Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (February 2016)
29 slides from Apollo Global Management, Inc. (new)'s investor presentation, February 2016
Slide 1: Investor Presentation
Investor Presentation February 2016 Information contained herein is as of December 31, 2015 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
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 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) $5.5 billion Total Assets Under Management(2) $170.1 billion AUM CAGR (2005 – 2015) 23% LTM Dividend Yie
Slide 4: Apollo is One of the World's Largest Alternative Asset Managers
Apollo is One of the World’s Largest Alternative Asset Managers Firm Profile(1) Business Segments Founded: 1990 Private Equity Credit Real Estate AUM: $170.1bn $37.5bn AUM $121.3bn AUM $11.3bn AUM Drawdown Residential and commercial Employees: 945 Opportunistic buyouts Liquid / Performing
Slide 5: Apollo's Platform is Built for Continued Growth and Innovation
Apollo’s Platform is Built for Continued Growth and Innovation Our stair step growth has been driven by Credit and we believe this trend is likely to continue $250-300+ RE Billion Credit 10-YR CAGR $170 23% Billion PE RE +$11bn RE $11bn Successor Scale Existing Credit PE Funds Strategies +$119bn $38
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
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
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% 24.9% 19.7% 21.8% 17.3% 16.0% 12.8% 12.6% 13.5% 7.9% 8.9% 9.7% 8.4% 5.6% 3.5% 4.4% Barclays S&P 500 Index (1) NCREIF (2) All Private Equity
Slide 9: 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 Athene Asset
Slide 10: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Overview of Apollo’s Marketing Capabilities Overview of Apollo’s Marketing Capabilities Full-scale solutions provider in alternatives Real Estate $6bn Integrated global team structure incorporating: 16% Fewer than – Sales Coverage 7 years Private Equity 4
Slide 11: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Publicly Traded AINV $3.6 billion 2004 Alternative Ticker: (NASDAQ OMX) AUM: Year of Listing: Investment ( APO (NYSE) $170.1 billion 2011 Manager Business Development AINV (NASDAQ OMX) $5.7 billion 2004 Company (BDC) Closed-End AAA Limi
Slide 12: Private Equity Business Overview
Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(1) ▪ $37.5bn in total AUM –$29.3bn fee-generating, $9.5bn carry-generating ▪ $17.4bn of dry powder 25% 21.8% ▪ Value oriented: Buyouts completed at lower EBITDA multiples than industry averages 13.5% 8.9% ▪ Inv
Slide 13: 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: $15.6bn
Slide 14: 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 geographies
Slide 15: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM ▪ $121.4bn in total AUM 2005 - 2015 CAGR: 48% –$101.5bn fee-generating, $16.9bn carry-generating ▪ Same value-oriented approach as private equity $121 ▪ Leverage Apollo’s core industry expertise and benefit from integrated platform
Slide 16: Apollo's Credit Platform is at the Crossroads of Global Credit
Apollo’s Credit Platform is at the Crossroads of Global Credit Global Credit Themes Impact of secular De-leveraging of Investor demand change on financial global financial for yield and re-regulation balance sheets opportunistic credit Apollo Credit Platform Senior Loans Stressed Credit NPLs CLOs Ba
Slide 17: Accelerated Growth in Credit
Accelerated Growth in Credit Apollo Credit AUM ($ in billions) Pre-Crisis Great Financial Crisis Post-Crisis $121 $109 $101 CAGR 48% $64 $32 $19 $22 $11 $15 $2 $4 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Key Growth Drivers Hedge EPF US CLO Life Closed-end CION (non- Total Short Total R
Slide 18: Athene: Differentiated & Strategically Important Growth Driver
Athene: Differentiated & Strategically Important Growth Driver Services Assets Liabilities Assets Athene Asset Management Athene Holding Ltd. Athene Asset Management, L.P. (“AAM”) is a subsidiary of Athene Holding Ltd. (“Athene”) is an insurance holding company Apollo and is included within the
Slide 19: MidCap: Opportunity to Scale Direct Origination Capability
MidCap: Opportunity to Scale Direct Origination Capability Apollo’s Strategic View of Credit Landscape Investment Highlights Illiquid Investment Grade Favorable Regulatory Landscape Proprietary Origination Capabilities Directly Originated Broadly Syndicated Non-CUSIP / CUSIP / Experienced Management
Slide 20: Real Estate Business Overview
Real Estate Business Overview Highlights Key Stats ▪ $11.3bn in total AUM, including $7.3bn in fee generating $11.3 billion AUM ▪ Global platform with a presence in North America, Europe and Asia ▪ Value-oriented approach for equity investments targeting the acquisition and recapitalization of RE po
Slide 21: Management 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 $38bn(1) $76bn(1) $45bn(1)(3) $11bn(1) $170bn(1) Management Business Management FGAUM $29bn $57bn $45bn $7bn $138bn Fees Avg. F
Slide 22: Strong and Growing Management Business
Strong and Growing Management Business Growth in Fee-Generating AUM and Focus on Operating Margins has Driven Strong Growth in Management Business Economic Income and Cash Earnings Management Business Economic Income Management Business Distributable Earnings (“DE”) (Pre-tax) ($mm) ($mm) $454 CAGR $
Slide 23: Future Carry and Fee Potential
Future Carry and Fee Potential $9 billion of AUM with Future $82 billion of $26 billion of Dry Powder Management Fee Potential(1) Carry-Eligible AUM(2) Real Real Estate Estate $1.0bn $0.8bn Uninvested Currently Carry- Credit Generating Eligible $5.8bn Carry Credit AUM $26.9bn $7.9bn Private $26.3bn
Slide 24: Strong, Stable Balance Sheet
Strong, Stable Balance Sheet At December 31, 2015, Apollo had $613 million in total cash, $1,223 million of investments, and $348 million of net carried interest receivable for a total net value of $2.2 billion, or $5.33 per DE share outstanding. Long-term debt of $1.0 billion, includes $495 mil
Slide 25: 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 25
Slide 26: 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 (except per share data) 2015 2014 2015 2014 2013 Total Assets under Management(1) Private Equity $37,502 $41,299 $37,502 $41,299 $50,158 Credit 121,361 108,960 121,361 10
Slide 27: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Distributable Earnings $370,916 $146,019 $201,611 $144,579 $130,612 $1,429,780 $622,821 Net unrealized carried interest loss (265,637) (58,148) (53,023) (99,228) (40,489) (830,478) (250,888) Unreal
Slide 28: Endnotes & Definitions
Endnotes & Definitions Definitions: “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, partnerships and accounts
Slide 29: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) Permanent Capital Vehicles– refers to (a) assets that are managed by Athene Asset Management, L.P., (b) assets that are owned by or related to MidCap FinCo Limited and managed by Apollo Capital Management, L.P., (c) assets of publicly traded vehicles managed by Apo
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