10-Q: Quarterly report [Sections 13 or 15(d)]
Published on May 7, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026 OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
FOR THE TRANSITION PERIOD FROM TO
Commission File Number: 001-41197
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) (Zip Code)
(212 ) 515-3200
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company | Emerging growth company | ||||||||||||||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
As of May 5, 2026, there were 576,517,513 shares of the registrant’s common stock outstanding.
| TABLE OF CONTENTS | ||||||||
| PART I | ||||||||
| ITEM 1. | ||||||||
| ITEM 1A. | ||||||||
| ITEM 2. | ||||||||
| ITEM 3. | ||||||||
| ITEM 4. | ||||||||
| PART II | ||||||||
| ITEM 1. | ||||||||
| ITEM 1A. | ||||||||
| ITEM 2. | ||||||||
| ITEM 3. | ||||||||
| ITEM 4. | ||||||||
| ITEM 5. | ||||||||
| ITEM 6. | ||||||||
2
Forward-Looking Statements
This report may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 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 report, the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “target” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and variations of such words 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 inflation, interest rate fluctuations and market conditions generally, international trade barriers, domestic or international political developments and other geopolitical events, including geopolitical tensions and hostilities, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management’s assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene’s ability to maintain or improve financial strength ratings, the impact of Athene’s reinsurers failing to meet their assumed obligations, Athene’s ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, 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 annual report on Form 10-K filed with the United States Securities and Exchange Commission (“SEC”) on February 25, 2026 (the “2025 Annual Report”), as 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 report and in our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
Terms Used in This Report
In this report, references to “Apollo,” “we,” “us,” “our,” and the “Company” refer to Apollo Global Management, Inc. (“AGM”) and its subsidiaries unless the context requires otherwise. References to “AGM common stock” or “common stock” of the Company refer to shares of common stock, par value $0.00001 per share, of AGM and “Mandatory Convertible Preferred Stock” refers to the 6.75% Series A Mandatory Convertible Preferred Stock of AGM.
The use of any defined term in this report to mean more than one entity, person, security or other item collectively is solely for convenience of reference and in no way implies that such entities, persons, securities or other items are one indistinguishable group. For example, notwithstanding the use of the defined terms “Apollo,” “we,” “us,” “our,” and the “Company” in this report to refer to AGM and its subsidiaries, each subsidiary of AGM is a standalone legal entity that is separate and distinct from AGM and any of its other subsidiaries. Any Apollo entity (including any Athene entity) referenced herein is responsible for its own financial, contractual and legal obligations.
| Term or Acronym | Definition | ||||
| AAA | Apollo Aligned Alternatives Aggregator, L.P. | ||||
| AAA Lux | Apollo Aligned Alternatives Lux Aggregator, L.P. | ||||
| AAIA | Athene Annuity and Life Company | ||||
| AAM | Apollo Asset Management, Inc. (f/k/a Apollo Global Management, Inc. prior to the Mergers.) | ||||
| AARe | Athene Annuity Re Ltd., a Bermuda reinsurance subsidiary | ||||
| ABS | Asset-backed securities | ||||
| Accord+ | Apollo Accord+ Fund, L.P., together with its parallel funds and alternative investment vehicles | ||||
| Accord+ II | Apollo Accord+ II Fund, L.P., together with its parallel funds and alternative investment vehicles | ||||
| Accord I | Apollo Accord Master Fund, L.P., together with its feeder funds | ||||
| Accord II | Apollo Accord Master Fund II, L.P., together with its feeder funds | ||||
| Accord III | Apollo Accord Master Fund III, L.P., together with its feeder funds | ||||
| Accord III B | Apollo Accord Master Fund III B, L.P., together with its feeder funds | ||||
| Accord IV | Apollo Accord Fund IV, L.P., together with its parallel funds and alternative investment vehicles | ||||
3
| Accord V | Apollo Accord Fund V, L.P., together with its parallel funds and alternative investment vehicles | ||||
| Accord VI | Apollo Accord Fund VI, L.P., together with its parallel funds and alternative investment vehicles | ||||
| Accord VII | Apollo Accord Fund VII, L.P., together with its parallel funds and alternative investment vehicles | ||||
| Accord Funds | Accord I, Accord II, Accord III, Accord III B, Accord IV, Accord V, Accord VI and Accord VII | ||||
| Accord+ Funds | Accord+ and Accord+ II | ||||
| ACRA | ACRA 1 and ACRA 2 | ||||
| ACRA 1 | Athene Co-Invest Reinsurance Affiliate Holding Ltd., together with its subsidiaries | ||||
| ACRA 2 | Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd., together with its subsidiaries | ||||
| ADCF | Apollo Diversified Credit Fund | ||||
| ADIP | ADIP I and ADIP II | ||||
| ADIP I | Apollo/Athene Dedicated Investment Program (A), L.P., together with its parallel funds, a series of funds managed by Apollo including third-party capital that, through ACRA 1, invests alongside Athene in certain investments | ||||
| ADIP II | Apollo/Athene Dedicated Investment Program II, L.P., a fund managed by Apollo including third-party capital that, through ACRA 2, invests alongside Athene in certain investments | ||||
| Adjusted Net Income Shares Outstanding, or ANI Shares Outstanding | Consists of total shares of common stock outstanding, RSUs that participate in dividends, and shares of common stock assumed to be issuable upon the conversion of the shares of Mandatory Convertible Preferred Stock | ||||
| ADREF | Apollo Diversified Real Estate Fund | ||||
| ADS | Apollo Debt Solutions BDC | ||||
| AFS | Available-for-sale | ||||
| AIOF I | Apollo Infra Equity US Fund, L.P. and Apollo Infra Equity International Fund, L.P., including their feeder funds and alternative investment vehicles | ||||
| AIOF II | Apollo Infrastructure Opportunities Fund II, L.P., together with its parallel funds and alternative investment vehicles | ||||
| AIOF III | Apollo Infrastructure Opportunities Fund III, L.P., together with its parallel funds and alternative investment vehicles | ||||
| ALRe | Athene Life Re Ltd., a Bermuda reinsurance subsidiary | ||||
| Alternative investments | Alternative investments, including investment funds and certain VIEs, adjusted for reinsurance impacts and to include Athene's proportionate share of ACRA alternative investments based on its economic ownership | ||||
| AMH | Apollo Management Holdings, L.P., a Delaware limited partnership, that is an indirect subsidiary of AGM | ||||
| ANRP I | Apollo Natural Resources Partners, L.P., together with its alternative investment vehicles | ||||
| ANRP II | Apollo Natural Resources Partners II, L.P., together with its alternative investment vehicles | ||||
| ANRP III | Apollo Natural Resources Partners III, L.P., together with its parallel funds and alternative investment vehicles | ||||
| AOCI | Accumulated other comprehensive income (loss) | ||||
| AOG Units | Units of the Apollo Operating Group | ||||
| Apollo DAF | The donor-advised fund established by Apollo | ||||
| Apollo funds, our funds and references to the funds we manage | The funds (including the parallel funds and alternative investment vehicles of such funds), partnerships, accounts, including strategic investment accounts or “SIAs,” alternative asset companies and other entities for which subsidiaries of Apollo provide investment management or advisory services. | ||||
| Apollo Operating Group | (i) The entities through which we currently operate our asset management business and (ii) one or more entities formed for the purpose of, among other activities, holding certain of our gains or losses on our principal investments in the funds, which we refer to as our “principal investments.” | ||||
| Apollo TRA | The tax receivable agreement entered into by and among APO Corp., the Former Managing Partners, the Contributing Partners, and other parties thereto | ||||
| ARI | Apollo Commercial Real Estate Finance, Inc. | ||||
| ARIS | Apollo Realty Income Solutions, Inc. | ||||
4
| Assets Under Management, or AUM | The assets of the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our AUM equals the sum of: 1. the NAV, plus used or available leverage and/or capital commitments, or gross assets plus capital commitments, of the credit and certain equity funds, partnerships and accounts for which we provide investment management or advisory services, other than certain CLOs, CDOs, and certain perpetual capital vehicles, which have a fee-generating basis other than the mark-to-market value of the underlying assets; for certain perpetual capital vehicles in credit, gross asset value plus available financing capacity; 2. the fair value of the investments of equity and certain credit funds, partnerships and accounts Apollo manages or advises, plus the capital that such funds, partnerships and accounts are entitled to call from investors pursuant to capital commitments, plus portfolio level financings; 3. the gross asset value associated with the reinsurance investments of the portfolio company assets Apollo manages or advises; and 4. the fair value of any other assets that Apollo manages or advises for the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, plus unused credit facilities, including capital commitments to such funds, partnerships and accounts for investments that may require pre-qualification or other conditions before investment plus any other capital commitments to such funds, partnerships and accounts available for investment that are not otherwise included in the clauses above. Apollo’s AUM measure includes Assets Under Management for which Apollo charges either nominal or zero fees. Apollo’s AUM measure also includes assets for which Apollo does not have investment discretion, including certain assets for which Apollo earns only investment-related service fees, rather than management or advisory fees. Apollo’s definition of AUM is not based on any definition of Assets Under Management contained in its governing documents or in any management agreements of the funds Apollo manages. Apollo considers multiple factors for determining what should be included in its definition of AUM. Such factors include but are not limited to (1) Apollo’s ability to influence the investment decisions for existing and available assets; (2) Apollo’s ability to generate income from the underlying assets in the funds it manages; and (3) the AUM measures that Apollo uses internally or believes are used by other investment managers. Given the differences in the investment strategies and structures among other alternative investment managers, Apollo’s 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. Apollo’s calculation also differs from the manner in which its affiliates registered with the SEC report “Regulatory Assets Under Management” on Form ADV and Form PF in various ways. Apollo uses AUM, Gross capital deployment and Dry powder as performance measurements of its investment activities, as well as to monitor fund size in relation to professional resource and infrastructure needs. | ||||
| ASU | Accounting Standards Update | ||||
| Athene | Athene Holding Ltd. (“Athene Holding” or “AHL”, together with its subsidiaries, “Athene”), a leading financial services company specializing in retirement services that issues, reinsures and acquires retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs, and to which Apollo, through its consolidated subsidiary ISG, provides asset management and advisory services. | ||||
| Athora | Athora Holding Ltd. (“Athora Holding”, together with its subsidiaries, “Athora”), is a leading European savings and retirement services group focused on the traditional life and pensions market. Apollo, through ISGI, provides investment advisory services to Athora for certain of its assets. | ||||
| Atlas | An equity investment of AAA and refers to certain subsidiaries of Atlas Securitized Products Holdings LP | ||||
| AUM with Future Management Fee Potential | The committed uninvested capital portion of total AUM not currently earning management fees. The amount depends on the specific terms and conditions of each fund. | ||||
| AUSA | Athene USA Corporation | ||||
| Bermuda Capital | The capital of Athene's non-U.S. reinsurance subsidiaries as reported in the Bermuda statutory financial statements, adjusted to exclude deferred tax assets related to the enactment of the Government of Bermuda Corporate Income Tax Act 2023. Bermuda statutory financial statements apply U.S. statutory accounting principles for policyholder reserve liabilities, which Athene also subjects to U.S. cash flow testing requirements. There are certain differences between Bermuda statutory and U.S. statutory frameworks that result in Consolidated RBC being approximately 20 RBC points higher as of December 31, 2025. The primary driver of this difference is that Bermuda statutory financial statements require that assets assumed as part of a reinsurance transaction and any assets sold are recorded at their market value, without posting an interest maintenance reserve. | ||||
| Bermuda RBC | The risk-based capital ratio of Athene’s non-U.S. reinsurance subsidiaries calculated using Bermuda Capital and applying NAIC risk-based capital factors on an aggregate basis, excluding U.S. subsidiaries which are included within Athene’s U.S. RBC Ratio. | ||||
| BMA | Bermuda Monetary Authority | ||||
| Bridge | Bridge Investment Group Holdings Inc. | ||||
| Bridge funds | Funds, vehicles and accounts managed by subsidiaries of Bridge | ||||
| Bridge TRA | The tax receivable agreement with certain equity holders of Bridge | ||||
5
| Capital solutions fees and other, net | Primarily includes transaction fees earned by Apollo Capital Solutions (“ACS”) related to underwriting, structuring, arrangement and placement of debt and equity securities, and syndication for funds managed by Apollo, portfolio companies of funds managed by Apollo, and third parties. Capital solutions fees and other, net also includes advisory fees for the ongoing monitoring of portfolio operations, directors' fees, as well as fees and earnings related to property management activities. These fees also include certain offsetting amounts, including reductions in management fees related to a percentage of these fees recognized (“management fee offset”), and other additional revenue sharing arrangements, including with certain subsidiaries and other affiliates. | ||||
| CDO | Collateralized debt obligation | ||||
| Class A shares | Class A common stock, $0.00001 par value per share, of AAM prior to the Mergers. | ||||
| CLO | Collateralized loan obligation | ||||
| CMBS | Commercial mortgage-backed securities | ||||
| CML | Commercial mortgage loan | ||||
| Contributing Partners | Partners and their related parties (other than Messrs. Leon Black, Joshua Harris and Marc Rowan, our co-founders) who indirectly beneficially owned AOG units. | ||||
| Consolidated RBC | The consolidated risk-based capital ratio of Athene’s non-U.S. reinsurance and U.S. insurance subsidiaries calculated by aggregating U.S. RBC and Bermuda RBC, with immaterial adjustments for net assets at the holding company. | ||||
| Cost of funds | Cost of funds includes liability costs related to cost of crediting on deferred annuities, including, with respect to Athene's indexed annuities, option costs, and institutional costs related to institutional products, as well as other liability costs, but does not include the proportionate share of the ACRA cost of funds associated with the non-controlling interests. Other liability costs include DAC, DSI and VOBA amortization, certain market risk benefit costs, the cost of liabilities on products other than deferred annuities and institutional products, premiums, product charges, excluding market value adjustments, and certain other revenues. Athene includes the costs related to business added through assumed reinsurance transactions but excludes the costs on business related to ceded reinsurance transactions. Cost of funds is computed as the total liability costs divided by the average net invested assets for the relevant period, presented on an annualized basis for interim periods. | ||||
| Credit Strategies | Apollo Credit Strategies Master Fund Ltd., together with its feeder funds | ||||
| CS | Credit Suisse AG | ||||
| DAC | Deferred acquisition costs | ||||
| Deferred annuities | Fixed indexed annuities, annual reset annuities, multi-year guaranteed annuities and registered index-linked annuities | ||||
| Dry Powder | The amount of capital available for investment or reinvestment subject to the provisions of the applicable limited partnership agreements or other governing agreements of the funds, partnerships and accounts we manage. Dry powder excludes uncalled commitments which can only be called for fund fees and expenses and commitments from perpetual capital vehicles. | ||||
| DSI | Deferred sales inducement | ||||
| EPF Funds | Apollo European Principal Finance Fund, L.P., Apollo European Principal Finance Fund II (Dollar A), L.P., EPF III, and EPF IV, together with their parallel funds and alternative investment vehicles | ||||
| EPF III | Apollo European Principal Finance Fund III (Dollar A), L.P., together with its parallel funds and alternative investment vehicles | ||||
| EPF IV | Apollo European Principal Finance Fund IV (Dollar A), L.P., together with its parallel funds and alternative investment vehicles | ||||
| Equity Plan | Refers collectively to the Company’s 2019 Omnibus Equity Incentive Plan and the Company’s 2019 Omnibus Equity Incentive Plan for Estate Planning Vehicles. | ||||
| FABN | Funding agreement backed notes | ||||
| FABR | Funding agreement backed repurchase agreement | ||||
| FASB | Financial Accounting Standards Board | ||||
| FCI Funds | Financial Credit Investment I, L.P., Financial Credit Investment II, L.P., together with its feeder funds, Financial Credit Investment Fund III L.P., and Financial Credit Investment IV, L.P., together with its feeder funds | ||||
| Fee-Generating AUM | Fee-Generating AUM consists of assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services and on which we earn management fees, monitoring fees or other investment-related fees pursuant to management or other fee agreements on a basis that varies among the Apollo funds, partnerships and accounts. 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, also referred to as advisory fees, with respect to the structured portfolio company investments of the funds, partnerships and accounts we manage or advise, are generally based on the total value of such structured portfolio company investments, which normally includes leverage, less any portion of such total value that is already considered in Fee-Generating AUM. | ||||
6
| Fee Related Earnings, or FRE | Component of Segment Income that is used to assess the performance of the Asset Management segment. FRE is the sum of (i) management fees, (ii) capital solutions and other related fees, (iii) fee-related performance fees from indefinite term vehicles, that are measured and received on a recurring basis and not dependent on realization events of the underlying investments, excluding performance fees from Athene and performance fees from origination platforms dependent on capital appreciation, and (iv) other income, net, less (a) fee-related compensation, excluding equity-based compensation, (b) non-compensation expenses incurred in the normal course of business, (c) placement fees and (d) non-controlling interests in the management companies of certain funds the Company manages. | ||||
| FIA | Fixed indexed annuity, which is an insurance contract that earns interest at a crediting rate based on a specified index on a tax-deferred basis | ||||
| Fixed annuities | FIAs together with fixed rate annuities | ||||
| Former Managing Partners | Messrs. Leon Black, Joshua Harris and Marc Rowan collectively and, when used in reference to holdings of interests in Apollo or AP Professional Holdings, L.P. includes certain related parties of such individuals | ||||
| Freedom Parent Holdings | Freedom Parent Holdings, L.P. | ||||
| GDP | Gross Domestic Product | ||||
Gross capital deployment | The gross capital that has been invested by the funds and accounts we manage during the relevant period, but excludes certain investment activities primarily related to hedging and cash management functions at the firm. Gross capital deployment is not reduced or netted down by sales or refinancings, and takes into account leverage used by the funds and accounts we manage in gaining exposure to the various investments that they have made. | ||||
| GLWB | Guaranteed lifetime withdrawal benefit | ||||
| GMDB | Guaranteed minimum death benefit | ||||
| Gross IRR of accord series, ADIP funds and the European principal finance funds | The annualized return of a fund based on the actual timing of all cumulative fund cash flows before management fees, performance fees allocated to the general partner and certain other expenses. Calculations may include certain investors that do not pay fees. The terminal value is the net asset value as of the reporting date. Non-U.S. dollar denominated (“USD”) fund cash flows and residual values are converted to USD using the spot rate as of the reporting date. In addition, gross IRRs at the fund level will differ from those at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Gross IRR does not represent the return to any fund investor. | ||||
| Gross IRR of a traditional private equity or hybrid value fund | The cumulative investment-related cash flows (i) for a given investment for the fund or funds which made such investment, and (ii) for a given fund, in the relevant fund itself (and not any one investor in the fund), in each case, on the basis of the actual timing of investment inflows and outflows (for unrealized investments assuming disposition on March 31, 2026 or other date specified) aggregated on a gross basis quarterly, and the return is annualized and compounded before management fees, performance fees and certain other 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. In addition, gross IRRs at the fund level will differ from those at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Gross IRR does not represent the return to any fund investor. | ||||
| Gross IRR of infrastructure funds | The cumulative investment-related cash flows in the fund itself (and not any one investor in the fund), on the basis of the actual timing of cash inflows and outflows (for unrealized investments assuming disposition on March 31, 2026 or other date specified) starting on the date that each investment closes, and the return is annualized and compounded before management fees, performance fees, and certain other 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. Non-USD fund cash flows and residual values are converted to USD using the spot rate as of the reporting date. In addition, gross IRRs at the fund level will differ from those at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Gross IRR does not represent the return to any fund investor. | ||||
| HoldCo | Apollo Global Management, Inc. (f/k/a Tango Holdings, Inc.) | ||||
| HVF I | Apollo Hybrid Value Fund, L.P., together with its parallel funds and alternative investment vehicles | ||||
| HVF II | Apollo Hybrid Value Fund II, L.P., together with its parallel funds and alternative investment vehicles | ||||
| HVF III | Apollo Hybrid Value Fund III, L.P., together with its parallel funds and alternative investment vehicles | ||||
| Inflows | (i) At the individual strategy level, subscriptions, commitments, and other increases in available capital, such as acquisitions or leverage, net of inter-strategy transfers, and (ii) on an aggregate basis, the sum of inflows across the credit and equity investing strategies. | ||||
| IPO | Initial Public Offering | ||||
| ISG | Apollo Insurance Solutions Group LP | ||||
| ISGI | Refers collectively to Apollo Asset Management Europe LLP, a subsidiary of AAM (“AAME”) and Apollo Asset Management PC LLP, a wholly-owned subsidiary of AAME (“AAME PC”) | ||||
| Management Fee Offset | Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage of such advisory and transaction fees, net of applicable broken deal costs. | ||||
| Market risk benefits | Guaranteed lifetime withdrawal benefits and guaranteed minimum death benefits | ||||
7
| Mergers | Completion of the previously announced merger transactions pursuant to the Merger Agreement | ||||
| Merger Agreement | The Agreement and Plan of Merger dated as of March 8, 2021 by and among AAM, AGM, AHL, Blue Merger Sub, Ltd., a Bermuda exempted company, and Green Merger Sub, Inc., a Delaware corporation. | ||||
| Merger Date | January 1, 2022 | ||||
| MFIC | MidCap Financial Investment Corporation (f/k/a Apollo Investment Corporation or “AINV”) | ||||
| MidCap FinCo | MidCap FinCo LLC, together with its subsidiaries | ||||
| Modco | Modified coinsurance | ||||
| NAIC | National Association of Insurance Commissioners | ||||
| NAV | Net Asset Value | ||||
| Net invested assets | Represent the investments that directly back Athene's net reserve liabilities as well as surplus assets. Net invested assets include Athene’s (a) total investments on the condensed consolidated statements of financial condition, with available-for-sale securities, trading securities and mortgage loans at cost or amortized cost, excluding derivatives, (b) cash and cash equivalents and restricted cash, (c) investments in related parties, (d) accrued investment income, (e) VIE and VOE assets, liabilities and non-controlling interest adjustments, (f) net investment payables and receivables, (g) policy loans ceded (which offset the direct policy loans in total investments) and (h) an adjustment for the allowance for credit losses. Net invested assets exclude the derivative collateral offsetting the related cash positions. Athene includes the investments supporting assumed funds withheld and modco agreements and excludes the investments related to ceded reinsurance transactions in order to match the assets with the income received. Net invested assets include Athene’s economic ownership of ACRA investments but do not include the investments associated with the non-controlling interests. | ||||
| Net investment earned rate | Computed as income from Athene’s net invested assets, excluding the proportionate share of the ACRA net investment income associated with the non-controlling interests, divided by the average net invested assets for the relevant period, presented on an annualized basis for interim periods. | ||||
| Net investment spread | Net investment spread measures Athene’s investment performance plus its strategic capital management fees less its total cost of funds, presented on an annualized basis for interim periods. | ||||
