34 slides from Apollo Global Management, Inc. (new)'s earnings presentation, Feb 3, 2016
Slide 1: Apollo Reports Fourth Quarter and Full Year 2015 Results
Apollo Global Management, LLC Reports Fourth Quarter and Full Year 2015 Results Apollo Adopts Plan to Repurchase $250 Million of Shares New York, February 3, 2016-- Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”) today reported results for the fourth
Slide 2: 2015 Schedule K-1 Distribution
2015 Schedule K-1 Distribution The 2015 schedules K-1 will be available on or about March 15, 2016 and can be accessed via www.partnerdatalink.com/Apollo. Shareholders can visit this site now to register to be notified when the 2015 schedules K-1 are available to be downloaded. Please note that the
Slide 3: Fourth Quarter and Full Year 2015 Earnings
Apollo Global Management, LLC Fourth Quarter and Full Year 2015 Earnings February 3, 2016
Slide 4: Apollo 4Q'15 and Full Year Financial Results Highlights
Apollo 4Q'15 and Full Year Financial Results Highlights ($ in millions, except per share data) 4Q’15 Per Share FY’15 Per Share GAAP & § GAAP Net Income $6.1 $0.02 $134.5 $0.61 Economic § Economic Net Income (“ENI”) $32.9 $0.08 $385.1 $0.96 Earnings § Management Business (“MB”) Economic Income (“EI”)
Slide 5: Management Business Economic Earnings Summary
Economic Earnings Summary $ in thousands, except per share data 4Q'14 3Q'15 4Q'15 FY'14 FY'15 Management Fees $220,643 $226,758 $233,149 $901,024 $911,893 Advisory and Transaction Fees from Affiliates, net(1) 67,909 9,276 (20,083) 316,082 14,186 Carried Interest Income from Affiliates 10,620 9,285 9
Slide 6: Management Distributable Earnings Summary
Distributable Earnings Summary $ in thousands, except per share data 4Q'14 3Q'15 4Q'15 FY'14 FY'15 Management Business Economic Income $171,461 $79,280 $50,577 $598,872 $313,863 Less: Non-Cash Revenues(1) Management (91,648) (842) (842) (260,513) (5,311) Business Add Back: Equity-Based Compensation
Slide 7: Private Equity
Private Equity Highlights Business Drivers ▪ Economic Loss driven by negative unrealized mark-to-market performance within the Incentive Business and the impact of a reserve(5) in the Management Business 4Q'15 FY'15 ▪ Traditional private equity fund depreciation during the quarter of 2.0%(1) was dri
Slide 8: Credit
Credit Highlights Business Drivers ▪ Economic Income driven by Management Business earnings, and 4Q'15 FY'15 complemented by Incentive Business earnings ▪ Total credit gross and net returns(2) of (1.2)% and (1.4)%, respectively, driven by negative unrealized mark-to-market losses Inflows $10.8bn $18
Slide 9: Real Estate
Real Estate Highlights Business Drivers ▪ Increase in Economic Income quarter-over-quarter driven by improved results in both the Management and Incentive Businesses 4Q'15 FY'15 ▪ Year-over-year Management Business revenue growth primarily driven by strong growth in the commercial real estate debt b
Slide 10: Total AUM & Fee-Generating AUM
Total AUM & Fee-Generating AUM 4Q'15 Total AUM Rollforward(1) 4Q'15 Fee-Generating AUM Rollforward(1) ($ in millions) ($ in millions) Private Equity Credit Real Estate Total Private Equity Credit Real Estate Total 3Q'15 $38,256 $112,781 $10,782 $161,819 3Q'15 $29,300 $94,666 $7,102 $131,068 Inflows
Slide 11: Carry-Eligible & Carry-Generating AUM
Carry-Eligible & Carry-Generating AUM Carry-Eligible AUM $82 billion Carry-Eligible AUM ($ in millions) Segment 4Q'14 3Q'15 4Q'15 Private Equity $36,376 $33,248 $32,782 Uninvested Currently Carry- Generating Credit 39,013 45,819 47,207 Eligible Carry AUM $26.9bn Real Estate 2,614 2,401 2,440 $26.3bn
Slide 12: Capital Deployment & Dry Powder
Capital Deployment & Dry Powder ▪ Capital deployed across the platform totaled $4.1 billion for the quarter and $13.1 billion for the year. The pending investment commitments in private equity that have not yet been funded totaled $1.7 billion as of December 31, 2015 ▪ Dry Powder of $26.1 billion at
Slide 13: Shareholder Distribution
Shareholder Distribution ▪ Generated $0.31 of DE per share of common and equivalent during the quarter, driven by Management Business earnings ▪ Apollo declared a quarterly distribution of $0.28 per Class A share to holders of record as of February 19, 2016, which is payable on February 29, 2016 ($
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights ▪ At December 31, 2015, Apollo had $613 million in total cash, $1.2 billion of investments, and $348 million of net carried interest receivable for a total net value of $2.2 billion, or $5.33 DE per share outstanding ▪ Long-term debt of $1.0 billion, includes $495 million in
Slide 15: Carried Interest Receivable & Income (Loss) Detail
Carried Interest Receivable & Income (Loss) Detail As of For the Three Months Ended For the Year Ended December 31, 2015 December 31, 2015 December 31, 2015 Unrealized Realized Unrealized Realized Carried Interest Total Carried Total Carried Carried Carried Carried Carried Receivable on an Interest
Slide 16: Permanent Capital Vehicles
