Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (November 2022)
38 slides from Apollo Global Management, Inc. (new)'s investor presentation, November 2022
Slide 1: Apollo Global Management Investor Presentation
Apollo Global Management Investor Presentation November 2022
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 $373B AUM $57B AUM $94B AUM 300+ investment professionals 100+ investment professionals 280+ investment professionals Select Offerings High Grade Alpha Accord/Accord+ European Principal Financ
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 New Apollo Hires in 2022 Enterprise Headcount +375 2,528 1 2 Satisfaction Turnover Best Place to work for LGBTQ equality 1,602 Voted one of Employee-led affinity networks: Signatory to the “America’s
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 1 Share 1 Vote Structure Marc Rowan Scott Kleinman James Zelter James Belardi CEO Co-President Co-President CEO, Athene Management Committee Enhanced Corporate Governance with Two Thirds Indepen
Slide 6: Apollo is Differentiated by Design
Apollo is Differentiated by Design 1 2 3 4 Largest Addressable Investment Expertise Full Purchase Market Among Across Risk-Reward Price Matters Alignment Alternative Peers Spectrum Traditional Alternatives Investment Philosophy Focused Seek to Provide Excess Return Capital Efficient Model and Fixed
Slide 7: Alts are No Longer Alternative
Alts are No Longer “Alternative” 1 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 ~20-30% 40% Alternatives Fixed Income ~40% Equity 60% Equity ~30% Fixed Income Sc
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 9% Private Debt ~$40T 10% Real Estate 2 ~$13T 1 1 40% Private Equity 33% Hedge Funds 2% Natural Resources 6% Infrastruct
Slide 9: Disciplined Investment Philosophy Where Purchase Price Matters
Disciplined Investment Philosophy 2 Where Purchase Price Matters Platform Benefits Attractive Risk-Adjusted Returns Collaborative Culture PE Fund IX Leading global alternative ~5x discount asset manager with tight-knit 11.5x to market Hybrid culture across three investing strategies Yield 6.2x Insti
Slide 10: Generating Excess Return Per Unit of Risk Across Risk-Reward Spectrum
Generating Excess Return Per Unit of Risk Across Risk-Reward Spectrum 3 We are delivering on our promise of alternatives Yield YIELD Hybrid Equity Flagship PE10 Gross IRR: 39% Return Infra Equity7 Hybrid Value9 Accord Series4 Gross IRR: 25% Gross IRR: 25% Net IRR: 24% Gross IRR: 22% Net IRR: 20% Net
Slide 11: Apollo's Flagship Products Have Meaningfully Outperformed
Apollo’s Flagship Products Have Meaningfully Outperformed 3 Yield Yield Hybrid Equity Gross Gross 39% 22% Gross Net Net 25% 4.3% 17% Net 20% Net Net 19% 24% 13% Net 4.0% 14% Peers 1 Athene 1 Benchmark 2 Apollo 3 Benchmark 4 Apollo 5 Benchmark 6 Apollo 7 ATHENE ACCORD SERIES HYBRID VALUE FLAGSHIP PE
Slide 12: Full Alignment Expands Growth Opportunities
Full Alignment Expands Growth Opportunities 4 Approaching the market as an aligned investor resonates with third party clients Fund Platforms Strategic Capital Platforms and Co-invest Investments and Co-invest Partnerships Solutions Attractive offerings Diversified exposure to Bespoke portfolio Acce
Slide 13: Alignment Unleashes Strategic Growth Capital Across the Business
Alignment Unleashes Strategic Growth Capital Across the Business 4 Capital efficient growth paradigm supported by various sources of capital Strategic Objective Examples Of Investments Capital Provider Origination Platforms Principal Investing Asia Expansion Principal Investing FinTech Note: Certain
Slide 14: Three Strategic Growth Drivers
Three Strategic Growth Drivers Origination Retail Capital Solutions $150B $50B $500M Annual target in 3-5 years Cumulative organic capital Annual fee related revenue raise target (2022-2026) target by 2026 Note: Reflects targets previously communicated at Apollo’s Investor Day in October 2021. No gu
Slide 15: An Evolved Multi-Pronged Approach to Origination
An Evolved Multi-Pronged Approach to Origination The Apollo “Edge” Total Origination Volume Traditional Large Cap Origination Origination >3x $150B+ $150 Origination Strategies Platforms & High-Grade Alpha $101B ~$101 Target 100 to 200 basis points of $49B Outperformance to Equivalent $49 Rated Publ
Slide 16: Origination Focus is Purposefully Designed to Maximize Profitability
Origination Focus is Purposefully Designed to Maximize Profitability “Future-Proofing”: our proprietary originated assets have multiple homes ORIGINATED ASSET 1 Third-Party • Excess return for institutional Commingled and global wealth clients Drives FRE or Managed • Established capital base Growth
Slide 17: Retail Universe Offers Tremendous Growth Potential
Retail Universe Offers Tremendous Growth Potential “Future-Proofing”: redefining and expanding our markets Institutional + High Net Worth (HNW) Private Markets Allocations By Investor Type & Mass-Affluent (2020-2025) 28-30% 2025 PM Allocations 2020 PM Allocations $178 $102 20-22% T T 16-18% HNW & In
Slide 18: Global Wealth Management Solutions is a Strategic Priority
Global Wealth Management Solutions is a Strategic Priority “Future-Proofing”: investing in distribution and technology-enabled solutions to reach individual investors Global Wealth organic capital Global Wealth headcount already Expanding distribution access while raise target over next 5 years exce
