, which is 28% of assets under management a year ago [5][6] Business Line Data and Key Metrics Changes - In alternative credit, the company closed a private offering of $850 million for a new interval fund, reflecting strong investor confidence [7] - The digital infrastructure strategy saw a final close of its third flagship fund at a $7 billion hard cap, with over half the capital already soft circled for investment [8] - The real estate credit strategy deployed over $3 billion year to date, with significant activity in the insurance channel [8] Market Data and Key Metrics Changes - Capital raised from EMEA and APAC investors increased to 23% from 14% two years ago, indicating ongoing globalization of the business [11] - The company raised $5.8 billion of equity in credit during the second quarter, marking a record quarter for the credit platform [21] - The net lease strategy raised over $2.1 billion ahead of schedule, with total commitments in the net lease business reaching $12 billion [10] Company Strategy and Development Direction - The company aims to grow FRE management fees to over $5 billion and FRE to over $3 billion, feeling on track with these long-term goals [30] - A new strategic partnership with Voya was announced to deliver private market strategies tailored for defined contribution retirement plans, reflecting a focus on broadening access to alternative investments [19] - The company is positioned to leverage its scale and incumbency in respective markets to drive differentiated results and create bespoke solutions for capital users [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the fundraising and deployment activities, despite market disruptions [6] - The company noted that the investments made over the past year are beginning to bear fruit, with a steady and predictable financial profile [30] - Management highlighted the exceptional credit quality in direct lending and the positive outlook for deployment opportunities in the current macro environment [12][78] Other Important Information - The company completed the listing of its technology-focused BDC, OTF, which is now the second largest publicly traded BDC by net assets [20] - The company has raised $3.5 billion across strategies that did not exist two years ago, indicating strong reception for new offerings [9] - The company maintained a leadership position in CMBS deals, anchoring roughly 40% of single asset single borrower deals priced during the period [27] Q&A Session Summary Question: Can you discuss the asset origination channel and the scaling opportunity in asset-backed finance? - Management highlighted the significant opportunity in asset-backed finance and the integration of their asset-backed business with direct lending, emphasizing their strong pipeline and expertise in the market [33][36] Question: What are the thoughts on the build-out of a target date fund with Voya? - Management expressed optimism about bringing alternative investment solutions to the 401(k) market, emphasizing the importance of democratizing access to these products [41][44] Question: What should be expected regarding the integration and scaling of recently acquired businesses? - Management indicated that integration benefits are already being realized, with strong fundraising numbers and a diversified business model [52][58] Question: Can you comment on the competitive environment in the triple net lease market? - Management noted that their leadership in the net lease market has accelerated, with a growing pipeline and strong trust built with partners [67][70] Question: What is the outlook for direct lending activity and spreads on incremental capital deployed? - Management reported high credit quality and a positive outlook for direct lending, with signs of increased activity in the market [74][78]

Summary of Apollo Global Management (APO) 2025 Conference Call Company Overview - **Company**: Apollo Global Management (APO) - **Date**: May 07, 2025 - **Key Speaker**: Martin Kelly, CFO Industry Insights - **Current Environment**: The macroeconomic environment has stabilized since March, with credit markets showing signs of recovery. Spreads have returned to about halfway between their peak and previous levels, indicating a less stressed credit market [5][6][7]. - **Credit Performance**: Despite recent tariff announcements, credit markets are not showing significant stress. The company has seen a strong pipeline of opportunities across various sectors, including investment-grade credit and equity [6][7][8]. - **Tariff Impact**: Agencies have downgraded around 20 companies most exposed to tariffs, but the overall business remains strong and well-positioned [6][8]. Financial Performance - **Earnings Guidance**: The company maintains a long-term growth target of 10% over five years and aims for a 15% return on equity for investors. Recent tight spreads and interest rate transitions have created headwinds, but the long-term strategy remains unchanged [11][12][13]. - **Cash Reserves**: Athene, a subsidiary, currently holds approximately $20 billion in cash and liquid assets awaiting deployment [14]. Business Segments - **Retirement Services**: The company reported $25 billion in business written in Q1, with expectations to exceed last year's target of $70 billion. The growth is driven by retail annuities, funding agreements, and reinsurance channels [16][17][19]. - **Competitive Landscape**: There is increased competition in the retail market, leading to pricing pressures. However, the company believes its efficient cost structure and origination capabilities provide a competitive advantage [20][21]. - **Origination Demand**: The company originated $220 billion in total last year, with $55 billion in Q1, indicating strong demand across various credit platforms [22][23]. Strategic Initiatives - **High-Grade Corporate Solutions**: The pipeline for corporate solutions is robust, driven by the need for financing in sectors like infrastructure and energy transition. The company is well-positioned to meet this demand due to its access to long-duration capital [26][27][28]. - **Fixed Income Trading Capabilities**: Apollo is developing broader fixed income trading capabilities to enhance liquidity in private markets, having traded $2 billion of credit with around 60 counterparties [34][35][36]. - **Wealth Management**: The company is expanding its wealth management business, focusing on increasing product offerings and distribution channels. Initial reception of new products has been positive, but it may take time to gain traction [58][59]. Long-Term Outlook - **Growth Targets**: The company maintains a target of 20% FRE growth and 10% SRE growth over time, supported by four key tailwinds: industrial renaissance, public-private convergence, global wealth access, and lifetime income planning [67][68][69][70]. - **Market Evolution**: The company is focused on evolving its strategies to meet changing market demands, particularly in private investment-grade credit and potential future equity offerings [30][31][61]. Conclusion Apollo Global Management is navigating a complex macroeconomic environment with a strong focus on maintaining growth targets and capitalizing on emerging opportunities across various sectors. The company is well-positioned to leverage its strengths in origination, competitive pricing, and strategic partnerships to drive future growth.