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Apollo Global Management, Inc.

APO
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Business Summary

Apollo Global Management, Inc. operates in the global alternative asset management and retirement services industries, conducting business primarily in the U.S. through three reportable segments: Asset Management, Retirement Services, and Principal Investing. The Asset Management segment focuses on credit and equity investing strategies, with total AUM of $938.4 billion as of December 31, 2025. The Retirement Services segment is conducted by Athene, a leading financial services company specializing in issuing, reinsuring, and acquiring retirement savings products. The Principal Investing segment comprises realized performance fee income, realized investment income from balance sheet investments, and certain allocable corporate expenses. The industry is intensely competitive, with competition based on investment performance, business reputation, quality of service, and the level of fees and expenses charged for services.

Apollo operates in highly competitive industries, competing globally with a large number of investment management firms, private equity and credit fund sponsors, insurance and reinsurance companies, broker-dealers, and other financial institutions. In the asset management business, competition is based on factors including investment performance, business relationships, quality of service, brand recognition, and fund terms. In the retirement services business, Athene faces competition from traditional carriers and new entrants in the annuity market, with key competitive factors including initial crediting rates, product features, brand recognition, distribution capabilities, and financial strength ratings. Apollo believes its integrated platform, contrarian value-oriented investment approach, and ability to source and consummate large and complex transactions provide competitive advantages.

Apollo generates revenue through its Asset Management segment by earning management fees for providing investment management services, which are typically based on net asset value, gross assets, capital commitments, or invested capital. The company also earns advisory and transaction fees, performance fees based on fund performance, capital solutions fees, and property management fees. The Retirement Services segment generates spread income by combining the sourcing of long-term liabilities with the origination of assets, earning the difference between investment income on net invested assets and the cost of funds, including crediting rates on annuities and institutional product costs. The company sources capital from a diverse base including public and private pension funds, sovereign wealth funds, insurance companies, private wealth platforms, and individual investors.

The Asset Management segment focuses on credit and equity investing strategies. Credit is the largest strategy with $749.2 billion of AUM as of December 31, 2025, spanning direct origination ($302.1 billion of AUM), asset-backed finance ($282.7 billion of AUM), opportunistic credit ($50.0 billion of AUM), and multi-credit ($40.9 billion of AUM). The equity strategy represents $189.2 billion of AUM as of December 31, 2025, encompassing corporate private equity ($78.8 billion of AUM), hybrid value ($17.7 billion of AUM), AAA ($25.6 billion of AUM), real estate equity ($47.9 billion of AUM), and infrastructure and clean transition equity ($21.6 billion of AUM). The traditional private equity funds have generated a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through December 31, 2025 .

The Retirement Services segment, conducted by Athene, principally offers annuities and funding agreements. Annuity products include fixed rate annuities, fixed indexed annuities (FIAs), registered index-linked annuities (RILAs), payout annuities, private placement variable annuities (PPVAs), and group annuities. FIAs are the largest percentage of Athene's net reserve liabilities. Athene distributes products through four dedicated channels: retail, flow reinsurance, institutional, and acquisitions and block reinsurance. The retail channel utilizes a network of 41 independent marketing organizations (IMOs) , 18 banks , and 163 broker-dealers , collectively representing approximately 152,000 independent agents in all 50 states. As of December 31, 2025, approximately 24% of Athene's deferred annuity account value contained rider benefits. The weighted average base surrender charge was 6% for Athene's deferred annuities as of December 31, 2025.

On September 2, 2025, Apollo completed the acquisition of Bridge Investment Group Holdings Inc. in an all-stock transaction, expanding its real estate equity product offerings. As of December 31, 2025, Apollo had total AUM of $938.4 billion , with $535.6 billion of perpetual capital. Apollo managed or advised $392.2 billion of AUM in Athene Accounts, of which $386.5 billion was Fee-Generating AUM, and $57.2 billion of AUM in Athora Accounts, of which $55.2 billion was Fee-Generating AUM. For the year ended December 31, 2025, origination volumes were $309 billion . The Asset Management segment had approximately 4,130 employees , including 600 employees of Bridge , and the Retirement Services segment had approximately 2,010 employees as of December 31, 2025. Apollo had unfunded capital commitments of $553 million as of December 31, 2025. Athene estimates it had approximately $8.6 billion in capital available to deploy as of December 31, 2025, consisting of approximately $3.2 billion in excess equity capital, $2.6 billion in untapped leverage capacity, and $2.8 billion in available undrawn capital at ACRA.

