Q1 2025 Apollo Global Management Inc Earnings Call Transcript
Key Points
- Apollo Global Management Inc (APO) reported record fee-related earnings of $559 million, marking a 21% year-over-year increase.
- The company declared a cash dividend of $0.51 per share, representing a 10% increase from the prior quarterly run rate.
- Apollo achieved record inflows of $43 billion in the quarter, with significant contributions from Athene.
- The firm demonstrated strong investment performance, particularly in private equity, with Fund X achieving a net IRR of 19%.
- Apollo's origination activity was robust, with $56 billion in assets originated during the quarter, showcasing a 30% growth year-over-year.
- Apollo Global Management Inc (APO) faces headwinds from competitive pressure in the retail channel, impacting net spread results.
- The company anticipates a mid-single-digit growth rate for 2025, down from previous expectations due to market-driven uncertainties.
- There is a noted increase in the cost of funds, up 28%, which is affecting the company's financial performance.
- The firm is experiencing higher asset prepayments, which are running above forecasted levels, creating additional financial challenges.
- Apollo's business is under-earning on the new business written in the quarter relative to its potential, due to current market conditions.
Good morning, and welcome to Apollo Global Management's first quarter 2025 earnings conference call. During todayâs discussion all callers will be placed in listen-only mode and following managementâs prepared remarks the conference call will be open for question. (Operator Instructions) This conference call is being recorded.
This call may contain forward-looking statements and projections, which do not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements. Apollo will be discussing certain non-GAAP measures on this call, which management believes are relevant in assessing the financial performance of the business.
These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's website. Also note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Apollo fund.
I will now turn the call over to Noah Gunn, Global Head of Investor Relations.
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