[October 30, 2014] |
|
Apollo Global Management, LLC Reports Third Quarter 2014 Results
NEW YORK --(Business Wire)--
Apollo Global Management, LLC (NYSE:APO) (together with its consolidated
subsidiaries, "Apollo") today reported results for the third quarter
ended September 30, 2014.
U.S. GAAP results for the third quarter ended September 30, 2014
included net income attributable to Apollo Global Management, LLC of
$2.2 million and net loss per Class A share of $0.05, compared to $192.5
million, or $1.13 per Class A share, for the same period in 2013. The
net loss per Class A share during the current quarter is a result of
undistributed GAAP losses in excess of distributions paid to Class A
shareholders during the quarter.
Apollo reported ENI after taxes of $48.0 million for the third quarter
ended September 30, 2014, compared to $550.9 million for the same period
in 2013. The $502.9 million decrease in ENI after taxes was driven by
lower Incentive Business ENI, partially offset by an increase in
Management Business ENI.
Apollo reported DE after taxes and related payables of $342.7 million
for the third quarter ended September 30, 2014, compared to $455.6
million for the same period in 2013. The $112.9 million decrease in DE
after taxes and related payables was primarily driven by lower net
realized carried interest income compared to the same period in 2013.
Apollo's total AUM was $163.9 billion as of September 30, 2014, an
increase of $51.2 billion, or 45%, compared to $112.7 billion as of
September 30, 2013. Fee-generating AUM was $129.6 billion as of
September 30, 2014, an increase of $50.3 billion, or 63%, compared to
$79.3 billion as of September 30, 2013. The increase in total AUM and
fee-generating AUM was driven by growth in Apollo's credit and private
equity segments.
"During the third quarter, we sustained our pace of significant
realization activity and distributed nearly $4.6 billion to Apollo's
fund investors, bringing the total to $16.5 billion in the last four
quarters," said Leon Black, Chairman and Chief Executive Officer. "In
the current market environment, we continue to leverage Apollo's
integrated global platform to raise and deploy capital across all of our
businesses, while maintaining our strong investment performance."
Combined Segments
Total revenue for Apollo's combined segments was $241.1 million for the
third quarter ended September 30, 2014, a decrease of $912.3 million, or
79%, compared to the same period in 2013, due to a decrease in Incentive
Business revenues of $1.0 billion due primarily to a $871.6 million
decrease in unrealized carried interest, partially offset by an increase
in Management Business revenues of $107.9 million. Total expenses for
Apollo's combined segments were $171.5 million for the third quarter
ended September 30, 2014, a decrease of $413.4 million, or 71%, compared
to the same period in 2013, primarily driven by a decrease in profit
sharing expense.
Total revenue for Apollo's Management Business was $311.1 million for
the third quarter ended September 30, 2014, an increase of $107.9
million, or 53%, from the same period in 2013. This includes management
fee revenues of $227.7 million for the third quarter ended September 30,
2014, an increase of $62.5 million, or 38%, from the same period in
2013, primarily due to an increase in fee-generating AUM. In addition,
there was $71.3 million of advisory and transaction fees for the third
quarter ended September 30, 2014, an increase of $42.4 million, or 147%,
from the same period in 2013 primarily due to a higher capital and
surplus fee earned from Athene Holding Ltd and its subsidiaries
("Athene").
Total expenses for Apollo's Management Business were $177.2 million for
the third quarter ended September 30, 2014, an increase of $16.9
million, or 11%, from the same period in 2013. Total compensation
expenses, including salary and benefits and equity-based compensation,
were $107.1 million for the third quarter ended September 30, 2014, an
increase of $9.3 million, or 10%, from the same period in 2013. This
increase was principally driven by increased headcount to support growth
in fee-generating AUM. Non-compensation expenses for Apollo's Management
Business were $70.1 million during the third quarter ended September 30,
2014, an increase of $7.6 million from the same period in 2013 primarily
due to placement fees.
Apollo's Incentive Business reported total carried interest loss of
$70.0 million for the third quarter ended September 30, 2014, a decrease
of $1.0 billion from the same period in 2013. Apollo reported a net
reversal of total profit sharing expense of $5.7 million for the third
quarter ended September 30, 2014, resulting in a decrease in total
profit sharing expense of $430.3 million from the same period in 2013.
The decrease in total profit sharing expense was driven by the
corresponding decrease in carried interest income from the same period
in 2013. During the third quarter ended September 30, 2014, the
Incentive Business generated $490.3 million of realized gains, which was
largely attributable to partial dispositions relating to a number of
investments held by funds managed by Apollo, including Sprouts Farmers
Market, Inc., Rexnord Corporation, and Athlon Energy, Inc., and a final
disposition of Berry Plastics Group Inc.
Private Equity Segment
Apollo's private equity segment reported an economic net loss of $23.1
million for the third quarter ended September 30, 2014, compared to an
economic net income of $538.5 million for the same period in 2013.
Apollo's private equity segment had a net unrealized carried interest
loss of $79.5 million for the third quarter ended September 30, 2014,
which included realized carried interest income of $370.0 million that
was largely driven by dispositions in Apollo Investment Fund VI, L.P.
("Fund VI") and Apollo Investment Fund VII, L.P. ("Fund VII").
Apollo's traditional private equity funds depreciated by approximately
2% during the third quarter ended September 30, 2014. From its inception
in 2008 through September 30, 2014, Fund VII generated an annual gross
and net IRR of 38% and 29%, respectively. Fund VI, which began investing
in 2006, generated an annual gross and net IRR of 13% and 11%,
respectively, since its inception through September 30, 2014.
Management fees from Apollo's private equity segment were $76.8 million
for the third quarter ended September 30, 2014, which increased by $12.0
million compared to the same period in 2013 due to the commencement of
Apollo Investment Fund VIII, L.P.'s ("Fund VIII") investment period,
partially offset by significant realizations in Fund VI and Fund VII as
well as a change in the fee basis with respect to Fund VII. Advisory and
transaction fees were $11.8 million for the third quarter ended
September 30, 2014, which increased by $6.2 million compared to the same
period in 2013 primarily due to a transaction fee associated with a
recent acquisition. Total Management Business expenses within the
private equity segment were $51.1 million for the third quarter of 2014,
which decreased by $5.4 million compared to the same period in 2013.
Uncalled commitments within Apollo's private equity segment were $22.4
billion as of September 30, 2014, and $901 million of capital was
deployed by these funds and co-investment vehicles during the third
quarter ended September 30, 2014. As of September 30, 2014, Apollo's
private equity segment total AUM was $46.2 billion, compared to $42.8
billion at September 30, 2013.
Credit Segment
Apollo's credit segment generated ENI of $109.2 million for the third
quarter ended September 30, 2014, compared to ENI of $79.5 million for
the third quarter of 2013. The $29.7 million year-over-year increase in
ENI resulted from an increase in ENI in the Management Business, which
generated ENI of $97.7 million for the third quarter ended September 30,
2014, compared to $47.6 million for the same period in 2013 as a result
of higher management fees and advisory and transaction fees. This was
offset by a reduction in ENI in the Incentive Business, which generated
ENI of $11.5 million for the third quarter ended September 30, 2014,
compared to $31.9 million for the same period in 2013 as a result of
lower net carried interest income.
Management fees from Apollo's credit segment were $139.7 million for the
third quarter ended September 30, 2014, which increased by $52.7
million, or 61%, compared to the same period in 2013 primarily due to
higher fee-generating AUM from Athene. Total Management Business
expenses within the credit segment were $111.2 million for the third
quarter of 2014, which increased by $26.9 million compared to the same
period in 2013, primarily due to costs associated with managing a
greater amount of fee-generating AUM.
Uncalled commitments within our credit segment were $9.2 billion as of
September 30, 2014, and $917 million of capital was deployed by Apollo's
credit funds and strategic investment accounts ("SIAs") with a defined
maturity date during the third quarter ended September 30, 2014. As of
September 30, 2014, Apollo's credit segment total AUM was $107.7
billion, compared to $59.4 billion at September 30, 2013.
Real Estate Segment
Apollo's real estate segment had an economic net loss of $2.9 million
for the third quarter of 2014, compared to an economic net loss of $3.1
million for the same period in 2013. Total revenues for the real estate
segment during the third quarter of 2014 were $8.5 million, a decrease
of $8.2 million, compared to the same period in 2013, primarily due to
lower carried interest compared to the same period in 2013. Total
expenses for the real estate segment during the third quarter of 2014
were $11.6 million, a decrease of $9.8 million compared to the same
period in 2013 due to lower profit share expense and lower Management
Business compensation compared to the same period in 2013.
Uncalled commitments within Apollo's real estate segment were $898
million as of September 30, 2014, and $369 million of capital was
deployed by Apollo's real estate funds and SIAs with a defined maturity
date and funds and SIAs in Apollo's real estate debt strategy during the
third quarter ended September 30, 2014. As of September 30, 2014,
Apollo's real estate segment total AUM was $9.0 billion, compared to
$9.3 billion at September 30, 2013.
Capital and Liquidity
As of September 30, 2014, Apollo had $1.4 billion of cash and cash
equivalents and $1.0 billion of debt (which does not include a $500
million undrawn revolving credit facility). These amounts exclude cash
and debt associated with Apollo's consolidated funds and consolidated
variable interest entities ("VIEs").
As of September 30, 2014, Apollo had a $1.5 billion carried interest
receivable on an unconsolidated basis and corresponding profit sharing
payable of $755.3 million, as well as total investments on an
unconsolidated basis, including investments in its private equity,
credit and real estate funds, of $822 million.
Distribution
Apollo Global Management, LLC has declared a third quarter 2014 cash
distribution of $0.73 per Class A share. This distribution will be paid
on November 21, 2014 to holders of record at the close of business on
November 14, 2014. Apollo intends to distribute to its shareholders on a
quarterly basis substantially all of its distributable earnings after
taxes and related payables in excess of amounts determined by its
manager to be necessary or appropriate to provide for the conduct of its
business. However, Apollo cannot assure its shareholders that they will
receive any distributions in the future.
Conference Call
Apollo will host a conference call on Thursday, October 30, 2014 at 8:00
a.m. Eastern Time. During the call, members of Apollo's senior
management team will review Apollo's financial results for the third
quarter ended September 30, 2014. The conference call may be accessed by
dialing (888) 868-4188 (U.S. domestic) or +1 (615) 800-6914
(international), and providing conference call ID 12339063 when prompted
by the operator. The number should be dialed at least ten minutes prior
to the start of the call. A simultaneous webcast of the conference call
will be available to the public on a listen-only basis and can be
accessed through the Investor Relations section of Apollo's website at www.agm.com.
Following the call, a replay of the event may be accessed either
telephonically or via audio webcast. A telephonic replay of the live
broadcast will be available approximately two hours after the live
broadcast by dialing (800) 585-8367 (U.S. callers) or +1 (404) 537-3406
(non-U.S. callers), pass code 12339063. To access the audio webcast,
please visit Events in the Investor Relations section of Apollo's
website at www.agm.com.
About Apollo
Apollo is a leading global alternative investment manager with offices
in New York, Los Angeles, Houston, Toronto, London, Frankfurt,
Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under
management of approximately $164 billion as of September 30, 2014 in
private equity, credit and real estate funds invested across a core
group of nine industries where Apollo has considerable knowledge and
resources. For more information about Apollo, please visit www.agm.com.
Forward-Looking Statements
In this press release, references to "Apollo," "we," "us," "our" and the
"Company" refer collectively to Apollo Global Management, LLC, together
with its consolidated subsidiaries. This press release may contain
forward-looking statements that are within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements include,
but are not limited to, discussions related to Apollo's expectations
regarding the performance of its business, its liquidity and capital
resources and the other non-historical statements in the discussion and
analysis. These forward-looking statements are based on management's
beliefs, as well as assumptions made by, and information currently
available to, management. When used in this press release, the words
"believe," "anticipate," "estimate," "expect," "intend" and similar
expressions are intended to identify forward-looking statements.
Although management believes that the expectations reflected in these
forward-looking statements are reasonable, it can give no assurance that
these expectations will prove to have been correct. These statements are
subject to certain risks, uncertainties and assumptions, including risks
relating to our dependence on certain key personnel, our ability to
raise new private equity, credit or real estate funds, market
conditions, generally, our ability to manage our growth, fund
performance, changes in our regulatory environment and tax status, the
variability of our revenues, net income and cash flow, our use of
leverage to finance our businesses and investments by our funds and
litigation risks, among others. We believe these factors include but are
not limited to those described under the section entitled "Risk Factors"
in Apollo's Form 10-K filed with the Securities and Exchange Commission
("SEC") on March 3, 2014, as such factors may be updated from time to
time in our periodic filings with the SEC, which are accessible on the
SEC's website at www.sec.gov.
