Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Q3 2024 Earnings Presentation
41 slides from Apollo Global Management, Inc. (new)'s earnings presentation, Nov 5, 2024
Slide 1: Apollo Global Management Investor Presentation
Apollo Global Management Investor Presentation November 2024
Slide 2: Forward Looking Statements & Other Important Disclosures
Forward Looking Statements & Other Important Disclosures In this presentation, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This presentation may contain forward-looking
Slide 3: Apollo Today: Integrated Asset Management and Retirement Services Capabilities
Apollo Today: Integrated Asset Management and Retirement Services Capabilities GLOBAL MANAGEMENT $80B+ 5,000+ ASSET Market Employees RETIREMENT M A N AG E M E N T Capitalization1 Globally SERVICES A2 / A / A Rated by Moody’s, Fitch, S&P ASSET MANAGEMENT $733B A2 / A / A ~$29B A1 / A+ / A+ / A+ Asset
Slide 4: Apollo in 2024: A Robust, Sustainable Business with Growth Momentum
Apollo in 2024: A Robust, Sustainable Business with Growth Momentum $ 733B $ 248B $ 194B $ 151B Record Outsized Deployment Total Origination Total Inflows AUM LTM 3Q’24 LTM 3Q’24 LTM 3Q’24 $ 531M Record Fee Related Earnings 39% / 24% Gross / Net IRR Top Quartile 0.1% Average Annualized Default Rate2
Slide 5: Expanding Opportunity While Maintaining Our Culture
Expanding Opportunity While Maintaining Our Culture $598B 3,500+ 8K+ Largest Alternative Global Investment Hours volunteered by Credit Manager1 Relationships employees in 2023 >50% of Credit AUM is IG 250+ 30+ Significant Player People Dedicated Senior Leaders with in Alternative to Insurance 29 Ave
Slide 6: The Apollo Ethos: In All Markets and At All Times
The Apollo Ethos: In All Markets and At All Times… 1 2 3 Purchase Price Excess Return Unparalleled Matters Per Unit of Risk Alignment Allocating capital to the best Generating excess return per Committing side by side with risk/reward in any market unit of risk across the risk- investors as one of t
Slide 7: Our Industry and Investors Benefited From 20+ Years of Tailwinds
Our Industry and Investors Benefited From 20+ Years of Tailwinds Financial Crisis & De-Banking Money Printing Fed Assets1 Lehman +$6T Dodd-Frank Basel III 2007 2021 4 Search for Excess Return Globalization US State Pension Net Funded Status2 DHL Global Connectedness Index3 2007 2021 140 130 120 110
Slide 8: In 2024 … the tailwinds that got us here no longer exist
In 2024 … … the tailwinds that got us here no longer exist 8
Slide 9: Our Industry is Surrounded by Massive Market Opportunities
Our Industry is Surrounded by Massive Market Opportunities ~$45T ~$150T $75T+ RETIREMENT 2 INDIVIDUALS 3 ~$50T GLOBAL INDUSTRIAL RE-THINKING RENAISSANCE 1 PUBLIC VS. PRIVATE 4 Today 1. TAMs reflect the views and opinions of Apollo Analysts based on expected aggregate investment/capex demands over th
Slide 10: Global Industrial Renaissance: Unprecedented Need for Secular CapEx
Global Industrial Renaissance: Unprecedented Need for Secular CapEx Energy Power & Digital Leveraged Finance Sponsor Transition Utilities Infrastructure Overhang Overhang ~$30-50T+ ~$30T ~$15-20T+ $3T+ $3T+ 1 1 1 2 3 P R IM A R ILY N ON - P R IM A R ILY IN V E S T MEN T G R A D E IN V E S T MENT G R
Slide 11: Tremendous Need for Retirement Products, with New Solutions on the Horizon
Tremendous Need for Retirement Products, with New Solutions on the Horizon ~$45 Defined Contribution / 401(k) New Guaranteed Markets Lifetime Income Tax-Advantaged TRILLION 1 Products Structured Global Retirement Settlements Market Stable Value Adjacent RILA3 Markets 1+ BILLION People Worldwide will
Slide 12: Massive Opportunity to Serve Individual Investors
Massive Opportunity to Serve Individual Investors ~50% Private Family Office INDUSTRY 150T DIRECTION ~$ High Net OF TRAVEL TA M ~2% Private Worth ~1% Private Mass Affluent Sources: Bain Global Private Equity Report 2023, Altrata World Ultra Wealth Report 2024, Fidelity. 12
Slide 13: Re-Thinking Public vs. Private
Re-Thinking Public vs. Private NEXT TARGET FUTURE TARGET FIXED INCOME EQUITY REPLACEMENT REPLACEMENT Alternatives Fixed Income Equities Enabled by… Apollo Ecosystem Standardized Credit Ratings 13
Slide 14: Asset Allocation Expected to Shift: We Are in the Replacement Business
