Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Q1 2015 Earnings Presentation
33 slides from Apollo Global Management, Inc. (new)'s earnings presentation, May 7, 2015
Slide 1: Apollo Global Management, LLC Reports First Quarter 2015 Results
Apollo Global Management, LLC Reports First Quarter 2015 Results New York, May 7, 2015-- Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the first quarter ended March 31, 2015. “In the first quarter we continued to leverage
Slide 2: About Apollo; Forward-Looking Statements
About Apollo Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management of approximately $163 billion
Slide 3: Apollo Global Management, LLC First Quarter 2015 Earnings
Apollo Global Management, LLC First Quarter 2015 Earnings May 7, 2015 3
Slide 4: Apollo 1Q'15 Financial Results Highlights
Apollo 1Q’15 Financial Results Highlights GAAP Net Income of $30.9 million ($0.09/share) GAAP & Economic Net Income (“ENI”) of $93.5 million ($0.23/share) Economic Management Business (“MB”) Economic Income (“EI”) of $91.6 million ($0.23/share) Earnings Incentive Business (“IB”) Economic Inc
Slide 5: Management Business Economic Earnings Summary
Economic Earnings Summary $ in thousands, except per share data 1Q'14 4Q'14 1Q'15 Management Fees $223,830 $220,643 $224,713 (1) Advisory and Transaction Fees from Affiliates, net 116,065 67,909 9,543 Carried Interest Income from Affiliates 8,464 10,620 10,774 Management Business Management Business
Slide 6: Distributable Earnings Summary
Distributable Earnings Summary $ in thousands except per share data 1Q'14 4Q'14 1Q'15 Management Business Economic Income $154,050 $171,461 $91,559 (1) Management Business Less: Non-Cash Revenues (59,093) (91,648) (2,784) Add Back: Equity-Based Compensation 58,137 19,149 15,831 Add Back: Depreciatio
Slide 7: Private Equity
Private Equity Highlights Business Drivers Economic Income up 48% quarter-over-quarter, driven by rising net carried interest income offsetting a lower contribution from the MB 1Q’15 LTM Traditional Private Equity fund appreciation(1) during the quarter of 2.3% was driven by publicly traded equi
Slide 8: Credit
Credit Highlights Business Drivers Economic Income up 10% quarter-over-quarter when excluding the $59 million non-cash Athene monitoring fee in 4Q’14 1Q’15 LTM 1Q’15 total credit gross and net return(2) of 2.0% and 1.7% driven by income and gains across the portfolio, with some offset by unreali
Slide 9: Real Estate
Real Estate Highlights Business Drivers Modest Economic Loss driven by lower net carried interest income U.S. Real Estate Fund I ITD Gross IRR of 18% and Net IRR of 14% as 1Q’15 LTM of March 31, 2015 Fundraising $461mm $2.1bn Commercial mortgage REIT (ARI) increased its quarterly dividend on i
Slide 10: Total AUM & Fee-Generating AUM
Total AUM & Fee-Generating AUM 1Q’15 Total AUM Rollforward(1) 1Q’15 Fee-Generating AUM Rollforward(1) ($ in millions) ($ in millions) Private Equity Credit Real Estate Total Private Equity Credit Real Estate Total (2) (2) 4Q'14 $41,299 $108,960 $ 9,538 $159,797 4Q'14 $30,285 $92,192 $6,237 $128,714
Slide 11: Carry-Eligible & Carry-Generating AUM
Carry-Eligible & Carry-Generating AUM Carry-Eligible AUM $80 billion ($ in millions) Carry-Eligible AUM (1) (1) Segment Q1’14 Q4’14 Q1’15 Private Equity $43,943 $36,376 $35,302 Currently Credit 37,026 39,013 42,207 Uninvested Generating Carry- Carry Real Estate 3,286 2,614 2,030 Eligible $34.8bn AUM
Slide 12: Capital Deployment & Dry Powder
Capital Deployment & Dry Powder Capital deployed across the platform totaled $2.2 billion for the quarter and $9.5 billion over the last twelve months. The pending investment commitments in private equity that have not yet been funded totaled $2.0 billion as of March 31, 2015. Dry Powder of $28.