| Net IRR of accord series, ADIP funds and the European principal finance funds | The annualized return of a fund after management fees, performance fees allocated to the general partner and certain other expenses, calculated on investors that pay such fees. The terminal value is the net asset value as of the reporting date. Non-USD fund cash flows and residual values are converted to USD using the spot rate as of the reporting date. In addition, net IRR at the fund level will differ from that at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Net IRR does not represent the return to any fund investor. | ||||
| Net IRR of a traditional private equity or the hybrid value funds | The gross IRR applicable to a fund, including returns for related parties which may not pay fees or performance fees, net of management fees, certain expenses (including interest incurred or earned by the fund itself) and realized performance fees all offset to the extent of interest income, and measures returns at the fund level on amounts that, if distributed, would be paid to investors of the fund. The timing of cash flows applicable to investments, management fees and certain expenses, may be adjusted for the usage of a fund’s subscription facility. To the extent that a 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 of such fund, thereby reducing the balance attributable to fund investors. In addition, net IRR at the fund level will differ from that at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Net IRR does not represent the return to any fund investor. | ||||
| Net IRR of infrastructure funds | The cumulative cash flows in a fund (and not any one investor in the fund), on the basis of the actual timing of cash inflows received from and outflows paid to investors of the fund (assuming the ending net asset value as of the reporting date or other date specified is paid to investors), excluding certain non-fee and non-performance fee bearing parties, and the return is annualized and compounded after management fees, performance fees, and certain other expenses (including interest incurred by the fund itself) and measures the returns to investors of the fund as a whole. Non-USD fund cash flows and residual values are converted to USD using the spot rate as of the reporting date. In addition, net IRR at the fund level will differ from that at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Net IRR does not represent the return to any fund investor. | ||||
| Net reserve liabilities | Represent Athene's policyholder and institutional liability obligations net of reinsurance and used to analyze the costs of its liabilities. Net reserve liabilities include Athene’s (a) interest sensitive contract liabilities, (b) future policy benefits, (c) net market risk benefits, (d) long-term repurchase obligations, (e) dividends payable to policyholders and (f) other policy claims and benefits, offset by reinsurance recoverable, excluding policy loans ceded. Net reserve liabilities include Athene’s economic ownership of ACRA reserve liabilities but do not include the reserve liabilities associated with the non-controlling interests. Net reserve liabilities are net of the ceded liabilities to third-party reinsurers as the costs of the liabilities are passed to such reinsurers and, therefore, Athene has no net economic exposure to such liabilities, assuming its reinsurance counterparties perform under the agreements. Net reserve liabilities include the underlying liabilities assumed through modco reinsurance agreements in order to match the liabilities with the expenses incurred. | ||||
8
| Non-Fee-Generating AUM | AUM that does not produce management fees or monitoring fees. This measure generally includes 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 interests; (iii) unused credit facilities; (iv) available commitments on those funds that generate management fees on invested capital; (v) structured portfolio company investments that do not generate monitoring fees; and (vi) the difference between gross asset and net asset value for those funds that earn management fees based on net asset value. | ||||
| NYC UBT | New York City Unincorporated Business Tax | ||||
Origination | Represents (i) capital that has been invested in new equity, debt or debt-like investments by Apollo's equity and credit strategies (whether purchased by funds and accounts managed by Apollo, or syndicated to third parties) where Apollo or one of Apollo's origination platforms has sourced, negotiated, or significantly affected the commercial terms of the investment; (ii) new capital pools formed by debt issuances, including CLOs; and (iii) net purchases of certain assets by the funds and accounts we manage that we consider to be private, illiquid, and hard to access assets and which the funds and accounts otherwise may not be able to meaningfully access. Origination generally excludes any issuance of debt or debt-like investments by the portfolio companies of the funds we manage. | ||||
| Other operating expenses within the Principal Investing segment | Expenses incurred in the normal course of business and includes allocations of non-compensation expenses related to managing the business. | ||||
| Other operating expenses within the Retirement Services segment | Expenses incurred in the normal course of business inclusive of compensation and non-compensation expenses, excluding the proportionate share of the ACRA operating expenses associated with the non-controlling interests. | ||||
| Payout annuities | Annuities with a current cash payment component, which consist primarily of single premium immediate annuities, supplemental contracts and structured settlements. | ||||
| Performance Fee-Eligible AUM | AUM that may eventually produce performance fees. All funds for which we are entitled to receive a performance fee allocation or incentive fee are included in Performance Fee-Eligible AUM, which consists of the following: (i) “Performance Fee-Generating AUM”, which refers to invested capital of the funds, partnerships and accounts we manage, advise, or to which we provide certain other investment-related services, that is currently above its hurdle rate or preferred return, and profit of such funds, partnerships and accounts is being allocated to, or earned by, the general partner in accordance with the applicable limited partnership agreements or other governing agreements; (ii) “AUM Not Currently Generating Performance Fees”, which refers to invested capital of the funds, partnerships and accounts we manage, advise, or to which we provide certain other investment-related services, that is currently below its hurdle rate or preferred return; and (iii) “Uninvested Performance Fee-Eligible AUM”, which refers to capital of the funds, partnerships and accounts we manage, advise, or to which we provide certain other investment-related services, that is available for investment or reinvestment subject to the provisions of applicable limited partnership agreements or other governing agreements, which capital is not currently part of the NAV or fair value of investments that may eventually produce performance fees allocable to, or earned by, the general partner. | ||||
| Perpetual capital | Assets under management of certain vehicles with an indefinite duration, which assets may only be withdrawn under certain conditions or subject to certain limitations, including satisfying required hold periods or percentage limits on the amounts that may be redeemed over a particular period. The investment management, advisory or other service agreements with our perpetual capital vehicles may be terminated under certain circumstances. | ||||
| Principal Investing Income, or PII | Component of Segment Income that is used to assess the performance of the Principal Investing segment. For the Principal Investing segment, PII is the sum of (i) realized performance fees, including certain realizations received in the form of equity, and (ii) realized investment income, less (x) realized principal investing compensation expense, excluding expense related to equity-based compensation, and (y) certain corporate compensation and non-compensation expenses. | ||||
| Principal investing compensation | Realized performance compensation, distributions related to investment income and dividends, and includes allocations of certain compensation expenses related to managing the business. | ||||
| Policy loan | A loan to a policyholder under the terms of, and which is secured by, a policyholder’s policy. | ||||
| Realized Value | All cash investment proceeds received by the relevant Apollo fund, including interest and dividends, but does not give effect to management fees, expenses, incentive compensation or performance fees to be paid by such Apollo fund. | ||||
| Redding Ridge | Redding Ridge Asset Management, LLC and its subsidiaries, which is a standalone, self-managed asset management business established in connection with risk retention rules that manages CLOs and retains the required risk retention interests. | ||||
| Redding Ridge Holdings | Redding Ridge Holdings LP | ||||
| Remaining Cost | Total Invested Capital, reduced for any return of capital proceeds received to date. | ||||
| RMBS | Residential mortgage-backed securities | ||||
| RML | Residential mortgage loan | ||||
| RSUs | Restricted share units | ||||
| SIA | Strategic investment account | ||||
9
| Spread Related Earnings, or SRE | Component of Segment Income that is used to assess the performance of the Retirement Services segment, excluding certain market volatility, which consists of investment gains (losses), net of offsets, and non-operating change in insurance liabilities and related derivatives, and certain expenses related to integration, restructuring, and equity-based compensation, as well as other items. For the Retirement Services segment, SRE equals the sum of (i) the net investment earnings on Athene’s net invested assets and (ii) management fees received on business managed for others, less (x) cost of funds, (y) operating expenses excluding equity-based compensation and (z) financing costs, including interest expense and preferred dividends, if any, paid to Athene preferred stockholders. | ||||
| Surplus assets | Assets in excess of Athene’s policyholder and institutional obligations, determined in accordance with the applicable domiciliary jurisdiction’s statutory accounting principles. | ||||
| S3 Equity and Hybrid Solutions | Apollo S3 Equity and Hybrid Solutions Fund, L.P. | ||||
| Total Invested Capital | The aggregate cash invested by the relevant Apollo fund and includes capitalized costs relating to investment activities, if any, but does not give effect to cash pending investment or available for reserves and excludes amounts, if any, invested on a financed basis with leverage facilities | ||||
| Total Value | The sum of the total Realized Value and Unrealized Value of investments | ||||
| Traditional private equity funds | Apollo Investment Fund I, L.P. (“Fund I”), AIF II, L.P. (“Fund II”), a mirrored investment account established to mirror Fund I and Fund II for investments in debt securities (“MIA”), Apollo Investment Fund III, L.P. (together with its parallel funds, “Fund III”), Apollo Investment Fund IV, L.P. (together with its parallel fund, “Fund IV”), Apollo Investment Fund V, L.P. (together with its parallel funds and alternative investment vehicles, “Fund V”), Apollo Investment Fund VI, L.P. (together with its parallel funds and alternative investment vehicles, “Fund VI”), Apollo Investment Fund VII, L.P. (together with its parallel funds and alternative investment vehicles, “Fund VII”), Apollo Investment Fund VIII, L.P. (together with its parallel funds and alternative investment vehicles, “Fund VIII”), Apollo Investment Fund IX, L.P. (together with its parallel funds and alternative investment vehicles, “Fund IX”) and Apollo Investment Fund X, L.P. (together with its parallel funds and alternative investment vehicles, “Fund X”). | ||||
| U.S. GAAP | Generally accepted accounting principles in the United States of America | ||||
| U.S. RBC | The CAL RBC ratio for AAIA, Athene's U.S. insurance company | ||||
| U.S. Treasury | United States Department of the Treasury | ||||
| Unrealized Value | The fair value consistent with valuations determined in accordance with GAAP, for investments not yet realized and may include payments in kind, accrued interest and dividends receivable, if any, and before the effect of certain taxes. In addition, amounts include committed and funded amounts for certain investments. | ||||
| Venerable | Venerable Holdings, Inc., together with its subsidiaries | ||||
| VIAC | Venerable Insurance and Annuity Company | ||||
| VIE | Variable interest entity | ||||
| Vintage Year | The year in which a fund’s final capital raise occurred, or, for certain funds, the year of a fund’s effective date or the year in which a fund’s investment period commences pursuant to its governing agreements. | ||||
| VOBA | Value of business acquired | ||||
| VOE | Voting interest entity | ||||
| WACC | Weighted average cost of capital | ||||
10
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Index to Condensed Consolidated Financial Statements (unaudited)
APOLLO GLOBAL MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
| (In millions, except share data) | March 31, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Asset Management | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash and cash equivalents | |||||||||||
| Investments | |||||||||||
| Assets of consolidated variable interest entities | |||||||||||
| Cash and cash equivalents | |||||||||||
| Investments | |||||||||||
| Due from related parties | |||||||||||
| Other assets | |||||||||||
| Due from related parties | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Retirement Services | |||||||||||
| Cash and cash equivalents | |||||||||||
| Restricted cash and cash equivalents | |||||||||||
| Investments | |||||||||||
| Investments in related parties | |||||||||||
| Assets of consolidated variable interest entities | |||||||||||
| Cash and cash equivalents | |||||||||||
| Investments | |||||||||||
| Other assets | |||||||||||
| Reinsurance recoverable | |||||||||||
| Deferred acquisition costs, deferred sales inducements and value of business acquired | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| (Continued) | |||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements. | |||||||||||
12
APOLLO GLOBAL MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
| (In millions, except share data) | March 31, 2026 | December 31, 2025 | |||||||||
| Liabilities, Redeemable non-controlling interests and Equity | |||||||||||
| Liabilities | |||||||||||
| Asset Management | |||||||||||
| Accounts payable, accrued expenses, and other liabilities | $ | $ | |||||||||
| Due to related parties | |||||||||||
| Debt | |||||||||||
| Liabilities of consolidated variable interest entities | |||||||||||
Accounts payable, accrued expenses, and other liabilities | |||||||||||
| Retirement Services | |||||||||||
| Interest sensitive contract liabilities | |||||||||||
| Future policy benefits | |||||||||||
| Market risk benefits | |||||||||||
| Debt | |||||||||||
| Payables for collateral on derivatives and securities to repurchase | |||||||||||
| Other liabilities | |||||||||||
| Liabilities of consolidated variable interest entities | |||||||||||
| Other liabilities | |||||||||||
| Total Liabilities | |||||||||||
Commitments and Contingencies (note 17) | |||||||||||
| Redeemable non-controlling interests | |||||||||||
| Redeemable non-controlling interests | |||||||||||
| Equity | |||||||||||
Mandatory Convertible Preferred Stock, | |||||||||||
Common Stock, $ | |||||||||||
| Additional paid in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive income (loss) | ( | ( | |||||||||
| Total Apollo Global Management, Inc. Stockholders’ Equity | |||||||||||
| Non-controlling interests | |||||||||||
| Total Equity | |||||||||||
| Total Liabilities, Redeemable non-controlling interests and Equity | $ | $ | |||||||||
| (Concluded) | |||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements. | |||||||||||
13
APOLLO GLOBAL MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three months ended March 31, | |||||||||||
| (In millions, except per share data) | 2026 | 2025 | |||||||||
| Revenues | |||||||||||
| Asset Management | |||||||||||
| Management fees | $ | $ | |||||||||
| Advisory and transaction fees, net | |||||||||||
| Investment income (loss) | ( | ||||||||||
| Incentive fees | |||||||||||
| Property management, development and other fees | |||||||||||
| Retirement Services | |||||||||||
| Premiums | |||||||||||
| Product charges | |||||||||||
| Net investment income | |||||||||||
| Investment related gains (losses) | ( | ( | |||||||||
| Revenues of consolidated variable interest entities | |||||||||||
| Other revenues | |||||||||||
| Total Revenues | |||||||||||
| Expenses | |||||||||||
| Asset Management | |||||||||||
| Compensation and benefits | |||||||||||
| Interest expense | |||||||||||
| General, administrative and other | |||||||||||
| Retirement Services | |||||||||||
| Interest sensitive contract benefits | |||||||||||
| Future policy and other policy benefits | |||||||||||
| Market risk benefits remeasurement (gains) losses | |||||||||||
| Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired | |||||||||||
| Policy and other operating expenses | |||||||||||
| Total Expenses | |||||||||||
Other income (loss) – Asset Management | |||||||||||
| Net gains (losses) from investment activities | ( | ( | |||||||||
| Net gains (losses) from investment activities of consolidated variable interest entities | ( | ||||||||||
| Other income (loss), net | ( | ||||||||||
| Total Other income (loss) | ( | ( | |||||||||
| Income (loss) before income tax (provision) benefit | |||||||||||
| Income tax (provision) benefit | ( | ( | |||||||||
| Net income (loss) | ( | ||||||||||
| Net (income) loss attributable to non-controlling interests | ( | ( | |||||||||
| Net income (loss) attributable to Apollo Global Management, Inc. | ( | ||||||||||
| Preferred stock dividends | ( | ( | |||||||||
| Net income (loss) attributable to Apollo Global Management, Inc. common stockholders | $ | ( | $ | ||||||||
| Earnings (loss) per share | |||||||||||
Net income (loss) attributable to common stockholders – Basic | $ | ( | $ | ||||||||
Net income (loss) attributable to common stockholders – Diluted | $ | ( | $ | ||||||||
| Weighted average shares outstanding – Basic | |||||||||||
| Weighted average shares outstanding – Diluted | |||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements. | |||||||||||
14
APOLLO GLOBAL MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Net income (loss) | $ | ( | $ | ||||||||
| Other comprehensive income (loss), before tax | |||||||||||
| Unrealized investment gains (losses) on available-for-sale securities | ( | ||||||||||
| Unrealized gains (losses) on hedging instruments | |||||||||||
| Remeasurement gains (losses) on future policy benefits related to discount rate | ( | ||||||||||
| Remeasurement gains (losses) on market risk benefits related to credit risk | |||||||||||
| Foreign currency translation and other adjustments | ( | ||||||||||
| Other comprehensive income (loss), before tax | ( | ||||||||||
| Income tax provision (benefit) related to other comprehensive income (loss) | ( | ||||||||||
| Other comprehensive income (loss) | ( | ||||||||||
| Comprehensive income (loss) | ( | ||||||||||
| Comprehensive (income) loss attributable to non-controlling interests | ( | ( | |||||||||
| Comprehensive income (loss) attributable to Apollo Global Management, Inc. | $ | ( | $ | ||||||||
See accompanying notes to the unaudited condensed consolidated financial statements. | |||||||||||
15
APOLLO GLOBAL MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
| For the Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Apollo Global Management, Inc. Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except share data) | Common Stock | Series A Mandatory Convertible Preferred Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Apollo Global Management, Inc. Stockholders’ Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Capital increase related to equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Capital contributions | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Dividends/distributions | — | ( | — | ( | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Payments related to issuances of common stock for equity-based awards | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock | ( | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Consolidation/deconsolidation of VIEs | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Issuance of warrants | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock related to equity transactions | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Accretion of redeemable non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock to donor-advised fund | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Other changes in equity of non-controlling interests | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Apollo Global Management, Inc. Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except share data) | Common Stock | Series A Mandatory Convertible Preferred Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Apollo Global Management, Inc. Stockholders’ Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Capital increase related to equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Capital contributions | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Dividends/distributions | — | ( | — | ( | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Payments related to issuances of common stock for equity-based awards | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock | ( | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Stock option and warrant exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Other changes in equity of non-controlling interests | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2026 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||
16
APOLLO GLOBAL MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income (loss) | $ | ( | $ | ||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Equity-based compensation | |||||||||||
| Net investment income | ( | ( | |||||||||
| Net recognized (gains) losses on investments and derivatives | |||||||||||
| Depreciation and amortization | |||||||||||
| Net amortization (accretion) of net investment premiums, discount and other | ( | ( | |||||||||
| Policy acquisition costs deferred | ( | ( | |||||||||
| Other non-cash amounts included in net income (loss), net | ( | ||||||||||
| Changes in consolidation | ( | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Purchases of investments by funds and VIEs | ( | ( | |||||||||
| Proceeds from sale of investments by funds and VIEs | |||||||||||
| Interest sensitive contract liabilities | |||||||||||
| Future policy benefits, market risk benefits and reinsurance recoverable | ( | ( | |||||||||
| Other assets and liabilities, net | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash Flows from Investing Activities | |||||||||||
| Purchases of investments and contributions to equity method investments | ( | ( | |||||||||
| Purchases of available-for-sale securities | ( | ( | |||||||||
| Purchases of mortgage loans | ( | ( | |||||||||
| Purchases of investment funds | ( | ( | |||||||||
| Purchases of U.S. Treasury securities | ( | ( | |||||||||
| Purchases of derivatives instruments and other investments | ( | ( | |||||||||
| Sales, maturities and repayments of investments and distributions from equity method investments | |||||||||||
| Other investing activities, net | |||||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Issuance of debt | |||||||||||
| Repayment of debt | ( | ( | |||||||||
| Repurchase of common stock | ( | ( | |||||||||
| Common stock dividends | ( | ( | |||||||||
| Preferred stock dividends | ( | ( | |||||||||
| Distributions paid to non-controlling interests | ( | ( | |||||||||
| Contributions from non-controlling interests | |||||||||||
| Deposits on investment-type policies and contracts | |||||||||||
| Withdrawals on investment-type policies and contracts | ( | ( | |||||||||
| Net change in cash collateral posted for derivative transactions and securities to repurchase | ( | ( | |||||||||
| Other financing activities, net | ( | ( | |||||||||
| Net cash provided by financing activities | |||||||||||
| (Continued) | |||||||||||
17
APOLLO GLOBAL MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
| Net increase (decrease) in cash and cash equivalents, restricted cash and cash held at consolidated variable interest entities | ( | ||||||||||
| Cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalents held at consolidated variable interest entities, beginning of period | |||||||||||
| Cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalents held at consolidated variable interest entities, end of period | $ | $ | |||||||||
| Supplemental Disclosure of Cash Flow Information | |||||||||||
| Cash paid (refunded) for taxes | $ | ( | $ | ||||||||
| Cash paid for interest | |||||||||||
| Non-cash transactions | |||||||||||
| Non-cash financing activities | |||||||||||
| Asset Management and Other | |||||||||||
| Capital increases related to equity-based compensation | |||||||||||
| Issuance of warrants | |||||||||||
| Issuance of restricted shares | |||||||||||
| Issuance of common stock to donor-advise fund | |||||||||||
| Retirement Services | |||||||||||
| Deposits on investment-type policies and contracts through reinsurance agreements, net assumed (ceded) | ( | ( | |||||||||
| Withdrawals on investment-type policies and contracts through reinsurance agreements, net assumed (ceded) | |||||||||||
Reconciliation of cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalents held at consolidated variable interest entities to the condensed consolidated Statements of Financial Condition: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash and cash equivalents | |||||||||||
| Cash and cash equivalents held at consolidated variable interest entities | |||||||||||
| Total cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalents held at consolidated variable interest entities | $ | $ | |||||||||
| (Concluded) | |||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements. | |||||||||||
18
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Organization
Apollo Global Management, Inc. together with its consolidated subsidiaries (collectively, “Apollo” or the “Company”) is a high-growth, global alternative asset manager and a retirement services provider. Apollo’s asset management business focuses on two investing strategies: credit and equity. Through its asset management business, Apollo raises, invests and manages funds, accounts and other vehicles, on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. Apollo’s retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products for the increasing number of individuals and institutions seeking to fund retirement needs.