These factors should not be construed as exhaustive and should be read
in conjunction with the other cautionary statements that are included in
this press release and in other filings. We undertake no obligation to
publicly update or review any forward-looking statements, whether as a
result of new information, future developments or otherwise, except as
required by applicable law. This press release does not constitute an
offer of any Apollo fund.
|
APOLLO GLOBAL MANAGEMENT, LLC
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
|
(dollars in thousands, except share data)
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and transaction fees from affiliates, net
|
|
$
|
71,071
|
|
|
$
|
28,961
|
|
|
$
|
247,922
|
|
|
$
|
141,465
|
|
Management fees from affiliates
|
|
207,297
|
|
|
151,127
|
|
|
643,508
|
|
|
456,644
|
|
Carried interest (loss) income from affiliates
|
|
(57,233
|
)
|
|
952,001
|
|
|
393,257
|
|
|
2,340,314
|
|
Total Revenues
|
|
221,135
|
|
|
1,132,089
|
|
|
1,284,687
|
|
|
2,938,423
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation
|
|
13,987
|
|
|
20,832
|
|
|
101,676
|
|
|
109,619
|
|
Salary, bonus and benefits
|
|
90,402
|
|
|
81,266
|
|
|
260,764
|
|
|
223,944
|
|
Profit sharing expense
|
|
(5,804
|
)
|
|
424,542
|
|
|
258,933
|
|
|
975,406
|
|
Total Compensation and Benefits
|
|
98,585
|
|
|
526,640
|
|
|
621,373
|
|
|
1,308,969
|
|
Interest expense
|
|
7,389
|
|
|
7,179
|
|
|
15,027
|
|
|
22,291
|
|
Professional fees
|
|
17,936
|
|
|
18,752
|
|
|
57,599
|
|
|
56,477
|
|
General, administrative and other
|
|
23,652
|
|
|
21,720
|
|
|
73,621
|
|
|
70,698
|
|
Placement fees
|
|
8,760
|
|
|
3,185
|
|
|
14,035
|
|
|
15,663
|
|
Occupancy
|
|
9,916
|
|
|
9,849
|
|
|
30,237
|
|
|
29,803
|
|
Depreciation and amortization
|
|
11,150
|
|
|
12,790
|
|
|
33,984
|
|
|
41,603
|
|
Total Expenses
|
|
177,388
|
|
|
600,115
|
|
|
845,876
|
|
|
1,545,504
|
|
Other (Loss) Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains from investment activities
|
|
12
|
|
|
74,045
|
|
|
213,886
|
|
|
127,294
|
|
Net (losses) gains from investment activities of consolidated
variable interest entities
|
|
(98,848
|
)
|
|
78,601
|
|
|
(7,688
|
)
|
|
91,264
|
|
Income from equity method investments
|
|
4,445
|
|
|
32,236
|
|
|
58,056
|
|
|
80,116
|
|
Interest income
|
|
2,243
|
|
|
3,304
|
|
|
8,297
|
|
|
9,444
|
|
Other income, net
|
|
10,013
|
|
|
22,634
|
|
|
29,782
|
|
|
26,710
|
|
Total Other (Loss) Income
|
|
(82,135
|
)
|
|
210,820
|
|
|
302,333
|
|
|
334,828
|
|
(Loss) Income before income tax provision
|
|
(38,388
|
)
|
|
742,794
|
|
|
741,144
|
|
|
1,727,747
|
|
Income tax provision
|
|
(29,376
|
)
|
|
(47,204
|
)
|
|
(96,962
|
)
|
|
(83,922
|
)
|
Net (Loss) Income
|
|
(67,764
|
)
|
|
695,590
|
|
|
644,182
|
|
|
1,643,825
|
|
Net loss (income) attributable to Non-controlling Interests
|
|
69,974
|
|
|
(503,074
|
)
|
|
(498,135
|
)
|
|
(1,143,594
|
)
|
Net Income Attributable to Apollo Global Management, LLC
|
|
$
|
2,210
|
|
|
$
|
192,516
|
|
|
$
|
146,047
|
|
|
$
|
500,231
|
|
Net (Loss) Income Per Class A Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Class A Share - Basic
|
|
$
|
(0.05
|
)
|
|
$
|
1.13
|
|
|
$
|
0.58
|
|
|
$
|
3.11
|
|
Net (Loss) Income Available to Class A Share -Diluted
|
|
$
|
(0.05
|
)
|
|
$
|
1.13
|
|
|
$
|
0.58
|
|
|
$
|
3.08
|
|
Weighted Average Number of Class A Shares - Basic
|
|
158,466,602
|
|
|
142,829,913
|
|
|
153,071,007
|
|
|
137,165,119
|
|
Weighted Average Number of Class A Shares - Diluted
|
|
158,466,602
|
|
|
146,212,984
|
|
|
153,071,007
|
|
|
140,423,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APOLLO GLOBAL MANAGEMENT, LLC
|
SEGMENT RESULTS (UNAUDITED)
|
(dollars in millions, except share data)
|
|
Summary of Combined Segment Results for
Management Business and Incentive Business:
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
March 31,
2013
|
|
June 30,
2013
|
|
September 30, 2013
|
|
December 31, 2013
|
|
March 31, 2014
|
|
June 30, 2014
|
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
Management Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and transaction fees from affiliates, net
|
|
$
|
47.4
|
|
|
$
|
65.1
|
|
|
$
|
28.9
|
|
|
$
|
55.2
|
|
|
$
|
116.1
|
|
|
$
|
60.8
|
|
|
$
|
71.3
|
|
|
$
|
141.4
|
|
|
$
|
248.2
|
|
Management fees from affiliates
|
|
164.3
|
|
|
169.3
|
|
|
165.2
|
|
|
231.8
|
|
|
223.8
|
|
|
228.9
|
|
|
227.7
|
|
|
498.8
|
|
|
680.4
|
|
Carried interest income from affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains
|
|
9.0
|
|
|
10.1
|
|
|
9.1
|
|
|
8.7
|
|
|
8.5
|
|
|
10.0
|
|
|
12.1
|
|
|
28.2
|
|
|
30.6
|
|
Total management business revenues
|
|
220.7
|
|
|
244.5
|
|
|
203.2
|
|
|
295.7
|
|
|
348.4
|
|
|
299.7
|
|
|
311.1
|
|
|
668.4
|
|
|
959.2
|
|
Equity-based compensation(1)
|
|
17.4
|
|
|
16.8
|
|
|
16.5
|
|
|
15.6
|
|
|
58.1
|
|
|
13.7
|
|
|
15.3
|
|
|
50.7
|
|
|
87.1
|
|
Salary, bonus and benefits
|
|
73.4
|
|
|
69.3
|
|
|
81.3
|
|
|
70.8
|
|
|
80.5
|
|
|
89.9
|
|
|
91.8
|
|
|
224.0
|
|
|
262.2
|
|
Interest expense
|
|
7.5
|
|
|
7.6
|
|
|
7.2
|
|
|
7.0
|
|
|
3.1
|
|
|
4.5
|
|
|
7.4
|
|
|
22.3
|
|
|
15.0
|
|
Professional fees
|
|
15.4
|
|
|
21.6
|
|
|
18.4
|
|
|
27.0
|
|
|
19.0
|
|
|
19.9
|
|
|
17.7
|
|
|
55.4
|
|
|
56.6
|
|
General, administrative and other
|
|
22.6
|
|
|
25.9
|
|
|
21.3
|
|
|
27.3
|
|
|
24.4
|
|
|
25.0
|
|
|
23.7
|
|
|
69.8
|
|
|
73.1
|
|
Placement fees
|
|
9.4
|
|
|
3.1
|
|
|
3.2
|
|
|
26.7
|
|
|
1.8
|
|
|
3.5
|
|
|
8.7
|
|
|
15.7
|
|
|
14.0
|
|
Occupancy
|
|
9.8
|
|
|
10.2
|
|
|
9.8
|
|
|
10.1
|
|
|
9.9
|
|
|
10.4
|
|
|
10.0
|
|
|
29.8
|
|
|
30.3
|
|
Depreciation and amortization(2)
|
|
2.9
|
|
|
2.9
|
|
|
2.6
|
|
|
2.6
|
|
|
2.6
|
|
|
2.5
|
|
|
2.6
|
|
|
8.4
|
|
|
7.7
|
|
Total non-compensation expenses
|
|
67.6
|
|
|
71.3
|
|
|
62.5
|
|
|
100.7
|
|
|
60.8
|
|
|
65.8
|
|
|
70.1
|
|
|
201.4
|
|
|
196.7
|
|
Total management business expenses
|
|
158.4
|
|
|
157.4
|
|
|
160.3
|
|
|
187.1
|
|
|
199.4
|
|
|
169.4
|
|
|
177.2
|
|
|
476.1
|
|
|
546.0
|
|
Other income (loss)
|
|
7.2
|
|
|
5.2
|
|
|
22.8
|
|
|
8.7
|
|
|
6.4
|
|
|
4.3
|
|
|
(0.1
|
)
|
|
35.2
|
|
|
10.6
|
|
Non-controlling interest(3)
|
|
(3.5
|
)
|
|
(3.2
|
)
|
|
(2.8
|
)
|
|
(4.5
|
)
|
|
(3.3
|
)
|
|
(3.1
|
)
|
|
(3.2
|
)
|
|
(9.5
|
)
|
|
(9.6
|
)
|
Management Business Economic Net Income
|
|
66.0
|
|
|
89.1
|
|
|
62.9
|
|
|
112.8
|
|
|
152.1
|
|
|
131.5
|
|
|
130.6
|
|
|
218.0
|
|
|
414.2
|
|
Incentive Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carried interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
771.4
|
|
|
(574.9
|
)
|
|
311.3
|
|
|
(105.0
|
)
|
|
(301.8
|
)
|
|
37.7
|
|
|
(560.3
|
)
|
|
507.8
|
|
|
(824.4
|
)
|
Realized gains
|
|
345.2
|
|
|
840.5
|
|
|
638.9
|
|
|
631.8
|
|
|
462.7
|
|
|
241.7
|
|
|
490.3
|
|
|
1,824.6
|
|
|
1,194.7
|
|
Total carried interest income
|
|
1,116.6
|
|
|
265.6
|
|
|
950.2
|
|
|
526.8
|
|
|
160.9
|
|
|
279.4
|
|
|
(70.0
|
)
|
|
2,332.4
|
|
|
370.3
|
|
Profit sharing expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized profit sharing expense
|
|
272.8
|
|
|
(219.6
|
)
|
|
165.3
|
|
|
(23.2
|
)
|
|
(99.1
|
)
|
|
65.9
|
|
|
(220.8
|
)
|
|
218.5
|
|
|
(254.0
|
)
|
Realized profit sharing expense
|
|
150.8
|
|
|
346.8
|
|
|
259.3
|
|
|
221.0
|
|
|
203.1
|
|
|
94.7
|
|
|
215.1
|
|
|
756.9
|
|
|
512.9
|
|
Total profit sharing expense
|
|
423.6
|
|
|
127.2
|
|
|
424.6
|
|
|
197.8
|
|
|
104.0
|
|
|
160.6
|
|
|
(5.7
|
)
|
|
975.4
|
|
|
258.9
|
|
Other income, net
|
|
-
|
|
|
0.3
|
|
|
2.9
|
|
|
7.0
|
|
|
14.0
|
|
|
-
|
|
|
12.0
|
|
|
3.2
|
|
|
26.0
|
|
Net gains (losses) from investment activities
|
|
4.0
|
|
|
(5.7
|
)
|
|
(7.1
|
)
|
|
(3.8
|
)
|
|
18.0
|
|
|
(9.3
|
)
|
|
0.2
|
|
|
(8.8
|
)
|
|
8.9
|
|
Income from equity method investments
|
|
29.4
|
|
|
19.2
|
|
|
30.7
|
|
|
34.0
|
|
|
28.3
|
|
|
26.0
|
|
|
4.7
|
|
|
79.3
|
|
|
59.0
|
|
Other income
|
|
33.4
|
|
|
13.8
|
|
|
26.5
|
|
|
37.2
|
|
|
60.3
|
|
|
16.7
|
|
|
16.9
|
|
|
73.7
|
|
|
93.9
|
|
Incentive Business Economic Net Income (Loss)
|
|
726.4
|
|
|
152.2
|
|
|
552.1
|
|
|
366.2
|
|
|
117.2
|
|
|
135.5
|
|
|
(47.4
|
)
|
|
1,430.7
|
|
|
205.3
|
|
Total Economic Net Income
|
|
792.4
|
|
|
241.3
|
|
|
615.0
|
|
|
479.0
|
|
|
269.3
|
|
|
267.0
|
|
|
83.2
|
|
|
1,648.7
|
|
|
619.5
|
|
Income Tax Provision on Economic Net Income(4)
|
|
(28.8
|
)
|
|
(21.2
|
)
|
|
(64.1
|
)
|
|
(35.0
|
)
|
|
(50.7
|
)
|
|
(59.5
|
)
|
|
(35.2
|
)
|
|
(114.1
|
)
|
|
(145.4
|
)
|
Total Economic Net Income After Taxes
|
|
$
|
763.6
|
|
|
$
|
220.1
|
|
|
$
|
550.9
|
|
|
$
|
444.0
|
|
|
$
|
218.6
|
|
|
$
|
207.5
|
|
|
$
|
48.0
|
|
|
$
|
1,534.6
|
|
|
$
|
474.1
|
|
Non-GAAP Weighted Average Diluted Shares Outstanding (in millions)
|
|
392.1
|
|
|
393.8
|
|
|
394.8
|
|
|
395.3
|
|
|
398.1
|
|
|
399.7
|
|
|
400.6
|
|
|
393.5
|
|
|
399.4
|
|
Total ENI After Taxes per Share
|
|
$
|
1.95
|
|
|
$
|
0.56
|
|
|
$
|
1.40
|
|
|
$
|
1.12
|
|
|
$
|
0.55
|
|
|
$
|
0.52
|
|
|
$
|
0.12
|
|
|
$
|
3.90
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The combined amounts relate to restricted share units ("RSUs")
(excluding RSUs granted in connection with the 2007 private placement)
and share options. Excludes equity-based compensation expense comprising
amortization of Apollo Operating Group ("AOG") units. (2) Includes
amortization of leasehold improvements. (3) Reflects the remaining
interest held by certain individuals who receive an allocation of income
from certain of the credit management companies. (4) During the
first quarter of 2014, the calculation of the income tax provision on
economic net income was revised to include the benefit of tax deductions
in excess of GAAP deductions from share-based arrangements, as further
discussed in the definition of ENI After Taxes in the non-GAAP financial
information and definitions section of this press release. The prior
period financial data was recast to conform to the revised definition of
income tax provision on economic net income. The difference in the ENI
tax provision under the revised definition as compared to the previous
methodology is $22.3 million or $0.06 per Class A share for each quarter
presented in 2013.
