44 slides from Apollo Global Management, Inc. (new)'s investor presentation, May 2022
Slide 1: Apollo Global Management Investor Presentation May 2022
Apollo Global Management INVESTOR PRESENTATION May 2022
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 is a High-Growth Alternative Asset Manager with 30+ Years of Investing Expertise
Apollo is a High-Growth Alternative Asset Manager with 30+ Years of Investing Expertise YIELD HYBRID EQUITY 275+ Investment Professionals 100+ Investment Professionals 200+ Investment Professionals $373B $54B $86B AUM AUM AUM SELECT OFFERINGS • High Grade Alpha • Hybrid Value • European Principal Fi
Slide 4: 2021 Was a Transformational Year for Apollo
2021 Was a Transformational Year for Apollo Record Robust Fee Related Earnings $ 498B AUM $ 3.8B 1 + Spread Related Earnings (Apollo + Athene) Outsized Gross Largest Monetization Year $ 169B Capital Deployment >$ 20 B2 for Flagship Products Highest Annual Full Alignment $ 97B Originations (Athene Me
Slide 5: Elevating and Maintaining Culture Creates the Best Home for Talent
Elevating and Maintaining Culture Creates the Best Home for Talent TOP TALENT VOTING WITH THEIR FEET +424 2,336 1,451 APOLLO 2 ATHENE New Apollo hires Enterprise 1 Satisfaction Turnover in 2021 Headcount Best Place to work for LGBTQ equality Voted one of Employee-led affinity networks: Signatory to
Slide 6: Strong Senior Leadership with Best-in-Class Corporate Governance
Strong Senior Leadership with Best-in-Class Corporate Governance FIRM LEADERSHIP BEST-IN-CLASS GOVERNANCE One Share, One Vote Structure MARC SCOTT JAMES JAMES ROWAN KLEINMAN ZELTER BELARDI CEO Co-President Co-President CEO, Athene Enhanced Corporate Governance MANAGEMENT COMMITTEE with Two Thirds In
Slide 7: Apollo is Differentiated by Design
Apollo is Differentiated by Design 1 2 3 4 Largest Addressable Purchase Investment Expertise Full Market Among Price Across Risk-Reward Alignment Alternative Peers Matters Spectrum Traditional Alternatives Investment Philosophy Provide Clients Capital Efficient Model and Fixed Income Focused on Deli
Slide 8: Alts Are No Longer "Alternative"
1 Alts Are No Longer “Alternative” 60/40 EQUITY/FIXED INCOME MODEL PORTFOLIO IS A THING OF THE PAST AND WE EXPECT INVESTOR ALLOCATIONS TO CONTINUE TO EVOLVE OLD WORLD PORTFOLIO NEW WORLD PORTFOLIO MANAGEMENT MANAGEMENT Scarcity of ‘Alpha’ in Public Markets Driving Larger Fixed Alternatives Allocatio
Slide 9: Apollo Has the Largest Addressable Market Among Alternative Peers
Apollo Has the Largest Addressable Market Among Alternative Peers 1 TRADITIONAL ALTERNATIVES “FIXED INCOME REPLACEMENT” OPPORTUNITY Large Market Growing Quickly EVEN BIGGER MARKET PRIVATE EQUITY 40% ~$40T NATURAL RESOURCES HEDGE FUNDS 2 2% 33% ~$13T 1 INFRASTRUCTURE REAL ESTATE 6% 10% PRIVATE DEBT 9
Slide 10: Disciplined Investment Philosophy Where Purchase Price Matters
2 Disciplined Investment Philosophy Where Purchase Price Matters ATTRACTIVE RISK- PLATFORM BENEFITS ADJUSTED RETURNS PE FUND IX EQUITY • COLLABORATIVE CULTURE Leading Global Asset Manager with ~5x discount Tight-Knit Culture Across All Three 11.6x to market Investing Strategies • INSTITUTIONAL EXPER
Slide 11: Generating Excess Return Per Unit of Risk Across Risk-Reward Spectrum
3 Generating Excess Return Per Unit of Risk Across Risk-Reward Spectrum WE ARE DELIVERING ON OUR PROMISE OF ALTERNATIVES YIELD HYBRID EQUITY HYBRID VALUE9 FLAGSHIP PE10 INFRA EQUITY7 RETURN Gross IRR: 29% Gross IRR: 39% Gross IRR: 26% Net IRR: 24% Net IRR: 25% ACCORD SERIES4 Net IRR: 20% Strategy AU
