Apollo Global Management, LLC Reports Second Quarter 2012 Results
- Total assets under management (“AUM”) of $105 billion as of June 30, 2012, a 46% increase compared to AUM of $72 billion as of June 30, 2011
- Total management business revenues of $236 million for the second quarter ended June 30, 2012, compared to $156 million for the same period in 2011
- Total economic net income (“ENI”) of $42 million for the second quarter ended June 30, 2012, compared to $125 million for the same period in 2011
- ENI After Taxes per Share of $0.05 for the second quarter ended June 30, 2012, compared to $0.31 per share for the same period in 2011
- U.S. GAAP net loss attributable to Apollo Global Management, LLC of $41 million for the second quarter ended June 30, 2012, compared to a $51 million loss for the same period in 2011
- Apollo declares a distribution of $0.24 per Class A share for the second quarter of 2012
NEW YORK--(BUSINESS WIRE)-- Apollo Global Management, LLC (NYSE: APO) and its consolidated subsidiaries (collectively, “Apollo”) today reported results for the second quarter ended June 30, 2012.
Apollo reported ENI of $42.0 million for the second quarter of 2012, compared to $125.3 million for the second quarter of 2011. The 66% decrease in ENI was primarily driven by Apollo’s Incentive Business, which reported an economic net loss of $28.4 million for the second quarter of 2012, compared to economic net income of $94.8 million for the same period in 2011. The quarter over quarter change in economic net income for the Incentive Business was largely the result of lower carried interest income from our private equity segment during the second quarter of 2012 compared to the same period in 2011. Partially offsetting this decline was the improved performance of Apollo’s Management Business, which reported economic net income of $70.4 million for the second quarter of 2012, compared to $30.5 million for the same period in 2011.
Total AUM was $104.9 billion as of June 30, 2012, compared to $71.7 billion as of June 30, 2011, an increase of $33.2 billion or 46%. The increase in total AUM was primarily driven by growth in Apollo’s capital markets segment, which more than doubled to $56.1 billion of AUM as of June 30, 2012, compared to $23.7 billion as of June 30, 2011. Fee-generating AUM was $77.4 billion as of June 30, 2012, compared to $48.9 billion as of June 30, 2011, an increase of $28.5 billion, or 58%, which was also primarily driven by growth in Apollo’s capital markets segment.
U.S. GAAP results for the quarter ended June 30, 2012 included a net loss attributable to Apollo Global Management, LLC of $41.4 million, compared to a $51.0 million loss for the quarter ended June 30, 2011.
Leon Black, Chairman and Chief Executive Officer said, “We reported solid financial results for the second quarter despite a challenging global market environment. Our results again demonstrated the growth inherent in Apollo’s business model as we actively raised and deployed capital around the world, and our diversified investment platform continued to generate cash distributions for our shareholders.”
Combined Segments
Total revenue for Apollo’s Management Business was $235.6 million during the second quarter of 2012, an increase of $79.6 million, or 51%, from the second quarter of 2011. This includes management fee revenues of $156.4 million for the second quarter of 2012, which increased $35.2 million, or 29%, from the second quarter of 2011, and advisory and transaction fee revenue of $70.0 million for the second quarter of 2012, which increased $46.4 million, or 197%, from the second quarter of 2011. The significant increase in advisory and transaction fee revenue during the second quarter of 2012 was primarily driven by net transaction fees earned in connection with the acquisition of EP Energy, a leading North American oil and gas producer, which was acquired by investment funds affiliated with Apollo along with Riverstone Holdings LLC, Access Industries, Inc., Korea National Oil Corporation and other investors.
Apollo’s Incentive Business reported $3.2 million of total carried interest income during the second quarter of 2012, compared to $152.9 million during the second quarter of 2011. These amounts include $56.0 million of realized gains from carried interest income for the second quarter of 2012, compared to $178.7 million for the second quarter of 2011, which was primarily driven by the sale of Hughes Communications Inc., a portfolio company investment in Fund IV that was sold during the second quarter of 2011. The decrease in total carried interest income was also impacted by lower unrealized investment appreciation in Apollo’s private equity funds during the second quarter of 2012 compared to the second quarter of 2011.
Total expenses for Apollo’s Management Business were $158.3 million during the second quarter of 2012, compared to $137.6 million during the second quarter of 2011. Total salary, bonus and benefits expense for Apollo’s Management Business was $74.9 million during the second quarter of 2012, an increase of $10.6 million, or 16%, from the second quarter of 2011. Non-compensation expenses for Apollo’s Management Business were $69.3 million during the second quarter of 2012, an increase of $13.0 million, or 23%, from the second quarter of 2011. The increase in non-compensation expense during the second quarter of 2012 was largely driven by $8.1 million of placement fees incurred in connection with recent fundraising activities, as well as $2.8 million of Stone Tower acquisition costs that are not expected to recur.
Private Equity Segment
ENI from Apollo’s private equity segment was $55.8 million for the second quarter of 2012, a $56.5 million or 50% decrease compared to $112.3 million for the second quarter of 2011. Management Business revenues for the private equity segment were $134.3 million for the second quarter of 2012, compared to $87.0 million for the second quarter of 2011. The $47.3 million increase was primarily driven by higher advisory and transaction fees from the EP Energy acquisition previously mentioned. Management Business expenses for the private equity segment were $69.1 million for the second quarter of 2012, compared to $61.9 million for the second quarter of 2011.
Apollo’s private equity segment reported $5.7 million of total carried interest income for the second quarter of 2012, compared to $139.0 million for the same period in 2011. Profit sharing expense was $13.8 million for the second quarter of 2012, compared to $60.0 million for the same period in 2011. Income from equity method investments was $1.9 million for the second quarter of 2012, compared to $4.5 million for the same period in 2011.
Apollo’s private equity fund performance, as measured by IRR, was down slightly during the second quarter of 2012. From its inception in 2008 through June 30, 2012, Fund VII generated an annual gross and net IRR of 33% and 23%, respectively. Fund VI, which began investing in 2006 during the peak of the credit and housing market boom, generated an annual gross and net IRR of 9% and 8%, respectively, since its inception through June 30, 2012. The combined fair value of Apollo’s private equity funds was 46% above cost as of June 30, 2012 and appreciated by 1% during the second quarter of 2012.
Apollo continued to identify compelling investment opportunities during the quarter, led by the previously mentioned acquisition of EP Energy for approximately $7.1 billion including debt. Private equity capital invested during the second quarter of 2012 was $1.7 billion, and uncalled private equity commitments, or “dry powder”, was $6.6 billion as of June 30, 2012.
Capital Markets Segment
Apollo’s capital markets segment had an economic net loss of $14.4 million for the second quarter of 2012, compared to economic net income of $10.5 million for the second quarter of 2011. There was a carried interest loss of $6.7 million for the second quarter of 2012, compared to $13.9 million of carried interest income for the second quarter of 2011. Management fees within the capital markets segment were $74.3 million for the second quarter of 2012, an increase of $28.2 million, or 61%, from the second quarter of 2011. The increase in management fees was largely driven by the previously announced acquisitions of Stone Tower Capital LLC and its related management companies (collectively “Stone Tower”) and Gulf Stream Asset Management LLC.
On April 2, 2012, Apollo closed the acquisition of Stone Tower, a leading alternative credit manager. The Stone Tower transaction bolsters Apollo’s position as one of the world’s largest and most diverse credit managers by adding significant scale and several new credit product capabilities. As of June 30, 2012, the funds previously managed by Stone Tower had approximately $17.8 billion of AUM as of June 30, 2012, which includes $4.5 billion of AUM with a contractual life of 12 to 18 months.
Real Estate Segment
Apollo’s real estate segment had ENI of $0.6 million for the second quarter of 2012, compared to $2.5 million for the second quarter of 2011. The decline in ENI in the second quarter of 2012 compared to the second quarter of 2011 was primarily driven by a one-time, non-recurring $8.0 million gain during the second quarter of 2011 for the reimbursement of previously incurred offering costs related to the launch of Apollo Commercial Real Estate Finance, Inc. Total revenues for the real estate segment during the second quarter of 2012 were $17.7 million, an increase of $8.0 million or 82% compared to $9.7 million for the same period in 2011. The increase in revenues during the second quarter of 2012 was largely due to a $4.2 million increase in total carried interest income, including $2.6 million of realized gains. As of June 30, 2012, Apollo’s real estate AUM was $7.9 billion, compared to $7.6 billion at June 30, 2011.
Capital and Liquidity
As of June 30, 2012, Apollo had $619.9 million of cash and cash equivalents and $738.1 million of debt. These amounts exclude cash and debt associated with Apollo’s consolidated funds and consolidated variable interest entities. As of June 30, 2012, Apollo had a $1,303 million carried interest receivable and corresponding profit sharing payable of $665.9 million as well as total investments in its private equity, capital markets and real estate funds of $446.0 million, excluding consolidated VIEs and consolidated funds.
Distribution
Apollo Global Management, LLC has declared a second quarter 2012 cash distribution of $0.24 per Class A share, which comprises a regular distribution of $0.07 per Class A share and a quarterly distribution of $0.17 per Class A share primarily attributable to fund realizations, net transaction fees, and interest and dividend income earned by our funds. This distribution will be paid on August 31, 2012 to holders of record at the close of business on August 27, 2012.
Apollo intends to distribute to its shareholders on a quarterly basis substantially all of its net after-tax cash flow in excess of amounts determined by its manager to be necessary or appropriate to provide for the conduct of its business. However, we cannot assure shareholders that they will receive any distributions.
