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Introduction & Market Context
Apollo Global Management (NYSE:APO) reported its fourth quarter and full year 2024 results on February 4, 2025, showcasing record financial performance across multiple metrics. The alternative asset manager has continued its growth trajectory, with assets under management surpassing $750 billion, representing a 15% increase year-over-year.
The company’s diversified business model, spanning asset management and retirement services, has enabled it to capitalize on market opportunities despite varying economic conditions. Apollo’s strong performance comes as the firm continues to expand its origination capabilities and deploy capital across credit, equity, and retirement services segments.
Quarterly Performance Highlights
Apollo delivered impressive financial results for the fourth quarter of 2024, with GAAP net income attributable to common stockholders reaching $1,462 million ($2.42 per share) and adjusted net income of $1,360 million ($2.22 per share).
The company reported record quarterly fee-related earnings (FRE) of $554 million ($0.90 per share), while spread-related earnings (SRE) came in at $841 million ($1.37 per share). These results underscore Apollo’s ability to generate consistent income across its business segments.
As shown in the following financial highlights table, Apollo demonstrated strong performance across key metrics for both the quarter and full year:
CEO Marc Rowan highlighted the firm’s achievements, noting: "Apollo delivered strong performance in 2024, including $220 billion in origination activity, $150 billion in inflows, and surpassing $750 billion assets under management."
Asset Management Performance
Apollo’s asset management segment continued to demonstrate robust growth, with total assets under management reaching $751 billion by the end of 2024. The firm’s fee-generating AUM grew to $569 billion, providing a stable base for recurring management fees.
The following chart illustrates Apollo’s AUM growth across its credit and equity platforms over the past two years:
Inflows remained strong throughout 2024, with the company attracting $33 billion in the fourth quarter alone and $152 billion for the full year. This consistent ability to attract capital reflects investor confidence in Apollo’s investment strategies and performance.
The chart below shows the steady growth in inflows across Apollo’s asset management and retirement services segments:
Apollo’s origination capabilities continue to be a key differentiator, with $61 billion originated in the fourth quarter and $222 billion for the full year. This robust origination pipeline provides the firm with a steady stream of investment opportunities across its various strategies.
Retirement Services Growth
Apollo’s retirement services segment, primarily through its Athene subsidiary, demonstrated strong performance with spread-related earnings of $841 million for Q4 2024 and $3,224 million for the full year. The segment continues to benefit from Apollo’s asset origination capabilities and investment expertise.
The following chart highlights the key metrics for Athene’s portfolio and spread management:
A notable strength of Athene’s investment approach is that 97% of its fixed income portfolio is invested in investment-grade assets, demonstrating a prudent risk management approach while still generating attractive returns. Apollo Asset Management aims to generate 30-40 basis points of asset outperformance across Athene’s portfolio.
The retirement services business has shown impressive growth over time, as illustrated in the following chart showing the expansion of gross organic inflows and spread-related earnings:
Capital Allocation Strategy
Apollo has maintained a balanced approach to capital allocation, focusing on shareholder returns while investing in future growth. In 2024, the company repurchased more than $1.2 billion of common stock, including $501 million of opportunistic share repurchases.
The firm also distributed more than $1 billion in common stock dividends during 2024 and announced plans to increase the annual dividend amount by 10%. For Q4 2024, Apollo declared a dividend of $0.4625 per share of common stock, payable on February 28, 2025.
Additionally, Apollo allocated $130 million of strategic capital to fund various investments supporting future growth initiatives. This balanced approach to capital allocation demonstrates the firm’s commitment to both immediate shareholder returns and long-term value creation.
Forward-Looking Statements
Looking ahead, Apollo is well-positioned to continue its growth trajectory with $61 billion in dry powder available for deployment across credit and equity strategies. The firm’s performance fee-eligible AUM stands at $223 billion, providing potential for additional earnings as investments mature.
Apollo’s financial strength is further reinforced by strong ratings from major credit agencies, including an A+ rating from S&P Global and an A1 rating from Moody’s.
The company’s continued focus on origination capabilities, strategic capital allocation, and diversified business model should provide resilience against market fluctuations while positioning the firm for sustained growth in assets under management and earnings.
As Apollo moves into 2025, investors will be watching for continued execution on the firm’s strategic initiatives and its ability to maintain strong performance across its asset management and retirement services segments in an evolving market environment.
Full presentation:
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