Apollo Global Management's Wealth Management Business Drives Record Growth
Apollo Global Management Inc. has achieved significant success in its wealth management operations, contributing to a record year of capital inflows and a 50% increase in assets under management from this sector.
The firm, led by CEO Marc Rowan, is among the alternative asset managers targeting the growing population of affluent clients who are eligible for sophisticated products with higher fee structures. In 2023, Apollo raised $12 billion in capital globally through its wealth management division, moving closer to its goal of $150 billion by 2029.
Apollo's net income adjusted for non-operating items grew 15% year-over-year in Q4 to $1.36 billion, translating to $2.22 per share and surpassing analyst expectations of $1.89 per share.
Wealthy clients played a significant role in the growth of Apollo's credit products, contributing to a $100 billion increase in assets under management in this area alone. Q4 witnessed a 23% year-over-year surge in credit management fees and a 1.6% increase in equity fees.
Apollo foresees the convergence of public and private markets as well as the evolving role of financial institutions as key trends in the industry over the next five years. The firm is positioning itself to lead this transition.
The hybrid value strategy, which combines credit and equity investing, was a major contributor to Apollo's strong returns with a 6.4% appreciation in the quarter. The firm's direct origination platform reported gross returns of 2.4%.
Apollo's capital solutions business attained record revenues, driven by recent strategic expansions and notable jumbo deals such as those with Vonovia SE and Air France-KLM. Fees from these products climbed 24% in 2024, stemming from over 100 transactions involving debt and equity.
By 2029, Apollo aims to expand its managed assets to approximately $1.5 trillion through its private equity and direct lending businesses, which currently stand at $562 billion.
CEO Rowan's contract was extended for five years, and two senior executives received promotions. John Zito, head of credit, assumed the role of co-president of Apollo's asset management business alongside Scott Kleinman.