34 slides from Apollo Global Management, Inc. (new)'s earnings presentation, May 5, 2016
Slide 1: Apollo Global Management, LLC Reports First Quarter 2016 Results
Apollo Global Management, LLC Reports First Quarter 2016 Results New York, May 5, 2016-- Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the first quarter ended March 31, 2016. “Market dislocations have created many compelli
Slide 2: About Apollo
About Apollo Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management of approximately $173 billion
Slide 3: Apollo Global Management, LLC First Quarter 2016 Earnings
Exhibit 99.2 Apollo Global Management, LLC First Quarter 2016 Earnings May 5, 2016
Slide 4: Apollo 1Q'16 Financial Results Highlights
Apollo 1Q'16 Financial Results Highlights ▪ GAAP Net Loss of $32.8 million (-$0.19/share) GAAP & ▪ Economic Net Loss (“ENI”) of $73.0 million (-$0.18/share) Economic ▪ Management Business (“MB”) Economic Income (“EI”) of $82.1 million ($0.20/share) Earnings ▪ Incentive Business (“IB”) Economic Loss
Slide 5: Management Business Economic Earnings Summary
Economic Earnings Summary $ in thousands, except per share data 1Q'15 4Q'15 1Q'16 1Q’15 LTM 1Q'16 LTM Management Fees $224,713 $233,149 $230,933 $901,907 $918,113 Advisory and Transaction Fees from Affiliates, net 9,543 (20,083) 7,999 209,560 12,642 Carried Interest Income from Affiliates 10,774 9,7
Slide 6: Management Distributable Earnings Summary
Distributable Earnings Summary $ in thousands, except per share data 1Q'15 4Q'15 1Q'16 1Q’15 LTM 1Q'16 LTM Management Business Economic Income $91,559 $50,577 $82,084 $536,381 $304,388 Management Less: Non-Cash Revenues (2,784) (842) (842) (204,204) (3,369) Business Add Back: Equity-Based Compensati
Slide 7: Private Equity
Private Equity Commentary Business Drivers ▪ Economic Loss driven by negative unrealized mark-to-market performance in carry generating funds within the Incentive Business, 1Q'16 LTM primarily Fund VII and AAA/Other ▪ Traditional private equity fund appreciation during the quarter of 0.5%(1) was dri
Slide 8: Credit
Credit Commentary Business Drivers ▪ Modest Economic Income driven by strength in Management Business earnings offsetting weaker Incentive Business results adversely impacted by 1Q'16 LTM the mark-to-market change in the value of Athene ▪ Total credit gross and net returns(2) of 1.1% and 0.9%, respe
Slide 9: Real Estate
Real Estate Commentary Business Drivers ▪ Modest Economic Loss driven by both the Management and Incentive Businesses 1Q'16 LTM ▪ On February 26, 2016, Apollo’s externally managed commercial mortgage REIT (ARI), announced the signing of a definitive merger Inflows $432mm $3.2bn agreement with Apollo
Slide 10: Total AUM & Fee-Generating AUM
Total AUM & Fee-Generating AUM 1Q'16 Total AUM Rollforward(1) 1Q'16 Fee-Generating AUM Rollforward(1) ($ in millions) ($ in millions) Private Equity Credit Real Estate Total Private Equity Credit Real Estate Total 4Q'15 $37,502 $121,361 $11,260 $170,123 4Q'15 $29,258 $101,522 $7,317 $138,097 Inflows
Slide 11: Carry-Eligible & Carry-Generating AUM
Carry-Eligible & Carry-Generating AUM Carry-Eligible AUM $83 billion Carry-Eligible AUM ($ in millions) Segment 1Q'15 4Q'15 1Q'16 Private Equity $35,302 $32,782 $32,751 Uninvested Currently Credit 42,207 47,207 48,216 Carry- Generating Eligible Carry Real Estate 2,030 2,440 2,273 AUM $32.5bn $26.7bn
Slide 12: Capital Deployment & Dry Powder
Capital Deployment & Dry Powder ▪ Capital deployed across the platform totaled $2.2 billion for the quarter and $13.1 billion over the last twelve months. The pending investment commitments in private equity that have not yet been funded (excluding co- investments) totaled $4.4 billion as of March 3
Slide 13: Shareholder Distribution
Shareholder Distribution ▪ Generated $0.25 of DE per share of common and equivalent during the quarter, driven by Management Business earnings ▪ Apollo declared a quarterly distribution of $0.25 per Class A share to holders of record as of May 20, 2016, which is payable on May 31, 2016 ($ in thousan
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights ▪ At March 31, 2016, Apollo had $542 million in total cash, $1.2 billion of investments, and $232 million of net carried interest receivable for a total net value of $2.0 billion, or $4.86 DE per share outstanding ▪ Long-term debt of $1.0 billion, includes $495 million in se
Slide 15: Carried Interest Receivable & Income (Loss) Detail
Carried Interest Receivable & Income (Loss) Detail As of For the Three Months Ended March 31, 2016 March 31, 2016 Carried Interest Unrealized Carried Realized Carried Total Carried Receivable on an Interest Income (Loss) Interest Income Interest Income (Loss) ($ in thousands) Unconsolidated Basis Pr
Slide 16: Permanent Capital Vehicles
Permanent Capital Vehicles ▪ As of March 31, 2016, Apollo had $84.4 billion of AUM across seven Permanent Capital Vehicles(1) ▪ Apollo generated $111.4 million of Management Business revenues from Permanent Capital Vehicles during the quarter, or $445.8 million on an annualized basis, representing 4
Slide 17: Athene Asset Management
Athene Asset Management ▪ As of March 31, 2016, AAM had $60.4 billion of total AUM in accounts owned by or related to Athene Holding ▪ Of the total AUM, $13.9 billion, or 23%, was either sub-advised by Apollo or invested in funds and investment vehicles managed by Apollo, compared to $13.5 billion a
