Apollo Global Management (NYSE: APO) said today it originated a record $40 billion of private credit, a key growth area for the firm.
In a conference call with investors, it said fee-related earnings rose 16 percent to $462 million, fueled by growth in management fees from Athene clients, third-party fundraising and capital invested across Apollo’s yield and hybrid strategies.
The firm’s Athene insurance arm helped reduce its exposure to floating rate debt and supplement its alternative investment returns. Its spread-related earnings increased 19 percent to $817 million through March.
“With visible momentum across the platform, we’re confident in our ability to deliver on our financial targets for the year,” Chief Executive Officer Marc Rowan said in the statement.
The first quarter followed a record year for the alternative-asset manager, which made more money in 2023 than it did in the preceding decade. Rowan has said Apollo would originate $200 billion to $250 billion of private credit annually in five years, up from about $100 billion at the end of last year, setting a new growth target on a strategic priority for the firm.
Assets under management increased 12 percent from a year earlier to $671 billion. Fee-generating assets under management reached $506 billion.
Income from selling private equity assets remained slow, with Apollo reporting $21 million of principal investing income for the period.
Other notable statistics reported on the call included:
- Credit assets under management rose $63 billion to $501 billion
- Equity assets increased $6 billion to $107 billion, while hybrid assets rose by $5 billion to $64 billion
- The direct origination portfolio increased 3.9 percent and the hybrid value strategy rose four percent
- Flagship private equity gained 2.8 percent
- Dry powder was $65 billion at the end of March
