Apollo Global Management's Q2 2025: Navigating Contradictions in Spreads, Origination, and Regulatory Challenges

Spread dynamics and origination strategy, 401(k) marketplace and regulatory clarity, insurance business and spread dynamics, origination target and distribution strategy, liability run-off and predictability are the key contradictions discussed in Apollo Global Management's latest 2025Q2 earnings call.



Asset Management and Origination Success:
- Apollo Global Management reported record FRE of $627 million in Q2 2025, a 22% increase year-over-year.
- This growth was driven by robust inflows of $61 billion across the firm, resulting in record AUM of $840 billion.

Retirement Services Expansion:
- The retirement services segment saw $21 billion in inflows, the second-highest on record, resulting in an 18% year-over-year increase in net invested assets.
- Growth was attributed to strong demand for fixed annuity products and Athene's strategic investments in the U.S. and U.K. markets.

Capital Solutions and Strategic Investments:
- Apollo achieved record capital solutions fees of $216 million, with a strong pipeline for the third quarter.
- This was driven by significant origination activity, including a $4.5 billion financing for EDF, and strategic investments in Europe, particularly in Athora and potential acquisitions like PIC.

Private Equity and Hybrid Fund Performance:
- Apollo's private equity fund X reported a net IRR of 23%, with a DPI of 0.2, while fund IX reported a net IRR of 16% and a DPI of 0.6.
- This performance was attributed to strong execution in the private equity business, leveraging Apollo's long-term disciplined approach.