Apollo Global Management Inc said on Wednesday that its third-quarter adjusted net income jumped nearly 23% year-on-year amid strong growth in management fees and earnings from its retirement services business.
Apollo's adjusted net income rose to $1.05 billion from $850 million a year earlier. That resulted in adjusted net income per share of $1.71, which missed the average analyst estimate of $1.77, according to LSEG data.
Fee-related earnings rose 29% to a quarterly record $472 million driven by increased management fees from Apollo managing more assets. Total assets under management were up nearly 21% to $631 billion.
Spread-related earnings, which encompasses Apollo's income from investing the capital of annuities provider Athene, reached a quarterly record of $873 million, up nearly 36%. That growth was driven partly by strong demand for Athene's annuities and investment gains buoyed by higher interest rates.
Like its peers, Apollo struggled to sell assets from its private equity business amid volatility caused by inflation, geopolitical tensions and rising rates. Principal investing income fell 92% to $4 million.
Blackstone Inc last month reported a steeper-than-expected 12% drop in earnings owing to muted asset sales.
During the quarter, Apollo said its private equity funds appreciated by 2.7%, corporate credit funds rose 2.6% and its debt and equity funds gained 3.8%. By contrast, Blackstone's private equity portfolio rose 2.4%, while liquid credit funds added 3.3%.
Apollo reported a net income of $660 million under generally accepted accounting principles (GAAP), compared with a net loss of $563 million a year earlier, owing to a sharp decline in future policy expenses at Athene.
It raised $33 billion of new capital and had unspent capital of $59 billion.