|
APOLLO GLOBAL MANAGEMENT, LLC
|
SEGMENT RESULTS (UNAUDITED)
|
(dollars in millions, except share data)
|
|
Private Equity Segment:
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
March 31, 2013
|
|
June 30,
2013
|
|
|
September 30, 2013
|
|
December 31, 2013
|
|
March 31,
2014
|
|
|
June 30, 2014
|
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
Management Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and transaction fees from affiliates, net
|
|
$
|
24.5
|
|
|
$
|
41.8
|
|
|
$
|
5.6
|
|
|
$
|
6.5
|
|
|
$
|
37.7
|
|
|
$
|
5.2
|
|
|
$
|
11.8
|
|
|
$
|
71.9
|
|
|
$
|
54.7
|
|
Management fees from affiliates
|
|
66.3
|
|
|
65.7
|
|
|
64.8
|
|
|
88.0
|
|
|
79.4
|
|
|
82.1
|
|
|
76.8
|
|
|
196.8
|
|
|
238.3
|
|
Total management business revenues
|
|
90.8
|
|
|
107.5
|
|
|
70.4
|
|
|
94.5
|
|
|
117.1
|
|
|
87.3
|
|
|
88.6
|
|
|
268.7
|
|
|
293.0
|
|
Equity-based compensation
|
|
8.4
|
|
|
7.5
|
|
|
7.5
|
|
|
8.6
|
|
|
24.4
|
|
|
7.1
|
|
|
7.9
|
|
|
23.4
|
|
|
39.4
|
|
Salary, bonus and benefits
|
|
27.4
|
|
|
25.7
|
|
|
27.9
|
|
|
28.8
|
|
|
22.3
|
|
|
26.7
|
|
|
23.8
|
|
|
81.0
|
|
|
72.8
|
|
Other expenses
|
|
21.9
|
|
|
26.8
|
|
|
21.1
|
|
|
42.7
|
|
|
18.7
|
|
|
20.5
|
|
|
19.4
|
|
|
69.8
|
|
|
58.6
|
|
Total management business expenses
|
|
57.7
|
|
|
60.0
|
|
|
56.5
|
|
|
80.1
|
|
|
65.4
|
|
|
54.3
|
|
|
51.1
|
|
|
174.2
|
|
|
170.8
|
|
Other income (loss)
|
|
1.6
|
|
|
0.9
|
|
|
6.7
|
|
|
3.8
|
|
|
1.7
|
|
|
0.9
|
|
|
(1.4
|
)
|
|
9.2
|
|
|
1.2
|
|
Management Business Economic Net Income
|
|
34.7
|
|
|
48.4
|
|
|
20.6
|
|
|
18.2
|
|
|
53.4
|
|
|
33.9
|
|
|
36.1
|
|
|
103.7
|
|
|
123.4
|
|
Incentive Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carried interest income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
697.6
|
|
|
(509.7
|
)
|
|
318.3
|
|
|
(51.5
|
)
|
|
(293.6
|
)
|
|
(10.4
|
)
|
|
(449.5
|
)
|
|
506.2
|
|
|
(753.5
|
)
|
Realized gains
|
|
293.4
|
|
|
738.2
|
|
|
534.1
|
|
|
496.9
|
|
|
396.9
|
|
|
198.0
|
|
|
370.0
|
|
|
1,565.7
|
|
|
964.9
|
|
Total carried interest income (loss)
|
|
991.0
|
|
|
228.5
|
|
|
852.4
|
|
|
445.4
|
|
|
103.3
|
|
|
187.6
|
|
|
(79.5
|
)
|
|
2,071.9
|
|
|
211.4
|
|
Profit sharing expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized profit sharing expense
|
|
256.0
|
|
|
(199.6
|
)
|
|
129.0
|
|
|
(37.7
|
)
|
|
(115.9
|
)
|
|
33.7
|
|
|
(186.4
|
)
|
|
185.4
|
|
|
(268.6
|
)
|
Realized profit sharing expense
|
|
131.9
|
|
|
312.9
|
|
|
229.1
|
|
|
208.8
|
|
|
182.0
|
|
|
82.1
|
|
|
167.2
|
|
|
673.9
|
|
|
431.3
|
|
Total profit sharing expense
|
|
387.9
|
|
|
113.3
|
|
|
358.1
|
|
|
171.1
|
|
|
66.1
|
|
|
115.8
|
|
|
(19.2
|
)
|
|
859.3
|
|
|
162.7
|
|
Other income, net
|
|
-
|
|
|
0.1
|
|
|
0.4
|
|
|
1.2
|
|
|
1.6
|
|
|
-
|
|
|
-
|
|
|
0.5
|
|
|
1.6
|
|
Income from equity method investments
|
|
22.6
|
|
|
12.0
|
|
|
23.2
|
|
|
21.1
|
|
|
18.8
|
|
|
13.4
|
|
|
1.1
|
|
|
57.8
|
|
|
33.3
|
|
Total other income
|
|
22.6
|
|
|
12.1
|
|
|
23.6
|
|
|
22.3
|
|
|
20.4
|
|
|
13.4
|
|
|
1.1
|
|
|
58.3
|
|
|
34.9
|
|
Incentive Business Economic Net Income (Loss)
|
|
625.7
|
|
|
127.3
|
|
|
517.9
|
|
|
296.6
|
|
|
57.6
|
|
|
85.2
|
|
|
(59.2
|
)
|
|
1,270.9
|
|
|
83.6
|
|
Total Economic Net Income (Loss)
|
|
$
|
660.4
|
|
|
$
|
175.7
|
|
|
$
|
538.5
|
|
|
$
|
314.8
|
|
|
$
|
111.0
|
|
|
$
|
119.1
|
|
|
$
|
(23.1
|
)
|
|
$
|
1,374.6
|
|
|
$
|
207.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APOLLO GLOBAL MANAGEMENT, LLC
|
SEGMENT RESULTS (UNAUDITED)
|
(dollars in millions, except share data)
|
|
Credit Segment:
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
March 31, 2013
|
|
June 30, 2013
|
|
September 30, 2013
|
|
December 31, 2013
|
|
March 31,
2014
|
|
|
June 30, 2014
|
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
Management Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and transaction fees from affiliates, net
|
|
$
|
21.8
|
|
|
$
|
22.0
|
|
|
$
|
23.3
|
|
|
$
|
47.6
|
|
|
$
|
77.5
|
|
|
$
|
55.6
|
|
|
$
|
58.6
|
|
|
$
|
67.1
|
|
|
$
|
191.7
|
|
Management fees from affiliates
|
|
84.4
|
|
|
90.4
|
|
|
87.0
|
|
|
130.6
|
|
|
131.6
|
|
|
134.6
|
|
|
139.7
|
|
|
261.8
|
|
|
405.9
|
|
Carried interest income from affiliates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains
|
|
9.0
|
|
|
10.1
|
|
|
9.1
|
|
|
8.7
|
|
|
8.5
|
|
|
10.0
|
|
|
12.1
|
|
|
28.2
|
|
|
30.6
|
|
Total management business revenues
|
|
115.2
|
|
|
122.5
|
|
|
119.4
|
|
|
186.9
|
|
|
217.6
|
|
|
200.2
|
|
|
210.4
|
|
|
357.1
|
|
|
628.2
|
|
Equity-based compensation
|
|
6.5
|
|
|
7.1
|
|
|
5.9
|
|
|
4.6
|
|
|
28.3
|
|
|
5.5
|
|
|
6.3
|
|
|
19.5
|
|
|
40.1
|
|
Salary, bonus and benefits
|
|
38.8
|
|
|
36.4
|
|
|
44.0
|
|
|
33.9
|
|
|
50.7
|
|
|
55.8
|
|
|
60.4
|
|
|
119.2
|
|
|
166.9
|
|
Other expenses
|
|
38.4
|
|
|
38.2
|
|
|
34.4
|
|
|
51.1
|
|
|
36.4
|
|
|
39.7
|
|
|
44.5
|
|
|
111.0
|
|
|
120.6
|
|
Total management business expenses
|
|
83.7
|
|
|
81.7
|
|
|
84.3
|
|
|
89.6
|
|
|
115.4
|
|
|
101.0
|
|
|
111.2
|
|
|
249.7
|
|
|
327.6
|
|
Other income
|
|
4.5
|
|
|
4.0
|
|
|
15.3
|
|
|
4.7
|
|
|
4.3
|
|
|
3.2
|
|
|
1.7
|
|
|
23.8
|
|
|
9.2
|
|
Non-controlling interest
|
|
(3.5
|
)
|
|
(3.2
|
)
|
|
(2.8
|
)
|
|
(4.5
|
)
|
|
(3.3
|
)
|
|
(3.1
|
)
|
|
(3.2
|
)
|
|
(9.5
|
)
|
|
(9.6
|
)
|
Management Business Economic Net Income
|
|
32.5
|
|
|
41.6
|
|
|
47.6
|
|
|
97.5
|
|
|
103.2
|
|
|
99.3
|
|
|
97.7
|
|
|
121.7
|
|
|
300.2
|
|
Incentive Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carried interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
73.2
|
|
|
(58.8
|
)
|
|
(10.3
|
)
|
|
(60.7
|
)
|
|
(7.9
|
)
|
|
47.2
|
|
|
(107.2
|
)
|
|
4.1
|
|
|
(67.9
|
)
|
Realized gains
|
|
51.5
|
|
|
102.1
|
|
|
104.8
|
|
|
134.9
|
|
|
65.8
|
|
|
39.7
|
|
|
120.3
|
|
|
258.4
|
|
|
225.8
|
|
Total carried interest income
|
|
124.7
|
|
|
43.3
|
|
|
94.5
|
|
|
74.2
|
|
|
57.9
|
|
|
86.9
|
|
|
13.1
|
|
|
262.5
|
|
|
157.9
|
|
Profit sharing expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized profit sharing expense
|
|
16.5
|
|
|
(15.5
|
)
|
|
34.5
|
|
|
12.4
|
|
|
17.4
|
|
|
31.0
|
|
|
(30.9
|
)
|
|
35.5
|
|
|
17.5
|
|
Realized profit sharing expense
|
|
18.8
|
|
|
33.9
|
|
|
30.2
|
|
|
11.9
|
|
|
21.1
|
|
|
11.0
|
|
|
47.7
|
|
|
82.9
|
|
|
79.8
|
|
Total profit sharing expense
|
|
35.3
|
|
|
18.4
|
|
|
64.7
|
|
|
24.3
|
|
|
38.5
|
|
|
42.0
|
|
|
16.8
|
|
|
118.4
|
|
|
97.3
|
|
Other income, net
|
|
-
|
|
|
0.2
|
|
|
2.5
|
|
|
5.8
|
|
|
12.4
|
|
|
-
|
|
|
12.0
|
|
|
2.7
|
|
|
24.4
|
|
Net gains (losses) from investment activities
|
|
4.0
|
|
|
(5.7
|
)
|
|
(7.1
|
)
|
|
(3.8
|
)
|
|
18.0
|
|
|
(9.3
|
)
|
|
0.2
|
|
|
(8.8
|
)
|
|
8.9
|
|
Income from equity method investments
|
|
6.9
|
|
|
6.4
|
|
|
6.7
|
|
|
10.7
|
|
|
8.8
|
|
|
9.4
|
|
|
3.0
|
|
|
20.0
|
|
|
21.2
|
|
Total other income
|
|
10.9
|
|
|
0.9
|
|
|
2.1
|
|
|
12.7
|
|
|
39.2
|
|
|
0.1
|
|
|
15.2
|
|
|
13.9
|
|
|
54.5
|
|
Incentive Business Economic Net Income
|
|
100.3
|
|
|
25.8
|
|
|
31.9
|
|
|
62.6
|
|
|
58.6
|
|
|
45.0
|
|
|
11.5
|
|
|
158.0
|
|
|
115.1
|
|
Total Economic Net Income
|
|
$
|
132.8
|
|
|
$
|
67.4
|
|
|
$
|
79.5
|
|
|
$
|
160.1
|
|
|
$
|
161.8
|
|
|
$
|
144.3
|
|
|
$
|
109.2
|
|
|
$
|
279.7
|
|
|
$
|
415.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APOLLO GLOBAL MANAGEMENT, LLC
|
SEGMENT RESULTS (UNAUDITED)
|
(dollars in millions, except share data)
|
|
Real Estate Segment:
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
March 31, 2013
|
|
June 30,
2013
|
|
September 30, 2013
|
|
December 31, 2013
|
|
March 31,
2014
|
|
|
June 30, 2014
|
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
Management Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory and transaction fees from affiliates, net
|
|
$
|
1.1
|
|
|
$
|
1.3
|
|
|
$
|
-
|
|
|
$
|
1.1
|
|
|
$
|
0.9
|
|
|
$
|
-
|
|
|
$
|
0.9
|
|
|
$
|
2.4
|
|
|
$
|
1.8
|
|
Management fees from affiliates
|
|
13.6
|
|
|
13.2
|
|
|
13.4
|
|
|
13.2
|
|
|
12.8
|
|
|
12.2
|
|
|
11.2
|
|
|
40.2
|
|
|
36.2
|
|
Total management business revenues
|
|
14.7
|
|
|
14.5
|
|
|
13.4
|
|
|
14.3
|
|
|
13.7
|
|
|
12.2
|
|
|
12.1
|
|
|
42.6
|
|
|
38.0
|
|
Equity-based compensation
|
|
2.5
|
|
|
2.2
|
|
|
3.1
|
|
|
2.4
|
|
|
5.4
|
|
|
1.1
|
|
|
1.0
|
|
|
7.8
|
|
|
7.5
|
|
Salary, bonus and benefits
|
|
7.2
|
|
|
7.1
|
|
|
9.4
|
|
|
8.2
|
|
|
7.5
|
|
|
7.4
|
|
|
7.6
|
|
|
23.7
|
|
|
22.5
|
|
Other expenses
|
|
7.3
|
|
|
6.0
|
|
|
7.1
|
|
|
7.1
|
|
|
5.7
|
|
|
5.6
|
|
|
6.3
|
|
|
20.4
|
|
|
17.6
|
|
Total management business expenses
|
|
17.0
|
|
|
15.3
|
|
|
19.6
|
|
|
17.7
|
|
|
18.6
|
|
|
14.1
|
|
|
14.9
|
|
|
51.9
|
|
|
47.6
|
|
Other income (loss)
|
|
1.1
|
|
|
0.3
|
|
|
0.8
|
|
|
0.2
|
|
|
0.4
|
|
|
0.2
|
|
|
(0.4
|
)
|
|
2.2
|
|
|
0.2
|
|
Management Business Economic Net Loss
|
|
(1.2
|
)
|
|
(0.5
|
)
|
|
(5.4
|
)
|
|
(3.2
|
)
|
|
(4.5
|
)
|
|
(1.7
|
)
|
|
(3.2
|
)
|
|
(7.1
|
)
|
|
(9.4
|
)
|
Incentive Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carried interest income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
0.6
|
|
|
(6.4
|
)
|
|
3.3
|
|
|
7.2
|
|
|
(0.3
|
)
|
|
0.9
|
|
|
(3.6
|
)
|
|
(2.5
|
)
|
|
(3.0
|
)
|
Realized gains
|
|
0.3
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.0
|
|
|
-
|
|
|
0.5
|
|
|
4.0
|
|
Total carried interest income (loss)
|
|
0.9
|
|
|
(6.2
|
)
|
|
3.3
|
|
|
7.2
|
|
|
(0.3
|
)
|
|
4.9
|
|
|
(3.6
|
)
|
|
(2.0
|
)
|
|
1.0
|
|
Profit sharing expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized profit sharing expense
|
|
0.3
|
|
|
(4.5
|
)
|
|
1.8
|
|
|
2.1
|
|
|
(0.6
|
)
|
|
