Apollo Global Management Surpasses Profit Expectations Amid Private Asset Growth

Apollo Global Management reported a better-than-expected fourth-quarter profit, fueled by growth in fee-related and retirement services. With a 15% increase in assets under management to $751 billion, the company aims to manage $1 trillion by 2026. Apollo shares fell 2.5% despite strong financials.

Apollo Global Management reported fourth-quarter profits that exceeded expectations, buoyed by strong fee growth and robust performance in its retirement business. The private asset sector has been increasingly recognized for its value, a sentiment echoed by CEO Marc Rowan, despite a historical perception of risk.

In the reported quarter, Apollo attracted $33 billion in inflows, largely due to its credit-focused strategies and wealth products, resulting in a 15% rise in assets under management to $751 billion, though slightly below the estimated $757.2 billion. Shares fell 2.5% to $162.95, with Rowan emphasizing the firm's goal of delivering planned growth rather than rapid expansion.

Setting ambitious targets, Apollo aims to manage $1 trillion in assets by 2026 and $1.5 trillion by 2029. Its adjusted net income rose 15% to $1.36 billion or $2.22 per share, surpassing analysts' expectations. The company recorded $554 million in fee-related earnings and $841 million in spread-related earnings. Apollo maintained a $61 billion unspent capital reserve and deployed $63 billion in investments amid market challenges.

(With inputs from agencies.)