Apollo Global Management reported a 12% rise in third-quarter profit on Tuesday, outperforming Wall Street expectations as it secured more assets and originated record levels of debt and other capital, according to a report by Reuters.
The alternative asset manager posted an adjusted net income of $1.13bn, or $1.85 per share, for the quarter ending 30 September, surpassing analysts’ forecast of $1.72 per share, according to LSEG data.
Apollo’s shares rose 8.1% in early trading to $150.71, pushing its market capitalisation to approximately $85.7bn, with the stock having now climbed 61.8% so far this year.
The company achieved a record $531m in fee-related earnings from asset management and deal financing, driven by an all-time high of $62bn in origination volume across debt, credit, and equity investments.
In October, Apollo committed to providing a €1bn ($1.09bn) capital solution to Germany’s largest real estate group, Vonovia (VNAn.DE). It also saw strong interest from individual investors eager to access the private credit market, contributing to fresh capital inflows.
Apollo’s retirement services arm reported $856m in income, slightly down from the previous year, but marking its second-highest quarterly total in this segment. The company benefitted from demand for private credit products as the US Federal Reserve started loosening policy rates, though rates remain relatively high.
Total assets under management (AUM) reached $733bn, reflecting a 16% increase year-over-year, driven by gains in asset management and retirement services. This growth was partially offset by $60bn in outflows and $27bn in divested assets. Apollo also held $64bn in undeployed capital and invested $76bn across various assets. The firm declared a quarterly dividend of 46.25 cents per share.
