Apollo Global Management, Inc. (new) · NYSE:APO
Apollo Global Management, Inc. (new) — Apollo Global Management — Barclays Capital Americas Select Conference 2011
32 slides from Apollo Global Management, Inc. (new)'s conference presentation, May 24, 2011
Slide 1: Barclays Capital Americas Select Conference
Barclays Capital Americas Select Conference 24 May, 2011 It should not be assumed that investments made in the future will be profitable or will equal the performance of investments in this document.
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: Agenda
Agenda 1. Executive Summary 2. Business Overview 3. Industry, Growth & Strategy 4. Financials Appendix 2
Slide 4: Business Highlights
Business Highlights Leading global alternative asset manager with a diversified and integrated platform 21 year history of industry-leading returns especially during periods of market turbulence Well positioned to capitalize on compelling growth dynamics in alternative asset management sector
Slide 5: Apollo Global Management Overview
Apollo Global Management Overview Founded in 1990 by Leon Black, Josh Harris and Marc Rowan who have worked together for more than 20 years $70 billion diversified alternative asset manager with integrated and global platform across private equity, capital markets, and real estate Value-orient
Slide 6: Leading Returns Across Several Asset Classes
Leading Returns Across Several Asset Classes Historical Returns for Selected Asset Classes Unsurpassed Downside Protection Apollo Private Equity Fund Net Returns Since Inception 3 27% 20% 2 13% 9% 1 0 0 (1) (2) (3) S&P 500 All Private Estimated T op Apollo PE Net <0% 0%-8% 8%-20% 20%-40% >40% Index
Slide 7: Significant Growth Achieved
Significant Growth Achieved Assets Under Management (End of period) Total Revenue ($bn) ($mm) 6% % $70 R: 3 $2,583 R: 2 8 CAG G CA $25 $697 2006 Q1 2011 2006 LTM Q1 2011 Total Management Fees Economic Net Income ($mm) ($mm) 0% R: 2 $446 % CAG R : 42 $1,664 C AG $204 $377 2006 LTM Q1 2011 2006 LTM Q1
Slide 8: Experienced Team Aligned with Shareholders and Clients
Experienced Team Aligned with Shareholders and Clients Founders with long-term commitment to the Company – Worked together for over 20 years – Collectively own a majority of the Company Significant investment in personnel and infrastructure – Senior investment team hires in International Private
Slide 9: Agenda
Agenda 1. Executive Summary 2. Business Overview 3. Industry, Growth & Strategy 4. Financials Appendix 8
Slide 10: Power of Deep Industry Knowledge and Integrated Platform
Power of Deep Industry Knowledge and Integrated Platform Consumer Distribution & Financial & Manufacturing Media, Cable & Packaging & Satellite & Chemicals Commodities & Retail Transportation Business Services & Industrial Leisure Materials Wireless Chemicals Cable Leisure Natural Resources Real Est
Slide 11: Successful Investments Across Economic Cycles
Successful Investments Across Economic Cycles Recession Recovery Expansion Recession Recovery Expansion Recession 2007 1990 - 1993 1994 - 1997 1998 - 2000 2001 - 2003 3Q 2003 4Q - 2005 2006 - 2007 2Q 2007 3Q - Current Typical private Inactive Active Inactive or paid Inactive Active and Active and In
Slide 12: Growing Global Base of Loyal Long-Term Investors
Growing Global Base of Loyal Long-Term Investors Long-Lived Asset Base1… Global Asset Base2 Total AUM: $68 billion Revenue Breakdown ~76% of non-U.S. bybase capital Management Fee Type represents commitments Fewer than 7 Years from investors new to Apollo during last 5 years 9% 7 to 9 Years Canada 2
Slide 13: Private Equity Business Overview
Private Equity Business Overview Highlights(1) Private Equity Capital Deployed During Credit Crisis(2) $39.6bn in AUM ($27.8bn in fee generating) ($mm) – 23% CAGR (’07-Q1’11) fee generating Realized $10.2bn of “dry powder” $5,530 – Latest fund 58% invested 39% gross / 27% net IRR since incepti
Slide 14: Capital Markets Business Overview
Capital Markets Business Overview Highlights1 AUM Breakdown1 Established in 2003 Other (2) $23.8 billion AUM ($17.7 billion in fee-generating) Non-performing $2.3bn Same value-oriented approach as private equity Loan Fund 10% $2.1bn Leverage core industry expertise of global Apollo 9% franch
Slide 15: Real Estate Business Overview
Real Estate Business Overview Overview1 Rapid Growth in Apollo’s Real Estate AUM ($mm) Apollo Global Real Estate (AGRE) leverages $6,469 $6,547 Apollo’s investment expertise and long history of investing in real estate-related sectors AGRE’s investment team has significant experience in real est
Slide 16: Agenda
