Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (February 2017)
29 slides from Apollo Global Management, Inc. (new)'s investor presentation, February 2017
Slide 1: Investor Presentation
Investor Presentation February 2017 Information contained herein is as of December 31, 2016 unless otherwise noted. Not for distribution in whole or in part without the express written consent of Apollo Global Management, LLC. It should not be assumed that investments made in the future will be prof
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 Global Management, LLC
Apollo Global Management, LLC Apollo Global Management, LLC is a leading global alternative investment manager in private equity, credit and real estate Ticker (NYSE) APO Market Capitalization(1) $8.5 billion Total Assets Under Management(2) $192 billion AUM CAGR (2006 – 2016) 23% LTM Dividend Yield
Slide 4: Apollo is One of the World's Largest Alternative Asset Managers
Apollo is One of the World’s Largest Alternative Asset Managers Firm Profile(1) Business Segments Founded: 1990 Private Equity Credit Real Estate AUM: $192bn $44bn AUM $137bn AUM $11bn AUM Opportunistic buyouts Drawdown Commercial real estate Employees: 986 Liquid / Performing Global priva
Slide 5: Apollo's Platform is Built for Continued Growth and Innovation
Apollo’s Platform is Built for Continued Growth and Innovation Our stair step growth has been driven by Credit and we believe this trend is likely to continue $250-300+ RE Billion Credit CAGR $192 23% Billion PE RE+$11bn RE $11bn Successor Scale Existing Credit Funds Strategies Credit +$133bn $137bn
Slide 6: Apollo's Integrated Business Model
Apollo’s Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Development of industry insight through : Credit Equity – Over 300 current and former portfolio companies Real – Strategic relationships with industry Estate executives – Significant relati
Slide 7: Apollo's Deep Industry Expertise
Apollo’s Deep Industry Expertise Media/ Manufacturing Natural Consumer & Consumer Business Financial Chemicals Leisure Telecom/ & Industrial Resources Retail Services Services Services Technology Note: The listed companies are a sample of Apollo private equity and credit investments. The list was co
Slide 8: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Traditional Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 25% 20.2% 20.2% 16.4% 16.9% 13.8% 12.5% 11.2% 10.7% 9.8% 7.2% 7.9% 7.2% 4.9% 5.7% 3.2% Barclays S&P 500 Index (1) NCREIF (2) All Private Equi
Slide 9: Apollo Has a Clear Path for Continued Growth
Apollo Has a Clear Path for Continued Growth Apollo will continue to identify opportunities to leverage its existing platform and diversify into areas with meaningful synergies with its core business Favorable Secular Trends Growth Strategies Selected Examples Investors continue to Athene Asset Ma
Slide 10: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Apollo’s Marketing Capabilities Global Base of Long-Term Investors Middle East Rest of World Integrated global team structure incorporating sales coverage, 7% 1% product specialists, and investor relations Canada 8% Build new relationships and cross-sell
Slide 11: Various Paths For Public Investors to Access Apollo's Expertise
Various Paths For Public Investors to Access Apollo’s Expertise Publicly Traded AINV Ticker: (NASDAQ OMX) AUM: $3.6 billion Year of Listing: 2004 Alternative Investment ( APO (NYSE) $191.7 billion 2011 Manager Business Development AINV (NASDAQ OMX) $4.4 billion 2004 Company (BDC) Closed-End AAA Limi
Slide 12: Private Equity Business Overview
Private Equity Business Overview Highlights Historical Returns for Selected Asset Classes(1) ▪ $43.6bn in total AUM –$30.7bn fee-generating, $21.5bn carry-generating ▪ $14.0bn of dry powder 25% ▪ Value oriented: Transactions completed at lower EBITDA 20% multiples than industry averages 13% 8% ▪ Inv
Slide 13: Apollo's Value-Oriented Approach
Apollo’s Value-Oriented Approach Fund V Fund VI Fund VII Fund VIII Vintage: 2001 Vintage: 2006 Vintage: 2008 Vintage: 2013 Total Commitments: $3.7bn Total Commitments: $10.1bn Total Commitments: $14.7bn Total Commitments: $18.4bn Total Invested: $5.2bn Total Invested: $12.5bn Total Invested: $16.0bn
Slide 14: Flexible Investment Strategy Helps to Buy Right
Flexible Investment Strategy Helps to Buy Right Apollo Funds Rely on Three Investment Strategies to Capture Value Across Market Cycles Corporate Carve-Out Distressed For Control Opportunistic Buyouts Build de novo businesses with Leader in complex corporate Focus on industries and geographies
Slide 15: Credit Business Overview
Credit Business Overview Highlights Significant Growth in Credit AUM ▪ $136.6bn in total AUM 2006 – 2016 CAGR: 42% –$111.8bn fee-generating, $33.3bn carry-generating ▪ Same value-oriented approach as private equity $137 ▪ Leverage Apollo’s core industry expertise and benefit from integrated platform