Slide 12: Apollo's Flagship Products Have Meaningfully Outperformed
3 Apollo’s Flagship Products Have Meaningfully Outperformed YIELD HYBRID EQUITY Gross Gross 39% Gross 29% 22% Net 4.5% Net Net 24% Net 17% 22% 25% Net 4.2% Net 11% 14% 1 1 4 5 PEERS ATHENE BENCHMARK 2 APOLLO 3 BENCHMARK APOLLO BENCHMARK 6 APOLLO 7 ATHENE ACCORD SERIES HYBRID VALUE FLAGSHIP PE $218B
Slide 13: Full Alignment Expands Growth Opportunities
4 Full Alignment Expands Growth Opportunities APPROACHING THE MARKET AS AN ALIGNED INVESTOR RESONATES WITH THI RD PARTY CLIENTS FUND PLATFORMS AND STRATEGIC CAPITAL INVESTMENTS CO-INVEST PARTNERSHIPS SOLUTIONS Attractive Offerings Diversified Exposure Bespoke Portfolio Access to Syndication Across A
Slide 14: Alignment Unleashes Strategic Growth Capital Across the Business
4 Alignment Unleashes Strategic Growth Capital Across the Business CAPITAL EFFICIENT GROWTH PARADIGM SUPPORTED BY VARIOUS SOURCES O F CAPITAL STRATEGIC EXAMPLES OF CAPITAL OBJECTIVE INVESTMENTS IN 2021 PROVIDER Origination Platforms Principal Investing Asia / Expansion Fintech Principal Investing No
Slide 15: Three Strategic Growth Drivers
Three Strategic Growth Drivers 1 ORIGINATION 2 RETAIL 3 CAPITAL SOLUTIONS $150B $50B $500M 3-5 YEAR ANNUAL TARGET CUMULATIVE ORGANIC CAPITAL OF ANNUAL FEE RELATED RAISE TARGET (2022-2026) REVENUE TARGET BY 2026 Note: No guarantee that targets will be achieved.
Slide 16: An Evolved Multi-Pronged Approach to Origination
1 An Evolved Multi-Pronged Approach to Origination $150B+ $150 Apollo Direct Origination Platforms = Apollo “Edge” ~2x ORIGINATION ~$97 $97B LARGE CAP VOLUME TRADITIONAL ORIGINATION ORIGINATION ORIGINATION & HIGH- PLATFORMS $49 STRATEGIES GRADE ALPHA $49B FY 2020 FY 2021 3-5 YEAR TARGET Target 100 b
Slide 17: Origination Focus is Purposefully Designed to Maximize Profitability
1 Origination Focus is Purposefully Designed to Maximize Profitability “FUTURE-PROOFING”: OUR PROPRIETARY ORIGINATED ASSETS HAVE MULTIP LE HOMES ORIGINATED ASSET Third-Party • Excess return for institutional 1 and global wealth clients Commingled • Established capital base DRIVES FRE GROWTH or Manag
Slide 18: Retail Universe Offers Tremendous Growth Potential
2 Retail Universe Offers Tremendous Growth Potential “FUTURE-PROOFING”: REDEFINING AND EXPANDING OUR MARKETS INSTITUTIONAL + PRIVATE MARKETS ALLOCATIONS BY INVESTOR TYPE HIGH NET WORTH (HNW) & MASS-AFFLUENT (2020-2025) $102T 28-30% 2020 PM Allocations 2025 PM Allocations (Institutional) 20-22% 16-18
Slide 19: Scaling Global Wealth is a Strategic Priority
2 Scaling Global Wealth is a Strategic Priority “FUTURE-PROOFING”: DEVELOPING RETAIL PRODUCTS WHILE INVESTING IN DISTRIBUTION AND TECHNOLOGY-BASED SOLUTIONS Making early progress via strategic Global wealth organic capital Global wealth expected investments in platform technology raise target over n
Slide 20: Global Wealth Focused on Scaling Existing Products While Developing Next Generation Solutions
Global Wealth Focused on Scaling Existing Products While Developing 2 Next Generation Solutions EXISTING GENERATION DEVELOPING NEXT GEN SOLUTIONS OF CAPABILITIES WHILE RE-IMAGINING THE CLIENT EXPERIENCE PRODUCTS DISTRIBUTION Next Gen Tax Advantaged Alt & Insurance TECHNOLOGY PARTNERSHIPS Products Co
Slide 21: Capital Solutions: Apollo is a Perfect Home for this Business
3 Capital Solutions: Apollo is a Perfect Home for this Business “FUTURE-PROOFING”: SYNDICATION SIGNIFICANTLY EXPANDS OUR REACH A ND DRIVES VALUE FOR ALL STAKEHOLDERS EXPANDED TAM ORIGINATION CAPITAL MARKETS SYNDICATION Expands addressable Directly originate more Competitive pricing, Expand our inves
