Apollo's Stellar Quarter: Rising Profits, Lofty Aspirations

Apollo Global Management exceeded profit expectations in the fourth quarter, driven by its credit strategies and robust retirement services. The company aims to manage $1 trillion by 2026, bolstered by a 21% rise in fee earnings and a significant growth in asset management. The firm's CEO, Marc Rowan, received a five-year extension.

Apollo Global Management reported better-than-expected profits for the fourth quarter on Tuesday, thanks to growth in fees and a strong retirement services sector. The alternative asset manager recorded an impressive $33 billion in inflows, primarily due to credit-focused strategies and wealth management products. Assets under management surged 15% to $751 billion.

The firm, setting ambitious targets, aims to manage $1 trillion by 2026 and $1.5 trillion by 2029. These results could propel Apollo toward its strategic goals laid out during its investor day last October, which includes plans to more than double its size in five years.

Key performance indicators showed remarkable growth, with adjusted net income rising 15% to $1.36 billion, outperforming analyst expectations of $1.89 per share. Fee-related earnings hit a record quarterly high of $554 million, and spread-related earnings from retirement services increased by 12% to $841 million.

(With inputs from agencies.)