Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (May 2018)
37 slides from Apollo Global Management, Inc. (new)'s investor presentation, May 2018
Slide 1: Apollo Global Management Investor Presentation
APOLLO GLOBAL MANAGEMENT, LLC (NYSE: APO) Apollo Global Management Investor Presentation May 2018
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 Overview
Apollo Overview APOLLO
Slide 4: Apollo is a Leading Alternative Investment Manager
Apollo is a Leading Alternative Investment Manager Apollo Global Management is a leading global alternative investment manager with expertise in credit, private equity, and real assets APO $247 billion $13.8 $100+ billion 39% Total Assets Under billion AUM in Permanent Capital Gross IRR in Private M
Slide 5: Apollo has a Globally Diversified Platform Across Asset Classes
Apollo has a Globally Diversified Platform Across Asset Classes Firm Profile1 Business Segments Founded: 1990 Credit Private Equity Real Assets AUM: $247 billion $165bn AUM $69bn AUM $13bn AUM • Drawdown • Opportunistic buyouts • Commercial real estate Employees: 1,030 • Liquid / Performing • Distre
Slide 6: Assets Under Management have Grown More than 6x in 10 Years
Assets Under Management have 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 Pending Transactions1 +$25 billion Real Assets Private Equity $247 +$8bn
Slide 7: Apollo's Integrated Business Model
Apollo’s Integrated Business Model Industry Insights Management Relationships Investment Opportunities Credit / Real Assets Development of industry insight through: • Over 300 current and former portfolio companies • Strategic relationships with industry executives Private Equity • Significant relat
Slide 8: Deep Bench of Senior Management Talent
Deep Bench of Senior Management Talent Executive Committee Leon Black Josh Harris Marc Rowan Founder Co-Founder Co-Founder Chairman and CEO Senior Managing Director Senior Managing Director Scott Kleinman Jim Zelter Gary Parr Co-President Co-President Senior Managing Director Lead Partner, Private E
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 (1990) 39% 25% 24% 23% 18% 14% 14% 14% 10% 9% 6% 7% 4% 2% 1 2 3 Barclays Government S&P 500 Index All Private Equity Top Quartile PE Private Private 1 Credit Bond Index
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 Athene Asset Management✓ • Investors co
Slide 12: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Apollo’s Fundraising Capabilities Global Base of Long-Term Investors • Integrated global team structure incorporating sales Middle East Latin America coverage, product specialists, and investor relations • Build new relationships and cross-sell across the 8%
Slide 13: Permanent Capital Vehicles – A Strategic Differentiator
Permanent Capital Vehicles – A Strategic Differentiator Apollo has nearly $105 billion of AUM across seven Permanent Capital Vehicles1, which comprises, more than 40% of both Apollo’s AUM and management fees are derived from this locked-in, stable capital • Life Reinsurance: - Athene (NYSE: ATH) - A
Slide 14: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Company Name Ticker AUM Year of Listing Publicly Traded Alternative Apollo APO $247.4 billion 2011 Investment ( (NYSE) Manager Business Development Apollo AINV Investment $4.5 billion1 2004 Company (NASDAQ OMX) Corporation (BDC) Apollo
Slide 15: Business Segments
Business Segments APOLLO
Slide 16: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM • $165bn in total AUM ($ billions) – $129bn fee-generating – $31bn performance fee-generating $165 10-Year • Same value-oriented approach as Private Equity CAGR 32% • Leverage Apollo’s core industry expertise and benefit from integ
Slide 17: Accelerated and Diversified Growth in Credit Through Cycle
Accelerated and Diversified Growth in Credit Through Cycle Apollo Credit AUM ($ billions) 10-Year $164 $165 CAGR 32% $137 $121 $102 $109 $65 $22 $32 $11 $15 $19 2007 20073 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q’18 and earlier Key Growth Drivers Total Return Apollo Asset EPF US CLO CLO
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 $165 billion of AUM Target Return Drawdown Funds 15%+ ($28bn) Hedge Funds ($7bn) 10-15%
Slide 19: Athene & Athora: Differentiated & Strategic Growth Drivers
Athene & Athora: Differentiated & Strategic Growth Drivers • Founded in 2009, Athene Holding Ltd. (“Athene”, NYSE: ATH) is an insurance holding company focused on fixed annuities • Founded in 2016, Athora Holding Ltd. (“Athora”) is a standalone company focused on European insurance opportunities • T
Slide 20: Private Equity Business Overview
Private Equity Business Overview Highlights Long Track Record of Success in Private Equity1 • $68.9bn in total AUM - $43.8bn fee-generating - $24.7bn performance fee-generating • $46.5bn of dry powder, largely related to Fund IX ($24.7bn) 25% • Value oriented: Transactions completed at lower EBITDA
