Apollo Global Management has reported second-quarter earnings ahead of analyst expectations, driven by record fee-related earnings and robust net inflows, as the firm continues to capitalise on its growing credit platform and insurance-backed funding model, according to a report by Reuters.
The New York-based alternative asset manager posted adjusted net income of $1.18bn, or $1.92 per share, for the three months to 30 June, surpassing the consensus estimate of $1.84 per share, according to LSEG. Shares rose 2.3% following the earnings announcement.
Fee-related earnings climbed 22% year-over-year to $627m, supported by a 25% increase in credit management fees. Equity-related fees grew at a more modest 12%, as tougher exit conditions continue to weigh on private equity realisations.
Apollo reported $61bn in net inflows, including capital from third-party investors, assets added via an acquisition of a smaller manager, and growth from Athene, its insurance arm, which the firm fully acquired in 2021. Total AUM now stands at $840bn, up 21% year-on-year.
Despite the subdued deal exit environment, Apollo booked $219m in performance-related fees from a handful of larger monetisations. However, management signalled that broader PE exit activity remains restrained due to market uncertainty.
Apollo’s origination platform — which facilitates direct lending to corporates — recorded $81bn in volumes during the quarter, helping to further boost fee generation.
The firm continues to double down on its private credit franchise and insurance capital model, positioning itself to meet growing demand from investors seeking yield in a high-rate environment.
Apollo is currently exploring new retail access vehicles, including a tokenised feeder fund and a private credit ETF in partnership with State Street.
