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1. Company Snapshot

1.a. Company Description

Apollo Global Management, Inc.is a private equity firm specializing in investments in credit, private equity and real estate markets.The firm's private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, middle market, growth capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions.


The firm provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors.It manages client focused portfolios.The firm launches and manages hedge funds for its clients.


It also manages real estate funds and private equity funds for its clients.The firm invests in the fixed income and alternative investment markets across the globe.Its fixed income investments include income-oriented senior loans, bonds, collateralized loan obligations, structured credit, opportunistic credit, non-performing loans, distressed debt, mezzanine debt, and value oriented fixed income securities.


The firm seeks to invest in chemicals, commodities, consumer and retail, oil and gas, metals, mining, agriculture, commodities, distribution and transportation, financial and business services, manufacturing and industrial, media distribution, cable, entertainment and leisure, telecom, technology, natural resources, energy, packaging and materials, and satellite and wireless industries.It seeks to invest in companies based in across Africa, North America with a focus on United States, and Europe.The firm also makes investments outside North America, primarily in Western Europe and Asia.


It employs a combination of contrarian, value, and distressed strategies to make its investments.The firm seeks to make investments in the range of $10 million and $1500 million.The firm seeks to invest in companies with Enterprise value between $750 million to $2500 million.


The firm conducts an in-house research to create its investment portfolio.It seeks to acquire minority and majority positions in its portfolio companies.Apollo Global Management, Inc.


was founded in 1990 and is headquartered in New York, New York with additional offices in North America, Asia and Europe.

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1.b. Last Insights on APO

Apollo Global Management's recent performance was negatively impacted by concerns over private credit, with recent bankruptcies raising fears. However, the company's direct exposure is limited, and long-term contracts insulate revenue. Growth is driven by fee momentum, AUM expansion, and the Athene insurance unit. Q3 earnings beat estimates, fueled by rising AUM and the Bridge acquisition. Despite higher expenses, the company's results were strong. According to a recent upgrade, current valuation and business resilience present a buying opportunity with over 15% upside.

1.c. Company Highlights

2. Apollo Global Management's Strong Q3 2025 Earnings

Apollo Global Management reported a robust financial performance in Q3 2025, with adjusted net income reaching $1.4 billion, or $2.17 per share, representing a 17% year-over-year increase. The company's record combined fee and spread-related earnings drove this growth, with management fee growth surging 22% year-over-year. Fee-related earnings came in at $652 million, while capital solutions fees were $212 million, and fee-related performance fees grew 28% year-over-year. The actual EPS of $2.17 exceeded estimates of $1.9, indicating a strong operational performance.

Publication Date: Nov -05

📋 Highlights
  • Record Adjusted Net Income:: $1.4 billion or $2.17 per share, up 17% year-over-year, driven by strong fee and spread earnings.
  • Fee Growth Momentum:: Management fees rose 22% YoY, with capital solutions fees at $212 million, reflecting robust fee-related earnings growth.
  • Assets Under Management (AUM):: Surged to $908 billion, a 24% YoY increase, fueled by $82 billion in inflows, including $49 billion organic and $34 billion from Bridge acquisition.
  • Origination Scale:: Generated $75 billion in Q3 origination volume, with $270 billion in the last 12 months (40% YoY growth), leveraging 16 platforms and new ventures like Olympus Housing Capital.
  • Retirement Services Strength:: Q3 inflows reached $23 billion, with year-to-date inflows at $69 billion, and Athene’s net invested assets growing 18% YoY to $286 billion, supporting a mid-teens ROE target.

Business Segment Performance

The company's asset management business generated $908 billion in assets under management and $685 billion in fee-generating assets under management. The retirement services business saw robust demand, with $23 billion in organic inflows during Q3, and Athene's net invested assets grew 18% year-over-year to $286 billion. Private equity also performed well, with Fund X delivering a 22% net IRR, driven by the company's focus on cash flow and rational underwriting.

Growth Prospects and Outlook

Apollo expects 20% plus growth in fee-related earnings in 2026, driven by its existing businesses and new initiatives. The company anticipates 10% growth in spread-related earnings, assuming 11% alternative returns. Management is confident in its ability to deliver excess return per unit of risk, with a focus on creating solutions-oriented products and partnering with traditional asset managers to increase access to private assets. The company's long-term targets include 20% average annual growth in fee-related earnings and 10% in spread-related earnings through 2029.

Valuation and Return Metrics

With a P/E Ratio of 23.39 and an ROE of 18.1%, Apollo's valuation reflects its strong growth prospects. The company's ROIC is 5.55%, indicating efficient capital allocation. The Dividend Yield is 1.49%, and the Free Cash Flow Yield is 5.52%, suggesting a reasonable return for investors. Analysts estimate next year's revenue growth at 14.1%, which is slightly lower than the company's expected growth in fee-related earnings.