Slide 22: Hertz Case Study: Showcases Apollo's Differentiated Structure and Architecture
Hertz Case Study: Showcases Apollo’s Differentiated Structure and Architecture 3 $9B COMMITTED ACROSS BROAD PLATFORM; $4B SYNDICATED TO THIRD -PARTIES Inv. Grade Solution INVESTMENT GRADE NOVEMBER MAY 2020 2021 FLEXIBLE CAPITAL: Originate Sourcing the best $4B ABS Purchase $1.5B risk-return within a
Slide 23: Putting It All Together… Our Financial Targets and Differentiation
Putting It All Together… Our Financial Targets and Differentiation
Slide 24: We Have a Compelling 5-Year Base Case Growth Plan
We Have a Compelling 5-Year Base Case Growth Plan… AUM GROWTH IS THE REWARD FOR DELIVERING ALPHA TO OUR CLIENTS, NO T THE GOAL IN ITSELF YIELD + HYBRID + EQUITY = TOTAL ASSETS UNDER MANAGEMENT ~$1T ~2x EQUITY/ HYBRID ~$750B ~$125B ~$100B ~1.5x ~2x $498B ~2x $85B $360B $53B YIELD 2021 2026E 2021 2026
Slide 25: And Expect to Double FRE and Total Earnings
…And Expect to Double FRE and Total Earnings Before Factoring $5B of Growth Capital and Upside from Embedded Options DURABLE AND GROWING EARNINGS STREAMS WITH ~90% OF PRE -TAX EARNINGS GENERATED FROM RECURRING FRE AND SRE FEE & SPREAD PRINCIPAL FEE RELATED EARNINGS (FRE) + SPREAD RELATED EARNINGS (S
Slide 26: Our Financial Objectives for 2022
Our Financial Objectives for 2022 STRONG GROWTH PROFILE WITH VAST MAJORITY DRIVEN BY RECURRING EAR NING STREAMS 1Q22 ($B) 2022E ($B) 2022E (Per Share) Fee Related Earnings $0.31 $1.4 $2.35 Spread Related Earnings $0.67 $2.0 $3.35 Fee and Spread Related Earnings $0.98 $3.4 $5.70 Principal Investing I
Slide 27: Massive Capital Generation to Support Our Growth and Return to Shareholders
…And Massive Capital Generation to Support Our Growth and Return to Shareholders STRATEGIC USES FOR TARGETED CAPITAL GENERATION AT THE HOLDING CO MPANY ILLUSTRATIVE CAPITAL USAGE… ~$5 ~$15 $1.60 Base Dividend Growth BILLION Engine BILLION ~$5 Annual Dividend Growth Share Capital Generation Repurchas
Slide 28: Additionally, We Are Excited About Numerous Embedded Growth Options
Additionally, We Are Excited About Numerous Embedded Growth Options QUIETLY MAKING PROGRESS ON ALL FRONTS DEMOCRATIZATION FINTECH ASIA OF FINANCE Serving as a validator, Focusing on retirement services Meaningful opportunity to exceed an enabler, a partner, to access the Asian market, base plan fund
Slide 29: Apollo's Integrated Sustainability Approach
Apollo’s Integrated Sustainability Approach SUSTAINABILITY ESG SUSTAINABLE CITIZENSHIP / IMPACT EXPANDING INVESTING APOLLO OPPORTUNITY OPPORTUNITY PLATFORM / ENERGY FOUNDATION TRANSITION Apollo’s integrated Sustainability approach leverages our strategic platforms, and strives to mitigate risk and u
Slide 30: Leveraging the Entire Apollo Ecosystem to Lead Responsibly
Leveraging the Entire Apollo Ecosystem to Lead Responsibly DEEP COMMITMENT TO EXPANDING OPPORTUNITY IN OUR WORKPLACE, MARKE TPLACE AND COMMUNITY WORKPLACE MARKETPLACE COMMUNITY Dedicated Diversity, Equity & Apollo actively engages with the Apollo strives to be a responsible Inclusion resources and p
Slide 31: Apollo Aims to Lead the Charge in Energy Transition and Sustainable Investing
Apollo Aims to Lead the Charge in Energy Transition and Sustainable Investing INDUSTRY EXPERTISE, STRUCTURING CAPABILITY, AND CAPITAL FLEXIBIL ITY TO HELP SERVE THIS MARKET Substantial Apollo-managed funds Our sustainable investing Integrated ecosystem across investment of have deployed approximatel
Slide 32: Appendix
