Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (November 2017)
40 slides from Apollo Global Management, Inc. (new)'s investor presentation, November 2017
Slide 1: Investor Presentation
Investor Presentation November 2017 Information contained herein is as of September 30, 2017 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 & 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: Table of Contents
Table of Contents ➢ Company Overview ➢ Business Segments ➢ Financial Information 3
Slide 4: Apollo is a Leading Alternative Investment Manager
Apollo is a Leading Alternative Investment Manager Apollo Global Management, LLC is a leading global alternative investment manager with expertise in credit, private equity, and real assets APO Ticker (NYSE) $13.0 Market Capitalization(1) billion $242 Total Assets Under Management(2) billion 21% 10-
Slide 5: 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 Credit Private Equity Real Assets AUM: $242bn $158bn AUM $70bn AUM $13bn AUM ▪ Drawdown ▪ Opportunistic buyouts ▪ Commercial real estate Employees: 1,024 ▪ Liquid / Performing ▪ Distressed
Slide 6: Apollo’s AUM has Grown More than 6x in 10 Years
Apollo’s AUM has Grown More than 6x in 10 Years AUM growth over the past ten years driven by the proliferation of yield-oriented permanent capital vehicles and continued success in opportunistic investing businesses Real Assets $242 Private Equity +$9bn Billion Other Credit +$41bn Opportunistic Acqu
Slide 7: 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 Assets Estate executives – Significant
Slide 8: Deep Bench of Senior Management Talent
Deep Bench of Senior Management Talent Executive Committee Josh Harris Leon Black Marc Rowan Co-Founder Founder Co-Founder Senior Managing Director Chairman and CEO Senior Managing Director Management Committee Gary Parr Joseph Lisa Anthony Stephanie Martin Scott Gernot Sanjay John Jim Zelter MC Co-
Slide 9: Apollo’s Industry Expertise
Apollo’s Industry Expertise Media/ Manufacturing Natural Consumer & Consumer Business Financial Chemicals Leisure Telecom/ & Industrial Resources Retail Services Services Services Technology Note: The listed companies are a sample of Apollo private equity and credit investments. The list was compile
Slide 10: 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 25 Year 39% 25% 20.8% 17.7% 17.4% 14.7% 13.2% 13.4% 9.2% 10.0% 7.0% 5.7% 4.4% 2.3% Barclays Government/Credit S&P 500 Index (1) All Private Equity (2) To
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 Athene Asset Ma
Slide 12: 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 13: 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) $241.6 billion 2011 Manager Business Development AINV (NASDAQ OMX) $4.4 billion(1) 2004 Company (BDC) Closed-End AAA L
Slide 14: Permanent Capital Vehicles – A Strategic Differentiator
Permanent Capital Vehicles – A Strategic Differentiator ▪ As of September 30, 2017, Apollo had $98.8 billion of AUM across seven Permanent Capital Vehicles(1): • Life Reinsurance: • Athene (NYSE: ATH) • Athora • Direct Origination: MidCap • Public BDC: Apollo Investment Corp (Nasdaq: AINV) • Mortgag
Slide 15: Table of Contents
Table of Contents ➢ Company Overview ➢ Business Segments ➢ Financial Information 15
Slide 16: Private Equity Business Overview
Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(1) ▪ $70.5bn in total AUM –$30.0bn fee-generating, $25.2bn carry-generating ▪ $36.0bn of dry powder, largely related to Fund IX ($24.7bn) 25% ▪ Value oriented: Transactions completed at lower EBITDA 21% multipl
Slide 17: Supplemental Private Equity Fund Information
Supplemental Private Equity Fund Information Fund VI Fund VII Fund VIII ANRP II Vintage: 2006 Vintage: 2008 Vintage: 2013 Vintages: 2016 Fund Size: $10.1bn Fund Size: $14.7bn Fund Size: $18.4bn Fund Series Size: $3.5bn Total Invested: $12.5bn Total Invested: $16.2bn Committed to Date: $14.9bn Commit
Slide 18: 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 Opportunistic Buyouts Corporate Carve-Out Distressed For Control ▪ Focus on industries and geographies ▪ Build de novo businesses with ▪ Leader in complex corporate
Slide 19: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM ▪ $157.9bn in total AUM 10-Year CAGR: 34% –$126.9bn fee-generating, $26.6bn carry-generating ▪ Same value-oriented approach as Private Equity $158 ▪ Leverage Apollo’s core industry expertise and benefit from integrated platform ▪ P
Slide 20: Accelerated and Diversified Growth in Credit
Accelerated and Diversified Growth in Credit Apollo Credit AUM Pre-Crisis Financial Crisis Recovery / Expansion ($ in billions) $158 10-Year $137 CAGR $121 $102 $109 34% $65 $32 $15 $19 $22 $8 3Q’07 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q’17 and earlier Key Growth Drivers Total Return A
Slide 21: 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 $158 billion of AUM 15%+ Drawdown Funds ($27bn) Hedge Funds ($7bn) MidCap
Slide 22: Athene & Athora: Differentiated & Strategic Growth Drivers
Athene & Athora: Differentiated & Strategic Growth Drivers ▪ Founded in 2009, Athene Holding Ltd. (“Athene”) is an insurance holding company focused on fixed annuities ▪ Founded in 2016, originally as ‘AGER’ consolidated within Athene Holding, Athora will be a standalone company focused on European