Acquisition of Bridge
On September 2, 2025 (the “Acquisition Date”), Apollo completed the previously announced acquisition of Bridge in an all-stock transaction. As a result, Bridge became a consolidated subsidiary of AAM. Bridge’s results are included in the condensed consolidated financial statements commencing from the Acquisition Date.
2. Summary of Significant Accounting Policies
Basis of Presentation and Consolidation
The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and the SEC’s rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Certain disclosures included in the annual audited financial statements have been condensed or omitted as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the annual audited financial statements included in our 2025 Annual Report.
The results of the Company and its subsidiaries are presented on a consolidated basis. Any ownership interest other than the Company’s interest in its subsidiaries is reflected as a non-controlling interest. Intercompany accounts and transactions have been eliminated. Management believes it has made all necessary adjustments (consisting only of normal recurring items) so that the condensed consolidated financial statements are presented fairly and that any estimates made are reasonable and prudent. Certain reclassifications have been made to previously reported amounts to conform to the current period’s presentation.
Deferred Revenue
19
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Recently Issued Accounting Pronouncements
Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (ASU 2024-03)
In November 2024, the FASB issued guidance that requires disaggregation of certain expense captions into specified categories in disclosures within the notes to the financial statements. The ASU requires tabular presentation of each relevant expense caption on the face of the income statement including employee compensation, depreciation, intangible asset amortization, and certain other expenses, when applicable.
The guidance is mandatorily effective for the Company for fiscal years beginning after December 15, 2026, including interim periods therein; early adoption is permitted. The Company is currently evaluating the impact of the new pronouncement on its consolidated financial statements.
Business Combinations and Consolidation (ASU 2025-03)
In May 2025, the FASB issued guidance clarifying how to identify the accounting acquirer in business combinations involving variable interest entities. The ASU requires an assessment of control and economic interests to determine the acquirer for consolidation purposes.
The guidance is mandatorily effective for the Company for fiscal years beginning after December 15, 2026, including interim periods therein; early adoption is permitted. The Company is currently evaluating the impact of the new pronouncement on its consolidated financial statements.
Compensation – Stock Compensation and Revenue from Contracts with Customers (ASU 2025-04)
In June 2025, the FASB issued guidance clarifying the accounting for share-based consideration payable to customers, specifically addressing when such payments should be classified as stock compensation expense versus a reduction of revenue.
The guidance is mandatorily effective for the Company for fiscal years beginning after December 15, 2026, including interim periods therein; early adoption is permitted. The Company is currently evaluating the impact of the new pronouncement on its consolidated financial statements.
Intangibles – Goodwill and Other – Internal-Use Software (ASU 2025-06)
In September 2025, the FASB issued guidance providing targeted improvements to the accounting for internal-use software. The ASU simplifies accounting for internal-use software by eliminating references to specific development project stages and clarifies the threshold entities should apply to begin capitalizing costs.
The guidance is mandatorily effective for the Company for fiscal years beginning after December 15, 2027, including interim periods therein; early adoption is permitted. The Company is currently evaluating the impact of the new pronouncement on its consolidated financial statements.
Derivatives and Hedging and Revenue from Contracts with Customers (ASU 2025-07)
In September 2025, the FASB issued amendments to refine the scope of derivatives within the derivatives guidance by excluding certain non-exchange-traded contracts for which settlement is based on operations or activities specific to a party, unless settlement involves a market-based variable or a financial instrument. The updates also clarify that share-based non-cash consideration from a customer in a revenue contract should be accounted for under revenue recognition guidance until the entity’s right to receive or retain the consideration becomes unconditional.
The guidance is mandatorily effective for the Company for fiscal years beginning after December 15, 2026, including interim periods therein; early adoption is permitted. The Company is currently evaluating the impact of the new pronouncement on its consolidated financial statements.
20
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Derivatives and Hedging – Hedge Accounting Improvements (ASU 2025-09)
In November 2025, the FASB issued guidance amending certain aspects of the hedge accounting guidance and to address several incremental hedge accounting issues arising from the global reference rate reform initiative. The objective of this ASU is to more closely align hedge accounting with the economics of an entity’s risk management activities.
The guidance is mandatorily effective for the Company for fiscal years beginning after December 15, 2026, including interim periods therein; early adoption is permitted. The Company is currently evaluating the impact of the new pronouncement on its consolidated financial statements.
Interim Reporting (ASU 2025-11)
In December 2025, the FASB issued amendments to improve the guidance in Accounting Standards Codification (“ASC”) 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. The amendments are not intended to change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements.
The guidance is mandatorily effective for the Company for interim reporting periods within annual reporting periods beginning after December 15, 2027; early adoption is permitted. The Company is currently evaluating the impact of the new pronouncement on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
Income Taxes – Improvements to Income Tax Disclosures (ASU 2023-09)
In December 2023, the FASB made amendments to update disclosures on income taxes including rate reconciliation, income taxes paid, and certain amendments on disaggregation by federal, state, and foreign taxes, as relevant.
The Company adopted the guidance for the annual reporting period ended December 31, 2025, and there was no impact on the condensed consolidated financial statements in interim periods upon adoption.
21
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. Business Combination
On September 2, 2025, Apollo completed the previously announced acquisition of Bridge in an all-stock transaction. As a result, Bridge became a consolidated subsidiary of AAM.
Under the terms of the agreement governing the Bridge acquisition, each share of Bridge Class A common stock and each Bridge Investment Group Holdings LLC (“Bridge LLC”) Class A common unit was converted into 0.07081 shares of common stock of AGM and cash paid in lieu of fractional shares. Additionally, each share of Bridge Class B common stock was converted into 0.00006 shares of common stock of AGM and cash paid in lieu of fractional shares. The purchase price was as follows:
| (In millions, except share price data and exchange ratio) | |||||
| Bridge Class A common stock purchased | |||||
| Bridge Class B common stock purchased | |||||
| Bridge LLC Class A common units purchased | |||||
| Exchange ratio for Class A common stock and Class A common units | |||||
| Exchange ratio for Class B common stock | |||||
| Shares of AGM common stock issued in exchange | |||||
| AGM common stock closing price | $ | ||||
| Value of AGM common stock issued in exchange | $ | ||||
Fair value of estimated equity instruments assumed1 | |||||
| Purchase of certain non-controlling interests | |||||
| Total consideration | |||||
| Non-controlling interest | |||||
| Total Bridge equity value | $ | ||||
1 All outstanding Bridge equity awards were converted into AGM equity awards, of which $ | |||||
The consideration transferred is subject to customary post-closing adjustments, which could affect the preliminary goodwill recognized. The Bridge acquisition was accounted for as a business combination. The consideration was allocated to Bridge’s assets acquired and liabilities assumed based on estimates of their fair values as of the Acquisition Date.
Adjustments to provisional amounts, if any, will be recognized in the period in which they are identified and reflected as if the accounting had been completed at the Acquisition Date. The effect on earnings of changes in amortization or other income effects, if any, as a result of any change to the provisional amounts, will be recorded in the financial statements for the period in which such change occurs, calculated as if the accounting had been completed at the Acquisition Date. The purchase price allocation is expected to be finalized as soon as practicable, but no later than one year from the Acquisition Date.
Goodwill of $1.6 billion was recognized within the Asset Management segment and is primarily attributable to the assembled workforce, enhanced origination capabilities and the scale and synergies that can be achieved subsequent to the Bridge acquisition. A majority of the goodwill recognized is expected to be deductible for tax purposes.
22
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table summarizes the fair value amounts recognized for the assets acquired and liabilities assumed and resulting goodwill as of the Acquisition Date:
| (In millions) | Fair Value and Goodwill Calculation | ||||
| Total consideration | $ | ||||
| Total Value to Allocate | |||||
| Cash and cash equivalents | |||||
| Restricted cash and cash equivalents | |||||
| Investments | |||||
| Due from related parties | |||||
| Other assets | |||||
| Estimated fair value of total assets acquired, excluding goodwill | |||||
| Accounts payable, accrued expenses, and other liabilities | |||||
| Due to related parties | |||||
| Debt | |||||
| Estimated fair value of total liabilities assumed | |||||
| Estimated fair value of net assets acquired, excluding goodwill | |||||
| Non-controlling interests | |||||
| Estimated fair value of net assets acquired less non-controlling interests, excluding goodwill | ( | ||||
| Goodwill attributable to the Bridge acquisition | $ | ||||
Included within the above are provisional amounts based on the availability of data as of the date these condensed consolidated financial statements were issued for certain investments, deferred tax liabilities included within accounts payable, accrued expenses, and other liabilities and the Bridge TRA within due to related parties. Adjustments to provisional amounts will be made as described above.
The Company performed a valuation of the acquired investments and identifiable intangibles using methodologies consistent with those described in note 2 of the consolidated financial statements included in our 2025 Annual Report and note 7 herein.
Identifiable intangible assets
The identifiable intangible assets are included in other assets on the condensed consolidated statements of financial condition and summarized as follows:
| Management Contracts | Trade Name | |||||||
| These assets are valued using the multi-period excess earnings method, which derives value based on the present value of the cash flow attributable to the management contracts, less returns for contributory assets. Amortization of these assets is on a straight-line basis. | This represents the Bridge trade name and was valued using the relief-from-royalty method considering publicly available third-party trade name royalty rates as well as expected premiums generated by the use of the trade name over its anticipated life. Amortization of this asset is on a straight-line basis. | |||||||
The fair value and weighted average estimated useful lives of the identifiable intangible assets acquired in the Bridge acquisition consist of the following:
Fair value (in millions) | Average useful life (in years) | ||||||||||
| Management Contracts | $ | ||||||||||
| Trade Name | |||||||||||
| Total | $ | ||||||||||
23
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Pro Forma Financial Information
Unaudited pro forma financial information for the three months ended March 31, 2025 are presented below. Pro forma financial information presented does not include adjustments to reflect any potential revenue synergies or cost savings that may be achievable in connection with the Bridge acquisition and assumes it occurred as of January 1, 2024. The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of future operations or results had the acquisition been completed as of January 1, 2024.
| Three months ended March 31, | |||||
| (In millions) | 2025 | ||||
| Total Revenues | $ | ||||
| Net income attributable to Apollo Global Management, Inc. | |||||
Amounts above reflect certain pro forma adjustments that were directly attributable to the Bridge acquisition. These adjustments include the following:
•the elimination of historical amortization of Bridge’s intangibles and the additional amortization of intangibles measured at fair value as of the Acquisition Date;
•adjustments reflecting the purchase of all Bridge LLC Class A common units and certain other non-controlling interests in subsidiaries; and
•adjustments reflecting the transaction costs.
4. Investments
The following table outlines the Company’s investments:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Asset Management | |||||||||||
| Investments, at fair value | $ | $ | |||||||||
| Equity method investments | |||||||||||
| Performance allocations | |||||||||||
| Other investments | |||||||||||
Total Investments – Asset Management | |||||||||||
Retirement Services | |||||||||||
| AFS securities, at fair value | |||||||||||
| Trading securities, at fair value | |||||||||||
| Equity securities, at fair value | |||||||||||
| Mortgage loans, at fair value | |||||||||||
| Investment funds | |||||||||||
| Policy loans | |||||||||||
| Funds withheld at interest | |||||||||||
| Short-term investments | |||||||||||
| Other investments | |||||||||||
Total Investments, including related parties – Retirement Services | |||||||||||
| Total Investments | $ | $ | |||||||||
24
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Asset Management
Net Gains (Losses) from Investment Activities
The following outlines realized and net change in unrealized gains (losses) reported in net gains (losses) from investment activities:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Realized gains (losses) on sales of investments, net | $ | ( | $ | ( | |||||||
| Net change in unrealized gains (losses) due to changes in fair value | ( | ( | |||||||||
| Net gains (losses) from investment activities | $ | ( | $ | ( | |||||||
Performance Allocations
Performance allocations receivable and those of consolidated VIEs are recorded within investments and investments of consolidated VIEs, respectively, in the condensed consolidated statements of financial condition. The following table presents the performance allocations:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Performance allocations | $ | $ | |||||||||
| Performance allocations – consolidated VIEs | |||||||||||
| Total performance allocations | $ | $ | |||||||||
The table below provides a roll forward of the performance allocations balance:
| (In millions) | Total | ||||
Total performance allocations, January 1, 2026 | $ | ||||
| Change in fair value of funds | |||||
| Fund distributions to the Company | ( | ||||
Total performance allocations, March 31, 2026 | $ | ||||
The change in fair value of funds excludes the general partner obligation to return previously distributed performance allocations, which is recorded in due to related parties in the condensed consolidated statements of financial condition.
The timing of the payment of performance allocations due to the general partner or investment manager varies depending on the terms of the applicable fund agreements. Generally, performance allocations with respect to the equity funds and certain credit funds we manage are payable and are distributed to the fund’s general partner upon realization of an investment if the fund’s cumulative returns are in excess of the preferred return.
25
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Retirement Services
AFS Securities
The following table represents the amortized cost, allowance for credit losses, gross unrealized gains and losses and fair value of Athene’s AFS investments by asset type:
| March 31, 2026 | |||||||||||||||||||||||||||||
| (In millions) | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||
| U.S. government and agencies | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
| U.S. state, municipal and political subdivisions | ( | ||||||||||||||||||||||||||||
| Foreign governments | ( | ||||||||||||||||||||||||||||
| Corporate | ( | ( | |||||||||||||||||||||||||||
| CLO | ( | ||||||||||||||||||||||||||||
| ABS | ( | ( | |||||||||||||||||||||||||||
| CMBS | ( | ( | |||||||||||||||||||||||||||
| RMBS | ( | ( | |||||||||||||||||||||||||||
| Total AFS securities | ( | ( | |||||||||||||||||||||||||||
| AFS securities – related parties | |||||||||||||||||||||||||||||
| Corporate | ( | ||||||||||||||||||||||||||||
| CLO | ( | ||||||||||||||||||||||||||||
| ABS | ( | ( | |||||||||||||||||||||||||||
| CMBS | |||||||||||||||||||||||||||||
| Total AFS securities – related parties | ( | ( | |||||||||||||||||||||||||||
| Total AFS securities, including related parties | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| (In millions) | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||
| U.S. government and agencies | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
| U.S. state, municipal and political subdivisions | ( | ||||||||||||||||||||||||||||
| Foreign governments | ( | ||||||||||||||||||||||||||||
| Corporate | ( | ( | |||||||||||||||||||||||||||
| CLO | ( | ||||||||||||||||||||||||||||
| ABS | ( | ( | |||||||||||||||||||||||||||
| CMBS | ( | ( | |||||||||||||||||||||||||||
| RMBS | ( | ( | |||||||||||||||||||||||||||
| Total AFS securities | ( | ( | |||||||||||||||||||||||||||
| AFS securities – related parties | |||||||||||||||||||||||||||||
| Corporate | ( | ||||||||||||||||||||||||||||
| CLO | ( | ||||||||||||||||||||||||||||
| ABS | ( | ( | |||||||||||||||||||||||||||
| CMBS | ( | ||||||||||||||||||||||||||||
| Total AFS securities – related parties | ( | ( | |||||||||||||||||||||||||||
| Total AFS securities, including related parties | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
26
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The amortized cost and fair value of AFS securities, including related parties, are shown by contractual maturity below:
| March 31, 2026 | |||||||||||
| (In millions) | Amortized Cost | Fair Value | |||||||||
| AFS securities | |||||||||||
| Due in one year or less | $ | $ | |||||||||
| Due after one year through five years | |||||||||||
| Due after five years through ten years | |||||||||||
| Due after ten years | |||||||||||
| CLO, ABS, CMBS and RMBS | |||||||||||
| Total AFS securities | |||||||||||
| AFS securities – related parties | |||||||||||
| Due in one year or less | |||||||||||
| Due after one year through five years | |||||||||||
| Due after five years through ten years | |||||||||||
| Due after ten years | |||||||||||
| CLO, ABS and CMBS | |||||||||||
| Total AFS securities – related parties | |||||||||||
| Total AFS securities, including related parties | $ | $ | |||||||||
Actual maturities can differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Unrealized Losses on AFS Securities
The following summarizes the fair value and gross unrealized losses for AFS securities, including related parties, for which an allowance for credit losses has not been recorded, aggregated by asset type and length of time the fair value has remained below amortized cost:
| March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| (In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||
| U.S. government and agencies | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
| U.S. state, municipal and political subdivisions | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Foreign governments | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Corporate | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CLO | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| RMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Total AFS securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
| AFS securities – related parties | |||||||||||||||||||||||||||||||||||
| Corporate | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CLO | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CMBS | |||||||||||||||||||||||||||||||||||
| Total AFS securities – related parties | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Total AFS securities, including related parties | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
27
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| (In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||
| U.S. government and agencies | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
| U.S. state, municipal and political subdivisions | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Foreign governments | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Corporate | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CLO | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| RMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Total AFS securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
| AFS securities – related parties | |||||||||||||||||||||||||||||||||||
| Corporate | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CLO | ( | ( | ( | ||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ||||||||||||||||||||||||||||||||
| CMBS | ( | ( | |||||||||||||||||||||||||||||||||
| Total AFS securities – related parties | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Total AFS securities, including related parties | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
The following summarizes the number of AFS securities that were in an unrealized loss position, including related parties, for which an allowance for credit losses has not been recorded:
| March 31, 2026 | |||||||||||
| Unrealized Loss Position | Unrealized Loss Position 12 Months or More | ||||||||||
| AFS securities | |||||||||||
| AFS securities – related parties | |||||||||||
The unrealized losses on AFS securities can primarily be attributed to changes in market interest rates since acquisition of the securities. Athene did not recognize the unrealized losses in income, unless as required for hedge accounting, as it intends to hold these securities and it is not more likely than not it will be required to sell a security before the recovery of its amortized cost.
Allowance for Credit Losses
The following table summarizes the activity in the allowance for credit losses for AFS securities by asset type:
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||
| Additions | Reductions | ||||||||||||||||||||||||||||
| (In millions) | Beginning balance | Initial credit losses | Securities sold during the period | Additions (reductions) to previously impaired securities | Ending balance | ||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||
| Corporate | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| ABS | |||||||||||||||||||||||||||||
| CMBS | |||||||||||||||||||||||||||||
| RMBS | ( | ||||||||||||||||||||||||||||
| Total AFS securities | ( | ||||||||||||||||||||||||||||
| AFS securities – related parties, ABS | |||||||||||||||||||||||||||||
| Total AFS securities, including related parties | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
28
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||
| Additions | Reductions | ||||||||||||||||||||||||||||
| (In millions) | Beginning balance | Initial credit losses | Securities sold during the period | Additions (reductions) to previously impaired securities | Ending balance | ||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||
| Corporate | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
| ABS | ( | ||||||||||||||||||||||||||||
| CMBS | |||||||||||||||||||||||||||||
| RMBS | ( | ||||||||||||||||||||||||||||
| Total AFS securities | ( | ||||||||||||||||||||||||||||
| AFS securities – related parties, ABS | |||||||||||||||||||||||||||||
| Total AFS securities, including related parties | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Net Investment Income
Net investment income by asset class consists of the following:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| AFS securities | $ | $ | |||||||||
| Trading securities | |||||||||||
| Equity securities | |||||||||||
| Mortgage loans | |||||||||||
| Investment funds | ( | ||||||||||
| Funds withheld at interest | |||||||||||
| Other | |||||||||||
| Investment revenue | |||||||||||
| Investment expenses | ( | ( | |||||||||
| Net investment income | $ | $ | |||||||||
Investment Related Gains (Losses)
Investment related gains (losses) by asset class consists of the following:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
AFS securities1 | |||||||||||
| Gross realized gains on investment activity | $ | $ | |||||||||
| Gross realized losses on investment activity | ( | ( | |||||||||
| Net realized investment gains (losses) on AFS securities | ( | ||||||||||
| Net recognized investment gains (losses) on trading securities | ( | ||||||||||
| Net recognized investment gains (losses) on equity securities | ( | ||||||||||
| Net recognized investment gains (losses) on mortgage loans | ( | ||||||||||
| ( | ( | ||||||||||
| Provision for credit losses | ( | ||||||||||
| Other gains (losses) | ( | ||||||||||
| Investment related gains (losses) | $ | ( | $ | ( | |||||||
1 Includes the effects of recognized gains or losses on AFS securities associated with designated hedges. | |||||||||||
Proceeds from sales of AFS securities were $7,768 million and $8,945 million for the three months ended March 31, 2026 and 2025, respectively.
