Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (November 2014)
37 slides from Apollo Global Management, Inc. (new)'s investor presentation, Nov 13, 2014
Slide 1: Apollo Global Management Investor Presentation November 2014
Exhibit 99.1 Apollo Global Investor November Information assumed Presentation that 2014 contained investments Management, herein made LLC is as in of theSeptember future will30, be 2014 profitable unless orotherwise will equalnoted. the performance Not for distribution of the investments in whole or
Slide 2: Forward-Looking Statements and Important Disclosures
Forward of other presentation, intended prove or our Factors” filings included applicable Information with equity disposition (including IRR” fund allocated paid including interest United This 31. fund, Unless not Apollo obtained The 1Past 1934, real have use information performance to respect prese
Slide 3: Apollo's Firm Profile
Apollo’s Firm Principal Founded: AUM: Employees: Inv. Private $46bn Distressed Corporate U.S. European Non-Performing Structured Credit Athene $108bn Real $9bn Residential distressed Performing (CMBS, Investment Integrated Contrarian Value-oriented Opportunistic Focus Global New Luxembourg Hong Toro
Slide 4: Agenda
1. Appendix Agenda 2. 3. 34. OverviewSegments Business Financial Overview of Apollo
Slide 5: Apollo's Key Strengths
Apollo’s Diverse Strong, Global Attractive Strong Large, Value-oriented, Successful Apollo Multi-disciplined -Long-term Steady Debt Managing Deep Note: 1. 2. year 43. 96% 7%Fund Cambridge For return of /bench industry As LTM of Fee-related diversified management fundraising underlying PE consistent
Slide 6: Apollo's Global Industry Relationships
Apollo’s Global Industry Management Private –Development Investment Real Credit Packaging Note: investment currently 5Apollo Over Strategic Significant Estate The platform 300 portfolio. Equity Insights Integrated held listed Chemicals relationships of Opportunities current relationships Relationshi
Slide 7: Deep Industry Expertise in Core Industries
Apollo’s Chemicals Note: investment are 6any not Apollo The currently Deep listed Consumer of portfolio. any Industry companies held Apollo in &Expertise any Retail fund are Apollo generally, Distribution a sample – Nine fund.of Core and There Apollo &are Transportation Industries can solely private
Slide 8: Long-Term Track Record of Success
Long Disciplined economic 5Apollo’s 18.8% 26% 39% 14.3% 17.7% 7.8% 5.1% Barclays Government/Credit Bond IRR Note: 1. 2. 3. expenses 4. year 5.Year Data National Cambridge Represents (5) return 9.8% 4.9% Track Index Refer 10 22.2% 14.0% as IRR Private S&P and Year cycles ofmetrics 9.7% 6.2% Council a
Slide 9: Strong Credit Track Record
Strong Utilize Annualized U.S. Credit 6.5% 11.1% 27.1% Opportunity Fund Opportunistic Weighted Debt 11.0% European AIE Net 16.7% Apollo 5.0% 10.1% Investment Europe Loan Note: Comparisons” Index 1. 2. 3. managed invest 4. 85. Weighted Since Net Fund IRR II(3) Performing Portfolio Index IRefer in IRR
Slide 10: Proven Fundraising Capabilities
Proven Overview –Full-scale Dedicated Fundraising Real $3.0bn Unallocated Private 5% $2.2bn Total 36% $14.7bn Credit 52% $21.6bn Customized More Large Pension Global Middle East 76% Canada 7% Asia Australia United 14% Europe 11% We 89% Approximately 1. September 92. Sales Product Investor or Average
Slide 11: Various Publicly Traded Apollo Vehicles
Various Apollo Publicly Investment Business (BDC) Company Real-Estate Partnership Closed-End (REITs) Ticker: (CEFs) APO AINV (NASDAQ AAA AMTG Amsterdam) (Euronext ARI AFT 10 (NYSE) $1.8 &$163.9 $2.1 $4.1 has AUM: AIF $3.9 Paths Traded Development billion billion been Manager billion OMX) Investment
Slide 12: Significant AUM Growth
Significant Considerable Apollo’s ($ Total Private Dramatically business AUM $8.8 Mgmt Asset Athene $9.0 $107.7 $6.5 $64.4 Structured Credit 1990- Opportunistic PE 2002: $1.6 $46.2 $4.4 $8.2 $20.2 2002 Apollo 1. Management 11 AUM inOnly U.S. $6.5 $29.1 $9.8 billions) AUM: 2004 $22.3 CAGR: AUM Perfor
