Q4 2023 Earnings Release

February 8, 2024Apollo Global Management, Inc. Reports Fourth Quarter and Full Year 2023 Results~PAGE-BREAK~Amid a volatile market backdrop in 2023, Apollo was firing on all cylinders.We generated exceptional results highlighted by Fee and Spread Related Earnings growth exceeding 25% and nearly $160 billion of inflows.Entering 2024, we are employing discipline at every tuas we continue to provide our clients with excess retuper unit of risk.Apollo Reports Fourth Quarter and Full Year 2023 ResultsNew York, February 8, 2024 - Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, "Apollo") today reported results for the fourth quarter and full year ended December 31, 2023.DividendApollo Global Management, Inc. has declared a cash dividend of $0.43 per share of its Common Stock for the fourth quarter ended December 31, 2023.This dividend will be paid on February 29, 2024 to holders of record at the close of business on February 20, 2024.Apollo Global Management, Inc. has also declared and set aside for payment a cash dividend of $0.8438 per share of its Mandatory Convertible Preferred Stock, which will be paid on April 30, 2024 to holders of record at the close of business on April 15, 2024.The declaration and payment of dividends on the Common Stock and the Mandatory Convertible Preferred Stock are at the sole discretion of Apollo Global Management, Inc.'s board of directors.Apollo cannot assure its stockholders that they will receive any dividends in the future.Conference CallApollo will host a public audio webcast on Thursday, February 8, 2024 at 8:30 a.m.EasteTime.During the webcast, members of Apollo's senior management team will review Apollo's financial results for the fourth quarter and full year ended December 31, 2023.The webcast may be accessed at ir.apollo.com.For those unable to listen to the live broadcast, there will be a replay of the webcast available at the same link one hour after the event.Apollo distributes its earnings releases via its website and email distribution lists.Those interested in receiving firm updates by email can sign up for them at ir.apollo.com.Marc Rowan Chief Executive Officer~PAGE-BREAK~About ApolloApollo is a high-growth, global alternative asset manager.In our asset management business, we seek to provide our clients excess retuat every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity.For more than three decades, our investing expertise across our fully integrated platform has served the financial retuneeds of our clients and provided businesses with innovative capital solutions for growth.Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions.Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes.As of December 31, 2023, Apollo had approximately $651 billion of assets under management.To leamore, please visit www.apollo.com.Forward-Looking StatementsIn this press release, references to "Apollo," "we," "us," "our" and the "Company" refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require.This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.These statements include, but are not limited to, discussions related to Apollo's expectations regarding the performance of its business, its liquidity and capital resources and other non-historical statements.These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management.When used in this press release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements.Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, interest rate fluctuations and market conditions generally, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management's assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene's ability to maintain or improve financial strength ratings, the impact of Athene's reinsurers failing to meet their assumed obligations, Athene's ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others.We believe these factors include but are not limited to those described under the section entitled "Risk Factors" in our annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 1, 2023 and our quarterly report on Form 10-Q filed with the SEC on November 7, 2023, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov.These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our other filings with the SEC.We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.This press release does not constitute an offer of any Apollo fund.Investor and Media Relations ContactsFor investors please contact:Noah GunnGlobal Head of Investor RelationsApollo Global Management, [email protected] media inquiries please contact:Joanna RoseGlobal Head of Corporate CommunicationsApollo Global Management, [email protected]~PAGE-BREAK~Apollo Global Management, Inc. Fourth Quarter and Full Year 2023 Earnings~PAGE-BREAK~4Q'23  Per Share  FY'23  Per ShareGAAP Financial Measures ($ in millions, except per share amounts)Net Income Attributable to Apollo Global Management, Inc. Common Stockholders  $2,861  $4.75  $5,130  $8.53Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts)Fee Related Earnings ("FRE")  $457  $0.74  $1,768  $2.92Spread Related Earnings ("SRE")  $748  $1.21  $3,108  $5.13Fee and Spread Related Earnings  $1,205  $1.95  $4,876  $8.05Principal Investing Income ("PII")  $51  $0.08  $83  $0.13Adjusted