Slide 16: Accelerated and Diversified Growth in Credit
Accelerated and Diversified Growth in Credit Apollo Credit AUM Pre-Crisis Financial Crisis Recovery / Expansion ($ in billions) $137 $121 $109 CAGR $102 42% $65 $32 $19 $22 $11 $15 $4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Key Growth Drivers Total Re turn Hedge EPF US CLO CLO Life Cl
Slide 17: Apollo Has a Range of Solutions Across the Credit Spectrum
Apollo Has a Range of Solutions Across the Credit Spectrum Apollo manages more than 100 discrete funds or accounts across a broad set of investment strategies Illustrative Composition of Apollo’s Credit Business Target Return $137 billion of AUM 15%+ Drawdown Funds (2) ($19bn) Hedge Funds Credit 10-
Slide 18: Athene: Differentiated & Strategically Important Growth Driver
Athene: Differentiated & Strategically Important Growth Driver Athene Holding Ltd. (“Athene”) is an insurance holding company focused on fixed annuities Founded in 2009, Athene was principally funded through an Apollo sponsored permanent capital vehicle (AP Alternative Assets, L.P.; Euronext Ams
Slide 19: MidCap: Opportunity to Scale Direct Origination Capability
MidCap: Opportunity to Scale Direct Origination Capability Apollo’s Strategic View of Credit Landscape MidCap and Apollo Relationship Illiquid Investment Grade Leading direct originator in Leading alternative credit Directly Originated Broadly Syndicated middle market with proven manager with existi
Slide 20: Real Estate Business Overview
Real Estate Business Overview Highlights Supplemental Information ▪ $11.5bn in total AUM, including $8.3bn in fee-generating $11 billion AUM ▪ Global platform with a presence in North America, Europe and Asia ▪ Value-oriented approach for equity investments targeting the Equity acquisition and recap
Slide 21: Drivers of Our Business
Drivers of Our Business Business Model Driven by Fee Related Revenues, Carried Interest Income, and Balance Sheet Investments Across Three Segments PE Credit RE Total Credit Athene Non- (ex-Athene Non Sub Advised(1) -Sub Advised) AUM $44bn(2) $82bn(2) $55bn(2)(3) $11bn(2) $192bn(2) Fee-Generating $8
Slide 22: Strong FRE with Future Carry and Fee Potential
Strong FRE with Future Carry and Fee Potential $530 million of Fee Related Earnings $89 billion of Carry-Eligible AUM(1) ($ in millions) $530mm CAGR Uninvested 24% Carry- Eligible AUM $25.2bn Currently Generating $181mm Unrealized Carry Unrealized Not $55.6bn $14,525 Currently $14,525 Generating Car
Slide 23: Solid, Stable Balance Sheet
Solid, Stable Balance Sheet At December 31, 2016, Apollo had $806 million in total cash, $1.6 billion of investments, and $709 million of net carried interest receivable for a total net value of $3.1 billion Long-term debt of $1.4 billion (with maturities in 2021, 2024, and 2026) and an undrawn
Slide 24: Well Capitalized with Strong Credit Metrics
Well Capitalized with Strong Credit Metrics Apollo is well capitalized with moderate debt supported by strong income statement and balance sheet metrics ($ in millions) 2014 2015 2016 Fee Related Earnings $672 $422 $530 Distributable Earnings (pre-tax) 1,430 623 648 Interest Interest Expense (1) 19
Slide 25: Investor Relations Contacts
Investor Relations Contacts Gary Stein Head of Corporate Communications gstein@apollolp.com 212-822-0467 Noah Gunn Investor Relations Manager ngunn@apollolp.com 212-822-0540 25
Slide 26: APO's Financial Summary – Combined Segments
APO’s Financial Summary – Combined Segments ( $ in thousands, except per share data and where noted) 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 FY'15 FY'16 Management fees from related parties $233,149 $230,933 $241,633 $258,485 $246,598 $911,893 $977,649 Advisory and transaction fees from related parties,
Slide 27: Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures
Reconciliation of GAAP Net Income Per Class A Share to Non-GAAP Per Share Measures ($ in thousands, except share data) 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 FY'15 FY'16 Net Income (Loss) Attributable to Apollo Global Manage ment, LLC $6,091 ($32,828) $174,092 $94,619 $166,967 $134,497 $402,850 Distribu
Slide 28: Endnotes & Definitions
Endnotes & Definitions “ 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, partnerships and accounts have the r
Slide 29: Endnotes & Definitions (continued)
Endnotes & Definitions (continued) EI represents segm ent income (loss) before income tax provision excluding transaction-related charges arising from the 2007 private placement, and any acquisitions. Transaction-related charges includes equity-based compensation charges, the amortization of intangi
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