Slide 18: GAAP Statement of Operations
GAAP Statement of Operations ($ in thousands, except per share data) 1Q'15(1) 4Q'15 1Q'16 Revenues: Advisory and transaction fees from affiliates, net $9,543 ($20,083) $7,999 Management fees from affiliates 224,889 236,158 233,795 Carried interest income (loss) from affiliates 68,592 (22,424) (120,9
Slide 19: Appendix
Appendix
Slide 20: Summary of Combined Segments
Summary of Combined Segments ($ in thousands, except per share data and where noted) 1Q’14 2Q’14 3Q’14 4Q’14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q’16 LTM Management fees from affiliates $223,830 $228,858 $227,693 $220,643 $224,713 $227,273 $226,758 $233,149 $230,933 $901,907 $918,113 Advisory a
Slide 21: Private Equity
Private Equity ($ in thousands, except per share data and where noted) 1Q’14 2Q’14 3Q’14 4Q’14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q’16 LTM Management fees from affiliates $79,421 $82,045 $76,848 $76,755 $74,597 $74,269 $71,876 $75,094 $74,918 $310,245 $296,157 Advisory and transaction fees fro
Slide 22: Credit
Credit ($ in thousands, except per share data and where noted) 1Q’14 2Q’14 3Q’14 4Q’14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q’16 LTM Management fees from affiliates $131,629 $134,605 $139,645 $132,863 $139,452 $140,632 $141,706 $143,451 $142,511 $546,565 $568,300 Advisory and transaction fees fr
Slide 23: Real Estate
Real Estate ($ in thousands, except where noted) 1Q’14 2Q’14 3Q’14 4Q’14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q’16 LTM Management fees from affiliates $12,780 $12,208 $11,200 $11,025 $10,664 $12,372 $13,176 $14,604 $13,504 $45,097 $53,656 Advisory and transaction fees from affiliates, net 949 —
Slide 24: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Distributable Earnings $146,019 $201,611 $144,579 $130,612 $104,755 Net unrealized carried interest loss (58,148) (53,023) (99,228) (40,489) (103,209) Unrealized investment and other income (loss) (45) 25,436
Slide 25: Investment Records as of March 31, 2016
Investment Records as of March 31, 2016 Drawdown As of March 31, 2016 Committed Total Invested Realized Remaining Unrealized Total Vintage Year Total AUM Gross IRR(1) Net IRR(1) Capital Capital(1) Value(1) Cost(1) Value(1) Value(1) ($ in millions) Private Equity: Fund VIII 2013 $18,807 $18,377 $5,03
Slide 26: Investment Records – Notes
Investment Records – Notes (1) Refer to the definitions of Total Invested Capital, Realized Value, Remaining Cost, Unrealized Value, Total Value, Gross IRR and Net IRR in the non-GAAP financial information & definitions section of this presentation. (2) Returns have not been presented as the fund co
Slide 27: Investment Records as of March 31, 2016
Investment Records as of March 31, 2016 Liquid / Performing Net Returns For the Three For the Three For the Year Ended Vintage Year Total AUM Months Ended Months Ended December 31, 2015 ($ in millions) March 31, 2016 March 31, 2015 Credit: Hedge Funds(1) Various $6,353 2% 2% — (2) CLOs Various 13,78
Slide 28: Investment Records – Notes
Investment Records – Notes (1) Hedge funds includes Apollo Credit Strategies Master Fund Ltd., Apollo Credit Master Fund Ltd., Apollo Credit Short Opportunities Fund and Apollo Value Strategic Fund, L.P. (2) CLO returns are calculated based on gross return on invested assets, which excludes cash. (3
Slide 29: Share Rollforward
Share Rollforward 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Total GAAP Weighted Average Outstanding Class A 165,968,620 170,538,381 176,271,703 180,474,991 182,764,464 Shares - Basic and Restricted Shares Non-GAAP Adjustments: AOG Units 222,545,477 221,387,378 218,272,537 216,181,813 216,169,856 RSUs 14,672,264
Slide 30: Non-GAAP Financial Information & Definitions
Non-GAAP Financial Information & Definitions Apollo discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (“Non-GAAP”): ▪ “Economic Income” (pre
Slide 31: Non-GAAP Financial Information & Definitions Cont’d
Non-GAAP Financial Information & Definitions Cont’d ▪ “Assets Under Management”, or “AUM”, refers to the assets we manage or advise for the funds, partnerships and accounts to which we provide investment management or advisory services, including, without limitation, capital that such funds, partner
Slide 32: Non-GAAP Financial Information & Definitions Cont’d
Non-GAAP Financial Information & Definitions Cont’d ▪ “Capital deployed” or “Deployment” is the aggregate amount of capital that has been invested during a given period (which may, in certain cases, include leverage) by (i) our drawdown funds (ii) SIAs that have a defined maturity date and (iii) fun
Slide 33: Non-GAAP Financial Information & Definitions Cont’d
Non-GAAP Financial Information & Definitions Cont’d ▪ Net IRR of a real estate fund represents the cumulative cash flows in the fund (and not any one investor in the fund), on the basis of the actual timing of cash inflows received from and outflows paid to investors of the fund (assuming the ending
Slide 34: Forward Looking Statements
Forward Looking Statements In this presentation, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, LLC, together with its consolidated subsidiaries. This presentation may contain forward-looking statements that are within the meaning of Secti