Net Income ("ANI")  $1,182  $1.91  $4,082  $6.74Assets Under Management ($ in billions)Total Assets Under Management ("AUM")  $651Fee-Generating AUM ("FGAUM")  $493 4Q'23  FY'23Business Drivers ($ in billions)Inflows  $32  $157Gross Capital Deployment  $45  $148Debt Origination  $30  $97Fourth Quarter and Full Year 2023 Financial Highlights• GAAP Net Income Attributable to Apollo Global Management, Inc. Common Stockholders was $2.9 billion and $5.1 billion for the quarter and full year ended December 31, 2023, respectively, or $4.75 and $8.53 per share, respectively• Apollo's primary non-GAAP earnings metric, Adjusted Net Income, which represents the sum of FRE, SRE, and PII, less HoldCo interest and other financing costs and taxes, totaled $1.2 billion and $4.1 billion, or $1.91 and $6.74 per share, in the fourth quarter and full year, respectivelyNote: 2022 amounts throughout this document have been retrospectively adjusted in accordance with the requirements of the adoption guidance of the accounting standard relating to Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This presentation contains non-GAAP financial information and defined terms which are described on pages 31 to 35. The non-GAAP financial information contained herein is reconciled to GAAP financial information on pages 26 to 30. Per share calculations are based on end of period Adjusted Net Income Shares Outstanding. FY'23 per share amounts represent the sum of the last four quarters. See page 21 for the share reconciliation. "NM" as used throughout this presentation indicates data has not been presented as it was deemed not meaningful, unless the context otherwise provides.  1~PAGE-BREAK~(In millions, except per share amounts)  4Q'22  3Q'23  4Q'23  FY'22  FY'23RevenuesAsset ManagementManagement fees  $403  $462  $444  $1,503  $1,772Advisory and transaction fees, net  157  157  141  443  623Investment income (loss)  321  292  150  796  1,032Incentive fees  10  18  21  27  80Retirement ServicesPremiums  869  26  3,586  11,638  12,749Product charges  193  217  226  718  848Net investment income  2,481  3,166  3,354  8,148  12,080Investment related gains (losses)  105  (2,624)  2,621  (12,717)  1,428Revenues of consolidated variable interest entities  292  318  495  440  1,441Other revenues  10  563  8  (28)  591Total Revenues  4,841  2,595  11,046  10,968  32,644ExpensesAsset ManagementCompensation and benefits  (514)  (557)  (979)  (1,943)  (2,722)Interest expense  (30)  (36)  (47)  (124)  (145)General, administrative and other  (210)  (220)  (229)  (682)  (872)Retirement ServicesInterest sensitive contract benefits  (1,119)  (333)  (2,595)  (538)  (6,229)Future policy and other policy benefits  (1,235)  (368)  (4,088)  (12,465)  (14,434)Market risk benefits remeasurement gains (losses)  (32)  441  (570)  1,657  (404)Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired  (126)  (211)  (186)  (444)  (688)Policy and other operating expenses  (387)  (467)  (481)  (1,372)  (1,837)Total Expenses  (3,653)  (1,751)  (9,175)  (15,911)  (27,331)Other Income (Loss) - Asset ManagementNet gains (losses) from investment activities  1  (32)  21  165  7Net gains (losses) from investment activities of consolidated variable interest entities  29  49  35  494  130Other income (loss), net  12  22  34  38  136Total Other Income (Loss)  42  39  90  697  273Income (loss) before income tax (provision) benefit  1,230  883  1,961  (4,246)  5,586Income tax (provision) benefit  (223)  (243)  1,749  739  1,052Net income (loss)  1,007  640  3,710  (3,507)  6,638Net (income) loss attributable to non-controlling interests  (367)  42  (825)  1,546  (1,462)Net income (loss) attributable to Apollo Global Management, Inc.  640  682  2,885  (1,961)  5,176Preferred stock dividends  -  (22)  (24)  -  (46)Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders  $640  $660  $2,861  $(1,961)  $5,130Earnings (Loss) per shareNet income (loss) attributable to Common Stockholders - Basic  $1.06  $1.10  $4.75  $(3.43)  $8.53Net income (loss) attributable to Common Stockholders - Diluted  $1.06  $1.10  $4.65  $(3.43)  $8.49Weighted average shares outstanding - Basic  583  579  584  585  581Weighted average shares outstanding - Diluted  583  579  601  585  589GAAP Income Statement (Unaudited)21. 4Q'23 and FY'23 include a one-time tax benefit of $1.9 billion resulting from the establishment of deferred tax assets related to the Government of Bermuda's enactment of the Corporate Income Tax Act 2023.