Appendix
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in millions) 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $670 $649 $249 $234 $(870) Preferred dividends 9 9 9 10 — Net income (loss) attributable to Non-Controlling In
Slide 34: Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd
Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd Year ended December 31, ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common $168 $134 $403 $616 $(42) $807 $120 $1,802 Stockholders Preferred dividends — —
Slide 35: 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”): • “Adjusted Segment Inco
Slide 36: Non-GAAP Financial Information & Definitions - cont'd
Non-GAAP Financial Information & Definitions - cont'd • “Assets Under Management”, or “AUM”, refers to the assets of the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, including, without limitation, capital tha
Slide 37: Non-GAAP Financial Information & Definitions - cont'd
Non-GAAP Financial Information & Definitions - cont'd • “ACRA” refers to Athene Co-Invest Reinsurance Affiliate Holding Ltd. • “ADIP” refers to Apollo/Athene Dedicated Investment Program, a fund managed by Apollo including third-party capital that invests alongside Athene in certain investments. • “
Slide 38: Non-GAAP Financial Information & Definitions - cont'd
Non-GAAP Financial Information & Definitions - cont'd • “Gross IRR” of a real estate equity, hybrid real estate or infrastructure funds 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 cash inflows and outflo
Slide 39: Non-GAAP Financial Information & Definitions - cont'd
Non-GAAP Financial Information & Definitions - cont'd • “Net Investment Spread” measures Athene's investment performance plus our strategic capital management fees from ACRA, less our total cost of funds. Net investment earned rate is a key measure of our investment performance while cost of funds i
Slide 40: Important Information
Important Information Estimates and Assumptions This presentation includes certain unaudited financial and business projections and goals on Apollo’s future outlook following the closing of the transaction with Athene and the creation of three reportable segments (the “Estimates”). Apollo does not r
Slide 41: Important Information
Important Information Assets Under Management (“AUM”) The estimates and expectations about new fund capital that Apollo can raise in various strategies and formats (including permanent capital) and Apollo’s AUM in the future depend on many assumptions about future events and circumstances, including
Slide 42: Important Information
Important Information Performance Information Past performance is not necessarily indicative of future results and there can be no assurance that Apollo, Athene or any Apollo Fund or strategy will achieve comparable results, or that any investments made by Apollo in the future will be profitable. Ac
Slide 43: Important Information
Important Information Index Comparisons Index performance and yield data are shown for illustrative purposes only and have limitations when used for comparison or for other purposes due to, among other matters, volatility, credit or other factors (such as number of investments, recycling or reinvest
Slide 44: Important Information
Important Information Pipeline Information Fundraising and investment pipeline information herein is based on a number of assumptions that are subject to significant business, market, economic and competitive uncertainties, many of which are beyond Apollo’s control or are subject to change. As such,