Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Investor Presentation (November 2020)
29 slides from Apollo Global Management, Inc. (new)'s investor presentation, November 2020
Slide 1: Apollo Global Management Investor Presentation
A P O L L O G L O B A L M A N A G E M E N T , I N C. ( N Y S E : A P O ) Apollo Global Management Investor Presentation November 2020
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 Overview
Apollo Overview APOLLO
Slide 4: Apollo is a Leading Alternative Investment Manager
Apollo is a Leading Alternative Investment Manager Apollo Global Management is a leading global alternative investment manager with expertise in credit, private equity, and real assets $433 billion $258 billion 39% Total Assets Under Management1 AUM in Permanent Capital Vehicles Gross IRR in Private
Slide 5: Globally Diversified Platform Across Asset Classes
Globally Diversified Platform Across Asset Classes Firm Profile1 Business Segments Founded: 1990 Credit Private Equity Real Assets $312bn AUM $77bn AUM $44bn AUM AUM: $433 billion • Corporate Credit • Private Equity • Real Estate Employees: 1,657 • Structured Credit • Distressed buyouts, Debt • Prin
Slide 6: Deep Bench of Senior Management Talent
Deep Bench of Senior Management Talent Senior Leadership Leon Black Josh Harris Marc Rowan Scott Kleinman Founder, Co-Founder Co-Founder Co-President Chairman and CEO Jim Zelter Martin Kelly Anthony Civale Gary Parr Co-President, Co-Chief Operating Officer Co-Chief Operating Officer and Senior Manag
Slide 7: Assets Under Management Have Grown More than 7x in 10 Years
Assets Under Management Have Grown More than 7x in 10 Years AUM growth over the past ten years driven by the proliferation of yield-oriented permanent capital vehicles and continued success in opportunistic investing businesses Total Assets Under Management ($bn) Private Equity AUM ($bn) CAGR SINCE
Slide 8: AUM Growth Has Driven Expansion of Fee Related Earnings (FRE)
AUM Growth Has Driven Expansion of Fee Related Earnings (FRE) FRE growth driven by 14% CAGR in management fees since IPO and continued cost control. Management fees have been resilient and continued to grow through various periods of market dislocation, supported by long-dated AUM and AUM in permane
Slide 9: Permanent Capital Vehicles – A Strategic Differentiator
Permanent Capital Vehicles – A Strategic Differentiator Permanent Capital Vehicle AUM Permanent Capital Vehicle Fee Generating AUM1 ($ billions) $258 $245 Permanent Capital Vehicle AUM Permanent Capital Vehicle FGAUM % of Total AUM $166 % of Total FGAUM $157 $136 $131 60% $84 73% $66 $87 49% 50% 64%
Slide 10: Accelerated and Diversified Growth Through Cycle
Accelerated and Diversified Growth Through Cycle Apollo Total AUM ($ billions) CAGR 21% $433 $331 $280 $249 $170 $192 $161 $160 $68 $75 $113 $44 $54 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3Q20 and prior Examples of Key AUM Growth Drivers Hedge CLO Closed-end Total Short Total Re
Slide 11: Six Insurance Capabilities to Provide Solutions for Growth
Six Insurance Capabilities to Provide Solutions for Growth • Apollo has established a broad in-house insurance capability, with approximately 150 investment professionals dedicated to FIG and insurance strategies • Recently announced two notable transactions: Athora’s acquisition of VIVAT N.V. (“VIV
Slide 12: 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 ISG✓ • Investors continue to increase S
Slide 13: Proven Ability to Raise Capital Globally
Proven Ability to Raise Capital Globally Apollo’s Fundraising Capabilities Global Base of Long-Term Investors • Integrated global team structure incorporating sales 1% North America coverage, product specialists, and investor relations • Build new relationships and cross-sell across the Europe 11% A
Slide 14: Long Track Record of Success in Private Equity
Long Track Record of Success in Private Equity Traditional Private Equity Fund Performance: 39% Gross & 24% Net IRR Since Inception (1990) 39% 24% 20% 19% 17% 13% 13% 11% 9% 9% 7% 4% 6% 4% Barclays Government S&P 500 Index 1 All Private Equity 2 Top Quartile PE 3 Private Private Credit Bond Index 1
Slide 15: Asset Light Model with High Distribution of Earnings
Asset Light Model with High Distribution of Earnings Since its IPO in 2011, APO has distributed $20.39 in cash per Class A share ~5% yield last twelve months during light realization period1 Continuation of current dividend policy following C-Corp conversion Shareholder friendly approach • High payo