Strategic Initiatives and Partnerships

Apollo is exploring partnerships with traditional asset managers to expand its product suite and geographic reach. The company aims to create an open architecture solution, recognizing that private direct lending is an augment to the high-yield and loan markets. Management believes that the fastest growth in the wealth market will come from partnerships with traditional asset managers, allowing them to offer private assets to their clients.

3. NewsRoom

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Apollo Global Management (APO) Up 0.6% Since Last Earnings Report: Can It Continue?

Dec -04

Source: zacks.com

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Groupe la Francaise Buys 35,437 Shares of Apollo Global Management Inc. $APO

Dec -04

Source: defenseworld.net

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Apollo to Present at the Goldman Sachs 2025 US Financial Services Conference

Dec -02

Source: globenewswire.com

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Advisors Asset Management Inc. Boosts Stake in Apollo Global Management Inc. $APO

Nov -28

Source: defenseworld.net

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RWE and Apollo Global Management close transaction for German power grid

Nov -26

Source: reuters.com

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Apollo, other firms accused of of blocking debt refinancing in US antitrust lawsuit

Nov -25

Source: reuters.com

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Apollo Global Management, Inc. (APO) Discusses Retirement Services Business Update, Growth Strategy and Financial Performance Transcript

Nov -24

Source: seekingalpha.com

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PAX or APO: Which Is the Better Value Stock Right Now?

Nov -20

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.69%)

6. Segments

Retirement Services

Expected Growth: 8.5%

Apollo Global Management's Retirement Services growth of 8.5% is driven by increasing demand for alternative investment solutions, regulatory changes, and a rising need for retirement planning. The segment's expansion is also fueled by Apollo's expertise in private equity, real estate, and credit, which attracts institutional investors seeking diversified portfolios.

Asset Management

Expected Growth: 9.2%

Apollo Global Management's asset management growth of 9.2% is driven by strong performance in private equity, credit, and real estate investments. The firm's AUM growth, strategic acquisitions, and opportunistic investments in high-growth sectors have contributed to this expansion. Additionally, Apollo's diversified business model and expertise in alternative investments have enabled it to capitalize on market opportunities, driving growth.

Principal Investing

Expected Growth: 10.1%

Apollo Global Management's Principal Investing growth of 10.1% is driven by strong realizations from its private equity portfolio, strategic investments in high-growth sectors, and disciplined capital allocation. The segment's performance is also supported by favorable market conditions and effective asset management strategies.

7. Detailed Products

Private Equity

Apollo Global Management's private equity segment focuses on investing in and acquiring companies across various industries, with the goal of generating returns through strategic operational improvements and financial leverage.

Credit

Apollo's credit segment provides financing solutions to companies, including loans, bonds, and other debt instruments, to help them achieve their business objectives.

Real Assets

Apollo's real assets segment invests in and manages physical assets such as real estate, infrastructure, and natural resources, generating returns through rental income, capital appreciation, and other means.

Asset Management

Apollo's asset management segment provides investment management services to institutional clients, including pension funds, endowments, and sovereign wealth funds, across various asset classes.

8. Apollo Global Management, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Apollo Global Management, Inc. operates in a highly competitive industry, but the threat of substitutes is moderate due to the specialized nature of its services.

Bargaining Power Of Customers

Apollo Global Management, Inc.'s customers have limited bargaining power due to the company's strong brand reputation and diversified client base.

Bargaining Power Of Suppliers

Apollo Global Management, Inc. has a moderate level of dependence on its suppliers, but the company's scale and diversification mitigate the bargaining power of its suppliers.

Threat Of New Entrants

The private equity industry is highly competitive, and new entrants can easily enter the market, posing a significant threat to Apollo Global Management, Inc.'s market share.

Intensity Of Rivalry

The private equity industry is highly competitive, and Apollo Global Management, Inc. faces intense rivalry from established players, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.56%
Debt Cost 3.95%
Equity Weight 63.44%
Equity Cost 12.03%
WACC 9.07%
Leverage 57.62%

11. Quality Control: Apollo Global Management, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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PNC Financial Services Group

A-Score: 6.9/10

Value: 5.8

Growth: 6.0

Quality: 6.6

Yield: 8.0

Momentum: 6.0

Volatility: 9.0

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M&T Bank

A-Score: 6.6/10

Value: 6.6

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

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Wells Fargo

A-Score: 6.1/10

Value: 5.9

Growth: 5.2

Quality: 5.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.0

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Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

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Apollo Global

A-Score: 5.7/10

Value: 4.2

Growth: 7.4

Quality: 7.6

Yield: 5.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Prudential Financial

A-Score: 5.5/10

Value: 5.7

Growth: 3.4

Quality: 4.9

Yield: 8.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

138.13$

Current Price

138.13$

Potential

-0.00%

Expected Cash-Flows