Key facts
- Apollo Global Management's adjusted net income rose 10% year-over-year to $2.11 per share in Q2.
- Fee-related earnings reached a quarterly record of $785 million, up 25%.
- Insurance asset spread also hit a quarterly record of $877 million, up 7%.
- Principal investing income dropped to $16 million from $75 million in Q1.
- Apollo attracted $38 billion in new capital in the second quarter.
Apollo Global Management reported a 10% increase in adjusted net income to $2.11 per share for the second quarter, driven by strong performance in its fee-related earnings and insurance business. Fee-related earnings rose 25% to $785 million, while the spread on insurance assets increased 7% to $877 million, with both metrics reaching quarterly records. The company also noted record fees from its direct lending and asset-backed finance unit.
However, Apollo's principal investing income, which reflects profits from selling its own investments, significantly declined to $16 million from $75 million in the previous quarter and $47 million a year ago. The firm attributed this slowdown to a more challenging environment for asset sales, stating that some divestments were "prudently delayed" due to less accommodative market conditions for monetization.
Despite the slower asset sales, Apollo's asset management arm attracted $38 billion in fresh capital during the quarter. This inflow was partly fueled by multi-asset securitization strategies, including new vehicles marketed as replacements for collateralized loan obligations, as well as credit products for institutional investors and its latest private equity fund. Wealthy individuals contributed $3 billion to private credit strategies, a decrease from the prior quarter.