Q1 2024 Apollo Global Management Inc Earnings Call Transcript
Key Points
- Apollo Global Management Inc reported strong first quarter financial results with FRE of $462 million, up 16% year-over-year, and SRE of $817 million, up 19% year-over-year.
- The company declared a quarterly cash dividend of approximately $0.46 per share, reflecting a new higher annual run rate level of $1.85 per share.
- Record inflow of $20 billion for the quarter, demonstrating robust capital formation and investor confidence.
- Significant derisking of the floating rate book, reducing exposure to $16 billion, aligning with more normalized interest rates and reducing sensitivity to rate fluctuations.
- Strong momentum in asset origination with $40 billion for the quarter, highlighting Apollo's capacity to generate high-quality investment opportunities.
- Alternatives slightly underperformed compared to historical norms, which could impact the expected returns from these investments.
- Higher cash balances due to back-end loaded origination, which could affect short-term investment efficiency.
- The legal challenges in the pension risk transfer (PRT) market could potentially dampen volume and affect business in this segment.
- Exposure to floating rate securities, while reduced, still presents a risk if interest rates fluctuate significantly.
- Dependence on continued strong capital inflows to sustain growth, which could be impacted by market volatility or investor sentiment changes.
Good morning, and welcome to Apollo Global Management's First Quarter 2024 Earnings Conference Call. (Operator Instructions) This conference call is being recorded.
This call may include forward-looking statements and projections, which do not guarantee future events or performances. Please refer to Apollo's most recent SEC filings for risk factors related to these statements.
Apollo will be discussing certain non-GAAP measures on this call which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP measures in Apollo's earnings presentation, which is available on the company's website. Also note that nothing on this call constitutes an offer to sell or a solicitation for an offer to purchase an interest in any Apollo fund.
I will now turn the call over to Noah Gunn, Global Head of Investor Relations.
Thanks, operator, and welcome again, everyone, to our call. Earlier
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