29
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following table summarizes the change in unrealized gains (losses) on trading and equity securities held as of the respective period end:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Trading securities | $ | ( | $ | ||||||||
| Equity securities | ( | ||||||||||
Repurchase Agreements
The following table summarizes the remaining contractual maturities of repurchase agreements:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Less than 30 days | $ | $ | |||||||||
| 91 days to 1 year | |||||||||||
| Greater than 1 year | |||||||||||
Payables for repurchase agreements | $ | $ | |||||||||
The following table summarizes the securities pledged as collateral for repurchase agreements:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| AFS securities | |||||||||||||||||||||||
| U.S. government and agencies | $ | $ | $ | $ | |||||||||||||||||||
| Foreign governments | |||||||||||||||||||||||
| Corporate | |||||||||||||||||||||||
| CLO | |||||||||||||||||||||||
| ABS | |||||||||||||||||||||||
| CMBS | |||||||||||||||||||||||
| RMBS | |||||||||||||||||||||||
| Total securities pledged under repurchase agreements | $ | $ | $ | $ | |||||||||||||||||||
As of December 31, 2025, $907 million of repurchase agreements were presented net of reverse repurchase agreements on the condensed consolidated statements of financial condition, and the agreements were net settled during the three months ended March 31, 2026.
Reverse Repurchase Agreements
As of March 31, 2026 and December 31, 2025, amounts loaned under reverse repurchase agreements were $150 million and $1,067 million, respectively, and the fair value of the collateral was $858 million, comprised primarily of asset-backed securities, and $1,822 million, comprised primarily of asset-backed securities and short-term investments, respectively.
30
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Mortgage Loans, including related parties and consolidated VIEs
Mortgage loans include both commercial and residential loans. Athene has elected the fair value option on its mortgage loan portfolio. See note 7 for further fair value option information. The following represents the mortgage loan portfolio, with fair value option loans presented at unpaid principal balance:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Commercial mortgage loans | $ | $ | |||||||||
| Commercial mortgage loans under development | |||||||||||
| Total commercial mortgage loans | |||||||||||
| Mark to fair value | ( | ( | |||||||||
| Commercial mortgage loans | |||||||||||
| Residential mortgage loans | |||||||||||
| Mark to fair value | |||||||||||
| Residential mortgage loans | |||||||||||
| Mortgage loans | $ | $ | |||||||||
Athene invests in commercial mortgage loans, primarily on income-producing properties including apartments, industrial properties, office buildings, hotels, and retail buildings. Athene diversifies the commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. Athene evaluates mortgage loans based on relevant current information to confirm whether properties are performing at a consistent and acceptable level to secure the related debt.
The distribution of commercial mortgage loans, including those under development, by property type and geographic region is as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions, except percentages) | Fair Value | Percentage of Total | Fair Value | Percentage of Total | |||||||||||||||||||
| Property type | |||||||||||||||||||||||
| Apartment | $ | % | $ | % | |||||||||||||||||||
| Industrial | % | % | |||||||||||||||||||||
| Office building | % | % | |||||||||||||||||||||
| Hotels | % | % | |||||||||||||||||||||
| Retail | % | % | |||||||||||||||||||||
| Other commercial | % | % | |||||||||||||||||||||
| Total commercial mortgage loans | $ | % | $ | % | |||||||||||||||||||
| U.S. region | |||||||||||||||||||||||
| East North Central | $ | % | $ | % | |||||||||||||||||||
| East South Central | % | % | |||||||||||||||||||||
| Middle Atlantic | % | % | |||||||||||||||||||||
| Mountain | % | % | |||||||||||||||||||||
| New England | % | % | |||||||||||||||||||||
| Pacific | % | % | |||||||||||||||||||||
| South Atlantic | % | % | |||||||||||||||||||||
| West North Central | % | % | |||||||||||||||||||||
| West South Central | % | % | |||||||||||||||||||||
| Total U.S. region | % | % | |||||||||||||||||||||
| International region | |||||||||||||||||||||||
| U.K. | % | % | |||||||||||||||||||||
Other international1 | % | % | |||||||||||||||||||||
| Total international region | % | % | |||||||||||||||||||||
| Total commercial mortgage loans | $ | % | $ | % | |||||||||||||||||||
1 Represents all other countries, with each individual country comprising less than 5% of the portfolio. | |||||||||||||||||||||||
31
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Athene’s residential mortgage loan portfolio primarily consists of first lien residential mortgage loans collateralized by properties in various geographic locations and is summarized by proportion of the portfolio in the following table:
| March 31, 2026 | December 31, 2025 | ||||||||||
| U.S. States | |||||||||||
| California | % | % | |||||||||
| Texas | % | % | |||||||||
| Florida | % | % | |||||||||
Other1 | % | % | |||||||||
| Total U.S. residential mortgage loan percentage | % | % | |||||||||
International1 | % | % | |||||||||
| Total residential mortgage loan percentage | % | % | |||||||||
1 Represents all other states or countries, with each individual state or country comprising less than 5% of the portfolio. | |||||||||||
Investment Funds
Athene’s investment fund portfolio strategy primarily focuses on core holdings of origination and retirement services platforms, equity and credit, and other funds. Origination platforms include investments sourced by affiliated platforms that originate loans to third parties and in which Athene gains exposure directly to the loan or indirectly through its ownership of the origination platform and/or securitizations of assets originated by the origination platform. Retirement services platforms include investments in equity of financial services companies. The credit strategy is comprised of direct origination, asset-backed, multi-credit and opportunistic credit funds focused on generating excess returns through high-quality credit underwriting and origination. The equity strategy is comprised of private equity, hybrid value, secondaries equity, real estate equity, infrastructure and clean transition equity funds that raise capital from investors to pursue control-oriented investments across the universe of private assets. Investment funds can meet the definition of VIEs. The investment funds do not specify timing of distributions on the funds’ underlying assets.
The following summarizes Athene’s investment funds, including related parties and consolidated VIEs:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions, except percentages) | Carrying Value | Percentage of Total | Carrying Value | Percentage of Total | |||||||||||||||||||
| Investment funds | |||||||||||||||||||||||
| Equity | $ | % | $ | % | |||||||||||||||||||
| Investment funds – related parties | |||||||||||||||||||||||
| Origination platforms | % | % | |||||||||||||||||||||
| Retirement services platforms | % | % | |||||||||||||||||||||
| Equity | % | % | |||||||||||||||||||||
| Credit | % | % | |||||||||||||||||||||
| Other | % | % | |||||||||||||||||||||
| Total investment funds – related parties | % | % | |||||||||||||||||||||
| Investment funds – consolidated VIEs | |||||||||||||||||||||||
| Origination platforms | % | % | |||||||||||||||||||||
| Equity | % | % | |||||||||||||||||||||
| Credit | % | % | |||||||||||||||||||||
| Other | % | % | |||||||||||||||||||||
| Total investment funds – consolidated VIEs | % | % | |||||||||||||||||||||
| Total investment funds, including related parties and consolidated VIEs | $ | % | $ | % | |||||||||||||||||||
32
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Concentrations—The following table represents Athene’s investment concentrations in excess of 10% of stockholders’ equity:
| (In millions) | March 31, 2026 | ||||
Investment-grade ABS debt issued by AP Grange Holdings, LLC (“AP Grange”)1 | $ | ||||
Investments in Atlas Securitized Products Holdings L.P. (“Atlas”)2 | |||||
| Investment-grade ABS debt issued by Fox Hedge L.P. | |||||
Investments in Athora2 | |||||
Investment-grade ABS debt issued by Apollo Multi-Asset Prime Securities (“AMAPS”) 2, LLC2 | |||||
Investment-grade ABS debt issued by AMAPS 3, LLC2 | |||||
| Investment-grade ABS debt issued by AP Alkaios (Luxembourg) S.à.r.l. | |||||
Investment-grade ABS debt issued by AMAPS 1, LLC2 | |||||
| Investment-grade ABS debt issued by SVF II Finco Cayman L.P. | |||||
| December 31, 2025 | |||||
Investment-grade ABS debt issued by AP Grange1 | $ | ||||
Investments in Atlas2 | |||||
| Investment-grade ABS debt issued by Fox Hedge L.P. | |||||
Investment-grade ABS debt issued by AMAPS 2, LLC2 | |||||
| Investment-grade ABS debt issued by AP Alkaios (Luxembourg) S.à.r.l. | |||||
Investment-grade ABS debt issued by AMAPS 1, LLC2 | |||||
1 During the second quarter of 2026, AP Grange called the ABS debt outstanding. As a result, Athene will recognize a gain of $ | |||||
2 Amounts are representative of single issuer risk and may only include a portion of the total investments associated with a related party. For Atlas and Athora, see note 16 for additional information. | |||||
5. Derivatives
Athene uses a variety of derivative instruments to manage risks, primarily equity, interest rate, foreign currency and market volatility. See note 7 for information about the fair value hierarchy for derivatives.
The following table presents the notional amount and fair value of derivative instruments:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||||||||||||||
| (In millions) | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||
| Derivatives designated as hedges | |||||||||||||||||||||||||||||||||||
| Foreign currency hedges | |||||||||||||||||||||||||||||||||||
| Swaps | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Forwards | |||||||||||||||||||||||||||||||||||
| Interest rate swaps | |||||||||||||||||||||||||||||||||||
| Forwards on net investments | |||||||||||||||||||||||||||||||||||
| Interest rate swaps | |||||||||||||||||||||||||||||||||||
| Total derivatives designated as hedges | |||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges | |||||||||||||||||||||||||||||||||||
| Equity options | |||||||||||||||||||||||||||||||||||
| Futures | |||||||||||||||||||||||||||||||||||
| Foreign currency swaps | |||||||||||||||||||||||||||||||||||
| Interest rate swaps and forwards | |||||||||||||||||||||||||||||||||||
| Other swaps | |||||||||||||||||||||||||||||||||||
| Foreign currency forwards | |||||||||||||||||||||||||||||||||||
| Embedded derivatives | |||||||||||||||||||||||||||||||||||
| Funds withheld, including related parties | ( | ( | |||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | |||||||||||||||||||||||||||||||||||
| Total derivatives not designated as hedges | |||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
33
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Derivatives Designated as Hedges
Cash Flow Hedges
Athene uses interest rate swaps to convert floating-rate interest payments to fixed-rate interest payments to reduce exposure to interest rate changes. The interest rate swaps will expire by January 2036. During the three months ended March 31, 2026 and 2025, Athene recognized losses of $64 million and gains of $96 million, respectively, in other comprehensive income (“OCI”) associated with these hedges. There were no 5 million to be reclassified to income within the next 12 months based on current market economics; however, actual amounts recognized may vary as a result of changes in relevant market conditions.
Fair Value Hedges
Athene uses foreign currency forward contracts, foreign currency swaps, foreign currency interest rate swaps and interest rate swaps that are designated and accounted for as fair value hedges to hedge certain exposures to foreign currency risk and interest rate risk. The foreign currency forward price is agreed upon at the time of the contract and payment is made at a specified future date. The amortized cost of AFS debt securities in qualifying fair value hedges of foreign currency risk was $20.9 billion and $21.3 billion as of March 31, 2026 and December 31, 2025, respectively. The carrying value of interest sensitive contract liabilities in qualifying fair value hedges of foreign currency swaps was $8.3 billion and $8.4 billion as of March 31, 2026 and December 31, 2025, respectively.
The following represents the carrying amount and the cumulative amount of fair value hedging adjustments of hedged liabilities, excluding liabilities solely hedging foreign currency risk and cumulative amounts related to foreign currency gains (losses):
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions) | Carrying amount of the hedged liabilities | Cumulative amount of fair value hedging gains (losses) | Carrying amount of the hedged liabilities | Cumulative amount of fair value hedging gains (losses) | |||||||||||||||||||
| Interest sensitive contract liabilities | |||||||||||||||||||||||
| Foreign currency interest rate swaps | $ | $ | $ | $ | |||||||||||||||||||
| Interest rate swaps | ( | ||||||||||||||||||||||
34
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following is a summary of the gains (losses) related to the derivatives and related hedged items in fair value hedge relationships:
| Amounts excluded | |||||||||||||||||||||||||||||
| (In millions) | Derivatives | Hedged items | Net | Recognized in income through amortization approach | Recognized in income through changes in fair value | ||||||||||||||||||||||||
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||
| Investment related gains (losses) | |||||||||||||||||||||||||||||
| Foreign currency forwards | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
| Foreign currency swaps | ( | ( | |||||||||||||||||||||||||||
| Foreign currency interest rate swaps | ( | ( | |||||||||||||||||||||||||||
| Interest rate swaps | ( | ( | |||||||||||||||||||||||||||
| Interest sensitive contract benefits | |||||||||||||||||||||||||||||
| Foreign currency interest rate swaps | ( | ||||||||||||||||||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||
| Investment related gains (losses) | |||||||||||||||||||||||||||||
| Foreign currency forwards | ( | ( | |||||||||||||||||||||||||||
| Foreign currency swaps | ( | ||||||||||||||||||||||||||||
| Foreign currency interest rate swaps | ( | ||||||||||||||||||||||||||||
| Interest rate swaps | ( | ||||||||||||||||||||||||||||
| Interest sensitive contract benefits | |||||||||||||||||||||||||||||
| Foreign currency interest rate swaps | ( | ||||||||||||||||||||||||||||
The following is a summary of the gains (losses) excluded from the assessment of hedge effectiveness that were recognized in OCI:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Foreign currency forwards | $ | $ | |||||||||
| Foreign currency swaps | |||||||||||
Net Investment Hedges
Athene uses foreign currency forwards to hedge the foreign currency exchange rate risk of its investments in subsidiaries that have a reporting currency other than the U.S. dollar. Hedge effectiveness is assessed based on the changes in forward rates. During the three months ended March 31, 2026 and 2025, these derivatives had gains of $4 million and losses of $8 million, respectively. These derivatives are included in foreign currency translation and other adjustments on the condensed consolidated statements of comprehensive income (loss). As of March 31, 2026 and December 31, 2025, the cumulative foreign currency translations recorded in AOCI related to these net investment hedges were gains of $18 million and $14 million, respectively. During the three months ended March 31, 2026 and 2025, there were no
Derivatives Not Designated as Hedges
Equity options
Athene uses equity indexed options to economically hedge indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specified market index, including the S&P 500 and other bespoke indices. To hedge against adverse changes in equity indices, Athene enters into contracts to buy equity indexed options. The contracts are net settled in cash based on differentials in the indices at the time of exercise and the strike price.
35
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Futures
Athene purchases futures contracts to hedge the growth in interest credited to the customer as a direct result of increases in the related indices. Athene enters into exchange-traded futures with regulated futures commission clearing brokers who are members of a trading exchange. Under exchange-traded futures contracts, Athene agrees to purchase a specified number of contracts with other parties and to post variation margin on a daily basis in an amount equal to the difference in the daily fair values of those contracts.
Interest rate swaps and forwards
Athene uses interest rate swaps and forwards to reduce market risks from interest rate changes and to alter interest rate exposure arising from duration mismatches between assets and liabilities. With an interest rate swap, Athene agrees with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed-upon notional principal amount at specified intervals.
Other swaps
Other swaps include total return swaps, credit default swaps and swaptions. Athene purchases total rate of return swaps to gain exposure and benefit from a reference asset or index without ownership. Credit default swaps provide a measure of protection against the default of an issuer or allow Athene to gain credit exposure to an issuer or traded index. Athene uses credit default swaps coupled with a bond to synthetically create the characteristics of a reference bond. Swaptions provide an option to enter into an interest rate swap and are used by Athene to hedge against interest rate exposure.
Embedded derivatives
Athene has embedded derivatives which are required to be separated from their host contracts and reported as derivatives. Host contracts include reinsurance agreements structured on a modco or funds withheld basis and indexed annuity products.
The following is a summary of the gains (losses) related to derivatives not designated as hedges:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Equity options | $ | ( | $ | ( | |||||||
| Futures | ( | ( | |||||||||
| Foreign currency swaps | ( | ||||||||||
| Interest rate swaps and forwards and other swaps | ( | ( | |||||||||
| Foreign currency forwards | ( | ||||||||||
| Embedded derivatives on funds withheld | ( | ||||||||||
| Amounts recognized in investment related gains (losses) | ( | ( | |||||||||
Embedded derivatives in indexed annuity products1 | |||||||||||
| Total gains (losses) on derivatives not designated as hedges | $ | $ | ( | ||||||||
1 Included in interest sensitive contract benefits on the condensed consolidated statements of operations. | |||||||||||
Credit Risk
Athene may be exposed to credit-related losses in the event of counterparty nonperformance on derivative financial instruments. Generally, the current credit exposure of Athene’s derivative contracts is the fair value at the reporting date less any collateral received from the counterparty.
Athene manages credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties. Where possible, Athene maintains collateral arrangements and uses master netting agreements that provide for a single net payment from one counterparty to another at each due date and upon termination. Athene has also established counterparty exposure limits, where possible, in order to evaluate if there is sufficient collateral to support the net exposure.
36
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Collateral arrangements typically require the posting of collateral in connection with its derivative instruments. Collateral agreements often contain posting thresholds, some of which may vary depending on the posting party’s financial strength ratings. Additionally, a decrease in Athene’s financial strength rating to a specified level can result in settlement of the derivative position.
The estimated fair value of Athene’s net derivative and other financial assets and liabilities after the application of master netting agreements and collateral were as follows:
Gross amounts not offset on the condensed consolidated statements of financial condition | |||||||||||||||||||||||||||||||||||
| (In millions) | Gross amount recognized1 | Financial instruments2 | Collateral (received)/pledged | Net amount | Off-balance sheet securities collateral3 | Net amount after securities collateral | |||||||||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Derivative assets | $ | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
| Derivative liabilities | ( | ( | |||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Derivative assets | $ | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
| Derivative liabilities | ( | ( | ( | ||||||||||||||||||||||||||||||||
1 The gross amounts of recognized derivative assets and derivative liabilities are reported on the condensed consolidated statements of financial condition. As of March 31, 2026 and December 31, 2025, amounts not subject to master netting or similar agreements were immaterial. | |||||||||||||||||||||||||||||||||||
2 Represents amounts offsetting derivative assets and derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets or gross derivative liabilities for presentation on the condensed consolidated statements of financial condition. | |||||||||||||||||||||||||||||||||||
3 For non-cash collateral received, Athene does not recognize the collateral on the condensed consolidated statements of financial condition unless the obligor (transferor) has defaulted under the terms of the secured contract and is no longer entitled to redeem the pledged asset. Amounts do not include any excess of collateral pledged or received. | |||||||||||||||||||||||||||||||||||
Certain derivative instruments contain provisions for credit-related events, such as a negative credit event of a credit default swap’s reference entity. If a credit event were to occur, Athene may be required to settle an outstanding liability. Athene has written credit default swaps primarily on high-yield indices. As of March 31, 2026 and December 31, 2025, the carrying value of these derivatives was $107 million and $76 million in assets, respectively, and less than $1 985 million and $510 million, respectively.
6. Variable Interest Entities
A variable interest in a VIE is an investment or other interest that will absorb portions of the VIE’s expected losses and/or receive expected residual returns. Variable interests in consolidated VIEs and unconsolidated VIEs are discussed separately below.
Consolidated VIEs
Consolidated VIEs include certain CLOs and funds managed by the Company and other entities where the Company is deemed the primary beneficiary. Consolidated VIEs also include certain investment managers and general partners of the funds managed by the Company. Such investment managers and general partners have other equity investors at risk that do not have the ability to make significant decisions related to the entity’s operations.
The assets of consolidated VIEs are not available to creditors of the Company, and the investors in these consolidated VIEs have no recourse against the assets of the Company. Similarly, there is no recourse to the Company for the consolidated VIEs’ liabilities.
As of March 31, 2026, cash and cash equivalents of consolidated VIEs includes $69 million of restricted cash held in escrow related to the sale of an investment, which is expected to be released over the next 15 months.
37
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Other assets of the consolidated VIEs include short-term receivables due from investments sold and interest receivables. Accounts payable, accrued expenses, and other liabilities of consolidated VIEs include debt, profit sharing payable and other short-term payables.
Results from certain consolidated VIEs are reported on up to a three-month lag based upon the availability of financial information.
Consolidated Variable Interest Entities—Asset Management
The following table presents the investments of the consolidated VIEs:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Asset Management | |||||||||||
| Investments, at fair value | $ | $ | |||||||||
| Equity method investments | |||||||||||
| Performance allocations | |||||||||||
| Other investments | |||||||||||
| Total Investments – Asset Management | $ | $ | |||||||||
The following table presents net gains (losses) from investment activities of the consolidated VIEs:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Net gains (losses) from investment activities | $ | ( | $ | ||||||||
| Net gains (losses) from debt | |||||||||||
| Interest and other income | |||||||||||
| Interest and other expenses | ( | ( | |||||||||
| Net gains (losses) from investment activities of consolidated variable interest entities | $ | ( | $ | ||||||||
In addition, we recognize revenues and expenses of certain consolidated VIEs within management fees, investment income (loss), compensation and benefits and general, administrative and other. The following table presents revenues, expenses and other gains (losses) related to the activities of these VIEs.
