Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (October 2012)
28 slides from Apollo Global Management, Inc. (new)'s investor presentation, Oct 16, 2012
Slide 1: Apollo Global Management, LLC - Investor Overview
Exhibit 99.1 Apollo Global Management, LLC - Investor Overview October 2012
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 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, discu
Slide 3: Apollo Global Management, LLC
Apollo Global Management, LLC Apollo Global Management is a leading global alternative investment manager in private equity, credit-oriented capital markets and real estate Ticker: APO Exchange: New York Stock Exchange Trading Price (October 12, 2012): $14.48 Market Capitalization $5.6 billion L12M
Slide 4: Agenda
Agenda 1. Overview of Apollo 2. Secular Opportunity 3. Business Segments 4. Financial Overview 3
Slide 5: Investment Highlights
Investment Highlights Leading global alternative investment manager with a diversified and integrated platform and highly scalable business model 22 year history of industry-leading returns, especially during periods of market turbulence Well positioned to capitalize on secular growth dynamics in al
Slide 6: Apollo Global Management Overview
Apollo Global Management Overview Firm Profile (1) Principal Investment Businesses (1) Founded: 1990 Private Equity Natural Resources (2) Capital Markets (3) Real Estate AUM: $105 bn Employees: 616 $38bn ~$1bn $56bn $8bn Inv. Prof.: 237 AUM AUM AUM AUM Investment Approach Global Footprint Value-orie
Slide 7: Apollo’s Fully Integrated Business Model
Apollo’s Fully Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Equity Development of industry insight through : Real – Over 300 current and former portfolio Estate Natural companies Resources – Exclusive strategic relationships Capital with indus
Slide 8: Apollo’s Expertise – Nine Core Industries
Apollo’s Expertise – Nine Core Industries Financial & Consumer Distribution & Manufacturing Media, Cable & Packaging & Satellite & Chemicals Business Commodities & Retail Transportation & Industrial Leisure Materials Wireless Services ATHLON ENERGY Note: The listed companies are a sample of Apollo p
Slide 9: Significant Growth and Diversification
Significant Growth and Diversification Apollo’s Total AUM Has Grown By More Than 10x Over the Last Decade ($ in millions) Total AUM: $105 bn $2,696 $7,861 Scale Existing Businesses New Product Development Apollo AUM CAGR: 35% $7,971 $6,469 $56,108 Geographic $495 Expansion 1990-2002: $22,283 $31,867
Slide 10: Growing Global Base of Loyal Long-Term Investors
Growing Global Base of Loyal Long-Term Investors Long-Lived Asset Base 1 Recent Mandates for Large Strategic Partnerships Total AUM: $68 billion Customized strategic partnerships enable Apollo’s Fewer than 7 Years institutional investors to be more opportunistic and 8% well-positioned to capture val
Slide 11: Significant Progress Since Our IPO
Significant Progress Since Our IPO Since its IPO in March, 2011, Apollo has continued to execute against its growth plan Increased total AUM by 50% from $70 billion to $105 billion Raised $9.6 billion of third party capital across the Apollo platform Deployed $5.2 billion of private equity capital D
Slide 12: Agenda
Agenda 1. Background & Business Model 2. Secular Opportunity 3. Business Segments 4. Financial Overview 11
Slide 13: Current Pension Allocation Plans are Broken
Current Pension Allocation Plans are Broken Historical Asset Class Returns 20 Year 10 Year 5 year Projected (2) Cash, Other; 6% (1) Equities 7.8% 2.9% (0.3%) 3-5% 41% Typical Pension Allocation(1) (1) Fixed Income 33% 6.5% 5.8% 6.5% 2-4% (1) Alternatives 12% 13.5% 12.0% 7.2% 15+% (1) Real Assets 8.1
Slide 14: Alternatives are Growing as Investors Search for Yield
Alternatives are Growing as Investors Search for Yield “Cash-strapped US Pension Funds Ditch Portfolio Allocations to Alternatives Have Stocks For Alternatives” Quadrupled Since 1995 (1) — Reuters (8/18/12) 60% “Alternatives Becoming Mainstream” 50% 49% 51% — Asset Allocation News (7/27/12) 46% 41%
