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

Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (October 2012)

28 slides from Apollo Global Management, Inc. (new)'s investor presentation, October 2012

  1. Slide 1: Apollo Global Management, LLC - Investor Overview

    Apollo Global Management, LLC - Investor Overview October 2012

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

    Forward Looking Statements and Other Important Disclosures This presentation may contain forward looking statements that are within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, discu

  3. Slide 3: Apollo Global Management, LLC

    Apollo Global Management, LLC Apollo Global Management is a leading global alternative investment manager in private equity, credit-oriented capital markets and real estate Ticker: APO Exchange: New York Stock Exchange Trading Price (October 12, 2012): $14.48 Market Capitalization $5.6 billion L12M

  4. Slide 4: Agenda

    Agenda 1. Overview of Apollo 2. Secular Opportunity 3. Business Segments 4. Financial Overview 3

  5. Slide 5: Investment Highlights

    Investment Highlights  Leading global alternative investment manager with a diversified and integrated platform and highly scalable business model  22 year history of industry-leading returns, especially during periods of market turbulence  Well positioned to capitalize on secular growth dynamics

  6. Slide 6: Apollo Global Management Overview

    Apollo Global Management Overview Firm Profile (1) Principal Investment Businesses (1) Founded: 1990 Private Equity Natural Resources (2) Capital Markets (3) Real Estate AUM: $105 bn Employees: 616 $38bn ~$1bn $56bn $8bn Inv. Prof.: 237 AUM AUM AUM AUM Investment Approach Global Footprint  Value-or

  7. Slide 7: Apollo's Fully Integrated Business Model

    Apollo’s Fully Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Equity Development of industry insight through : Real – Over 300 current and former portfolio Estate Natural companies Resources – Exclusive strategic relationships with Capital indus

  8. Slide 8: Apollo's Expertise – Nine Core Industries

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

  9. Slide 9: Significant Growth and Diversification

    Significant Growth and Diversification Apollo’s Total AUM Has Grown By More Than 10x Over the Last Decade ($ in millions) Total AUM: $105 bn $2,696 Scale Existing $7,861 Businesses New Product Development Apollo AUM CAGR: 35% $7,971 $6,469 $56,108 Geographic $495 Expansion 1990-2002: $22,283 $31,867

  10. Slide 10: Growing Global Base of Loyal Long-Term Investors

    Growing Global Base of Loyal Long-Term Investors Long-Lived Asset Base1 Recent Mandates for Large Strategic Partnerships Total AUM: $68 billion Revenue Breakdown by Management Fee Type Customized strategic partnerships enable Apollo’s institutional Fewer than 7 Years investors to be more opportunist

  11. Slide 11: Significant Progress Since Our IPO

    Significant Progress Since Our IPO Since its IPO in March, 2011, Apollo has continued to execute against its growth plan  Increased total AUM by 50% from $70 billion to $105 billion  Raised $9.6 billion of third party capital across the Apollo platform  Deployed $5.2 billion of private equity cap

  12. Slide 12: Agenda

    Agenda 1. Background & Business Model 2. Secular Opportunity 3. Business Segments 4. Financial Overview 11

  13. Slide 13: Current Pension Allocation Plans are Broken

    Current Pension Allocation Plans are Broken Historical Asset Class Returns 20 Year 10 Year 5 year Projected (2) Cash, Other; 6% (1) Equities 7.8% 2.9% (0.3%) 3-5% 41% Typical Pension Allocation(1) (1) Fixed Income 6.5% 5.8% 6.5% 2-4% 33% (1) Alternatives 12% 13.5% 12.0% 7.2% 15+% (1) Real Assets 8.1

  14. Slide 14: Alternatives are Growing as Investors Search for Yield

    Alternatives are Growing as Investors Search for Yield “Cash-strapped US Pension Funds Ditch Portfolio Allocations to Alternatives Have Stocks For Alternatives” Quadrupled Since 1995 (1) — Reuters (8/18/12) 60% “Alternatives Becoming Mainstream” 49% 51% 50% — Asset Allocation News (7/27/12) 46% 41%

  15. Slide 15: Agenda

    Agenda 1. Background & Business Model 2. Secular Opportunity 3. Business Segments 4. Financial Overview 14