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Revenues | $ | ( | $ | ||||||||
| Expenses | |||||||||||
| Other gains (losses) | ( | ( | |||||||||
Included within other liabilities are amounts due to third-party institutions by the consolidated VIEs. The following table summarizes the principal provisions of those amounts:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| (In millions, except percentages) | Principal Outstanding | Weighted Average Interest Rate | Weighted Average Remaining Maturity in Years | Principal Outstanding | Weighted Average Interest Rate | Weighted Average Remaining Maturity in Years | |||||||||||||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||||||||
Subscription lines1 | $ | % | $ | % | |||||||||||||||||||||||||||||||
Total – Asset Management | $ | $ | |||||||||||||||||||||||||||||||||
1 The subscription lines of the consolidated VIEs are collateralized by assets held by each respective vehicle and assets of one vehicle may not be used to satisfy the liabilities of another vehicle. | |||||||||||||||||||||||||||||||||||
38
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The consolidated VIEs’ debt obligations contain various customary loan covenants. As of March 31, 2026, the Company was not aware of any instances of non-compliance with any of these covenants.
Consolidated Variable Interest Entities—Retirement Services
The following summarizes the statements of operations activity of the consolidated VIEs:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Trading securities | $ | $ | |||||||||
| Mortgage loans | |||||||||||
| Investment funds | |||||||||||
| Investment expenses and other | ( | ( | |||||||||
| Net investment income | |||||||||||
Net recognized investment gains (losses) on trading securities | ( | ||||||||||
Net recognized investment gains on mortgage loans | |||||||||||
Net recognized investment gains on investment funds | |||||||||||
Net other gains | |||||||||||
| Investment related gains (losses) | |||||||||||
| Revenues of consolidated variable interest entities | $ | $ | |||||||||
Unconsolidated Variable Interest Entities—Asset Management
The following table presents the maximum exposure to losses relating to these VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary.
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
Maximum Loss Exposure1,2 | $ | $ | |||||||||
1 Represents Apollo’s direct investment in those entities in which it holds a significant variable interest and certain other investments. Additionally, cumulative performance allocations are subject to reversal in the event of future losses. | |||||||||||
2 Some amounts included are a quarter in arrears. | |||||||||||
Unconsolidated Variable Interest Entities—Retirement Services
Athene has variable interests in certain unconsolidated VIEs in the form of securities and ownership stakes in investment funds.
Fixed maturity securities
Athene invests in securitization entities as a debt holder or an investor in the residual interest of the securitization vehicle. These entities are deemed VIEs due to insufficient equity within the structure and lack of control by the equity investors over the activities that significantly impact the economics of the entity. In general, Athene is a debt investor within these entities and, as such, holds a variable interest; however, due to the debt holders’ lack of ability to control the decisions within the structure that significantly impact the entity, and the fact the debt holders are protected from losses due to the subordination of the equity tranche, the debt holders are not deemed the primary beneficiary. Securitization vehicles in which Athene holds the residual tranche are not consolidated because Athene does not unilaterally have substantive rights to remove the general partner, or when assessing related party interests, Athene is not under common control, as defined by U.S. GAAP, with the related parties, nor are substantially all of the activities conducted on Athene’s behalf; therefore, Athene is not deemed the primary beneficiary. Debt investments and investments in the residual tranche of securitization entities are considered debt instruments, and are held at fair value.
Investment funds
Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures.
39
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Equity securities
Athene invests in preferred equity securities issued by entities deemed to be VIEs due to insufficient equity within the structure.
Athene’s risk of loss associated with its non-consolidated investments depends on the investment. Investment funds, equity securities and trading securities are limited to the carrying value plus unfunded commitments. AFS securities are limited to amortized cost plus unfunded commitments.
The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions) | Carrying Value | Maximum Loss Exposure | Carrying Value | Maximum Loss Exposure | |||||||||||||||||||
| Investment funds | $ | $ | $ | $ | |||||||||||||||||||
| Investment in related parties – investment funds | |||||||||||||||||||||||
| Assets of consolidated VIEs – investment funds | |||||||||||||||||||||||
| Investment in fixed maturity securities | |||||||||||||||||||||||
| Investment in related parties – fixed maturity securities | |||||||||||||||||||||||
| Investment in related parties – equity securities | |||||||||||||||||||||||
| Total non-consolidated investments | $ | $ | $ | $ | |||||||||||||||||||
40
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
7. Fair Value
Fair Value Measurements of Financial Instruments
The following summarizes the Company’s financial assets and liabilities recorded at fair value hierarchy level:
| March 31, 2026 | |||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
Asset Management | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
| Restricted cash and cash equivalents | — | ||||||||||||||||||||||||||||
| Cash and cash equivalents of consolidated VIEs | — | ||||||||||||||||||||||||||||
| Investments | 1 | ||||||||||||||||||||||||||||
| Investments of consolidated VIEs | |||||||||||||||||||||||||||||
Due from related parties2 | — | ||||||||||||||||||||||||||||
Derivative assets3 | — | ||||||||||||||||||||||||||||
Total Assets – Asset Management | |||||||||||||||||||||||||||||
Retirement Services | |||||||||||||||||||||||||||||
| AFS Securities | |||||||||||||||||||||||||||||
| U.S. government and agencies | — | ||||||||||||||||||||||||||||
| U.S. state, municipal and political subdivisions | — | ||||||||||||||||||||||||||||
| Foreign governments | — | ||||||||||||||||||||||||||||
| Corporate | — | ||||||||||||||||||||||||||||
| CLO | — | ||||||||||||||||||||||||||||
| ABS | — | ||||||||||||||||||||||||||||
| CMBS | — | ||||||||||||||||||||||||||||
| RMBS | — | ||||||||||||||||||||||||||||
| Total AFS securities | — | ||||||||||||||||||||||||||||
| Trading securities | — | ||||||||||||||||||||||||||||
| Equity securities | — | ||||||||||||||||||||||||||||
| Mortgage loans | — | ||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | — | ( | ||||||||||||||||||||||||||
| Derivative assets | — | ||||||||||||||||||||||||||||
| Short-term investments | — | ||||||||||||||||||||||||||||
| Other investments | — | ||||||||||||||||||||||||||||
| Cash and cash equivalents | — | ||||||||||||||||||||||||||||
| Restricted cash and cash equivalents | — | ||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||
| Corporate | — | ||||||||||||||||||||||||||||
| CLO | — | ||||||||||||||||||||||||||||
| ABS | — | ||||||||||||||||||||||||||||
| CMBS | — | ||||||||||||||||||||||||||||
| Total AFS securities – related parties | — | ||||||||||||||||||||||||||||
| Trading securities | — | ||||||||||||||||||||||||||||
| Mortgage loans | — | ||||||||||||||||||||||||||||
| Investment funds | — | ||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | — | ( | ||||||||||||||||||||||||||
| Other investments | — | ||||||||||||||||||||||||||||
| Reinsurance recoverable | — | ||||||||||||||||||||||||||||
Other assets5 | — | ||||||||||||||||||||||||||||
| (Continued) | |||||||||||||||||||||||||||||
41
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| March 31, 2026 | |||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||||||||||||||
| Assets of consolidated VIEs | |||||||||||||||||||||||||||||
| Trading securities | — | ||||||||||||||||||||||||||||
| Mortgage loans | — | ||||||||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||||||||
| Cash and cash equivalents | — | ||||||||||||||||||||||||||||
Total Assets – Retirement Services | |||||||||||||||||||||||||||||
| Total Assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
Asset Management | |||||||||||||||||||||||||||||
Due to related parties2 | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Contingent consideration obligations4 | — | ||||||||||||||||||||||||||||
| Other liabilities of consolidated VIEs, at fair value | |||||||||||||||||||||||||||||
Total Liabilities – Asset Management | — | ||||||||||||||||||||||||||||
Retirement Services | |||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | |||||||||||||||||||||||||||||
| Embedded derivative | — | ||||||||||||||||||||||||||||
| Universal life benefits | — | ||||||||||||||||||||||||||||
| Future policy benefits | |||||||||||||||||||||||||||||
| AmerUs Life Insurance Company (“AmerUs”) Closed Block | — | ||||||||||||||||||||||||||||
| Indianapolis Life Insurance Company (“ILICO”) Closed Block and life benefits | — | ||||||||||||||||||||||||||||
Market risk benefits5 | — | ||||||||||||||||||||||||||||
| Derivative liabilities | — | ||||||||||||||||||||||||||||
| Other liabilities | — | ||||||||||||||||||||||||||||
Total Liabilities – Retirement Services | — | ||||||||||||||||||||||||||||
| Total Liabilities | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
| (Continued) | |||||||||||||||||||||||||||||
42
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| December 31, 2025 | |||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
Asset Management | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
| Restricted cash and cash equivalents | — | ||||||||||||||||||||||||||||
| Cash and cash equivalents of consolidated VIEs | — | ||||||||||||||||||||||||||||
| Investments | 1 | ||||||||||||||||||||||||||||
| Investments of consolidated VIEs | |||||||||||||||||||||||||||||
Due from related parties2 | — | ||||||||||||||||||||||||||||
Derivative assets3 | — | ||||||||||||||||||||||||||||
Total Assets – Asset Management | |||||||||||||||||||||||||||||
Retirement Services | |||||||||||||||||||||||||||||
| AFS Securities | |||||||||||||||||||||||||||||
| U.S. government and agencies | — | ||||||||||||||||||||||||||||
| U.S. state, municipal and political subdivisions | — | ||||||||||||||||||||||||||||
| Foreign governments | — | ||||||||||||||||||||||||||||
| Corporate | — | ||||||||||||||||||||||||||||
| CLO | — | ||||||||||||||||||||||||||||
| ABS | — | ||||||||||||||||||||||||||||
| CMBS | — | ||||||||||||||||||||||||||||
| RMBS | — | ||||||||||||||||||||||||||||
| Total AFS securities | — | ||||||||||||||||||||||||||||
| Trading securities | — | ||||||||||||||||||||||||||||
| Equity securities | — | ||||||||||||||||||||||||||||
| Mortgage loans | — | ||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | — | ( | ||||||||||||||||||||||||||
| Derivative assets | — | ||||||||||||||||||||||||||||
| Short-term investments | — | ||||||||||||||||||||||||||||
| Other investments | — | ||||||||||||||||||||||||||||
| Cash and cash equivalents | — | ||||||||||||||||||||||||||||
| Restricted cash and cash equivalents | — | ||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||
| Corporate | — | ||||||||||||||||||||||||||||
| CLO | — | ||||||||||||||||||||||||||||
| ABS | — | ||||||||||||||||||||||||||||
| CMBS | — | ||||||||||||||||||||||||||||
| Total AFS securities – related parties | — | ||||||||||||||||||||||||||||
| Trading securities | — | ||||||||||||||||||||||||||||
| Equity securities | — | ||||||||||||||||||||||||||||
| Mortgage loans | — | ||||||||||||||||||||||||||||
| Investment funds | — | ||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | — | ( | ||||||||||||||||||||||||||
| Other investments | — | ||||||||||||||||||||||||||||
| Reinsurance recoverable | — | ||||||||||||||||||||||||||||
Other assets5 | — | ||||||||||||||||||||||||||||
| (Continued) | |||||||||||||||||||||||||||||
43
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| December 31, 2025 | |||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||||||||||||||||
| Assets of consolidated VIEs | |||||||||||||||||||||||||||||
| Trading securities | — | ||||||||||||||||||||||||||||
| Mortgage loans | — | ||||||||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||||||||
| Cash and cash equivalents | — | ||||||||||||||||||||||||||||
Total Assets – Retirement Services | |||||||||||||||||||||||||||||
| Total Assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
Asset Management | |||||||||||||||||||||||||||||
Contingent consideration obligations4 | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Derivative liabilities3 | — | ||||||||||||||||||||||||||||
Total Liabilities – Asset Management | — | ||||||||||||||||||||||||||||
Retirement Services | |||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | |||||||||||||||||||||||||||||
| Embedded derivative | — | ||||||||||||||||||||||||||||
| Universal life benefits | — | ||||||||||||||||||||||||||||
| Future policy benefits | |||||||||||||||||||||||||||||
| AmerUs Closed Block | — | ||||||||||||||||||||||||||||
| ILICO Closed Block and life benefits | — | ||||||||||||||||||||||||||||
Market risk benefits5 | — | ||||||||||||||||||||||||||||
| Derivative liabilities | — | ||||||||||||||||||||||||||||
| Other liabilities | — | ||||||||||||||||||||||||||||
Total Liabilities – Retirement Services | — | ||||||||||||||||||||||||||||
| Total Liabilities | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
| (Concluded) | |||||||||||||||||||||||||||||
1 Investments as of March 31, 2026 and December 31, 2025 excludes $ | |||||||||||||||||||||||||||||
2 Due from/to related parties represents receivables and payables associated with funds. See note 16 for additional information on due from/to related parties. | |||||||||||||||||||||||||||||
3 Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the condensed consolidated statements of financial condition. | |||||||||||||||||||||||||||||
4 Other liabilities include profit sharing payable related to contingent obligations classified as Level 3. | |||||||||||||||||||||||||||||
5 Other assets consist of market risk benefits assets. See note 9 for additional information on market risk benefits assets and liabilities valuation methodology and additional fair value disclosures. | |||||||||||||||||||||||||||||
Changes in fair value of contingent consideration obligations in connection with the acquisition of Stone Tower are recorded in compensation and benefits expense in the condensed consolidated statements of operations. Refer to note 17 for further details.
44
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Level 3 Financial Instruments
The following tables summarize the valuation techniques and quantitative inputs and assumptions used for financial assets and liabilities categorized as Level 3:
| March 31, 2026 | ||||||||||||||||||||||||||||||||
Fair Value (In millions) | Valuation Technique | Unobservable Inputs | Ranges | Weighted Average | ||||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||||||||
| Asset Management | ||||||||||||||||||||||||||||||||
| Investments | $ | Discounted cash flow | Discount rate | 1 | ||||||||||||||||||||||||||||
| Direct capitalization | Capitalization rate | |||||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Due from related parties | Discounted cash flow | Discount rate | ||||||||||||||||||||||||||||||
| Derivative assets | Option model | Volatility rate | ||||||||||||||||||||||||||||||
| Investments of consolidated VIEs | ||||||||||||||||||||||||||||||||
| Bank loans | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Equity securities | Discounted cash flow | Discount rate | ||||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Option model | Volatility rate | 1 | ||||||||||||||||||||||||||||||
| Bonds | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Retirement Services | ||||||||||||||||||||||||||||||||
| AFS, trading and equity securities | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
Mortgage loans2 | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
Investment funds2 | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Recoverability | Estimated proceeds | N/A | N/A | |||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||||||||
| Asset Management | ||||||||||||||||||||||||||||||||
| Contingent consideration obligations | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Due to related parties | Adjusted transaction value | N/A | N/A | N/A | ||||||||||||||||||||||||||||
| Liabilities of Consolidated VIEs | ||||||||||||||||||||||||||||||||
| Bank Loans | Adjusted transaction value | N/A | N/A | N/A | ||||||||||||||||||||||||||||
| Discounted cash flow | Discount rate | 1 | ||||||||||||||||||||||||||||||
| Retirement Services | ||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities – indexed annuities embedded derivatives | Discounted cash flow | Nonperformance risk | 3 | |||||||||||||||||||||||||||||
| Option budget | 4 | |||||||||||||||||||||||||||||||
| Surrender rate | 4 | |||||||||||||||||||||||||||||||
1 Unobservable inputs were weighted based on the fair value of the investments included in the range. | ||||||||||||||||||||||||||||||||
2 Includes those of consolidated VIEs. | ||||||||||||||||||||||||||||||||
3 The nonperformance risk weighted average is based on the projected cash flows attributable to the embedded derivative. | ||||||||||||||||||||||||||||||||
4 The option budget and surrender rate weighted averages are calculated based on projected account values. | ||||||||||||||||||||||||||||||||
45
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| December 31, 2025 | ||||||||||||||||||||||||||||||||
Fair Value (In millions) | Valuation Techniques | Unobservable Inputs | Ranges | Weighted Average | ||||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||||||||
| Asset Management | ||||||||||||||||||||||||||||||||
| Investments | $ | Discounted cash flow | Discount rate | 1 | ||||||||||||||||||||||||||||
| Direct capitalization | Capitalization rate | |||||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Due from related parties | Discounted cash flow | Discount rate | ||||||||||||||||||||||||||||||
| Derivative assets | Option model | Volatility rate | ||||||||||||||||||||||||||||||
| Investments of consolidated VIEs | ||||||||||||||||||||||||||||||||
| Bank loans | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Equity securities | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Adjusted transaction value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Option model | Volatility rate | 1 | ||||||||||||||||||||||||||||||
| Bonds | Adjusted transaction value | N/A | N/A | N/A | ||||||||||||||||||||||||||||
| Retirement Services | ||||||||||||||||||||||||||||||||
| AFS, trading and equity securities | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
Mortgage loans2 | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Recoverability | Estimated proceeds | N/A | N/A | |||||||||||||||||||||||||||||
Investment funds2 | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Recoverability | Estimated proceeds | N/A | N/A | |||||||||||||||||||||||||||||
| Reported net asset value | Reported net asset value | N/A | N/A | |||||||||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||||||||
| Asset Management | ||||||||||||||||||||||||||||||||
| Contingent consideration obligations | Discounted cash flow | Discount rate | 1 | |||||||||||||||||||||||||||||
| Retirement Services | ||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities – indexed annuities embedded derivatives | Discounted cash flow | Nonperformance risk | 3 | |||||||||||||||||||||||||||||
| Option budget | 4 | |||||||||||||||||||||||||||||||
| Surrender rate | 4 | |||||||||||||||||||||||||||||||
1 Unobservable inputs were weighted based on the fair value of the investments included in the range. | ||||||||||||||||||||||||||||||||
2 Includes those of consolidated VIEs. | ||||||||||||||||||||||||||||||||
3 The nonperformance risk weighted average is based on the projected cash flows attributable to the embedded derivative. | ||||||||||||||||||||||||||||||||
4 The option budget and surrender rate weighted averages are calculated based on projected account values. | ||||||||||||||||||||||||||||||||
46
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following are reconciliations for Level 3 assets and liabilities measured at fair value on a recurring basis:
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total realized and unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Beginning Balance | Net Purchases, Issuances, Sales and Settlements | Net Transfers In (Out) | Ending Balance | Total Gains (Losses) Included in OCI1 | ||||||||||||||||||||||||||||||||||||||||||
Assets – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Investments and derivative assets | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Investments of consolidated VIEs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Asset Management | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Assets – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign governments | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Corporate | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| CMBS | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| RMBS | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Other investments | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| CLO | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Investment funds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Other investments | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Reinsurance recoverable | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Assets of consolidated VIEs | |||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Retirement Services | $ | $ | ( | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||
| (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||
47
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total realized and unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Beginning Balance | Net Purchases, Issuances, Sales and Settlements | Net Transfers In (Out) | Ending Balance | Total Gains (Losses) Included in OCI1 | ||||||||||||||||||||||||||||||||||||||||||
Liabilities – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Due to related parties | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Contingent consideration obligations | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities of consolidated VIEs | |||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Asset Management | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Liabilities – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Embedded derivative | $ | ( | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||
| Universal life benefits | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Future policy benefits | |||||||||||||||||||||||||||||||||||||||||||||||
| AmerUs Closed Block | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| ILICO Closed Block and life benefits | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Retirement Services | $ | ( | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||
| (Concluded) | |||||||||||||||||||||||||||||||||||||||||||||||
1 Related to instruments held at end of period. | |||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total realized and unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Beginning Balance | Net Purchases, Issuances, Sales and Settlements | Net Transfers In (Out) | Ending Balance | Total Gains (Losses) Included in OCI1 | ||||||||||||||||||||||||||||||||||||||||||
Assets – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Investments and derivative assets | $ | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
| Investments of consolidated VIEs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Asset Management | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Assets – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign governments | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Corporate | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| CMBS | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| RMBS | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Short-term investments | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||||||||||||||
| (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||
48
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total realized and unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Beginning Balance | Net Purchases, Issuances, Sales and Settlements | Net Transfers In (Out) | Ending Balance | Total Gains (Losses) Included in OCI1 | ||||||||||||||||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| CLO | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| ABS | |||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||||||||||||||||||||||||||
| Funds withheld at interest – embedded derivative | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||||||||||||||
| Reinsurance recoverable | |||||||||||||||||||||||||||||||||||||||||||||||
| Assets of consolidated VIEs | |||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Investment funds | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Other investments | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Retirement Services | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Liabilities – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Contingent consideration obligations | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Asset Management | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Liabilities – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Embedded derivative | $ | ( | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||
| Universal life benefits | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Future policy benefits | |||||||||||||||||||||||||||||||||||||||||||||||
| AmerUs Closed Block | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| ILICO Closed Block and life benefits | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Derivative liabilities | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Retirement Services | $ | ( | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||
| (Concluded) | |||||||||||||||||||||||||||||||||||||||||||||||
1 Related to instruments held at end of period. | |||||||||||||||||||||||||||||||||||||||||||||||
49
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following represents the gross components of purchases, issuances, sales and settlements, net, and net transfers in (out) shown above:
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Purchases | Issuances | Sales | Settlements | Net Purchases, Issuances, Sales and Settlements | Transfers In | Transfers Out | Net Transfers In (Out) | |||||||||||||||||||||||||||||||||||||||
Assets – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Investments and derivative assets | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Investments of consolidated VIEs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Asset Management | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||
Assets – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign governments | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Corporate | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| CMBS | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| RMBS | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Short-term investments | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Other investments | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| ABS | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Investment funds | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Reinsurance recoverable | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Assets of consolidated VIEs | |||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Retirement Services | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||
Liabilities – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Due to related parties | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Contingent consideration obligations | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities of consolidated VIEs | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Asset Management | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Liabilities – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities – embedded derivative | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Retirement Services | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
50
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Purchases | Issuances | Sales | Settlements | Net Purchases, Issuances, Sales and Settlements | Transfers In | Transfers Out | Net Transfers In (Out) | |||||||||||||||||||||||||||||||||||||||
Assets – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Investments and derivative assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Investments of consolidated VIEs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Asset Management | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||
Assets – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||
| ABS | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| CMBS | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| RMBS | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Short-term investments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||||||||||||||||||||
| AFS securities | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| CLO | |||||||||||||||||||||||||||||||||||||||||||||||
| ABS | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Reinsurance recoverable | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Assets of consolidated VIEs | |||||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Investment funds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Other investments | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets – Retirement Services | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||
Liabilities – Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Contingent consideration obligations | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Asset Management | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Liabilities – Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities – embedded derivative | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Other liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 liabilities – Retirement Services | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
51
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Fair Value Option – Retirement Services
The following represents the gains (losses) recorded for instruments for which Athene has elected the fair value option, including related parties and VIEs:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Trading securities | $ | ( | $ | ||||||||
| Mortgage loans | ( | ||||||||||
| Investment funds | ( | ||||||||||
| Future policy benefits | ( | ||||||||||
| Other | |||||||||||
| Total gains (losses) | $ | ( | $ | ||||||||
Gains and losses on trading securities, mortgage loans, and other are recorded in investment related gains (losses) on the condensed consolidated statements of operations. Gains and losses related to investment funds are recorded in net investment income on the condensed consolidated statements of operations. Gains and losses related to investments of consolidated VIEs are recorded in revenues of consolidated VIEs on the condensed consolidated statements of operations. The change in fair value of future policy benefits is recorded in future policy and other policy benefits on the condensed consolidated statements of operations.
