APO-PA — Apollo Global Management, Inc.

Summary of Apollo Global Management Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Adjusted Net Income: $1.4 billion, or $2.17 per share, up 17% year-over-year.
• Fee-Related Earnings (FRE): $652 million, a 23% increase year-over-year.
• Management Fees: Grew 22% year-over-year.
• Spread-Related Earnings (SRE): $846 million (excluding notables), with an estimated Q4 SRE of approximately $880 million, leading to a full-year growth of about 8%.
• Assets Under Management (AUM): Reached $908 billion, a 24% increase year-over-year.
• Origination Volume: $75 billion in the quarter, bringing the last 12 months' total to over $270 billion, exceeding prior targets.

2. Strategic Updates and Business Highlights:

• Strong Origination: Emphasized as the lifeblood of the business, with a focus on financing sectors such as infrastructure, energy, and retirement services.
• Robust Inflows: Total inflows of $82 billion for the quarter, with $59 billion from asset management and $23 billion from retirement services.
• Acquisition of Bridge: Closed on September 2, expected to contribute approximately $300 million in annual fee-related revenues.
• Expansion of Markets: Identified five new markets for growth, including insurance and traditional asset management, with a focus on integrating private assets into these channels.

3. Forward Guidance and Outlook:

• 2026 Expectations: Projecting FRE growth of over 20% and SRE growth of 10%, assuming stable market conditions.
• Long-term Growth: Aiming for average annual growth targets of 20% for FRE and 10% for SRE through 2029.
• Retirement Services: Anticipating continued strong demand due to a global retirement crisis, with a focus on guaranteed income products.

4. Challenges and Points of Concern:

• Market Conditions: Concerns about tight credit spreads and the impact on capital efficiency and ROE.
• Origination Constraints: Acknowledged that growth may be limited by the ability to find quality investments rather than capital raising.
• Cultural Concerns: Emphasis on maintaining preferred employer status and the potential risks associated with industry culture.
• Credit Quality Risks: Addressed concerns raised by competitors regarding private letter ratings and systemic risks in the insurance sector, asserting that Athene maintains a strong credit profile.

5. Notable Q&A Insights:

• Origination Targets: Management indicated that while origination volumes are exceeding expectations, they are not ready to revise long-term targets yet.
• Wealth Management Growth: Discussions highlighted the potential for significant inflows from traditional asset managers as they seek to incorporate private assets into their offerings.
• 401(k) Market: Progress is being made in integrating private assets into retirement plans, though widespread adoption is still in the information-gathering phase.
• Market Making and Partnerships: Emphasized the importance of transparency and collaboration with traditional asset managers to facilitate the integration of private assets into their portfolios.

Overall, Apollo Global Management reported a strong quarter with solid financial performance, strategic growth initiatives, and a positive outlook, while also acknowledging market challenges and the need for continued focus on origination and credit quality.