APOLLO GLOBAL MANAGEMENT, INC (NYSE: APO) Apollo Global Management Investor Presentation September 2019
Apollo Overview
Apollo is a Leading Alternative Investment Manager Apollo Global Management is a leading global alternative investment manager with expertise in credit, private equity, and real assets APO 312 billion 13.8 154 billion 39% Total…
Apollo Has a Globally Diversified Platform Across Asset Classes Firm Profile1 Business Segments Founded: 1990 Credit Private Equity Real Assets AUM: 312 billion 201bn AUM 77bn AUM 33bn AUM Corporate Credit Opportunistic buyouts…
Deep Bench of Senior Management Talent Senior Leadership Leon Black Josh Harris Marc Rowan Scott Kleinman Founder Co-Founder Co-Founder Co-President Chairman and CEO Senior Managing Director Senior Managing Director Lead Partner,…
Assets Under Management Have Grown More than 5x in 10 Years AUM growth over the past ten years driven by the proliferation of yield-oriented permanent capital vehicles and continued success in opportunistic investing businesses Total…
AUM Growth Has Driven Expansion of Fee-Related Earnings (FRE) FRE growth driven by 15% CAGR in management fees since IPO and continued cost control Management Fees (mm) Fee-Related Earnings (FRE)1 (mm) CAGR Since IPO = 15% 1,410 CAGR…
Despite Market Volatility, Management Fees Have Been Durable and Have Continued to Grow at a Robust Pace Significant Market Volatility 1,410 Significant 1,283 Market Volatility 1,082 Financial Crisis 978 901 912 2008 S&P…
Permanent Capital Vehicles A Strategic Differentiator Permanent Capital AUM Permanent Capital Fee Generating AUM1 ( billions) ( billions) 154 Permanent Capital FGAUM Permanent Capital AUM 148 % of Total AUM 136 % of Total FGAUM 131…
Accelerated and Diversified Growth Through Cycle Apollo Total AUM ( billions) 312 CAGR 280 20% 249 192 161 160 170 113 75 54 68 44 2008 20073 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2Q19 and prior Examples of…
Six Insurance Capabilities to Provide Solutions for Growth Apollo has established a broad in-house insurance capability, with approximately 150 investment professionals dedicated to FIG and insurance strategies Recently announced two…
Apollo Has a Clear Path for Continued Growth Apollo will continue to identify opportunities to leverage its existing platform and diversify into areas with meaningful synergies with its core business Favorable Secular Trends Growth…
Proven Ability to Raise Capital Globally Apollos Fundraising Capabilities Global Base of Long-Term Investors Latin America Integrated global team structure incorporating sales Middle East 1% coverage, product specialists, and investor…
Long Track Record of Success in Private Equity Traditional Private Equity Fund Performance: 39% Gross & 25% Net IRR Since Inception (1990) 39% 25% 21% 18% 19% 14% 13% 13% 12% 8% 9% 5% 3% 4% 1 2 3 Barclays Government…
Asset Light Model with High Distribution of Earnings Since its IPO in 2011, APO has distributed 17.58 in cash per Class A share 5% yield last twelve months during light realization period1 Continuation of current dividend policy…
Valuation Framework: Sum-of-the-Parts (SOTP)1 SOTP approach utilizes three components to derive current fair value for APO FEE RELATED EARNINGS (FRE) VALUE Value FRE at a target price-to-earnings multiple that reflects growth & margin…
Sum-of-the-Parts (SOTP) Valuation Summary for APO1 FEE RELATED EARNINGS (FRE) VALUE 1 2.05 FRE per share after-tax (based on average 2020E consensus sellside estimates for FRE) 41 - 47 20-23x P/E multiple based on fundamentals…
Financial Information
Drivers of Apollo Business Business model driven by fee related revenues, performance fees, and balance sheet investments across three segments Credit Private Equity Real Assets Total AUM1 201bn 77bn 33bn 312bn Fee- Generating…
Solid, Stable Balance Sheet During the second quarter, 1.0 million Class A shares were repurchased for 29.1 million in open market transactions as part of the Companys publicly announced share repurchase program7 On June 10, 2019,…
Reconciliation of GAAP to Financial Measures ( in thousands) FY14 FY15 FY16 FY17 FY18 LTM 2Q19 GAAP Net Income (Loss) Attributable to Apollo Global Management, Inc. Class A Shareholders 168,229 134,497 402,850 615,566 (42,038) 261,501…
Investment Records as of June 30, 2019 Committed Total Invested Realized Remaining Unrealized Total ( in millions) Vintage Year Total AUM Capital Capital Value Cost Value Value Gross IRR Net IRR Private Equity: Fund IX 2018 24,522…
Investment Records as of June 30, 2019 Permanent Capital Vehicles Total Returns7 ( in millions) IPO Year8 Total AUM 2Q'19 YTD'19 2Q'18 YTD'18 FY18 Credit: MidCap9 N/A 9,064 5% 8% 5% 9% 19% AIF 2013 376 3 12 1 3 (5) AFT 2011 404 3 8…
Endnotes & Definitions Assets Under Management, or AUM, refers to the assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services, including, without…
Endnotes & Definitions (continued) Segment Distributable Earnings, or Segment DE, is the key performance measure used by management in evaluating the performance of Apollos credit, private equity and real assets segments. Management uses…
Endnotes & Definitions (continued) Net IRR of a real assets fund represents the cumulative cash flows in the fund (and not any one investor in the fund), on the basis of the actual timing of cash inflows received from and outflows paid…
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