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Apollo’s AUM gains 4.2% in quarter, 28% for year on strong inflows

Leon Black

Apollo Global Management's assets under management were $241.6 billion as of Sept. 30, up 4.2% from June 30 and an 28% increase from a year earlier, according to the alternative investment firm's earnings released on Wednesday.

Apollo attributed the increase to a combination of investment returns and new capital.

"Apollo delivered excellent results for the third quarter driven by strong investment performance across all our businesses, led by the private equity funds we manage, which appreciated by 7% in the quarter and 25% over the last 12 months," said Leon Black, chairman and CEO, in a news release. "By leveraging the power of Apollo's integrated global platform, we have generated capital inflows of $56 billion in the past year, bringing total assets under management to $242 billion, including nearly $100 billion of permanent capital."

Apollo's credit business had $158 billion in AUM as of Sept. 30, a 4.6% increase from three months earlier and up 17% year-over-year. Private equity AUM was $70.5 billion, up 4% from June 30 and up 67% from Sept. 30, 2016. Real assets was $13.2 billion as of Sept. 30, up 1.5% from three months earlier and up 19% from a year earlier.

Management fees were $301.4 million in the quarter, up 7.1% from the prior quarter and 9.9% from $274.3 million a year earlier. Advisory and transaction fees were $16.2 million in the third quarter, down 31% from $23.6 million the quarter ended June 30 and down 45.6% from $29.8 million the year-earlier quarter. Carried interest was $346.6 million in the quarter, up 171% from $127.9 million the prior quarter and up 73.6% from $199.6 million in the year-over-year quarter.

GAAP net income was $434.4 million in the quarter, compared to net income of $192.9 million in the second quarter and $234.7 million in the third quarter of 2016.