Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (September 2013)
31 slides from Apollo Global Management, Inc. (new)'s investor presentation, September 2013
Slide 1: Apollo Global Management, LLC – Investor Presentation September 2013
Apollo Global Management, LLC – Investor Presentation September 2013 Not for distribution in whole or in part without the express consent of Apollo Global Management, LLC. It should not be assumed that investment made in the future will be profitable or will equal the performance of the investments
Slide 2: Forward Looking Statements and Other Important Disclosures
Forward Looking Statements and Other Important Disclosures This presentation may contain forward looking statements that are within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, discu
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) $11.3 billion Total Assets Under Management(2) $113 billion AUM CAGR (12/31/04 – 6/30/13) 31% LTM Divide
Slide 4: Agenda
Agenda 1. Overview of Apollo 2. Business Segments 3. Financial Overview
Slide 5: Apollo’s Global Platform
Apollo’s Global Platform Firm Profile (5) Principal Investment Businesses(5) Founded: 1990 Private Equity Credit (7) Real Estate AUM: $113 bn(6) $40bn AUM $62bn AUM $9bn AUM Employees: 660 U.S. Performing Credit Residential and commercial Opportunistic buyouts Inv. Prof.: 253 Distressed buyo
Slide 6: Apollo’s Fully Integrated Business Model
Apollo’s Fully Integrated Business Model Industry Insights Management Relationships Investment Opportunities Private Equity Development of industry insight through : Real – Over 300 current and former portfolio Estate Natural companies Resources – Exclusive strategic relationships with Credit indust
Slide 7: Apollo’s Expertise – Nine Core Industries
Apollo’s Expertise – Nine Core Industries Financial & Consumer Distribution & Manufacturing Media, Cable Packaging & Satellite & Chemicals Business Commodities & Retail Transportation & Industrial & Leisure Materials Wireless Services ATHLON ENERGY Note: The listed companies are a sample of Apollo p
Slide 8: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Apollo’s Private Equity Funds: 39% Gross & 26% Net IRR Since Inception 5 Year 10 Year 20 Year 39% 26% 20.2% 20.4% 14.6% 13.5% 13.0% 8.5% 8.5% 8.9% 8.5% 8.0% 5.5% 5.1% 6.2% 5.8% 2.3% (9) Barclays Aggregate S&P 500 Index(8) NCREIF All Private Equity(10) E
Slide 9: Strong Credit Performance Across Strategies
Strong Credit Performance Across Strategies U.S. Performing Credit: Opportunistic Credit: European Credit & NPLs: Credit Opportunity Funds I & II(13) Apollo Investment Corporation (AINV)(14) AIE II(15,16) & EPF(16,17) Net IRR Since Inception Weighted Average Yield Net IRR Since Inception 27.5% 11.8%
Slide 10: Significant Growth and Diversification
Significant Growth and Diversification Apollo’s Total AUM Has Grown By More Than 10x Over the Last Decade ($ in millions) Total AUM: $113bn(18) $1,218 Private Equity Credit Real Estate Unallocated Strategic Account $9,473 Dramatically different 8% o f AUM business today vs. at IPO AUM CAGR: 24% $62,
Slide 11: Apollo Has a Clear Path for Continued Growth
Apollo Has a Clear Path for Continued Growth Apollo will continue to identify opportunities to leverage its existing platform and diversify into areas with meaningful synergies with its core business Secular Secular Trends Trends Growth Growth Strategies Strategies Selected Recent Selected Recent
Slide 12: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Overview Overview of of Apollo’s Apollo’s Marketing Marketing Capabilities Capabilities 2012 2012 Fundraising Fundraising Activity Activity Breakdown Breakdown ($mm) ($mm) Full-scale solutions provider in alternatives Private Equity Strategic $662 Integra
Slide 13: Apollo Has Demonstrated Significant Progress Since its IPO
Apollo Has Demonstrated Significant Progress Since its IPO Since its IPO in March 2011, Apollo has continued to execute consistently against its growth plan AUM ($bn) AUM ($bn) Subscriptions // Capital Subscriptions Capital Raised Raised ($bn) ($bn) Increased AUM by over 60% Fundraising efforts
Slide 14: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview
Slide 15: Private Equity Business Overview
Private Equity Business Overview(20) Highlights Steady Pace of Capital Deployment $40.2bn in total AUM $3.5bn average per year (2010-2012) – $26.0bn in fee generating $3,863 $13.0bn of “dry powder” $3,350 $3,191Realized $5,530 – Latest fund (Fund VII) total value 1.8x total invested capital $1,3
Slide 16: Apollo’s Value-Oriented Approach
Apollo’s Value-Oriented Approach Fund V Fund VI Fund VII Vintage: 2001 Vintage: 2006 Vintage: 2008 Total Commitments: $3.7 bn Total Commitments: $10.1 bn Total Commitments: $14.7 bn Creation Multiple Creation Multiple Creation Multiple 9.6x 8.9x 7.7x 7.7x 6.6x 6.2x Apollo Industry Entry Apollo Indus
