Apollo’s AUM up 31.1% for quarter, up 32.6% for year

Apollo Global Management on Thursday announced a record $413.6 billion in assets under management as of June 30, up 31.1% from three months earlier and up 32.6% from 12 months earlier.

This is a reversal in direction from Apollo's first-quarter results that showed a 4.7% drop in AUM.

Apollo's second-quarter AUM increase was due to two significant transactions by its insurance business as well as inflows and market appreciation, said Leon Black, co-founder, chairman and CEO, during an earnings webcast.

During the quarter, Apollo's U.S. insurance business, Athene, closed its reinsurance transaction with Jackson National Life Insurance Co., adding another $28 billion of AUM. Athora, its European insurance business, closed its acquisition of VIVAT from Anbang Group Holdings.

Sixty percent of Apollo's AUM is in permanent capital vehicles. The asset increase puts Apollo well on its way toward reaching its goal of $600 billion in AUM, Mr. Black said.

Credit, Apollo's largest business by AUM, had $300.4 billion as of June 30, up 43% from March 31 and up 49% from June 30, 2019.

Apollo's private equity business had $73.3 billion as of the end of the second quarter, up 8.3% from three months earlier but down 5% from $77.2 billion a year earlier. Real assets had $39.9 billion, up 4.7% from March 31 and up 19% from June 30, 2019.

As of June 30, Apollo had $386.8 million in general partner obligations to return from previously distributed performance fees. Total clawbacks are offset, in part, by $174.7 million in previously paid carried interest to be returned to limited partners by contributing partners and certain current and former employees.

Net income under GAAP was $1 billion for the quarter.

Separately, Mr. Black announced that Marc Rowan, Apollo co-founder and senior managing director who led the firm's foray into the insurance business, will step down from his day-to-day responsibilities and "enjoy a semi-sabbatical."

Mr. Rowan will remain a member of Apollo's board and executive committee. He will also continue to serve on the board and executive committee of Athene and on the board of Athora.

Scott Kleinman, co-president, will assume the day‐to‐day operational responsibility of leading Apollo's financial institutions and insurance business. James Zelter, Apollo co-president and CIO of credit, will continue to focus on asset management and credit investments for Athene and Athora.

In a written statement, Mr. Rowan said taking a step back from day-to-day operations will "allow me to focus my energy on the strategic direction of Apollo and its insurance and financial services businesses in particular."

Mr. Black also announced that Jonathan Simon will join Apollo in August as a managing director and its first head of leadership development and diversity.