Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Q4 2023 Earnings Presentation
39 slides from Apollo Global Management, Inc. (new)'s earnings presentation, Feb 8, 2024
Slide 1: Apollo Global Management Investor Presentation
Apollo Global Management Investor Presentation March 2024
Slide 2: Forward Looking Statements & Other Important Disclosures
Forward Looking Statements & Other Important Disclosures In this presentation, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This presentation may contain forward-looking
Slide 3: Apollo Today: Integrated Asset Management and Retirement Services Capabilities
Apollo Today: Integrated Asset Management and Retirement Services Capabilities GL OBA L M A NA GEMENT $60B+ 4,500+ ASSET Market Employees RETIREMENT M A N AG E M E N T Capitalization1 Globally SERVICES A / A2 / A Rated by Fitch, Moody’s, S&P A SSET MA N A GEM ENT $651B A / A2 / A ~$22B A+ / A1 / A+
Slide 4: Apollo in 2024: A Robust, Sustainable Business with Growth Momentum
Apollo in 2024: A Robust, Sustainable Business with Growth Momentum $ 651B $ 148B $ 97B $ 157B Record Outsized Deployment Debt Origination Total Inflows AUM 2023 2023 2023 $ 4.1B Record Apollo Earnings1 +18% Fund IX Appreciation 11–18% Apollo Credit Funds 2023 2023 Net Returns2 Access Our Latest Ear
Slide 5: Expanding Opportunity While Maintaining Our Culture
Expanding Opportunity While Maintaining Our Culture $480B 3,500+ 8K+ Largest Alternative Global Investment Hours volunteered by Credit Manager1 Relationships employees in 2023 >60% of Yield AUM is IG 250+ 30+ Significant Player People Dedicated Senior Leaders with in Alternative to Insurance 29 Aver
Slide 6: The Apollo Ethos: In All Markets and At All Times
The Apollo Ethos: In All Markets and At All Times… 1 2 3 Purchase Price Excess Return Unparalleled Matters Per Unit of Risk Alignment Allocating capital to the best Generating excess return per Committing side by side with risk/reward in any market unit of risk across the risk- investors as one of t
Slide 7: Over The Last 40 Years, Investors Benefited From Tailwinds
Over The Last 40 Years, Investors Benefited From Tailwinds Financial Crisis & De-Banking Money Printing Fed Assets1 Lehman +$8T Dodd-Frank Basel III 2007 2021 Search for Excess Return Globalization US State Pension Net Funded Status2 DHL Global Connectedness Index3 2007 2021 140 130 120 110 100 90 -
Slide 8: Purchase Price Matters: Flagship Strategy Performed
…And Our Purchase Price Matters Strategy Performed Net Performance vs. Benchmark as of December 31, 2023 Flagship Hybrid Defined Total Private Value Return Return IG Equity1 Fund2 Fund3 Fund4 24% vs. 14% Benchmark 18% vs. 17% Benchmark 12% vs. 5% Benchmark 6% vs. 5% Benchmark Since Inception (1990)
Slide 9: In 2024, Are We Living In The Absence Of Tailwinds?
In 2024 … Are We Living In The Absence Of Tailwinds? 9
Slide 10: What are the New Trends?