Conference Call
Apollo will host a conference call on August 2, 2012 at 11:00 am EDT. During the call Marc Spilker, President, Gene Donnelly, Chief Financial Officer, and Gary Stein, Head of Corporate Communications, will review Apollo's financial results. The conference call can be accessed by dialing (888) 868-4188 (U.S. domestic) or +1 (615) 800-6914 (international), and by providing conference call ID 98654082 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 can 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 98654082. 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, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of approximately $105 billion as of June 30, 2012, in private equity, credit-oriented capital markets 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
This press release may contain forward looking statements that are within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 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, capital markets 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 the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 9, 2012, and 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 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 release does not constitute an offer of any Apollo fund.
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APOLLO GLOBAL MANAGEMENT, LLC |
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Three Months Ended |
Six Months Ended June 30, |
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| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues: | ||||||||||||||||
| Advisory and transaction fees from affiliates | $ | 69,777 | $ | 23,556 | $ | 97,013 | $ | 42,972 | ||||||||
| Management fees from affiliates | 143,326 | 121,187 | 270,504 | 239,337 | ||||||||||||
| Carried interest (loss) income from affiliates | (1,475 | ) | 164,133 | 620,854 | 722,909 | |||||||||||
| Total Revenues | 211,628 | 308,876 | 988,371 | 1,005,218 | ||||||||||||
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Expenses: |
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| Compensation and benefits: | ||||||||||||||||
| Equity-based compensation | 142,114 | 287,358 | 290,980 | 570,965 | ||||||||||||
| Salary, bonus and benefits | 74,948 | 64,286 | 140,019 | 136,355 | ||||||||||||
| Profit sharing expense | 19,851 | 70,733 | 268,875 | 287,818 | ||||||||||||
| Incentive fee compensation | (27 | ) | (3,594 | ) | 8 | 6,565 | ||||||||||
| Total Compensation and benefits | 236,886 | 418,783 | 699,882 | 1,001,703 | ||||||||||||
| Interest expense | 10,567 | 10,327 | 21,947 | 21,209 | ||||||||||||
| Professional fees | 16,832 | 12,992 | 28,359 | 30,353 | ||||||||||||
| General, administrative and other | 23,575 | 22,502 | 42,782 | 39,109 | ||||||||||||
| Placement fees | 8,131 | 575 | 9,052 | 1,114 | ||||||||||||
| Occupancy | 8,990 | 7,925 | 17,716 | 15,151 | ||||||||||||
| Depreciation and amortization | 11,981 | 6,902 | 20,454 | 12,948 | ||||||||||||
| Total Expenses | 316,962 | 480,006 | 840,192 | 1,121,587 | ||||||||||||
| Other Income: | ||||||||||||||||
| Net (losses) gains from investment activities | (28,214 | ) | 63,311 | 129,494 | 221,240 | |||||||||||
| Net gains (losses) from investment activities of consolidated variable interest entities | 31,763 | (12,369 | ) | 15,562 | 4,719 | |||||||||||
| (Loss) income from equity method investments | (839 | ) | 5,370 | 42,412 | 27,196 | |||||||||||
| Interest and dividend income | 2,202 | 612 | 3,816 | 870 | ||||||||||||
| Other income, net |
1,793,299 |
13,111 |
1,799,115 |
21,174 | ||||||||||||
| Total Other Income |
1,798,211 |
70,035 |
1,990,399 |
275,199 | ||||||||||||
| Income (loss) before income tax provision |
1,692,877 |
(101,095 | ) |
2,138,578 |
158,830 | |||||||||||
| Income tax provision | (10,650 | ) | (3,550 | ) | (25,210 | ) | (12,370 | ) | ||||||||
| Net Income (Loss) |
1,682,227 |
(104,645 | ) |
2,113,368 |
146,460 | |||||||||||
| Net (income) loss attributable to Non-Controlling Interests |
(1,723,613 |
) | 53,656 |
(2,056,711 |
) | (159,293 | ) | |||||||||
| Net (Loss) Income Attributable to Apollo Global Management, LLC | $ | (41,386 | ) | $ | (50,989 | ) | $ | 56,657 | $ | (12,833 | ) | |||||
| Dividends Declared per Class A Share | $ | 0.25 | $ | 0.22 | $ | 0.71 | $ | 0.39 | ||||||||
| Net (Loss) Income Per Class A Share: | ||||||||||||||||
| Net (Loss) Income Per Class A Share – Basic and Diluted | $ | (0.38 | ) | $ | (0.46 | ) | $ | 0.32 | $ | (0.19 | ) | |||||
| Weighted Average Number of Class A Shares – Basic | 126,457,443 | 120,963,248 | 125,863,348 | 109,652,330 | ||||||||||||
| Weighted Average Number of Class A Shares – Diluted | 126,457,443 | 120,963,248 |
126,260,767 |
109,652,330 | ||||||||||||
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APOLLO GLOBAL MANAGEMENT, LLC |
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Summary of Combined Segment Results for Management Business and Incentive Business: |
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Three Months Ended |
Six Months Ended | |||||||||||||||||||||||||||||||
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March 31, 2011 |
June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | June 30, 2011 | June 30, 2012 | |||||||||||||||||||||||||
| Management Business: |
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| Advisory and transaction fees from affiliates | $ | 19.4 | $ | 23.6 | $ | 17.2 | $ | 22.1 | $ | 27.3 | $ | 70.0 | $ | 43.0 | $ | 97.3 | ||||||||||||||||
| Management fees from affiliates | 118.2 | 121.2 | 123.0 | 127.8 | 130.0 | 156.4 | 239.4 | 286.4 | ||||||||||||||||||||||||
| Carried interest income from affiliates: | ||||||||||||||||||||||||||||||||
| Realized gains | 12.5 | 11.2 | 11.3 | 9.5 | 9.6 | 9.2 | 23.7 | 18.8 | ||||||||||||||||||||||||
| Total management business revenues | 150.1 | 156.0 | 151.5 | 159.4 | 166.9 | 235.6 | 306.1 | 402.5 | ||||||||||||||||||||||||
| Equity-based compensation(1) | 13.2 | 17.0 | 18.0 | 20.0 | 18.9 | 14.1 | 30.2 | 33.0 | ||||||||||||||||||||||||
| Salary, bonus and benefits | 72.1 | 64.3 | 68.4 | 46.3 | 65.1 | 74.9 | 136.4 | 140.0 | ||||||||||||||||||||||||
| Interest expense | 10.9 | 10.3 | 9.8 | 9.9 | 11.4 | 10.2 | 21.2 | 21.6 | ||||||||||||||||||||||||
| Professional fees | 17.1 | 12.8 | 6.8 | 21.6 | 11.3 | 16.5 | 29.9 | 27.8 | ||||||||||||||||||||||||
| General, administrative and other | 16.2 | 22.1 | 16.3 | 19.4 | 18.7 | 23.1 | 38.3 | 41.8 | ||||||||||||||||||||||||
| Placement fees | 0.5 | 0.6 | 2.0 | 0.8 | 0.9 | 8.1 | 1.1 | 9.0 | ||||||||||||||||||||||||
| Occupancy | 7.2 | 7.9 | 10.4 | 10.3 | 8.7 | 9.0 | 15.1 | 17.7 | ||||||||||||||||||||||||
| Depreciation and amortization(2) | 2.9 | 2.6 | 3.0 | 2.6 | 2.4 | 2.4 | 5.5 | 4.8 | ||||||||||||||||||||||||
| Total non-compensation expenses | 54.8 | 56.3 | 48.3 | 64.6 | 53.4 | 69.3 | 111.1 | 122.7 | ||||||||||||||||||||||||
| Total management business expenses | 140.1 | 137.6 | 134.7 | 130.9 | 137.4 | 158.3 | 277.7 | 295.7 | ||||||||||||||||||||||||
| Other income (loss) | 8.3 | 13.7 | (9.5 | ) | 2.3 | 7.0 | (4.5 | ) | 22.0 | 2.5 | ||||||||||||||||||||||
| Non-controlling interest(3) | (3.6 | ) | (1.6 | ) | (4.1 | ) | (2.8 | ) | (1.4 | ) | (2.4 | ) | (5.2 | ) | (3.8 | ) | ||||||||||||||||
