Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Q3 2015 Earnings Presentation
34 slides from Apollo Global Management, Inc. (new)'s earnings presentation, Oct 28, 2015
Slide 1: Apollo Global Management, LLC Reports Third Quarter 2015 Results
Apollo Global Management, LLC Reports Third Quarter 2015 Results New York, October 28, 2015-- Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the third quarter ended September 30, 2015. “Amid a volatile and challenging marke
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 Third Quarter 2015 Earnings
Apollo Global Management, LLC Third Quarter 2015 Earnings October 28, 2015
Slide 4: Apollo 3Q'15 Financial Results Highlights
Apollo 3Q'15 Financial Results Highlights ▪ GAAP Net Income of $41.1 million ($0.20/share) GAAP & ▪ Economic Net Income (“ENI”) of $104.0 million ($0.26/share) Economic Earnings ▪ Management Business (“MB”) Economic Income (“EI”) of $79.3 million ($0.20/share) ▪ Incentive Business (“IB”) Economic In
Slide 5: Management Business Economic Earnings Summary
Economic Earnings Summary $ in thousands, except per share data 3Q'14 2Q'15 3Q'15 YTD'14 YTD'15 Management Fees $227,693 $227,273 $226,758 $680,381 $678,744 (1) Advisory and Transaction Fees from Affiliates, net 71,321 15,450 9,276 248,173 34,269 Carried Interest Income from Affiliates 12,106 10,815
Slide 6: Management Business Distributable Earnings Summary
Distributable Earnings Summary $ in thousands, except per share data 3Q'14 2Q'15 3Q'15 YTD'14 YTD'15 Management Business Economic Income $138,383 $92,447 $79,280 $427,411 $263,286 Less: Non-Cash Revenues(1) (57,979) (843) (842) (168,865) (4,469) Management Business Add Back: Equity-Based Compensatio
Slide 7: Private Equity
Private Equity Highlights Business Drivers ▪ Economic Loss driven by negative unrealized mark-to-market performance within the Incentive Business amid a challenging market backdrop 3Q'15 YTD LTM ▪ Traditional private equity(1) fund depreciation during the quarter of 3.7% was driven by the depreciati
Slide 8: Credit
Credit Highlights Business Drivers ▪ Economic Income driven by Management Business earnings and 3Q'15 YTD LTM higher Other Income, which primarily resulted from an increase in the fair value of Athene ▪ Total credit gross and net returns(2) of (0.8)% and (0.9)%, Inflows $1.7bn $7.4bn $9.5bn respecti
Slide 9: Real Estate
Real Estate Highlights Business Drivers ▪ Modest Economic Loss driven by Management Business, partially offset by higher Incentive Business Economic Income 3Q'15 YTD LTM ▪ Inflows driven by a private capital raise for commercial mortgage REIT (ARI), managed account activity and a follow- Inflows $48
Slide 10: Total AUM & Fee-Generating AUM
Total AUM & Fee-Generating AUM 3Q'15 Total AUM Rollforward(1) 3Q'15 Fee-Generating AUM Rollforward(1) ($ in millions) ($ in millions) Private Equity Credit Real Estate Total Private Equity Credit Real Estate Total 2Q'15 $39,264 $112,680 $10,554 $162,498 2Q'15 $28,468 $92,667 $7,154 $128,289 Inflows
Slide 11: Carry-Eligible & Carry-Generating AUM
Carry-Eligible & Carry-Generating AUM Carry-Eligible AUM $81 billion Carry-Eligible AUM ($ in millions) Segment 3Q'14 2Q'15 3Q'15 Private Equity $40,527 $34,211 $33,248 Uninvested Currently Carry- Credit 38,676 44,262 45,819 Eligible Generating Carry AUM Real Estate 2,525 2,511 2,401 $28.6bn $28.1bn
Slide 12: Capital Deployment & Dry Powder
Capital Deployment & Dry Powder ▪ Capital deployed across the platform totaled $3.9 billion for the quarter and $9.0 billion year-to-date. The pending investment commitments in private equity that have not yet been funded totaled $3.2 billion as of September 30, 2015 ▪ Dry Powder of $28.7 billion at
Slide 13: Shareholder Distribution
Shareholder Distribution ▪ Generated $0.36 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 $0.35 per Class A share to holders of record as of November 20, 2015, which is pa
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights ▪ At September 30, 2015, Apollo had $836 million in total cash, $1,168 million of investments, and $322 million of net carried interest receivable for a total net value of $2.3 billion, or $5.71 per DE share outstanding ▪ Long-term debt of $1.0 billion, includes $500 million
Slide 15: Carried Interest Receivable & Income (Loss) Detail
Carried Interest Receivable & Income (Loss) Detail As of For the Three Months Ended For the Nine Months Ended September 30, 2015 September 30, 2015 September 30, 2015 Unrealized Realized Unrealized Realized Carried Interest Total Carried Total Carried Carried Carried Carried Carried Receivable on an
Slide 16: Permanent Capital Vehicles
Permanent Capital Vehicles ▪ As of September 30, 2015, Apollo had $75.4 billion of AUM across seven Permanent Capital Vehicles(1) ▪ Apollo generated $111.5 million of Management Business revenues from Permanent Capital Vehicles during the third quarter of 2015, or $445.8 million on an annualized bas