Slide 15: Agenda
Agenda 1. Background & Business Model 2. Secular Opportunity 3. Business Segments 4. Financial Overview 14
Slide 16: Private Equity Business Overview
Private Equity Business Overview Highlights (1) Steady Pace of Capital Deployment $38.2bn in AUM ($27.8bn in fee generating) ($mm) – 16% CAGR (12/31/07- 6/30/12) fee generating $950mm average per quarter $1,657 $1,266 $1,226 $6.6bn of “dry powder” $984 $802 $757 – Latest fund (Fund VII) total value
Slide 17: Capital Markets Business Overview
Capital Markets Business Overview(1) Highlights Diversified Mix of AUM Established in 2003 Distressed & Event Driven $56.1 billion AUM ($45.5 billion in fee-generating) Hedge Funds Mezzanine Funds Same value-oriented approach as private equity $4.0bn $2.0bn 4% Leverage core industry expertise of glo
Slide 18: Real Estate Business Overview
Real Estate Business Overview Overview(1) Growth in Apollo’s Real Estate AUM Apollo Global Real Estate (AGRE) leverages Apollo’s investment expertise and long history of investing in real estate-related sectors AGRE’s investment team has significant experience in real estate restructuring and invest
Slide 19: Agenda
Agenda 1. Background & Business Model 2. Secular Opportunity 3. Business Segments 4. Financial Overview 18
Slide 20: Apollo’s Primary Business Drivers
Apollo’s Primary Business Drivers Management fees are earned Management Fees based on a percentage of fee- generating assets Assets Under Management Transaction fees are generated on certain completed PE & RE transactions Transaction and Advisory Fees Advisory fees are derived through the ongoing mo
Slide 21: Steady Growth of Management Fee Revenue
Steady Growth of Management Fee Revenue Management Business Revenues Management Fee as % of Avg. Fee Generating AUM ($mm) 0.94 % 1.00 % 1.03 % $700 0.80 % $617.0 $600 $579.3 $558.3 $512.7 $500 Private Equity Capital Markets $391.6 $402.5 Q2 2011 Q2 2012 $400 $313.8 $300 Revenue Breakdown by Business
Slide 22: Overview of Carried Interest
Overview of Carried Interest $ in millions % of Portfolio Marks Valued Using Exchange As of 6/30/12 or Broker Quotes (1) as of 6/30/12 Carried Interest Receivable by Segment: Private 59% Private Equity $990.6 Equity Capital Markets 308.8 Capital 87% Markets Real Estate 3.4 Real 47% Total Carried Int
Slide 23: AGM Key Balance Sheet Indicators
AGM Key Balance Sheet Indicators AGM Key Balance Sheet Indicators as of June 30, 2012 ($ in millions, except per share data) Cash and Cash Equivalents $620 G.P and L.P. Investments Held by AGM 404 Carried Interest Receivable 1,302 Net Carry Receivable Profit Sharing Payable 666 $636 Shareholders Equ
Slide 24: Cash Distributions to Shareholders
Cash Distributions to Shareholders Since the beginning of 2011, Apollo has distributed an average quarterly cash distribution of $0.27 per share (1) ($ per share) ~$0.12 from one-time realizations ~$0.08 from interest and dividends ~$0.07 regular distribution 23 1. Past performance is not indicative
Slide 25: AGM’s Financial Summary – Combined Segments
AGM’s Financial Summary – Combined Segments(1) For the Three Months Ended June For the Six Months Ended June $ in millions 2012 2011 2012 2011 Total Assets under Management (2) Private Equity $38,228 $40,430 $38,228 $40,430 Capital Markets 56,108 23,684 56,108 23,684 Real Estate 7,861 7,600 7,861 7,
Slide 26: APO NYSE
APO NYSE.
Slide 27: ENI to GAAP Earnings Reconciliation
ENI to GAAP Earnings Reconciliation ($'s in millions) For the Three Months Ended For the Six Months Ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 Reconciliation of GAAP Net Income to ENI and Adjusted ENI Net Income (loss) attributable to Apollo Global Management, . . LLC ............
Slide 28: Endnotes
Endnotes Footnotes from Page 15: 1. Data as of June 30, 2012. 2. Information for Apollo’s distressed investment experience is provided to illustrate the Firm’s experience making distressed investments since the Firm’s inception. While Apollo believes the performance represents all such distressed in
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