34 slides from Apollo Global Management, Inc. (new)'s earnings presentation, Jul 29, 2015
Slide 1: Apollo Global Management, LLC Reports Second Quarter 2015 Results
Apollo Global Management, LLC Reports Second Quarter 2015 Results New York, July 29, 2015-- Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the second quarter ended June 30, 2015. “Our results for the second quarter of 2015
Slide 2: About Apollo
About Apollo Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management of approximately $162 billion
Slide 3: Apollo Global Management, LLC Second Quarter 2015 Earnings
Apollo Global Management, LLC Second Quarter 2015 Earnings July 29, 2015
Slide 4: Apollo 2Q'15 Financial Results Highlights
Apollo 2Q'15 Financial Results Highlights ▪ GAAP Net Income of $56.4 million ($0.30/share) GAAP & ▪ Economic Net Income (“ENI”) of $154.7 million ($0.38/share) Economic ▪ Management Business (“MB”) Economic Income (“EI”) of $92.4 million ($0.23/share) Earnings ▪ Incentive Business (“IB”) Economic In
Slide 5: Management Business Economic Earnings Summary
Economic Earnings Summary $ in thousands, except per share data 2Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Management Fees $228,858 $224,713 $227,273 $452,688 $451,986 (1) Advisory and Transaction Fees from Affiliates, net 60,787 9,543 15,450 176,852 24,993 Carried Interest Income from Affiliates 10,009 10,774
Slide 6: Distributable Earnings Summary
Distributable Earnings Summary $ in thousands, except per share data 2Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Management Business Economic Income $134,978 $91,559 $92,447 $289,028 $184,006 Less: Non-Cash Revenues(1) Management (51,793) (2,784) (843) (110,886) (3,627) Business Add Back: Equity-Based Compensat
Slide 7: Private Equity
Private Equity Highlights Business Drivers ▪ Economic Income up 7% quarter-over-quarter, driven by rising contribution from both the Management and Incentive Businesses 2Q'15 YTD LTM ▪ Traditional Private Equity fund appreciation(1) during the quarter of 2.7% was driven by the appreciation of privat
Slide 8: Credit
Credit Highlights Business Drivers ▪ Economic Income more than doubled quarter-over-quarter, driven by 2Q'15 YTD LTM positive contributions from the Incentive Business ▪ Total Credit gross and net returns(2) of 1.2% and 0.8%, respectively, driven by positive returns across all fund categories Inflow
Slide 9: Real Estate
Real Estate Highlights Business Drivers ▪ Modest Economic Loss driven by Management Business despite quarter- over-quarter improvement within the Incentive Business 2Q'15 YTD LTM ▪ In May 2015, Apollo acquired an Asia focused real estate investment manager with approximately $0.6 billion of AUM to f
Slide 10: Total AUM & Fee-Generating AUM
Total AUM & Fee-Generating AUM 2Q'15 Total AUM Rollforward(1) 2Q'15 Fee-Generating AUM Rollforward(1) ($ in millions) ($ in millions) Private Equity Credit Real Estate Total Private Equity Credit Real Estate Total 1Q'15 $40,533 $112,919 $9,496 $162,948 1Q'15 $30,199 $94,858 $6,195 $131,252 Inflows 3
Slide 11: Carry-Eligible & Carry-Generating AUM
Carry-Eligible & Carry-Generating AUM Carry-Eligible AUM $81 billion Carry-Eligible AUM ($ in millions) Segment 2Q'14 1Q'15 2Q'15 Private Equity $44,791 $35,302 $34,211 Currently Uninvested Credit 38,947 42,207 44,262 Generating Carry- Carry Real Estate 2,674 2,030 2,511 Eligible $36.4bn AUM Total $
Slide 12: Capital Deployment & Dry Powder
Capital Deployment & Dry Powder ▪ Capital deployed across the platform totaled $2.9 billion for the quarter and $5.1 billion year-to-date. The pending investment commitments in private equity that have not yet been funded totaled $3.5 billion as of June 30, 2015. ▪ Dry Powder of $27.9 billion at the
Slide 13: Shareholder Distribution
Shareholder Distribution ▪ Generated $0.48 of DE per share of common and equivalent during the quarter, driven by Management Business earnings and realized carried interest. ▪ Apollo declared a quarterly distribution of $0.42 per Class A share to holders of record as of August 18, 2015, which is pay
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights ▪ At June 30, 2015, Apollo had $838 million in total cash, $1,042 million of investments, and $425 million of net carried interest receivable for a total net value of $2.3 billion, or $5.64 per DE share outstanding. ▪ Long-term debt of $1.0 billion, includes $500 million in
Slide 15: Carried Interest Receivable & Income (Loss) Detail
Carried Interest Receivable & Income (Loss) Detail As of June 30, 2015 For the Three Months Ended June 30, 2015 For the Six Months Ended June 30, 2015 Unrealized Realized Unrealized Realized Total Carried Total Carried Carried Interest Carried Carried Carried Carried Interest Interest Receivable on
Slide 16: Permanent Capital Vehicles
Permanent Capital Vehicles ▪ As of June 30, 2015, Apollo had $75.5 billion of AUM across seven Permanent Capital Vehicles(1). ▪ Apollo generated $110.2 million of Management Business revenues from Permanent Capital Vehicles during the second quarter of 2015, or $440.9 million on an annualized basis.