1.2
|
|
|
(3.5
|
)
|
|
(2.4
|
)
|
|
(2.9
|
)
|
Realized profit sharing expense
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
0.2
|
|
|
-
|
|
|
1.6
|
|
|
0.2
|
|
|
0.2
|
|
|
1.8
|
|
Total profit sharing expense
|
|
0.5
|
|
|
(4.5
|
)
|
|
1.8
|
|
|
2.3
|
|
|
(0.6
|
)
|
|
2.8
|
|
|
(3.3
|
)
|
|
(2.2
|
)
|
|
(1.1
|
)
|
(Loss) income from equity method investments
|
|
(0.1
|
)
|
|
0.8
|
|
|
0.8
|
|
|
2.2
|
|
|
0.7
|
|
|
3.2
|
|
|
0.6
|
|
|
1.5
|
|
|
4.5
|
|
Incentive Business Economic Net Income (Loss)
|
|
0.3
|
|
|
(0.9
|
)
|
|
2.3
|
|
|
7.1
|
|
|
1.0
|
|
|
5.3
|
|
|
0.3
|
|
|
1.7
|
|
|
6.6
|
|
Total Economic Net (Loss) Income
|
|
$
|
(0.9
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(3.1
|
)
|
|
$
|
3.9
|
|
|
$
|
(3.5
|
)
|
|
$
|
3.6
|
|
|
$
|
(2.9
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
(2.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APOLLO GLOBAL MANAGEMENT, LLC
|
DISTRIBUTABLE EARNINGS (UNAUDITED)
|
(dollars in millions, except share data)
|
|
Summary of Distributable Earnings and
Economic Net Income
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
March 31,
2013
|
|
|
June 30, 2013
|
|
September 30, 2013
|
|
December 31, 2013
|
|
March 31, 2014
|
|
June 30, 2014
|
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
Management Business Economic Net Income
|
|
$
|
66.0
|
|
|
$
|
89.1
|
|
|
$
|
62.9
|
|
|
$
|
112.8
|
|
|
$
|
152.1
|
|
|
$
|
131.5
|
|
|
$
|
130.6
|
|
|
$
|
218.0
|
|
|
$
|
414.2
|
|
Net realized carried interest income
|
|
194.4
|
|
|
493.7
|
|
|
379.6
|
|
|
410.8
|
|
|
259.6
|
|
|
147.0
|
|
|
275.2
|
|
|
1,067.7
|
|
|
681.8
|
|
Realized investment income(1)
|
|
19.7
|
|
|
29.2
|
|
|
27.5
|
|
|
31.3
|
|
|
24.7
|
|
|
5.7
|
|
|
6.4
|
|
|
76.4
|
|
|
36.8
|
|
Athene capital and surplus fees(2)
|
|
(20.1
|
)
|
|
(21.8
|
)
|
|
(22.6
|
)
|
|
(45.5
|
)
|
|
(59.1
|
)
|
|
(51.9
|
)
|
|
(58.0
|
)
|
|
(64.5
|
)
|
|
(169.0
|
)
|
Equity-based compensation
|
|
17.4
|
|
|
16.8
|
|
|
16.5
|
|
|
15.6
|
|
|
58.1
|
|
|
13.7
|
|
|
15.3
|
|
|
50.7
|
|
|
87.1
|
|
Depreciation and amortization
|
|
2.9
|
|
|
2.9
|
|
|
2.6
|
|
|
2.6
|
|
|
2.6
|
|
|
2.5
|
|
|
2.6
|
|
|
8.4
|
|
|
7.7
|
|
Distributable Earnings
|
|
280.3
|
|
|
609.9
|
|
|
466.5
|
|
|
527.6
|
|
|
438.0
|
|
|
248.5
|
|
|
372.1
|
|
|
1,356.7
|
|
|
1,058.6
|
|
Taxes and related payables(3)
|
|
(4.9
|
)
|
|
(6.0
|
)
|
|
(10.9
|
)
|
|
(19.4
|
)
|
|
(25.9
|
)
|
|
(21.4
|
)
|
|
(29.4
|
)
|
|
(21.8
|
)
|
|
(76.7
|
)
|
Distributable Earnings After Taxes and Related Payables
|
|
$
|
275.4
|
|
|
$
|
603.9
|
|
|
$
|
455.6
|
|
|
$
|
508.2
|
|
|
$
|
412.1
|
|
|
$
|
227.1
|
|
|
$
|
342.7
|
|
|
$
|
1,334.9
|
|
|
$
|
981.9
|
|
Net unrealized carried interest income (loss)
|
|
498.6
|
|
|
(355.4
|
)
|
|
146.0
|
|
|
(81.7
|
)
|
|
(202.7
|
)
|
|
(28.2
|
)
|
|
(339.5
|
)
|
|
289.2
|
|
|
(570.4
|
)
|
Unrealized investment and other income (loss)
|
|
13.7
|
|
|
(15.3
|
)
|
|
(1.0
|
)
|
|
5.8
|
|
|
35.6
|
|
|
11.0
|
|
|
10.5
|
|
|
(2.6
|
)
|
|
57.1
|
|
Add back: Athene capital and surplus fees(2)
|
|
20.1
|
|
|
21.8
|
|
|
22.6
|
|
|
45.5
|
|
|
59.1
|
|
|
51.9
|
|
|
58.0
|
|
|
64.5
|
|
|
169.0
|
|
Add back: Taxes and related payables(3)
|
|
4.9
|
|
|
6.0
|
|
|
10.9
|
|
|
19.4
|
|
|
25.9
|
|
|
21.4
|
|
|
29.4
|
|
|
21.8
|
|
|
76.7
|
|
Less: Equity-based compensation
|
|
(17.4
|
)
|
|
(16.8
|
)
|
|
(16.5
|
)
|
|
(15.6
|
)
|
|
(58.1
|
)
|
|
(13.7
|
)
|
|
(15.3
|
)
|
|
(50.7
|
)
|
|
(87.1
|
)
|
Less: Depreciation and amortization
|
|
(2.9
|
)
|
|
(2.9
|
)
|
|
(2.6
|
)
|
|
(2.6
|
)
|
|
(2.6
|
)
|
|
(2.5
|
)
|
|
(2.6
|
)
|
|
(8.4
|
)
|
|
(7.7
|
)
|
Total Economic Net Income
|
|
792.4
|
|
|
241.3
|
|
|
615.0
|
|
|
479.0
|
|
|
269.3
|
|
|
267.0
|
|
|
83.2
|
|
|
1,648.7
|
|
|
619.5
|
|
Income Tax Provision on Economic Net Income
|
|
(28.8
|
)
|
|
(21.2
|
)
|
|
(64.1
|
)
|
|
(35.0
|
)
|
|
(50.7
|
)
|
|
(59.5
|
)
|
|
(35.2
|
)
|
|
(114.1
|
)
|
|
(145.4
|
)
|
Total Economic Net Income After Taxes
|
|
$
|
763.6
|
|
|
$
|
220.1
|
|
|
$
|
550.9
|
|
|
$
|
444.0
|
|
|
$
|
218.6
|
|
|
$
|
207.5
|
|
|
$
|
48.0
|
|
|
$
|
1,534.6
|
|
|
$
|
474.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents realized gains from our general partner investments in
our funds and other balance sheet investments.
(2) Represents monitoring fees paid by Athene to Apollo by delivery of
common shares of Athene Holding, calculated based on Athene's capital
and surplus, as defined in our transaction and advisory services
agreement with Athene.
(3) Represents the estimated current corporate, local and Non-U.S. taxes
as well as the payable under Apollo's tax receivable agreement.
|
APOLLO GLOBAL MANAGEMENT, LLC
|
DISTRIBUTABLE EARNINGS (UNAUDITED)
|
(dollars in millions, except share data)
|
|
Distribution to Common and Equivalents(1)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
March 31, 2013
|
|
June 30, 2013
|
|
September 30, 2013
|
|
December 31, 2013
|
|
March 31, 2014
|
|
June 30, 2014
|
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
Distributable Earnings After Taxes and Related Payables
|
|
$
|
275.4
|
|
|
$
|
603.9
|
|
|
$
|
455.6
|
|
|
$
|
508.2
|
|
|
$
|
412.1
|
|
|
$
|
227.1
|
|
|
$
|
342.7
|
|
|
$
|
1,334.9
|
|
|
$
|
981.9
|
|
Add back: Taxes and related payables attributable to common and
equivalents
|
|
2.7
|
|
|
3.7
|
|
|
8.6
|
|
|
17.2
|
|
|
22.6
|
|
|
18.7
|
|
|
26.9
|
|
|
15.0
|
|
|
68.2
|
|
Distributable earnings before certain payables(2)
|
|
278.1
|
|
|
607.6
|
|
|
464.2
|
|
|
525.4
|
|
|
434.7
|
|
|
245.8
|
|
|
369.6
|
|
|
1,349.9
|
|
|
1,050.1
|
|
Percent to common and equivalents
|
|
40
|
%
|
|
42
|
%
|
|
42
|
%
|
|
43
|
%
|
|
43
|
%
|
|
45
|
%
|
|
45
|
%
|
|
42
|
%
|
|
44
|
%
|
Distributable earnings before other payables attributable to common
and equivalents
|
|
111.0
|
|
|
257.8
|
|
|
195.5
|
|
|
225.4
|
|
|
186.8
|
|
|
111.1
|
|
|
167.9
|
|
|
564.3
|
|
|
465.8
|
|
Less: Taxes and related payables attributable to common and
equivalents
|
|
(2.7
|
)
|
|
(3.7
|
)
|
|
(8.6
|
)
|
|
(17.2
|
)
|
|
(22.6
|
)
|
|
(18.7
|
)
|
|
(26.9
|
)
|
|
(15.0
|
)
|
|
(68.2
|
)
|
Distributable earnings attributable to common and equivalents
|
|
108.3
|
|
|
254.1
|
|
|
186.9
|
|
|
208.2
|
|
|
164.2
|
|
|
92.4
|
|
|
141.0
|
|
|
549.3
|
|
|
397.6
|
|
Distributable earnings per share of common and equivalent(3)
|
|
$
|
0.69
|
|
|
$
|
1.51
|
|
|
$
|
1.11
|
|
|
$
|
1.21
|
|
|
$
|
0.94
|
|
|
$
|
0.51
|
|
|
$
|
0.77
|
|
|
$
|
3.31
|
|
|
$
|
2.22
|
|
Retained capital per share of common and equivalent(3)
|
|
(0.12
|
)
|
|
(0.19
|
)
|
|
(0.10
|
)
|
|
(0.13
|
)
|
|
(0.10
|
)
|
|
(0.05
|
)
|
|
(0.04
|
)
|
|
(0.41
|
)
|
|
(0.19
|
)
|
Net distribution per share of common and equivalent(3)
|
|
$
|
0.57
|
|
|
$
|
1.32
|
|
|
$
|
1.01
|
|
|
$
|
1.08
|
|
|
$
|
0.84
|
|
|
$
|
0.46
|
|
|
$
|
0.73
|
|
|
$
|
2.90
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Common and equivalents refers to Class A shares and RSUs that
participate in distributions.
(2) Distributable earnings before certain payables represents
distributable earnings before the deduction for the estimated current
corporate taxes and the payable under Apollo's tax receivable agreement.
(3) Per share calculations are based on total Class A shares outstanding
and RSUs that participate in distributions.
|
APOLLO GLOBAL MANAGEMENT, LLC
|
RECONCILIATION OF U.S. GAAP NET INCOME
|
ATTRIBUTABLE TO APOLLO GLOBAL MANAGEMENT, LLC
|
TO ECONOMIC NET INCOME
|
(UNAUDITED)
|
(dollars in millions)
|
|
Reconciliation of U.S. GAAP Net Income
Attributable to Apollo Global Management, LLC to Economic Net
Income:
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
March 31, 2013
|
|
June 30,
2013
|
|
|
September 30, 2013
|
|
December 31, 2013
|
|
March 31,
2014
|
|
|
June 30, 2014
|
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
Net Income Attributable to Apollo Global Management, LLC
|
|
$
|
249.0
|
|
|
$
|
58.7
|
|
|
$
|
192.5
|
|
|
$
|
159.2
|
|
|
$
|
72.2
|
|
|
$
|
71.7
|
|
|
$
|
2.2
|
|
|
$
|
500.2
|
|
|
$
|
146.1
|
|
Impact of non-cash charges related to equity-based compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AOG units
|
|
15.0
|
|
|
15.0
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
30.0
|
|
|
-
|
|
RSUs - Private placement awards(1)
|
|
11.4
|
|
|
11.0
|
|
|
3.3
|
|
|
0.1
|
|
|
0.1
|
|
|
(0.2
|
)
|
|
-
|
|
|
25.7
|
|
|
(0.1
|
)
|
Other equity-based compensation awards (2)
|
|
1.3
|
|
|
0.5
|
|
|
0.6
|
|
|
0.4
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
2.4
|
|
|
0.1
|
|
AAA RDUs
|
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.2
|
|
|
(0.1
|
)
|
|
-
|
|
|
0.8
|
|
|
0.1
|
|
Total non-cash charges related to equity-based compensation
|
|
28.0
|
|
|
26.7
|
|
|
4.2
|
|
|
0.9
|
|
|
0.4
|
|
|
(0.4
|
)
|
|
0.1
|
|
|
58.9
|
|
|
0.1
|
|
Income tax provision
|
|
18.6
|
|
|
18.1
|
|
|
47.2
|
|
|
23.7
|
|
|
32.5
|
|
|
35.0
|
|
|
29.4
|
|
|
83.9
|
|
|
96.9
|
|
Amortization of intangible assets associated with the 2007
reorganization and acquisitions
|
|
11.6
|
|
|
11.3
|
|
|
10.3
|
|
|
10.0
|
|
|
9.1
|
|
|
8.6
|
|
|
8.6
|
|
|
33.2
|
|
|
26.3
|
|
Net income attributable to Non-controlling Interests in Apollo
Operating Group
|
|
485.2
|
|
|
126.5
|
|
|
360.8
|
|
|
285.2
|
|
|
155.1
|
|
|
152.1
|
|
|
42.9
|
|
|
972.5
|
|
|
350.1
|
|
Economic Net Income
|
|
$
|
792.4
|
|
|
$
|
241.3
|
|
|
$
|
615.0
|
|
|
$
|
479.0
|
|
|
$
|
269.3
|
|
|
$
|
267.0
|
|
|
$
|
83.2
|
|
|
$
|
1,648.7
|
|
|
$
|
619.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents RSU awards granted in connection with the 2007 private
placement.
