Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (February 2014)
32 slides from Apollo Global Management, Inc. (new)'s investor presentation, February 2014
Slide 1: Apollo Global Management, LLC – Investor Presentation February 2014
Apollo Global Management, LLC – Investor Presentation February 2014 Not for distribution in whole or in part without the express consent of Apollo Global Management, LLC. It should not be assumed that investment made in the future will be profitable or will equal the performance of the investments i
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
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) $12.6 billion Total Assets Under Management(2) $161.2 billion AUM CAGR (2004 – 2013) 34% LTM Dividend Yi
Slide 4: Agenda
Agenda 1. Overview of Apollo 2. Business Segments 3. Financial Overview 3
Slide 5: Apollo’s Global Platform
Apollo’s Global Platform Firm Profile (5) Principal Investment Businesses(5) Founded: 1990 Private Equity Credit (7) Real Estate AUM: $161bn(6) $50bn AUM $101bn AUM $9bn AUM Employees: 710 U.S. Performing Credit Residential and commercial Opportunistic buyouts Inv. Prof.: 277 Distressed buyo
Slide 6: Apollo’s Fully Integrated Business Model
Apollo’s Fully Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Development of industry insight through : Credit Equity – Over 300 current and former portfolio companies Real – Exclusive strategic relationships with Estate industry executives – Si
Slide 7: Apollo’s Expertise – Nine Core Industries
Apollo’s Expertise – Nine Core Industries Financial & Consumer Distribution & Manufacturing Media, Cable Packaging & Satellite & Chemicals Business Commodities & Retail Transportation & Industrial & Leisure Materials Wireless Services ATHLON ENERGY Note: The listed companies are a sample of Apollo p
Slide 8: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Apollo’s Private Equity Fund Performance: 39% Gross & 26% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 26% 19.5% 20.2% 14.2% 13.5% 15.5% 10.0% 11.0% 7.6% 8.8% 8.7% 9.2% 5.7% 4.5% 5.7% 3.4% (10) Barclays S&P 500 Index(8) NCREIF (9) All Private Equi
Slide 9: Strong Credit Performance Across Asset Classes
Strong Credit Performance Across Asset Classes Annualized Net Return U.S. Performing Credit: Opportunistic Credit: European Credit & NPLs: Credit Opportunity Funds I & II(13) Apollo Investment Corporation (AINV)(14) AIE II(15,16) & EPF(16,17) Weighted Average Yield on Total Net IRR Net IRR Since Sin
Slide 10: Significant Growth and Diversification
Significant Growth and Diversification Apollo’s Total AUM Has Grown Significantly Over the Last Decade ($ in billions) Total AUM: $161bn(18) Private Equity Credit Real Estate Unallocated Strategic Accounts $9.3 Dramatically different business today vs. at IPO AUM CAGR: 36% $8.8 $100.9 U.S. Performin
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 Secular Trends Growth Strategies Selected Examples Investors continue to increase Athene alloca
Slide 12: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Overview of Apollo’s Marketing Capabilities Fundraising Activity Breakdown (2012 - 2013) Unallocated Full-scale solutions provider in alternatives $3.0bn Integrated global team structure incorporating: Real Estate 10% $1.6bn – Sales Coverage 5% – Product
Slide 13: Apollo Has Demonstrated Significant Progress Since its IPO
Apollo Has Demonstrated Significant Progress Since its IPO Since its IPO in March 2011, Apollo has continued to execute consistently against its growth plan AUM ($bn) Subscriptions / Capital Raised ($bn) Increased AUM by over 130% Raised nearly $35bn of third-party capital across the platform $1
Slide 14: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 13
Slide 15: Private Equity Business Overview
Private Equity Business Overview Highlights Pace of Capital Deployment $49.9bn in total AUM ($34.2bn fee generating AUM) $3.3bn average per year (2010-2013) $23.7bn of “dry powder” $3.9 $3.4 – Current flagship PE fund (Fund VIII) has $18.4bn $3.2Realized of committed capital $2.6 $5,530 – Fund V
Slide 16: Significant Outperformance During Downturns
Significant Outperformance During Downturns 3Q07 – 2Q 2011 1,500 $15.5bn invested 1990 - 1993 $3.4bn invested 2001 - 3Q03 $1.6bn invested 1,250 S&P 500 Index 1,000 44% 30% 37% 28% 23% 19% 750 19% 16% 16% 15% 12%10% 11% 10% 9% 5% 7% 2% 500 I, II, MIA Fund III Fund IV Fund V Fund VI (2006) Fund VII ('
Slide 17: Apollo’s Value-Oriented Approach
