Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (May 2017)
32 slides from Apollo Global Management, Inc. (new)'s investor presentation, May 2017
Slide 1: Investor Presentation May 2017
Investor Presentation May 2017 Information contained herein is as of March 31, 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 profitable o
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 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 estate APO Ticker (NYSE) $10.1 Market Capitalization(1) billion $197 Total Assets Under Management (2) billion 17% 10
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 Credit Private Equity Real Estate AUM: $197bn $141bn AUM $45bn AUM $12bn AUM Drawdown Opportunistic buyouts Commercial real estate Employees: 989 Liquid / Performing Distressed b
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 22% $197 Billion PE RE+$12bn RE $12bn Successor Scale Existing Credit Funds Strategies Credit +$137bn $141bn
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: 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 Anthony Stephanie Sanjay Michael Lisa Martin Scott Gernot John MC Co- Civale Dr
Slide 8: Apollo's Deep Industry Expertise
Apollo’s Deep 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 co
Slide 9: 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% 25% 20.2% 20.2% 16.4% 16.9% 13.8% 12.5% 11.2% 10.7% 9.8% 7.2% 7.9% 7.2% 4.9% 5.7% 3.2% Barclays S&P 500 Index (1) NCREIF (2) All Private Equi
Slide 10: 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 11: 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 12: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Publicly Traded AINV Ticker: (NASDAQ OMX) AUM: $3.6 billion 2004 Year of Listing: Alternative Investment ( APO (NYSE) $197.5 billion 2011 Manager Business Development AINV (NASDAQ OMX) $4.3 billion 2004 Company (BDC) Closed-End AAA Limi
Slide 13: Private Equity Business Overview
Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(1) ▪ $44.6bn in total AUM –$30.8bn fee-generating, $24.0bn carry-generating ▪ $12.0bn of dry powder 25% ▪ Value oriented: Transactions completed at lower EBITDA 20% multiples than industry averages 13% 8% ▪ Inv
Slide 14: Supplemental Private Equity Fund Information
Supplemental Private Equity Fund Information Fund VI Fund VII Fund VIII ANRP I and ANRP II Vintage: 2006 Vintage: 2008 Vintage: 2013 Vintages: 2012 and 2016 Fund Siz e: $10.1bn Fund Size: $14.7bn Fund Siz e : $18.4bn Fund Series Size: $4.8bn Total Invested: $12.5bn Total Invested: $16.1bn Committed
Slide 15: 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 16: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM ▪ $140.9bn in total AUM 10-Year CAGR: 30% –$114.9bn fee-generating, $27.8bn carry-generating ▪ Same value-oriented approach as private equity $141 ▪ Leverage Apollo’s core industry expertise and benefit from integrated platform ▪ A
Slide 17: Accelerated and Diversified Growth in Credit
Accelerated and Diversified Growth in Credit Apollo Credit AUM Pre-Crisis Financial Crisis Recovery / Expansion ($ in billions) $137 $141 $121 10-Year $109 $102 CAGR 30% $65 $32 $19 $22 $11 $15 $4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q’17 Key Growth Drivers Total Re turn Apollo As
Slide 18: 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 $141 billion of AUM 15%+ Drawdown Funds ($24bn) Hedge Funds Credit 10-15%
Slide 19: 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 20: 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 21: Real Estate Business Overview
Real Estate Business Overview Highlights Supplemental Information ▪ $12.0bn in total AUM, including $8.5bn in fee-generating $12 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 22: Drivers of Our Business
Drivers of Our Business Business Model Driven by Fee Related Revenues, Carried Interest Income, and Balance Sheet Investments Across Three Segments PE Credit RE Total Credit Athene Non- (ex-Athene Non Sub Advised(1) -Sub Advised) AUM $45bn(2) $84bn(2) $57bn(2) $12bn(2) $197bn(2) Fee-Generating $8bn
Slide 23: Strong FRE with Future Carry and Fee Potential
Strong FRE with Future Carry and Fee Potential $566 million of Fee Related Earnings (FRE) $90 billion of Carry-Eligible AUM(1) ($ in millions) $37mm $497mm Operating Uninvested Other Expenses $566mm Carry- Fees Eligible Mgmt ($175mm) AUM Fees Currently $23.7bn Generating Carry 5-Year $52.6bn Unreali
Slide 24: Permanent Capital Vehicles – A Strategic Differentiator
Permanent Capital Vehicles – A Strategic Differentiator As of March 31, 2017, Apollo had $89.4 billion of AUM across six Permanent Capital Vehicles(1): • Life Reinsurance: Athene • Direct Origination: MidCap • Public BDC: Apollo Investment Corp (Nasdaq: AINV) • Mortgage REIT: Apollo Commercial Rea
Slide 25: Solid, Stable Balance Sheet
Solid, Stable Balance Sheet At March 31, 2017, Apollo had $1.1 billion in total cash, $1.6 billion of investments, and $0.8 billion of net carried interest receivable for a total net value of $3.5 billion Long-term debt of $1.4 billion (with maturities in 2021, 2024, and 2026) and an undrawn $50
Slide 26: Well Capitalized with Strong Credit Metrics
Well Capitalized with Strong Credit Metrics Apollo is well capitalized with moderate debt supported by strong income statement and balance sheet metrics ($ in millions) 2014 2015 2016 LTM 1Q'17 Fee Related Earnings $672 $422 $530 $566 Distributable Earnings (pre-tax) 1,430 623 648 783 Interest Inter
Slide 27: 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 27
Slide 28: APO's Financial Summary – Combined Segments
APO’s Financial Summary – Combined Segments ( $ in thousands, except per share data and where noted) 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 1Q ’16 LTM 1Q ’17 LTM Management fees from related parties $230,933 $241,633 $258,485 $246,598 $252,053 $918,113 $998,769 Advisory and transaction fees from related
Slide 29: Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures
Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures ($ in thousands, except share data) 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 Ne t Income (Loss) Attributable to Apollo Global Management, LLC ($32,828 ) $174,092 $94,619 $166,967 $145,196 Distributions declared on Class A s
Slide 30: 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 r
Slide 31: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) EI represents segm ent 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 intangi
Slide 32: 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
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