The following summarizes information for fair value option mortgage loans, including related parties and VIEs:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Unpaid principal balance | $ | $ | |||||||||
| Mark to fair value | ( | ( | |||||||||
| Fair value | $ | $ | |||||||||
The following represents the commercial mortgage loan portfolio 90 days or more past due and/or in non-accrual status:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Unpaid principal balance of commercial mortgage loans 90 days or more past due and/or in non-accrual status | $ | $ | |||||||||
| Mark to fair value of commercial mortgage loans 90 days or more past due and/or in non-accrual status | ( | ( | |||||||||
| Fair value of commercial mortgage loans 90 days or more past due and/or in non-accrual status | $ | $ | |||||||||
| Fair value of commercial mortgage loans 90 days or more past due | $ | $ | |||||||||
| Fair value of commercial mortgage loans in non-accrual status | |||||||||||
The following represents the residential mortgage loan portfolio 90 days or more past due and/or in non-accrual status:
| (In millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Unpaid principal balance of residential mortgage loans 90 days or more past due and/or in non-accrual status | $ | $ | |||||||||
| Mark to fair value of residential mortgage loans 90 days or more past due and/or in non-accrual status | ( | ( | |||||||||
| Fair value of residential mortgage loans 90 days or more past due and/or in non-accrual status | $ | $ | |||||||||
Fair value of residential mortgage loans 90 days or more past due1 | $ | $ | |||||||||
| Fair value of residential mortgage loans in non-accrual status | |||||||||||
1 As of March 31, 2026 and December 31, 2025, includes $ | |||||||||||
52
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following is the estimated amount of gains (losses) included in earnings during the period attributable to changes in instrument-specific credit risk on Athene’s mortgage loan portfolio:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Mortgage loans | $ | ( | $ | ( | |||||||
The portion of gains and losses attributable to changes in instrument-specific credit risk is estimated by identifying commercial mortgage loans with loan-to-value ratios meeting credit quality criteria, and residential mortgage loans with delinquency status meeting credit quality criteria.
Fair Value of Financial Instruments Not Carried at Fair Value – Retirement Services
The following represents Athene’s financial instruments not carried at fair value on the condensed consolidated statements of financial condition:
| March 31, 2026 | |||||||||||||||||||||||||||||||||||
| (In millions) | Carrying Value | Fair Value | NAV | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||||||||
| Investment funds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Policy loans | |||||||||||||||||||||||||||||||||||
| Funds withheld at interest | |||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||||||||||||||
| Funds withheld at interest | |||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||
| Total financial assets not carried at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Debt | |||||||||||||||||||||||||||||||||||
| Securities to repurchase | |||||||||||||||||||||||||||||||||||
| Funds withheld liability | |||||||||||||||||||||||||||||||||||
| Total financial liabilities not carried at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
53
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| (In millions) | Carrying Value | Fair Value | NAV | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||||||||
| Investment funds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Policy loans | |||||||||||||||||||||||||||||||||||
| Funds withheld at interest | |||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||||||||||||||
| Investment funds | |||||||||||||||||||||||||||||||||||
| Funds withheld at interest | |||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||
| Total financial assets not carried at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Debt | |||||||||||||||||||||||||||||||||||
| Securities to repurchase | |||||||||||||||||||||||||||||||||||
| Funds withheld liability | |||||||||||||||||||||||||||||||||||
| Total financial liabilities not carried at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
The fair value for financial instruments not carried at fair value are estimated using the same methods and assumptions as those carried at fair value. The financial instruments presented above are reported at carrying value on the condensed consolidated statements of financial condition; however, in the case of policy loans, funds withheld at interest and liability, short-term investments, and securities to repurchase, the carrying amount approximates fair value.
Other investments – Other investments include investments in low-income housing and transferable energy tax credit structures. For those held using the proportional amortization method, the carrying value may include tax credits which have been received but not yet used, which are excluded from the measurement of the fair value estimate of the investment structures. Tax and other future benefits expected to be generated by these structures are valued using a discounted cash flow model.
Interest sensitive contract liabilities – The carrying and fair value of interest sensitive contract liabilities above includes indexed and traditional fixed annuities without mortality or morbidity risks, funding agreements, guaranteed investment contracts and payout annuities without life contingencies. The embedded derivatives within indexed annuities without mortality or morbidity risks are excluded, as they are carried at fair value. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates, adding a spread to reflect nonperformance risk and subtracting a risk margin to reflect uncertainty inherent in the projected cash flows.
Debt – The fair value of debt is obtained from commercial pricing services. See note 12 for further information on debt.
Significant Unobservable Inputs
Asset Management
Discounted Cash Flow and Direct Capitalization Model
When a discounted cash flow or direct capitalization model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows or the capitalization rate, respectively. Increases in the discount or capitalization rate can significantly lower the fair value of an investment and the contingent consideration obligations; conversely decreases in the discount or capitalization rate can significantly increase the fair value of an investment and the contingent consideration obligations. See note 17 for further discussion of the contingent consideration obligations.
54
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Option Model
When an option model is used to determine fair value, the significant input used in the valuation model is the volatility rate applied to present value the projected cash flows. Increases in the volatility rate can significantly lower the fair value of an investment; conversely decreases in the volatility rate can significantly increase the fair value of an investment.
Consolidated VIEs’ Investments
The significant unobservable inputs used in the fair value measurement of the equity securities, bank loans and bonds are the discount rate and volatility rates applied in the valuation models. These inputs in isolation can cause significant increases or decreases in fair value, which would result in a significantly lower or higher fair value measurement. The discount and volatility rates are determined based on the market rates an investor would expect for a similar investment with similar risks.
NAV
Certain investments and investments of VIEs are valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determine an independent fair value.
Retirement Services
AFS, trading and equity securities
Athene uses discounted cash flow models to calculate the fair value for certain fixed maturity and equity securities. The discount rate is a significant unobservable input because the credit spread includes adjustments made to the base rate. The base rate represents a market comparable rate for securities with similar characteristics. This excludes assets for which fair value is provided by independent broker quotes.
Mortgage loans
Athene uses discounted cash flow models from independent commercial pricing services to calculate the fair value of its mortgage loan portfolio. The discount rate is a significant unobservable input. This approach uses market transaction information and client portfolio-oriented information, such as prepayments or defaults, to support the valuations. For mortgage loans that Athene has entered into an agreement to sell at a specified price, the fair value is based on the estimated proceeds of the sale.
Interest sensitive contract liabilities – embedded derivative
Significant unobservable inputs used in the indexed annuities embedded derivative of the interest sensitive contract liabilities valuation include:
1.Nonperformance risk – For contracts Athene issues, it uses the credit spread, relative to the U.S. Treasury curve based on Athene’s public credit rating as of the valuation date. This represents Athene’s credit risk used in the fair value estimate of embedded derivatives.
2.Option budget – Athene assumes future hedge costs in the derivative’s fair value estimate. The level of option budgets determines the future costs of the options and impacts future policyholder account value growth.
3.Policyholder behavior – Athene regularly reviews the full withdrawal (surrender rate) assumptions. These are based on initial pricing assumptions updated for actual experience. Actual experience may be limited for recently issued products.
Valuation of Underlying Investments
Asset Management
The underlying entities that Apollo manages and invests in are primarily investment companies that account for their investments at estimated fair value.
55
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
On a quarterly basis, valuation committees consisting of members from senior management review and approve the valuation results related to the investments of the funds Apollo manages. Apollo also retains external valuation firms for third-party valuation consulting services, which consist of certain limited procedures that management identifies and requests them to perform. The limited procedures provided by the external valuation firms assist management with validating their valuation results or determining fair value. Apollo performs various back-testing procedures to validate its valuation approaches, including comparisons between expected and observed outcomes, forecast evaluations and variance analyses. However, because of the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.
Credit Investments
Credit investments are generally valued based on third-party vendor prices and/or quoted market prices and valuation models. Valuations using quoted market prices are based on the average of the “bid” and the “ask” quotes provided by multiple brokers wherever possible without any adjustments. Apollo will designate certain brokers to use to value specific securities. In determining the designated brokers, Apollo considers the following: (1) brokers with which Apollo has previously transacted, (2) the underwriter of the security and (3) active brokers indicating executable quotes. In addition, when valuing a security based on broker quotes wherever possible Apollo tests the standard deviation amongst the quotes received and the variance between the concluded fair value and the value provided by a pricing service. When relying on a third-party vendor as a primary source, Apollo (1) analyzes how the price has moved over the measurement period, (2) reviews the number of brokers included in the pricing service’s population, if available, and (3) validates the valuation levels with Apollo’s pricing team and traders.
Debt securities that are not publicly traded or whose market prices are not readily available are valued at fair value utilizing a model-based approach to determine fair value. Valuation approaches used to estimate the fair value of illiquid credit investments also may include the income approach, as described below. The valuation approaches used consider, as applicable, market risks, credit risks, counterparty risks and foreign currency risks.
Equity Investments
The majority of illiquid equity investments are valued using the market approach and/or the income approach, as described below.
Market Approach
The market approach is driven by current market conditions, including actual trading levels of similar companies and, to the extent available, actual transaction data of similar companies. Judgment is required by management when assessing which companies are similar to the subject company being valued. Consideration may also be given to any of the following factors: (1) the subject company’s historical and projected financial data; (2) valuations given to comparable companies; (3) the size and scope of the subject company’s operations; (4) the subject company’s individual strengths and weaknesses; (5) expectations relating to the market’s receptivity to an offering of the subject company’s securities; (6) applicable restrictions on transfer; (7) industry and market information; (8) general economic and market conditions; and (9) other factors deemed relevant. Market approach valuation models typically employ a multiple that is based on one or more of the factors described above.
Enterprise value as a multiple of earnings before interest, taxes, depreciation and amortization (“EBITDA”) is common and relevant for most companies and industries; however, other industry specific multiples are employed where available and appropriate. Sources for gaining additional knowledge related to comparable companies include public filings, annual reports, analyst research reports and press releases. Once a comparable company set is determined, Apollo reviews certain aspects of the subject company’s performance and determines how its performance compares to the group and to certain individuals in the group. Apollo compares certain measurements such as EBITDA margins, revenue growth over certain time periods, leverage ratios and growth opportunities. In addition, Apollo compares the entry multiple and its relation to the comparable set at the time of acquisition to understand its relation to the comparable set on each measurement date.
56
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Income Approach
The income approach provides an indication of fair value based on the present value of cash flows that a business or security is expected to generate in the future. The most widely used methodology for the income approach is a discounted cash flow method. Inherent in the discounted cash flow method are significant assumptions related to the subject company’s expected results, the determination of a terminal value and a calculated discount rate, which is normally based on the subject company’s WACC. The WACC represents the required rate of return on total capitalization, which is comprised of a required rate of return on equity, plus the current tax-effected rate of return on debt, weighted by the relative percentages of equity and debt that are typical in the industry. The most critical step in determining the appropriate WACC for each subject company is to select companies that are comparable in nature to the subject company and the credit quality of the subject company. Sources for gaining additional knowledge about the comparable companies include public filings, annual reports, analyst research reports and press releases. The general formula then used for calculating the WACC considers the after-tax rate of return on debt capital and the rate of return on common equity capital, which further considers the risk-free rate of return, market beta, market risk premium and small stock premium, if applicable. The variables used in the WACC formula are inferred from the comparable market data obtained. The Company evaluates the comparable companies selected and concludes on WACC inputs based on the most comparable company or analyzes the range of data for the investment.
The value of liquid investments, where the primary market is an exchange (whether foreign or domestic), is determined using period end market prices. Such prices are generally based on the close price on the date of determination.
Certain of the funds Apollo manages may also enter into foreign currency exchange contracts, total return swap contracts, credit default swap contracts and other derivative contracts, which may include options, caps, collars and floors. Foreign currency exchange contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. If securities are held at the end of the period, the changes in value are recorded in income as unrealized. Realized gains or losses are recognized when contracts are settled. Total return swap and credit default swap contracts are recorded at fair value as an asset or liability with changes in fair value recorded as unrealized appreciation or depreciation. Realized gains or losses are recognized at the termination of the contract based on the difference between the close-out price of the total return or credit default swap contract and the original contract price. Forward contracts are valued based on market rates obtained from counterparties or prices obtained from recognized financial data service providers.
Retirement Services
AFS and trading securities
The fair values for most marketable securities without an active market are obtained from several commercial pricing services. These are classified as Level 2 assets. The pricing services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, trading activity, credit quality, issuer spreads, bids, offers and other reference data. This category typically includes U.S. and non-U.S. corporate bonds, U.S. agency and government guaranteed securities, CLO, ABS, CMBS and RMBS.
Athene also has fixed maturity securities priced based on indicative broker quotes or by employing market accepted valuation models. For certain fixed maturity securities, the valuation model uses significant unobservable inputs and these are included in Level 3 in the fair value hierarchy. Significant unobservable inputs used include discount rates, issue-specific credit adjustments, material non-public financial information, estimation of future earnings and cash flows, default rate assumptions, liquidity assumptions and indicative quotes from market makers.
Privately placed fixed maturity securities are valued based on the credit quality and duration of comparable marketable securities, which may be securities of another issuer with similar characteristics. In some instances, a matrix-based pricing model is used. These models consider the current level of risk-free interest rates, corporate spreads, credit quality of the issuer and cash flow characteristics of the security. Additional factors such as net worth of the borrower, value of collateral, capital structure of the borrower, presence of guarantees and Athene’s evaluation of the borrower’s ability to compete in its relevant market are also considered. Privately placed fixed maturity securities are classified as Level 2 or 3.
57
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Equity securities
Fair values of publicly traded equity securities are based on quoted market prices and classified as Level 1. Other equity securities, typically private equities or equity securities not traded on an exchange, are valued based on other sources, such as commercial pricing services or brokers, and are classified as Level 2 or 3.
Mortgage loans
Athene estimates fair value monthly using discounted cash flow analysis and rates being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. The discounted cash flow model uses unobservable inputs, including estimates of discount rates and loan prepayments. For mortgage loans that Athene has entered into an agreement to sell at a specified price, the fair value is based on the agreed upon price. Mortgage loans are classified as Level 3.
Investment funds
Investment funds are typically measured using NAV as a practical expedient in determining fair value and are not classified in the fair value hierarchy. The carrying value reflects a pro rata ownership percentage as indicated by NAV in the investment fund financial statements, which may be adjusted if it is determined NAV is not calculated consistent with investment company fair value principles. The underlying investments of the investment funds may have significant unobservable inputs, which may include but are not limited to, comparable multiples and WACC rates applied in valuation models or a discounted cash flow model.
Certain investment funds for which Athene has elected the fair value option are included in Level 3 and are priced based on market accepted valuation models. The valuation models use significant unobservable inputs, which include material non-public financial information, estimation of future distributable earnings and demographic assumptions.
Other investments
The fair values of other investments are determined using a discounted cash flow model using discount rates for similar investments.
Funds withheld at interest embedded derivatives
Funds withheld at interest embedded derivatives represent the right to receive or obligation to pay the total return on the assets supporting the funds withheld at interest or funds withheld liability, respectively, and are analogous to a total return swap with a floating rate leg. The fair value of embedded derivatives on funds withheld and modco agreements is measured as the unrealized gain (loss) on the underlying assets and classified as Level 3.
Derivatives
Derivative contracts can be exchange traded or over the counter. Exchange-traded derivatives typically fall within Level 1 of the fair value hierarchy depending on trading activity. Over-the-counter derivatives are valued using valuation models or an income approach using third-party broker valuations. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates and correlation of the inputs. Athene considers and incorporates counterparty credit risk in the valuation process through counterparty credit rating requirements and monitoring of overall exposure. Athene also evaluates and includes its own nonperformance risk in valuing derivatives. The majority of Athene’s derivatives trade in liquid markets; therefore, it can verify model inputs and model selection does not involve significant management judgment. These are typically classified within Level 2 of the fair value hierarchy.
Interest sensitive contract liabilities embedded derivatives
Embedded derivatives related to interest sensitive contract liabilities with indexed annuity products are classified as Level 3. The valuations include significant unobservable inputs associated with economic assumptions and actuarial assumptions for policyholder behavior.
58
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
AmerUs Closed Block
Athene elected the fair value option for the future policy benefits liability in the AmerUs Closed Block. The valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block’s obligations to the closed block business. This component is the present value of the projected release of required capital and future earnings before income taxes on required capital supporting the AmerUs Closed Block, discounted at a rate which represents a market participant’s required rate of return, less the initial required capital. Unobservable inputs include estimates for these items. The AmerUs Closed Block policyholder liabilities and any corresponding reinsurance recoverable are classified as Level 3.
ILICO Closed Block
Athene elected the fair value option for the ILICO Closed Block. The valuation technique is to set the fair value of policyholder liabilities equal to the fair value of assets. There is an additional component which captures the fair value of the open block’s obligations to the closed block business. This component uses the present value of future cash flows which include commissions, administrative expenses, reinsurance premiums and benefits, and an explicit cost of capital. The discount rate includes a margin to reflect the business and nonperformance risk. Unobservable inputs include estimates for these items. The ILICO Closed Block policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3.
Universal life liabilities and other life benefits
Athene elected the fair value option for certain blocks of universal and other life business ceded to Global Atlantic. Athene uses a present value of liability cash flows. Unobservable inputs include estimates of mortality, persistency, expenses, premium payments and a risk margin used in the discount rates that reflect the riskiness of the business. The universal life policyholder liabilities and corresponding reinsurance recoverable are classified as Level 3.
Other liabilities
Other liabilities include funds withheld liability embedded derivatives, as described above in funds withheld at interest embedded derivatives, and a ceded modco agreement of certain inforce funding agreement contracts for which Athene elected the fair value option. Athene estimates the fair value of the ceded modco agreement by discounting projected cash flows for net settlements and certain periodic and non-periodic payments. Unobservable inputs include estimates for asset portfolio returns and economic inputs used in the discount rate, including risk margin. Depending on the projected cash flows and other assumptions, the contract may be recorded as an asset or liability. The estimate is classified as Level 3.
59
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
8. Deferred Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired
The following represents a rollforward of DAC and DSI by product, and a rollforward of VOBA. See note 9 for more information on Athene’s products.
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| DAC | DSI | VOBA | Total DAC, DSI and VOBA | ||||||||||||||||||||||||||||||||||||||
| (In millions) | Traditional deferred annuities | Indexed annuities | Funding agreements | Other investment-type and other | Indexed annuities | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Additions | |||||||||||||||||||||||||||||||||||||||||
| Amortization | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| DAC | DSI | VOBA | Total DAC, DSI and VOBA | ||||||||||||||||||||||||||||||||||||||
| (In millions) | Traditional deferred annuities | Indexed annuities | Funding agreements | Other investment-type and other | Indexed annuities | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Additions | |||||||||||||||||||||||||||||||||||||||||
| Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Deferred costs related to universal life-type policies and investment contracts with significant revenue streams from sources other than investment of the policyholder funds, including traditional deferred annuities and indexed annuities, are amortized on a constant-level basis for a cohort of contracts using initial premium or deposit. Significant inputs and assumptions are required for determining the expected duration of the cohort and involves using accepted actuarial methods to determine decrement rates related to policyholder behavior for lapses, withdrawals (surrenders) and mortality. The assumptions used to determine the amortization of DAC and DSI are consistent with those used to estimate the related liability balance.
