Apollo profit jumps 15% with record fees
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The news: Apollo Global Management’s fourth-quarter profit exceeded expectations, with adjusted net income rising 15% to USD1.36 billion ($2.19 billion) or USD2.22 per share, and record fee earnings from its wealth business.
The numbers: Analysts were expecting a profit of USD1.89 per share, according to estimates compiled by LSEG.
Fee-related earnings increased 21% to a record USD554 million, while spread-related earnings rose 12% to USD841 million.
Assets under management grew 15% to USD751 billion, with USD33 billion in inflows. Apollo raised a record USD12 billion from private wealth in 2024, increasing assets in that segment by 50%.
The context: Apollo is accelerating its expansion in private wealth and credit markets, focusing on credit origination and targeting USD1 trillion in assets under management by 2026 and USD1.5 trillion by 2029.
Co-founder and CEO Marc Rowan, who was reported to be a contender for the Treasury secretary role in Donald Trump’s second administration, extended his contract for five years.
Meanwhile, Bloomberg reported the company has built a USD5 billion multi-strategy credit fund with a 30-year maturity, in a move to attract insurance-industry cash. Over the year, the company saw net credit inflows of USD90.44 billion.
Apollo reported USD61 billion in origination volume during the three months to December and deployed USD63 billion in investments. Shares fell 2.55% in morning trading.
What they said: “Entering 2025, our growth strategy is clear, our team is focused on execution, and we are playing to win,” CEO Marc Rowan said in a statement.
“Our fourth quarter results punctuate a very strong year of performance for Apollo. 2024 highlights include record origination activity exceeding USD220 billion, inflows of more than USD150 billion, and assets under management surpassing USD750 billion.”
The sources: Apollo release , Bloomberg