| Management Business Economic Net Income | 14.7 | 30.5 | 3.2 | 28.0 | 35.1 | 70.4 | 45.2 | 105.5 | ||||||||||||||||||||||||
| Incentive Business: | ||||||||||||||||||||||||||||||||
| Carried interest income (loss): | ||||||||||||||||||||||||||||||||
| Unrealized gains (losses) | 411.4 | (25.8 | ) | (1,683.2 | ) | 211.0 | 474.3 | (52.8 | ) | 385.6 | 421.5 | |||||||||||||||||||||
| Realized gains | 134.8 | 178.7 | 52.9 | 278.2 | 149.8 | 56.0 | 313.5 | 205.8 | ||||||||||||||||||||||||
| Total carried interest income (loss) | 546.2 | 152.9 | (1,630.3 | ) | 489.2 | 624.1 | 3.2 | 699.1 | 627.3 | |||||||||||||||||||||||
| Profit sharing expense: | ||||||||||||||||||||||||||||||||
| Unrealized profit sharing expense | 167.6 | (9.6 | ) | (582.7 | ) | 54.1 | 178.4 | (10.8 | ) | 158.0 | 167.6 | |||||||||||||||||||||
| Realized profit sharing expense | 49.5 | 80.4 | 19.3 | 157.8 | 70.7 | 30.7 | 129.9 | 101.4 | ||||||||||||||||||||||||
| Total profit sharing expense | 217.1 | 70.8 | (563.4 | ) | 211.9 | 249.1 | 19.9 | 287.9 | 269.0 | |||||||||||||||||||||||
| Incentive fee compensation | 10.1 | (3.6 | ) | (3.8 | ) | 0.7 |
- |
- |
6.5 |
- |
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| Net gains (losses) from investment activities | 17.8 | 2.3 | (33.4 | ) | 7.4 | 3.4 | (13.1 | ) | 20.1 | (9.7 | ) | |||||||||||||||||||||
| Income (loss) from equity method investments | 25.1 | 6.8 | (65.7 | ) | 44.6 | 48.5 | 1.4 | 31.9 | 49.9 | |||||||||||||||||||||||
| Other income (loss) | 42.9 | 9.1 | (99.1 | ) | 52.0 | 51.9 | (11.7 | ) | 52.0 | 40.2 | ||||||||||||||||||||||
| Incentive Business Economic Net Income (Loss) | 361.9 | 94.8 | (1,162.2 | ) | 328.6 | 426.9 | (28.4 | ) | 456.7 | 398.5 | ||||||||||||||||||||||
| Total Economic Net Income (Loss) | 376.6 | 125.3 | (1,159.0 | ) | 356.6 | 462.0 | 42.0 | 501.9 | 504.0 | |||||||||||||||||||||||
| Income Tax (Provision) Benefit on Economic Net Income(4) | (25.2 | ) | (7.8 | ) | 66.5 | (54.6 | ) | (39.7 | ) | (23.3 | ) | (33.0 | ) | (63.0 | ) | |||||||||||||||||
| Total Economic Net Income (Loss) After Taxes | $ | 351.4 | $ | 117.5 | $ | (1,092.5 | ) | $ | 302.0 | $ | 422.3 | $ | 18.7 | $ | 468.9 | $ | 441.0 | |||||||||||||||
| Non-GAAP Weighted average diluted shares outstanding (in millions) | 353.6 | 376.0 | 378.0 | 379.3 | 383.6 | 386.0 | 364.8 | 384.8 | ||||||||||||||||||||||||
| Total ENI After Taxes per Share | $ | 0.99 | $ | 0.31 | $ | (2.89 | ) | $ | 0.80 | $ | 1.10 | $ | 0.05 | $ | 1.29 | $ | 1.15 | |||||||||||||||
| (1) | The combined amounts relate to 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 our capital markets management companies. |
| (4) | See the definition of ENI after taxes in the non-GAAP financial information and definitions section of this press release. |
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Private Equity Segment: |
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| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
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March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
March 31, 2012 |
June 30, 2012 |
June 30, 2011 |
June 30, 2012 |
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| Management Business: | |||||||||||||||||||||||||||||||
| Advisory and transaction fees from affiliates | $ | 15.1 | $ | 21.6 | $ | 14.8 | $ | 15.4 | $ |
25.9 |
|
$ | 65.1 | $ |
36.7 |
|
$ |
91.0 |
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| Management fees from affiliates | 65.5 | 65.4 | 65.3 | 67.0 | 67.0 | 69.2 | 130.9 | 136.2 | |||||||||||||||||||||||
| Total management business revenues | 80.6 | 87.0 | 80.1 | 82.4 | 92.9 | 134.3 | 167.6 | 227.2 | |||||||||||||||||||||||
| Equity-based compensation | 7.2 | 7.5 | 8.1 | 9.0 | 7.8 | 7.4 | 14.7 | 15.2 | |||||||||||||||||||||||
| Salary, bonus and benefits | 37.8 | 27.8 | 32.4 | 27.1 | 30.8 | 37.8 | 65.6 | 68.6 | |||||||||||||||||||||||
| Other expenses | 23.6 | 26.6 | 24.8 | 24.3 | 20.8 | 23.9 | 50.2 | 44.7 | |||||||||||||||||||||||
| Total management business expenses | 68.6 | 61.9 | 65.3 | 60.4 | 59.4 | 69.1 | 130.5 | 128.5 | |||||||||||||||||||||||
| Other income (loss) | 5.1 | 3.7 | (1.0 | ) | (0.7 | ) | 3.3 | (3.2 | ) | 8.8 | 0.1 | ||||||||||||||||||||
| Management Business Economic Net Income | 17.1 | 28.8 | 13.8 | 21.3 | 36.8 | 62.0 | 45.9 | 98.8 | |||||||||||||||||||||||
| Incentive Business: | |||||||||||||||||||||||||||||||
| Carried interest income (loss): | |||||||||||||||||||||||||||||||
| Unrealized gains (losses) | 323.1 | (32.4 | ) | (1,399.1 | ) | 88.7 | 326.0 | (37.7 | ) | 290.7 | 288.3 | ||||||||||||||||||||
| Realized gains | 118.6 | 171.4 | 40.5 | 240.0 | 122.1 | 43.4 | 290.0 | 165.5 | |||||||||||||||||||||||
| Total carried interest income (loss) | 441.7 | 139.0 | (1,358.6 | ) | 328.7 | 448.1 | 5.7 | 580.7 | 453.8 | ||||||||||||||||||||||
| Profit sharing expense: | |||||||||||||||||||||||||||||||
| Unrealized profit sharing expense | 147.1 | (17.4 | ) | (513.1 | ) | 13.1 | 153.7 | (9.1 | ) | 129.7 | 144.6 | ||||||||||||||||||||
| Realized profit sharing expense | 45.1 | 77.4 | 15.8 | 131.6 | 50.6 | 22.9 | 122.5 | 73.5 | |||||||||||||||||||||||
| Total profit sharing expenses | 192.2 | 60.0 | (497.3 | ) | 144.7 | 204.3 | 13.8 | 252.2 | 218.1 | ||||||||||||||||||||||
| Income (losses) from equity method investments | 15.8 | 4.5 | (39.4 | ) | 27.1 | 30.6 | 1.9 | 20.3 | 32.5 | ||||||||||||||||||||||
| Total other income (loss) | 15.8 | 4.5 | (39.4 | ) | 27.1 | 30.6 | 1.9 | 20.3 | 32.5 | ||||||||||||||||||||||
| Incentive Business Economic Net Income (Loss) | 265.3 | 83.5 | (900.7 | ) | 211.1 | 274.4 | (6.2 | ) | 348.8 | 268.2 | |||||||||||||||||||||
| Total Economic Net Income (Loss) | $ | 282.4 | $ | 112.3 | $ | (886.9 | ) | $ | 232.4 | $ | 311.2 | $ | 55.8 | $ | 394.7 | $ | 367.0 | ||||||||||||||
|
Capital Markets Segment: |
||||||||||||||||||||||||||||||||
|
|
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
|
March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
March 31, 2012 |
June 30, 2012 |
June 30, 2011 |
June 30, 2012 |
|||||||||||||||||||||||||
| Management Business: | ||||||||||||||||||||||||||||||||
| Advisory and transaction fees from affiliates | $ | 4.3 | $ | 2.0 | $ | 1.9 | $ | 6.5 | $ | 1.4 | $ | 4.3 | $ | 6.3 | $ | 5.7 | ||||||||||||||||
| Management fees from affiliates | 43.4 | 46.1 | 47.2 | 50.0 | 52.6 | 74.3 | 89.5 | 126.9 | ||||||||||||||||||||||||
| Carried interest income from affiliates: | ||||||||||||||||||||||||||||||||
| Realized gains | 12.5 | 11.2 | 11.3 | 9.5 | 9.6 | 9.2 | 23.7 | 18.8 | ||||||||||||||||||||||||
| Total management business revenues | 60.2 | 59.3 | 60.4 | 66.0 | 63.6 | 87.8 | 119.5 | 151.4 | ||||||||||||||||||||||||
| Equity-based compensation | 3.5 | 6.3 | 6.4 | 7.1 | 8.1 | 4.3 | 9.8 | 12.4 | ||||||||||||||||||||||||
| Salary, bonus and benefits | 24.5 | 28.6 | 29.1 | 10.7 | 27.6 | 31.2 | 53.1 | 58.8 | ||||||||||||||||||||||||
| Other expenses | 26.0 | 23.8 | 17.5 | 27.7 | 25.9 | 39.2 | 49.8 | 65.1 | ||||||||||||||||||||||||
| Total management business expenses | 54.0 | 58.7 | 53.0 | 45.5 | 61.6 | 74.7 | 112.7 | 136.3 | ||||||||||||||||||||||||
| Other income (loss) | 2.7 | 0.5 | (8.3 | ) | 3.1 | 2.9 | (0.7 | ) | 3.2 | 2.2 | ||||||||||||||||||||||
| Non-controlling interest | (3.6 | ) | (1.6 | ) | (4.1 | ) | (2.8 | ) | (1.4 | ) | (2.4 | ) | (5.2 | ) | (3.8 | ) | ||||||||||||||||