(2) Includes non-cash revenue and expense related to equity awards
granted by unconsolidated affiliates to employees of the Company.
APOLLO GLOBAL MANAGEMENT, LLC ASSETS UNDER MANAGEMENT
(UNAUDITED)
Assets Under Management-Fee-Generating and Non-Fee Generating
The table below sets forth fee-generating and non-fee generating AUM by
segment as of September 30, 2014 and 2013 and December 31, 2013. Changes
in market conditions and additional funds raised have had significant
impact on Apollo's AUM.
|
|
|
|
|
|
|
|
|
As of September 30,
|
|
|
As of December 31,
|
|
|
|
2014
|
|
2013
|
|
|
2013
|
|
|
|
(in millions)
|
|
Total Assets Under Management
|
|
$
|
163,900
|
|
(1)
|
$
|
112,687
|
|
(1)
|
|
$
|
161,177
|
|
(1)
|
Fee-generating
|
|
129,577
|
|
|
79,343
|
|
|
|
128,368
|
|
|
Non-fee generating
|
|
34,323
|
|
(1)
|
33,344
|
|
(1)
|
|
32,809
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Equity
|
|
46,173
|
|
|
42,767
|
|
|
|
49,908
|
|
|
Fee-generating
|
|
32,104
|
|
|
27,059
|
|
|
|
34,173
|
|
|
Non-fee generating
|
|
14,069
|
|
|
15,708
|
|
|
|
15,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
|
|
107,675
|
|
|
59,359
|
|
|
|
100,886
|
|
|
Fee-generating
|
|
91,614
|
|
|
46,625
|
|
|
|
88,249
|
|
|
Non-fee generating
|
|
16,061
|
|
|
12,734
|
|
|
|
12,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
9,045
|
|
|
9,339
|
|
|
|
9,289
|
|
|
Fee-generating
|
|
5,859
|
|
|
5,659
|
|
|
|
5,946
|
|
|
Non-fee generating
|
|
3,186
|
|
|
3,680
|
|
|
|
3,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of September 30, 2014 and 2013 and December 31, 2013, includes
$1.0 billion, $1.2 billion and $1.1 billion of commitments,
respectively, that have yet to be deployed to an Apollo fund within
Apollo's three segments.
The following table presents Carry Eligible AUM and Carry Generating AUM
for each of Apollo's three segments as of September 30, 2014 and 2013
and December 31, 2013:
|
|
|
|
|
|
|
Carry Eligible AUM
|
|
Carry Generating AUM
|
|
|
As of September 30,
|
|
As of December 31,
|
|
As of September 30,
|
|
As of December 31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
2014
|
|
2013
|
|
2013
|
|
|
(in millions)
|
Private equity
|
|
$
|
40,527
|
|
|
$
|
39,157
|
|
|
$
|
45,050
|
|
|
$
|
18,651
|
|
|
$
|
11,635
|
|
|
$
|
24,791
|
Credit
|
|
38,676
|
|
|
29,541
|
|
|
34,580
|
|
|
24,439
|
|
|
20,476
|
|
|
23,539
|
Real estate
|
|
2,525
|
|
|
3,043
|
|
|
3,041
|
|
|
850
|
|
|
540
|
|
|
941
|
Total(1)(2)
|
|
$
|
82,734
|
|
|
$
|
72,972
|
|
|
$
|
83,729
|
|
|
$
|
43,940
|
|
|
$
|
32,651
|
|
|
$
|
49,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of September 30, 2014 and 2013 and December 31, 2013, Carry
Eligible AUM includes $1.0 billion, $1.2 billion and $1.1 billion of
commitments, respectively, that have yet to be deployed to an Apollo
fund within Apollo's three segments. (2) As of September 30, 2014
and 2013 and December 31, 2013, Carry Eligible AUM includes $29.5
billion, $21.6 billion and $28.7 billion of Uninvested Carry Eligible
AUM, respectively, and $9.3 billion, $18.7 billion and $5.8 billion of
AUM Not Currently Generating Carry, respectively.
APOLLO GLOBAL MANAGEMENT, LLC ASSETS UNDER MANAGEMENT
(UNAUDITED)
The following tables summarize changes in total AUM for each of Apollo's
three segments for the three and nine months ended September 30, 2014
and 2013:
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
|
For the Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
(in millions)
|
Change in Total AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
167,496
|
|
(1)
|
|
$
|
113,116
|
|
(1)
|
|
$
|
161,177
|
|
(1)
|
|
$
|
113,379
|
|
(1)
|
(Loss) Income
|
|
(559
|
)
|
|
|
5,327
|
|
|
|
2,836
|
|
|
|
11,661
|
|
|
Subscriptions/Capital raised
|
|
2,845
|
|
|
|
4,022
|
|
|
|
8,905
|
|
(2)
|
|
12,148
|
|
|
Distributions
|
|
(4,573
|
)
|
|
|
(6,259
|
)
|
|
|
(10,664
|
)
|
|
|
(16,841
|
)
|
|
Redemptions
|
|
(293
|
)
|
|
|
(104
|
)
|
|
|
(613
|
)
|
|
|
(1,122
|
)
|
|
Leverage/Other(3)
|
|
(1,016
|
)
|
|
|
(3,415
|
)
|
|
|
2,259
|
|
|
|
(6,538
|
)
|
|
End of Period
|
|
$
|
163,900
|
|
(1)
|
|
$
|
112,687
|
|
(1)
|
|
$
|
163,900
|
|
(1)
|
|
$
|
112,687
|
|
(1)
|
Change in Private Equity AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
51,585
|
|
|
|
$
|
40,213
|
|
|
|
$
|
49,908
|
|
|
|
$
|
37,832
|
|
|
(Loss) Income
|
|
(727
|
)
|
|
|
4,131
|
|
|
|
861
|
|
|
|
8,646
|
|
|
Subscriptions/Capital raised
|
|
221
|
|
|
|
3,332
|
|
|
|
3,041
|
|
(2)
|
|
9,170
|
|
|
Distributions
|
|
(2,834
|
)
|
|
|
(4,210
|
)
|
|
|
(6,591
|
)
|
|
|
(11,781
|
)
|
|
Redemptions
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(19
|
)
|
|
Net segment transfers
|
|
(1,205
|
)
|
|
|
56
|
|
|
|
(1,216
|
)
|
|
|
1,118
|
|
|
Leverage
|
|
(867
|
)
|
|
|
(755
|
)
|
|
|
170
|
|
|
|
(2,199
|
)
|
|
End of Period
|
|
$
|
46,173
|
|
|
|
$
|
42,767
|
|
|
|
$
|
46,173
|
|
|
|
$
|
42,767
|
|
|
Change in Credit AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
105,725
|
|
|
|
$
|
62,212
|
|
|
|
$
|
100,886
|
|
|
|
$
|
64,406
|
|
|
Income
|
|
436
|
|
|
|
991
|
|
|
|
1,920
|
|
|
|
2,887
|
|
|
Subscriptions/Capital raised
|
|
2,443
|
|
|
|
690
|
|
|
|
5,242
|
|
(2)
|
|
1,990
|
|
|
Distributions
|
|
(1,347
|
)
|
|
|
(1,568
|
)
|
|
|
(2,805
|
)
|
|
|
(4,209
|
)
|
|
Redemptions
|
|
(293
|
)
|
|
|
(104
|
)
|
|
|
(479
|
)
|
|
|
(813
|
)
|
|
Net segment transfers
|
|
1,060
|
|
|
|
(184
|
)
|
|
|
562
|
|
|
|
(679
|
)
|
|
Leverage/Other(3)
|
|
(349
|
)
|
|
|
(2,678
|
)
|
|
|
2,349
|
|
|
|
(4,223
|
)
|
|
End of Period
|
|
$
|
107,675
|
|
|
|
$
|
59,359
|
|
|
|
$
|
107,675
|
|
|
|
$
|
59,359
|
|
|
Change in Real Estate AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
9,056
|
|
|
|
$
|
9,473
|
|
|
|
$
|
9,289
|
|
|
|
$
|
8,800
|
|
|
(Loss) Income
|
|
(146
|
)
|
|
|
197
|
|
|
|
142
|
|
|
|
116
|
|
|
Subscriptions/Capital raised
|
|
181
|
|
|
|
-
|
|
|
|
622
|
|
|
|
988
|
|
|
Distributions
|
|
(392
|
)
|
|
|
(477
|
)
|
|
|
(1,268
|
)
|
|
|
(847
|
)
|
|
Redemptions(4)
|
|
-
|
|
|
|
-
|
|
|
|
(134
|
)
|
|
|
(290
|
)
|
|
Net segment transfers
|
|
145
|
|
|
|
128
|
|
|
|
654
|
|
|
|
688
|
|
|
Leverage
|
|
201
|
|
|
|
18
|
|
|
|
(260
|
)
|
|
|
(116
|
)
|
|
End of Period
|
|
$
|
9,045
|
|
|
|
$
|
9,339
|
|
|
|
$
|
9,045
|
|
|
|
$
|
9,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of September 30, 2014 and 2013, June 30, 2014 and 2013, and
December 31, 2013 and 2012 includes $1.0 billion, $1.2 billion, $1.1
billion, $1.2 billion, $1.1 billion and $2.3 billion of commitments,
respectively, that have yet to be deployed to an Apollo fund within
Apollo's three segments. (2) For the nine months ended
September 30, 2014, includes $2.5 billion, respectively, of AUM from
co-investment vehicles that was raised in prior periods. (3)
Represents changes in used and available leverage, and includes the
changes in NAV on AUM managed by Athene Asset Management that is not
sub-advised by Apollo. (4) Represents release of unfunded
commitments primarily related to two legacy Citi Property Investors
("CPI") real estate funds that were past their investment periods.
APOLLO GLOBAL MANAGEMENT, LLC ASSETS UNDER MANAGEMENT
(UNAUDITED)
The following tables summarize changes in total fee-generating AUM and
fee-generating AUM for each of Apollo's three segments for the three and
nine months ended September 30, 2014 and 2013:
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(in millions)
|
Change in Total Fee-Generating AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
130,329
|
|
|
$
|
79,290
|
|
|
$
|
128,368
|
|
|
$
|
81,934
|
|
(Loss) Income
|
|
(140
|
)
|
|
956
|
|
|
646
|
|
|
1,989
|
|
Subscriptions/Capital raised
|
|
282
|
|
|
10,240
|
|
|
2,465
|
|
|
12,403
|
|
Distributions
|
|
(1,041
|
)
|
|
(1,865
|
)
|
|
(3,614
|
)
|
|
(5,017
|
)
|
Redemptions
|
|
(286
|
)
|
|
(27
|
)
|
|
(449
|
)
|
|
(737
|
)
|
Net movements between Fee-Generating and Non-Fee Generating
|
|
547
|
|
|
(7,229
|
)
|
|
66
|
|
|
(6,808
|
)
|
Leverage/Other(1)
|
|
(114
|
)
|
|
(2,022
|
)
|
|
2,095
|
|
|
(4,421
|
)
|
End of Period
|
|
$
|
129,577
|
|
|
$
|
79,343
|
|
|
$
|
129,577
|
|
|
$
|
79,343
|
|
Change in Private Equity Fee-Generating AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
33,554
|
|
|
$
|
26,014
|
|
|
$
|
34,173
|
|
|
$
|
27,932
|
|
(Loss) Income
|
|
(8
|
)
|
|
274
|
|
|
(54
|
)
|
|
348
|
|
Subscriptions/Capital raised
|
|
-
|
|
|
9,586
|
|
|
455
|
|
|
9,629
|
|
Distributions
|
|
(111
|
)
|
|
(788
|
)
|
|
(591
|
)
|
|
(2,026
|
)
|
Redemptions
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(19
|
)
|
Net segment transfers
|
|
(1,266
|
)
|
|
50
|
|
|
(1,277
|
)
|
|
246
|
|
Net movements between Fee-Generating and Non-Fee Generating
|
|
(49
|
)
|
|
(7,333
|
)
|
|
(514
|
)
|
|
(7,523
|
)
|
Leverage
|
|
(16
|
)
|
|
(744
|
)
|
|
(88
|
)
|
|
(1,528
|
)
|
End of Period
|
|
$
|
32,104
|
|
|
$
|
27,059
|
|
|
$
|
32,104
|
|
|
$
|
27,059
|
|
Change in Credit Fee-Generating AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
90,780
|
|
|
$
|
47,507
|
|
|
$
|
88,249
|
|
|
$
|
49,518
|
|
(Loss) Income
|
|
(43
|
)
|
|
618
|
|
|
703
|
|
|
1,603
|
|
Subscriptions/Capital raised
|
|
214
|
|
|
654
|
|
|
1,606
|
|
|
1,858
|
|
Distributions
|
|
(633
|
)
|
|
(749
|
)
|
|
(1,861
|
)
|
|
(2,378
|
)
|
Redemptions
|
|
(286
|
)
|
|
(27
|
)
|
|
(449
|
)
|
|
(718
|
)
|
Net segment transfers
|
|
1,073
|
|
|
(178
|
)
|
|
575
|
|
|
(884
|
)
|
Net movements between Fee-Generating and Non-Fee Generating
|
|
607
|
|
|
78
|
|
|
608
|
|
|
519
|
|
Leverage/Other(1)
|
|
(98
|
)
|
|
(1,278
|
)
|
|
2,183
|
|
|
(2,893
|
)
|
End of Period
|
|
$
|
91,614
|
|
|
$
|
46,625
|
|
|
$
|
91,614
|
|
|
$
|
46,625
|
|
Change in Real Estate Fee-Generating AUM:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of Period
|
|
$
|
5,995
|
|
|
$
|
5,769
|
|
|
$
|
5,946
|
|
|
$
|
4,484
|
|
(Loss) Income
|
|
(90
|
)
|
|
64
|
|
|
(4
|
)
|
|
38
|
|
Subscriptions/Capital raised
|
|
68
|
|
|
-
|
|
|
404
|
|
|
916
|
|
Distributions
|
|
(296
|
)
|
|
(328
|
)
|
|
(1,161
|
)
|
|
(613
|
)
|
Net segment transfers
|
|
193
|
|
|
128
|
|
|
702
|
|
|
638
|
|
Net movements between Fee-Generating and Non-Fee Generating
|
|
(11
|
)
|
|
26
|
|
|
(28
|
)
|
|
196
|
|
End of Period
|
|
$
|
5,859
|
|
|
$
|
5,659
|
|
|
$
|
5,859
|
|
|
$
|
5,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents changes in used and available leverage, and includes the
changes in NAV on AUM managed by Athene Asset Management that is not
sub-advised by Apollo.
