Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (November 2014)
35 slides from Apollo Global Management, Inc. (new)'s investor presentation, November 2014
Slide 1: Investor Presentation
Investor Presentation November 2014 Information contained herein is as of September 30, 2014 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 pro
Slide 2: Forward Looking Statements and Other Important Disclosures
Forward Looking Statements and 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 “Ex
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) $9.1 billion Total Assets Under Management(2) $164 billion AUM CAGR (2004 – 3Q’14) 32% LTM Dividend Yiel
Slide 4: Agenda
Agenda 1. Overview of Apollo 2. Business Segments 3. Financial Overview 3
Slide 5: Apollo's Global Platform
Apollo’s Global Platform Firm Profile (5) Principal Investment Businesses(5) Founded: 1990 Private Equity Credit (7) Real Estate AUM: $164bn(6) $46bn AUM $108bn AUM $9bn AUM Employees: 837 U.S. Performing Credit Residential and commercial Opportunistic buyouts Inv. Prof.: 319 Distressed buyo
Slide 6: Apollo's Integrated Business Model
Apollo’s Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Development of industry insight through : Credit Equity – Over 300 current and former portfolio companies Real – Strategic relationships with industry Estate executives – Significant relati
Slide 7: Apollo's Expertise – Nine Core Industries
Apollo’s Expertise – Nine Core Industries Financial & Consumer Distribution & Manufacturing Media, Cable Packaging & Satellite & Natural Chemicals Business & Retail Transportation & Industrial & Leisure Materials Wireless Resources Services ATHLON ENERGY US Assets Note: The listed companies are a sa
Slide 8: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Apollo’s Private Equity Fund Performance: 39% Gross & 26% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 26% 22.2% 18.8% 18.8% 20.3% 17.7% 14.3% 14.0% 9.8% 9.7% 7.8% 8.6% 9.5% 5.1% 4.9% 6.2% (10) Barclays S&P 500 Index(8) NCREIF (9) All Private Equi
Slide 9: Strong Credit Performance Across Asset Classes
Strong Credit Performance Across Asset Classes Annualized Net Return U.S. Performing Credit: Opportunistic Credit: European Credit & NPLs: Credit Opportunity Funds I & II(13) Apollo Investment Corporation (AINV)(14) AIE II(15) & EPF(16,17) Weighted Average Yield on Total Net IRR Since Inception Net
Slide 10: Significant Growth and Diversification
Significant Growth and Diversification Apollo’s Total AUM Has Grown Significantly Over the Last Decade ($ in billions) Total AUM: $164bn(18) Private Equity Credit Real Estate Unallocated Strategic Accounts $9.0 Dramatically different business today vs. at IPO Athene Asset AUM CAGR: 28% Mgmt $8.8 $10
Slide 11: 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 increase Athe
Slide 12: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Overview of Apollo’s Marketing Capabilities Fundraising Activity Breakdown (Trailing 3 Years) Unallocated Full-scale solutions provider in alternatives $3.0bn Real Estate 7% Integrated global team structure incorporating: $2.2bn 5% – Sales Coverage Privat
Slide 13: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Ticker: AUM: List Year: Publicly Traded Alternative APO $163.9 billion 2011 Investment Manager (NYSE) Business Development AINV Company (NASDAQ OMX) $4.1 billion 2004 (BDC) ( Closed-End Limited AAA $2.1 billion (NAV) 2006 Partnership (E
Slide 14: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 13
Slide 15: Private Equity Business Overview
Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(21) $46.2bn in total AUM – $32.1bn fee-generating, $18.7bn carry-generating 26% $22.4bn of uncalled commitments – Current flagship PE fund (Fund VIII) has $18.4bn 20.3% 14.0% of committed capital 9.8% – Fun
Slide 16: Significant Outperformance During Downturns
Significant Outperformance During Downturns 1990 - 1993 2001 - 3Q03 3Q07 – 2Q 2011 1,500 $3.4 bn invested $1.6 bn invested $15.5 bn invested 1,250 S&P 500 Index 1,000 44% 29% 37% 28% 20% 23% 16% 750 19% 16% 11% 15% 11%11% 10% 9% 7% 5% 2% 500 I, II, MIA Fund III Fund IV Fund V Fund VI (2006) Fund VII
Slide 17: 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: $15.2bn
Slide 18: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM $107.7bn in total AUM 2004 – Q3’14 CAGR: 54% – $91.6bn fee-generating, $24.4bn carry-generating Same value-oriented approach as private equity $107.7 Leverage Apollo’s core industry expertise and benefit from integrated platf
Slide 19: Apollo's Credit Platform Is At the Crossroads of Global Credit
Apollo’s Credit Platform Is At the Crossroads of Global Credit Global Credit Themes Impact of secular change in De-leveraging of Investor demand for yield & financial re-regulation global financial balance sheets opportunistic credit Apollo Credit Platform Senior Loans Stressed Credit NPLs CLOs Bank