| Management Business Economic Net Income (Loss) | 5.3 | (0.5 | ) | (5.0 | ) | 20.8 | 3.5 | 10.0 | 4.8 | 13.5 | ||||||||||||||||||||||
| Incentive Business: | ||||||||||||||||||||||||||||||||
| Carried interest income (loss): | ||||||||||||||||||||||||||||||||
| Unrealized gains (losses) | 88.3 | 6.6 | (284.1 | ) | 122.3 | 148.3 | (16.7 | ) | 94.9 | 131.6 | ||||||||||||||||||||||
| Realized gains | 16.2 | 7.3 | 12.4 | 38.2 | 26.0 | 10.0 | 23.5 | 36.0 | ||||||||||||||||||||||||
| Total carried interest income (loss) | 104.5 | 13.9 | (271.7 | ) | 160.5 | 174.3 | (6.7 | ) | 118.4 | 167.6 | ||||||||||||||||||||||
| Profit sharing expense: | ||||||||||||||||||||||||||||||||
| Unrealized profit sharing expense | 20.5 | 7.8 | (69.6 | ) | 41.0 | 24.7 | (2.9 | ) | 28.3 | 21.8 | ||||||||||||||||||||||
| Realized profit sharing expense | 4.4 | 3.0 | 3.5 | 24.8 | 18.6 | 6.8 | 7.4 | 25.4 | ||||||||||||||||||||||||
| Total profit sharing expense | 24.9 | 10.8 | (66.1 | ) | 65.8 | 43.3 | 3.9 | 35.7 | 47.2 | |||||||||||||||||||||||
| Incentive fee compensation | 10.1 | (3.6 | ) | (3.8 | ) | 0.7 |
- |
- |
6.5 |
- |
||||||||||||||||||||||
| Net gains (losses) from investment activities | 17.8 | 2.3 | (33.4 | ) | 7.4 | 3.4 | (13.1 | ) | 20.1 | (9.7 | ) | |||||||||||||||||||||
| Income (loss) from equity method investments | 9.1 | 2.0 | (26.4 | ) | 17.4 | 17.7 | (0.7 | ) | 11.1 | 17.0 | ||||||||||||||||||||||
| Total other income (loss) | 26.9 | 4.3 | (59.8 | ) | 24.8 | 21.1 | (13.8 | ) | 31.2 | 7.3 | ||||||||||||||||||||||
| Incentive Business Economic Net Income (Loss) | 96.4 | 11.0 | (261.6 | ) | 118.8 | 152.1 | (24.4 | ) | 107.4 | 127.7 | ||||||||||||||||||||||
| Total Economic Net Income (Loss) | $ | 101.7 | $ | 10.5 | $ | (266.6 | ) | $ | 139.6 | $ | 155.6 | $ | (14.4 | ) | $ | 112.2 | $ | 141.2 | ||||||||||||||
|
Real Estate Segment: |
||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
|
March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
March 31, 2012 |
June 30 2012 |
June 30, 2011 |
June 30, 2012 |
|||||||||||||||||||||||||
| Management Business: | ||||||||||||||||||||||||||||||||
| Advisory and transaction fees from affiliates |
$ |
- |
$ |
- |
|
$ | 0.5 | $ | 0.2 |
$ |
- |
$ | 0.6 |
$ |
- |
$ | 0.6 | |||||||||||||||
| Management fees from affiliates | 9.3 | 9.7 | 10.5 | 10.8 | 10.4 | 12.9 | 19.0 | 23.3 | ||||||||||||||||||||||||
| Total management business revenues | 9.3 | 9.7 | 11.0 | 11.0 | 10.4 | 13.5 | 19.0 | 23.9 | ||||||||||||||||||||||||
| Equity-based compensation | 2.5 | 3.2 | 3.5 | 3.9 | 3.0 | 2.4 | 5.7 | 5.4 | ||||||||||||||||||||||||
| Salary, bonus and benefits | 9.8 | 7.9 | 6.9 | 8.5 | 6.7 | 5.9 | 17.7 | 12.6 | ||||||||||||||||||||||||
| Other expenses | 5.2 | 5.9 | 6.0 | 12.6 | 6.7 | 6.2 | 11.1 | 12.9 | ||||||||||||||||||||||||
| Total management business expenses | 17.5 | 17.0 | 16.4 | 25.0 | 16.4 | 14.5 | 34.5 | 30.9 | ||||||||||||||||||||||||
| Other income (loss) | 0.5 | 9.5 | (0.2 | ) | (0.1 | ) | 0.8 | (0.6 | ) | 10.0 | 0.2 | |||||||||||||||||||||
| Management Business Economic Net (Loss) Income | (7.7 | ) | 2.2 | (5.6 | ) | (14.1 | ) | (5.2 | ) | (1.6 | ) | (5.5 | ) | (6.8 | ) | |||||||||||||||||
| Incentive Business: | ||||||||||||||||||||||||||||||||
| Carried interest income: | ||||||||||||||||||||||||||||||||
| Unrealized gains |
- |
- |
- |
- |
- |
1.6 |
- |
1.6 | ||||||||||||||||||||||||
| Realized gains |
- |
- |
- |
- |
1.7 | 2.6 |
- |
4.3 | ||||||||||||||||||||||||
| Total carried interest income |
- |
- |
- |
- |
1.7 | 4.2 |
- |
5.9 | ||||||||||||||||||||||||
| Profit sharing expense: | ||||||||||||||||||||||||||||||||
| Unrealized profit sharing expense |
- |
- |
- |
- |
- |
1.2 |
- |
1.2 | ||||||||||||||||||||||||
| Realized profit sharing expense |
- |
- |
- |
1.4 | 1.5 | 1.0 |
- |
2.5 | ||||||||||||||||||||||||
| Total profit sharing expense |
- |
- |
- |
1.4 | 1.5 | 2.2 |
- |
3.7 | ||||||||||||||||||||||||
| Income from equity method investments | 0.1 | 0.3 | 0.2 | 0.1 | 0.2 | 0.2 | 0.4 | 0.4 | ||||||||||||||||||||||||
| Incentive Business Economic Net Income (Loss) | 0.1 | 0.3 | 0.2 | (1.3 | ) | 0.4 | 2.2 | 0.4 | 2.6 | |||||||||||||||||||||||
| Total Economic Net (Loss) Income | $ | (7.6 | ) | $ | 2.5 | $ | (5.4 | ) | $ | (15.4 | ) | $ | (4.8 | ) | $ | 0.6 | $ | (5.1 | ) | $ | (4.2 | ) | ||||||||||
|
APOLLO GLOBAL MANAGEMENT, LLC |
||||||||||||||||||||||||||||||||
|
Reconciliation of U.S. GAAP Net Income (Loss) to Economic Net Income (Loss): |
||||||||||||||||||||||||||||||||
|
|
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
|
March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
March 31, 2012 |
June 30, 2012 |
June 30, 2011 |
June 30, 2012 |
|||||||||||||||||||||||||
| Net Income (Loss) Attributable to Apollo Global Management, LLC |
$ |
38.2 |
|
$ | (51.0 | ) | $ | (467.0 | ) | $ | 11.0 |
$ |
98.0 |
|
$ |
(41.3 |
) | $ | (12.8 | ) |
$ |
56.7 |
|
|||||||||
| Impact of non-cash charges related to equity-based compensation: | ||||||||||||||||||||||||||||||||
| AOG units | 258.2 | 258.2 | 258.2 | 258.2 | 116.2 | 116.1 | 516.4 | 232.3 | ||||||||||||||||||||||||
| RSUs Private placement awards(1) | 11.9 | 11.9 | 11.4 | 11.8 | 13.3 | 11.0 | 23.8 | 24.3 | ||||||||||||||||||||||||
| ARI restricted stock awards, ARI RSUs and AMTG RSUs | 0.2 | 0.2 | 0.4 | 0.5 | 0.4 | 0.4 | 0.4 | 0.8 | ||||||||||||||||||||||||
| AAA RDUs | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | 0.3 | 0.2 | 0.4 | ||||||||||||||||||||||||
| Total non-cash charges related to equity-based compensation | 270.4 | 270.4 | 270.2 | 270.6 | 130.0 | 127.8 | 540.8 | 257.8 | ||||||||||||||||||||||||
| Income tax provision (benefit) | 8.8 | 3.6 | (19.9 | ) | 19.4 | 14.6 | 10.6 | 12.4 | 25.2 | |||||||||||||||||||||||
| Income (loss) from consolidated VIEs |
- |
- |
0.7 | (0.7 | ) |
- |
- |
- |
- |
|||||||||||||||||||||||
| Amortization of intangible assets associated with the 2007 Reorganization and acquisitions | 3.2 | 4.3 | 3.6 | 4.0 | 6.1 | 9.6 | 7.5 | 15.7 | ||||||||||||||||||||||||
| Net income (loss) attributable to Non-Controlling Interests in Apollo Operating Group | 56.0 | (102.0 | ) | (946.6 | ) | 52.3 | 213.3 | (64.7 | ) | (46.0 | ) | 148.6 | ||||||||||||||||||||
| Economic Net Income (Loss) | $ | 376.6 | $ | 125.3 | $ | (1,159.0 | ) | $ | 356.6 | $ | 462.0 | $ | 42.0 | $ | 501.9 | $ | 504.0 | |||||||||||||||
| (1) | Represents awards granted in connection with the 2007 private placement. |
|
APOLLO GLOBAL MANAGEMENT, LLC |
||||||||||||
|
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 June 30, 2012 and 2011 and December 31, 2011. Changes in market conditions, the additional funds raised and strategic acquisitions have had significant impacts to our AUM: |
||||||||||||
|
As of June 30, |
As of December 31, |
|||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| (in millions) | ||||||||||||
| Total Assets Under Management | $ |
104,893 |
(1) |
$ |
71,714 |
|
$ |
75,222 |
|
|||
| Fee-generating | 77,449 | 48,851 | 58,121 | |||||||||
| Non-fee generating |
27,444 |
(1) |
22,863 | 17,101 | ||||||||
| Private Equity | 38,228 | 40,430 | 35,384 | |||||||||
| Fee-generating | 27,754 | 27,729 | 28,031 | |||||||||
| Non-fee generating | 10,474 | 12,701 | 7,353 | |||||||||
| Capital Markets(2) | 56,108 | 23,684 | 31,867 | |||||||||
