8-K: Apollo Global Management Announces Preliminary Q4 2024 Alternative Net Investment Income

Apollo Global Management reports preliminary estimates for its fourth-quarter 2024 alternative net investment income, projecting approximately $265 million pre-tax.

Summary

• Apollo Global Management has released preliminary estimates for its alternative net investment income for the fourth quarter of 2024.
• The company estimates a pre-tax alternative net investment income of approximately $265 million for the quarter.
• This equates to an estimated 9% annualized return on alternative net investments.
• Within these investments, Athene's pooled investment vehicle is estimated to have generated an 11% annualized return.
• Athene's other alternative investments, including retirement services platforms, are estimated to have generated a 5% annualized return.
• These figures exclude alternative investment income attributable to non-controlling interests.
• The company's full quarterly earnings release is scheduled for February 4, 2025.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the strong performance of the pooled investment vehicle and the overall positive return on alternative investments, but tempered by the preliminary nature of the results and the potential for material adjustments.

Positives

• The estimated 9% annualized return on alternative net investments is a positive indicator of performance.
• The 11% annualized return from Athene's pooled investment vehicle is particularly strong.
• The company is providing preliminary results ahead of the full earnings release, offering investors an early look at performance.

Negatives

• The 5% annualized return on Athene's other alternative investments is lower than the pooled investment vehicle.
• The preliminary nature of the results means they are subject to change and may differ materially from the final figures.
• The company has not completed its financial closing procedures for the period, adding uncertainty to the estimates.

Risks

• The preliminary financial results are subject to change and may differ materially from the final results.
• The company's independent auditor has not reviewed or audited these preliminary results.
• Investors should exercise caution and not draw inferences about other financial or operating data not provided.
• These preliminary results should not be seen as indicative of future performance.

Future Outlook

The company cautions that these preliminary results are not indicative of future performance and that actual results may differ materially.

Management Comments

• Management states that the preliminary financial results have been prepared in good faith and on a basis consistent with prior periods.
• Management acknowledges that the financial closing procedures for the period have not been completed and that adjustments may be required.

Industry Context

This announcement provides insight into the performance of Apollo's alternative investment strategies and its retirement services segment, which are key areas of focus for the company and its peers in the asset management industry. The performance of Athene, a major subsidiary, is also closely watched by investors.

Comparison to Industry Standards

• It is difficult to make a direct comparison without knowing the specific composition of Apollo's alternative investments and the performance of its peers.
• However, a 9% annualized return on alternative investments is generally considered a solid performance in the current market environment.
• Companies like Blackstone, KKR, and The Carlyle Group also report on their alternative investment performance, and a comparison to their results would be useful when they are released.
• The 11% return on Athene's pooled investment vehicle is a strong result, and it would be beneficial to compare this to similar pooled investment vehicles managed by other firms.

Stakeholder Impact

• Shareholders will be interested in the preliminary results as they provide an early indication of the company's financial performance.
• Employees may be impacted by the company's overall financial performance.
• Customers of Athene may be impacted by the performance of its investment portfolio.
• Creditors will be interested in the company's financial health and ability to meet its obligations.

Next Steps

• The company will release its full quarterly earnings and financial supplement on February 4, 2025.
• The company will complete its financial closing procedures for the period ended December 31, 2024.

Key Dates

Keywords

alternative investments, net investment income, Apollo Global Management, Athene Holding, financial results, earnings, retirement services, investment return