Apollo Global Management Inc Q2 2025 Earnings Call

Q2 2025 Financial Highlights

• 📈 Apollo reported record Fee Related Earnings (FRE) of $627 million, a 22% year-over-year increase, alongside 21% growth in management fees.
• 💰 Record Asset Management AUM reached $840 billion, with fee-generating AUM growing 22% to $638 billion, largely driven by perpetual capital.
• 📊 Strong SRE of $821 million was generated in the retirement services segment, supported by $21 billion in organic inflows.

Investment Performance & Origination

• 🚀 The firm achieved record origination of $81 billion in the quarter, maintaining strong spreads even in a tightening credit market.
• 🎯 Credit businesses performed robustly, with core and opportunistic credit delivering 9-12% returns over the last 12 months, and ADS exceeding $20 billion in size.
• 💡 Private equity funds, including Fund 10 (23% net IRR) and Fund 9 (16.6% net IRR), continued to outperform industry averages.

Strategic Growth Initiatives

• 🌍 Apollo is expanding its retirement services in Europe, notably through Aora's acquisition of PIC in the UK, leveraging favorable regulatory environments.
• 🌱 The company is actively investing in sustainability and infrastructure, deploying nearly $60 billion into energy transition since 2022, ahead of schedule.
• 🧠 New sources of demand for private assets are emerging from individuals, insurance companies, fixed income/equity replacement strategies, and traditional asset managers.

Capital Formation & Wealth Management

• 💰 Total capital inflows reached $61 billion, with $40 billion in asset management and $21 billion from Athen, demonstrating broad-based strength.
• 📈 The global wealth franchise continues strong momentum, with over $4 billion in inflows for the quarter and key strategies like AAA and ADS exceeding $20 billion AUM.
• ✅ Third-party insurance business is on track for a record year, having raised over $9 billion year-to-date across diverse products and geographies.

Future Outlook & Market Opportunities

• 🤝 The acquisition of Bridge Investment Group is expected to close in early September, contributing approximately $100 million to FRE in 2026.
• 🔮 Apollo anticipates significant future opportunities in the 401k and defined contribution marketplace, aiming to provide guaranteed lifetime income solutions.
• ⚠️ The firm is navigating dynamic credit spread environments by pivoting origination to less commoditized products, maintaining new business spreads around 130 basis points.