| Fee-generating | 45,509 | 18,064 | 26,553 | |||||||||
| Non-fee generating | 10,599 | 5,620 | 5,314 | |||||||||
| Real Estate(2) | 7,861 | 7,600 | 7,971 | |||||||||
| Fee-generating | 4,186 | 3,058 | 3,537 | |||||||||
| Non-fee generating | 3,675 | 4,542 | 4,434 | |||||||||
| (1) | Includes $2.7 billion of commitments that have yet to be deployed to an Apollo fund within our three segments. |
| (2) | Certain of our publicly traded vehicles AUM and Fee-generating AUM are as of March 31, 2012. |
|
The following tables summarize changes in total AUM and total AUM for each of our segments for the three and six months ended June 30, 2012 and 2011: |
||||||||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2012 |
2011(1) |
2012 |
2011(1) |
|||||||||||||
| (in millions) | ||||||||||||||||
| Change in Total AUM: | ||||||||||||||||
| Beginning of Period | $ |
86,126 |
(2) |
$ | 69,959 | $ | 75,222 | $ | 67,551 | |||||||
| Income | 380 | 1,601 | 4,836 | 4,299 | ||||||||||||
| Subscriptions/Capital raised | 2,251 | 1,085 | 6,592 | 1,886 | ||||||||||||
| Other inflows/Acquisitions | 18,546 |
- |
19,928 |
- |
||||||||||||
| Distributions | (3,269 | ) | (1,551 | ) | (3,582 | ) | (3,137 | ) | ||||||||
| Redemptions | (654 | ) | (30 | ) | (753 | ) | (139 | ) | ||||||||
| Leverage | 1,513 | 650 | 2,650 | 1,254 | ||||||||||||
| End of Period | $ |
104,893 |
(2) |
$ | 71,714 | $ |
104,893 |
(2) |
$ | 71,714 | ||||||
| Change in Private Equity AUM: | ||||||||||||||||
| Beginning of Period | $ | 38,398 | $ | 39,578 | $ | 35,384 | $ | 38,799 | ||||||||
| Income | 517 | 837 | 3,748 | 2,670 | ||||||||||||
| Subscriptions/Capital raised | 20 |
- |
28 |
- |
||||||||||||
| Distributions | (1,518 | ) | (998 | ) | (1,578 | ) | (2,209 | ) | ||||||||
| Net segment transfers | 158 | 31 | 157 | 164 | ||||||||||||
| Leverage | 653 | 982 | 489 | 1,006 | ||||||||||||
| End of Period | $ | 38,228 | $ | 40,430 | $ | 38,228 | $ | 40,430 | ||||||||
| Change in Capital Markets AUM: | ||||||||||||||||
| Beginning of Period | $ | 36,465 | $ | 23,834 | $ | 31,867 | $ | 22,283 | ||||||||
| (Loss) Income | (117 | ) | 371 | 934 | 1,246 | |||||||||||
| Subscriptions/Capital raised | 2,101 | 1,000 | 3,129 | 1,805 | ||||||||||||
| Other inflows/Acquisitions | 18,546 |
- |
19,928 |
- |
||||||||||||
| Distributions | (1,162 | ) | (246 | ) | (1,244 | ) | (621 | ) | ||||||||
| Redemptions | (381 | ) | (30 | ) | (480 | ) | (139 | ) | ||||||||
| Net segment transfers | (551 | ) | (523 | ) | (640 | ) | (757 | ) | ||||||||
| Leverage | 1,207 | (722 | ) | 2,614 | (133 | ) | ||||||||||
| End of Period | $ | 56,108 | $ | 23,684 | $ | 56,108 | $ | 23,684 | ||||||||
| Change in Real Estate AUM: | ||||||||||||||||
| Beginning of Period | $ | 8,263 | $ | 6,547 | $ | 7,971 | $ | 6,469 | ||||||||
| (Loss) income | (20 | ) | 393 | 154 | 383 | |||||||||||
| Subscriptions/Capital raised | 84 | 85 | 389 | 81 | ||||||||||||
| Distributions | (589 | ) | (307 | ) | (760 | ) | (307 | ) | ||||||||
| Redemptions(3) | (273 | ) |
- |
(273 | ) |
- |
||||||||||
| Net segment transfers | 743 | 492 | 833 | 593 | ||||||||||||
| Leverage | (347 | ) | 390 | (453 | ) | 381 | ||||||||||
| End of Period | $ | 7,861 | $ | 7,600 | $ | 7,861 | $ | 7,600 | ||||||||
| (1) | Reclassified to conform to current period’s presentation. |
| (2) | Includes $3.0 billion and $2.7 billion of commitments that have yet to be deployed to an Apollo fund within our three segments at the end of the first quarter and second quarter, respectively. |
| (3) | Includes $273 million of released unfunded commitments primarily related to two legacy CPI real estate funds that were past their investment periods. |
|
The following tables summarize changes in total fee-generating AUM and fee-generating AUM for each of our segments for the three and six months ended June 30, 2012 and 2011: |
||||||||||||||||
|
For the |
For the Six Months Ended June 30, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (in millions) | ||||||||||||||||
| Change in Total Fee-Generating AUM: | ||||||||||||||||
| Beginning of Period | $ | 59,571 | $ |
48,269 |
$ | 58,121 | $ | 47,037 | ||||||||
| (Loss) Income | (110 | ) |
419 |
289 | 994 | |||||||||||
| Subscriptions/Capital raised | 2,609 | 221 | 3,023 | 888 | ||||||||||||
| Other inflows/Acquisitions | 16,194 |
- |
17,576 |
- |
||||||||||||
| Distributions | (1,269 | ) | (196 | ) | (1,453 | ) | (511 | ) | ||||||||
| Redemptions | (363 | ) | (12 | ) | (460 | ) | (118 | ) | ||||||||
| Net movements between Fee Generating and Non-Fee Generating | (615 | ) |
- |
(618 | ) | 100 | ||||||||||
| Leverage | 1,432 | 150 | 971 | 461 | ||||||||||||
| End of Period | $ | 77,449 | $ | 48,851 | $ | 77,449 | $ | 48,851 | ||||||||
| Change in Private Equity Fee-Generating AUM: | ||||||||||||||||
| Beginning of Period | $ | 27,653 | $ | 27,804 | $ | 28,031 | $ | 27,874 | ||||||||
| Income (loss) | 58 | (56 | ) | 134 | (28 | ) | ||||||||||
| Subscriptions/Capital raised | 18 |
- |
28 |
- |
||||||||||||
| Distributions | (298 | ) | (57 | ) | (351 | ) | (234 | ) | ||||||||
| Net segment transfers |
- |
31 |
- |
65 | ||||||||||||
| Net movements between Fee Generating and Non-Fee Generating | 230 |
- |
239 |
- |
||||||||||||
| Leverage | 93 | 7 | (327 | ) | 52 | |||||||||||
| End of Period | $ | 27,754 | $ | 27,729 | $ | 27,754 | $ | 27,729 | ||||||||
| Change in Capital Markets Fee-Generating AUM: | ||||||||||||||||
| Beginning of Period | $ | 28,207 | $ |
17,660 |
$ | 26,553 | $ |
16,484 |
||||||||
| (Loss) Income | (125 | ) |
954 |
130 |
1,536 |
|||||||||||
| Subscriptions/Capital raised | 2,478 | 142 | 2,781 | 741 | ||||||||||||
| Other inflows/Acquisitions | 16,194 |
- |
17,576 |
- |
||||||||||||
| Distributions | (833 | ) | (100 | ) | (903 | ) | (231 | ) | ||||||||
| Redemptions | (363 | ) | (12 | ) | (460 | ) | (118 | ) | ||||||||
| Net segment transfers | (501 | ) | (292 | ) | (589 | ) | (326 | ) | ||||||||
| Net movements between Fee Generating and Non-Fee Generating | (887 | ) |
- |
(877 | ) |
- |
||||||||||
| Leverage | 1,339 | (288 | ) | 1,298 | (22 | ) | ||||||||||
| End of Period | $ | 45,509 | $ | 18,064 | $ | 45,509 | $ | 18,064 | ||||||||
| Change in Real Estate Fee-Generating AUM: | ||||||||||||||||
| Beginning of Period | $ | 3,711 | $ | 2,805 | $ | 3,537 | $ |
2,679 |
||||||||
| (Loss) Income | (43 | ) | (479 | ) | 25 |
(514 |
) | |||||||||
| Subscriptions/Capital raised | 113 | 79 | 214 | 147 | ||||||||||||
| Distributions | (138 | ) | (39 | ) | (199 | ) | (46 | ) | ||||||||
| Net segment transfers | 501 | 261 | 589 | 261 | ||||||||||||
| Net movements between Fee Generating and Non-Fee Generating | 42 |
- |
20 | 100 | ||||||||||||
| Leverage |
- |
431 |
- |
431 | ||||||||||||
| End of Period | $ | 4,186 | $ | 3,058 | $ | 4,186 | $ | 3,058 | ||||||||
|
APOLLO GLOBAL MANAGEMENT, LLC |
||||||||||||||||||||||||||||||||||
|
Investment Record |
||||||||||||||||||||||||||||||||||
|
Private Equity |
||||||||||||||||||||||||||||||||||
|
The following table summarizes the investment record of our private equity fund portfolios. All amounts are as of June 30, 2012, unless otherwise noted: |
||||||||||||||||||||||||||||||||||
|
Vintage |
Committed |
Total |
Realized | Unrealized(1) |
Total Value |
As of June 30, 2012 |
As of December 31, 2011 |
|||||||||||||||||||||||||||
|
