Apollo Global Management (APO) Q4 2024 earnings summary

Executive summary

• Achieved record origination activity exceeding $220 billion, inflows over $150 billion, and AUM surpassing $751 billion for 2024.

• Fourth quarter capped a strong year, with the highest quarterly adjusted net income of $1.4 billion and a clear growth strategy entering 2025.

• Added to the S&P 500 in December, reflecting significant growth and institutionalization.

Financial highlights

• Adjusted Net Income was $1.4 billion for Q4 and $4.6 billion for FY 2024, or $2.22 and $7.43 per share; GAAP Net Income was $1.5 billion for Q4 and $4.5 billion for FY 2024, or $2.42 and $7.39 per share.

• Fee Related Earnings (FRE) reached $554 million in Q4 and $2.1 billion for the year; Spread Related Earnings (SRE) were $841 million in Q4 and $3.2 billion for the year.

• Management fees from credit business grew nearly 20% year-over-year; capital solutions fees up almost 25%.

• FRE margin was 56.5% for FY 2024, with a compensation ratio of 25.3%.

• Declared a cash dividend of $0.4625 per share of Common Stock for Q4 2024, payable February 28, 2025.

Outlook and guidance

• Targeting 15%-20% FRE growth in 2025, with SRE expected to approximate $3.5 billion, assuming 11% alts return and six rate cuts from Sep 2024 to end-2025.

• Five-year plan aims for average annual FRE growth of 20% and SRE growth of 10%.

• Entering 2025 with a clear growth strategy, focus on execution, and intent to increase annual common stock dividend by 10% to $2.04 per share starting Q1 2025.

• Anticipates greater inflows across asset management and retirement services in 2025.

• Management expresses confidence in continued growth and execution of strategy for 2025.