  16. Slide 16: Private Equity Business Overview

    Private Equity Business Overview Highlights(1) Steady Pace of Capital Deployment  $38.2bn in AUM ($27.8bn in fee generating) ($mm) – 16% CAGR (12/31/07- 6/30/12) fee generating $950mm average per quarter $1,657 $1,266 $1,226  $6.6bn of “dry powder” Realized $984 $802 $757 $5,530 – Latest fund (Fun

  17. Slide 17: Capital Markets Business Overview

    Capital Markets Business Overview(1) Highlights Diversified Mix of AUM  Established in 2003 Distressed & Event Driven  $56.1 billion AUM ($45.5 billion in fee-generating) Hedge Funds Mezzanine Funds  Same value-oriented approach as private equity $4.0bn $2.0bn 4%  Leverage core industry expertis

  18. Slide 18: Real Estate Business Overview

    Real Estate Business Overview Overview(1) Growth in Apollo’s Real Estate AUM ($mm)  Apollo Global Real Estate (AGRE) leverages Apollo’s investment expertise and long history $7,971 $7,861 of investing in real estate-related sectors $6,469  AGRE’s investment team has significant $2,534 $2,597 exper

  19. Slide 19: Agenda

    Agenda 1. Background & Business Model 2. Secular Opportunity 3. Business Segments 4. Financial Overview 18

  20. Slide 20: Apollo's Primary Business Drivers

    Apollo’s Primary Business Drivers  Management fees are earned based on a percentage of fee- Management Management Fees Fees generating assets Assets Assets Under Under  Transaction fees are generated on Management Management certain completed PE & RE transactions Transaction Transaction and and Ad

  21. Slide 21: Steady Growth of Management Fee Revenue

    Steady Growth of Management Fee Revenue Management Business Revenues Management Fee as % of Avg. Fee Generating AUM ($mm) 0.94 % 1.00 % 1.03 % $700 0.80 % $617.0 $600 $579.3 $558.3 $512.7 $500 $402.5 Private Equity Capital Markets $391.6 Q2 2011 Q2 2012 $400 $313.8 $300 Revenue Breakdown by Business

  22. Slide 22: Overview of Carried Interest

    Overview of Carried Interest % of Portfolio Marks Valued Using Exchange $ in millions As of 6/30/12 or Broker Quotes(1) as of 6/30/12 Carried Interest Receivable by Segment: Private Private Equity $990.6 59% Equity Capital Markets 308.8 Capital 87% Markets Real Estate 3.4 Real 47% Total Carried Inte

  23. Slide 23: AGM Key Balance Sheet Indicators

    AGM Key Balance Sheet Indicators AGM Key Balance Sheet Indicators as of June 30, 2012 ($ in millions, except per share data) Cash and Cash Equivalents $620 G.P and L.P. Investments Held by AGM 404 Carried Interest Receivable 1,302 Net Carry Receivable Profit Sharing Payable 666 $636 Shareholders Equ

  24. Slide 24: Cash Distributions to Shareholders

    Cash Distributions to Shareholders  Since the beginning of 2011, Apollo has distributed an average quarterly cash distribution of $0.27 per share(1) ($ per share) $0.50 $0.46 $0.40 $0.30 $0.27 ~$0.12 from $0.24 $0.25 $0.24 one-time $0.22 $0.20 realizations $0.20 ~$0.08 from $0.10 interest and divid

  25. Slide 25: AGM's Financial Summary – Combined Segments

    AGM’s Financial Summary – Combined Segments(1) For the Three Months Ended June For the Six Months Ended June $ in millions 2012 2011 2012 2011 Total Assets under Management(2) Private Equity $38,228 $40,430 $38,228 $40,430 Capital Markets 56,108 23,684 56,108 23,684 Real Estate 7,861 7,600 7,861 7,6

  26. Slide 26: APO NYSE

    APO NYSE

  27. Slide 27: ENI to GAAP Earnings Reconciliation

    ENI to GAAP Earnings Reconciliation ($'s in millions) For the Three Months Ended For the Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 Reconciliation of GAAP Net Income to ENI and Adjusted ENI Net Income (loss) attributable to Apollo Global Management, LLC . . . . . . . .

  28. Slide 28: Endnotes

    Endnotes Footnotes from Page 15: 1. Data as of June 30, 2012. 2. Information for Apollo’s distressed investment experience is provided to illustrate the Firm’s experience making distressed investments since the Firm’s inception. While Apollo believes the performance represents all such distressed in

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