Slide 16: Valuation Framework: Sum-of-the-Parts (SOTP)
Valuation Framework: Sum-of-the-Parts (SOTP) SOTP approach utilizes three components to derive current fair value for APO • Value FRE at a target price-to-earnings multiple that reflects growth & margin profile FEE RELATED ~90% of fee related revenues from management fees 1 • EARNINGS (“FRE”) • Grow
Slide 17: Financial Information
Financial Information APOLLO
Slide 18: Drivers of Apollo Business
Drivers of Apollo Business Business model driven by fee related revenues, performance fees, and balance sheet investments across three segments Credit Private Equity Real Assets Total AUM1 $312bn $77bn $44bn $433bn Fee-Generating AUM $257bn $44bn $36bn $336bn Transaction & Deal-Dependent (Entry, Exi
Slide 19: Segment Balance Sheet Highlights
Segment Balance Sheet Highlights Total net value increased to $2.0 billion as Apollo recorded mark-to-market gains on GP & Other Investments and funds’ investment portfolios During the quarter, Apollo repurchased 0.6 million shares of Class A Common Stock in open market transactions for $27.4 millio
Slide 20: Reconciliation of GAAP to Fee Related Earnings
Fee Related Earnings ($ in thousands) FY’11 FY’12 FY’13 FY’14 FY’15 FY’16 FY’17 FY’18 FY’19 LTM 3Q’20 Management fees 490,191 623,041 730,702 901,024 911,893 977,649 1,082,315 1,282,688 1,491,070 1,598,406 Advisory and transaction fees 73,542 133,257 88,627 89,633 46,244 147,115 117,624 111,567 122,
Slide 21: Reconciliation of GAAP to Financial Measures
Reconciliation of GAAP to Financial Measures ($ in thousands) FY’14 FY’15 FY’16 FY’17 FY’18 FY’19 LTM 3Q’20 GAAP Net Income (Loss) Attributable to Apollo Global Management, Inc. Class A Common Stockholders $168,229 $134,497 $402,850 $615,566 ($42,038) $806,537 ($148,103) Preferred dividends — — — 13
Slide 22: Investment Records as of September 30, 2020
Investment Records as of September 30, 2020 Committed Total Invested Realized Remaining Unrealized Total ($ in millions) Vintage Year Total AUM Capital Capital Value Cost Value Value Gross IRR Net IRR Private Equity: Fund IX 2018 $24,600 $24,729 $5,571 $691 $5,175 $5,829 $6,520 19% (2)% Fund VIII 20
Slide 23: Investment Records as of September 30, 2020 – Continued
Investment Records as of September 30, 2020 – Continued Permanent Capital Vehicles Total Returns7 ($ in millions) IPO Year8 Total AUM 3Q'20 YTD'20 3Q'19 YTD'19 FY’19 Credit: MidCap9 N/A $8,124 4% 3% 4% 13% 17% AIF 2013 332 4 (11) 5 17 19 AFT 2011 362 5 (11) 1 9 14 AINV/Other10 2004 4,475 (10) (45) 5
Slide 24: Endnotes & Definitions
Endnotes & 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”): • “Segment Distributable Earnings”, or “Segmen
Slide 25: Endnotes & Definitions Continued
Endnotes & Definitions Continued • “Assets Under Management”, or “AUM”, refers to the assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships
Slide 26: Endnotes & Definitions Continued
Endnotes & Definitions Continued • “Athene Holding” refers to Athene Holding Ltd. (together with its subsidiaries, “Athene”), a leading retirement services company that issues, reinsures and acquires retirement savings products designed for the increasing number of individuals and institutions seeki
Slide 27: Endnotes & Definitions Continued
Endnotes & Definitions Continued • “Inflows” represents (i) at the individual segment level, subscriptions, commitments, and other increases in available capital, such as acquisitions or leverage, net of inter-segment transfers, and (ii) on an aggregate basis, the sum of inflows across the credit, p
Slide 28: Endnotes & Definitions Continued
Endnotes & Definitions Continued • “Total Invested Capital” refers to the aggregate cash invested by the relevant Apollo fund and includes capitalized costs relating to investment activities, if any, but does not give effect to cash pending investment or available for reserves and excludes amounts,
Slide 29: Endnotes & Definitions Continued
Endnotes & Definitions Continued Important Notes Regarding the Use of Index Comparisons Index performance and yield data are shown for illustrative purposes only and have limitations when used for comparison or for other purposes due to, among other matters, volatility, credit or other factors (such
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