Slide 17: Athene Asset Management
Athene Asset Management ▪ As of September 30, 2015, AAM had $60.2 billion of total AUM in accounts owned by or related to Athene Holding ▪ Of the total AUM, $14.6 billion or 24% of assets was either sub-advised by Apollo or invested in funds and investment vehicles managed by Apollo, compared to $11
Slide 18: GAAP Statement of Operations
GAAP Statement of Operations ($ in thousands, except per share data) 3Q'14 2Q'15 3Q'15 YTD'14 YTD’15(1) Revenues: Advisory and transaction fees from affiliates, net $71,071 $15,450 $9,276 $247,922 $34,269 Management fees from affiliates 207,297 230,584 238,563 643,508 694,036 Carried interest income
Slide 19: Appendix
Appendix
Slide 20: Summary of Combined Segments
Summary of Combined Segments ($ in thousands, except per share data and where noted) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 YTD'14 YTD'15 Management fees from affiliates $227,693 $220,643 $224,713 $227,273 $226,758 $680,381 $678,744 Advisory and transaction fees from affiliates, net 71,321 67,909 9,543 15,45
Slide 21: Private Equity
Private Equity ($ in thousands, except per share data and where noted) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 YTD'14 YTD'15 Management fees from affiliates $76,848 $76,755 $74,597 $74,269 $71,876 $238,314 $220,742 Advisory and transaction fees from affiliates, net 11,925 3,502 3,841 8,913 4,736 54,739 17,490
Slide 22: Credit
Credit ($ in thousands, except per share data and where noted) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 YTD'14 YTD'15 Management fees from affiliates $139,645 $132,863 $139,452 $140,632 $141,706 $405,879 $421,790 Advisory and transaction fees from affiliates, net 58,593 63,504 5,352 4,420 4,141 191,682 13,913
Slide 23: Real Estate
Real Estate ($ in thousands, except where noted) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 YTD'14 YTD'15 Management fees from affiliates $11,200 $11,025 $10,664 $12,372 $13,176 $36,188 $36,212 Advisory and transaction fees from affiliates, net 803 903 350 2,117 399 1,752 2,866 Total Management Business Revenues
Slide 24: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 YTD'14 YTD'15 Distributable Earnings $372,223 $370,916 $146,019 $201,611 $144,579 $1,058,864 $492,209 Net unrealized carried interest income (338,749) (265,637) (58,148) (53,023) (99,228) (564,841) (210,399) U
Slide 25: Investment Records as of September 30, 2015
Investment Records as of September 30, 2015 Drawdown As of September 30, 2015 Committed Total Invested Realized Remaining Unrealized Total Vintage Year Total AUM Gross IRR(1) Net IRR(1) Capital Capital(1) Value(1) Cost(1) Value(1) Value(1) ($ in millions) Private Equity Fund VIII 2013 $18,392 $18,37
Slide 26: Investment Records – Notes
Investment Records – Notes (1) Refer to the definitions of Total Invested Capital, Realized Value, Remaining Cost, Unrealized Value, Total Value, Gross IRR and Net IRR in the non-GAAP financial information & definitions section of this presentation. (2) Returns have not been presented as the fund co
Slide 27: Investment Records as of September 30, 2015
Investment Records as of September 30, 2015 Liquid / Performing Net Returns For the Three For the Nine For the Three For the Nine For the Year Ended Vintage Year Total AUM Months Ended Months Ended Months Ended Months Ended 12/31/14 ($ in millions) 9/30/15 9/30/15 9/30/14 9/30/14 Credit: Hedge Funds
Slide 28: Investment Records – Notes
Investment Records – Notes (1) Hedge funds includes Apollo Credit Strategies Master Fund Ltd., Apollo Credit Master Fund Ltd., Apollo Credit Short Opportunities Fund and Apollo Value Strategic Fund, L.P. (2) CLO returns are calculated based on gross return on invested assets, which excludes cash. (3
Slide 29: Share Rollforward
Share Rollforward 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 YTD'14 YTD'15 Total GAAP Weighted Average Outstanding Class A 158,466,602 162,107,977 165,968,620 170,538,381 176,271,703 153,071,007 170,965,818 Shares - Basic and Restricted Shares Non-GAAP Adjustments: AOG Units 222,736,477 222,698,738 222,545,477 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 ▪ “Drawdown” refers to commitment-based funds and certain SIAs in which investors make a commitment to provide capital at the formation of such funds and deliver capital when called as investment opportunities become available. It includes Athene a
Slide 33: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d ▪ Net IRR of a real estate fund represents the cumulative cash flows in the fund (and not any one investor in the fund), on the basis of the actual timing of cash inflows received from and outflows paid to investors of the fund (assuming the ending
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
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