What are the New Trends? Indexation & The Difficulty of Active Management Everything Is Less Liquid 10 Companies 93% of Active Equity Liquidity only exists on the way up managers have failed to 33% of S&P 500 beat the index over 15yrs 10 9 300 45x P/E 250 8 7 200 6 5 150 4 93% 100 Primary Dealer Inv
Slide 11: Alternatives
Alternatives An alternative to publicly traded stocks and bonds The PROMISE OF ALTERNATIVES is excess return per unit of risk at every point along the risk-reward spectrum Alternative investments often are speculative, include a high degree of risk and typically have higher fees than traditional inv
Slide 12: Debanking Results in Private Credit Playing an Increasingly Important Role
Debanking Results in Private Credit Playing an Increasingly Important Role Fund Finance Supply Chain Finance Music Royalties Corporate Loans Equipment Finance ~$40 Inventory Finance Auto Loans ~$ 1.5 Middle Private Home Improvement TRILLION Credit Market Residential Mortgages ADDRESSABLE TRILLION Sp
Slide 13: Apollo Can Design Products to Align with the Objectives of Equity Investors
Apollo Can Design Products to Align with the Objectives of Equity Investors The Market Has Been Concentrated in Growth S&P 400 Index Performance (%) 350 S&P 500 Value Active Strategies 300 S&P 500 Growth Shedding Assets 250 200 Actives of Tomorrow: Cash Flow Oriented 150 No “Alpha” in Equity Product
Slide 14: Institutional Allocation: Today and Future
Institutional Allocation: Today and Future Fixed Income • IG Private Corporate Debt • IG Private Asset-Based Financing “Alternatives” FixedEquity • Private Credit Income Fixed Income Beta Fixed Equity • AAA (Potential S&P 500 Replacement) • Hybrid Equity “Alternatives” Income Equity • Infrastructure
Slide 15: Full Alignment: We Share the Same Outcome With Investors
Full Alignment: We Share the Same Outcome With Investors SAME CREDIT Meaningful ORIGINATION commitments 50%+ of AUM1 alongside SIDECAR fund investors FORMAT in addition to CO-INVESTMENTS GP co-invests 3rd-Party Investors CAPITAL SOLUTIONS Employee Co-Investment 1. AUM as of December 31, 2023. 15
Slide 16: Our Success Also Relies on How We Build, Invest and Partner Strategically
Our Success Also Relies on How We Build, Invest and Partner Strategically Funds Apollo's + Co-Investments Comprehensive + Directs Partnerships + Strategic Partnerships + Knowledge Sharing Traditional Model Vanilla fund investments Passive LP Holistic Approach relationships LP-centric integrated ecos
Slide 17: Key Growth Drivers
Key Growth Drivers 17
Slide 18: Three Strategic Growth Pillars
We Are Capitalizing on These Trends Through Three Strategic Growth Pillars Capital Origination Global Wealth Solutions $150B+ $500M $50B Annual target by 2026 Annual fee related revenue Cumulative organic capital target by 2026 raise target (2022-2026) Note: Reflects targets previously communicated
Slide 19: Origination Generates a Recurring Supply of Attractive Assets
Origination Generates a Recurring Supply of Attractive Assets Total Debt Origination Volume Differentiated, Diversified Origination Platform Ecosystem Origination platforms are best-in-class businesses, teams and technologies that originate assets with excess risk-reward on a sustainable and recurri
Slide 20: Capital Solutions Drives Value for All Stakeholders
Capital Solutions Drives Value for All Stakeholders Benefits of a Capital Markets Ecosystem Tracking Well Ahead of 5-Year Target Capital solutions fees and other, net Origination >80% Expanded TAM debt-related Expands addressable channel by ~10x, Directly originate more private Large incremental rel
Slide 21: Multi-Pronged Approach to the Global Wealth Opportunity
Multi-Pronged Approach to the Global Wealth Opportunity Well-Rounded Product Suite Expanding Distribution Global Wealth Capital Raise Targets3 Traditional Drawdown Products1 Global Wealth Headcount2 Accord Series $50B+ ~150 Apollo/Athene Dedicated Investment Program ~130 S3 Equity and Hybrid Solutio
Slide 22: Putting It All Together… Our Financial Targets
Putting It All Together… Our Financial Targets 22
Slide 23: 5-Year Base Case Growth Plan
We Have a Compelling 5-Year Base Case Growth Plan… Yield AUM Hybrid AUM Equity AUM Total AUM $750B ~$1T ~2x ~1.5x ~$125B ~2x ~$100B $480B $108B $651B ~2x $85B ~$500B $360B $62B $53B 2021 2023 2026E 2021 2023 2026E 2021 2023 2026E 2021 2023 2026E Note: For presentation purposes. Financial objectives
Slide 24: Expectations to Grow FRE and Total Earnings Significantly
...With Expectations to Grow FRE and Total Earnings Significantly Fee Related Earnings (FRE) Spread Related Earnings (SRE) + Fee and Spread Related Earnings Principal Investing Adjusted Net Income Income (PII) Less taxes & >$9.50 HoldCo interest & >$9.00 financing costs $8.05 ~2x $5.13 ~$5.00 $4.50
