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Apollo Global Management Inc - Ordinary Shares - (APO) 1 Aug 24 2024 Q2 Earnings call transcript

AInvestThursday, Aug 1, 2024 10:06 pm ET
1min read

Apollo Global Management held its second quarter 2024 earnings call, highlighting strong financial results and strategic initiatives across its private equity, hybrid, and credit franchises. The call, led by CEO Marc Rowan, provided investors and analysts with a comprehensive overview of the company's performance, market trends, and future outlook. Here are the key takeaways from the call.

Financial Performance and Growth

Apollo reported solid second quarter financial results, with record quarterly FRE of $516 million or $0.84 per share, and SRE of $710 million or $1.15 per share. These results were driven by strong performance across all business segments, including private equity, hybrid, and credit. The company's focus on originations, coupled with robust investment performance, has led to record inflows of $39 billion for the quarter, with institutional investors contributing $16 billion and Athene $17 billion.

Strategic Initiatives and Trends

The call emphasized Apollo's strategic initiatives in fixed income replacement, a growing trend in the industry. The company's unique focus on investment-grade private credit is expected to drive its business, particularly in the areas of next-generation infrastructure, energy transition, and traditional infrastructure. Apollo's origination capabilities are seen as a key driver of its growth, with the company aiming to originate $150 billion by 2026.

Market Opportunities and Challenges

The call also addressed the current market environment, noting the challenges posed by low interest rates and the impact on investment strategies. Despite these challenges, Apollo is well-positioned to capitalize on opportunities in the private credit market, with a focus on investment-grade assets. The company's hybrid strategy, which combines equity and debt investments, is seen as a competitive advantage, offering investors the potential for high returns with reduced volatility.

Investor Relations and Future Outlook

The call concluded with a forward-looking outlook, with Apollo's Investor Day scheduled for October 1. The company highlighted its focus on innovation and growth, with a particular emphasis on its hybrid strategy and the potential for private equity to replace traditional public equity allocations. Apollo's strong financial position, coupled with its strategic initiatives and market trends, positions the company well for future growth and success.

Conclusion

Apollo Global Management's second quarter earnings call provided a comprehensive overview of the company's financial performance, strategic initiatives, and market trends. With a focus on investment-grade private credit and a strategic shift towards fixed income replacement, Apollo is well-positioned to capitalize on the evolving market landscape. The company's strong financial results and strategic initiatives, coupled with its innovative hybrid strategy, bode well for its future growth and success.

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