Gross IRR |
Net IRR |
Gross IRR |
Net IRR |
|||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||
| ANRP(2) | 2012 | $ |
802 |
|
$ |
187 |
|
$ |
- |
|
$ |
180 |
|
$ |
180 |
|
NM |
(2) |
NM |
(2) |
N/A | N/A | ||||||||||||
| Fund VII | 2008 | 14,676 | 13,130 | 7,244 | 12,485 | 19,729 | 33 | % | 23 | % | 31 | % | 22 | % | ||||||||||||||||||||
| Fund VI | 2006 | 10,136 | 11,797 | 5,194 | 10,345 | 15,539 | 9 | 8 | 6 | 5 | ||||||||||||||||||||||||
| Fund V | 2001 | 3,742 | 5,192 | 11,155 | 1,747 | 12,902 | 61 | 44 | 61 | 44 | ||||||||||||||||||||||||
| Fund IV | 1998 | 3,600 | 3,481 | 6,757 | 60 | 6,817 | 12 | 9 | 12 | 9 | ||||||||||||||||||||||||
| Fund III | 1995 | 1,500 | 1,499 | 2,654 | 51 | 2,705 | 18 | 11 | 18 | 12 | ||||||||||||||||||||||||
| Fund I, II & MIA(3) | 1990/92 | 2,220 | 3,773 | 7,924 |
- |
7,924 | 47 | 37 | 47 | 37 | ||||||||||||||||||||||||
|
Totals |
$ | 36,676 | $ | 39,059 | $ | 40,928 | $ | 24,868 | $ | 65,796 | 39 | %(4) | 25 | %(4) | 39 | %(4) | 25 | %(4) | ||||||||||||||||
| (1) | Figures include the market values, estimated fair value of certain unrealized investments and capital committed to investments. |
| (2) | Apollo Natural Resources Partners, L.P. (“ANRP”) commenced investing capital less than 24 months prior to the period indicated. Given the limited investment period and overall longer investment period for private equity funds, the return information was deemed not meaningful. |
| (3) | Fund I and Fund II were structured such that investments were made from either fund depending on which fund had available capital. We do 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 of Apollo Global Management, LLC. 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 our managing partners and other investment professionals. |
| (4) | Total IRR is calculated based on total cash flows for all funds presented. |
|
Capital Markets |
||||||||||||||||||||||||||||||||||||
|
The following table summarizes the investment record for certain funds with a defined maturity date and internal rate of return since inception, which is computed for the purposes of this table based on the actual dates of capital contributions, distributions and ending limited partners’ capital as of the specified date. All amounts are as of June 30, 2012, unless otherwise noted: |
||||||||||||||||||||||||||||||||||||
|
As of |
As of December 31, 2011 |
|||||||||||||||||||||||||||||||||||
| Strategy |
Vintage |
Committed |
Total |
Realized |
Unrealized(1) |
Total |
Gross |
Net |
Gross |
Net |
||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||
| ACRF II(2) | Other | 2012 | $ |
85.2 |
|
$ |
59.7 |
|
$ |
0.6 |
|
$ |
60.6 |
|
$ |
61.2 |
|
NM |
(4) |
NM |
(4) |
NM |
(4) |
NM |
(4) |
|||||||||||
| EPF II(3) | Non-Performing Loan | 2012 | 2,054.3 | 133.7 | 5.5 | 126.4 | 131.9 |
NM |
(4) |
NM |
(4) |
NM |
(4) |
NM |
(4) |
|||||||||||||||||||||
| FCI(3) | Other | 2012 | 558.8 | 321.4 | 10.3 | 318.1 | 328.4 |
NM |
(4) |
NM |
(4) |
NM |
(4) |
NM |
(4) |
|||||||||||||||||||||
| AESI(3) | Senior Credit Fund | 2011 | 450.1 | 248.5 | 62.8 | 207.3 | 270.1 |
NM |
(4) |
NM |
(4) |
NM |
(4) |
NM |
(4) |
|||||||||||||||||||||
| AEC(3) | Senior Credit Fund | 2011 | 270.3 | 100.0 | 22.4 | 81.6 | 104.0 |
NM |
(4) |
NM |
(4) |
NM |
(4) |
NM |
(4) |
|||||||||||||||||||||
| AIE II(5) | Mezzanine Fund | 2008 | 261.4 | 763.7 | 684.3 | 349.3 | 1,033.6 | 18.3 | % | 14.5 | % | 18.2 | % | 14.2 | % | |||||||||||||||||||||
| COF I | Senior Credit Fund | 2008 | 1,484.9 | 1,611.3 | 1,158.4 | 2,180.9 | 3,339.3 | 27.0 | 24.2 | 25.0 | 22.4 | |||||||||||||||||||||||||
| COF II | Senior Credit Fund | 2008 | 1,583.0 | 2,176.4 | 1,481.4 | 1,392.6 | 2,874.0 | 13.0 | 10.8 | 10.3 | 8.5 | |||||||||||||||||||||||||
| EPF I(5) | Non-Performing Loan | 2007 | 1,639.5 | 1,571.5 | 1,072.5 | 1,033.8 | 2,106.3 | 16.8 | 9.5 | 16.6 | 8.8 | |||||||||||||||||||||||||
| ACLF | Senior Credit Fund | 2007 | 984.0 | 1,448.5 | 1,436.1 | 424.3 | 1,860.4 | 11.3 | 10.5 | 10.1 | 9.2 | |||||||||||||||||||||||||
| Artus | Senior Credit Fund | 2007 | 106.6 | 190.1 | 39.0 | 170.6 | 209.6 | 4.2 | 4.0 | 3.6 | 3.4 | |||||||||||||||||||||||||
| Totals | $ | 9,478.1 | $ | 8,624.8 | $ | 5,973.3 | $ | 6,345.5 | $ | 12,318.8 | ||||||||||||||||||||||||||
| (1) | Figures include the market values, estimated fair value of certain unrealized investments and capital committed to investments. |
| (2) |
As part of the Stone Tower acquisition, Apollo acquired the manager of Apollo Structured Credit Recovery Master Fund II, Ltd. (“ACRF II”). Apollo became the manager of this fund upon completing the acquisition on April 2, 2012. |
| (3) | Apollo European Principal Finance Fund II, L.P. (“EPF II”), Financial Credit Investment I, L.P. (“FCI”), Apollo European Strategic Investment, L.P. (“AESI”) and Apollo European Credit Master Fund, L.P. (“AEC”) were established during 2011. FCI had its final capital raise in the first quarter of 2012, establishing its vintage year. |
| (4) | 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. |
| (5) | Fund is denominated in Euros and translated into U.S. dollars at an exchange rate of €1.00 to $1.27 as of June 30, 2012. |
|
The following table summarizes the investment record for certain funds with no maturity date, except AIE I which is winding down and is therefore expected to have a finite life. All amounts are as of June 30, 2012, unless otherwise noted: |
|||||||||||||||||||||||
| Net Return | |||||||||||||||||||||||
| Strategy | Vintage Year |
Current Net |
Since Inception |
For the Six |
For the Six |
Since Inception |
For the Year |
||||||||||||||||
| (in millions) | |||||||||||||||||||||||
|
ACSF(2) |
Other | 2011 |
$ |
153.8 |
|
NM |
(1) |
NM |
(1) |
NM |
(1) |
NM |
(1) |
NM |
(1) |
||||||||
|
STCS(2) |
Other | 2010 | 84.3 |
NM |
(1) |
NM |
(1) |
NM |
(1) |
NM |
(1) |
NM |
(1) |
||||||||||
|
ACF(2) |
Other | 2005 | 1,705.9 |
NM |
(1)(2) |
NM |
(1)(2) |
NM |
(1)(2) |
NM |
(1)(2) |
NM |
(1)(2) |
||||||||||
|
ACSP(1)(3) |
Senior Credit Fund | 2012 | 176.4 |
NM |
(1) |
NM |
(1) |
N/A |
NM |
(1) |
NM |
(1) |
|||||||||||
|
AMTG(1)(4) |
Senior Credit Fund | 2011 | 216.7 |
NM |
(1) |
NM |
(1) |
N/A |
NM |
(1) |
NM |
(1) |
|||||||||||
|
AFT(1)(5) |
Senior Credit Fund | 2011 | 284.0 |
NM |
(1) |
NM |
(1) |
NM |
(1) |
NM |
(1) |
NM |
(1) |
||||||||||
| AAOF | Distressed and Event Driven | 2007 | 88.9 | 0.7 | % | (6.2 | )% | (1.9 | )% | 7.4 | % | (7.3 | )% | ||||||||||
| SOMA(6) | Distressed and Event Driven | 2007 | 927.7 | 43.3 | 13.8 | 3.2 | 25.9 | (10.5 | ) | ||||||||||||||
| AIE I(7) | Mezzanine Fund | 2006 | 25.5 | (56.7 | ) | (18.4 | ) | 11.4 | (50.0 | ) | (4.4 | ) | |||||||||||
| AINV(8) | Mezzanine Fund | 2004 | 1,685.2 | 43.8 | 7.2 | 6.0 | 34.1 | (5.1 | ) | ||||||||||||||
| Value Funds(9) | Distressed and Event Driven | 2003/2006 | 803.1 | 62.8 | 8.6 | 3.2 | 50.0 | (9.6 | ) | ||||||||||||||
| Totals | $ | 6,151.5 | |||||||||||||||||||||
| (1) | 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. |
| (2) |
As part of the Stone Tower acquisition, Apollo acquired the manager of Apollo Credit Strategies Master Fund Ltd. (“ACSF”), Stone Tower Credit Solutions Master Fund Ltd. (“STCS”), and Apollo Credit Master Fund Ltd (“ACF”). The net IRR from inception for ACF was (14.4)%, which was 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) | Apollo Centre Street Partnership, L.P. (“ACSP”) is a strategic investment account with $615.0 million of committed capital. |
