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Apollo AUM rises 8.9% in quarter

Apollo Global Management Chairman and CEO Leon Bla
Apollo Global Management Chairman and CEO Leon Black

Apollo Global Management's assets under management totaled $269.5 billion as of June 30, up 8.9% from March 31 and up 16.3% from a year earlier, according to the alternative investment firm's earnings report released Thursday.

Apollo attributed the AUM increases to capital inflows of $63 billion in the 12 months ended June 30. During the quarter, Apollo began subadvising on $2.4 billion of assets of Athene Holdings, an insurance company that sells fixed annuities and is owned by Apollo and Athora, a European insurance company also owned by Apollo. Apollo not only owns the companies but also invests their capital. As of June 30, Apollo had $124.4 billion in permanent capital vehicles, including $97.3 billion from Athene and $8.2 billion from Athora.

Credit AUM was $183.4 billion as of June 30, up 11% from the end of the prior quarter and up 21.5% from June 30, 2017. Private equity AUM was $71.7 billion, up 4.1% from March 31 and up 5.4% from the end of the year-earlier quarter. Apollo's real assets business had $14.3 billion in AUM, up 8.3% from three months earlier and 10% higher than June 30, 2017.

Apollo earned $341.6 million in management fees in the first quarter, up 19.1% from the first quarter and up 21.4% from the year-earlier quarter. Advisory and transaction fees were $15.4 million, up from $13.6 million in the prior quarter but down from $23.6 million in the quarter ended June 30, 2017. Total investment income was $151.3 million, up from a $137.2 million loss in the first quarter and up 10.2% from a $137.2 million gain in the second quarter of 2017. Incentive fees were $15 million, up from $3.8 million last quarter and $7.5 million in the year-earlier quarter.

GAAP net income was $143.8 million, compared to a net loss of $109.3 million in the first quarter and net income of $192.9 million in the second quarter of 2017.

Apollo had $47.7 billion in dry powder as of June 30.