Agenda 1. Executive Summary 2. Business Overview 3. Industry, Growth & Strategy 4. Financials Appendix 15
Slide 17: Global Search for Yield Driving Alternative Asset Growth
Global Search for Yield Driving Alternative Asset Growth Portfolio Allocations to Alternatives Have Historical Performance 10 Year Returns as of March 31, 2011 Nearly Tripled in the Past Decade(1) 70% Largest Areas of Smallest Areas of Allocation(1) Allocation(1) 60% 60% 60% ~ Avg. approx. 85% of po
Slide 18: Significant Growth and Diversification
Significant Growth and Diversification Consistent Growth and Diversification ($ in millions) $6,547 Scale Existing $6,469 Businesses $495 4% New Product R:3 $23,834 Development G $22,283 CA UM lloA $19,112 o Ap Geographic $15,108 Expansion $10,533 Expand 1990-2002: Distribution PE Only $4,392 Channe
Slide 19: Attractive Growth Strategies
Attractive Growth Strategies Apollo will continue to identify opportunities to leverage its existing platform and expand into areas with meaningful synergies with our core business Growth Strategies Recent or Expected Near Term Activities Expect to establish a second European non-performing produc
Slide 20: Agenda
Agenda 1. Executive Summary 2. Business Overview 3. Industry, Growth & Strategy 4. Financials Appendix 19
Slide 21: Primary Business Drivers
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 PE & RE transactions Transaction Transaction and and Advisory Ad
Slide 22: Compelling Financial Model and Strong Results
Compelling Financial Model and Strong Results Total Total AUM AUM Growth Growth CAGR CAGR 18% (2007- (2007- Q1 Q1 2011) 2011) Management Management Fee Fee Revenues Revenues 21% CAGR CAGR (2007-LTM (2007-LTM Q1 Q1 2011) 2011) Total Total Fee Fee Revenue Revenue as as %% of of Average Average 1.26% F
Slide 23: Recent Financial Results – Q1 2011
Recent Financial Results – Q1 2011 For the Quarter-Ended March 31, 2011 Private Capital Real Combined $ in millions Equity Markets Estate Segments Management Business Revenues Management Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $66 $43 $9 $118 Net Tra
Slide 24: Stable Management Fee Revenue
Stable Management Fee Revenue Management Business Revenues Management Fee as % of Avg. Fee Generating AUM ($mm) 8% 0.92 % 0.93 % 0.94 % 1.05 % 1.02 % 1.02 % $700 :2 GR 0 CA 4 -201 $579.3 $600 2 00 $558.3 $512.7 $500 Private Equity Capital M arkets $391.6 $400 2009 2010 Q1'11 Annualized $313.8 $300 M
Slide 25: Carried Interest is Major Source of Substantial Value
Carried Interest is Major Source of Substantial Value % of Portfolio Marks Valued Using Exchange $ in millions As of 3/31/11 or Broker Quotes(1) at 3/31/11 Carried Interest Receivable by Fund: Private Equity Fund VII $678 Private 42% Private Equity Fund VI 824 Equity Private Equity Fund V 165 Privat
Slide 26: AGM Key Balance Sheet Indicators
AGM Key Balance Sheet Indicators AGM Key Balance Sheet Indicators at March 31, 2011 ($mm, except per share data) (1) Cash and Cash Equivalents $ 460 G.P and L.P. Investments Held by AGM 298 Carried Interest Receivable 2,234 Net Carry Receivable Profit Sharing Payable 846 $1,388 Total Debt 751 (2) Q1
Slide 27: Summary
Summary Leading global alternative asset manager with a diversified and integrated platform 21 year history of industry-leading returns especially during periods of market turbulence Well positioned to capitalize on compelling growth dynamics in alternative asset management with established br
Slide 28: APO NYSE
es APO NYSE
Slide 29: Agenda
Agenda 1. Executive Summary 2. Business Overview 3. Industry, Growth & Strategy 4. Financials Appendix 28
Slide 30: ENI to GAAP Earnings Reconciliation
ENI to GAAP Earnings Reconciliation ($'s in millions) For Quarter‐Ended March 31, 2011 Reconciliation of GAAP Net Income to ENI and Adjusted ENI Net Income attributable to Apollo Global Management, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38.2 Impact of non‐cash charges
Slide 31: Endnotes
Endnotes Footnotes from Page 5: (1) S&P data as of March 31, 2010. (2) Cambridge Associates LLC U.S. Private Equity Index® and Selected Benchmark Statistics, December 31, 2010, the most recent data available. Returns represent End-to- End Pooled Mean Net to Limited Partners (net of fees, expenses an
Slide 32: Endnotes (continued)
Endnotes (continued) Footnotes From Page 16: (1) Source: Pensions & Investments Online. Based on average portfolio asset allocations of Top 5 public pensions.“Largest Areas” includes allocations to public equities, fixed income and cash.“Smallest Areas” includes allocations to alternatives, real est
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