As of September 30, 2014, approximately 69% of the value of our funds'
investments on a gross basis were determined using market-based
valuation methods (i.e., reliance on broker or listed exchange quotes)
and the remaining 31% were determined primarily by comparable company
and industry multiples or discounted cash flow models. For our private
equity, credit and real estate segments, the percentage determined using
market-based valuation methods as of September 30, 2014 were 47%, 81%
and 52%, respectively.
APOLLO GLOBAL MANAGEMENT, LLC FUND PERFORMANCE (UNAUDITED)
Investment Record
The following table summarizes the investment record by segment for
Apollo's multi-year drawdown, commitment-based funds and strategic
investment accounts ("SIAs") that have a defined maturity date in which
investors make commitments to provide capital at the formation of such
funds and deliver capital when called as investment opportunities become
available. All amounts are as of September 30, 2014, unless otherwise
noted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2014
|
|
As of December 31, 2013
|
|
|
|
Strategy
|
|
Vintage Year
|
|
Committed Capital
|
|
Total Invested Capital
|
|
Realized
|
|
Unrealized(1)
|
|
Total Value
|
|
Gross IRR
|
|
Net IRR
|
|
Gross IRR
|
|
Net IRR
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Equity:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund VIII
|
|
Traditional Private Equity Funds
|
|
2013
|
|
$
|
18,377
|
|
|
$
|
1,154
|
|
|
$
|
-
|
|
|
$
|
1,274
|
|
|
$
|
1,274
|
|
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
Fund VII
|
|
Traditional Private Equity Funds
|
|
2008
|
|
14,677
|
|
|
15,161
|
|
|
22,964
|
|
|
9,585
|
|
|
32,549
|
|
|
38
|
%
|
|
29
|
%
|
|
39
|
%
|
|
30
|
%
|
|
Fund VI
|
|
Traditional Private Equity Funds
|
|
2006
|
|
10,136
|
|
|
12,457
|
|
|
14,975
|
|
|
6,154
|
|
|
21,129
|
|
|
13
|
|
|
11
|
|
|
15
|
|
|
12
|
|
|
Fund V
|
|
Traditional Private Equity Funds
|
|
2001
|
|
3,742
|
|
|
5,192
|
|
|
12,655
|
|
|
285
|
|
|
12,940
|
|
|
61
|
|
|
44
|
|
|
61
|
|
|
44
|
|
|
Fund IV
|
|
Traditional Private Equity Funds
|
|
1998
|
|
3,600
|
|
|
3,481
|
|
|
6,776
|
|
|
27
|
|
|
6,803
|
|
|
12
|
|
|
9
|
|
|
12
|
|
|
9
|
|
|
Fund III
|
|
Traditional Private Equity Funds
|
|
1995
|
|
1,500
|
|
|
1,499
|
|
|
2,695
|
|
|
-
|
|
|
2,695
|
|
|
18
|
|
|
11
|
|
|
18
|
|
|
11
|
|
|
Fund I, II & MIA(4)
|
|
Traditional Private Equity Funds
|
|
1990/ 1992
|
|
2,220
|
|
|
3,773
|
|
|
7,924
|
|
|
-
|
|
|
7,924
|
|
|
47
|
|
|
37
|
|
|
47
|
|
|
37
|
|
|
Subtotal
|
|
|
|
|
|
$
|
54,252
|
|
|
$
|
42,717
|
|
|
$
|
67,989
|
|
|
$
|
17,325
|
|
|
$
|
85,314
|
|
|
39
|
%
|
(5)
|
26
|
%
|
(5)
|
39
|
%
|
(5)
|
26
|
%
|
(5)
|
AION
|
|
Other
|
|
2013
|
|
825
|
|
|
134
|
|
|
-
|
|
|
169
|
|
|
169
|
|
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
ANRP
|
|
Natural Resources
|
|
2012
|
|
1,323
|
|
|
588
|
|
|
25
|
|
|
748
|
|
|
773
|
|
|
22
|
%
|
|
11
|
%
|
|
18
|
%
|
|
7
|
%
|
|
Total Private Equity
|
|
|
|
|
|
$
|
56,400
|
|
|
$
|
43,439
|
|
|
$
|
68,014
|
|
|
$
|
18,242
|
|
|
$
|
86,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit:(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACRF III (7)
|
|
Structured Credit
|
|
-
|
|
$
|
205
|
|
|
$
|
123
|
|
|
$
|
3
|
|
|
$
|
118
|
|
|
$
|
121
|
|
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
COF III (7)
|
|
Opportunistic Credit
|
|
-
|
|
3,426
|
|
|
975
|
|
|
105
|
|
|
910
|
|
|
1,015
|
|
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
FCI II
|
|
Structured Credit
|
|
2013
|
|
1,555
|
|
|
653
|
|
|
5
|
|
|
756
|
|
|
761
|
|
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
NM
|
(3)
|
EPF II(8)
|
|
Non-Performing Loans
|
|
2012
|
|
3,566
|
|
|
1,965
|
|
|
366
|
|
|
1,974
|
|
|
2,340
|
|
|
28
|
%
|
|
13
|
%
|
|
NM
|
(3)
|
NM
|
(3)
|
FCI
|
|
Structured Credit
|
|
2012
|
|
559
|
|
|
443
|
|
|
188
|
|
|
518
|
|
|
706
|
|
|
14
|
|
|
10
|
|
|
NM
|
(3)
|
NM
|
(3)
|
AEC
|
|
European Credit
|
|
2012
|
|
292
|
|
|
605
|
|
|
499
|
|
|
180
|
|
|
679
|
|
|
15
|
|
|
10
|
|
|
19
|
%
|
|
12
|
%
|
|
AIE II(8)
|
|
European Credit
|
|
2008
|
|
261
|
|
|
840
|
|
|
1,243
|
|
|
96
|
|
|
1,339
|
|
|
20
|
|
|
17
|
|
|
20
|
|
|
17
|
|
|
COF I
|
|
U.S. Performing Credit
|
|
2008
|
|
1,485
|
|
|
1,611
|
|
|
4,273
|
|
|
148
|
|
|
4,421
|
|
|
30
|
|
|
27
|
|
|
30
|
|
|
27
|
|
|
COF II
|
|
U.S. Performing Credit
|
|
2008
|
|
1,583
|
|
|
2,176
|
|
|
2,985
|
|
|
159
|
|
|
3,144
|
|
|
14
|
|
|
11
|
|
|
14
|
|
|
11
|
|
|
EPF I(8)
|
|
Non-Performing Loans
|
|
2007
|
|
1,636
|
|
|
2,150
|
|
|
2,703
|
|
|
804
|
|
|
3,507
|
|
|
22
|
|
|
18
|
|
|
21
|
|
|
16
|
|
|
ACLF
|
|
U.S. Performing Credit
|
|
2007
|
|
984
|
|
|
1,449
|
|
|
2,446
|
|
|
155
|
|
|
2,601
|
|
|
13
|
|
|
11
|
|
|
13
|
|
|
11
|
|
|
Total Credit
|
|
|
|
|
|
$
|
15,552
|
|
|
$
|
12,990
|
|
|
$
|
14,816
|
|
|
$
|
5,818
|
|
|
$
|
20,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate:(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AGRE U.S. Real Estate Fund, L.P(9)
|
|
Equity
|
|
2012
|
|
$
|
865
|
|
|
$
|
582
|
|
|
$
|
299
|
|
|
$
|
441
|
|
|
$
|
740
|
|
|
17
|
%
|
|
13
|
%
|
|
17
|
%
|
|
14
|
%
|
|
AGRE Debt Fund I, LP
|
|
Debt
|
|
2011
|
|
1,127
|
|
|
954
|
|
|
276
|
|
|
812
|
|
|
1,088
|
|
|
11
|
|
|
9
|
|
|
13
|
|
|
11
|
|
|
CPI Capital Partners North America(10)
|
|
Equity
|
|
2006
|
|
600
|
|
|
453
|
|
|
350
|
|
|
30
|
|
|
380
|
|
|
16
|
|
|
11
|
|
|
17
|
|
|
13
|
|
|
CPI Capital Partners Asia Pacific(10)
|
|
Equity
|
|
2006
|
|
1,292
|
|
|
1,179
|
|
|
1,470
|
|
|
211
|
|
|
1,681
|
|
|
34
|
|
|
30
|
|
|
37
|
|
|
33
|
|
|
CPI Capital Partners Europe(8)(10)
|
|
Equity
|
|
2006
|
|
1,468
|
|
|
969
|
|
|
403
|
|
|
315
|
|
|
718
|
|
|
4
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
CPI Other(11)
|
|
Equity
|
|
Various
|
|
2,101
|
|
|
N/A
|
|
N/A
|
(11)
|
N/A
|
(11)
|
N/A
|
(11)
|
NM
|
(11)
|
NM
|
(11)
|
NM
|
(11)
|
NM
|
(11)
|
Total Real Estate
|
|
|
|
|
|
$
|
7,453
|
|
|
$
|
4,137
|
|
|
$
|
2,798
|
|
|
$
|
1,809
|
|
|
$
|
4,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Figures include the market values, estimated fair value of certain
unrealized investments and capital committed to investments. (2)
Amounts presented are computed based on actual timing of the funds' cash
inflows and outflows. (3) Returns have not been presented as the
fund commenced investing capital less than 24 months prior to the period
indicated and therefore such return information was deemed not
meaningful. (4) Fund I and Fund II were structured such that
investments were made from either fund depending on which fund had
available capital. Apollo does not differentiate between Fund I and Fund
II investments for purposes of performance figures because they are not
meaningful on a separate basis and do not demonstrate the progression of
returns over time. The general partners and managers of Funds I, II and
MIA, as well as the general partner of Fund III were excluded assets in
connection with the 2007 reorganization. As a result, Apollo Global
Management, LLC did not receive the economics associated with these
entities. The investment performance of these funds is presented to
illustrate fund performance associated with Apollo's managing partners
and other investment professionals. (5) Total IRR is calculated
based on total cash flows for all funds presented. (6) The
investment record table for the credit and real estate funds and SIAs
presented is computed based on the actual dates of capital
contributions, distributions and ending limited partners' capital as of
the specified dates. (7) Apollo Credit Opportunity Fund III, L.P.
("COF III") and Apollo Structured Recovery Fund III, L.P. ("ACRF III")
were launched during 2013 and 2014, respectively, and have not
established their vintage year. (8) Funds are denominated in Euros
and historical figures are translated into U.S. dollars at an exchange
rate of €1.00 to $1.26 as of September 30, 2014. (9) AGRE U.S.
Real Estate Fund, L.P., a closed-end private investment fund has $152
million of co-invest commitments raised, which are included in the
figures in the table above. A co-invest entity within AGRE U.S. Real
Estate Fund is denominated in GBP and translated into U.S. dollars at an
exchange rate of £1.00 to $1.62 as of September 30, 2014. (10)
As part of the CPI acquisition, Apollo acquired general partner
interests in fully invested funds. The gross and net IRRs are presented
in the investment record table above since acquisition on November 12,
2010. The net IRRs from the inception of the respective fund to
September 30, 2014 were (7)%, 7% and (8)% for the CPI Capital Partners
North America, Asia Pacific and Europe funds, respectively. These net
IRRs were primarily achieved during a period in which Apollo did not
make the initial investment decisions and Apollo only became the general
partner or manager of these funds upon completing the acquisition on
November 12, 2010. (11) CPI Other consists of funds or
individual investments of which Apollo is not the general partner or
manager and only receives fees pursuant to either a sub-advisory
agreement or an investment management and administrative agreement. CPI
Other fund performance is a result of invested capital prior to Apollo's
management of these funds. Return and certain other performance data are
therefore not considered meaningful as Apollo performs primarily an
administrative role.
