Apollo Global Management Reports Record Q2 Fee-Related Earnings

Apollo Global Management Inc. reported record fee-related earnings of $785 million for the second quarter, a 25% increase over the previous year. The firm attracted $60 billion in new investor assets during the period, pushing its total assets under management to $1.05 trillion. Nearly 60% of these assets are now held in perpetual capital, with $82 billion available as deployable dry powder.

Growth was primarily driven by the Capital Solutions business, which saw a 28% jump in revenue through the origination of $74 billion in loans to blue-chip companies and large investment-grade jumbo loans, including a transaction with Broadcom Inc. While the firm achieved record spread-related revenue of $877 million, realized performance fees dropped 40% to $130 million due to delayed monetizations. Adjusted net income was $2.11 per share, slightly missing analyst estimates of $2.15.

These results occur as the firm faces a 7% decline in share performance over the past year amid market concerns regarding private credit. Apollo is currently targeting $25 billion for its 11th private equity fund, which has already secured $12 billion. The firm's expansion mirrors a broader trend among private capital giants, including KKR & Co. Inc., Brookfield Corporation, and The Carlyle Group, as investors seek diverse portfolios to hedge risks associated with AI infrastructure.