Executive Summary

Q4 2024 delivered record quarterly non-GAAP earnings: FRE $554mm ($0.90/share), SRE $841mm ($1.37/share), and ANI $1,360mm ($2.22/share), with AUM reaching $751bn; fee-related momentum was driven by management fee growth and Capital Solutions, while SRE reflected robust net investment spread and alts returns .
GAAP diluted EPS was $2.39 on total revenues of $5.283bn; vs prior quarter, diluted EPS rose to $2.39 from $1.29, while net spread compressed to 1.37% from 1.44% on higher cost of funds offset by stronger alts returns .
Guidance: management reiterated 2025 targets of ~15–20% FRE growth and ~10% average SRE growth over time; specifically expects 2025 SRE of ~$2.5bn assuming 11% alts and “six equivalent” rate cuts; board intends to raise annual dividend 10% to $2.04 beginning Q1’25 (declared Q4 dividend of $0.4625) .
Stock catalysts: S&P 500 inclusion (Dec), dividend increase intention, record fee/flow/origination print (Q4 inflows $33bn; origination $61bn) and growing Global Wealth channel (ADS, AAA), positioning the name for broader ownership and estimate revisions on FRE trajectory .

What Went Well and What Went Wrong

What Went Well
- Record quarterly and annual FRE: $554mm in Q4 and $2.063bn in FY’24, with FRE margin expanding to 58.0%; management fees up 17% YoY in Q4 and Capital Solutions fees +24% YoY in FY’24 .
- Alts performance and origination breadth: Athene alts returned 8% for FY’24; Q4 origination $61bn and gross capital deployment $63bn across platforms and high-grade solutions, supporting fee and spread earnings capacity .
- Strategic positioning and shareholder returns: S&P 500 addition, >$1.2bn buybacks in 2024, and intent to lift annual dividend to $2.04, plus Q4 declared dividend $0.4625 per share .
  Quote: “This is exactly the quarter and exactly the year we wanted… we are playing to win.” – CEO Marc Rowan .
What Went Wrong
- Net spread compression: Q4 net spread declined to 1.37% (vs 1.44% in Q3) driven by higher cost of funds, partially offset by stronger alts returns; cost of funds rose to 3.46% (Q4) vs 3.34% (Q3) .
- Reported GAAP revenues declined QoQ and YoY to $5.283bn (vs $7.773bn in Q3 and $11.046bn in 4Q’23) given insurance-related revenue variability and normalization post Bermuda CIT effects in prior periods .
- Continued rate-transition headwinds expected in 2025, with management signaling SRE of ~$2.5bn under assumed rate cuts and 11% alts return—below FY’24 SRE of $3.224bn, indicating macro pressure on spread earnings .

Financial Results

Metric	4Q 2023	3Q 2024	4Q 2024
Total Revenues ($USD Millions)	11,046	7,773	5,283
Net Income per Share - Diluted ($)	4.44	1.29	2.39
ANI per Share ($)	1.91	1.85	2.22
FRE ($USD Millions)	457	531	554
FRE Per Share ($)	0.74	0.87	0.90
FRE Margin (%)	57.6%	57.4%	58.0%
SRE ($USD Millions)	748	856	841
SRE Per Share ($)	1.21	1.40	1.37
Net Spread (%)	1.41%	1.44%	1.37%
Consensus EPS (Wall St.)	n/a (S&P Global data unavailable; see Estimates Context)	n/a (S&P Global data unavailable; see Estimates Context)	n/a (S&P Global data unavailable; see Estimates Context)

Segment breakdown

Segment Metric ($USD Millions)	4Q 2023	3Q 2024	4Q 2024
Fee-Related Revenues	795	926	955
Fee Related Earnings (FRE)	457	531	554
Spread Related Earnings (SRE)	748	856	841
Principal Investing Income (PII)	51	78	139

KPIs

KPI	4Q 2023	4Q 2024
Total AUM ($USD Billions)	$651	$751
Fee-Generating AUM ($USD Billions)	$493	$569
Perpetual Capital AUM ($USD Billions)	$378	$447
Performance Fee-Eligible AUM ($USD Billions)	—	$223
Performance Fee-Generating AUM ($USD Billions)	—	$150
Dry Powder ($USD Billions)	—	$61
Net Accrued Performance Fees per Share ($)	$2.34 (Q3)	$2.75 (Q4)
Q4 Inflows ($USD Billions)	—	$33
Q4 Origination ($USD Billions)	—	$61
Q4 Gross Capital Deployment ($USD Billions)	—	$63

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
FRE Growth	FY 2025	~20% avg p.a. over 5 years	~15–20% in 2025; ~20% avg over 5 years maintained	Maintained; 2025 range specified
SRE Level	FY 2025	~10% avg growth over time	~$2.5bn assuming 11% alts; six equivalent rate cuts embedded	Detailed; implies rate-transition headwind
Dividend (Annual)	2024 → 2025	$1.85 per share (2024 actual)	Intent to increase 10% to $2.04 starting Q1’25	Raised
Q4 Dividend (Declared)	Q4 2024	—	$0.4625 per common share (payable Feb 28, 2025)	Announced

