Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (May 2019)
34 slides from Apollo Global Management, Inc. (new)'s investor presentation, May 2019
Slide 1: Apollo Global Management Investor Presentation
APOLLO GLOBAL MANAGEMENT, LLC (NYSE: APO) Apollo Global Management Investor Presentation May 2019
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
Slide 3: Apollo Overview
Apollo Overview APOLLO
Slide 4: Apollo is a Leading Alternative Investment Manager
Apollo is a Leading Alternative Investment Manager Apollo Global Management is a leading global alternative investment manager with expertise in credit, private equity, and real assets APO $303 billion $13.8 $148 billion 39% Total Assets Under billion AUM in Permanent Capital Gross IRR in Private Ma
Slide 5: Apollo has a Globally Diversified Platform Across Asset Classes
Apollo has a Globally Diversified Platform Across Asset Classes Firm Profile1 Business Segments Founded: 1990 Credit Private Equity Real Assets AUM: $303 billion $194bn AUM $77bn AUM $32bn AUM • Corporate Credit • Opportunistic buyouts • Commercial real estate Employees: 1,212 • Structured Credit •
Slide 6: Assets Under Management have Grown More than 5x in 10 Years
Assets Under Management have Grown More than 5x in 10 Years AUM growth over the past ten years driven by the proliferation of yield-oriented permanent capital vehicles and continued success in opportunistic investing businesses Real Assets $303 Private Equity +$10bn billion +$47bn Credit Other Acqui
Slide 7: Deep Bench of Senior Management Talent
Deep Bench of Senior Management Talent Executive Committee Leon Black Josh Harris Marc Rowan Founder Co-Founder Co-Founder Chairman and CEO Senior Managing Director Senior Managing Director Scott Kleinman Jim Zelter Gary Parr Co-President Co-President Senior Managing Director Lead Partner, Private E
Slide 8: Apollo's Industry Expertise
Apollo’s Industry Expertise Media/ Manufacturing Natural Consumer Consumer Business Financial Chemicals Leisure Telecom/ & Industrial Resources & Retail Services Services Services Technology Note: The listed companies are a sample of Apollo private equity and credit investments. The list was compile
Slide 9: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Traditional Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception (1990) 39% 18% 25% 17% 15% 14% 14% 13% 12% 12% 10% 4% 5% 2% 1 2 3 Barclays Government S&P 500 Index All Private Equity Top Quartile PE Private Private 1 Credit Bond Ind
Slide 10: 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 Athene Asset Management✓ • Investors co
Slide 11: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Apollo’s Fundraising Capabilities Global Base of Long-Term Investors Latin America • Integrated global team structure incorporating sales Middle East 1% coverage, product specialists, and investor relations • Build new relationships and cross-sell across the
Slide 12: Permanent Capital Vehicles – A Strategic Differentiator
Permanent Capital Vehicles – A Strategic Differentiator Apollo has approximately $148 billion of AUM across seven Permanent Capital Vehicles1, which comprise of 49% of Apollo’s AUM, and 44% of management fees which are derived from this locked-in, stable capital • Life Reinsurance: - Athene (NYSE: A
Slide 13: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Company Name Ticker AUM Year of Listing Publicly Traded Alternative Apollo APO $303.0 billion 2011 Investment ( (NYSE) Manager Business Development Apollo AINV Investment $5.3 billion1 2004 Company (NASDAQ OMX) Corporation (BDC) Apollo
Slide 14: Business Segments
Business Segments APOLLO
Slide 15: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM ($ billions) • $194bn in total AUM – $157bn fee-generating • Same value-oriented approach as Private Equity 10-Year CAGR $194 • Leverage Apollo’s core industry expertise and benefit from 33% integrated platform • Products span broa
Slide 16: Accelerated and Diversified Growth in Credit Through Cycle
Accelerated and Diversified Growth in Credit Through Cycle Apollo Credit AUM ($ billions) $174 10-Year CAGR $145 38% $117 $105 $88 $92 $56 $7 $12 $15 $18 $28 2007 20073 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 and earlier Key Growth Drivers Total Return Apollo Asset Hedge US CLO CLO Li
Slide 17: Apollo Has a Range of Solutions Across the Credit Spectrum
Apollo Has a Range of Solutions Across the Credit Spectrum Apollo manages more than 150 discrete funds or accounts across a broad set of investment strategies Illustrative Composition of Apollo’s Credit Business $194 billion of AUM Target Return 15%+ Hedge Funds 10-15% Managed Accounts MidCap EM Deb
Slide 18: Athene & Athora: Differentiated & Strategic Growth Drivers
Athene & Athora: Differentiated & Strategic Growth Drivers • Founded in 2009, Athene Holding Ltd. (“Athene”, NYSE: ATH) is an insurance holding company focused on fixed annuities • Founded in 2016, Athora Holding Ltd. (“Athora”) is a standalone company focused on European insurance opportunities • T
