Apollo Global Management reported $1.026 trillion in assets under management at the end of the first quarter, crossing the $1 trillion threshold for the first time, as fee-related earnings reached a record $728 million — up 30% from a year earlier.
Fee-related earnings jumped 30% to $728 million in the first quarter, while total inflows reached a record $115 billion
Cheng Xin / Getty Images
Apollo Global Management reported $1.026 trillion in assets under management at the end of the first quarter, crossing the $1 trillion threshold for the first time, as fee-related earnings reached a record $728 million — up 30% from a year earlier.
The company's quarterly adjusted net income came in at $1.21 billion, or $1.94 per share, an 8% increase over the prior-year period. Analysts had expected a profit of $1.93 per share, according to Reuters.
Measured on a GAAP basis, the firm swung to a net loss of $1.93 billion, or $3.27 per share, against net income of $418 million in the year-earlier quarter, according to Reuters. The loss reflected a one-time tax expense of $1.7 billion tied to a change in the tax treatment of its Bermuda-based insurance unit, as well as a $2.1 billion unrealized loss on investments in that unit.
The quarter's $115 billion in total inflows set a new record for the firm, bringing the trailing 12-month total to $300 billion, the company said. For context, Bloomberg noted that Blackstone gathered $68.5 billion over the same three-month stretch, and that KKR and Ares Management pulled in $27.8 billion and $29.5 billion, respectively. Wealthy retail investors contributed $4 billion of Apollo's quarterly inflows.
Fee-generating AUM rose 40% year-over-year to $836 billion, the company said. Capital solutions fees, which Apollo generates by arranging transactions spanning direct lending, asset-backed finance, and credit deals, climbed 60% to a record $246 million. Gross capital deployment reached $103 billion in the quarter.
Spread-related earnings from Apollo's retirement services segment fell 10.6% year-over-year to $719 million, the company said. The decline was driven by lower returns from its alternative investment portfolio, including reduced contributions from its Atlas SP unit. A 1% quarterly loss in the asset-backed finance strategy was tied to reduced contributions from Atlas SP, Apollo's structured-credit affiliate, which had extended financing to U.K. mortgage lender Market Financial Solutions before the lender's February collapse.
Returns varied by strategy. The flagship private equity fund fell 0.3%, while the hybrid value fund, which combines debt and equity, gained 4%.
CEO Mark Rowan announced the $1 trillion goal in 2021, framing it as a five-year ambition to catch rivals such as Blackstone by scaling across insurance, credit, and private equity, according to Reuters. With that milestone now cleared, the firm has set its sights on $1.5 trillion in AUM by 2029. "Our first quarter results set a strong tone for the year, with record fee-related earnings and assets under management surpassing $1 trillion," Rowan said in a statement.
Shares were trading about 2.8% higher ahead of the open, according to Reuters.
Apollo declared a quarterly cash dividend of $0.5625 per share of common stock, payable May 29.
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