Earnings Call Themes & Trends

Topic	Q2 2024 (Prior-2)	Q3 2024 (Prior-1)	Q4 2024 (Current)	Trend
Global industrial renaissance (AI/data/energy infra)	Origination $52bn; Intel $11bn; strong high-grade solutions	Record origination $62bn; platforms scaling (ATLAS)	Origination $61bn; continued focus on infra, hybrid origination	Rising
Retirement/DC private assets access	Alts repositioning; AAA ~80% of alts; double-digit alts target	CIT equity sleeve; third-party insurance AUM ~$100bn	Path to DC adoption without legislation; trustee focus on net returns	Improving
Public-private convergence	Partnerships (Lord Abbett/State Street pipeline)	Fixed income replacement into private IG accelerating	Traditional AMs integrating private; co-branded products vision	Accelerating
Bank partnerships/competition	Global bank partnerships; origination spread resilient	Side-by-side origination, syndication; multi-bank ecosystem	Symbiotic structures (tranching, duration pairing) with banks	Stable/Constructive
Global Wealth (ADS/AAA/ABC)	ADS inflows, ABC launch, Altitude insurance wrap	AAA ~$18.5bn; ADS ~15% LTM return; 11 wealth products	Record $12bn FY’24; best ADS month in Jan; tokenization initiatives	Rising
Rates/Macro	Hedging costs and COVID-era roll-offs affecting SRE	“Higher for longer” house view; floater reduction prudent	Rate-transition headwinds embedded in 2025 SRE outlook	Headwind persists
Regulatory/insurance	Sidecar ADIP II $6bn; capital-efficient growth	Transparency on outflows; DC fiduciary evolution needed	U.S. insurance oversight pressures; caution on offshore capital regimes	Heightened focus

Management Commentary

“Record AUM, $751 billion, total inflow is $150 billion and origination volume over $220 billion… we are playing to win.” – Marc Rowan, CEO .
“Across all of our debt origination activity, we sourced assets at ~350–400 bps above Treasuries, allowing us to capture ~200–250 bps excess spread vs comparably rated corporates.” – Jim Zelter, President .
“In 2025, we expect fee-related earnings growth to approximate 15%–20%… we expect SRE to approximately $2.5 billion in 2025 as we previously communicated.” – Martin Kelly, CFO .
“Apollo intends to distribute an annual dividend of $2.04 per share… commencing with the first quarter 2025 dividend.” – Earnings presentation .

Q&A Highlights

Retirement/DC access: Management sees near-term progress even absent legislation; emphasizes trustees focusing on best net returns over lowest fees to unlock private assets in target-date solutions .
Bank ecosystem: Banks likely retain more direct lending, but Apollo’s value is in structuring long-dated, complex IG solutions with symbiotic partnership models (tranching/duration pairing) .
M&A capacity in insurance: Multiple pockets (Athene, Athora, Venerable) provide flexibility; capital and sidecar commitments ample, but discipline remains spread/ROE-driven .
Origination mix 2025: Scaling ATLAS globally, lender finance against private credit collateral, combined direct lending across mid-cap/high-grade platforms; modest M&A to expand origination capacity (e.g., infrastructure) .
Rates and positioning: Duration-matched business benefits from higher rates; reduced floater book; house view “higher for longer” remains prudent .

Estimates Context

S&P Global consensus estimates were unavailable at time of analysis due to API request limits; as a result, we cannot assess Q4 2024 beats/misses versus Street EPS/revenue/EBITDA consensus. We will update the vs-estimates comparisons when S&P data access is restored. Values intended from S&P Global were not retrievable at this time.

Key Takeaways for Investors

FRE momentum is durable (management fees + fee-related performance fees + Capital Solutions), with margin expansion and 2025 FRE growth targeted at ~15–20%; expect estimate revisions to reflect the 5-year ~20% FRE CAGR plan .
SRE trajectory faces 2025 macro headwinds (rate-transition/cost of funds), with management guiding ~$2.5bn on 11% alts; focus on net spread drivers (alts, asset outperformance, liability mix) is critical for modeling .
AUM/FGAUM compounding (AUM $751bn; FGAUM $569bn) underpins fee durability; ~60% perpetual capital provides resilience through cycles .
Origination engine (platforms/high-grade solutions) remains a competitive moat (200–250 bps excess spread vs IG corporates), supporting both Asset Management and Retirement Services earnings power .
Global Wealth is scaling (ADS, AAA, ABC), with innovation (tokenization/ACRED) potentially broadening access and liquidity, a medium-term catalyst for fee growth and distribution breadth .
Capital return positive: Q4 dividend declared ($0.4625) and intent to raise annual dividend to $2.04 enhances shareholder yield; buybacks >$1.2bn in 2024 evidence disciplined capital allocation .
Near-term trading: Expect focus on net spread bridges and ACS fee run-rate; any visibility on DC/private access or large-scale origination mandates could re-rate FRE trajectory and support multiple expansion .

References: Earnings 8-K and presentation (Feb 4, 2025) ; Summary press release (Feb 4, 2025) ; Q4 2024 earnings call transcript (Feb 4, 2025) ; Prior quarter calls (Q3 2024, Nov 5, 2024) ; (Q2 2024, Aug 1, 2024) ; Tokenization press release (Jan 30, 2025) .

Apollo Global Management, Inc. (APO)·Q4 2024 Earnings Summary