Apollo Global Management's assets under management totaled $86.1 billion as of March 31, up 10.5% from three months earlier and 23% higher than a year ago, according to the private equity firm's first-quarter earnings release Tuesday.
The rise in AUM is from an $11.3 billion increase in assets that generate management and monitoring fees from Apollo funds, and $3 billion from its long-term strategic partnership with the $110 billion Texas Teacher Retirement System, Austin.
Apollo's fee-generating AUM totaled $59.6 billion in the first quarter, a 3% increase from Dec. 31 and up 23% from a year earlier. The increase came both from acquisitions and organic growth, according to the company's SEC filings. This included the $3 billion acquisition of Gulf Stream Asset Management by its Athene Holding subsidiary in the fourth quarter and new capital raised by its natural resources and real estate investment strategies.
Apollo's capital markets AUM was $36.5 billion, up nearly 53% from a year earlier. However, Apollo's acquisition of $18.7 billion credit manager Stone Tower Capital on April 2 will make the capital markets business its largest business segment, the firm reported.
Apollo's private equity AUM was $38.4 billion in the first quarter, down 3% from a year earlier.. Private equity business revenue was $92.9 million for the first quarter, compared with $80.6 million for the first quarter of 2011. The 15.2% revenue increase was primarily because of higher advisory and transaction fees, including $6.1 million in fees from the IPO in March of Rexnord Corp.
Apollo's real estate AUM was $8.3 billion, up 28% from a year earlier, on the launch of new funds.
Apollo's first-quarter net income under GAAP was $98 million, compared with an $11 million net gain in the three months ended Dec. 31 and a net gain of $38.2 million for first quarter of 2011.