Apollo sees credit score AUM rise by 20pc to $598bn in Q3

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Apollo World Administration noticed its credit score belongings below administration (AUM) improve by greater than 20 per cent year-on-year within the third quarter to $598bn (£460.5bn).

Against this, AUM for its fairness investments amounted to $135bn, which was flat on the identical interval final yr, bringing whole AUM for the quarter to $733bn.

Whole AUM benefited from inflows of $42bn within the third quarter and $151bn during the last twelve months, driving a 16 per cent improve year-on-year.

Learn extra: Apollo plans to double AUM by 2029

$22bn of inflows from asset administration within the third quarter included fundraising exercise in credit score throughout direct lending, opportunistic credit score, and multi-credit, in addition to inflows from wealth-focused semi-liquid merchandise and co-investments in fairness.

The agency reported document fee-related earnings (FRE) of $531m, which it attributed to robust development in charge associated revenues and disciplined expense development.

It additionally noticed its second highest quarter of spread-related earnings (SRE), totalling $856m. Collectively, FRE and SRE totalled $1.4bn within the third quarter.

Efficiency fee-eligible AUM of $220bn elevated 11 per cent year-on-year as a result of notably robust development in efficiency fee-eligible credit score methods.

Learn extra: Apollo rolls out evergreen secondaries suite of merchandise

Efficiency fee-generating AUM of $143bn elevated 14 per cent year-on-year, which it attributed to strong capital deployment exercise.

Dry powder was $64bn on the finish of the third quarter, together with $54bn of dry powder with future administration charge potential, of which roughly 75 per cent is in credit score.

Apollo’s adjusted internet earnings totalled $1.1bn, or $1.85 per share, for the third quarter.

“Our robust third quarter outcomes replicate broad-based momentum throughout the platform,” stated Apollo chief govt Marc Rowan. “We’re constructing a next-generation monetary providers enterprise uniquely positioned to win throughout large market alternatives, and we’re excited to execute on the enticing development plan unveiled at our latest investor day.”

Learn extra: Moody’s: Personal credit score to hit $3tn by 2028



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