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Money Management

Apollo Global Management reports AUM increase for quarter, year

Jim Zelter, co-president of Apollo Global Management, at the 2019 Milken Institute Global Conference in Beverly Hills, Calif.

Apollo Global Management reported $303 billion in assets under management as of March 31, up 8.1% from Dec. 31 and up 20% from March 31, 2018, according to data released Thursday by the alternative investments firm.

At the same time, Apollo announced it plans to convert to a C corporation from a publicly traded partnership, effective in the third quarter. The details of the conversion remain subject to the approval of the conflicts committee of Apollo Global Management's board of directors.

The conversion "will simplify our structure and enable a much broader set of shareholders," Apollo Chairman and CEO Leon Black said in a news release.

Mr. Black attributed the quarter-over-quarter AUM increase, in part, to $25 billion in capital inflows generated in the first quarter. Currently, nearly half of Apollo's total AUM is permanent capital.

Credit AUM was $193.7 billion as of March 31, up 11.1% from the end of the fourth quarter and 32.1% year-over-year. Private equity AUM hit $77.3 billion at the end of the first quarter, rising 2.9% from Dec. 31 and flat from March 31, 2018. Real assets AUM was $32 billion as of March 31, up 3.9% from Dec. 31 and 33.9% from the end of the year-earlier quarter.

Management fees were $380 million in the first quarter, up from $358.2 million the prior quarter and $286.7 million in the first quarter of 2018. Advisory and transaction fees were $19.6 million in the quarter, compared to $70.1 million in the prior quarter and $13.6 million in the year-earlier quarter.

Apollo earned total investment income of $277.5 million in the first quarter, compared to total investment loss of $550 million in the fourth quarter and total investment loss of $137.2 million in the year-ago quarter.

Apollo had GAAP net income of $315.6 million for the quarter, compared with a GAAP net loss of $377.9 million for the quarter ended Dec. 31 and a GAAP net loss of $109.3 million for the quarter ended March 31, 2018.