~PAGE-BREAK~Fourth quarter results complete a strong year of growth and execution against 2023 targets• Solid quarterly and record annual FRE of $457 million and $1.8 billion, respectively, driven by strong fee revenue growth and well-controlled expenses, which together generated significant margin expansion• Solid quarterly and record annual SRE of $748 million and $3.1 billion, respectively, driven by robust organic growth and strong new business profitability• Combined, FRE and SRE totaled $1.2 billion in the fourth quarter and $4.9 billion in 2023, increasing more than 25% year-over-year and showcasing the attractive and growing earnings power of the Asset Management and Retirement Services businesses• Total AUM of $651 billion benefited from total inflows of $32 billion in the fourth quarter and $157 billion in 2023 Delivered meaningful progress on three strategic growth pillars• Origination: Debt origination volume totaled $30 billion in the fourth quarter and $97 billion in 2023, with platforms contributing approximately half of total origination volume for both the quarter and full year• Global Wealth: Raised more than $8 billion of capital during 2023 from a combination of successful product launches, ongoing distribution expansion, and continued education focused on providing solutions for individual investors• Capital Solutions: Robust fee revenue growth of 30% year-over-year reflects the expanding scope and integration of Apollo's capital markets business with firm-wide deployment activity Strategically allocating capital to drive stockholder value• Buybacks: Repurchased more than $800 million of common stock in 2023• Dividends: Paid more than $1 billion, or $1.72 per share, of common stock dividends in 2023 and intend to distribute an annual dividend of $1.85 per share of common stock commencing with the first quarter 2024 dividend• Investments: Allocated a minimal amount of capital to fund strategic investments given an abundance of organic initiativesFourth Quarter and Full Year 2023 Business Highlights✓✓31.The declaration and payment of any dividends are at the sole discretion of the Apollo Global Management, Inc. board of directors, which may change the dividend policy at any time, including, without limitation to, to eliminate the dividend entirely.~PAGE-BREAK~($ in millions, except per share amounts)  4Q'22  3Q'23  4Q'23  FY'22  FY'23Management fees  $561  $648  $635  $2,134  $2,480Capital solutions fees and other, net  142  146  116  414  538Fee-related performance fees  26  40  44  72  146Fee-related compensation  (198)  (212)  (200)  (754)  (835)Non-compensation expenses  (137)  (150)  (138)  (456)  (561)Fee Related Earnings   $394  $472  $457  $1,410  $1,768Net investment spread  905  1,100  959  3,210  4,025Other operating expenses  (127)  (121)  (119)  (462)  (481)Interest and other financing costs  (80)  (106)  (92)  (279)  (436)Spread Related Earnings  $698  $873  $748  $2,469  $3,108Fee and Spread Related Earnings  $1,092  $1,345  $1,205  $3,879  $4,876Principal Investing Income   $27  $4  $51  $284  $83Segment Income  $1,119  $1,349  $1,256  $4,163  $4,959HoldCo interest and other financing costs  (19)  (36)  (11)  (122)  (88)Taxes and related payables  (197)  (268)  (63)  (795)  (789)Adjusted Net Income  $903  $1,045  $1,182  $3,246  $4,082ANI per share  $1.51  $1.71  $1.91  $5.42  $6.741.Represents interest and other financing costs related to Apollo Global Management, Inc. not attributable to any specific segment.HoldCo interest and other financing costs for 3Q'23 includes $21 million related to the redemption of Apollo Asset Management's Series A and Series B Preferred Stock, representing the difference between the book value and the redemption value.Total Segment Earnings4~PAGE-BREAK~($ in millions, except per share amounts)  4Q'22  3Q'23  4Q'23  FY'22  FY'23Management fees  $561  $648  $635  $2,134  $2,480Capital solutions fees and other, net  142  146  116  414  538Fee-related performance fees  26  40  44  72  146Fee-related compensation  (198)  (212)  (200)  (754)  (835)Non-compensation expenses  (137)  (150)  (138)  (456)  (561)Fee Related Earnings   $394  $472  $457  $1,410  $1,768Net investment spread  905  1,100  959  3,210  4,025Other operating expenses  (127)  (121)  (119)  (462)  (481)Interest and other financing costs  (80)  (106)  (92)  (279)  (436)Notable items  35  (90)  -  3  (115)Spread Related Earnings, Excluding Notable Items  $733  $783  $748  $2,472  $2,993Fee and Spread Related Earnings, Excluding Notable Items  $1,127  $1,255  $1,205  $3,882  $4,761Principal Investing Income   $27  $4  $51  $284  $83Segment Income, Excluding Notable Items  $1,154  $1,259  $1,256  $4,166  $4,844HoldCo interest and other financing costs  (19)  (36)  (11)  (122)  (88)Taxes and related payables  (204)  (249)  (63)  (796)  (765)Adjusted Net Income, Excluding Notable Items  $931  $974  $1,182  $3,248  $3,991ANI per share, Excluding Notable Items  $1.55  $1.59  $1.91  $5.41  $6.58Total Segment Earnings, Excluding Notable Items5Note: Effective for the quarter ended December 31, 2023, the Company no longer reports Spread Related Earnings - Normalized.Instead the Company reports Spread Related Earnings, Excluding Notable Items.Notable Items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments.Notable Items were removed from Spread Related Earnings - Normalized historically, and are similarly removed from Spread Related Earnings, Excluding Notable Items.No changes were made to line-item balances deriving Spread Related Earnings.As a supplemental item, the Company provides the difference between management's long-term expectation of generating an 11% annual retuand reported alternative net investment income.See page 10 for further details.1.Refer to the Definitions section beginning on page 31 for relevant definitions.~PAGE-BREAK~Segment Details~PAGE-BREAK~

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Apollo Global Management Inc. published this content on 08 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 February 2024 11:30:21 UTC.