33 slides from Apollo Global Management, Inc. (new)'s investor presentation, August 2015
Slide 1: Investor Presentation August 2015
Investor Presentation August 2015 Information contained herein is as of June 30, 2015 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) $8.8 billion Total Assets Under Management(2) $162.5 billion AUM CAGR (2004 – 2Q’15) 29% LTM Dividend Yi
Slide 4: Agenda
Agenda 1. Overview of Apollo 2. Business Segments 3. Financial Overview 4
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 Private Equity Credit Real Estate AUM: $162.5bn $39.3bn AUM $112.7bn AUM $10.6bn AUM Drawdown Residential and commercial Employees: 886 Opportunistic buyouts Liquid / Performing
Slide 6: 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 10-YR CAGR $162 29% Billion PE RE +$11bn RE $11bn Successor Scale Existing Credit PE Funds Strategies $39bn +$111
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 Estate executives – Significant relati
Slide 8: 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 9: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Apollo’s Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 26.3% 25% 21.1% 22.3% 14.5% 15.4% 12.8% 13.0% 13.5% 8.0% 9.4% 8.4% 9.7% 4.8% 5.0% 6.1% Barclays S&P 500 Index (1) NCREIF (2) All Private Equity
Slide 10: 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(1) Apollo Investment Corporation (AINV)(2) AIE II(3) & EPF I(4,5) Weighted Average Yield on Total Net IRR Since Inception Net IRR
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 Overview of Apollo’s Marketing Capabilities AUM subscriptions for the period September 30, 2011 through December 31, 2014 Full-scale solutions provider in alternatives Real Estate $3bn Integrated global team str
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) $162.5 billion 2011 Manager Business Development AINV (NASDAQ OMX) $4.3 billion 2004 Company (BDC) Closed-End AAA Limi
Slide 14: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 14
Slide 15: Private Equity Business Overview
Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(1) $39.3bn in total AUM – $28.5bn fee-generating, $12.5bn carry-generating $17.9bn of dry powder 25% Value oriented: Buyouts completed at lower EBITDA multiples than 22.3% industry averages 13.5% 9.4% I
Slide 16: 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: $15.3bn
Slide 17: 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 18: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Total Credit AUM 2004 - 2Q’15 CAGR: 52% $112.7bn in total AUM – $92.7bn fee-generating, $23.3bn carry-generating Same value-oriented approach as private equity $112.7 Leverage Apollo’s core industry expertise and benefit from integrated
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 De-leveraging of Investor demand change on financial global financial for yield and re-regulation balance sheets opportunistic credit Apollo Credit Platform Senior Loans Stressed Credit NPLs CLOs Ba
Slide 20: Athene: Differentiated & Strategically Important Growth Driver
Athene: Differentiated & Strategically Important Growth Driver Services Assets Liabilities Assets Athene Asset Management Athene Holding Ltd. Athene Asset Management, L.P. (“AAM”) is a subsidiary of Athene Holding Ltd. (“Athene”) is an insurance holding company Apollo and is included within the
Slide 21: MidCap: Opportunity to Scale Direct Origination Capability
MidCap: Opportunity to Scale Direct Origination Capability Apollo’s Strategic View of Credit Landscape Investment Highlights Illiquid Investment Grade Favorable Regulatory Landscape Proprietary Origination Capabilities Directly Originated Broadly Syndicated Non-CUSIP / CUSIP / Experienced Management
Slide 22: Real Estate Business Overview
Real Estate Business Overview Highlights Key Stats $10.6bn in total AUM, including $7.2bn in fee generating $10.6 billion AUM Global platform with a presence in North America, Europe and Asia In May 2015, Apollo acquired an Asia focused real estate investment manager with approximately $0.6 bi
Slide 23: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview 23
Slide 24: Drivers of Our Business
Drivers of Our Business Business Model Driven by Management Business, Incentive Business and Balance Sheet, Across Three Segments PE Credit RE Total Excl. Athene Athene AUM $39bn(1) $66bn(1) $46bn(1)(3) $11bn(1) $162bn(1) Management Business Management FGAUM $28bn $46bn $47bn $7bn $128bn Fees Avg. F
Slide 25: Strong and Growing Management Business
Strong and Growing Management Business Growth in Fee Generating AUM and Focus on Operating Margins has Driven Strong Growth in Management Business Economic Income and Cash Earnings Management Business Economic Income Management Business Distributable Earnings (“DE”) (Pre-tax) ($mm) ($mm) $578 $435 $
Slide 26: Future Carry and Fee Potential
Future Carry and Fee Potential $10 billion of AUM with Future $81 billion of $28 billion of Dry Powder(1) Management Fee Potential(1) Carry-Eligible AUM(2) Real Real Estate Estate $1.0bn $1.0bn Uninvested Credit Carry- $6.9bn Eligible AUM Currently Credit Private $28.3bn Generating $9.0bn Equity Car
Slide 27: Strong, Stable Balance Sheet
Strong, Stable Balance Sheet At June 30, 2015, Apollo had $838 million in total cash, $1,042 million of investments, and $425 million of net carried interest receivable for a total net value of $2.3 billion, or $5.64 per DE share outstanding. Long-term debt of $1.0 billion, includes $500 million
Slide 28: 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 29: 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) 2015 2014 2014 2013 2012 Total Assets under Management(1) Private Equity $39,264 $51,836 $41,299 $50,158 $39,061 Credit 112,680 106,454 108,960 101,58
Slide 30: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Economic Income $266,335 $71,327 $142,617 $102,069 $157,533 $541,107 $259,602 Income tax provision (35,037) (29,376) (50,283) (5,514) (9,092) (67,586) (14,606) Net income attributable to Non-Cont
Slide 31: Credit Fund Summary
Credit Fund Summary Apollo Fund Year of Inception Apollo Fund Year of Inception Apollo Credit Liquidity Fund 2007 ALM VIII 2013 Apollo Credit Opportunity Fund I 2008 ALM X 2014 Apollo Credit Opportunity Fund II 2008 ALM XI 2014 Apollo Credit Opportunity Fund III 2013 ALM XIV 2014 Apollo Senior Loan
Slide 32: Endnotes & Definitions
Endnotes & Definitions Endnotes: 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
Slide 33: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) Uninvested Carry Eligible AUM – refers to available capital for investment or reinvestment subject to the provisions of applicable limited partnership agreements or other governing agreements that are not currently part of the NAV or fair value of investments that