Credit
The following table summarizes the investment record for certain funds
and SIAs within Apollo's credit segment with no maturity date. All
amounts are as of September 30, 2014, unless otherwise noted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Return
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategy
|
|
Vintage Year
|
|
Net Asset Value as of September 30,
2014
|
|
Since Inception to September 30,
2014
|
|
For the Nine Months Ended September
30, 2014
|
|
For the Nine Months Ended September
30, 2013
|
|
Since Inception to December 31,
2013
|
|
For the Year Ended December 31,
2013
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRF(1)
|
|
U.S. Performing Credit
|
|
2014
|
|
$
|
293
|
|
|
NM
|
(1)
|
NM
|
(1)
|
NM
|
(1)
|
NM
|
(1)
|
NM
|
(1)
|
ACSF(2)
|
|
Opportunistic Credit
|
|
2011
|
|
449
|
|
|
26%
|
(2)
|
4%
|
(2)
|
NM
|
(2)
|
NM
|
(2)
|
NM
|
(2)
|
SOMA(3)
|
|
Opportunistic Credit
|
|
2007
|
|
801
|
|
|
69
|
|
7
|
|
7%
|
|
58%
|
|
9%
|
|
ACF(2)
|
|
U.S. Performing Credit
|
|
2005
|
|
1,995
|
|
|
34
|
(2)
|
6
|
(2)
|
NM
|
(2)
|
NM
|
(2)
|
NM
|
(2)
|
Value Funds(4)
|
|
Opportunistic Credit
|
|
2003/2006
|
|
241
|
|
|
70
|
|
(2)
|
|
5
|
|
74
|
|
5
|
|
Totals
|
|
|
|
|
|
$
|
3,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Apollo Total Return Fund ("TRF") returns have not been presented as
the fund commenced investing capital less than 24 months prior to period
indicated and therefore such return information was deemed not
meaningful. (2) As part of the Stone Tower acquisition, Apollo
acquired the manager of Apollo Credit Strategies Master Fund Ltd.
("ACSF") and Apollo Credit Master Fund Ltd. ("ACF"). The net returns are
presented in the investment record table above since acquisition on
April 2, 2012. As of September 30, 2014, the net returns from inception
for ACSF and ACF were 43% and 9% respectively. These returns were
primarily achieved during a period in which Apollo did not make the
initial investment decisions. Apollo became the manager of these funds
upon completing the acquisition on April 2, 2012. (3) Net
asset value and returns are for the primary mandate and excludes Apollo
Special Opportunities Managed Account, L.P.'s ("SOMA") investments in
other Apollo funds. (4) Value Funds consist of Apollo Strategic
Value Master Fund, L.P., together with its feeder funds, and Apollo
Value Investment Master Fund, L.P., together with its feeder funds.
APOLLO GLOBAL MANAGEMENT, LLC FUND PERFORMANCE (UNAUDITED)
The following table summarizes the investment record for publicly traded
vehicles that Apollo manages by segment as of September 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Returns(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategy
|
|
IPO Year(2)
|
|
Raised Capital(3)
|
|
Gross Assets
|
|
Current NAV
|
|
Since Inception to September 30,
2014
|
|
For the Nine Months Ended
September 30, 2014
|
|
For the Nine Months Ended
September 30, 2013
|
|
Since Inception to
December 31, 2013
|
|
For the Year Ended December
31, 2013
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA(4)
|
|
Other
|
|
2006
|
|
$
|
1,823
|
|
|
$
|
2,148
|
|
|
$
|
2,145
|
|
|
56%
|
|
10%
|
|
93%
|
|
41%
|
|
91%
|
|
Credit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIF(5)
|
|
U.S. Performing Credit
|
|
2013
|
|
276
|
|
|
419
|
|
|
281
|
|
|
NM
|
(6)
|
NM
|
(6)
|
NM
|
(6)
|
NM
|
(6)
|
NM
|
(6)
|
AFT(5)
|
|
U.S. Performing Credit
|
|
2011
|
|
295
|
|
|
443
|
|
|
294
|
|
|
9
|
|
(1)
|
|
-
|
|
NM
|
(6)
|
NM
|
(6)
|
AMTG(7)
|
|
Structured Credit
|
|
2011
|
|
791
|
|
|
3,895
|
|
|
797
|
|
|
22
|
|
13
|
|
(20)
|
|
8
|
|
(17)
|
|
AINV (8)
|
|
Opportunistic Credit
|
|
2004
|
|
3,080
|
|
|
3,812
|
|
|
2,069
|
|
|
61
|
|
3
|
|
5
|
|
55
|
|
12
|
|
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARI (9)
|
|
Debt
|
|
2009
|
|
879
|
|
|
1,466
|
|
|
850
|
|
|
25
|
|
4
|
|
1
|
|
20
|
|
10
|
|
Totals
|
|
|
|
|
|
$
|
7,144
|
|
|
$
|
12,183
|
|
|
$
|
6,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) Total returns are based on the change in closing trading prices
during the respective periods presented taking into account dividends
and distributions, if any, as if they were reinvested without regard to
commissions. (2) An initial public offering ("IPO") year represents
the year in which the vehicle commenced trading on a national securities
exchange. Apollo Tactical Income Fund Inc. ("AIF"), Apollo Senior
Floating Rate Fund Inc. ("AFT"), Apollo Residential Mortgage, Inc.
("AMTG") and Apollo Commercial Real Estate Finance, Inc. ("ARI") are
publicly traded vehicles traded on the New York Stock Exchange ("NYSE").
Apollo Investment Corporation ("AINV") is a public company traded on the
National Association of Securities Dealers Automated Quotation. AAA is a
publicly traded vehicle traded on Euronext Amsterdam. (3) Amounts
represent raised capital net of offering and issuance costs. (4)
AAA is the sole limited partner in AAA Investments, L.P. ("AAA
Investments"). Athene was AAA Investments' only investment as of
September 30, 2014. During the second quarter of 2014, Athene Holding
Ltd. raised $1.2 billion of net equity commitments primarily from
third-party institutional investors, certain existing investors in
Athene, and employees of Athene and its affiliates (the "Athene Private
Placement"). For the period December 31, 2013 through September 30,
2014, AAA Investments' ownership stake in Athene was reduced as a result
of the Athene Private Placement, the issuance of shares under the
amended AAA services agreement and the issuance of 3.7 million
unrestricted common shares of Athene Holding Ltd. under Athene's
management equity plan and was increased by the conversion to common
shares of AAA Investments' note receivable from Athene, resulting in an
approximate 48.3% economic ownership stake (calculated as if the
commitments in the Athene Private Placement closed through September 30,
2014 were fully drawn down but without giving effect to (i) restricted
common shares issued under Athene's management equity plan or (ii)
common shares to be issued after September 30, 2014 under the amended
AAA services agreement or the amended Athene services agreement) and
effectively 45% of the voting power of Athene. (5) Gross Assets
presented for AFT and AIF represents total managed assets of these
closed-end funds. (6) Returns have not been presented as the
publicly traded vehicle commenced investing capital less than 24 months
prior to the period indicated and therefore such return information was
deemed not meaningful. (7) Refer to www.apolloresidentialmortgage.com
for the most recent financial information on AMTG. The information
contained on AMTG's website is not part of this press release. All
amounts are as of June 30, 2014 except for total returns. (8)
Refer to www.apolloic.com
for the most recent financial information on AINV. The information
contained on AINV's website is not part of this press release. All
amounts are as of June 30, 2014 except for total returns. (9)
Refer to www.apolloreit.com
for the most recent financial information on ARI. The information
contained on ARI's website is not part of this press release. All
amounts are as of June 30, 2014 except for total returns.
Athene and SIAs
As of September 30, 2014, Athene Asset Management, L.P. had $60.1
billion of total AUM in accounts owned by or related to Athene, of which
approximately $11.8 billion was either sub-advised by Apollo or invested
in Apollo funds and investment vehicles. Of the approximately $11.8
billion of assets, the vast majority were in sub-advisory managed
accounts that manage high grade credit asset classes, such as
collateralized loan obligation ("CLO") debt, commercial mortgage backed
securities, and insurance-linked securities.
Apollo also manages CLOs within Apollo's credit segment, with such CLOs
representing a total AUM of approximately $13.3 billion as of
September 30, 2014. Such CLO performance information is not included in
the above investment record tables.
As of September 30, 2014, Apollo managed approximately $15 billion of
total AUM in SIAs, which include certain SIAs in the investment record
tables above and capital deployed from certain SIAs across Apollo's
private equity, credit and real estate funds. The above investment
record tables exclude certain funds with an aggregate AUM of
approximately $6.0 billion as of September 30, 2014 because management
deemed them to be immaterial.
APOLLO GLOBAL MANAGEMENT, LLC SUPPLEMENTAL SEGMENT
INFORMATION (UNAUDITED)
Supplemental Segment Information
Dollars Invested
The following table summarizes by segment the dollars invested for funds
and SIAs with a defined maturity date and certain funds and SIAs in
Apollo's real estate debt strategy during the specified reporting
periods:
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(in millions)
|
Private Equity
|
|
$
|
901
|
|
|
$
|
120
|
|
|
$
|
1,871
|
|
|
$
|
1,488
|
Credit
|
|
917
|
|
|
481
|
|
|
3,655
|
|
|
2,090
|
Real Estate (1)
|
|
369
|
|
|
231
|
|
|
1,745
|
|
|
1,907
|
Total dollars invested
|
|
$
|
2,187
|
|
|
$
|
832
|
|
|
$
|
7,271
|
|
|
$
|
5,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included in dollars invested is $285.6 million and $1,321.5 million
for the three and nine months ended September 30, 2014, respectively,
and $220.7 million and $1,567.7 million for the three and nine months
ended September 30, 2013, respectively, for funds in Apollo's real
estate debt strategy.
Uncalled Commitments
The following table summarizes the uncalled commitments by segment
during the specified reporting periods:
|
|
|
|
|
|
|
As of September 30, 2014
|
|
As of September 30, 2013
|
|
As of December 31, 2013
|
|
(in millions)
|
Private Equity
|
$
|
22,434
|
|
|
$
|
16,125
|
|
|
$
|
23,689
|
Credit
|
9,230
|
|
|
6,443
|
|
|
7,113
|
Real Estate
|
898
|
|
|
1,019
|
|
|
971
|
Total Uncalled Commitments(1)(2)
|
$
|
33,568
|
|
|
$
|
24,808
|
|
|
$
|
32,852
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of September 30, 2014 and 2013 and December 31, 2013, includes
$1.0 billion, $1.2 billion and $1.1 billion of commitments,
respectively, that have yet to be deployed to an Apollo fund within
Apollo's three segments. (2) As of September 30, 2014 and 2013 and
December 31, 2013, $29.8 billion, $21.5 billion, and $29.5 billion,
respectively, represents the amount of capital available for investment
or reinvestment subject to the provisions of the applicable limited
partnership agreements or other governing agreements.
APOLLO GLOBAL MANAGEMENT, LLC CARRIED INTEREST RECEIVABLE
AND CARRIED INTEREST INCOME (LOSS) SUMMARY (UNAUDITED)
The table below presents an analysis of Apollo's (i) carried interest
receivable on an unconsolidated basis and (ii) realized and unrealized
carried interest income (loss) for Apollo's combined segments' Incentive
Business as of and for the three and nine months ended September 30,
2014:
|
|
|
|
|
|
|
As of September 30, 2014
|
|
For the Three Months Ended September 30, 2014
|
|
For the Nine Months Ended September 30, 2014
|
|
Carried Interest Receivable on an
Unconsolidated Basis
|
|
Unrealized
Carried
Interest
Income
(Loss)
|
|
Realized
Carried
Interest
Income
|
|
Total
Carried
Interest
Income
(Loss)
|
|
Unrealized Carried Interest Income
(Loss)
|
|
Realized Carried Interest Income
|
|
Total Carried Interest Income
(Loss)
|
|
(in millions)
|
Private Equity Funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund VII
|
$
|
797.6
|
|
|
$
|
(197.8
|
)
|
|
$
|
178.6
|
|
|
$
|
(19.2
|
)
|
|
$
|
(98.9
|
)
|
|
$
|
468.2
|
|
|
$
|
369.3
|
|
Fund VI
|
101.5
|
|
|
(236.2
|
)
|
|
153.7
|
|
|
(82.5
|
)
|
|
(596.0
|
)
|
|
401.5
|
|
|
(194.5
|
)
|
Fund V
|
17.1
|
|
|
(24.2
|
)
|
|
18.9
|
|
|
(5.3
|
)
|
|
(25.9
|
)
|
|
42.7
|
|
|
16.8
|
|
Fund IV
|
5.5
|
|
|
0.3
|
|
|
-
|
|
|
0.3
|
|
|
(2.2
|
)
|
|
-
|
|
|
(2.2
|
)
|
AAA/Other (1)(2)
|
198.2
|
|
|
8.4
|
|
|
18.8
|
|
|
27.2
|
|
|
(30.5
|
)
|
|
52.5
|
|
|
22.0
|
|
Total Private Equity Funds
|
1,119.9
|
|
|
(449.5
|
)
|
|
370.0
|
|
|
(79.5
|
)
|
|
(753.5
|
)
|
|
964.9
|
|
|
211.4
|
|
Credit Funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Performing Credit
|
77.0
|
|
|
(72.0
|
)
|
|
59.2
|
|
|
(12.8
|
)
|
|
(80.5
|
)
|
|
101.7
|
|
|
21.2
|
|
Opportunistic Credit
|
42.6
|
|
|
(13.6
|
)
|
|
1.5
|
|
|
(12.1
|
)
|
|
7.2
|
|
|
6.1
|
|
|
13.3
|
|
Structured Credit
|
59.3
|
|
|
0.1
|
|
|
0.7
|
|
|
0.8
|
|
|
3.8
|
|
|
4.7
|
|
|
8.5
|
|
European Credit
|
14.7
|
|
|
0.3
|
|
|
1.5
|
|
|
1.8
|
|
|
(0.2
|
)
|
|
10.2
|
|
|
10.0
|
|
Non-Performing Loans
|
156.2
|
|
|
(22.0
|
)
|
|
57.4
|
|
|
35.4
|
|
|
1.8
|
|
|
103.1
|
|
|
104.9
|
|
Total Credit Funds
|
349.8
|
|
|
(107.2
|
)
|
|
120.3
|
|
|
13.1
|
|
|
(67.9
|
)
|
|
225.8
|
|
|
157.9
|
|
Real Estate Funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPI Funds
|
2.2
|
|
|
(4.5
|
)
|
|
-
|
|
|
(4.5
|
)
|
|
(3.2
|
)
|
|
0.6
|
|
|
(2.6
|
)
|
AGRE U.S. Real Estate Fund, L.P.
|
7.2
|
|
|
1.3
|
|
|
-
|
|
|
1.3
|
|
|
1.6
|
|
|
2.7
|
|
|
4.3
|
|
Other
|
2.8
|
|
|
(0.4
|
)
|
|
-
|
|
|
(0.4
|
)
|
|
(1.4
|
)
|
|
0.7
|
|
|
(0.7
|
)
|
Total Real Estate Funds
|
12.2
|
|
|
(3.6
|
)
|
|
-
|
|
|
(3.6
|
)
|
|
(3.0
|
)
|
|
4.0
|
|
|
1.0
|
|
Total
|
$
|
1,481.9
|
|
(3)
|
$
|
(560.3
|
)
|
|
$
|
490.3
|
|
|
$
|
(70.0
|
)
|
|
$
|
(824.4
|
)
|
|
$
|
1,194.7
|
|
|
$
|
370.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes certain strategic investment accounts. (2) Includes
$121.4 million of carried interest receivable from AAA Investments which
will be paid in common shares of Athene Holding Ltd. (valued at the then
fair market value) if there is a distribution in kind of shares of
Athene Holding Ltd. (unless such payment in shares would violate Section
16(b) of the U.S. Securities Exchange Act of 1934, as amended), or paid
in cash if AAA sells the shares of Athene Holding Ltd. (3) There
was a corresponding profit sharing payable of $755.3 million as of
September 30, 2014 that resulted in a net carried interest receivable on
an unconsolidated basis of $726.6 million as of September 30, 2014.
