Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (August 2022)
37 slides from Apollo Global Management, Inc. (new)'s investor presentation, Aug 9, 2022
Slide 1: Apollo Global Management Investor Presentation
Apollo Global Management Investor Presentation 9 August
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 is a High-Growth Alternative Asset Manager with 30+ Years of Investing Expertise
Apollo is a High-Growth Alternative Asset Manager with 30+ Years of Investing Expertise YIELD HYBRID EQUITY 280+ Investment Professionals 100+ Investment Professionals 250+ Investment Professionals $376B $56B $83B AUM AUM AUM SELECT OFFERINGS • High Grade Alpha • Hybrid Value • European Principal Fi
Slide 4: Elevating and Maintaining Culture Creates the Best Home for Talent
Elevating and Maintaining Culture Creates the Best Home for Talent TOP TALENT VOTING WITH THEIR FEET +424 2,432 1,509 APOLLO 2 ATHENE New Apollo hires Enterprise 1 Satisfaction Turnover in 2021 Headcount Best Place to work for LGBTQ equality Voted one of Employee-led affinity networks: Signatory to
Slide 5: Strong Senior Leadership with Best-in-Class Corporate Governance
Strong Senior Leadership with Best-in-Class Corporate Governance FIRM LEADERSHIP BEST-IN-CLASS GOVERNANCE One Share, One Vote Structure MARC SCOTT JAMES JAMES ROWAN KLEINMAN ZELTER BELARDI CEO Co-President Co-President CEO, Athene Enhanced Corporate Governance MANAGEMENT COMMITTEE with Two Thirds In
Slide 6: Apollo is Differentiated by Design
Apollo is Differentiated by Design 1 2 3 4 Largest Addressable Purchase Investment Expertise Full Market Among Price Across Risk-Reward Alignment Alternative Peers Matters Spectrum Traditional Alternatives Investment Philosophy Provide Clients Capital Efficient Model and Fixed Income Focused on Deli
Slide 7: Alts Are No Longer "Alternative"
1 Alts Are No Longer “Alternative” 60/40 EQUITY/FIXED INCOME MODEL PORTFOLIO IS A THING OF THE PAST AND WE EXPECT INVESTOR ALLOCATIONS TO CONTINUE TO EVOLVE OLD WORLD PORTFOLIO NEW WORLD PORTFOLIO MANAGEMENT MANAGEMENT Scarcity of ‘Alpha’ in Public Markets Driving Larger Fixed Alternatives Allocatio
Slide 8: Apollo Has the Largest Addressable Market Among Alternative Peers
Apollo Has the Largest Addressable Market Among Alternative Peers 1 TRADITIONAL ALTERNATIVES “FIXED INCOME REPLACEMENT” OPPORTUNITY Large Market Growing Quickly EVEN BIGGER MARKET PRIVATE EQUITY 40% ~$40T NATURAL RESOURCES HEDGE FUNDS 2 2% 33% ~$13T 1 INFRASTRUCTURE REAL ESTATE 6% 10% PRIVATE DEBT 9
Slide 9: Disciplined Investment Philosophy Where Purchase Price Matters
2 Disciplined Investment Philosophy Where Purchase Price Matters ATTRACTIVE RISK- PLATFORM BENEFITS ADJUSTED RETURNS PE FUND IX EQUITY • COLLABORATIVE CULTURE Leading Global Asset Manager with ~5x discount Tight-Knit Culture Across All Three 11.5x to market Investing Strategies • INSTITUTIONAL EXPER
Slide 10: Generating Excess Return Per Unit of Risk Across Risk-Reward Spectrum
3 Generating Excess Return Per Unit of Risk Across Risk-Reward Spectrum WE ARE DELIVERING ON OUR PROMISE OF ALTERNATIVES YIELD HYBRID EQUITY HYBRID VALUE9 FLAGSHIP PE10 INFRA EQUITY7 RETURN Gross IRR: 26% Gross IRR: 39% Gross IRR: 25% Net IRR: 21% Net IRR: 24% ACCORD SERIES4 Net IRR: 20% Strategy AU
Slide 11: Apollo's Flagship Products Have Meaningfully Outperformed
3 Apollo’s Flagship Products Have Meaningfully Outperformed YIELD HYBRID EQUITY Gross 39% Gross Gross 22% 26% Net Net 4.3% Net Net 17% 21% 20% 24% Net 4.0% 12% Net 14% 1 1 4 5 PEERS ATHENE BENCHMARK 2 APOLLO 3 BENCHMARK APOLLO BENCHMARK 6 APOLLO 7 ATHENE ACCORD SERIES HYBRID VALUE FLAGSHIP PE $225B
Slide 12: Full Alignment Expands Growth Opportunities
4 Full Alignment Expands Growth Opportunities APPROACHING THE MARKET AS AN ALIGNED INVESTOR RESONATES WITH THI RD PARTY CLIENTS FUND PLATFORMS AND STRATEGIC CAPITAL INVESTMENTS CO-INVEST PARTNERSHIPS SOLUTIONS Attractive Offerings Diversified Exposure Bespoke Portfolio Access to Syndication Across A
Slide 13: Alignment Unleashes Strategic Growth Capital Across the Business
4 Alignment Unleashes Strategic Growth Capital Across the Business CAPITAL EFFICIENT GROWTH PARADIGM SUPPORTED BY VARIOUS SOURCES O F CAPITAL STRATEGIC EXAMPLES OF CAPITAL OBJECTIVE INVESTMENTS PROVIDER Origination Platforms Principal Investing Asia / Expansion Fintech Principal Investing Note: Cert
Slide 14: Three Strategic Growth Drivers
Three Strategic Growth Drivers 1 ORIGINATION 2 RETAIL 3 CAPITAL SOLUTIONS $150B $50B $500M 3-5 YEAR ANNUAL TARGET CUMULATIVE ORGANIC CAPITAL OF ANNUAL FEE RELATED RAISE TARGET (2022-2026) REVENUE TARGET BY 2026 Note: No guarantee that targets will be achieved.
