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Investing.com - Keefe, Bruyette & Woods has reiterated an Outperform rating for Apollo Global Management (NYSE:APO) with a price target of $151.00.
The reiteration comes as Apollo’s subsidiary Athora is reportedly in talks to acquire Pension Insurance Corporation (PIC), according to a Friday report from Sky News. The potential deal could be valued between £4 billion and £5 billion (approximately $5.5 billion to $6.5 billion).
PIC, a leading UK pension risk-transfer provider, currently manages £51 billion ($68 billion) in invested assets. The acquisition would significantly expand Athora’s presence in the UK pension market.
Keefe, Bruyette & Woods estimates that if Apollo manages between $50 billion and $68 billion of assets under management at a fee rate of 20-25 basis points with 60% margins, this could generate $60 million to $100 million of incremental fee-related earnings.
The firm calculates this acquisition could potentially add $0.08 to $0.14 of incremental adjusted net income per share, representing a 0.9% to 1.5% increase for Apollo Global Management.
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