Slide 17: Athene Asset Management
Athene Asset Management ▪ As of June 30, 2015, AAM had $60.6 billion of total AUM in accounts owned by or related to Athene Holding. ▪ Of the total AUM, $14.4 billion or 24% of assets was either sub-advised by Apollo or invested in funds and investment vehicles managed by Apollo. At June 30, 2014, t
Slide 18: GAAP Statement of Operations
GAAP Statement of Operations ($ in thousands, except per share data) 2Q'14 1Q'15(1) 2Q'15 YTD'14 YTD'15 Revenues: Advisory and transaction fees from affiliates, net $60,786 $9,543 $15,450 $176,851 $24,993 Management fees from affiliates 226,420 224,889 230,584 436,211 455,473 Carried interest income
Slide 19: Appendix
Appendix
Slide 20: Summary of Combined Segments
Summary of Combined Segments ($ in thousands, except per share data and where noted) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Management fees from affiliates $228,858 $227,693 $220,643 $224,713 $227,273 $452,688 $451,986 Advisory and transaction fees from affiliates, net 60,787 71,321 67,909 9,54
Slide 21: Private Equity
Private Equity ($ in thousands, except per share data and where noted) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Management fees from affiliates $82,045 $76,848 $76,755 $74,597 $74,269 $161,466 $148,866 Advisory and transaction fees from affiliates, net 5,178 11,925 3,502 3,841 8,913 42,814 12,754
Slide 22: Credit
Credit ($ in thousands, except per share data and where noted) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Management fees from affiliates $134,605 $139,645 $132,863 $139,452 $140,632 $266,234 $280,084 Advisory and transaction fees from affiliates, net 55,609 58,593 63,504 5,352 4,420 133,089 9,772
Slide 23: Real Estate
Real Estate ($ in thousands, except per share data and where noted) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Management fees from affiliates $12,208 $11,200 $11,025 $10,664 $12,372 $24,988 $23,036 Advisory and transaction fees from affiliates, net — 803 903 350 2,117 949 2,467 Total Management Bu
Slide 24: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Distributable Earnings $248,598 $372,223 $370,916 $146,019 $201,611 $686,641 $347,630 Net unrealized carried interest income (28,911) (338,749) (265,637) (58,148) (53,023) (226,092) (111,171) Unr
Slide 25: Investment Records as of June 30, 2015
Investment Records as of June 30, 2015 Drawdown As of June 30, 2015 Committed Total Invested Realized Unrealized Total Vintage Year Total AUM Gross IRR(1) Net IRR(1) Capital Capital(1) Value(1) Value(1) Value(1) ($ in millions) Private Equity Fund VIII 2013 $18,388 $18,377 $2,720 $18 $3,008 $3,026 N
Slide 26: Investment Records – Notes
Investment Records – Notes (1) Refer to the definitions of Total Invested Capital, Realized Value, Unrealized Value, Total Value, Gross IRR and Net IRR in the non-GAAP financial information & definitions section of this presentation. (2) Returns have not been presented as the fund commenced investin
Slide 27: Investment Records as of June 30, 2015
Investment Records as of June 30, 2015 Liquid / Performing Net Returns For the Three For the Six For the Three For the Six For the Year Ended Vintage Year Total AUM Months Ended Months Ended Months Ended Months Ended 12/31/14 ($ in millions) 6/30/15 6/30/15 6/30/14 6/30/14 Credit: Hedge Funds(1) Var
Slide 28: Investment Records – Notes
Investment Records – Notes (1) Hedge funds includes Apollo Credit Strategies Master Fund Ltd., Apollo Credit Master Fund Ltd. and Apollo Value Strategic Fund, L.P. (2) CLO returns are calculated based on gross return on invested assets, which excludes cash. (3) Total returns are based on the change
Slide 29: Share Rollforward
Share Rollforward 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Total GAAP Weighted Average Outstanding Class A Shares - 152,852,427 158,466,602 162,107,977 165,968,620 170,538,381 150,328,495 168,268,904 Basic and Restricted Shares Non-GAAP Adjustments: AOG Units 225,725,411 222,736,477 222,698,738 2
Slide 30: Non-GAAP Financial Information & Definitions
Non-GAAP Financial Information & Definitions Apollo discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (“Non-GAAP”): ▪ “Economic Income” (pre
Slide 31: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d ▪ “Assets Under Management”, or “AUM”, refers to the assets we manage for the funds, partnerships and accounts to which we provide investment management services, including, without limitation, capital that such funds, partnerships and accounts hav
Slide 32: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d ▪ “Liquid/Performing” includes CLOs and other performing credit vehicles, hedge fund style credit funds, structured credit funds and SIAs. It also includes sub-advised managed accounts owned by or related to Athene. Certain commitment-based SIAs ar
Slide 33: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d ▪ Gross IRR of a private equity fund represents the cumulative investment-related cash flows in the fund itself (and not any one investor in the fund) on the basis of the actual timing of investment inflows and outflows (for unrealized investments
Slide 34: Forward Looking Statements
Forward Looking Statements In this presentation, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, LLC, together with its consolidated subsidiaries. This presentation may contain forward-looking statements that are within the meaning of Secti