Slide 19: Private Equity Business Overview
Private Equity Business Overview Highlights Long Track Record of Success in Private Equity1 • $77bn in total AUM - $46bn fee-generating • $36bn of dry powder, largely related to Fund IX ($22.4bn) • Value oriented: Transactions completed at lower EBITDA 25% multiples than industry averages • Investor
Slide 20: Supplemental Private Equity Fund Information
Supplemental Private Equity Fund Information1 Fund VII Fund VIII ANRP II PE Portfolio Composition Vintage Year: 2008 Vintage Year: 2013 Vintage Year: 2016 Private Investments Fund Size: $14.7bn Fund Size: $18.4bn Fund Size: $3.5bn Total Invested: $16.3bn Committed to Date: $17.2bn Committed to Date:
Slide 21: Three Pathways to Capture Value
Three Pathways to Capture Value Apollo’s traditional private equity funds rely on three investment strategies to capture value across market cycles Opportunistic Buyouts Corporate Carve-Out Distressed For Control • Focus on industries and geographies that • Build de novo businesses with • Leader in
Slide 22: Real Assets Business Overview
Real Assets Business Overview Highlights AUM Breakdown ($ billions) • $32bn in total AUM, including $25bn in fee-generating Infrastructure ($ in billions) • Global platform with a presence in North America, Europe Principal and Asia Finance • Value-oriented approach for equity investments targeting
Slide 23: Financial Information
Financial Information APOLLO
Slide 24: Drivers of Apollo Business
Drivers of Apollo Business Business model driven by fee related revenues, performance fees, and balance sheet investments across three segments Credit Private Equity Real Assets Total AUM1 $194bn $77bn $32bn $303bn Management Fee-Generating $157bn $46bn $25bn $228bn Fees AUM Transaction & Deal-Depen
Slide 25: Solid, Stable Balance Sheet
Solid, Stable Balance Sheet • During the first quarter, 2.4 million Class A shares were repurchased for $69.4 million in open market transactions as part of the Company’s publicly announced share repurchase program7 • On February 7, 2019, Apollo issued $550 million in aggregate principal amount of i
Slide 26: Well Capitalized with Strong Credit Metrics
Well Capitalized with Strong Credit Metrics Apollo believes it is well capitalized with moderate debt supported by strong income statement and balance sheet metrics ($ in millions) 2016 2017 2018 LTM Q1'19 Fee Related Earnings (1) $530 $624 $771 $848 Distributable Earnings (pre-tax) (1) 638 997 953
Slide 27: Total Segments
Total Segments ($ in thousands, except per share data) 1Q'18 4Q'18 1Q'19 1Q’18 LTM 1Q’19 LTM Management fees $272,203 $344,716 $358,623 $1,102,465 $1,369,108 Advisory and transaction fees, net 12,994 70,021 19,060 115,551 117,633 Performance fees1 5,275 10,285 661 22,215 23,776 Total Fee Related Rev
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Metrics
Reconciliation of GAAP to Non-GAAP Financial Metrics ($ in thousands) 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 1Q’18 LTM 1Q’19 LTM GAAP Net Income (Loss) Attributable to Apollo Global Management, LLC Class A Shareholders ($62,645) $54,658 $162,357 ($196,408) $139,893 $407,725 $160,500 Preferred distributions 4
Slide 29: Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Financial Per Shares Measures
Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Financial Per Shares Measures ($ in thousands, except share data) 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 Net Income (Loss) Attributable to Apollo Global Management, LLC Class A Shareholders ($62,645) $54,658 $162,357 ($196,408) $139,893 Distribu
Slide 30: Investment Records as of March 31, 2019
Investment Records as of March 31, 2019 Committed Total Invested Realized Remaining Unrealized Total ($ in millions) Vintage Year Total AUM Capital Capital Value Cost Value Value Gross IRR Net IRR Private Equity: Fund IX 2018 $24,704 $24,729 $1,636 $— $1,636 $1,696 $1,696 NM1 NM1 Fund VIII 2013 19,7
Slide 31: Investment Records as of March 31, 2019
Investment Records as of March 31, 2019 Permanent Capital Vehicles Total Returns7 ($ in millions) IPO Year8 Total AUM 1Q'19 1Q'18 FY’18 Credit: MidCap9 N/A $8,740 3% 4% 19% AIF 2013 373 9 2 (5) AFT 2011 404 5 6 (4) AINV/Other10 2004 5,290 26 (5) (18) Real Assets: ARI 2009 5,342 12% —% —% Total $20,1
Slide 32: Endnotes & Definitions
Endnotes & Definitions “Assets Under Management”, or “AUM”, refers to the assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and account
Slide 33: Endnotes & Definitions
Endnotes & Definitions Fee Related Earnings, or “FRE”, is derived from our segment reported results and refers to a component of DE that is used as a supplemental performance measure to assess whether revenues that we believe are generally more stable and predictable in nature, primarily consisting
Slide 34: Endnotes & Definitions
Endnotes & Definitions Net IRR of a real assets 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 net asset value as of March 31
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