| (4) |
In July 2011, Apollo Residential Mortgage, Inc. (“AMTG”) completed its initial public offering raising approximately $203.0 million in net proceeds. The net asset value is shown as of March 31, 2012. Refer to www.apolloresidentialmortgage.com for the most recent financial information on AMTG. |
| (5) |
The Apollo Senior Floating Rate Fund Inc. (“AFT”) completed its initial public offering during the first quarter of 2011. Refer to www.agmfunds.com for the most recent financial information on AFT. |
| (6) | SOMA’s NAV and returns are for the primary mandate, which follows similar strategies as the Value Funds and excludes SOMA’s investments in other Apollo funds. |
| (7) | Fund is denominated in Euros and translated into U.S. dollars at an exchange rate of €1.00 to $1.27 as of June 30, 2012. |
| (8) |
Net return for AINV represents NAV return including reinvested dividends. Results are presented as of March 31, 2012. Refer to www.apolloic.com for the most recent public financial information on AINV. |
| (9) | Value Funds consist of Apollo Strategic Value Master Fund, L.P., together with its feeder funds (“SVF”) and Apollo Value Investment Master Fund, L.P., together with its feeder funds (“VIF”). |
|
Real Estate |
||||||||||||||||||||||||||||||||||||
|
The following table summarizes the investment record for certain funds with a defined maturity date and internal rate of return since inception, which for the purposes of this table is computed based on the actual dates of capital contributions, distributions and ending limited partners’ capital as of the specified date. All amounts are as of June 30, 2012, unless otherwise noted: |
||||||||||||||||||||||||||||||||||||
|
As of June 30, 2012 |
As of December 31, 2011 |
|||||||||||||||||||||||||||||||||||
|
Vintage |
Raised |
Current Net |
Total |
Realized |
Unrealized(1) |
Total Value |
Gross |
Net IRR |
Gross IRR |
Net IRR |
||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||
|
AGRE U.S. Real Estate Fund, L.P(2)(3) |
2012 | $ |
785.2 |
|
$ |
104.8 |
|
$ |
116.2 |
|
$ |
- |
|
$ |
115.8 |
|
$ |
115.8 |
|
NM |
(2) |
NM |
(2) |
NM(2) |
NM(2) |
|||||||||||
|
AGRE Debt Fund I, LP(2) |
2011 | 155.5 | 155.8 | 155.0 |
- |
155.0 | 155.0 |
NM |
(2) |
NM |
(2) |
NM(2) |
NM(2) |
|||||||||||||||||||||||
|
2011 A4 Fund, L.P.(2) |
2011 | 234.7 | 211.4 | 930.8 |
- |
930.5 | 930.5 |
NM |
(2) |
NM |
(2) |
NM(2) |
NM(2) |
|||||||||||||||||||||||
| AGRE CMBS Fund, L.P. | 2009 | 418.8 | 192.4 | 1,572.9 |
- |
881.8 | 881.8 | 14.2 | % | 11.9 | % |
NM(2) |
NM(2) |
|||||||||||||||||||||||
|
CPI Capital Partners North America(4) |
2006 | 600.0 | 131.6 | 451.4 | 227.7 | 113.2 | 340.9 |
N/A |
(4) |
N/A |
(4) |
N/A(4) |
N/A(4) |
|||||||||||||||||||||||
|
CPI Capital Partners Asia Pacific(4) |
2006 | 1,291.6 | 390.8 | 1,103.9 | 1,052.5 | 378.0 | 1,430.5 |
N/A |
(4) |
N/A |
(4) |
N/A(4) |
N/A(4) |
|||||||||||||||||||||||
|
CPI Capital Partners Europe(4)(5) |
2006 | 1,471.1 | 448.1 | 922.4 | 65.9 | 422.5 | 488.4 |
N/A |
(4) |
N/A |
(4) |
N/A(4) |
N/A(4) |
|||||||||||||||||||||||
| CPI Other | Various | 3,151.7 | 1,058.1 |
N/A |
(6) |
N/A |
(6) |
N/A |
(6) |
N/A |
(6) |
N/A |
(6) |
N/A |
(6) |
N/A(6) |
N/A(6) |
|||||||||||||||||||
| Totals | $ | 8,108.6 | $ | 2,693.0 | $ | 5,252.6 | $ | 1,346.1 | $ | 2,996.8 | $ | 4,342.9 |
|
|||||||||||||||||||||||
| (1) | Figures include estimated fair value of unrealized investments. |
| (2) | 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. |
| (3) | AGRE U.S. Real Estate Fund, L.P., a newly formed closed-end private investment fund that intends to make real estate-related investments principally located in the United States, held closings in January 2011, June 2011 and April 2012 for a total of $263.2 million in base capital commitments and $450 million in additional capital commitments. Additionally, there was $72.0 million of co-invest commitments raised for an investment in the first quarter of 2012, which is included in the figures in the table above. |
| (4) | As part of the CPI acquisition, Apollo acquired general partner interests in fully invested funds. The net IRRs from the inception of the respective fund to June 30, 2012 were (10.7)%, 5.4% and (15.1)% 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. |
| (5) | CPI Capital Partners Europe is denominated in Euros and translated into U.S. dollars at an exchange rate of €1.00 to $1.27 as of June 30, 2012. |
| (6) | CPI Other consists of funds or individual investments of which we are not the general partner or manager and only receive 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 is therefore not considered meaningful as we perform primarily an administrative role. |
Apollo also manages Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI), which as of March 31, 2012 had total raised capital and total stockholders' equity of $355.3 million and $338.4 million, respectively.
|
APOLLO GLOBAL MANAGEMENT, LLC |
||||||||||||||||||||||||
|
Supplemental Segment Information |
||||||||||||||||||||||||
|
Private Equity Dollars Invested and Uncalled Commitments |
||||||||||||||||||||||||
|
The following table summarizes the private equity dollars invested during the specified reporting periods: |
||||||||||||||||||||||||
|
For the |
For the Six Months Ended June 30, |
|||||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||
| Private equity dollars invested |
$ |
1,657 |
|
$ |
565 |
|
$ |
2,641 |
|
$ |
1,367 |
|
||||||||||||
|
The following table summarizes the uncalled private equity commitments as of June 30, 2012, December 31, 2011 and June 30, 2011: |
||||||||||||
|
As of June 30, 2012 |
As of December 31, 2011 |
As of June 30, 2011 |
||||||||||
| (in millions) | ||||||||||||
| Uncalled private equity commitments |
$ |
6,647 |
|
$ |
8,204 |
|
$ |
9,911 |
|
|||
|
Cost and Fair Value of our Funds’ Investments by Segment |
|||||||||||||||||
|
The following table provides a summary of the cost and fair value of our funds’ investments by segment: |
|||||||||||||||||
|
As of |
As of December 31, 2011 |
As of June 30, 2011 |
|||||||||||||||
| (in millions) | |||||||||||||||||
| Private Equity: | |||||||||||||||||
| Cost |
$ |
16,963 |
|
$ |
15,956 |
|
$ |
14,459 |
|
||||||||
| Fair Value | 24,817 | 20,700 | 24,024 | ||||||||||||||
| Capital Markets(1): | |||||||||||||||||
| Cost | 13,618 | 10,917 | $ | 10,216 | |||||||||||||
| Fair Value | 14,190 | 11,696 | 12,193 | ||||||||||||||
| Real Estate(2): | |||||||||||||||||
| Cost | 4,093 | 4,791 | $ | 4,110 | |||||||||||||
| Fair Value | 3,664 | 4,344 | 3,528 | ||||||||||||||
| (1) | Includes AINV and AMTG amounts as of March 31, 2012. |
| (2) | Includes ARI amounts as of March 31, 2012. |
As of June 30, 2012, approximately 72% of the fair value of our fund investments was determined using market-based valuation methods (i.e., reliance on broker or listed exchange quotes) and the remaining 28% was determined primarily by comparable company and industry multiples or discounted cash flow models. For our private equity, capital markets and real estate segments, the percentage determined using market-based valuation methods as of June 30, 2012 was 59%, 87% and 47%, respectively.