Asset Allocation Expected to Shift: We Are in the Replacement Business • IG Private Corporate Debt Fixed Income Fixed Income • IG Private Asset Based Alpha Financing Alpha Fixed • Private Credit Income Fixed Income Fixed Income Beta Beta • AAA (Potential S&P 500 Replacement) Equity Alpha • Hybrid Eq
Slide 15: Full Alignment: We Share the Same Outcome With Investors
Full Alignment: We Share the Same Outcome With Investors SAME CREDIT Meaningful ORIGINATION commitments 50%+ of AUM1 alongside SIDECAR FORMAT fund investors in addition to CO-INVESTMENTS GP co-invests 3rd-Party Investors CAPITAL SOLUTIONS Employee Co-Investment 1. AUM as of September 30, 2024. 15
Slide 16: Our Success Also Relies on How We Build, Invest and Partner Strategically
Our Success Also Relies on How We Build, Invest and Partner Strategically Funds APOLLO'S + Co-Investments CO M P RE HE N S IVE + Directs PA RT N E RS HIP S + Strategic Partnerships + Knowledge Sharing Traditional Model Vanilla fund investments Passive LP relationships Holistic Approach LP-centric in
Slide 17: Key Growth Drivers
Key Growth Drivers 17
Slide 18: Three Strategic Growth Pillars
We Are Capitalizing on These Trends Through Three Strategic Growth Pillars Origination Global Wealth Capital Solutions $275B+ $150B+ ~$1B Annual target by 2029 Cumulative organic capital Annual fee related revenue raise target (2025-2029) target by 2029 Note: Reflects targets previously communicated
Slide 19: Origination Generates a Recurring Supply of Attractive Assets
Origination Generates a Recurring Supply of Attractive Assets Total Origination Volume Differentiated, Diversified Origination Platform Ecosystem Origination platforms are best-in-class businesses, teams and technologies that originate assets $275B+ with excess risk-reward on a sustainable and recur
Slide 20: Multi-Pronged Approach to the Global Wealth Opportunity
Multi-Pronged Approach to the Global Wealth Opportunity Well-Rounded Product Suite Deepening Footprint Global Wealth Capital Raise2 Qualified Purchaser Products1 Global Wealth Headcount Apollo Aligned Alternatives ~$30B Equity Secondaries 300+ Infrastructure Opportunities III Tax-Wrapped Platform 14
Slide 21: Capital Solutions Drives Value for All Stakeholders
Capital Solutions Drives Value for All Stakeholders Benefits of a Capital Markets Ecosystem Positioned For Continued Strong Growth Capital solutions fees and other, net Expanded TAM Origination ~$1B Expands addressable channel by ~10x, Directly originate more private Large incremental relationships
Slide 22: Putting It All Together… Our Financial Targets
Putting It All Together… Our Financial Targets 22
Slide 23: Attractive Earnings Growth Trajectory
Attractive Earnings Growth Trajectory Adjusted Net Income Fee Related Earnings Spread Related Earnings Per Share ~$5.0B ~$5.0B ~$15.00 >2x $3.1B $6.98 $1.9B LTM 2Q'24 2029E LTM 2Q'24 2029E LTM 2Q'24 2029E Target Target Target 1 20% AVG GROWTH 10% AVG GROWTH 15%+ AVG GROWTH Note: Adjusted Net Income
Slide 24: Key Building Blocks of FRE Growth
Key Building Blocks of FRE Growth Origination Organic Inflows1 Capital Solutions Fee Related Earnings Volume Retirement Fees ~$1B ~$5.0B Asset Management $275B+ $150B+ $125B $611M ~$85B $164B $70 $1.9B ~$75B $55 LTM 2Q'24 2029E LTM 2Q'24 2025E-2029E LTM 2Q'24 2029E LTM 2Q'24 2029E Target Avg Annual
Slide 25: Growth of the Broader Athene Ecosystem Expected to Outpace SRE
Growth of the Broader Athene Ecosystem Expected to Outpace SRE Pre-ADIP Post-ADIP Outlook Avg Annual Growth Avg Annual Growth Avg Annual Growth (2014-2019) (2020-2024E) (2025E-2029E) 23% 22% 16% ~15% 14% ~10% Gross Invested Assets 1 SRE Gross Invested Assets 1 SRE Gross Invested Assets 1 SRE Note: F
Slide 26: Targeting Capital Generation to Support Our Growth and Return to Shareholders
Targeting Capital Generation to Support Our Growth and Return to Shareholders Diverse Sources of Capital (2025E – 2029E) Uses of Capital (2025E – 2029E) After-Tax FRE Base Dividend Growth $8B (~10% AVG GROWTH OR ~$7B NET OF EMPLOYEE STOCK IMMUNIZATION 50% OF FRE GROWTH) Athene Dividend $750M PER YEA
Slide 27: Our Purpose
Our Purpose 27
Slide 28: We are Investing in Tomorrow, Today