Slide 21: Supplemental Private Equity Fund Information
Supplemental Private Equity Fund Information1 Fund VII Fund VIII ANRP II PE Portfolio Composition Vintage: 2008 Vintage: 2013 Vintage: 2016 Private Investments Fund Size: $14.7bn Fund Size: $18.4bn Fund Size: $3.5bn 72% 67 Total Invested: $16.2bn Committed to Date: $16.5bn Committed to Date: $2.6bn
Slide 22: Three Pathways to Capture Value
Three Pathways to Capture Value Apollo’s traditional private equity 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 that • Build de novo businesses with • Leader in
Slide 23: Real Assets Business Overview
Real Assets Business Overview Highlights Supplemental Information • $13.2bn in total AUM, including $9.2bn in fee-generating $13 billion AUM • Global platform with a presence in North America, Europe and Asia • Value-oriented approach for equity investments targeting Equity ECB the acquisition and r
Slide 24: Financial Information
Financial Information APOLLO
Slide 25: Drivers of Apollo Business
Drivers of Apollo Business Business model driven by fee related revenues, performance fees, and balance sheet investments across three segments Credit PE RA Total Athene / Credit Athora Non- (ex- Non-Sub Sub Advised Advised Assets) Assets1 AUM2 $98bn $67bn3 $69bn $13bn $247bn Fee-Generating $65bn $4
Slide 26: Management Fees Have More Than Doubled Since IPO and are Poised to Grow Further
Management Fees Have More Than Doubled Since IPO and are Poised to Grow Further Annual Management Fee Growth ($ millions) $1,369 Apollo Fund IX1 +$17 billion +$210 million Fee-Generating Annualized AUM Management Fees CAGR $1,102 $1,082 14% Athene Voya Transaction2 $978 $901 $912 +$19 billion +$57 m
Slide 27: Solid, Stable Balance Sheet
Solid, Stable Balance Sheet • At March 31, 2018, Apollo had $1.2 billion in cash and cash equivalents and U.S. Treasury securities, at fair value, $756 million of net performance fees receivable, $1.0 billion of GP & other investments and an $884 million investment in Athene and AAA, for a total net
Slide 28: Well Capitalized with Strong Credit Metrics
Well Capitalized with Strong Credit Metrics Apollo believes it is well capitalized with moderate debt supported by strong income statement and balance sheet metrics ($ millions) 2015 2016 2017 LTM 1Q’18 Fee Related Earnings $422 $530 $624 $623 Distributable Earnings (pre-tax) 623 648 1010 977 Intere
Slide 29: Summary of Non-GAAP Measures
Summary of Non-GAAP Measures ($ in thousands, except per share data) 1Q'17 4Q'17 1Q'18 1Q’17 LTM 1Q’18 LTM Management Fees $252,053 $280,920 $272,203 $998,769 $1,102,465 Advisory and Transaction Fees 15,067 62,719 12,994 154,183 115,551 Performance Fees1 359,006 503,744 (122,964) 1,265,860 855,620 P
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures ($ in thousands) 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 1Q’17 LTM 1Q’18 LTM GAAP Net Income (Loss) Attributable to Apollo Global Management, LLC Class A Shareholders $145,196 $86,908 $198,569 $184,893 ($62,645) $580,874 $407,725 Preferred distributions — 4,772 4,38
Slide 31: Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures
Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures ($ in thousands, except share data) 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Net Income (Loss) Attributable to Apollo Global Management, LLC Class A Shareholders $145,196 $86,908 $198,569 $184,893 ($62,645) Distributions declare
Slide 32: Investment Records as of March 31, 2018
Investment Records as of March 31, 2018 Drawdown Committed Total Invested Realized Remaining Unrealized Total ($ in millions) Vintage Year1 Total AUM Capital Capital1 Cost1 Value1 Gross IRR1 Net IRR1 Value1 Value1 Private Equity: Fund IX 2018 $24,729 $24,729 $— $— $— $— $— —% —% Fund VIII 2013 21,55
Slide 33: Investment Records – Notes
Investment Records – Notes Note: The Drawdown funds included in the investment record table on page 31 have greater than $500 million of AUM and/or form part of a flagship series of funds. The SIAs included in the investment record table on page 31 have greater than $200 million of AUM and do not pr
Slide 34: Investment Records as of March 31, 2018
Investment Records as of March 31, 2018 Liquid/Performing Net Returns ($ in millions) Vintage Year Total AUM 1Q'18 1Q'17 FY’17 Credit: Hedge Funds1 Various $6,775 1% 1% 5% CLOs2 Various 12,336 1 1 4 SIAs / Other Various 26,171 — 2 7 Total $45,282 Permanent Capital Vehicles Total Returns3 ($ in milli
Slide 35: 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 36: Endnotes & Definitions
Endnotes & Definitions EI represents segment 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 intangible assets, c
Slide 37: Endnotes & Definitions
Endnotes & Definitions Net IRR of a real assets 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 net asset value as of March 31
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