Total revenues for the year ended December 31, 2025 were $37.6 billion , compared to $28.5 billion for the year ended December 31, 2024. Net income attributable to Apollo Global Management, Inc. was $4.0 billion for 2025, compared to $4.5 billion for 2024. Diluted earnings per share was $6.42 for 2025, compared to $7.31 for 2024. The Asset Management segment generated Segment Income of $5.0 billion in 2025, up from $4.2 billion in 2024. The Retirement Services segment generated Segment Income of $4.8 billion in 2025, up from $4.1 billion in 2024. The Principal Investing segment generated Segment Income of $1.4 billion in 2025, compared to $1.4 billion in 2024.

Business Outlook

Apollo is increasingly focused on expanding its capital formation efforts across discrete buyer pools beyond traditional institutional investors, including institutional investors for fixed income and equity replacement, individuals, insurance clients (Athene and third-party), traditional asset managers, and defined contribution/401(k) plans. The company views the capital formation opportunity across these pools and raises, allocates, and manages capital across a range of structures including closed-end funds, open-ended and evergreen vehicles, perpetual capital vehicles, publicly listed entities, insurance and retirement solutions, and separately managed accounts. Perpetual capital vehicles, which represent nearly 60% of total AUM and over 70% of total fee-generating AUM, are described as highly scalable with the ability to deploy capital on an ongoing basis.

Apollo is pursuing growth through acquisitions and joint ventures, as demonstrated by the acquisition of Bridge Investment Group Holdings Inc. in 2025. The company intends to grow its business by increasing AUM in existing businesses and expanding into new investment strategies, platforms, geographic markets, businesses, and distribution channels, including the retail channel. Apollo has increasingly undertaken business initiatives to increase the number and type of products offered to individual investors, including externally managed vehicles, in the U.S. and other jurisdictions. The company is also expanding its retirement services business through Athene, which has developed four dedicated distribution channels (retail, flow reinsurance, institutional, and acquisitions and block reinsurance) and established ACRA 1 and ACRA 2 as long-duration, on-demand capital vehicles to support growth and capital deployment opportunities.

The filing does not provide specific margin or cost outlook targets.

The filing does not provide a specific operational outlook regarding supply chain, manufacturing capacity, or headcount strategy.

The filing does not provide specific R&D spending levels, capital expenditure plans, or dividend policy figures beyond the stated intention to pay an annual cash dividend of $2.25 per share of common stock and the declaration of a cash dividend of $0.51 per share of common stock to be paid on February 27, 2026. On February 8, 2024, the AGM board of directors approved a new share repurchase program authorizing the repurchase of up to $3.0 billion of shares of common stock. Effective February 9, 2026, the AGM board of directors terminated the prior program and approved a new share repurchase program authorizing the repurchase of up to $4.0 billion of shares of common stock.

Macroeconomic conditions pose headwinds, including increasingly fragmented global growth, a more volatile and transactional policy environment, and heightened geopolitical tensions. Economic performance has diverged across regions, with relatively resilient demand in the U.S. offset by weaker growth in parts of Europe and a slowdown in China. Governments have increasingly relied on tariffs, export controls, investment screening, and other policy tools, contributing to supply-chain reconfiguration, front-loading of imports, higher costs, and reduced visibility into cross-border activity. These developments have increased uncertainty around global demand, pricing, capital allocation, and exit environments, which could adversely affect portfolio company operating results and valuations, the availability and cost of financing, and the timing and execution of asset sales and refinancings.

Interest rate risk poses a significant market risk, as medium and long-term rates decreased in 2025, with the U.S. 10-year Treasury yield at 4.18% as of December 31, 2025, compared to 4.58% as of December 31, 2024. Short-term rates also decreased, with the 3-month secured overnight financing rate at 3.65% as of December 31, 2025 compared to 4.31% as of December 31, 2024. Inflation dynamics and monetary policy have become more uneven across jurisdictions, and interest rates may remain elevated for longer than in prior cycles or increase further in certain markets. The U.S. inflation rate decreased to 2.7% as of December 31, 2025, compared to 2.9% as of December 31, 2024. The U.S. unemployment rate increased to 4.4% as of December 31, 2025, compared to 4.1% as of December 31, 2024.