Slide 20: Athene: Differentiated & Strategically Important Growth Driver
Athene: Differentiated & Strategically Important Growth Driver Services Assets Liabilities Assets Athene Asset Management, L.P. (“AAM”) is a subsidiary of Athene Holding Ltd. (“Athene”) is an insurance holding Apollo and is included within the Credit segment company focused on fixed annuities wi
Slide 21: Real Estate Business Overview
Real Estate Business Overview Highlights Growth in Apollo’s Real Estate AUM $9.0bn in total AUM Real Estate – $5.9bn in fee generating, $0.9bn in carry-generating Equity 33% Global debt and equity platform with a presence in North America, Europe and Asia Value-oriented approach for equity inv
Slide 22: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 21
Slide 23: Apollo's Primary Business Drivers
Apollo’s Primary Business Drivers Management fees are earned based on a percentage of fee- Management Fees generating assets Assets Under Management Transaction fees are generated on certain completed transactions Transaction and Advisory Fees Advisory fees are derived through the ongoing moni
Slide 24: Steady Growth of Management Fee Revenue
Steady Growth of Management Fee Revenue Management Business Revenues Management Fee as % of Avg. Fee Generating AUM ($mm) $1,000 $964 $959 0.99% 0.92% 0.94% 0.79% 0.61% $811 0.57% $800 $617 $579 Private Equity Credit $600 $558 $513 2012 2013 Q3'14 $400 $392 Mgmt. Revenue Breakdown by Business Segmen
Slide 25: Investment Portfolio Prime for Continued Realizations
Investment Portfolio Prime for Continued Realizations Current PE Portfolio May Provide for Multi-Year Realizations Significant Liquidity Across the Platform $ in billions Portfolio Marks Valued Using Exchange or Broker Quotes PE Distributions $20.4 Private Equity 47% $15.6 Current PE portfolio offer
Slide 26: Future Carry and Fee Potential
Future Carry and Fee Potential $34 billion of Uncalled $8 billion of AUM with Future $83 billion of Commitments(31) Management Fee Potential(31) Carry-Eligible AUM(32) Real Real Estate Estate $0.5bn $0.9bn Uninvested Carry- Credit Eligible Credit $4.8bn AUM Currently $9.2bn $29.5bn Generating Privat
Slide 27: Apollo Has Displayed Growth Across Key Operating Metrics
Apollo Has Displayed Growth Across Key Operating Metrics Management Business Revenue ($mm) Management Business ENI ($mm)(30) $1,255 $527 $964 $331 $811 $223 $617 $558 $74 $76 2010 2011 2012 2013 LTM 2010 2011 2012 2013 LTM 9/30/14 Margin:(30) 13% 12% 27% 34% 42% 9/30/14 Gross Realized Carry ($mm) Ca
Slide 28: Strong, Stable Balance Sheet
Strong, Stable Balance Sheet Apollo’s Balance Sheet Highlights ($mm) Cash $1,413 Long-Term Debt Net Cash per share $1,016 $0.99(36) A / A- Rated by S&P and Fitch Gross Accrued Carry $1,482 Profit Sharing Payable(34) $755 Net Accrued Carry per share $1.81(36) Undrawn credit revolver Investments in Pr
Slide 29: 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 28
Slide 30: AGM's Financial Summary – Combined Segments
AGM’s Financial Summary – Combined Segments For the Three Months Ended For the Year Ended September 30, December 31, $ in millions 2014 2013 2013 2012 2011 Total Assets under Management(37) Private Equity $46,173 $42,767 $49,908 $37,832 $35,384 Credit 107,675 59,359 100,886 64,406 31,867 Real Estate
Slide 31: GAAP to ENI Earnings Reconciliation
GAAP to ENI Earnings Reconciliation For the Three Months Ended For the Year Ended September 30, December 31, $ in millions 2014 2013 2013 2012 2011 GAAP to ENI Earnings Reconciliation Net income (loss) attributable to Apollo Global $2.2 $192.5 $659.4 $311.0 ($468.8) Management, LLC Impact of non-cas
Slide 32: Credit Fund Summary
Credit Fund Summary Apollo Fund Year of Inception Apollo Fund Year of Inception Apollo Credit Liquidity Fund 2007 ALM VII (R)-2 Ltd. 2013 Apollo Credit Opportunity Fund I 2008 ALM VIII 2013 Apollo Credit Opportunity Fund II 2008 ALM X 2014 Apollo Credit Opportunity Fund III 2013 ALM XI 2014 Apollo S
Slide 33: Endnotes
Endnotes Notes Past performance is not indicative nor a guarantee of future results. See the last page for “Important Notes Regarding the Use of Index Comparisons.” See prior slide for a full listing of Apollo’s Credit Funds, which may have different or worse performance than the Funds illustrated
Slide 34: Definitions & Other Notes
Definitions & Other Notes Assets Under Management (“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 have the right to call from investo
Slide 35: Definitions & Other Notes
Definitions & Other Notes Economic Net Income (“ENI”) – is a key performance measures used by management in evaluating the performance of Apollo’s private equity, credit and real estate segments. Management also believes the components of ENI such as the amount of management fees, advisory and trans
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