Q2 2024 Apollo Global Management Inc Earnings Call Transcript
Key Points
- Apollo Global Management Inc (APO) reported record quarterly Fee-Related Earnings (FRE) of $516 million, or $0.84 per share, and Spread-Related Earnings (SRE) of $710 million, or $1.15 per share.
- The company achieved adjusted net income of $1 billion, or $1.64 per share, showcasing strong financial performance.
- Apollo's private equity segment announced three significant transactions in the past 30 days, indicating robust deal activity.
- The hybrid equity vehicle, Triple-A, delivered a 10% return over the last 12 months and has shown positive returns for 16 consecutive quarters.
- The credit segment, the largest franchise, reported impressive performance with various vehicles achieving double-digit returns over the past 12 months.
- The roll-off of exceptionally profitable business put on during the peak of COVID impacted profitability for the quarter and is expected to affect the next quarter as well.
- The company faced headwinds in its strategic investments, particularly with Catalina, which has been underperforming.
- The bid-ask spread between buyers and sellers in the private equity market is persisting, hampering investment activity at the industry level.
- Athene's profitability was impacted by strategic hedging activities, which are expected to be a headwind to earnings growth this year.
- The company anticipates mid-single-digit FRE growth for the year, which is lower than the double-digit growth seen in previous years.
Good morning, and welcome to Apollo Global Management's Second 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 performance.
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 and excessive assessing the financial performance of the business.
These non-GAAP measures are reconciled to GAAP figures 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 solicitation of an offer to purchase an interest in any Apollo fund.
I would now like to turn the call over to Noah Gunn, Global Head of Investor Relations.
Thanks, operator, and welcome again, everyone to our call. We
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