Permanent Capital Vehicles ▪ As of December 31, 2015, Apollo had $82.7 billion of AUM across seven Permanent Capital Vehicles(1) ▪ Apollo generated $113.0 million of Management Business revenues from Permanent Capital Vehicles during the quarter, representing 51% of total Management Business revenue
Slide 17: Athene Asset Management
Athene Asset Management ▪ As of December 31, 2015, AAM had $59.5 billion of total AUM in accounts owned by or related to Athene Holding ▪ Of the total AUM, $14.6 billion, or 25%, was either sub-advised by Apollo or invested in funds and investment vehicles managed by Apollo, compared to $12.6 billio
Slide 18: GAAP Statement of Operations
GAAP Statement of Operations ($ in thousands, except per share data) 4Q'14 3Q'15 4Q'15 FY'14 FY’15(1) Revenues: Advisory and transaction fees from affiliates, net $67,665 $9,276 ($20,083) $315,587 $14,186 Management fees from affiliates 206,933 238,563 236,158 850,441 930,194 Carried interest income
Slide 19: Appendix
Appendix
Slide 20: Summary of Combined Segments
Summary of Combined Segments ($ in thousands, except per share data and where noted) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Management fees from affiliates $220,643 $224,713 $227,273 $226,758 $233,149 $901,024 $911,893 Advisory and transaction fees from affiliates, net 67,909 9,543 15,450 9,276 (
Slide 21: Private Equity
Private Equity ($ in thousands, except per share data and where noted) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Management fees from affiliates $76,755 $74,597 $74,269 $71,876 $75,094 $315,069 $295,836 Advisory and transaction fees from affiliates, net 3,502 3,841 8,913 4,736 (24,975) 58,241 (7,485
Slide 22: Credit
Credit ($ in thousands, except per share data and where noted) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Management fees from affiliates $132,863 $139,452 $140,632 $141,706 $143,451 $538,742 $565,241 Advisory and transaction fees from affiliates, net 63,504 5,352 4,420 4,141 3,333 255,186 17,246 Car
Slide 23: Real Estate
Real Estate ($ in thousands, except where noted) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Management fees from affiliates $11,025 $10,664 $12,372 $13,176 $14,604 $47,213 $50,816 Advisory and transaction fees from affiliates, net 903 350 2,117 399 1,559 2,655 4,425 Total Management Business Revenues
Slide 24: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP ($ in thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Distributable Earnings $370,916 $146,019 $201,611 $144,579 $130,612 $1,429,780 $622,821 Net unrealized carried interest loss (265,637) (58,148) (53,023) (99,228) (40,489) (830,478) (250,888) Unreal
Slide 25: Investment Records as of December 31, 2015
Investment Records as of December 31, 2015 Drawdown As of December 31, 2015 Committed Total Invested Realized Remaining Unrealized Total Vintage Year Total AUM Gross IRR(1) Net IRR(1) Capital Capital(1) Value(1) Cost(1) Value(1) Value(1) ($ in millions) Private Equity: Fund VIII 2013 $18,398 $18,377
Slide 26: Investment Records – Notes
Investment Records – Notes (1) Refer to the definitions of Total Invested Capital, Realized Value, Remaining Cost, Unrealized Value, Total Value, Gross IRR and Net IRR in the non-GAAP financial information & definitions section of this presentation. (2) Returns have not been presented as the fund co
Slide 27: Investment Records as of December 31, 2015
Investment Records as of December 31, 2015 Liquid / Performing Net Returns For the Three For the Three For the Year Ended For the Year Ended Vintage Year Total AUM Months Ended Months Ended 12/31/15 12/31/14 ($ in millions) 12/31/15 12/31/14 Credit: Hedge Funds(1) Various $7,109 (2)% — (1)% 3% (2) C
Slide 28: Investment Records – Notes
Investment Records – Notes (1) Hedge funds includes Apollo Credit Strategies Master Fund Ltd., Apollo Credit Master Fund Ltd., Apollo Credit Short Opportunities Fund and Apollo Value Strategic Fund, L.P. (2) CLO returns are calculated based on gross return on invested assets, which excludes cash. (3
Slide 29: Share Rollforward
Share Rollforward 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Total GAAP Weighted Average Outstanding Class A 162,107,977 165,968,620 170,538,381 176,271,703 180,474,991 155,349,017 173,362,651 Shares - Basic and Restricted Shares Non-GAAP Adjustments: AOG Units 222,698,738 222,545,477 221,387,378 218
Slide 30: 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 principles in the United States of America (“Non-GAAP”): ▪ “Economic Income” (pre
Slide 31: 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 or advise for the funds, partnerships and accounts to which we provide investment management or advisory services, including, without limitation, capital that such funds, partner
Slide 32: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d ▪ “Capital deployed” or “Deployment” is the aggregate amount of capital that has been invested during a given period (which may, in certain cases, include leverage) by (i) our drawdown funds (ii) SIAs that have a defined maturity date and (iii) fun
Slide 33: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d ▪ Net IRR of a real estate 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
Slide 34: 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