Why did APO's Q3 2024 earnings surprise exceed forecasts?

Apollo Global Management Inc. (APO) reported robust Q3 2024 earnings, with record Fee-Related Earnings (FRE) and strong capital formation, exceeding market forecasts:

1. **Record Quarterly FRE**: Apollo achieved record FRE of $516 million, with $0.84 per share, and Spread-Related Earnings (SRE) of $710 million, or $1.15 per share. This outperformance was driven by robust deal activity in its private equity segment, with three significant transactions announced recently.
2. **Significant Capital Formation**: The company reported significant capital formation, with debt originations reaching $52 billion, setting a quarterly record. This reflects strong investment activity and market demand for Apollo's investment solutions.
3. **Positive Performance across Business Segments**: Apollo's private equity segment showed strong performance, with Fund 9 achieving 29% gross and 20% net returns, and Fund 10 delivering 47% gross and 20% net returns. The credit segment also performed well, with various vehicles reporting double-digit returns over the past 12 months.
4. **Strategic Investments and Dividend**: The company declared a dividend of $0.4625 per share of Common Stock, payable on August 30, 2024, which reflects confidence in its financial stability and growth prospects. Strategic investments and hedging activities, although impacting profitability, are integral to managing risk and optimizing returns.

In summary, Apollo's Q3 2024 earnings exceeded forecasts due to record FRE, significant capital formation, strong performance across business segments, and strategic investments. These factors combined to deliver robust financial results that surpassed market expectations.