Deferred costs related to investment contracts without significant revenue streams from sources other than investment of policyholder funds are amortized using the effective interest method, which primarily includes funding agreements. The effective interest method requires inputs to project future cash flows, which for funding agreements includes contractual terms of notional value, periodic interest payments based on either fixed or floating interest rates, and duration. For other investment-type contracts which include immediate annuities and assumed endowments without significant mortality risks, assumptions are required related to policyholder behavior for lapses and withdrawals (surrenders).
60
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
9. Long-duration Contracts
Interest sensitive contract liabilities – Interest sensitive contract liabilities primarily include:
▪traditional deferred annuities (including individual and group deferred annuities);
▪indexed annuities consisting of fixed indexed, index-linked variable annuities, and assumed indexed universal life without significant mortality risk;
▪funding agreements; and
▪other investment-type contracts comprising of immediate annuities without significant mortality risk (which includes pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.
The following represents a rollforward of the policyholder account balance by product within interest sensitive contract liabilities. Where explicit policyholder account balances do not exist, the disaggregated rollforward represents the recorded reserve.
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||
| (In millions, except percentages) | Traditional Deferred Annuities | Indexed Annuities | Funding Agreements | Other Investment-type | Total | ||||||||||||||||||||||||
Balance at December 31, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||
| Policy charges | ( | ( | |||||||||||||||||||||||||||
| Surrenders and withdrawals | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
| Benefit payments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
| Interest credited | |||||||||||||||||||||||||||||
| Foreign exchange | ( | ( | ( | ( | |||||||||||||||||||||||||
| Other | ( | ( | ( | ||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Weighted average crediting rate | % | % | % | % | |||||||||||||||||||||||||
| Net amount at risk | $ | $ | $ | $ | |||||||||||||||||||||||||
| Cash surrender value | |||||||||||||||||||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||
| (In millions, except percentages) | Traditional Deferred Annuities | Indexed Annuities | Funding Agreements | Other Investment-type | Total | ||||||||||||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||
| Policy charges | ( | ( | |||||||||||||||||||||||||||
| Surrenders and withdrawals | ( | ( | ( | ( | |||||||||||||||||||||||||
| Benefit payments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
| Interest credited | |||||||||||||||||||||||||||||
| Foreign exchange | |||||||||||||||||||||||||||||
| Other | ( | ||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Weighted average crediting rate | % | % | % | % | |||||||||||||||||||||||||
| Net amount at risk | $ | $ | $ | $ | |||||||||||||||||||||||||
| Cash surrender value | |||||||||||||||||||||||||||||
61
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following is a reconciliation of interest sensitive contract liabilities to the condensed consolidated statements of financial condition:
| March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Traditional deferred annuities | $ | $ | |||||||||
| Indexed annuities | |||||||||||
| Funding agreements | |||||||||||
| Other investment-type | |||||||||||
Reconciling items1 | |||||||||||
| Interest sensitive contract liabilities | $ | $ | |||||||||
1 Reconciling items primarily include embedded derivatives in indexed annuities, unaccreted host contract adjustments on indexed annuities, negative VOBA, sales inducement liabilities, and wholly ceded universal life insurance contracts. | |||||||||||
The following represents policyholder account balances by range of guaranteed minimum crediting rates (“GMCR”), as well as the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums. Athene’s funding agreements and other investment-type products provide Athene with little to no discretionary ability to change the rates of interest payable to the respective policyholder or institution and, as a result, those policyholder account balances are excluded from the following tables.
| March 31, 2026 | |||||||||||||||||||||||
| (In millions) | At Guaranteed Minimum | Greater than | Total | ||||||||||||||||||||
| Traditional deferred annuities | |||||||||||||||||||||||
< | $ | $ | $ | $ | |||||||||||||||||||
| Total traditional deferred annuities | $ | $ | $ | $ | |||||||||||||||||||
| Indexed annuities | |||||||||||||||||||||||
< | $ | $ | $ | $ | |||||||||||||||||||
| Total indexed annuities with GMCR | |||||||||||||||||||||||
Other1 | |||||||||||||||||||||||
| Total indexed annuities | $ | ||||||||||||||||||||||
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR. | |||||||||||||||||||||||
62
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| March 31, 2025 | |||||||||||||||||||||||
| (In millions) | At Guaranteed Minimum | Greater than | Total | ||||||||||||||||||||
| Traditional deferred annuities | |||||||||||||||||||||||
< | $ | $ | $ | $ | |||||||||||||||||||
| Total traditional deferred annuities | $ | $ | $ | $ | |||||||||||||||||||
| Indexed annuities | |||||||||||||||||||||||
< | $ | $ | $ | $ | |||||||||||||||||||
| Total indexed annuities with GMCR | |||||||||||||||||||||||
Other1 | |||||||||||||||||||||||
| Total indexed annuities | $ | ||||||||||||||||||||||
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR. | |||||||||||||||||||||||
63
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Future policy benefits – Future policy benefits consist primarily of payout annuities, including single premium immediate annuities with life contingencies (which include pension group annuities and structured settlements with life contingencies), and whole life insurance contracts.
The following is a rollforward by product within future policy benefits:
| Three months ended March 31, 2026 | |||||||||||||||||
| (In millions, except percentages and years) | Payout Annuities with Life Contingencies | Whole Life | Total | ||||||||||||||
| Present value of expected net premiums | |||||||||||||||||
| Beginning balance, present value of expected net premiums | $ | $ | $ | ||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | |||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | |||||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||
| Effect of actual to expected experience | ( | ( | |||||||||||||||
| Adjusted balance | |||||||||||||||||
| Issuances | |||||||||||||||||
| Interest accrual | |||||||||||||||||
| Net premium collected | ( | ( | |||||||||||||||
| Foreign exchange | ( | ( | |||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||
| Effect of changes in discount rate assumptions | |||||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | ( | ( | |||||||||||||||
| Ending balance, present value of expected net premiums | $ | $ | $ | ||||||||||||||
| Present value of expected future policy benefits | |||||||||||||||||
| Beginning balance, present value of expected future policy benefits | $ | $ | $ | ||||||||||||||
| Effect of changes in discount rate assumptions | |||||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | ( | ( | |||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||
| Effect of actual to expected experience | ( | ||||||||||||||||
| Adjusted balance | |||||||||||||||||
| Issuances | |||||||||||||||||
| Interest accrual | |||||||||||||||||
| Benefit payments | ( | ( | ( | ||||||||||||||
| Foreign exchange | ( | ( | ( | ||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | ( | ||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | ( | ||||||||||||||||
| Ending balance, present value of expected future policy benefits | |||||||||||||||||
| Less: Present value of expected net premiums | |||||||||||||||||
| Net future policy benefits | $ | $ | $ | ||||||||||||||
Weighted-average liability duration (in years) | |||||||||||||||||
| Weighted-average interest accretion rate | % | % | |||||||||||||||
| Weighted-average current discount rate | % | % | |||||||||||||||
| Expected future gross premiums, undiscounted | $ | $ | |||||||||||||||
Expected future gross premiums, discounted1 | |||||||||||||||||
| Expected future benefit payments, undiscounted | |||||||||||||||||
1 Discounted at the original discount rate. | |||||||||||||||||
64
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Three months ended March 31, 2025 | |||||||||||||||||
| (In millions, except percentages and years) | Payout Annuities with Life Contingencies | Whole Life | Total | ||||||||||||||
| Present value of expected net premiums | |||||||||||||||||
| Beginning balance, present value of expected net premiums | $ | $ | $ | ||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | |||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | |||||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||
| Interest accrual | |||||||||||||||||
| Net premium collected | ( | ( | |||||||||||||||
| Foreign exchange | |||||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||
| Effect of changes in discount rate assumptions | |||||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | ( | ( | |||||||||||||||
| Ending balance, present value of expected net premiums | $ | $ | $ | ||||||||||||||
| Present value of expected future policy benefits | |||||||||||||||||
| Beginning balance, present value of expected future policy benefits | $ | $ | $ | ||||||||||||||
| Effect of changes in discount rate assumptions | |||||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | ( | ( | ( | ||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||
| Effect of actual to expected experience | ( | ( | |||||||||||||||
| Adjusted balance | |||||||||||||||||
| Issuances | |||||||||||||||||
| Interest accrual | |||||||||||||||||
| Benefit payments | ( | ( | ( | ||||||||||||||
| Foreign exchange | |||||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | ( | ||||||||||||||
| Effect of foreign exchange on the change in discount rate assumptions | ( | ( | ( | ||||||||||||||
| Ending balance, present value of expected future policy benefits | |||||||||||||||||
| Less: Present value of expected net premiums | |||||||||||||||||
| Net future policy benefits | $ | $ | $ | ||||||||||||||
Weighted-average liability duration (in years) | |||||||||||||||||
| Weighted-average interest accretion rate | % | % | |||||||||||||||
| Weighted-average current discount rate | % | % | |||||||||||||||
| Expected future gross premiums, undiscounted | $ | $ | |||||||||||||||
Expected future gross premiums, discounted1 | |||||||||||||||||
| Expected future benefit payments, undiscounted | |||||||||||||||||
1 Discounted at the original discount rate. | |||||||||||||||||
65
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following is a reconciliation of future policy benefits to the condensed consolidated statements of financial condition:
| March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Payout annuities with life contingencies | $ | $ | |||||||||
| Whole life | |||||||||||
Reconciling items1 | |||||||||||
| Future policy benefits | $ | $ | |||||||||
1 Reconciling items primarily include the deferred profit liability and negative VOBA associated with the liability for future policy benefits. Additionally, it includes term life reserves, fully ceded whole life reserves, and reserves for immaterial lines of business including accident and health and disability, as well as other insurance benefit reserves for no-lapse guarantees with universal life contracts, all of which are fully ceded. | |||||||||||
The following is a reconciliation of premiums and interest expense relating to future policy benefits to the condensed consolidated statements of operations:
| Premiums | |||||||||||
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Payout annuities with life contingencies | $ | $ | |||||||||
| Whole life | |||||||||||
Reconciling items1 | |||||||||||
| Total premiums | $ | $ | |||||||||
| Interest Expense | |||||||||||
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Payout annuities with life contingencies | $ | $ | |||||||||
| Whole life | |||||||||||
Total interest expense | $ | $ | |||||||||
1 Reconciling items primarily relate to immaterial lines of business including term life, fully ceded whole life, and accident and health and disability. | |||||||||||
Significant assumptions and inputs to the calculation of future policy benefits for payout annuities with life contingencies include policyholder demographic data, assumptions for policyholder longevity and policyholder utilization for contracts with deferred lives, and discount rates. For whole life products, significant assumptions and inputs include policyholder demographic data, assumptions for mortality, morbidity, and lapse and discount rates.
Athene bases certain key assumptions related to policyholder behavior on industry standard data adjusted to align with actual company experience, if necessary. At least annually, Athene reviews all significant cash flow assumptions and updates as necessary, unless emerging experience indicates a more frequent review is necessary. The discount rate reflects market observable inputs from upper-medium grade fixed income instrument yields and is interpolated, where necessary, to conform to the duration of Athene’s liabilities.
During the three months ended March 31, 2026, the present value of expected future policy benefits decreased by $1,510 million, which was driven by $1,170 million of benefit payments and a $909 million change in discount rate assumptions related to an increase in market observable rates, partially offset by $476 million of interest accruals and $131 million of issuances.
During the three months ended March 31, 2025, the present value of expected future policy benefits increased by $4 million, which was driven by a $528 million change in discount rate assumptions related to a decrease in market observable rates, $459 million of interest accrual, a $168 million change in foreign exchange and $75 million of issuances, primarily pension group annuities, offset by $1,154 million of benefit payments.
66
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the condensed consolidated statements of operations:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Reserves | $ | ( | $ | ||||||||
| Deferred profit liability | |||||||||||
| Negative VOBA | ( | ||||||||||
| Total remeasurement gains (losses) | $ | $ | |||||||||
During the three months ended March 31, 2026 and 2025, Athene recorded reserve increases of $6 million and $8 million, respectively, on the condensed consolidated statements of operations as a result of the present value of benefits and expenses exceeding the present value of gross premiums.
Market risk benefits – Athene issues and reinsures traditional deferred and indexed annuity products that contain GLWB and GMDB riders that meet the criteria to be classified as market risk benefits.
The following is a rollforward of net market risk benefit liabilities by product:
| Three months ended March 31, 2026 | |||||||||||||||||
| (In millions, except years) | Traditional Deferred Annuities | Indexed Annuities | Total | ||||||||||||||
Balance at December 31, 2025 | $ | $ | $ | ||||||||||||||
| Effect of changes in instrument-specific credit risk | ( | ( | ( | ||||||||||||||
| Balance, beginning of period, before changes in instrument-specific credit risk | |||||||||||||||||
| Issuances | |||||||||||||||||
| Interest accrual | |||||||||||||||||
| Attributed fees collected | |||||||||||||||||
| Benefit payments | ( | ( | ( | ||||||||||||||
| Effect of changes in interest rates | ( | ( | ( | ||||||||||||||
| Effect of changes in equity | |||||||||||||||||
| Effect of actual policyholder behavior compared to expected behavior | |||||||||||||||||
| Balance, end of period, before changes in instrument-specific credit risk | |||||||||||||||||
| Effect of changes in instrument-specific credit risk | |||||||||||||||||
Balance at March 31, 2026 | |||||||||||||||||
| Less: Reinsurance recoverable | |||||||||||||||||
Balance at March 31, 2026, net of reinsurance | $ | $ | $ | ||||||||||||||
| Net amount at risk | $ | $ | |||||||||||||||
Weighted-average attained age of contract holders (in years) | |||||||||||||||||
67
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Three months ended March 31, 2025 | |||||||||||||||||
| (In millions, except years) | Traditional Deferred Annuities | Indexed Annuities | Total | ||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | ||||||||||||||
| Effect of changes in instrument-specific credit risk | ( | ( | ( | ||||||||||||||
| Balance, beginning of period, before changes in instrument-specific credit risk | |||||||||||||||||
| Issuances | |||||||||||||||||
| Interest accrual | |||||||||||||||||
| Attributed fees collected | |||||||||||||||||
| Benefit payments | ( | ( | ( | ||||||||||||||
| Effect of changes in interest rates | |||||||||||||||||
| Effect of changes in equity | |||||||||||||||||
| Effect of actual policyholder behavior compared to expected behavior | |||||||||||||||||
| Balance, end of period, before changes in instrument-specific credit risk | |||||||||||||||||
| Effect of changes in instrument-specific credit risk | |||||||||||||||||
Balance at March 31, 2025 | |||||||||||||||||
| Less: Reinsurance recoverable | |||||||||||||||||
Balance at March 31, 2025, net of reinsurance | $ | $ | $ | ||||||||||||||
| Net amount at risk | $ | $ | |||||||||||||||
Weighted-average attained age of contract holders (in years) | |||||||||||||||||
The following is a reconciliation of market risk benefits to the condensed consolidated statements of financial condition. Market risk benefit assets are included in other assets on the condensed consolidated statements of financial condition.
| March 31, 2026 | |||||||||||||||||
| (In millions) | Asset | Liability | Net Liability | ||||||||||||||
| Traditional deferred annuities | $ | $ | $ | ||||||||||||||
| Indexed annuities | |||||||||||||||||
| Total | $ | $ | $ | ||||||||||||||
| March 31, 2025 | |||||||||||||||||
| (In millions) | Asset | Liability | Net Liability | ||||||||||||||
| Traditional deferred annuities | $ | $ | $ | ||||||||||||||
| Indexed annuities | |||||||||||||||||
| Total | $ | $ | $ | ||||||||||||||
During the three months ended March 31, 2026, net market risk benefit liabilities increased by $111 million, which was primarily driven by $116 million of changes in equity, $106 million in fees collected from policyholders, $64 million of issuances and $48 million of interest accruals, partially offset by $216 million of changes in instrument-specific credit risk.
During the three months ended March 31, 2025, net market risk benefit liabilities increased by $362 million, which was primarily driven by an increase of $189 million related to changes in the risk-free discount rate across the curve, $93 million in fees collected from policyholders, and $87 million of issuances.
The determination of the fair value of market risk benefits requires the use of inputs related to fees and assessments and assumptions in determining the projected benefits in excess of the projected account balance. Judgment is required for both economic and actuarial assumptions, which can be either observable or unobservable, that impact future policyholder account growth.
Economic assumptions include interest rates and implied volatilities throughout the duration of the liability. For indexed annuities, assumptions also include projected equity returns which impact cash flows attributable to indexed strategies, implied equity volatilities, expected index credits on the next policy anniversary date and future equity option costs. Assumptions
68
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
related to the level of option budgets used for determining the future equity option costs and the impact on future policyholder account value growth are considered unobservable inputs.
Policyholder behavior assumptions are unobservable inputs and are established using accepted actuarial valuation methods to estimate withdrawals (surrender rate) and income rider utilization. Assumptions are generally based on industry data and pricing assumptions which are updated for actual experience, if necessary. Actual experience may be limited for recently issued products.
All inputs are used to project excess benefits and fees over a range of risk-neutral, stochastic interest rate scenarios. For indexed annuities, stochastic equity return scenarios are also included within the range. A risk margin is incorporated within the discount rate to reflect uncertainty in the projected cash flows such as variations in policyholder behavior, as well as a credit spread to reflect nonperformance risk, which is considered an unobservable input. Athene uses its public credit rating relative to the U.S. Treasury curve as of the valuation date to reflect its nonperformance risk in the fair value estimate of market risk benefits.
The following summarizes the unobservable inputs for market risk benefits:
| March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except percentages) | Fair Value | Valuation Technique | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of an Increase in the Input on Fair Value | ||||||||||||||||||||||||||||||||||||||||
| Market risk benefits, net | $ | Discounted cash flow | Nonperformance risk | % | % | % | 1 | Decrease | |||||||||||||||||||||||||||||||||||||||
| Option budget | % | % | % | 2 | Decrease | ||||||||||||||||||||||||||||||||||||||||||
| Surrender rate | % | % | % | 2 | Decrease | ||||||||||||||||||||||||||||||||||||||||||
| Utilization rate | % | % | % | 3 | Increase | ||||||||||||||||||||||||||||||||||||||||||
| March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except percentages) | Fair Value | Valuation Technique | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of an Increase in the Input on Fair Value | ||||||||||||||||||||||||||||||||||||||||
| Market risk benefits, net | $ | Discounted cash flow | Nonperformance risk | % | % | % | 1 | Decrease | |||||||||||||||||||||||||||||||||||||||
| Option budget | % | % | % | 2 | Decrease | ||||||||||||||||||||||||||||||||||||||||||
| Surrender rate | % | % | % | 2 | Decrease | ||||||||||||||||||||||||||||||||||||||||||
| Utilization rate | % | % | % | 3 | Increase | ||||||||||||||||||||||||||||||||||||||||||
1 The nonperformance risk weighted average is based on the cash flows underlying the market risk benefit reserve. | |||||||||||||||||||||||||||||||||||||||||||||||
2 The option budget and surrender rate weighted averages are calculated based on projected account values. | |||||||||||||||||||||||||||||||||||||||||||||||
3 The utilization of GLWB withdrawals represents the estimated percentage of policyholders that are expected to use their income rider over the duration of the contract, with the weighted average based on current account values. | |||||||||||||||||||||||||||||||||||||||||||||||
10. Profit Sharing Payable
Profit sharing payable, and those of consolidated VIEs, are recorded within accounts payable, accrued expenses, and other liabilities, and accounts payable, accrued expenses, and other liabilities of consolidated VIEs, respectively, in the condensed consolidated statements of financial condition. The below is a roll-forward of the profit-sharing payable balance:
| (In millions) | Total | ||||
Profit sharing payable, January 1, 2026 | $ | ||||
| Profit sharing expense | |||||
| Payments/other | ( | ||||
Profit sharing payable, March 31, 2026 | $ | ||||
69
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Profit sharing expense includes (1) changes in amounts due to current and former employees entitled to a share of performance revenues in funds managed by Apollo and (2) changes to the fair value of the contingent consideration obligations recognized in connection with certain of the Company’s acquisitions. Profit sharing payable excludes the potential return of profit-sharing distributions that would be due if certain funds were liquidated, which is recorded in due from related parties in the condensed consolidated statements of financial condition.
The Company requires that a portion of certain of the performance revenues distributed to the Company’s employees be used to purchase restricted shares of common stock issued under its Equity Plan. Prior to distribution of the performance revenues, the Company records the value of the equity-based awards expected to be granted in other assets and accounts payable, accrued expenses, and other liabilities.
11. Income Taxes
The Company’s income tax provision totaled $1,694 million and $243 million for the three months ended March 31, 2026 and 2025, respectively. The Company’s effective income tax rate was approximately 598.6 % and 20.6 % for the three months ended March 31, 2026 and 2025, respectively.
On January 5, 2026, the OECD issued guidance exempting U.S.-parented groups from the IIR or UTPR taxes under the Pillar Two regime. The U.K. government has publicly announced its intention to enact this guidance into law. While the precise timing of such enactment is subject to the U.K. government’s legislative process, once enacted, the Company expects that Athene and ACRA Bermuda entities would be exempt from the IIR and UTPR taxes in the U.K. In light of these developments, and the Company’s expectation that maintaining alignment between the Bermuda CIT and Pillar Two tax groups would no longer be beneficial, in January 2026, the Company revoked ACRA’s election to be subject to the Bermuda CIT.
Although the Company believes such an outcome would be unlikely, if the U.K. government does not enact the announced legislation, or subsequently amends its legislation in a manner that does not conform to the OECD guidance, the Company expects to re-elect ACRA into the Bermuda CIT regime at that time and utilize the Bermuda deferred tax assets to offset any resulting Bermuda CIT or Pillar Two cash tax obligations.
