Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (June 2014)
34 slides from Apollo Global Management, Inc. (new)'s investor presentation, Jun 4, 2014
Slide 1: Apollo Global Management, LLC Investor Presentation, June 2014
Exhibit 99.1 Exhibit Apollo June Information investments 2014 Global 99.1 contained made Management, in the herein future LLC iswill as –ofbe Investor March profitable 31, Presentation 2014 or will unless equalotherwise the performance noted. Not of the for investments distribution in in whole this
Slide 2: Forward-Looking Statements and Important Disclosures
Forward but presentation, in believe on and statements, Information with equity disposition (including IRR” fund thereby the may of This fund, Unless not Apollo obtained 1The these interest March other extent are have should information not respect presentation expenses whether offund otherwise not
Slide 3: Apollo Global Management, LLC at a glance
Apollo Ticker Market Total AUM LTM 2014E PleaseAssets Dividend CAGR refer (NYSE) P/ENI Global Capitalization(1) to Under Multiple(4) (2004 endnotes Management, Yield(3) APOManagement(2) – 1Q’14) and 17% $9.9 9.2x the LLC 33% billion definition is$159.3 a leading ofbillion assets globalunder alternat
Slide 4: Agenda: Overview, Business Segments, Financial Overview
1. Financial Agenda 2. 33. OverviewSegments Business Overview of Apollo
Slide 5: Apollo's Firm Profile and Global Footprint
Apollo’s Firm Founded: AUM: Employees: Inv. Principal Private $48bn Distressed investments Corporate Structured Investment Athene Integrated Contrarian Value-oriented Opportunistic Focus Global New Luxembourg Hong Toronto Los Houston Please Mumbai Angeles Prof.: York Profile Kong on AUM refer $159bn
Slide 6: Apollo's Industry Relationships and Integrated Business Model
Apollo’s Industry Private Development –Equity Investment Packaging Note: PROMACH investment similar OverThe Strategic Significant 300 investment Credit Insights Integrated listed Chemicals relationships of Opportunities current relationships of anycompanies industry Management 5opportunities and Bus
Slide 7: Apollo's Expertise in Nine Core Industries
Apollo’s Financial Consumer Chemicals & ATHLON Note: investment similar Retail The investment Transportation Expertise &ENERGY listed Distribution Business of anycompanies 6opportunities –Apollo Commodities Nine &&Manufacturing Core Industrial fund are aIndustries will generally, sample & beLeisure
Slide 8: Long Track Record of Private Equity Success
5Please Long Apollo’s 17.9% 20.1% 26% 39% 14.0% 15.8% (10) Track Barclays aYear Private of Record to10 19.3%18.9% 13.6% Government/Credit (12) IRR S&P measure IndexIRR 500 (12) S&P Definitions is refer Index isEquity 7.4% 500 commonlyYear investmentofused endnotes 20 Success 9.2% free Fund Year aInd
Slide 9: Strong U.S. Performing Credit and Opportunistic Credit Performance
Strong U.S. Debt 27.3% 6.3% 11.3% 10.9% Credit Opportunity European Apollo Fund Europe Index (together employ performance. British includes PleasePerforming Portfolio I5.6% Definitions Opportunity Credit refer 15.9% Fund Credit Pounds. Investment II leverage opportunistic with Leveraged to Opportuni
Slide 10: Significant AUM Growth and Diversification
Significant Apollo’s ($ Total Private Dramatically $8.9 AUM $8.8 U.S. $64.4 PE 2002: $38.8 $48.1 $20.2 2002 Apollo Please inOnly $101.2 Performing billions) AUM: 2004 $6.5 $39.6 $8.2 CAGR: refer AUM Equity $15.1 Total Credit $9.8 2006 Growth to $37.8 $159bn(18) different CAGR 32% AUM endnotes Credit
Slide 11: Favorable Growth Strategies and Secular Trends
Apollo Favorable Investors Consolidation Increasing Emergence Growth Scaling Athene Energy “Flagship” Real India Asia Geographic London Expansion Expand Distribution Channels Stone Strategic Acquisitions Gulf 10 Alliances estate Stream build-out PE Tower Has will credit Existing Retail Strategies ex