Slide 15: An Evolved Multi-Pronged Approach to Origination
1 An Evolved Multi-Pronged Approach to Origination $150B+ $150 The Apollo “Edge” ORIGINATION >3x VOLUME ~$100 $100B TRADITIONAL LARGE CAP ORIGINATION ORIGINATION ORIGINATION & HIGH- PLATFORMS $49 STRATEGIES GRADE ALPHA $49B FY 2020 2Q'22 LTM 3-5 YEAR TARGET Target 100 bps to 200 bps Outperformance t
Slide 16: Origination Focus is Purposefully Designed to Maximize Profitability
1 Origination Focus is Purposefully Designed to Maximize Profitability “FUTURE-PROOFING”: OUR PROPRIETARY ORIGINATED ASSETS HAVE MULTIP LE HOMES ORIGINATED ASSET Third-Party • Excess return for institutional 1 and global wealth clients Commingled • Established capital base DRIVES FRE GROWTH or Manag
Slide 17: Retail Universe Offers Tremendous Growth Potential
2 Retail Universe Offers Tremendous Growth Potential “FUTURE-PROOFING”: REDEFINING AND EXPANDING OUR MARKETS INSTITUTIONAL + PRIVATE MARKETS ALLOCATIONS BY INVESTOR TYPE HIGH NET WORTH (HNW) & MASS-AFFLUENT (2020-2025) $102T 28-30% 2020 PM Allocations 2025 PM Allocations (Institutional) 20-22% 16-18
Slide 18: Scaling Global Wealth is a Strategic Priority
2 Scaling Global Wealth is a Strategic Priority “FUTURE-PROOFING”: DEVELOPING RETAIL PRODUCTS WHILE INVESTING IN DISTRIBUTION AND TECHNOLOGY-BASED SOLUTIONS Making early progress via strategic Global wealth organic capital Global wealth expected investments in platform technology raise target over n
Slide 19: Global Wealth Focused on Scaling Existing Products While Developing Next Generation Solutions
Global Wealth Focused on Scaling Existing Products While Developing 2 Next Generation Solutions EXISTING GENERATION DEVELOPING NEXT GEN SOLUTIONS OF CAPABILITIES WHILE RE-IMAGINING THE CLIENT EXPERIENCE PRODUCTS DISTRIBUTION Next Gen Tax Advantaged Alt & Insurance TECHNOLOGY PARTNERSHIPS Products Co
Slide 20: New Product: Apollo Aligned Alternatives ("AAA")
New Product: Apollo Aligned Alternatives (“AAA”) 2 A CORE EQUITY REPLACEMENT SOLUTION FOR INVESTMENT PORTFOLIOS $10B+ $5B+ TBD From Apollo1 Institutional Commitment2 Future Investors RISK-ADJUSTED DIVERSIFICATION UNIQUE PRODUCT STRONG RETURNS FEATURES ALIGNMENT Target return profile aligned Exposure
Slide 21: Capital Solutions: Apollo is a Perfect Home for this Business
3 Capital Solutions: Apollo is a Perfect Home for this Business “FUTURE-PROOFING”: SYNDICATION SIGNIFICANTLY EXPANDS OUR REACH A ND DRIVES VALUE FOR ALL STAKEHOLDERS EXPANDED TAM ORIGINATION CAPITAL MARKETS SYNDICATION Expands addressable Directly originate more Competitive pricing, Expand our inves
Slide 22: Case Study: High Grade Alpha Loan to Softbank Vision Fund II
Case Study: High Grade Alpha Loan to Softbank Vision Fund II 3 SHOWCASING OUR ALIGNMENT AS PRINCIPAL Unlocked liquidity Backed by Earned attractive Allocated $1.7B Investment grade for GP through portfolio of 150+ economics for Athene & credit rating senior secured underlying (~300bps excess Athora,
Slide 23: Putting It All Together… Our Financial Targets and Differentiation
Putting It All Together… Our Financial Targets and Differentiation
Slide 24: We Have a Compelling 5-Year Base Case Growth Plan
We Have a Compelling 5-Year Base Case Growth Plan… AUM GROWTH IS THE REWARD FOR DELIVERING ALPHA TO OUR CLIENTS, NO T THE GOAL IN ITSELF YIELD + HYBRID + EQUITY = TOTAL ASSETS UNDER MANAGEMENT ~$1T ~2x EQUITY/ HYBRID ~$750B ~$125B ~$100B ~1.5x ~2x $498B ~2x $85B $360B $53B YIELD 2021 2026E 2021 2026
Slide 25: …And Expect to Double FRE and Total Earnings