As a result of the foregoing, in the first quarter of 2026, the Company recorded a full valuation allowance against its Bermuda deferred tax assets, as the Company no longer expects Athene or ACRA to incur Bermuda CIT or Pillar Two tax expense against which such deferred tax assets could be utilized. This resulted in a reduction to other assets and a corresponding increase to the income tax provision equal to the net amount of the Bermuda deferred tax assets of $1.7 billion.
Under U.S. GAAP, a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. As of March 31, 2026, the Company recorded $3 million of unrecognized tax benefits for uncertain tax positions. Approximately all of the unrecognized tax benefits, if recognized, would impact the effective tax rate.
The primary jurisdictions in which the Company operates and incurs income taxes are the U.S., the U.K. and Bermuda. There are no material unremitted earnings with respect to the U.K. or other foreign jurisdictions.
In the normal course of business, the Company is subject to examination by federal, state, local and foreign tax authorities. As of March 31, 2026, the Company’s U.S. federal, state, local and foreign income tax returns for the years 2022 through 2024 are open under the general statute of limitations provisions and therefore subject to examination. Currently, the Internal Revenue Service (“IRS”) is examining the tax returns of the Company and certain subsidiaries for tax years 2019 to 2023. The State and City of New York are examining certain subsidiaries’ tax returns for tax years 2014 to 2023. The U.K. tax authorities are currently examining certain subsidiaries’ tax returns for tax years 2015 to 2022.
The Company received a draft Notice of Proposed Adjustment (“NOPA”) from the IRS on April 13, 2026 proposing a significant increase to taxable income for tax years 2019 through 2021. The proposed adjustment primarily relates to the inclusion of additional income from some of the Company’s minority interest investments in foreign entities. While the 2022 and 2023 tax years are also under examination by the IRS on the same issue, the IRS has not yet proposed any adjustments to the Company’s historical position. The Company disagrees with the IRS’ position and intends to pursue all available administrative and judicial remedies. There can be no assurance as to the outcome of these IRS examinations, any subsequent challenge, or the impact of adverse judicial rulings in other cases. At this time, the Company cannot reasonably estimate the
70
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
actual potential loss. If the Company is required to pay additional federal and state tax, interest, and, potentially, penalties, then such amounts could be material.
There are other routine examinations ongoing in other state, local, and foreign jurisdictions in which the Company operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. The Company continues to monitor the progress of ongoing discussions with tax authorities. No provisions with respect to these examinations have been recorded.
12. Debt
The Company’s debt consisted of the following:
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||
| (In millions, except percentages) | Maturity Date | Outstanding Balance | Fair Value | Outstanding Balance | Fair Value | |||||||||||||||||||||||||||
| Asset Management | ||||||||||||||||||||||||||||||||
| Debt – Recourse | ||||||||||||||||||||||||||||||||
| May 27, 2026 | $ | $ | 2 | $ | $ | 2 | ||||||||||||||||||||||||||
| February 15, 2029 | 2 | 2 | ||||||||||||||||||||||||||||||
| June 5, 2030 | 2 | 2 | ||||||||||||||||||||||||||||||
| January 15, 2031 | 2 | 2 | ||||||||||||||||||||||||||||||
| November 15, 2033 | 2 | 2 | ||||||||||||||||||||||||||||||
| August 12, 2035 | 2 | 2 | ||||||||||||||||||||||||||||||
| March 30, 2036 | 2 | 2 | ||||||||||||||||||||||||||||||
| March 15, 2048 | 2 | 2 | ||||||||||||||||||||||||||||||
| May 21, 2054 | 2 | 2 | ||||||||||||||||||||||||||||||
| September 15, 2053 | 3 | 3 | ||||||||||||||||||||||||||||||
December 15, 2054 | 2 | 2 | ||||||||||||||||||||||||||||||
| Debt – Nonrecourse | January 21, 2027 | 4 | 4 | |||||||||||||||||||||||||||||
| Retirement Services | ||||||||||||||||||||||||||||||||
| January 12, 2028 | 2 | 2 | ||||||||||||||||||||||||||||||
| April 3, 2030 | 2 | 2 | ||||||||||||||||||||||||||||||
| January 15, 2031 | 2 | 2 | ||||||||||||||||||||||||||||||
| February 1, 2033 | 2 | 2 | ||||||||||||||||||||||||||||||
| January 15, 2034 | 2 | 2 | ||||||||||||||||||||||||||||||
| May 25, 2051 | 2 | 2 | ||||||||||||||||||||||||||||||
| May 15, 2052 | 2 | 2 | ||||||||||||||||||||||||||||||
| April 1, 2054 | 2 | 2 | ||||||||||||||||||||||||||||||
| May 19, 2055 | 2 | 2 | ||||||||||||||||||||||||||||||
| October 15, 2054 | 2 | 2 | ||||||||||||||||||||||||||||||
| June 28, 2055 | 2 | 2 | ||||||||||||||||||||||||||||||
| March 30, 2064 | 3 | 3 | ||||||||||||||||||||||||||||||
| Total Debt | $ | $ | $ | $ | ||||||||||||||||||||||||||||
1 Interest rate is calculated as weighted average annualized. | ||||||||||||||||||||||||||||||||
2 Fair value is based on broker quotes. These notes are valued using Level 2 inputs based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from external pricing services. | ||||||||||||||||||||||||||||||||
3 Fair value is based on quoted market prices. These notes are classified as a Level 1 liability within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
4 Represents the nonrecourse warehouse facility of a consolidated entity. The facility is secured by the assets of the entity and creditors do not have recourse to the general credit of AAM or any of its subsidiaries. The carrying amount of the facility approximates fair value due to the short-term nature and variable rate structure of the facility and is classified as a Level 3 liability within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
71
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Asset Management – Notes Issued
On March 30, 2026, AGM issued $750 million aggregate principal amount of its 5.700 % Senior Notes due 2036 (the “2036 Senior Notes”). The 2036 Senior Notes bear interest at a rate of 5.700 % per annum and interest is payable semi-annually in arrears on March 30 and September 30 of each year, commencing on September 30, 2026. The 2036 Senior Notes will mature on March 30, 2036.
The indentures governing the Asset Management notes restrict the ability of AGM, AMH and the guarantors of the notes to incur indebtedness secured by liens on voting stock or profit participating equity interests of their respective subsidiaries, or merge, consolidate or sell, transfer or lease assets. The indentures also provide for customary events of default.
Retirement Services – Notes Issued
AHL Senior Notes – AHL’s senior unsecured notes are callable by AHL at any time. If called prior to a defined period before the scheduled maturity date, typically three or six months, the price is equal to the greater of (1) 100 % of the principal and any accrued and unpaid interest and (2) an amount equal to the sum of the present values of remaining scheduled payments, discounted from the scheduled payment date to the redemption date at the treasury rate plus a spread (as defined in the applicable prospectus supplement) and any accrued and unpaid interest.
AHL Subordinated Notes – AHL has fixed-rate reset subordinated notes outstanding, which pay interest at the initially stated fixed rate until the interest rate reset dates, at which point the interest rate resets to the Five-Year U.S. Treasury Rate plus a spread. Reset terms are as defined in the applicable prospectus supplement. AHL may defer interest payments on the subordinated notes for up to consecutive years.
Credit and Liquidity Facilities
The following table represents the Company’s credit and liquidity facilities as of March 31, 2026:
| Instrument/Facility | Maturity Date | Administrative Agent | Key terms | ||||||||
Asset Management – AGM credit facility | November 21, 2029 | Citibank | The borrowing capacity under the AGM credit facility is $ | ||||||||
Retirement Services – AHL credit facility | June 30, 2028 | Citibank | The borrowing capacity under the AHL credit facility is $ | ||||||||
Retirement Services – AHL liquidity facility | June 26, 2026 | Wells Fargo Bank | The borrowing capacity under the AHL liquidity facility is $ | ||||||||
Asset Management – Credit Facility
On November 21, 2024, AGM and AMH, as parent borrower and subsidiary borrower, respectively, entered into a $1.25 billion revolving credit facility with Citibank, N.A., as administrative agent, which matures on November 21, 2029 (“AGM credit facility”). As of March 31, 2026, AGM and AMH, as borrowers under the facility, could incur incremental facilities in an aggregate amount not to exceed $250 million plus additional amounts so long as AGM and AMH were in compliance with a net leverage ratio not to exceed 4.00 to 1.00.
As of March 31, 2026 and December 31, 2025, there were no
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APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Retirement Services – Credit and Liquidity Facilities
AHL Credit Facility—On June 30, 2023, AHL, ALRe, AUSA and AARe entered into a five-year revolving credit agreement with a syndicate of banks and Citibank, N.A. as administrative agent (“AHL credit facility”). The AHL credit facility is unsecured and has a commitment termination date of June 30, 2028, subject to up to two one-year extensions, in accordance with the terms of the AHL credit facility. In connection with the AHL credit facility, AHL and AUSA guaranteed all of the obligations of AHL, ALRe, AARe and AUSA under the AHL credit facility and the related loan documents, and ALRe and AARe guaranteed certain of the obligations of AHL, ALRe, AARe and AUSA under the AHL credit facility and the related loan documents. The borrowing capacity under the AHL credit facility is $1.25 billion, subject to being increased up to $1.75 billion in total on the terms described in the AHL credit facility.
The AHL credit facility contains various standard covenants with which Athene must comply, including the following:
1.Consolidated debt-to-capitalization ratio not to exceed 35 %;
2.Minimum consolidated net worth of no less than $14.8 billion; and
3.Restrictions on Athene’s ability to incur liens, with certain exceptions.
Interest accrues on outstanding borrowings at either the adjusted term secured overnight financing rate plus a margin or the base rate plus a margin, with the applicable margin varying based on AHL’s debt rating. Rates and terms are as defined in the AHL credit facility. As of March 31, 2026 and December 31, 2025, there were no
AHL Liquidity Facility—On June 27, 2025, AHL, AARe, ALRe and AAIA entered into a revolving credit agreement with a syndicate of banks and Wells Fargo Bank, National Association, as administrative agent, (“AHL liquidity facility”), which replaced the previous credit agreement dated as of June 28, 2024 and the commitments under it, which expired on June 27, 2025. The AHL liquidity facility is unsecured and has a commitment termination date of June 26, 2026, subject to any extensions of additional 364 -day periods with consent of extending lenders and/or “term-out” of outstanding loans (by which, at Athene’s election, the outstanding loans may be converted to term loans which shall have a maturity of up to one year after the original maturity date), in each case in accordance with the terms of the AHL liquidity facility. In connection with the AHL liquidity facility, AARe guaranteed all of the obligations of each other borrower under the AHL liquidity facility and the related loan documents. The AHL liquidity facility is used for liquidity and working capital needs to meet short-term cash flow and investment timing differences. The borrowing capacity under the AHL liquidity facility is $2.6 billion, subject to being increased up to $3.1 billion in total on the terms described in the AHL liquidity facility. The AHL liquidity facility contains various standard covenants with which Athene must comply, including the following:
1.AARe minimum consolidated net worth of no less than $23.2 billion; and
2.Restrictions on Athene’s ability to incur liens, with certain exceptions.
Interest accrues on outstanding borrowings at the adjusted term secured overnight financing rate plus a margin or the base rate plus a margin, with applicable margin varying based on AARe’s financial strength rating. Rates and terms are as defined in the AHL liquidity facility. As of March 31, 2026 and December 31, 2025, there were no
Interest Expense
The following table presents the interest expense incurred related to the Company’s debt:
| Three months ended March 31, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Asset Management | $ | $ | |||||||||
Retirement Services1 | |||||||||||
| Total Interest Expense | $ | $ | |||||||||
Note: Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable. | |||||||||||
1 Interest expense for Retirement Services is included in policy and other operating expenses on the condensed consolidated statements of operations. | |||||||||||
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APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
13. Equity-Based Compensation
Under the Equity Plan, the Company grants equity-based awards to employees. Equity-based awards granted to employees and non-employees as compensation are measured based on the grant date fair value of the award, which considers the public share price of AGM’s common stock subject to certain discounts, as applicable.
The Company grants both service-based and performance-based awards. The estimated total grant date fair value for service-based awards is charged to compensation expense on a straight-line basis over the vesting period, which is generally to five years from the date of grant. Performance-based awards are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance metrics are met or deemed probable. Equity-based awards that do not require future service are expensed immediately.
For the three months ended March 31, 2026 and 2025, the Company recorded equity-based compensation expense of $232 million and $149 million, respectively. As of March 31, 2026, there was $1.3 billion of estimated unrecognized compensation expense related to unvested RSU awards. This cost is expected to be recognized over a weighted-average period of 2.4 years.
Service-Based Awards
During the three months ended March 31, 2026 and 2025, the Company awarded 6.6 million and 3.0 million of service-based RSUs, with a grant date fair value of $847 million and $481 million, respectively.
During the three months ended March 31, 2026 and 2025, the Company recorded equity-based compensation expense on service-based RSUs of $169 million and $118 million, respectively.
Performance-Based Awards
During the three months ended March 31, 2026 and 2025, there were no awards of performance-based RSUs.
During the three months ended March 31, 2026 and 2025, the Company recorded compensation expense on performance-based awards of $17 million and $16 million, respectively. These awards primarily vest subject to continued employment and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation expense.
In December 2021, the Company awarded one-time grants to the then Co-Presidents of AAM of 6.0 million RSUs which vest on a cliff basis subject to continued employment over five years , with 2.0 million of those RSUs also subject to the Company’s achievement of certain fee related earnings and spread related earnings per share metrics. The Company records approximately $14 million and $6 million of compensation expense each quarter for these service-based awards and performance-based awards, respectively.
The following table summarizes RSU activity:
| Unvested | Weighted Average Grant Date Fair Value | Vested | Total Number of RSUs Outstanding | ||||||||||||||||||||
| Balance at January 1, 2026 | $ | ||||||||||||||||||||||
| Granted | |||||||||||||||||||||||
| Forfeited | ( | ( | ( | ||||||||||||||||||||
| Vested | ( | ||||||||||||||||||||||
| Issued | — | — | ( | ( | |||||||||||||||||||
| Balance at March 31, 2026 | $ | ||||||||||||||||||||||
Restricted Stock Awards
The Company also grants certain restricted stock awards tied to profit sharing arrangements. During the three months ended March 31, 2026 and 2025, the Company awarded 0.1 million and 0.1 million restricted stock awards, respectively, from profit sharing arrangements with a grant date fair value of $16 million and $6 million, respectively.
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APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
During the three months ended March 31, 2026 and 2025, the Company recorded compensation expense related to restricted stock awards from profit sharing arrangements of $27 million and $9 million, respectively.
14. Equity
Common Stock
Holders of common stock are entitled to participate in dividends from the Company on a pro rata basis.
During the three months ended March 31, 2026 and 2025, the Company issued shares of common stock in settlement of vested RSUs. The Company has generally allowed holders of vested RSUs and exercised share options to settle their tax liabilities by reducing the number of shares of common stock issued to them, which the Company refers to as “net share settlement.” Additionally, the Company has generally allowed holders of share options to settle their exercise price by reducing the number of shares of common stock issued to them at the time of exercise by an amount sufficient to cover the exercise price. The net share settlement results in a liability for the Company and a corresponding adjustment to retained earnings.
On February 8, 2024, the AGM board of directors terminated the Company’s prior share repurchase program and approved a new share repurchase program, pursuant to which, the Company is authorized to repurchase up to $3.0 billion of shares of its common stock to opportunistically reduce the Company’s share count or offset the dilutive impact of share issuances under the Company’s equity incentive plans.
Effective February 9, 2026, the AGM board of directors terminated the Company’s prior share repurchase program and approved a new share repurchase program, pursuant to which, the Company is authorized to repurchase up to $4.0 billion of shares of its common stock to opportunistically reduce the Company’s share count or offset the dilutive impact of share issuances under the Company’s equity incentive plans. Shares of common stock may be repurchased from time to time in open market transactions, in privately negotiated transactions, pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act, or otherwise, as well as through reductions of shares that otherwise would have been issued to participants under the Company’s Equity Plan in order to satisfy associated tax obligations. The repurchase program does not obligate the Company to make any repurchases at any specific time. The program is effective until the aggregate repurchase amount that has been approved by the AGM board of directors has been expended and may be suspended, extended, modified or discontinued at any time.
The table below outlines the share activity:
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Shares of common stock issued in settlement of vested RSUs and options exercised1 | |||||||||||
Reduction of shares of common stock issued2 | ( | ( | |||||||||
| Issuance of shares of common stock for equity-based awards | |||||||||||
1 The gross value of shares issued was $ | |||||||||||
2 Cash paid for tax liabilities associated with net share settlement was $ | |||||||||||
During the three months ended March 31, 2026 and 2025, 5,182,831 and 1,392,000 shares of common stock, respectively, were repurchased in open market transactions as part of the publicly announced share repurchase programs discussed above, and such shares were subsequently canceled by the Company. The Company paid $632 million and $193 million for these open market share repurchases during the three months ended March 31, 2026 and 2025, respectively.
During the three months ended March 31, 2025, the Company issued 540,177 shares of common stock in settlement of a deferred consideration obligation.
75
APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Mandatory Convertible Preferred Stock
On August 11, 2023, the Company issued 28,750,000 shares, or $1.4 billion aggregate liquidation preference, of its 6.75 % Series A Mandatory Convertible Preferred Stock (the “Mandatory Convertible Preferred Stock”).
Dividends on the Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if declared by the AGM board of directors, or an authorized committee thereof, at an annual rate of 6.75 % on the liquidation preference of $50.00 per share, and may be paid in cash or, subject to certain limitations, in shares of common stock or, subject to certain limitations, any combination of cash and shares of common stock. If declared, dividends on the Mandatory Convertible Preferred Stock will be payable quarterly on January 31, April 30, July 31 and October 31 of each year, commencing on October 31, 2023, and ending on, and including, July 31, 2026. The first dividend payment on October 31, 2023 was $0.7500 per share of Mandatory Convertible Preferred Stock, with subsequent quarterly cash dividends expected to be $0.8438 per share of Mandatory Convertible Preferred Stock.
Unless converted earlier in accordance with its terms, each share of Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is expected to be July 31, 2026, into between 0.5069 shares and 0.6083 shares of common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations related to the Mandatory Convertible Preferred Stock (the “Certificate of Designations”). The number of shares of common stock issuable upon conversion will be determined based on the average volume weighted average price per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to July 31, 2026.
Holders of shares of Mandatory Convertible Preferred Stock have the option to convert all or any portion of their shares of Mandatory Convertible Preferred Stock at any time. The conversion rate applicable to any early conversion may in certain circumstances be increased to compensate holders of the Mandatory Convertible Preferred Stock for certain unpaid accumulated dividends as described in the Certificate of Designations.
If a Fundamental Change, as defined in the Certificate of Designations, occurs on or prior to July 31, 2026, then holders of the Mandatory Convertible Preferred Stock will be entitled to convert all or any portion of their Mandatory Convertible Preferred Stock at the Fundamental Change Conversion Rate for a specified period of time and to also receive an amount to compensate them for certain unpaid accumulated dividends and any remaining future scheduled dividend payments.
The Mandatory Convertible Preferred Stock is not subject to redemption at the Company’s option.
As of March 31, 2026 and December 31, 2025, there were 28,749,665 28,749,665
Warrants
In 2022, the Company issued warrants in a private placement exercisable for up to 12.5 million shares of common stock at an exercise price of $82.80 per share. In April 2025, the Company issued 1,080,041 shares of common stock in relation to a cashless exercise of 2.6 million vested warrants issued in 2022. As of March 31, 2026, pursuant to certain anti-dilution provisions, the exercise price for the warrants was adjusted to $82.56 . As of March 31, 2026, warrants exercisable for 9.9 million shares of common stock were vested and exercisable.
In November 2024, the Company issued warrants in a private placement exercisable for up to 2.9 million shares of common stock at an exercise price of $173.51 per share. The warrants are exercisable on the issuance date and each of the first, second, third, fourth, fifth and sixth anniversaries thereof. As of March 31, 2026, warrants exercisable for 0.8 million shares of common stock were vested and exercisable. Each warrant, to the extent exercised, will be settled on a “cashless net exercise basis.” The warrants will expire on the seventh anniversary of the issuance date, with any vested but unexercised warrants being automatically exercised at such time if the trading price of common stock is above the exercise price.
Donor-Advised Fund
In February 2025, the Company established a donor-advised fund (the “Apollo DAF”) as part of its ongoing commitment to philanthropy. The Company issued 1,213,003 shares of common stock in February 2025 to fund the Apollo DAF.
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APOLLO GLOBAL MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Dividends and Distributions
Outlined below is information regarding quarterly dividends and distributions (in millions, except per share data).
| Dividend Declaration Date | Dividend per Share of Common Stock | Payment Date | Dividend to Common Stockholders | Distribution Equivalents on Participating Securities | |||||||||||||||||||
| February 4, 2025 | $ | February 28, 2025 | $ | $ | |||||||||||||||||||
| May 2, 2025 | May 30, 2025 | ||||||||||||||||||||||
| August 5, 2025 | August 29, 2025 | ||||||||||||||||||||||
| November 4, 2025 | November 28, 2025 | ||||||||||||||||||||||
| Year ended December 31, 2025 | $ | $ | $ | ||||||||||||||||||||
| February 9, 2026 | $ | February 27, 2026 | $ | $ | |||||||||||||||||||