Slide 12: Proven Fundraising Capabilities and Investor Base
7Please Proven Overview –Full-scale Dedicated Fundraising Unallocated Private $19.0bn $12.2bn Total Customized More Large Other Global Global(20) Middle 6% Asia Perm Capital 7% WeSales Product Investor 2% 4%/=Fewer than Strategic State Sovereign U.S. United Base Ability Equity $36.4bn Coverage 7Rest
Slide 13: Various Paths to Access Apollo's Expertise
Various Publicly Business Real-Estate Closed-End (NASDAQ AINV APO Ticker: AFT AMTG (Euronext) AAA $159 AUM: (NYSE) ARI $4.1 $2.1 $3.8 $1.2 $877 List 2009 2011 12 Year: billion & 2011 billion million AIF 2013 Paths Traded Development 2006 OMX) Investment (NAV) Limited Funds For Alternative Public (CE
Slide 14: Agenda: Background, Business Segments and Model
1. Financial Agenda 2. 3. 13 Background Business Segments Overview & Business Model
Slide 15: Private Equity: $48.1bn AUM Highlights
Private $48.1bn Highlights –$23.7bn Historical 13.6% 20.1% 26% S&P 20 Recent Pace $3.3bn $3.9 ($bn) $0.6 $2.6 Please $34.2bn Current Fund $1 Year billion+ $3.4 500 of 2010 refer 9.2% average Portfolio VII Equity Capital inIndex of$3.2 flagship Returns fee-generating, total uncalled 2011 total tointh
Slide 16: Significant Outperformance During Downturns
Significant 3Q07 44% 1,000 1,250 28% 37% 750 500 (‘90/‘92) 90 250 Apollo Please 92 19% I, 30% 23% –94 II, refer Net 2QMIA 96 16% (1995) 20% Outperformance 2011 IRR(22) to 98Fund 16% endnotes 00(1998) 1,500 02 15% III Vintage 04$15.5bn Fund (2001) at06 12%11% the 08 During Year IV end 10 (2008) inves
Slide 17: Apollo's Value-Oriented Private Equity Approach
Apollo’s 7.7x 9.6x Fund Vintage: Creation 9.0x Apollo Classic Composition(27) Corporate Please 6.6x 7.7x 6.1x Vrefer VI VII Industry Distressed(28) 2001 2006 2008 Value-Oriented Multiple Buyout to Total endnotes Entry Equity Commitments: Entry 27% 21% 57% at Approach Carve-outs theMultiple(24) Multi
Slide 18: Credit: $101.2bn AUM Highlights
$101.2bn –Highlights spectrum Significant 2004 $1.6 $101.2 Diversified European 3% 5% Opportunistic (non-sub-advised) 8% Athene Credit $2.1bn $2.9 ($bn) $0.8 Note: due. $88.4bn U.S. $23.6bn 17 $2.8 –2010 Q1’14 ‘Drawdown Business ‘Drawdown Q1’14 average Structured from in $1.8 Credit fee-generating,
Slide 19: Apollo's Global Credit Platform and Impact
Apollo’s Global Impact Apollo Senior High Aircraft Mezzanine Credit platform 18 Yield platform Loans Credit of&in Credit secular Energy Distressed Rescue theStressed Themes Platform U.S. that Platform change Insurance-Linked Finance is & Credit fully Europe Is in At Servicing Broad De-leveraging Shi
Slide 20: Athene: Liabilities and Assets
Athene: Liabilities Assets Services -Athene 19 Approximately Apollo Team Provides 100% Earns Originally Led Completed Seeks byof Asset the Holding of to Differentiated business seasoned full-time grow Athene’s asset spread funded transformative Management, annuity allocation Ltd. 17% model between m
Slide 21: Real Estate: $8.9bn AUM Highlights
$8.9bn –Highlights recapitalization Commercial (NYSE:ARI), Select Hospitality Single Condominium Growth Real Total Pace $1.5bn $1.6 $2.5 $0.5 2010 ($bn) Please 20$5.9bn $1.3 $0.5 Estate of AUM: 2011 Investment refer family in average Capital inintotal Apollo’s 2012 Mezzanine Business Equity Debt fee
Slide 22: Agenda: Background, Business Segments and Model
1. Financial Agenda 2. 3. 21 Background Business Segments Overview & Business Model
Slide 23: Apollo's Assets Under Management and Fee Drivers
Apollo’s Assets Management Transaction Investment Private Credit General Carried Note: 22 Simplified Incentive Under Equity, interest Partner Primary Performance and fees Fees fees Management Credit, from Investments Advisory Income are structure Business aregenerated carry-eligible earned & Real Fe