We are Investing in Tomorrow, Today Empowering Building & Driving a Retirees Financing More Stronger Sustainable Businesses Future We GET to do this 28
Slide 29: We Educate Investors with Comprehensive, Credible, and Authoritative Content
We Educate Investors with Comprehensive, Credible, and Authoritative Content WHITE PAPERS THE VIEW FROM APOLLO.COM & & ARTICLES APOLLO PODCAST APOLLO ACADEMY CLICK HERE TO REGISTER CLICK HERE TO LISTEN CLICK HERE TO SIGN UP VIDEOS Represents the views and opinions of Apollo Analysts. Subject to chan
Slide 30: Best-in-Class Corporate Governance with Strong Senior Leadership
Best-in-Class Corporate Governance with Strong Senior Leadership Best-in-Class Governance Firm Leadership Single Class of Common Stock with One Share One Vote Marc Rowan Scott Kleinman James Zelter James Belardi CEO Co-President Co-President CEO, Athene Enhanced Corporate Governance Apollo Senior Le
Slide 31: Can't Overstate the Importance of Culture
Our Values and Our Culture are the North Star Can’t Overstate the Importance of Culture “Culture eats strategy for breakfast.” – PETER DRUCKER Click below to hear directly from our team on what defines Apollo: Outperform Challenge Champion Lead Drive Expectations Convention Opportunity Responsibly C
Slide 32: Appendix
Appendix 32
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in millions) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 YTD'23 YTD'24 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common $660 $2,732 $1,403 $828 $787 $2,269 $3,018 Stockholders Preferred dividends 22 24 24 25 24 22 73 Net income (
Slide 34: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Years Ended December 31 ($ in millions) 2022 2023 LTM 2Q’24 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $(1,961) $5,001 $5,623 Preferred dividends — 46 95 Net income (loss) attributable to
Slide 35: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Share Reconciliation September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Total GAAP Common Stock Outstanding 567,565,120 567,762,932 569,003,922 569,535,344 Non-GAAP Adjustments: Mandatory Convertible Preferred Stock1 15
Slide 36: Non-GAAP Financial Information & Definitions
Non-GAAP Financial Information & Definitions • “Segment Income”, or “SI”, is the key performance measure used by management in evaluating the performance of • “Spread Related Earnings, Excluding Notable Items” represents SRE with an adjustment to exclude notable items. the asset management, retireme
Slide 37: Non-GAAP Financial Information & Definitions (Continued)
Non-GAAP Financial Information & Definitions (Continued) • "Adjusted Net Income, Excluding Notable Items" represents ANI with an adjustment related to our Retirement Apollo’s AUM measure includes Assets Under Management for which Apollo charges either nominal or zero fees. Services segment to exclud
Slide 38: Non-GAAP Financial Information & Definitions (Continued)
Non-GAAP Financial Information & Definitions (Continued) • "Gross IRR" of accord series, ADIP funds and the European principal finance funds represents the annualized • “Realized Value” refers to all cash investment proceeds received by the relevant Apollo fund, including interest and return of a fu
Slide 39: Non-GAAP Financial Information & Definitions (Continued)
Non-GAAP Financial Information & Definitions (Continued) • “Net Invested Assets” represent the investments that directly back Athene's net reserve liabilities as well as surplus assets. Net invested assets is used in the computation of net investment earned rate, which is used to analyze the profita
Slide 40: Important Information
Important Information Estimates and Assumptions This presentation includes certain unaudited financial and business projections and goals on Apollo’s future outlook (the “Estimates”). The Estimates reflect the internal financial model that Apollo uses in connection with its strategic planning. The E
Slide 41: Important Information
Important Information Performance Information other factors (such as number of investments, recycling or reinvestment of distributions, and types of assets). It may not be possible to directly invest in one or more of these indices and the holdings of any strategy may Past performance is not necessa
Apollo Global Management, Inc. (New) — Q3 2024 Earnings Presentation on 6ix