Slide 13: Apollo Positioned for Growth
Apollo Favorable Investors allocations Consolidation relationships scale Increasing global Emergence credit Growth Scaling New Geographic Expand Strategic Selected Insurance-linked Athene “Flagship” Emerging India Retail Permanent Stone Gulf 12 Stream Product investment PE Tower as closed financial
Slide 14: Agenda
1. Appendix Agenda 2. 3. 4. 13 OverviewSegments Business Financial Overview of Apollo
Slide 15: Private Equity Highlights
Private $46.2bn Highlights –$22.4bn Historical Remaining 9.8% 14.0% 20.3% 26% S&P $9,238 Traditional 20 Select $3.3bn $3.4 $3.9 $2.6 ($bn) $5,530$1.9 $2.4 of 1. as Equity $32.1bn Current Fund $1 Cambridge 10/31/2014 described Year billion+ $3.2 Realized 500 2010 Portfolio funds Equity average VII Ne
Slide 16: Significant Outperformance vs S&P 500 Index
Significant 1990—1993 1,500 Index 1,250 37% 44% S&P 750 23% 10% 500 2% 90 250 (‘90/‘92)(1995)(1998)(2001)(2008) Apollo 1. 2. unless year, 15 Thomson Represents 92 1,000 19% I,29% 9% 28% $3.4 94 II, otherwise Net 5% MIA 96 11% 20% bn Outperformance IRR(1) 98 Reuters. 7% 2001—3Q03 net invested 16% Fun
Slide 17: Apollo's Value-Oriented Investment Approach
Apollo’s 6.6x 7.7x 9.6x 6.1x 9.0x Classic Composition(4) 57% Buyout 28% Fund Vintage: Total Invested/Committed*: Creation Apollo 5.3x 10.4x Entry Investments Announced Opportunistic Corporate *As 1. investment estimates 2. 3. 4. 5. As Where S&P Classic of 15% V VI VII VIII Invested: Commitments: of
Slide 18: Credit Highlights
$107.7bn –Highlights Leverage Diversified strategies 3% $3.7bn European NPLs ($5.2bn 23% $10.8bn Opportunistic Significant 45% $48.3bn advised) 10%(non-sub- 2004 $1.6 $107.7 Credit $2.1bn $2.9 $3.7 $1.8 $Realized lized $0.8 ($bn) Note: 17 due. 5% $91.6bn 525 U.S. $2.8 30 14% $25.0bn –2010 2004 ‘Draw
Slide 19: Apollo's Global Credit Platform Impact
Apollo’s Global Impact De-leveraging Investor Apollo Senior High Credit Mezzanine integrated private Stressed Distressed Rescue Broad sourcing in Shipping NPLs Aircraft RMBS CLOs Insurance-Linked Bank Proven develop before Benefits 18 theYield Platforms U.S. origination platform the Loans Credit of
Slide 20: Athene: Liabilities and Assets
Athene: Liabilities Assets Services Apollo Athene’s Athene company $60bn and capital Amsterdam: insurance -October channels: 19 acquisition Approximately Apollo Team Provides 100% Earns Originally Led Completed Seeks the by in vehicle of and Asset the Holding rate of to Differentiated 2013, business
Slide 21: Real Estate Highlights
$9.0bn –Highlights recapitalization Manages Select Mezzanine Hospitality Single Condominium Growth Real 33% Equity Total 67% Pace $$1.5bn $5,530 $1.6 ($bn) $0.5 25 $1.3 20$5.9bn 2.5 $Estate of AUM: 2010 Investment 1.7 family in average Capital inin Apollo total Apollo’s lending 2011 Business Debt fe
Slide 22: Agenda
1. Appendix Agenda 2. 3. 4. 21 OverviewSegments Business Financial Overview of Apollo
Slide 23: Financial Focus and Flexible Business Philosophies
Financial Financially Focus –Flexible Committed 22Manage Generate Stable Disciplined Maintain Flexible onnon-performance dividend Management leverage policy significant sufficient conservative to expenditure maintaining allowing policy and liquidity free Business Philosophies interest on based manag
Slide 24: Robust Fee-Generating AUM Growth
$Robust Private Total 2011 2012 $28 2013 $34 $32 CAGR Fee-Generating 20.1% 56.9% 5.1% 33.8% 32.7% YE Senior 20% Mezzanine Distressed 6% Event-Driven subadvised) 14% Note: Q3 U.S. 15% Structured Credit Opportunistic 8% 5% 3% Loans Non-Performing 2% 23in2014 Athene 2011 5% European 37% 27 50 88 92 bil
Slide 25: Strong Fee-Related Earnings and ENI Growth
$Strong Total Fee-Related Distributions LTM $76 $1,400 ($mm) $1,000 $1,200 $579 $800 $811 $600 $400 $392 $200 2005 $0 Advisory Management $223 ($322) ($0.86) 197 Mgmt. Real Private 4% 1. 65% Credit 31% 2. 3. 24 in As Please 339 millions, Estate After-Tax $558 $513 $314 $160 2006 $331 Q3 of$1,476 Mgm
