Apollo Global Management, Inc. (new) · NYSE:APO

Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (February 2015)

33 slides from Apollo Global Management, Inc. (new)'s investor presentation, February 2015

  1. Slide 1: Investor Presentation

    Investor Presentation February 2015 Information contained herein is as of December 31, 2014 unless otherwise noted. Not for distribution in whole or in part without the express written consent of Apollo Global Management, LLC. It should not be assumed that investments made in the future will be prof

  2. Slide 2: Forward Looking Statements & Other Important Disclosures

    Forward Looking Statements & Other Important Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exch

  3. Slide 3: Apollo Global Management, LLC

    Apollo Global Management, LLC Apollo Global Management, LLC is a leading global alternative investment manager in private equity, credit and real estate Ticker (NYSE) APO Market Capitalization(1) $9.3 billion Total Assets Under Management(2) $160 billion AUM CAGR (2004 – 2014) 30% LTM Dividend Yield

  4. Slide 4: Agenda

    Agenda 1. Overview of Apollo 2. Business Segments 3. Financial Overview 3

  5. Slide 5: Apollo's Global Platform

    Apollo’s Global Platform Firm Profile(1) Principal Investment Businesses Founded: 1990 Private Equity Credit(3) Real Estate AUM: $160bn(2) $41bn AUM $108bn AUM $10bn AUM Employees: 845  U.S. Performing Credit  Residential and commercial  Opportunistic buyouts Investment Prof.: 320  Distressed bu

  6. Slide 6: Apollo's Integrated Business Model

    Apollo’s Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Development of industry insight through : Credit Equity – Over 300 current and former portfolio companies Real – Strategic relationships with industry Estate executives – Significant relati

  7. Slide 7: Apollo's Expertise – Nine Core Industries

    Apollo’s Expertise – Nine Core Industries Financial & Consumer Distribution & Manufacturing Media, Cable Packaging & Satellite & Natural Chemicals Business & Retail Transportation & Industrial & Leisure Materials Wireless Resources Services ATHLON ENERGY US Assets Note: The listed companies are a sa

  8. Slide 8: Long Track Record of Success in Private Equity

    Long Track Record of Success in Private Equity Apollo’s Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 25% 21.6% 18.8% 20.3% 15.7% 16.8% 14.1% 13.8% 11.0% 8.1% 9.6% 8.6% 9.6% 6.2% 4.3% 4.6% Barclays S&P 500 Index (1) NCREIF (2) All Private Equity

  9. Slide 9: Strong Credit Performance Across Asset Classes

    Strong Credit Performance Across Asset Classes Annualized Net Return U.S. Performing Credit: Opportunistic Credit: European Credit & NPLs: Credit Opportunity Funds I & II(1) Apollo Investment Corporation (AINV)(2) AIE II(3) & EPF(4,5) Weighted Average Yield on Total Net IRR Since Inception Net IRR N

  10. Slide 10: Significant Growth and Diversification

    Significant Growth and Diversification Apollo’s Total AUM Has Grown Significantly Over the Last Decade Private Equity Credit Real Estate Unallocated Strategic Accounts $160 Last 3 Years ($ in billions) ($bn) $10 CAGR $42 Since Capital Raised IPO 25% $112 $9 $30 Value Creation 10-YR $108 CAGR 30% $68

  11. Slide 11: Apollo Has a Clear Path for Continued Growth

    Apollo Has a Clear Path for Continued Growth  Apollo will continue to identify opportunities to leverage its existing platform and diversify into areas with meaningful synergies with its core business Favorable Secular Trends Growth Strategies Selected Examples  Investors continue to increase Athe

  12. Slide 12: Proven Ability to Raise Capital Globally

    Proven Ability to Raise Capital Globally Overview of Apollo’s Marketing Capabilities Fundraising Activity Breakdown (Trailing 3 Years) Unallocated  Full-scale solutions provider in alternatives $3bn Real Estate 7%  Integrated global team structure incorporating: $2bn 6% – Sales Coverage Private Eq

  13. Slide 13: Various Paths For Public Investors to Access Apollo's Expertise

    Various Paths For Public Investors to Access Apollo’s Expertise Ticker: AUM: List Year: Publicly Traded Alternative APO $159.8 billion 2011 Investment Manager (NYSE) Business Development AINV Company (NASDAQ OMX) $4.2 billion 2004 (BDC) ( Closed-End Limited AAA $2.1 billion (NAV) 2006 Partnership (E

  14. Slide 14: Agenda

    Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 13

  15. Slide 15: Private Equity Business Overview

    Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(1)  $41.0bn in total AUM – $30.3bn fee-generating, $14.5bn carry-generating  $22.4bn of uncalled commitments 25% – Current flagship PE fund (Fund VIII) has $18.4bn of 20.3% committed capital 14.1% 9.6% – Fund

  16. Slide 16: Apollo's Value-Oriented Approach

    Apollo’s Value-Oriented Approach Fund V Fund VI Fund VII Fund VIII Vintage: 2001 Vintage: 2006 Vintage: 2008 Vintage: 2013 Total Commitments: $3.7bn Total Commitments: $10.1bn Total Commitments: $14.7bn Total Commitments: $18.4bn Total Invested: $5.2bn Total Invested: $12.5bn Total Invested: $15.2bn

  17. Slide 17: Flexible Investment Strategy Helps to Buy Right

    Flexible Investment Strategy Helps to Buy Right  Apollo Funds Rely on Three Investment Strategies to Capture Value Across Market Cycles Corporate Carve-Out Distressed For Control Opportunistic Buyouts  Build de novo businesses with  Leader in complex corporate  Focus on industries and geographie