Included within profit sharing payable are contingent consideration
obligations of $96.9 million.
APOLLO GLOBAL MANAGEMENT, LLC SUPPLEMENTAL SHARE
INFORMATION (UNAUDITED)
The table below presents Non-GAAP weighted average diluted shares
outstanding for the three and nine months ended September 30, 2014 and
2013:
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Total GAAP Weighted Average Outstanding Class A Shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
158,466,602
|
|
|
142,829,913
|
|
|
153,071,007
|
|
|
137,165,119
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
AOG units
|
|
222,736,477
|
|
|
231,230,636
|
|
|
225,782,718
|
|
|
235,535,012
|
Vested RSUs(1)
|
|
19,410,438
|
|
|
20,728,513
|
|
|
20,639,048
|
|
|
20,838,687
|
Non-GAAP Weighted Average Diluted Shares Outstanding
|
|
400,613,517
|
|
|
394,789,062
|
|
|
399,492,773
|
|
|
393,538,818
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Vested RSUs presented have not yet been issued in the form of
Class A shares. As a result, the amount of vested RSUs indicated has
been excluded from the outstanding Class A share basic and diluted
amounts.
The table below presents Non-GAAP diluted shares outstanding as of
September 30, 2014 and 2013:
|
|
|
|
|
As of September 30,
|
|
|
2014
|
|
2013
|
Total GAAP Outstanding Class A Shares:
|
|
|
|
|
|
Basic
|
|
159,956,660
|
|
|
143,700,234
|
Non-GAAP Adjustments:
|
|
|
|
|
|
AOG units
|
|
222,736,477
|
|
|
231,230,636
|
Vested RSUs(1)
|
|
18,374,602
|
|
|
20,290,037
|
Non-GAAP Diluted Shares Outstanding
|
|
401,067,739
|
|
|
395,220,907
|
|
|
|
|
|
|
(1) Vested RSUs presented have not yet been issued in the form of
Class A shares. As a result, the amount of vested RSUs indicated has
been excluded from the outstanding Class A share basic and diluted
amounts.
Note: In addition to fully diluted shares outstanding above, there were
approximately 4.2 million and 4.0 million unvested RSUs that participate
in distributions as of September 30, 2014 and 2013, respectively.
APOLLO GLOBAL MANAGEMENT, LLC NON-GAAP FINANCIAL
INFORMATION AND DEFINITIONS (UNAUDITED)
Non-GAAP Financial Information
Apollo discloses the following financial measures that are calculated
and presented on the basis of methodologies other than in accordance
with generally accepted accounting principles in the United States of
America ("Non-GAAP"):
-
Economic Net Income, or ENI, as well as ENI After
Taxes are key performance measures used by management in
evaluating the performance of Apollo's private equity, credit and real
estate segments. Management also believes the components of ENI such
as the amount of management fees, advisory and transaction fees and
carried interest income are indicative of Apollo's performance.
Management uses these performance measures in making key operating
decisions such as the following:
-
Decisions related to the allocation of resources such as staffing
decisions including hiring and locations for deployment of the new
hires;
-
Decisions related to capital deployment such as providing capital
to facilitate growth for the business and/or to facilitate
expansion into new businesses; and
-
Decisions related to expenses, such as determining annual
discretionary bonuses and equity-based compensation awards to its
employees. With respect to compensation, management seeks to align
the interests of certain professionals and selected other
individuals with those of the investors in the funds and those of
Apollo's shareholders by providing such individuals a profit
sharing interest in the carried interest income earned in relation
to the funds. To achieve that objective, a certain amount of
compensation is based on Apollo's performance and growth for the
year.
These measures of profitability have certain limitations in that they do
not take into account certain items included under U.S. GAAP. ENI
represents segment income (loss) attributable to Apollo Global
Management, LLC, which excludes the impact of (i) non-cash charges
related to RSUs granted in connection with the 2007 private placement
and amortization of AOG units, (ii) income tax expense, (iii)
amortization of intangibles associated with the 2007 reorganization as
well as acquisitions, (iv) Non-Controlling Interests excluding the
remaining interest held by certain individuals who receive an allocation
of income from certain of our credit management companies and (v)
non-cash revenue and expense related to equity awards granted by
unconsolidated affiliates to employees of the Company. In addition,
segment data excludes the assets, liabilities and operating results of
the funds and VIEs that are included in the consolidated financial
statements.
-
ENI After Taxes represents ENI adjusted to reflect income tax
provision on ENI that has been calculated assuming that all income is
allocated to Apollo Global Management, LLC, which would occur
following an exchange of all AOG units for Class A shares of Apollo
Global Management, LLC. Economic assumptions and methodology that
impact the implied income tax provision are made and is similar to
those methodologies and certain assumptions used in calculating the
income tax provision for Apollo's consolidated statements of
operations under U.S. GAAP. We believe this measure is more consistent
with how we assess the performance of our segments which is described
above in our definition of ENI.
-
Non-GAAP Weighted Average Diluted Shares Outstanding is
calculated using the GAAP Weighted Average Outstanding Class A Shares
plus Non-GAAP adjustments assuming (i) the exchange of all of the AOG
units for Class A shares and (ii) the settlement of the weighted
average vested RSUs in the form of Class A shares during the period.
Management uses this measure in determining ENI After Taxes per share.
-
Non-GAAP Diluted Shares Outstanding is calculated using the
GAAP Outstanding Class A Shares plus Non-GAAP adjustments assuming
(i) the exchange of all of the AOG units for Class A shares and
(ii) the settlement of the vested RSUs in the form of Class A shares
during the period. Management uses this measure, taking into account
the unvested RSUs that participate in distributions, in determining
our Class A shares eligible for cash distributions.
-
Distributable Earnings, or DE, as well as DE After
Taxes and Related Payables are derived from our segment reported
results, and are supplemental measures to assess performance and
amounts available for distribution to Class A shareholders, holders of
RSUs that participate in distributions and holders of AOG units. DE
represents the amount of net realized earnings without the effects of
the consolidation of any of the affiliated funds. DE, which is a
component of ENI, is the sum across all segments of (i) total
management fees and advisory and transaction fees, excluding
monitoring fees received from Athene based on its capital and surplus
(as defined in Apollo's transaction advisory services agreement with
Athene), (ii) realized carried interest income, and (iii) realized
investment income, less (i) compensation expense, excluding the
expense related to equity-based awards, (ii) realized profit sharing
expense, and (iii) non-compensation expenses, excluding depreciation
and amortization expense. DE after taxes and related payables
represents DE less estimated current corporate, local and non-U.S.
taxes as well as the payable under Apollo's tax receivable agreement.
-
Assets Under Management, or AUM, refers to the assets we
manage for the funds, partnerships and accounts to which we provide
investment management services, including, without limitation, capital
that such funds, partnerships and accounts have the right to call from
investors pursuant to capital commitments. Our AUM equals the sum of:
(i) the fair value of the investments of the private equity funds,
partnerships and accounts we manage plus the capital that such funds,
partnerships and accounts are entitled to call from investors pursuant
to capital commitments;
(ii) the net asset value, or "NAV," of the credit funds, partnerships
and accounts for which we provide investment management services, other
than certain collateralized loan obligations ("CLOs") and collateralized
debt obligations ("CDOs"), which have a fee generating basis other than
the mark-to-market value of the underlying assets, plus used or
available leverage and/or capital commitments;
(iii) the gross asset value or net asset value of the real estate funds,
partnerships and accounts we manage, and the structured portfolio
company investments of the funds, partnerships and accounts we manage,
which includes the leverage used by such structured portfolio company
investments;
(iv) the incremental value associated with the reinsurance investments
of the portfolio company assets we manage; and
(v) the fair value of any other assets that we manage for the funds,
partnerships and accounts to which we provide investment management
services, plus unused credit facilities, including capital commitments
to such funds, partnerships and accounts for investments that may
require pre-qualification before investment plus any other capital
commitments to such funds, partnerships and accounts available for
investment that are not otherwise included in the clauses above.
Our AUM measure includes Assets Under Management for which we charge
either no or nominal fees. Our definition of AUM is not based on any
definition of Assets Under Management contained in our operating
agreement or in any of our Apollo fund management agreements. We
consider multiple factors for determining what should be included in our
definition of AUM. Such factors include but are not limited to (1) our
ability to influence the investment decisions for existing and available
assets; (2) our ability to generate income from the underlying assets in
our funds; and (3) the AUM measures that we use internally or believe
are used by other investment managers. Given the differences in the
investment strategies and structures among other alternative investment
managers, our calculation of AUM may differ from the calculations
employed by other investment managers and, as a result, this measure may
not be directly comparable to similar measures presented by other
investment managers.
We use AUM as a performance measurement of our investment activities, as
well as to monitor fund size in relation to professional resource and
infrastructure needs.
-
Fee-generating AUM consists of assets we manage for the funds,
partnerships and accounts to which we provide investment management
services and on which we earn management fees, monitoring fees
pursuant to management or other fee agreements on a basis that varies
among the Apollo funds, partnerships and accounts we manage.
Management fees are normally based on "net asset value," "gross
assets," "adjusted par asset value," "adjusted cost of all unrealized
portfolio investments," "capital commitments," "adjusted assets,"
"stockholders' equity," "invested capital" or "capital contributions,"
each as defined in the applicable management agreement. Monitoring
fees, also referred to as advisory fees, with respect to the
structured portfolio company investments of the funds, partnerships
and accounts we manage, are generally based on the total value of such
structured portfolio company investments, which normally includes
leverage, less any portion of such total value that is already
considered in fee-generating AUM.
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Non-fee generating AUM consists of assets that do not produce
management fees or monitoring fees. These assets generally consist of
the following:
(i) fair value above invested capital for those funds that earn
management fees based on invested capital;
(ii) net asset values related to general partner and co-investment
ownership;
(iii) unused credit facilities;
(iv) available commitments on those funds that generate management fees
on invested capital;
(v) structured portfolio company investments that do not generate
monitoring fees; and
(vi) the difference between gross asset and net asset value for those
funds that earn management fees based on net asset value.
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Carry Eligible AUM refers to the AUM that may eventually
produce carried interest income. All funds for which we are entitled
to receive a carried interest income allocation are included in Carry
Eligible AUM, which consists of the following:
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Carry Generating AUM refers to funds' invested capital that
is currently above its hurdle rate or preferred return, and the
funds' profit is allocated to the general partner in accordance
with the applicable limited partnership agreements or other
governing agreements.
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AUM Not Currently Generating Carry refers to funds'
invested capital that is currently below its hurdle rate or
preferred return.
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Uninvested Carry Eligible AUM refers to available capital
for investment or reinvestment subject to the provisions of
applicable limited partnership agreements or other governing
agreements that are not currently part of the NAV or fair value of
investments that may eventually produce carried interest income,
which would be allocated to the general partner.
We use non-fee generating AUM combined with fee-generating AUM as a
performance measurement of our investment activities, as well as to
monitor fund size in relation to professional resource and
infrastructure needs. Non-fee generating AUM includes assets on which we
could earn carried interest income.
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Dollars invested is the aggregate amount of capital, including
capital commitments from the limited partner investors in our funds,
that have been invested by our multi-year drawdown, commitment-based
funds and SIAs that have a defined maturity date and for funds and
SIAs in our real estate debt strategy during a given period, which we
believe is a useful supplemental measure because it provides
shareholders with information about the capital deployed for
investment opportunities in a given period.
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Uncalled commitments represents unfunded capital commitments
that certain of Apollo's funds and SIAs have received from limited
partners to fund future or current investments and expenses, which we
believe is a useful supplemental measure because it provides
shareholders with information about the unfunded capital commitments
available to be deployed for future or current investments and
expenses for our private equity funds.
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"Gross IRR" of a private equity fund represents the cumulative
investment-related cash flows for all of the investors in the fund on
the basis of the actual timing of investment inflows and outflows (for
unrealized investments assuming disposition on September 30, 2014 or
other date specified) aggregated on a gross basis quarterly, and the
return is annualized and compounded before management fees, carried
interest and certain other fund expenses (including interest incurred
by the fund itself) and measures the returns on the fund's investments
as a whole without regard to whether all of the returns would, if
distributed, be payable to the fund's investors.
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"Net IRR" of a private equity fund means the gross IRR
applicable to all investors, including related parties which may not
pay fees, net of management fees, organizational expenses, transaction
costs, and certain other fund expenses (including interest incurred by
the fund itself). The realized and the estimated unrealized value is
adjusted such that a percentage of up to 20.0% of the unrealized gain
is allocated to the general partner, thereby reducing the balance
attributable to fund investors carried interest all offset to the
extent of interest income, and measures returns based on amounts that,
if distributed, would be paid to investors of the fund to the extent
that a private equity fund exceeds all requirements detailed within
the applicable fund agreement.
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