Apollo’s Value-Oriented Approach Fund V Fund VI Fund VII Vintage: 2001 Vintage: 2006 Vintage: 2008 Total Commitments: $3.7bn Total Commitments: $10.1bn Total Commitments: $14.7bn Creation Multiple Creation Multiple Creation Multiple 9.6x 8.9x 7.7x 7.7x 6.6x 6.1x Apollo Industry Entry Apollo Industry
Slide 18: Credit Business Overview
Credit Business Overview Highlights Diversified Mix of AUM $100.9bn in total AUM European Credit – $88.2bn in fee generating $2.8bn 3% U.S. Structured Performing Credit Same value-oriented approach as private equity NPLs Credit $12.8bn $5.7bn $22.2bn 13% Leverage Apollo’s core industry experti
Slide 19: Athene: Differentiated & Strategically Important Growth Driver
Athene: Differentiated & Strategically Important Growth Driver Services Assets Liabilities Assets Athene Asset Management (AAM) is a subsidiary of Apollo Athene Holding Ltd (“Athene”) is an insurance holding and is included within the Credit segment company focused on fixed annuities with approx
Slide 20: Real Estate Business Overview
Real Estate Business Overview(29) Highlights Growth in Apollo’s Real Estate AUM $9.3bn in total AUM $9.3 – $5.9bn in fee generating $8.8 $8.0 Global debt and equity platform with a presence in $6.5 North America, Europe and Asia Value-oriented approach for equity investments targeting the acqu
Slide 21: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 20
Slide 22: Apollo’s Primary Business Drivers
Apollo’s Primary Business Drivers Management fees are earned based on a percentage of fee- Management Fees generating assets Assets Under Transaction fees are generated on Management certain completed transactions Advisory fees are derived Transaction and Advisory Fees through the ongoing moni
Slide 23: Steady Growth of Management Fee Revenue
Steady Growth of Management Fee Revenue Management Business Revenues Management Fee as % of Avg. Fee Generating AUM ($mm) $1,000 $964 0.99% 0.92% 0.79% $811 0.57% $800 $617 $579 $558 Private Equity Credit $600 $513 2012 2013 $392 Mgmt. Revenue Breakdown by Business Segment(28) $400 $314 Real Estate
Slide 24: Apollo Has an Investment Portfolio Prime for Continued Realizations
Apollo Has an Investment Portfolio Prime for Continued Realizations Current PE Portfolio May Provide for Multi-Year Realizations Portfolio Marks Valued Using Exchange or Broker Quotes $ in billions $23.4 PE Distributions Private 56% Equity Multiple years of $15.6 potential distributions Credit 84% f
Slide 25: Apollo Has Displayed Growth Across Key Operating Metrics
Apollo Has Displayed Growth Across Key Operating Metrics Management Business Revenue ($mm) Management Business ENI ($mm)(29) $964 $331 $811 $223 $617 $558 $74 $76 2010 2011 2012 2013 2010 2011 2012 2013 Margin:(29) 13% 12% 27% 34% Gross Realized Carry ($mm) Cash Distributions to Shareholders ($ per
Slide 26: Strong, Stable Balance Sheet
Strong, Stable Balance Sheet Apollo’s Key Balance Sheet Items (as of December 31, 2013) $mm Cash $1,078 Debt $750 Gross Accrued Carry $2,367 (31) Net Accrued Carry $1,375 Per share $3.48(32) Investments in Private Equity, Credit and $422 Real Estate Funds Per share $1.07(32) Please refer to endnotes
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Slide 28: AGM’s Financial Summary – Combined Segments
AGM’s Financial Summary – Combined Segments For the Three Months Ended For the Year Ended December 31, December 31, $ in millions 2013 2012 2013 2012 2011 Total Assets under Management(33) Private Equity $49,908 $37,832 $49,908 $37,832 $35,384 Credit 100,886 64,406 100,886 64,406 31,867 Real Estate
Slide 29: 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 2013 2012 2013 2012 2011 GAAP to ENI Earnings Reconciliation Net income (loss) attributable to Apollo Global $159.2 $171.6 $659.4 $311.0 ($468.8) Management, LLC Impact of non-ca
Slide 30: Credit Fund Summary
Credit Fund Summary Apollo Fund Year of Inception Apollo Fund Year of Inception Apollo / Artus Investors 2007 – 1 2007 ALM VII 2012 Apollo Credit Liquidity Fund 2007 ALME I 2013 Apollo Credit Opportunity Fund I 2008 Compass 2005-I 2005 Apollo Credit Opportunity Fund II 2008 Compass 2005-II 2006 Apol
Slide 31: Endnotes
Endnotes Notes 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 Funds illustrated
Slide 32: Definitions
Definitions Assets Under Management (“AUM”) Definition – refers to the investments we manage or with respect to which we have control, including capital we have the right to call from our investors pursuant to their capital commitments to various funds. Our AUM equals the sum of: (i) the fair value
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