Apollo Global Management recorded a 13% rise in adjusted net income for the fourth quarter, bolstered by fresh client capital and robust debt origination activity, the firm said on Monday.
For the final three months of the year Apollo posted adjusted net income of $1.54 billion, or $2.47 per share, up from $1.36 billion, or $2.22 per share, in the same period a year earlier.
Quarterly performance was underpinned by the origination of $97 billion in new loans and other investments, the company said in a statement. Apollo also reported it brought in $42 billion during the quarter, a level of inflows that lifted the firm’s total assets under management to $938 billion.
Management has publicly set growth milestones for the coming years. CEO Marc Rowan has established targets to manage $1 trillion by 2026 and $1.5 trillion by 2029.
Revenue mix and fee trends
Fee-related earnings from managing assets and arranging debt and equity transactions reached $690 million in the quarter, representing a 25% increase compared with the year-earlier period. The capital solutions unit, which provides a range of credit instruments including direct lending and asset-backed finance, generated $226 million in fees during the quarter.
Apollo highlighted performance from its private funds as well. Its hybrid value fund, which offers financing that sits between debt and equity, delivered returns of 3.6% in the quarter, while its flagship private-equity fund returned 1.9%.
Management fees tied to equity investments rose 42% year-on-year, but remained at less than half the level of fees generated by the firm’s credit business.
Retail and high-net-worth flows
Demand from wealthy individual investors continued to be an important contributor to inflows. Apollo reported $4 billion of quarterly inflows into its business focused on semi-liquid products and alternatives to traditional government or corporate bonds. These semi-liquid offerings allow investors to receive periodic payouts while accessing alternative exposures.
Market context and investor concerns
Markets were volatile last week amid concerns that disruption from artificial intelligence could weaken investment cases in large sectors such as software. Those jitters reached asset managers broadly and prompted several peers to disclose the weighting of software holdings in their portfolios.
Within that environment, Apollo’s quarter reflected a mix of growth in fee-related earnings and concentration of revenue generation toward credit-oriented businesses.
Overall, Apollo’s fourth-quarter results show elevated deal activity and substantial investor demand for certain private and semi-liquid products, while fee income remains more heavily weighted to the firm’s credit operations.