Apollo Global Management reported on Wednesday that its earnings from fees for the first quarter reached all-time highs as its assets under management exceeded $1 trillion.
Due to a 30% increase in earnings from asset management and debt and equity transactions, adjusted net income increased 8% to $1.21 billion, or $1.94 per share, compared to the same time last year.
Founded in 1990, New York-based Apollo first concentrated on private equity before expanding to become a significant lender.
After assuming control of Athene, a retirement services company, it strengthened its insurance business in 2021.
The $1 trillion goal CEO Marc Rowan set for this year was surpassed by assets under management. By 2029, the corporation wants to reach $1.5 trillion.
Before the bell, the company’s shares were up almost 1.3%.
For months, investors have put pressure on Apollo and other managers of alternative assets, including real estate, private equity, and private credit, due to concerns about slower future growth and the standards used in direct lending. Despite this, many have kept posting inflows.
Apollo shares are still down 10% for the year, but they have recovered from the early March lows.
The acquisition of UK insurer Pensions Insurance Corporation through Athora, a European organization Apollo founded, contributed to the quarter’s $115 billion in inflows. $4 billion was contributed by wealthy individual investors.
According to generally accepted accounting principles (GAAP), Apollo recorded a $1.9 billion net loss attributable to common stockholders. The primary cause of this was $2.1 billion in unrealized losses on retirement business investments.
In the first quarter, returns from its direct lending funds—a portion of private credit that has recently come under scrutiny—were 0.5%, down from 8.5% over the previous 12 months.
Smaller competitors KKR and Blue Owl have also recorded poor results in that business at that time.
Apollo’s flagship private equity funds and asset-backed finance funds reported losses of 0.3% and 1%, respectively. Rowan has identified hybrid value as a growth driver, and it yielded a 4% return.
