On Tuesday, Apollo Global Management Inc. (APO.N) reported that its first-quarter adjusted net income decreased 8% year-over-year, missing projections due to reduced asset sales.
Apollo, like its peers, struggled to sell its private equity assets for top dollar in the quarter due to a dealmaking downturn. However, its asset management and retirement businesses mitigated the damage.
Apollo reported $845 million adjusted net income, down from $917 million last year. Refinitiv data shows adjusted net income per share of $1.42, below the average expert projection of $1.47.
Performance fees, largely from asset sales, fell 96% to $8 million for Apollo. In addition, its peers Blackstone Inc (BX.N), Carlyle Group Inc (CG.O), and KKR & Co Inc (KKR.N) all announced a sharp drop in asset sales that hurt first-quarter profitability.
As it added assets, Apollo’s fee-related earnings rose 28% to over $400 million, a quarterly record.
Higher interest rates helped them gain $688 million from investing in Athene’s assets. Apollo, located in New York, informed investors that the two profit streams would continue to account for more than 90% of its pre-tax earnings.
Apollo’s private equity portfolio climbed 5.1%, corporate credit funds 3.3%, and hybrid value funds 3.2% in the first quarter. Blackstone, Carlyle, and KKR private equity funds gained 2.8%, 1%, and 2%.
Apollo earned $1 billion from Athene-underwritten premiums, contrasted to a $401 million loss under GAAP.
Apollo raised $57 billion and spent $33 billion on new assets in the first quarter, leaving $57 billion unspent. End-March assets under management were approximately $600 billion. Dividends were 43 cents per share.
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