Risk Factors

A portion of Apollo's revenues, earnings, and cash flow is highly variable, primarily due to performance fees from the asset management business and transaction fees that can vary significantly from quarter to quarter and year to year. Performance fees depend on fund performance and realization events, which are uncertain and may take several years to materialize. The company faces significant interest rate risk, as interest rate-sensitive assets and liabilities held by the company, the funds it manages, and portfolio companies could be adversely affected by changes in interest rates. As of December 31, 2025, Athene's net invested asset portfolio included $48.6 billion of floating rate investments, or 17% of its net invested assets, and its net reserve liabilities included $45.1 billion of floating rate liabilities at notional, or 16% of its net invested assets, resulting in $3.5 billion of net floating rate assets. The retirement services business is subject to the risk that a financial strength rating downgrade could make product offerings less attractive, inhibit the ability to acquire future business, and increase the cost of capital. The company also faces risks related to the extensive regulation of its businesses, including under the Investment Advisers Act, state insurance laws, and Bermuda insurance regulations, with failure to comply potentially resulting in fines, suspensions, or revocations of licenses.

Management Priorities

Management's message emphasizes Apollo's position as a high-growth, global alternative asset manager and retirement services provider, highlighting the company's contrarian, value-oriented investment approach that emphasizes downside protection and capital preservation. Key strategic priorities include expanding into new investment strategies, geographic markets, and businesses, increasing the number and type of products offered to individual investors, and growing the asset management business through acquisitions and joint ventures. Management focuses on generating Fee Related Earnings (FRE) as the primary performance measure for the Asset Management segment and Spread Related Earnings (SRE) for the Retirement Services segment, while noting that Principal Investing Income (PII) is inherently more volatile due to the cyclical nature of realized performance fees. The company intends to pay an annual cash dividend of $2.25 per share of common stock and has declared a cash dividend of $0.51 per share of common stock payable on February 27, 2026.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
  2. [2] Item 1, Business — Asset Management — Credit
  3. [3] Item 1, Business — Asset Management — Credit — Direct Origination
  4. [4] Item 1, Business — Asset Management — Credit — Asset-Backed Finance
  5. [5] Item 1, Business — Asset Management — Credit — Opportunistic Credit
  6. [6] Item 1, Business — Asset Management — Credit — Multi-Credit
  7. [7] Item 1, Business — Asset Management — Equity
  8. [8] Item 1, Business — Asset Management — Equity — Corporate Private Equity
  9. [9] Item 1, Business — Asset Management — Equity — Hybrid Value
  10. [10] Item 1, Business — Asset Management — Equity — AAA
  11. [11] Item 1, Business — Asset Management — Equity — Real Estate Equity
  12. [12] Item 1, Business — Asset Management — Equity — Infrastructure and Clean Transition Equity
  13. [13] Item 1, Business — Asset Management — Equity
  14. [14] Item 1, Business — Retirement Services — Distribution Channels — Retail
  15. [15] Item 1, Business — Retirement Services — Distribution Channels — Retail
  16. [16] Item 1, Business — Retirement Services — Distribution Channels — Retail
  17. [17] Item 1, Business — Retirement Services — Distribution Channels — Retail
  18. [18] Item 1, Business — Retirement Services — Products — Income Riders to Fixed Annuity Products
  19. [19] Item 1, Business — Retirement Services — Products — Withdrawal Options for Deferred Annuities
  20. [20] Item 1, Business — Overview
  21. [21] Item 1, Business — Asset Management — Perpetual Capital
  22. [22] Item 1, Business — Asset Management — Athene
