29 slides from Apollo Global Management, Inc. (new)'s investor presentation, August 2016
Slide 1: Investor Presentation August 2016
Investor Presentation August 2016 Information contained herein is as of June 30, 2016 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 profitable
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) $7 billion Total Assets Under Management(2) $186 billion AUM CAGR (2005 – 2Q’16) 23% LTM Dividend Yield(
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: $186bn $41bn AUM $134bn AUM $11bn AUM Opportunistic buyouts Drawdown Commercial real estate Employees: 960 Liquid / Performing Global priva
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 CAGR $186 23% Billion PE RE +$11bn RE $11bn Successor Scale Existing Credit Funds Strategies Credit +$132bn $134b
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 Note: The listed companies are a sample of Ap
Slide 8: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Traditional Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 21.7% 25% 21.7% 18.3% 12.6% 11.7% 13.0% 12.8% 11.2% 9.7% 7.3% 8.2% 7.7% 3.4% 4.5% 5.3% Barclays S&P 500 Index (1) NCREIF (2) All Private Equi
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 Ma
Slide 10: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Apollo’s Marketing Capabilities Global Base of Long-Term Investors Middle East Rest of World Integrated global team structure incorporating sales coverage, 7% 1% product specialists, and investor relations Canada 8% Build new relationships and cross-sell
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) $186.3 billion 2011 Manager Business Development AINV (NASDAQ OMX) $4.3 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) ▪ $41.2bn in total AUM –$29.5bn fee-generating, $16.8bn carry-generating ▪ $15.0bn of dry powder 25% ▪ Value oriented: Buyouts completed at lower EBITDA multiples 22% than industry averages 13% 8% ▪ Investor
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: $15.9bn
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 ▪ $133.9bn in total AUM 2005 – 2Q’16 CAGR: 49% –$108.8bn fee-generating, $32.5bn carry-generating ▪ Same value-oriented approach as private equity $134 ▪ Leverage Apollo’s core industry expertise and benefit from integrated platfor
Slide 16: Accelerated and Diversified Growth in Credit
Accelerated and Diversified Growth in Credit Apollo Credit AUM Pre-Crisis Financial Crisis Post-Crisis ($ in billions) $134 $121 $109 $102 CAGR 49% $65 $32 $19 $22 $11 $15 $2 $4 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2Q’16 Key Growth Drivers Total Return Hedge EPF US CLO CLO Life Clo
Slide 17: Apollo Has a Range of Solutions Across the Credit Spectrum
Apollo Has a Range of Solutions Across the Credit Spectrum Apollo manages more than 100 discrete funds or accounts across a broad set of investment strategies Illustrative Composition of Apollo’s Credit Business Target Return $134 billion of AUM 15%+ Drawdown Funds ($21bn) Hedge Funds Credit 10-15%
Slide 18: Athene: Differentiated & Strategically Important Growth Driver
Athene: Differentiated & Strategically Important Growth Driver Athene Holding Ltd. (“Athene”) is an insurance holding company focused on fixed annuities Founded in 2009, Athene was principally funded through an Apollo sponsored permanent capital vehicle (AP Alternative Assets, L.P.; Euronext Ams
Slide 19: MidCap: Opportunity to Scale Direct Origination Capability
MidCap: Opportunity to Scale Direct Origination Capability Apollo’s Strategic View of Credit Landscape MidCap and Apollo Relationship Illiquid Investment Grade Leading direct originator in Leading alternative credit Directly Originated Broadly Syndicated middle market with proven manager with existi
Slide 20: Real Estate Business Overview
Real Estate Business Overview Highlights Supplemental Information ▪ $11.2bn in total AUM, including $7.1bn in fee-generating $11 billion AUM ▪ Global platform with a presence in North America, Europe and Asia ▪ Value-oriented approach for equity investments targeting the acquisition and recapitaliza
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 Credit Athene Non- (ex-Athene Non Sub Advised (1) Sub Advised) AUM $41bn(2) $80bn(2) $54bn(2)(3) $11bn(2) $186bn(2) Management Business Fee-Generating
Slide 22: Strong and Growing Management Business
Strong and Growing Management Business Growth in Fee-Generating AUM and Focus on Operating Margins has Driven Strong Growth in Management Business Economic Income and Distributable Earnings Management Business Economic Income Management Business Distributable Earnings ($ in millions) ($ in millions)
Slide 23: Future Carry and Fee Potential
Future Carry and Fee Potential $10 billion of AUM with Future $84 billion of $25 billion of Dry Powder Management Fee Potential(1) Carry-Eligible AUM(2) Real Real Estate Estate $1.3bn $1.1bn Uninvested Carry- Credit Eligible Currently Private $6.3bn AUM Generating Equity $25.0bn Credit Carry $15.0bn
Slide 24: Strong, Stable Balance Sheet
Strong, Stable Balance Sheet At June 30, 2016, Apollo had $859 million in total cash, $1.4 billion of investments, and $437 million of net carried interest receivable for a total net value of $2.7 billion, or $6.61 per DE share outstanding Long-term debt of $1.4 billion (with maturities in 2021,
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 June 30, December 31, $ in millions (except per share data) 2016 2015 2015 2014 2013 Total Assets under Management(1) Private Equity $41,181 $39,264 $37,502 $41,299 $50,158 Credit 133,884 112,680 121,361 108,96
Slide 27: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 YTD'15 YTD'16 Distributable Earnings $201,611 $144,579 $130,612 $104,755 $164,315 $347,630 $269,070 Net unrealized carried interest income (loss) (53,023) (99,228) (40,489) (103,209) 185,669 (111,171) 82,460 U
Slide 28: Endnotes & Definitions
Endnotes & 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 have the rig
Slide 29: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) EI represents segment income (loss) before income tax provision excluding transaction-related charges arising from the 2007 private placement, and any acquisitions. Transaction-related charges includes equity-based compensation charges, the amortization of intangib