Slide 19: Global Wealth Focused on Broadening Distribution of Existing Products
Global Wealth Focused on Broadening Distribution of Existing Products While Developing Next Generation Solutions Well-rounded and expanding product offering with continued commitment to innovation First Of Its Kind Offerings Traditional Commingled Institutional Offerings Fund Allocations Ready-Made
Slide 20: New Product: Apollo Aligned Alternatives (AAA)
New Product: Apollo Aligned Alternatives (“AAA”) A core equity replacement solution for investment portfolios $10B+ $5B+ TBD From Apollo Third Party Institutions1 Future Investors Risk-adjusted Diversification Unique Product Strong Returns Features Alignment Target return profile aligned with Exposu
Slide 21: Capital Solutions: Apollo is a Perfect Home for this Business
Capital Solutions: Apollo is a Perfect Home for this Business “Future-Proofing”: Syndication significantly expands our reach and drives value for all stakeholders Expanded TAM Origination Capital Markets Syndication Expands addressable Directly originate more Competitive pricing, Expand our investor
Slide 22: Case Study: Financing to Create Energos Infrastructure
Case Study: Financing to Create Energos Infrastructure, a New Energy Infrastructure Platform in Partnership with New Fortress Energy Equity Financing Debt Financing Equity investment Initiated early co- Strategically Facilitated diligence, Ultimately secured originally committed invest outreach, app
Slide 23: Putting It All Together: Our Financial Targets and Differentiation
Putting It All Together… Our Financial Targets and Differentiation 23
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, not the goal in itself Total Assets Under Yield Hybrid Equity Management ~$1T Equity/ Hybrid ~$750B ~$125B ~2x ~$100B ~1.5x ~2x ~2x $498B $85B $360B $53B Yield 2021 2026E 2021 2026E 2021
Slide 25: Expectations to Double FRE and Total Earnings Before Factoring $5B of Growth Capital
...With Expectations to Double FRE and Total Earnings Before Factoring $5B of Growth Capital Durable and growing earnings streams with ~90% of pre-tax earnings generated from recurring FRE and SRE Principal Fee Related Earnings (FRE) Spread Related Earnings (SRE) Fee and Spread + Related Earnings In
Slide 26: Massive Capital Generation to Support Our Growth and Return to Shareholders
Massive Capital Generation to Support Our Growth and Return to Shareholders Strategic uses for targeted capital generation at the Holding Company Illustrative Capital Usage… ~$5B $1.60 Base Dividend Growth Engine ~$15B ~$5B Annual Dividend Growth Share Repurchases Capital Generation Projected Over N
Slide 27: Numerous Embedded Growth Options
Additionally, We Are Excited About Numerous Embedded Growth Options Quietly making progress on all fronts Democratization FinTech Asia Of Finance Serving as a validator, Meaningful opportunity to exceed Focusing on retirement services an enabler, a partner, base plan fundraising targets to access th
Slide 28: Apollo's Integrated Sustainability Approach
Apollo’s Integrated Sustainability Approach Sustainability ESG Sustainable Investing Impact / Apollo Impact Citizenship / Apollo Expanding Platform Mission Fund Opportunity Foundation Opportunity Apollo’s integrated approach to sustainability leverages our strategic platforms, helps to mitigate risk
Slide 29: Leveraging the Entire Apollo Ecosystem to Lead Responsibly
Leveraging the Entire Apollo Ecosystem to Lead Responsibly Deep commitment to expanding opportunity in our workplace, marketplace and community Workplace Marketplace Community Dedicated Diversity, Equity & Inclusion Apollo actively engages with the Apollo strives to be a responsible resources and pr
Slide 30: Apollo Aims to Lead the Charge in Energy Transition and Sustainable Investing
Apollo Aims to Lead the Charge in Energy Transition and Sustainable Investing Industry expertise, structuring capability, and capital flexibility to help serve this market Substantial Apollo-managed funds Our sustainable investing Integrated ecosystem across investment of have deployed approximately
Slide 31: Appendix
APOLLO Appendix
Slide 32: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in millions) 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 YTD'21 YTD'22 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $249 $234 $(870) $(2,051) $(876) $1,568 $(3,797) Preferred dividends 9 10 — — — 27 — Net income
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd
Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd Year ended December 31, ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 GAAP Net income (loss) attributable to Apollo Global Management, Inc. $168 $134 $403 $616 $(42) $807 $120 $1,802 Common Stockholders Preferred dividends — —
Slide 34: 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 Income
Slide 35: 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 36: Non-GAAP Financial Information & Definitions - Cont'd
Non-GAAP Financial Information & Definitions - Cont'd • “Gross MOIC” means, with respect to a given portfolio company, the ratio of Total Value to Total Invested Capital. “Realized Value” refers to all cash investment proceeds received by the relevant Apollo Fund, including interest and dividends, b
Slide 37: 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 38: 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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