  23. [23] Item 1, Business — Asset Management — Athene
  24. [24] Item 1, Business — Asset Management — Athora
  25. [25] Item 1, Business — Asset Management — Athora
  26. [26] Item 1, Business — Asset Management — Origination
  27. [27] Item 1, Business — Asset Management
  28. [28] Item 1, Business — Asset Management
  29. [29] Item 1, Business — Retirement Services
  30. [30] Item 1, Business — Asset Management — General Partner and Professionals Investments and Co-Investments — General Partner Investments
  31. [31] Item 1, Business — Retirement Services — Capital — Deployable Capital
  32. [32] Item 1, Business — Retirement Services — Capital — Deployable Capital
  33. [33] Item 1, Business — Retirement Services — Capital — Deployable Capital
  34. [34] Item 1, Business — Retirement Services — Capital — Deployable Capital
  35. [35] Item 7, MD&A — Results of Operations
  36. [36] Item 7, MD&A — Results of Operations
  37. [37] Item 8, Note 21 — Segment Information
  38. [38] Item 8, Note 21 — Segment Information
  39. [39] Item 8, Note 16 — Earnings Per Share
  40. [40] Item 8, Note 16 — Earnings Per Share
  41. [41] Item 8, Note 21 — Segment Information
  42. [42] Item 8, Note 21 — Segment Information
  43. [43] Item 8, Note 21 — Segment Information
  44. [44] Item 8, Note 21 — Segment Information
  45. [45] Item 8, Note 21 — Segment Information
  46. [46] Item 8, Note 21 — Segment Information
  47. [47] Item 5, Market for Registrant's Common Equity — Dividend Policy
  48. [48] Item 5, Market for Registrant's Common Equity — Dividend Policy
  49. [49] Item 5, Market for Registrant's Common Equity — Purchases of Equity Securities by the Issuer and Affiliated Purchasers
  50. [50] Item 5, Market for Registrant's Common Equity — Purchases of Equity Securities by the Issuer and Affiliated Purchasers
  51. [51] Item 7, MD&A — Business Environment — Interest Rate Environment
  52. [52] Item 7, MD&A — Business Environment — Interest Rate Environment
  53. [53] Item 7, MD&A — Business Environment — Interest Rate Environment
  54. [54] Item 7, MD&A — Business Environment — Interest Rate Environment
  55. [55] Item 7, MD&A — Business Environment — Economic and Market Conditions
  56. [56] Item 7, MD&A — Business Environment — Economic and Market Conditions
  57. [57] Item 7, MD&A — Business Environment — Economic and Market Conditions
  58. [58] Item 7, MD&A — Business Environment — Economic and Market Conditions
  59. [59] Item 7, MD&A — Business Environment — Interest Rate Environment
  60. [60] Item 7, MD&A — Business Environment — Interest Rate Environment
  61. [61] Item 7, MD&A — Business Environment — Interest Rate Environment
  62. [62] Item 7, MD&A — Business Environment — Interest Rate Environment
  63. [63] Item 7, MD&A — Business Environment — Interest Rate Environment
  64. [64] Item 5, Market for Registrant's Common Equity — Dividend Policy
  65. [65] Item 5, Market for Registrant's Common Equity — Dividend Policy
  66. [66] Item 8, Consolidated Statements of Operations
  67. [67] Item 8, Consolidated Statements of Operations
  68. [68] Item 8, Consolidated Statements of Operations
  69. [69] Item 8, Consolidated Statements of Operations
  70. [70] Item 8, Note 16 — Earnings Per Share
  71. [71] Item 8, Note 16 — Earnings Per Share
  72. [72] Item 8, Note 21 — Segment Information
  73. [73] Item 8, Note 21 — Segment Information
  74. [74] Item 7, MD&A — Results of Operations
  75. [75] Item 7, MD&A — Results of Operations
  76. [76] Item 7, MD&A — Results of Operations
  77. [77] Item 7, MD&A — Results of Operations
  78. [78] Item 8, Note 21 — Segment Information
  79. [79] Item 8, Note 21 — Segment Information
  80. [80] Item 7, MD&A — Results of Operations
  81. [81] Item 7, MD&A — Results of Operations
  82. [82] Item 8, Note 21 — Segment Information
  83. [83] Item 8, Note 21 — Segment Information
  84. [84] Item 8, Consolidated Statements of Financial Condition
  85. [85] Item 8, Consolidated Statements of Financial Condition
  86. [86] Item 8, Consolidated Statements of Financial Condition
  87. [87] Item 8, Consolidated Statements of Financial Condition

Analysis on 9/27/2026