ALTERNATIVES

Apollo reports 2% gain in AUM in fourth quarter, 13% increase for year

Apollo Global Management reported $191.7 billion in assets under management as of Dec. 31, up 2% from three months earlier and a 13% increase from Dec. 31, 2015, according to the alternative investment's earnings results announced Friday.

The alternative investment firm reported $6.6 billion in gross inflows in the fourth quarter and a total of $34.8 billion for the year, and outflows were $13.1 billion for the year. The firm invested $3.5 billion in the quarter and $15.9 billion in the year. It returned $1.7 billion to investors in the quarter and a total of $5.4 billion for all of 2016.

Credit AUM was $136.6 billion as of Dec. 31, a 1% increase from Sept.30 and up 13% from the end of 2015. Private equity AUM was $43.6 billion, up 3% from the end of the third quarter and up 16% year-over-year. Real estate AUM was $11.5 billion, flat from both Sept. 30 and a year earlier.

Net income attributable to Apollo Global Management under GAAP was $167 million for the quarter and $402.9 million for the year ended Dec. 31. On a quarterly basis, this is an increase from $94.6 million in the third quarter and $6.1 million in the quarter ended Dec. 31, 2015.

Total revenues were $685.4 million for the quarter — up from $503.7 million in the previous quarter — and $2 billion for all of 2016. By comparison, total revenue was $194 million for the fourth quarter of 2015 and $1 billion for all of 2015.

Apollo earned $268 million from management fees in the fourth quarter and $1 billion from management fees for the entire year. This was down from $274.3 million in the third quarter but an increase from $235.2 million in management fees for the year-over-year quarter and $930.2 million in all of 2015. Advisory and transaction fees were $44 million in the fourth quarter and $147 million for the year, compared to $30 million in the third quarter, a loss of $20 million in the fourth quarter of 2015 and $14.2 million in all of 2015. Carried interest was $373 million in the fourth quarter and $780.2 million for the year. By comparison, Apollo earned $199.6 million in carried interest income in the third quarter, suffered a loss of $22.2 million in carried interest in the fourth quarter of 2015 but ended 2015 with a $97.3 million gain for the year.