Record fee earnings, deals drive Apollo's second quarter

Brian Sozzi
·Anchor, Editor-at-Large
·2 min read

A strong quarter for dealmaking, retirement services and credit extension to middle market and large corporations helped power a better than expected quarter from Apollo Global Management (APO). 

Fee-related earnings of $300 million marked a record for the company, driven mostly by transactions in the company's credit business. The results represented a 16% year-over-year increase and 5% quarter-over-quarter improvement. 

On the private equity side of the business, management fees fell 4% year-over-year as Apollo said it saw realizations and distributions from its legacy funds.

Here is how Apollo Global Management performed compared to Wall Street analyst estimates for the second quarter. Estimates are compiled by Bloomberg analysts' consensus:

  • Total Revenue: $1.09 billion vs. $680 million

  • Adjusted Diluted EPS: $1.14 vs. $0.73

"Our second quarter results were very strong across all key performance metrics, headlined by record fee related earnings and the highest quarterly distributable earnings we have generated since 2013. Our teams remain extremely active in sourcing attractive investment opportunities for our clients, with record total capital deployment of $28 billion across our yield-centric origination platforms and our opportunistic businesses. Importantly, we are making meaningful progress on our strategy of positioning the firm for continued strong growth by building out our front-end asset origination platforms, expanding our global base of talent, and investing in leading technology to drive greater efficiency. All of this is being done to support the abundant growth opportunity in front of us and continue delivering compelling returns to all our stakeholders — now, and in the future," said Apollo Global Management CEO Marc Rowan in a statement.

The company called out that it has $47.6 billion in cash available for investment. Some of that is being put to use this week. Apollo announced a $7.5 billion deal for a large chunk of assets from telecom Lumen Technologies. 

Shares of Apollo Global Management are up 24% year-to-date, outperforming the S&P 500's 17% gain. 

Disclosure: Apollo Global Management is in the process of acquiring Verizon Media, the parent company of Yahoo Finance.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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