Slide 24: Steady Management Fee Revenue Growth
Steady $1,000 ($mm) $811 $579 $392 $200 2005 $0 Management 0.92% 0.99% 0.60% Mgmt. Real Private Credit 23 Estate $800 $617 $400 $160 2006 56% 0.93% 0.57% Revenue Growth $964 Equity $600 $348 2007 6% Business Fee 0.79% Credit 38% ofBreakdown $558 $314 2008 as Management %2012 $513 2009 Revenues of Av
Slide 25: Investment Portfolio and Realizations Driving Distributions
$Investment PE $3.5 $6.5 $15.6 $21.8 2011 Current Portfolio 58% Private Credit 24inDistributions billions $3.0 Equity 2012 80% PE2013 Portfolio portfolio Real Q1’14 Estate offers Prime May3/31/14 52%Provide runway for Total Continued FMV 70% for forof Multi-Year potential Unrealized Realizations dis
Slide 26: Future Carry and Fee Potential
Future $32 $6 $23.7bn Real Credit Private $84 Uninvested AUM(32) Eligible $28.2bn $49.6bn 25 billion billion Estate $6.4bn $1.9bn Carry Equity Invested Currently ofof $1.0bn $0.6bn Carry- AUM and Uncalled Carry-Eligible $2.1bn AUM Fee Capital Generating with Potential Commitments Capital Future Not
Slide 27: Apollo Business Growth: Revenues, ENI and Cash Distributions
Apollo Management $1,092 $964 $811 $558 $617 Margin:(30) Gross $2,456 $997 $645 $196 2010 3/31/14 LTM Please 3-Year 26 $223 $331 $74 $1.94 $1.12 $0.38 2011 Dividend Realized refer CAGR:20% CAGR:65% CAGR:132% CAGR:119% $417 $2,574 Has 3/31/14 $76 2012 Displayed to 13% Business endnotes $3.98 Yield: C
Slide 28: Strong, Long-Term Balance Sheet Highlights
Strong, Apollo’s Cash Long-Term Gross Net Investments Real $557 Direct Per Total A Rated Undrawn $500 January *Apollo’s Please / A- share Accrued Estate million $1,126 net Accrued by Investment refer Stable 2019 Balance value S&P $3.71(36) $1.91(36) credit direct Funds(35) Debt to in Carry(34) matur
Slide 29: Investor Relations Contacts
Gary Stein Head Noah Investor 28 of Gunn Corporate Relations Manager Contacts Communications ngunn@apollolp.com gstein@apollolp.com 212-822-0540 212-822-0467
Slide 30: Financial Summary: AUM and ENI by Segment
AGM’s For $March Private Credit Real TOTAL Net Management Carried Carry Other Incentive Total Distributions Please in Advisory the millions Estate Assets Management ENI Management & Incentive 101,288 refer 31, Equity Three Interest Financial AUM Incentive Business (after per December 8,899 to under
Slide 31: GAAP Net Income to Economic Net Income Reconciliation
For $March GAAP Management, Impact Income compensation Amortization 2007 Net interests Economic 30in the income millions Reorganization 31, to of Three tax inENI non-cash Net December Apollo provision (loss) 2014 of Months LLC Earnings Income intangible attributable 2013 Operating charges and 31, 32
Slide 32: Fund Performance Summary
Credit AP ALM ALME Compass Cornerstone Rampart Rashinban Sextant Stone Apollo It indicative April 31 should Investment 2014 V VI VII VIII IV XTower Fund Value Total /2013 Investment European Senior Strategic Fund(40) Financial Structured Credit 2006 2007 2012 2014 Artus CLO 2011 2012 not 2005-II 200
Slide 33: Endnotes
25. Past Notes Endnotes may It indicative Certain 1. Footnotes 2. 3. 4. 5. 6. Slide 7. 8. 9. 10. expenses 11. and 12. 14. 15. managed invest 16. into 18. on March 20. 21. metrics Private IRR 23. year, 24. investment 26.should 29. 30. 31.As Based Data National Slide AUM As Cambridge Weighted Thomson
Slide 34: Definitions and Important Notes Regarding the Use of Index Data
Assets Definitions commitments commitments; the within manage; capital of should underlying alternative presented Important Index number terms special Apollo, not implied exemplary, Credit relied Neither 33 AUM underlying responsible of on performance Rating ratings the Under commitments be investme
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