  18. Slide 18: Credit Business Overview

    Credit Business Overview Highlights Significant Growth in Credit AUM  $108.4bn in total AUM 2004 – 2014 CAGR: 52% – $92.2bn fee-generating, $16.2bn carry-generating $108.4  Same value-oriented approach as private equity  Leverage Apollo’s core industry expertise and benefit from integrated platfo

  19. Slide 19: Apollo's Credit Platform is at the Crossroads of Global Credit

    Apollo’s Credit Platform is at the Crossroads of Global Credit Global Credit Themes Impact of secular change in De-leveraging of Investor demand for yield & financial re-regulation global financial balance sheets opportunistic credit Apollo Credit Platform Senior Loans Stressed Credit NPLs CLOs Bank

  20. Slide 20: Athene: Differentiated & Strategically Important Growth Driver

    Athene: Differentiated & Strategically Important Growth Driver Services Assets Liabilities Assets  Athene Asset Management, L.P. (“AAM”) is a subsidiary of  Athene Holding Ltd. (“Athene”) is an insurance holding Apollo and is included within the Credit segment company focused on fixed annuities wi

  21. Slide 21: Real Estate Business Overview

    Real Estate Business Overview Highlights Growth in Apollo’s Real Estate AUM  $9.5bn in total AUM Real Estate – $6.2bn in fee generating, $0.8bn in carry-generating Equity 33%  Global debt and equity platform with a presence in North America, Europe and Asia  Value-oriented approach for equity inv

  22. Slide 22: Agenda

    Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 21

  23. Slide 23: Drivers of Our Business

    Drivers of Our Business  Business Model Driven by Management Business, Incentive Business and Balance Sheet, Across Three Segments PE Credit RE Total Excl. Athene Athene AUM  $41bn  $61bn  $48 bn  $10bn  $160bn(1) Management Bus. Management  FGAUM  $30bn  $44bn  $48bn  $6bn  $129bn Fees

  24. Slide 24: Apollo Has Displayed Growth Across Key Operating Metrics

    Apollo Has Displayed Growth Across Key Operating Metrics Management Business Revenue ($mm) Management Business ENI ($mm)(1) $578 $1,258 CAGR 23% $964 CAGR 67% $331 $811 $617 $223 $558 $74 $76 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Margin:(1) 13% 12% 27% 34% 46% Gross Realized Carry ($mm)

  25. Slide 25: Strong and Growing Management Business

    Strong and Growing Management Business  Growth in Fee Generating AUM and Focus on Operating Margins has Driven Strong Growth in Management Business ENI and Cash Earnings Management Business Economic Net Income (Pre-tax) Management Business Distributable Earnings (Pre-tax) ($mm) ($mm) $578 CAGR $435

  26. Slide 26: Future Carry and Fee Potential

    Future Carry and Fee Potential $33 billion of Uncalled $8 billion of AUM with Future $78 billion of Commitments(1) Management Fee Potential(1) Carry-Eligible AUM(2) Real Real Estate Estate $1.0bn $0.6bn Uninvested Carry- Currently Credit Credit Eligible Generating $8.7bn $4.6bn AUM Carry Private $28

  27. Slide 27: Strong, Stable Balance Sheet

    Strong, Stable Balance Sheet Apollo’s Balance Sheet Highlights ($mm) Cash $1,204 Long-Term Debt Net Cash per share $1,034 $0.42 (3) A / A- Rated by S&P and Fitch Gross Accrued Carry $959 Profit Sharing Payable(1) $435 Net Accrued Carry per share $1.30(3) Undrawn credit revolver Investments in Privat

  28. Slide 28: Investor Relations Contacts

    Investor Relations Contacts Gary Stein Head of Corporate Communications gstein@apollolp.com 212-822-0467 Noah Gunn Investor Relations Manager ngunn@apollolp.com 212-822-0540 27

  29. Slide 29: APO's Financial Summary – Combined Segments

    APO’s Financial Summary – Combined Segments For the Three Months Ended For the Year Ended December 31, December 31, $ in millions 2014 2013 2014 2013 2012 Total Assets under Management(1) Private Equity $41,049 $49,908 $41,049 $49,908 $37,832 Credit 108,445 100,886 108,445 100,886 64,406 Real Estate

  30. Slide 30: GAAP to ENI Earnings Reconciliation

    GAAP to ENI Earnings Reconciliation For the Three Months Ended For the Year Ended December 31, December 31, $ in millions 2014 2013 2014 2013 2012 GAAP to ENI Earnings Reconciliation Net income (loss) attributable to Apollo Global $22.1 $159.2 $168.2 $659.4 $311.0 Management, LLC Impact of non-cash

  31. Slide 31: Credit Fund Summary

    Credit Fund Summary Apollo Fund Year of Inception Apollo Fund Year of Inception Apollo Credit Liquidity Fund 2007 ALM VII (R)-2 Ltd. 2013 Apollo Credit Opportunity Fund I 2008 ALM VIII 2013 Apollo Credit Opportunity Fund II 2008 ALM X 2014 Apollo Credit Opportunity Fund III 2013 ALM XI 2014 Apollo S

  32. Slide 32: Endnotes & Definitions

    Endnotes & Definitions Endnotes: Past performance is not indicative nor a guarantee of future results. See the last page for “Important Notes Regarding the Use of Index Comparisons.” See prior slide for a full listing of Apollo’s Credit Funds, which may have different or worse performance than the

  33. Slide 33: Endnotes & Definitions (continued)

    Endnotes & Definitions (continued) Uninvested Carry Eligible AUM – refers to available capital for investment or reinvestment subject to the provisions of applicable limited partnership agreements or other governing agreements that are not currently part of the NAV or fair value of investments that

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