Slide 17: Credit Business Overview
Credit Business Overview(26) Highlights Diversified Mix of AUM $62.2 billion AUM ($47.5 billion in fee- Opportunistic Credit European Credit generating) $6.3bn $2.4bn 10% Same value-oriented approach as private equity 4% EPF Leverage Apollo’s core industry expertise and $6.5bn U.S. Performing
Slide 18: Athene Provides Incremental Upside Potential
Athene Provides Incremental Upside Potential Athene is an insurance company focused on fixed annuities - Earns the spread between its investment return on assets and the rate on its liabilities - Founded in 2009 and funded originally through an Apollo permanent capital vehicle (AP Alternative Asse
Slide 19: Real Estate Business Overview
Real Estate Business Overview(26) Highlights Growth in Apollo’s Real Estate AUM ($mm) $9.5 billion AUM ($5.8 billion in fee-generating) $9,473 Global debt and equity platform with a presence in $7,971 $8,800 North America, Europe and Asia $6,469 Value-oriented approach for equity investments t
Slide 20: Agenda
Agenda 1. Background & Business Model 2. Business Segments 3. Financial Overview
Slide 21: Apollo’s Primary Business Drivers
Apollo’s Primary Business Drivers Management fees are earned based on a percentage of fee- Management Management Fees Fees generating assets Assets Assets Under Under Transaction fees are generated on Management Management certain completed transactions Advisory fees are derived Transaction Tr
Slide 22: Steady Growth of Management Fee Revenue
Steady Growth of Management Fee Revenue Management Business Revenues Management Fee as % of Avg. Fee Generating AUM ($mm) $900 $811 0.99 % 0.98 % 0.81 % 0.75 % $800 $700 $617 $579 $558 $600 $513 Private Equity Credit $500 $465 Q2 12 Q2 13 $392 $400 $314 $300 Mgmt. Revenue Breakdown by Business Segme
Slide 23: Apollo Has an Investment Portfolio Prime for Continued Realizations
Apollo Has an Investment Portfolio Prime for Continued Realizations (28) Current Current PE PE portfolio portfolio may may provide provide for for multi-year multi-year realizations realizations Portfolio Portfolio Marks Marks Valued Valued Using Using Exchange Exchange or or Broker Broker Quotes Qu
Slide 24: Apollo Has Displayed Growth Across Key Operating Metrics
Apollo Has Displayed Growth Across Key Operating Metrics Management Management Business Business Revenue Revenue ($mm) ($mm) Management Business Management Business ENI ENI ($mm) ($mm) % $874 GR : 21 % $273 2 CA $811 : 74 – 20 1 C AGR $223 2010 01 2 201 0–2 $617 $558 $74 $76 2010 2011 2012 LTM 6/30/
Slide 25: Strong, Stable Balance Sheet
Strong, Stable Balance Sheet Apollo’s Key Balance Sheet Items (as of June 30, 2013) $mm Cash $1,203 Debt $728 Gross Accrued Carry $2,015 (31) Net Accrued Carry $1,107 Per share $2.80(32) Investments in Private Equity, Credit and $448 Real Estate Funds Per share $1.13(32) Please refer to endnotes at
Slide 26: APOLLO
APOLLO
Slide 27: AGM’s Financial Summary – Combined Segments
AGM’s Financial Summary – Combined Segments For the Three Months Ended For the Year Ended June 30, December 31, $ in millions 2013 2012 2012 2011 2010 Total Assets under Management(33) Private Equity $40,213 $38,228 $37,832 $35,384 $38,799 Credit 62,212 56,108 64,406 31,867 22,283 Real Estate 9,473
Slide 28: ENI to GAAP Earnings Reconciliation
ENI to GAAP Earnings Reconciliation ($'s in millions) For the Three Months Ended For the Twelve Months Ended June 30, 2013 June 30, 2012 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Reconciliation of GAAP Net Income to ENI and Adjusted ENI Net Income (loss) attributable to Apollo Global Management, LLC .
Slide 29: Credit Fund Summary
Credit Fund Summary Apollo Fund Year of Inception Apollo Fund Year of Inception Apollo / Artus Investors 2007 – 1 2007 ALM VII 2012 ALM V 2012 ALME I 2013 ALM VI 2012 Compass 2002 2002 Apollo Credit Liquidity Fund 2007 Compass 2003(35) 2003 Apollo Credit Opportunity Fund I 2008 Compass 2004(36) 2004
Slide 30: Notes
Notes Notes Past performance is not indicative nor a guarantee of future results. See the last page for an “Important Notes Regarding the Use of Index Comparisons.” See prior slide for a full listing of Apollo’s Credit Funds, which may have different or worse performance than the Funds illustrated
Slide 31: Definitions
Definitions Assets Under Management (“AUM”) Definition – refers to the investments we manage or with respect to which we have control, including capital we have the right to call from our investors pursuant to their capital commitments to various funds. Our AUM equals the sum of: (i) the fair value
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