Slide 13: Shareholder Distribution
Shareholder Distribution Generated $0.35 of DE per share of common and equivalent during the quarter, driven by Management Business earnings and realized carried interest Apollo declared a quarterly distribution of $0.33 per Class A share to holders of record as of May 20, 2015 which is payable
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights At March 31, 2015, Apollo had $929 million in total cash, $926 million of investments, and $483 million of net carried interest receivable for a total net value of $2.3 billion, or $5.71 per DE share outstanding. Long-term debt of $1.0 billion, includes $500 million in s
Slide 15: Carried Interest Receivable & Income (Loss) Detail
Carried Interest Receivable & Income (Loss) Detail As of March 31, 2015 For the Three Months Ended March 31, 2015 Carried Interest Unrealized Carried Realized Carried Total Carried Receivable on an Interest Income (Loss) Interest Income Interest Income (Loss) ($ in thousands) Unconsolidated Basis Pr
Slide 16: Athene Asset Management
Athene Asset Management As of March 31, 2015, AAM had $60.8 billion of total AUM in accounts owned by or related to Athene Holding. Of the total AUM, $13.5 billion or 22% of assets was either sub-advised by Apollo or invested in funds and investment vehicles managed by Apollo. At March 31, 2014,
Slide 17: GAAP Statement of Operations
GAAP Statement of Operations ($ in thousands, except per share data) 1Q'14 4Q'14 1Q'15 Revenues: Advisory and transaction fees from affiliates, net $116,065 $67,665 $8,543 Management fees from affiliates 209,791 206,933 209,207 Carried interest income from affiliates 165,544 798 59,068 Total Revenue
Slide 18: Appendix
Appendix 18
Slide 19: Summary of Combined Segments
Summary of Combined Segments Full Year ($ in thousands, except per share data and where noted) 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2013 2014 Management fees from affiliates $164,227 $169,277 $165,202 $231,996 $223,830 $228,858 $227,693 $220,643 $224,713 $730,702 $901,024 Advisory a
Slide 20: Private Equity
Private Equity Full Year ($ in thousands, except per share data and where noted) 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2013 2014 Management fees from affiliates $66,272 $65,684 $64,801 $88,076 $79,421 $82,045 $76,848 $76,755 $74,597 $284,833 $315,069 Advisory and transaction fees fro
Slide 21: Credit
Credit Full Year ($ in thousands, except per share data and where noted) 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2013 2014 Management fees from affiliates $84,364 $90,387 $87,023 $130,659 $131,629 $134,605 $139,645 $132,863 $139,452 $392,433 $538,742 Advisory and transaction fees from
Slide 22: Real Estate
Real Estate Full Year ($ in thousands, except per share data and where noted) 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2013 2014 Management fees from affiliates $13,591 $13,206 $13,378 $13,261 $12,780 $12,208 $11,200 $11,025 $10,664 $53,436 $47,213 Advisory and transaction fees from aff
Slide 23: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Distributable Earnings $280,242 $609,899 $453,409 $527,575 $438,043 $248,598 $372,223 $370,916 $146,019 Net unrealized carried interest income 512,477 (358,630) 183,574 (68,436) (197,18
Slide 24: Investment Records as of March 31, 2015
Investment Records as of March 31, 2015 Drawdown As of March 31, 2015 Total Committed Realized Unrealized (1) (1) (1) Vintage Year Invested (1) (1) Total Value Gross IRR Net IRR Capital (1) Value Value ($ in millions) Capital Private Equity: (2) (2) Fund VIII 2013 $18,377 $2,090 - $2,300 $2,300 NM N
Slide 25: Investment Records – Notes
Investment Records – Notes (1) Refer to the definitions of Total Invested Capital, Realized Value, Unrealized Value, Total Value, Gross IRR and Net IRR in the non-GAAP financial information & definitions section in this presentation. (2) Returns have not been presented as the fund commenced investin
Slide 26: Investment Records as of March 31, 2015
Investment Records as of March 31, 2015 Liquid / Performing (1) Net Return Net Asset Since For the For the Since For the Vintage Year Value as of Inception to Three Months Three Months Inception to Year Ended (1) (1) 3/31/15 3/31/15 Ended 3/31/15 Ended 3/31/14 12/31/14 12/31/14 ($ in millions) (2) (
Slide 27: Investment Records as of March 31, 2015
Investment Records as of March 31, 2015 Permanent Capital Vehicles ex AAM (1) Total Returns Since For the For the Since For the (2) Raised Gross IPO Year (3) Inception to Three Months Three Months Inception to Year Ended Capital Assets (1) (1) 3/31/15 Ended 3/31/15 Ended 3/31/14 12/31/14 12/31/14 ($
Slide 28: Share Rollforward
Share Rollforward 1Q’14 Q2’14 Q3’14 Q4’14 1Q’15 Total GAAP Weighted Average Outstanding Class A Shares – Basic 147,776,519 152,852,427 158,466,602 162,107,977 165,968,620 Non-GAAP Adjustments: Apollo Operating Group Units ("AOG" Units) 228,954,598 225,725,411 222,736,477 222,698,738 222,545,477 RSUs
Slide 29: Non-GAAP Financial Information & Definitions
Non-GAAP Financial Information & Definitions Apollo discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principals in the United States of America (“Non-GAAP”): “Economic Income” (pre
Slide 30: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d “Assets Under Management”, or “AUM”, refers to the assets we manage for the funds, partnerships and accounts to which we provide investment management services, including, without limitation, capital that such funds, partnerships and accounts hav
Slide 31: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d “Liquid/Performing” includes CLOs and other performing credit vehicles, hedge fund style credit funds, structured credit funds and SIAs. It also includes sub-advised managed accounts owned by or related to Athene. “Drawdown” refers to commitmen
Slide 32: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d Gross IRR of a private equity fund represents the cumulative investment-related cash flows in the fund itself (and not any one investor in the fund) on the basis of the actual timing of investment inflows and outflows (for unrealized investments
Slide 33: Forward Looking Statements
Forward Looking Statements In this presentation, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, LLC, together with its consolidated subsidiaries. This presentation may contain forward-looking statements that are within the meaning of Secti
Apollo Global Management — Q1 2015 Earnings Presentation on 6ix