|
APOLLO GLOBAL MANAGEMENT, LLC |
|||||||||||||||||||||||||||
|
The table below presents an analysis of our (i) carried interest receivable and (ii) realized and unrealized carried interest (loss) income for our combined segments as of and for the three and six months ended June 30, 2012: |
|||||||||||||||||||||||||||
|
As of |
For the |
For the |
|||||||||||||||||||||||||
|
Carried |
Unrealized |
Realized |
Total |
Unrealized |
Realized |
Total |
|||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||
| Private Equity Funds: | |||||||||||||||||||||||||||
| Fund VII | $ |
770.7 |
|
$ | 14.0 | $ |
26.6 |
|
$ | 40.6 | $ | 301.9 | $ | 51.2 | $ | 353.1 | |||||||||||
| Fund VI |
- |
(102.6 |
)(2) |
16.0 | (86.6 | ) | (68.5 | ) | 105.5 | 37.0 | |||||||||||||||||
| Fund V | 184.2 | 47.6 |
- |
47.6 | 59.2 |
- |
59.2 | ||||||||||||||||||||
| Fund IV | 13.2 | (5.2 | ) | 0.8 | (4.4 | ) | (4.8 | ) | 0.8 | (4.0 | ) | ||||||||||||||||
| Other (AAA, Stanhope) | 22.5 | 8.5 |
- |
8.5 | 0.5 | 8.0 | 8.5 | ||||||||||||||||||||
| Total Private Equity Funds | 990.6 | (37.7 | ) | 43.4 | 5.7 | 288.3 | 165.5 | 453.8 | |||||||||||||||||||
| Capital Markets Funds: | |||||||||||||||||||||||||||
| Distressed and Event-Driven Hedge Funds (Value Funds, SOMA, AAOF) | 17.2 | (27.4 | ) |
- |
(27.4 | ) | 4.4 |
- |
4.4 | ||||||||||||||||||
| Mezzanine Funds (AIE II, AINV) | 8.3 | (0.8 | ) | 9.2 | 8.4 | 4.9 | 18.8 | 23.7 | |||||||||||||||||||
| Non-Performing Loan Fund (EPF) | 65.8 | 18.3 |
- |
18.3 | 14.6 |
- |
14.6 | ||||||||||||||||||||
| Senior Credit Funds (COF I/COF II, ACLF, AEC, AESI, CLOs) | 190.4 | (20.8 | ) | 9.5 | (11.3 | ) | 89.6 | 33.3 | 122.9 | ||||||||||||||||||
| Stone Tower Funds/CLOs | 24.9 | 18.1 | 0.5 | 18.6 | 18.1 | 0.5 | 18.6 | ||||||||||||||||||||
| Sub-Advisory Arrangements | 2.2 | (4.1 | ) |
- |
(4.1 | ) |
- |
2.2 | 2.2 | ||||||||||||||||||
| Total Capital Markets Funds | 308.8 | (16.7 | ) | 19.2 | 2.5 | 131.6 | 54.8 | 186.4 | |||||||||||||||||||
| Real Estate Funds: | |||||||||||||||||||||||||||
| CPI Other | 3.4 | 1.6 | 2.6 | 4.2 | 1.6 | 4.3 | 5.9 | ||||||||||||||||||||
| Total Real Estate Funds | 3.4 | 1.6 | 2.6 | 4.2 | 1.6 | 4.3 | 5.9 | ||||||||||||||||||||
| Total | $ | 1,302.8 |
(1) |
$ | (52.8 | ) | $ | 65.2 | $ | 12.4 | $ | 421.5 | $ | 224.6 | $ | 646.1 | |||||||||||
| (1) | There was a corresponding profit sharing payable of $665.9 million as of June 30, 2012 that results in a net carried interest receivable amount of $636.9 million as of June 30, 2012. |
| (2) | See the table below summarizing the fair value gains on investments and income needed to generate carried interest for funds and the related general partner obligation to return previously distributed carried interest income. |
|
The following table summarizes the fair value gains on investments and income to reverse the general partner obligation to return previously distributed carried interest income based on the current fair value of the underlying funds’ investments as of June 30, 2012: |
|||||||||||||
| Fund |
General Partner |
Fair Value of Investments |
Fair Value Gain on |
||||||||||
| (in millions) | |||||||||||||
| Fund VI |
$ |
143.8 |
|
$ |
10,345.0 |
|
$ |
440.0 |
|
||||
| SOMA | 18.3 | 791.8 | 20.3 | ||||||||||
| $ | 162.1 | $ | 11,136.8 | $ | 460.3 | ||||||||
| (1) | Based upon a hypothetical liquidation as of June 30, 2012, Apollo has recorded a general partner obligation to return previously distributed carried interest income, which represents amounts due to this fund. The actual determination and any required payment of a general partner obligation would not take place until the final disposition of the fund’s investments based on contractual termination of the fund. |
| (2) | The fair value gain on investments and income to reverse the general partner obligation is based on the life-to-date activity of the entire fund and assumes a hypothetical liquidation of the fund as of June 30, 2012. |
|
APPOLO GLOBAL MANAGEMENT, LLC |
||||||||
|
SUPPLEMENTAL SHARE INFORMATION (UNAUDITED) |
||||||||
|
The table below presents Non-GAAP weighted average diluted shares outstanding for the three and six months ended June 30, 2012 and 2011: |
||||||||
|
For the |
For the |
|||||||
| 2012 | 2011 | 2012 | 2011 | |||||
| Total GAAP Weighted Average Outstanding Class A Shares: | ||||||||
| Basic | 126,457,443 | 120,963,248 | 125,863,348 | 109,652,330 | ||||
| Non-GAAP Adjustments: | ||||||||
| AOG Units | 240,000,000 | 240,000,000 | 240,000,000 | 240,000,000 | ||||
| Vested RSUs(1) | 19,564,430 | 15,050,637 | 18,961,618 | 15,195,574 | ||||
| Non-GAAP Weighted Average Diluted Shares Outstanding | 386,021,873 | 376,013,885 | 384,824,966 | 364,847,904 | ||||
| (1) | Vested RSUs have not been issued in the form of Class A shares. As a result, the amount of Vested RSUs has been excluded from the outstanding Class A share basic and diluted amounts. |
|
The table below presents Non-GAAP diluted shares outstanding as of June 30, 2012 and 2011: |
||||
|
As of June 30, |
||||
| 2012 | 2011 | |||
| Total GAAP Outstanding Class A Shares: | ||||
| Basic | 126,460,740 | 121,721,490 | ||
| Non-GAAP Adjustments: | ||||
| AOG Units | 240,000,000 | 240,000,000 | ||
| Vested RSUs(1) | 20,943,567 | 16,629,276 | ||
| Non-GAAP Diluted Shares Outstanding | 387,404,307 | 378,350,766 | ||
| (1) | Vested RSUs have not been issued in the form of Class A shares. As a result, the amount of Vested RSUs 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 5.4 million and 6.5 million unvested RSUs that participate in distributions as of June 30, 2012 and 2011, 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, capital markets
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. As it relates to compensation, management seeks to align the interests of certain professionals and selected other individuals with those of the investors in such funds and those of the Company’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 the Company’s performance and growth for the year.
- 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. The assumptions and methodology impact the implied income tax provision which is consistent with those methodologies and 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.
- ENI After Taxes per Share represents ENI After Taxes which is divided by Non-GAAP Weighted Average Diluted Shares Outstanding. We believe ENI After Taxes per Share provides useful information to shareholders because management uses ENI After Taxes per Share as the basis to derive our earnings available for the determination of distributions to Class A shareholders.
- 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 240,000,000 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 described above.
- 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 240,000,000 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.
Definitions
-
Assets Under Management, or AUM, refers to the
investments we manage or with respect to which we have control,
including capital we have the right to call from our investors
pursuant to their capital commitments to various funds. Our AUM equals
the sum of:
(i) the fair value of our private equity investments plus the capital that we are entitled to call from our investors pursuant to the terms of their capital commitments plus non-recallable capital to the extent a fund is within the commitment period in which management fees are calculated based on total commitments to the fund;
(ii) the net asset value, or “NAV,” of our capital markets funds, other than certain senior credit funds, which are structured as collateralized loan obligations (such as Artus, which we measure by using the mark-to-market value of the aggregate principal amount of the underlying collateralized loan obligations) or certain collateralized loan obligation and collateralized debt obligation credit funds that have a fee generating basis other than mark-to-market asset, plus used or available leverage and/or capital commitments;
(iii) the gross asset values or net asset value of our real estate entities and the structured portfolio vehicle investments included within the funds we manage, which includes the leverage used by such structured portfolio vehicles;
(iv) the incremental value associated with the reinsurance investments of the portfolio company assets that we manage; and
(v) the fair value of any other investments that we manage plus unused credit facilities, including capital commitments for investments that may require pre-qualification before investment plus any other capital commitments 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 that we manage and on
which we earn management fees or monitoring fees pursuant to
management agreements on a basis that varies among the Apollo funds.
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 for AUM purposes are based on the total value of certain
structured portfolio vehicle investments, which normally include
leverage, less any portion of such total value that is already
considered in fee-generating AUM.
We use 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 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 vehicle investments that do not generate monitoring fees; and
(vi) the difference between gross assets and net asset value for those funds that earn management fees based on net asset value.
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.
- Private equity dollars invested is the aggregate amount of dollars invested by certain of Apollo’s private equity funds 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.
- Uncalled private equity commitments represents unfunded capital commitments that certain of Apollo’s private equity funds have received from its limited partners to contribute capital 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.
- “Gross IRR” of a 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 June 30, 2012 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.
- “Net IRR” of a 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) and realized 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 an Apollo private equity fund exceeds all requirements detailed within the applicable fund agreement, 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.
For inquiries regarding Apollo, please contact:
Apollo Global
Management, LLC
Gary M. Stein, Head of Corporate Communications
212-822-0467
gstein@apollolp.com
or
Apollo
Global Management, LLC
Patrick M. Parmentier, CPA, Investor
Relations Manager
212-822-0472
pparmentier@apollolp.com
or
For
media inquiries regarding Apollo, please contact:
Rubenstein
Associates, Inc. for Apollo Global Management, LLC
Charles Zehren,
212-843-8590
czehren@rubenstein.com
Source: Apollo Global Management, LLC
Released August 2, 2012