31 slides from Apollo Global Management, Inc. (new)'s earnings presentation, May 7, 2015
Slide 1: First Quarter 2015 Earnings
Apollo Global Management, LLC First Quarter 2015 Earnings May 7, 2015 Exhibit 99.2
Slide 2: Apollo 1Q'15 Financial Results Highlights
Apollo 1Q’15 Financial Results Highlights 1 GAAP & Economic Earnings Distributable Earnings Assets Under Management Business Drivers Fundraising: $4.9 billion of gross inflows ($20.5 billion LTM) Deployment: $2.2 billion invested ($9.5 billion LTM) across the platform Realizations: $1.4 billio
Slide 3: Economic Earnings Summary
Economic Earnings Summary 2 $ in thousands, except per share data 1Q'14 4Q'14 1Q'15 Management Fees $223,830 $220,643 $224,713 Advisory and Transaction Fees from Affiliates, net (1) 116,065 67,909 9,543 Carried Interest Income from Affiliates 8,464 10,620 10,774 Management Business Revenues 348,359
Slide 4: Distributable Earnings Summary
Distributable Earnings Summary 3 $ in thousands except per share data 1Q'14 4Q'14 1Q'15 Management Business Economic Income $154,050 $171,461 $91,559 Less: Non-Cash Revenues (1) (59,093) (91,648) (2,784) Add Back: Equity-Based Compensation 58,137 19,149 15,831 Add Back: Depreciation & Amortization 2
Slide 5: Highlights: Private Equity
Highlights Business Drivers Financial Results Summary Key Stats Private Equity 4 Economic Income up 48% quarter-over-quarter, driven by rising net carried interest income offsetting a lower contribution from the MB Traditional Private Equity fund appreciation(1) during the quarter of 2.3% was dr
Slide 6: Highlights: Credit
Highlights Business Drivers Financial Results Summary Key Stats Credit 5 Economic Income up 10% quarter-over-quarter when excluding the $59 million non-cash Athene monitoring fee in 4Q’14 1Q’15 total credit gross and net return(2) of 2.0% and 1.7% driven by income and gains across the portfolio,
Slide 7: Highlights: Real Estate
Highlights Business Drivers Financial Results Summary Key Stats Real Estate 6 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 of March 31, 2015 Commercial mortgage REIT (ARI) increased its quarterly dividend on
Slide 8: Total AUM & Fee-Generating AUM
f Total AUM & Fee-Generating AUM 7 1Q’15 Total AUM Rollforward(1) LTM Total AUM Rollforward(1) 1Q’15 Fee-Generating AUM Rollforward(1) LTM Fee-Generating AUM Rollforward(1) Private Equity Credit Real Estate Total 1Q'14(2) $48,336 $101,941 $9,049 $159,326 Inflows 3,319 15,069 2,074 20,462 Outflows(3)
Slide 9: Carry-Eligible & Carry-Generating AUM
Carry-Eligible & Carry-Generating AUM 8 Carry-Eligible AUM Carry-Generating AUM Q1'15 Carry-Generating to Carry-Eligible AUM Reconciliation Segment Q1’14 (1) Q4’14 (1) Q1’15 Private Equity $43,943 $36,376 $35,302 Credit 37,026 39,013 42,207 Real Estate 3,286 2,614 2,030 Total $84,255 $78,003 $79,539
Slide 10: Capital Deployment & Dry Powder
Drawdown $8.0 Permanent Capital Vehicles ex AAM $0.6 Fund VIII $15.8 PE Other $3.4 $0.6 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
Slide 11: 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 12: 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 $500 million in s
Slide 13: Carried Interest Receivable & Income (Loss) Detail
Carried Interest Receivable & Income (Loss) Detail 12 Note: The above table presents an analysis of Apollo's (i) carried interest receivable on an unconsolidated basis and (ii) realized and unrealized carried interest income (loss) for Apollo's combined segments. As of March 31, 2015 ($ in thousands
Slide 14: Athene Asset Management
$2 $16 $60 $61 8% 20% 32% 22% 0% 5% 10% 15% 20% 25% 30% 35% $0 $10 $20 $30 $40 $50 $60 $70 2010 2012 2014 3/31/15 % S u b - A d v i s e d A A M A U M ( $ i n b i l l i o n s ) AAM AUM Sub-Advised by Apollo Note: On October 2, 2013, Athene Holding closed its acquisition of the U.S. annuity operations
Slide 15: GAAP Statement of Operations
GAAP Statement of Operations 14 ($ in thousands, except per share data) 1Q'14 4Q'14 1Q'15 Revenues: Advisory and transaction fees from affiliates, net $116,065 $67,665 $8,543 Management fees from affiliates 209,791 206,933 209,207 Carried interest income from affiliates 165,544 798 59,068 Total Reve
Slide 16: Appendix
Appendix 15
Slide 17: Summary of Combined Segments
Summary of Combined Segments 16 ($ 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 $901,024 Advisory and tran
Slide 18: Private Equity
Private Equity 17 ($ 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 $315,069 Advisory and transaction fees from affil
Slide 19: Credit
Credit 18 ($ 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 $538,742 Advisory and transaction fees from affilia
Slide 20: Real Estate
Real Estate 19 ($ 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 $47,213 Advisory and transaction fees from affiliates
Slide 21: Reconciliation of Non-GAAP Measures to GAAP
Reconciliation of Non-GAAP Measures to GAAP 20 ($ 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 $146,019 Net unrealized carried interest income 512,477 (358,630) 183,574 (68,436) (197
Slide 22: Investment Records
($ in millions) Vintage Year Committed Capital Total Invested Capital (1) Realized Value(1) Unrealized Value (1) Total Value(1) Gross IRR (1) Net IRR (1) Private Equity: Fund VIII 2013 $18,377 $2,090 - $2,300 $2,300 NM (2) NM (2) Fund VII 2008 14,677 15,243 $26,085 6,536 32,621 37% 28% Fund VI 2006
Slide 23: Investment Records – Notes
Investment Records – Notes 22 (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 inves
Slide 24: Investment Records: Liquid / Performing
Investment Records as of March 31, 2015 Liquid / Performing 23 Note: The above table summarizes the investment record for significant funds in the liquid/performing category within Apollo's credit segment as defined in the non-GAAP financial information & definitions section of this presentation. Th
Slide 25: Investment Records: Permanent Capital Vehicles ex AAM
Investment Records as of March 31, 2015 Permanent Capital Vehicles ex AAM 24 (1) Total returns are based on the change in closing trading prices during the respective periods presented taking into account dividends and distributions, if any, as if they were reinvested without regard to commission. I
Slide 26: Share Rollforward
Share Rollforward 25 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 R
Slide 27: Non-GAAP Financial Information & Definitions
Non-GAAP Financial Information & Definitions 26 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” (
Slide 28: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d 27 “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
Slide 29: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d 28 “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 commit
Slide 30: Non-GAAP Financial Information & Definitions Cont'd
Non-GAAP Financial Information & Definitions Cont’d 29 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 investmen
Slide 31: Forward Looking Statements
Forward Looking Statements 30 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 Se