Apollo Global Management Soars: Profits Up and Ambitious Targets Set

Apollo Global Management posted stronger-than-expected profits in Q4, driven by fee growth and retirement services. The asset manager reported a 15% rise to $1.36 billion in adjusted net income. Their ambitious targets include managing $1 trillion by 2026. Shares increased 4% in premarket trading.

Apollo Global Management has reported a strong performance for its fourth quarter, surpassing profit expectations with a boost from increased fees and robust retirement business growth. This positive news sent the company's share price up by 4% in premarket trading on Tuesday.

The alternative asset management firm saw $33 billion in inflows, notably through its credit-focused strategies and wealth products. This influx contributed to a 15% increase in assets under management, now totaling $751 billion. Looking ahead, Apollo has set ambitious targets to manage $1 trillion in assets by 2026 and $1.5 trillion by 2029.

Analysts' estimates had anticipated $1.89 per share, yet Apollo's adjusted net income rose by 15% to reach $1.36 billion, or $2.22 per share. The company's fee-related earnings hit a record $554 million, while spread-related earnings for its retirement services climbed by 12%, amounting to $841 million. Additionally, Apollo announced $61 billion in capital origination, highlighting its focus on identifying credit financing opportunities. CEO Marc Rowan, considered for the Treasury secretary role under Trump, received a five-year extension. Apollo shares have climbed 62% over the past year.

(With inputs from agencies.)