…And Expect to Double FRE and Total Earnings Before Factoring $5B of Growth Capital and Upside from Embedded Options DURABLE AND GROWING EARNINGS STREAMS WITH ~90% OF PRE -TAX EARNINGS GENERATED FROM RECURRING FRE AND SRE FEE & SPREAD PRINCIPAL FEE RELATED EARNINGS (FRE) + SPREAD RELATED EARNINGS (S
Slide 26: And Massive Capital Generation to Support Our Growth and Return to Shareholders
And Massive Capital Generation to Support Our Growth and Return to Shareholders STRATEGIC USES FOR TARGETED CAPITAL GENERATION AT THE HOLDING CO MPANY ILLUSTRATIVE CAPITAL USAGE… ~$5 ~$15 $1.60 Base Dividend Growth BILLION Engine BILLION ~$5 Annual Dividend Growth Share Capital Generation Repurchase
Slide 27: Additionally, We Are Excited About Numerous Embedded Growth Options
Additionally, We Are Excited About Numerous Embedded Growth Options QUIETLY MAKING PROGRESS ON ALL FRONTS DEMOCRATIZATION FINTECH ASIA OF FINANCE Serving as a validator, Focusing on retirement services Meaningful opportunity to exceed an enabler, a partner, to access the Asian market, base plan fund
Slide 28: Apollo's Integrated Sustainability Approach
Apollo’s Integrated Sustainability Approach SUSTAINABILITY ESG Sustainable Impact / AIM Citizenship / Expanding Investing Apollo Opportunity Opportunity Platform Foundation Apollo’s integrated Sustainability approach leverages our strategic platforms, helps to mitigate risk, and unearths new opportu
Slide 29: Leveraging the Entire Apollo Ecosystem to Lead Responsibly
Leveraging the Entire Apollo Ecosystem to Lead Responsibly DEEP COMMITMENT TO EXPANDING OPPORTUNITY IN OUR WORKPLACE, MARKE TPLACE AND COMMUNITY WORKPLACE MARKETPLACE COMMUNITY Dedicated Diversity, Equity & Apollo actively engages with the Apollo strives to be a responsible Inclusion resources and p
Slide 30: Apollo Aims to Lead the Charge in Energy Transition and Sustainable Investing
Apollo Aims to Lead the Charge in Energy Transition and Sustainable Investing INDUSTRY EXPERTISE, STRUCTURING CAPABILITY, AND CAPITAL FLEXIBIL ITY TO HELP SERVE THIS MARKET Substantial Apollo-managed funds Our sustainable investing Integrated ecosystem across investment of have deployed approximatel
Slide 31: Appendix
Appendix
Slide 32: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in millions) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 YTD'21 YTD'22 GAAP Net income (loss) attributable to Apollo Global Management, Inc.Common Stockholders $649 $249 $234 $(870) $(2,051) $1,319 $(2,921) Preferred dividends 9 9 10 — — 18 — Net income (lo
Slide 33: 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”): • “Adjusted Segment Inco
Slide 34: Non-GAAP Financial Information & Definitions - cont'd
Non-GAAP Financial Information & Definitions - cont'd • “Assets Under Management”, or “AUM”, refers to the assets of the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, including, without limitation, capital tha
Slide 35: Non-GAAP Financial Information & Definitions - cont'd
Non-GAAP Financial Information & Definitions - cont'd • “Gross IRR” of a real estate equity, hybrid real estate or infrastructure funds 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 cash inflows and outflo
Slide 36: 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 37: Important Information
Important Information Performance Information Past performance is not necessarily indicative of future results and there can be no assurance that Apollo, Athene or any Apollo Fund or strategy will achieve comparable results, or that any investments made by Apollo in the future will be profitable. Ac
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