Slide 25: Well Positioned for Continued Strong Earnings Growth in 2024
Well Positioned for Continued Strong Earnings Growth in 2024 2022 Results 2023 Results 2024 Targets $2.36 $2.92 Fee Related Earnings per share per share 15-20% growth or $1.4B or $1.8B ASSET MANAGEMENT 57% FRE Margin 54% 56% or ~100bps improvement $4.12 $5.13 Low double-digit RETIREMENT SERVICES Spr
Slide 26: Our Purpose
Our Purpose 26
Slide 27: We Seek to Create Positive Impact in Everything We Do
We Seek to Create Positive Impact in Everything We Do Empowering Building & Driving a Retirees Financing More Stronger Sustainable Businesses Future Represents the views and opinions of Apollo Analysts. Subject to change at any time without notice. 27
Slide 28: We Drive Sustainability and Expand Opportunities in the Communities We Touch
We Drive Sustainability and Expand Opportunities in the Communities We Touch DRIVING SUSTAINABILITY 2008 Year Apollo’s 185 Companies participating 14.4M+ MT $23B Deployed by ESG Program Began in the ESG Reporting Program recycled by reporting Apollo-managed funds over companies the past five years i
Slide 29: The Apollo Opportunity Foundation Portfolio
The Apollo Opportunity Foundation Portfolio 2023 Impact: 22 Grants Totaling $5.2m CAREER EDUCATION WORKFORCE DEVELOPMENT ECONOMIC EMPOWERMENT Foundational Skills Apprenticeship Entrepreneurship Financial Literacy Expanded Pathways Leadership Development Career Preparation Reskilling & Upskilling Acc
Slide 30: Best-in-Class Corporate Governance with Strong Senior Leadership
Best-in-Class Corporate Governance with Strong Senior Leadership Best-in-Class Governance Firm Leadership Single Class of Common Stock with One Share One Vote Marc Rowan Scott Kleinman James Zelter James Belardi CEO Co-President Co-President CEO, Athene Enhanced Corporate Governance Apollo Senior Le
Slide 31: Can't Overstate the Importance of Culture
We’re Driven by Our People, Our Culture Can’t Overstate the Importance of Culture “Culture eats strategy for breakfast.” – PETER DRUCKER Click below to hear directly from our team on what defines Apollo: Outperform Expectations Champion Opportunity Lead Responsibly Challenge Convention Drive Collabo
Slide 32: Appendix
Appendix 32
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in millions) 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 FY'22 FY'23 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common $640 $1,010 $599 $660 $2,732 $(1,961) $5,001 Stockholders Preferred dividends — — — 22 24 — 46 Net income (loss
Slide 34: Non-GAAP Financial Information & Definitions
Non-GAAP Financial Information & Definitions • “Segment Income”, or “SI”, is the key performance measure used by management in evaluating the • “Spread Related Earnings”, or “SRE” is a component of Segment Income that is used to assess the performance performance of the asset management, retirement
Slide 35: Non-GAAP Financial Information & Definitions (Continued)
Non-GAAP Financial Information & Definitions (Continued) • "Adjusted Net Income, Excluding Notable Items" represents ANI with an adjustment related to our Apollo’s AUM measure includes Assets Under Management for which Apollo charges either nominal or zero Retirement Services segment to exclude nota
Slide 36: Non-GAAP Financial Information & Definitions (Continued)
Non-GAAP Financial Information & Definitions (Continued) • "Gross IRR" of accord series and the European principal finance funds represents the annualized return of • “Total Invested Capital” refers to the aggregate cash invested by the relevant Apollo fund and includes a fund based on the actual ti
Slide 37: Non-GAAP Financial Information & Definitions (Continued)
Non-GAAP Financial Information & Definitions (Continued) • "Net IRR" of infrastructure funds represents 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
Slide 38: Important Information
Important Information Estimates and Assumptions This presentation includes certain unaudited financial and business projections and goals on Apollo’s future outlook (the “Estimates”). The Estimates reflect the internal financial model that Apollo uses in connection with its strategic planning. The E
Slide 39: Important Information
Important Information Performance Information other factors (such as number of investments, recycling or reinvestment of distributions, and types of assets). It may not be possible to directly invest in one or more of these indices and the holdings of any strategy may Past performance is not necessa
Apollo Global Management, Inc. (New) — Q4 2023 Earnings Presentation on 6ix