Apollo Global Management reported a surge in assets to $733 billion in their latest earnings statement, marking a significant 16% year-over-year increase. This boost is attributed mainly to the firm’s intensified focus on wealthy individual clients. The firm’s adjusted net income hit $1.13 billion, which translates to $1.85 per share, thereby exceeding analyst predictions, according to a report by
Crain’s New York Business
.
Shares in the investment giant were observed to sharply rise, jumping 7.3% early Tuesday in New York. “We are building a next-generation financial services business uniquely positioned to win across massive market opportunities,” CEO Marc Rowan was quoted as saying in a statement highlighted by
The Middle Market
. Apollo’s asset management and retirement services divisions pulled in $72 billion and $79 billion, respectively, in the third quarter alone.
With a targeted approach aimed at high-net-worth individuals, Apollo has noted considerable growth in asset management fees by 10% compared to the previous year. Performance fees related to these activities have seen an even steeper increase of over 40%, a testament to the successful funds raised from this demographic. Apollo has also set an ambitious goal to elevate its global wealth business by raising a minimum of $150 billion by 2029, as documented in their statement.
That set ambition echoes a strategic shift towards wealth clients, indicating a departure from its traditional private equity bedrock. So far, capital accumulated from affluent individuals this year has surpassed the entire sum raised in 2023. “We have to deliberately make our products simpler. We have to be able to serve qualified and non-qualified investors, and we have to be able to do it with technological ease,” Rowan emphasized, suggesting that the industry is still not fully exploiting potential growth avenues among financial advisers and their clients, as per
Crain’s New York Business
.
The company has not only diversified its wealth management initiatives but is also honing its origination business, setting a record $62 billion originated across several departments during the quarter. These engagements, particularly within investment-grade assets, are integral to the company’s growth strategy. According to Apollo, its direct origination unit signaled the highest returns of 3.4% for the quarter—this in marked contrast to its flagship private equity investments, which showed a meager return of 0.3%. Despite these varying performances, Apollo suggested an improving “exit environment,” recognizing over $331 million in realized performance fees during the third quarter, as per statements obtained by
Crain’s New York Business
, marking the firm’s most substantial gains since 2021 due to “a few sizable monetizations.”
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