Slide 23: 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 24: Real Assets Business Overview
Real Assets Business Overview Highlights Supplemental Information ▪ $13.2bn in total AUM, including $9.3bn in fee-generating $13 billion AUM ▪ Global platform with a presence in North America, Europe and Asia ▪ Value-oriented approach for equity investments targeting the Equity acquisition and recap
Slide 25: Table of Contents
Table of Contents ➢ Company Overview ➢ Business Segments ➢ Financial Information 25
Slide 26: Drivers of Apollo’s Business
Drivers of Apollo’s Business Business Model Driven by Fee Related Revenues, Carried Interest Income, and Balance Sheet Investments Across Three Segments PE Credit RA Total Credit Athene Non- (ex-Athene Non Sub Advised(1) -Sub Advised) AUM $70bn(2) $94bn(2) $64bn(2) $13bn(2) $242bn(2) Fee-Generating
Slide 27: Management Fees Have More Than Doubled Since IPO
Management Fees Have More Than Doubled Since IPO Annual Management Fee Growth ($ millions) Fund IX Commencement $1,248 +$23.5 billion +$315 million Fee-Generating Annualized $1,048 AUM Management Fees $978 $901 $912 Fund VIII Step-Down ∆ in Fee Basis ($95) million $731 & Annualized ∆ in Fee Rate Man
Slide 28: Solid, Stable Balance Sheet
Solid, Stable Balance Sheet ▪ At September 30, 2017, Apollo had $931 million in cash and cash equivalents, $199 million in U.S. Treasury securities, at fair value, $1.8 billion of investments, and $869 million of net carried interest receivable for a total net value of $3.8 billion ▪ Long-term debt
Slide 29: Well Capitalized with Strong Credit Metrics
Well Capitalized with Strong Credit Metrics Apollo believes it is well capitalized with moderate debt supported by strong income statement and balance sheet metrics ($ in millions) 2014 2015 2016 LTM 3Q'17 Fee Related Earnings $672 $422 $530 $569 Distributable Earnings (pre-tax) 1,430 623 648 909 In
Slide 30: APO’s Financial Summary – Combined Segments
APO’s Financial Summary – Combined Segments ($ in thousands, except per share data) 3Q'16 2Q'17 3Q'17 YTD'16 YTD'17 Management Fees $258,485 $266,908 $282,434 $731,051 $801,395 Advisory and Transaction Fees from Related Parties, net 30,251 23,629 16,209 103,149 54,905 Carried Interest Income from Re
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures ($ in thousands) 3Q'16 2Q'17 3Q'17 YTD'16 YTD'17 GAAP Net Income Attributable to Apollo Global Management, LLC Class A Shareholders $94,619 $86,908 $198,569 $235,883 $430,673 Preferred distributions — 4,772 4,383 — 9,155 Net income (loss) attributable to N
Slide 32: Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures
Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures ($ in thousands, except share data) 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 YTD'16 YTD'17 Net Income Attributable to Apollo Global Management, LLC Class A Shareholders $94,619 $166,967 $145,196 $86,908 $198,569 $235,883 $430,67
Slide 33: Investment Records as of September 30, 2017
Investment Records as of September 30, 2017 Drawdown As of September 30, 2017 Vintage Committed Total Invested Realized Remaining Unrealized Total Total AUM Gross IRR(1) Net IRR(1) Year(1) Capital Capital(1) Value(1) Cost(1) Value(1) Value(1) ($ in millions) Private Equity: Fund IX N/A $24,729 $24,7
Slide 34: Investment Records – Notes
Investment Records – Notes (1) Refer to the definitions of Vintage Year, Total Invested Capital, Realized Value, Remaining Cost, Unrealized Value, Total Value, Gross IRR and Net IRR in the non-GAAP financial information & definitions section of this presentation. (2) Returns have not been presented
Slide 35: Investment Records as of September 30, 2017
Investment Records as of September 30, 2017 Liquid/Performing Net Returns Vintage Year Total AUM 3Q'17 YTD'17 3Q'16 YTD'16 FY'16 ($ in millions) Credit: Hedge Funds(1) Various $6,617 1% 4% 3% 9% 11% CLOs(2) Various 11,937 1 3 3 7 9 SIAs / Other Various 23,211 2 6 4 8 9 Total $41,765 Permanent Capita
Slide 36: Investment Records – Notes
Investment Records – Notes (1) Hedge funds primarily includes Apollo Credit Strategies Master Fund Ltd., Apollo Credit Master Fund Ltd. and Apollo Credit Short Opportunities Fund. (2) CLO returns are calculated based on gross return on invested assets, which excludes cash. Included within Total AUM
Slide 37: Endnotes & Definitions
Endnotes & Definitions “Assets Under Management”, or “AUM”, refers to the assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and account
Slide 38: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) Fee Related Earnings, or “FRE”, is derived from our segment reported results and refers to a component of EI that is used as a supplemental performance measure to assess whether revenues that we believe are generally more stable and predictable in nature, primarily
Slide 39: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) “Realized Value” refers to all cash investment proceeds received by the relevant Apollo fund, including interest and dividends, but does not give effect to management fees, expenses, incentive compensation or carried interest to be paid by such Apollo fund. “Remain
Slide 40: 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 40
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