Slide 26: Business Metrics and Fee-Related Earnings
$ in Incentive 2014 Advisory NII Total Compensation Non-Compensation Other Management Equity-Based Interest Depreciation Fee-Related Operating Mgt. 25 millions, Business Comp Non-Comp Management Income Expense & Metrics % Transaction EBITDA and Fees Business except Fees—AINV Comp (Loss) of ENI Margi
Slide 27: Carried Interest and Incentive Income Detail
$ in Carried 2014 ENI Equity Incentive Realized Private Credit Real Total Net 26 Realized millions, –Estate Estate—15 Estate—7—1 Estate—5 Carried Profit Net Realized Total 7Method 36 74 37 Equity($449) Equity($97) Equity 481 Carried Profit Business Carried 138 180 63——2 Sharing Carried Profit Intere
Slide 28: Flexible Cash Distribution Policy
Flexible Cash $416 $581 $339 $98 $157 $227 $264 Q1’12 Apollo’s and conduct Apollo the 27 interest regular related $94 $403 $308 Distributions Q2’12 intends provides of Distribution Distribution its $434 quarterly payables Q3’12 business. toadistribute regular Declared distribution in Q4’12 Policy Po
Slide 29: Strong Cash and Key Financial Condition
Strong Key Cash Investments 2024 2013 Revolving Net Market A Rated Undrawn $500 January Selected 2014 Interest Leverage Fee-Related (Fee-Related Debt 1. 2. 3. Athene 4. 5. were 6. 28 /As Financial Net Includes On A- Carried Cash Financial used $1,016 /738 AMH AMI Senior million & of July by of Fee-R
Slide 30: Future Management Fee and Carry Potential
Future $33.6 $8.3 $82.7 AUM Eligible Carry- Uninvested $1.9bn $4.8bn $0.5bn $22.4bn Equity Private $9.2bn Credit $0.9bn Estate Real $29.5bn 1. $9.3bn Generating Currently Not $43.9bn Carry Apollo Apollo’s 2. on 29 Based Potential Slide billion billion Currently Carry fund Generating 35. on three dis
Slide 31: Agenda
1. Appendix Agenda 2. 3. 4. 30 OverviewSegments Business Financial Overview of Apollo
Slide 32: Bridge from Net Income to Distributable Earnings
$Bridge LTM Management Realized Athene Equity-Based Depreciation Taxes Distributable Unrealized Add Less: Total Income Non-Cash Amortization Net 1. 2. in Please Represents Realized Unrealized Loss (Loss) millions Back: Economic Equity-Based Depreciation and to Capital Tax Investment refer (Income) D
Slide 33: Carried Interest Receivable by Private Fund
$Carried Private Fund Other Credit U.S. Opportunistic Structured European Non-Performing Real CPI AGRE Other—4 Total *Note: became the inremaining millions Other Performing Estate VII VI V Private Credit Real $2,004 IV (AAA, Funds As US Equity 134 Interest subject 270 11 $904 3Credit of $11 Estate C
Slide 34: Managing Partners Structure Chart
Structure Managing BRH GP, 88.59% 65.36% voting AGM Class Management, (Class Group 34.64% APOLLO (42.27% Intermediate 100% 42.27% Apollo 33 Ltd. Holdings Aof 100% 11.41% A B Units) power Asset Operating Shareholders of Holdings, Shares)(Our LP of Shares) Chart GLOBAL Partners total the Apollo 100% H
Slide 35: Credit and Fund Summary Return Information
Credit ALM ALME Compass Cornerstone Rampart Rashinban Sextant Stone Apollo It indicative of Ventures 34 should September V VI VII VIII IV X XI XIV Tower Fund Value Tactical Total Investment European Senior Commercial Residential Strategic Fund Financial Structured Credit Emerging I2007 II 2006 2012
Slide 36: Definitions
Definitions Assets funds, plus such services, used leverage we value partnerships accounts clauses Our agreement of for investment not comparable Fee-generating management other “adjusted unrealized fees, investments, includes Uncalled supplemental useful which Carry following: partnership or Uninve
Slide 37: Definitions and Important Notes Regarding Performance
Definitions Distributable distribution. management (ii) compensation Apollo’s Fee-Related interest Realized potential Important number terms special Index Barclays capitalization-weighted very reflect S&P/LSTA European Western Europe well Apollo, not implied exemplary, Credit relied 36 realized resp
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