Apollo Global Management (APO) 2 Nov 222022 Q3 Earnings call transcript

Good morning and welcome to Apollo Global Management's Third Quarter Earnings Conference Call.

During today’s discussion, all callers will be placed in listen-only mode. And following management’s prepared remarks, the conference call will open for questions. Please limit yourself to one question and then rejoin the queue. This conference call is being recorded. forward-looking or projections, performance. include guarantee do may events future call statements which and not This Please filings related for to risk refer Apollo's factors to most these recent SEC statements. which certain financial the of the on be in performance non-GAAP will are relevant discussing this Apollo call; management business. believes assessing measures Apollo's company's non-GAAP website. These in are is which to reconciled presentation, measures available figures GAAP earnings on the interest sell in this or nothing Apollo Also, on call to constitutes purchase offer offer note an solicitation a to any of fund. an that an I like Noah turn call Gunn, the Global would Relations. to now over Head to of Investor

operator, call Relations we financial today, Thanks, of again welcome release on supplement and site. to portion this morning. and earnings our our our Earlier Investor the Web published

of or $XXX fee ofXX% share. $XXX million, net million, third or total million the quarter. share. $X.XX $X.XX totaled third For an of $XXX we $X.XX $XXX reported earnings $X.XX of share or share earnings year-over-year the and million spread-related for or spread-related earnings per Together, per per quarter, we and fee-related income in per increase And adjusted reported

Joining Scott me Martin Co-President; discuss this call the CFO. further results Marc. will over Kelly, I with turn Kleinman, And that, and Rowan, Marc to morning detail are in to CEO; our

country? of this the the the financial have imply going Well, following $X.X top backdrop. and They not of the thought Thank events I crisis, losing market or on where are the exactly morning for What I'd Texas that other. to in office but we XXXX, sort falling experience would you, almost round of advance to expect that I is are the with have that do happened, is to a we the market best. chart believe XXXX when tightening printed on Noah. beginning each movements macro I start it my comment the wall is Good should to trillion investor the of sounding football same happened. will or like Fed. happen do followed all. in by Apologies S&P psychology on a my sentiment. That coach. important have for start we I traces really did what to and

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record we north as XXX, take of will last you that Martin Investor Martin billion XX% $XXX capital XXXX of year-over-year, through. record of $XX again. exceeding out inflows, as mentioned, target Day up all you nearly well year-to-date take Apollo billion Noah million, will put SRE million, As FRE already through $XXX normalized our for record of year. solutions of revenues at $XXX the

were XX performance. XX. IX year-to-date. and In and net tier investment Fund terms performance, origination gross of strategies Direct top up XX% were

alternatives X% portfolio up Athene was QX. in Our

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yields. the generating individual volume prefer X% bit spreads. Let versus Consumers higher and the guaranteed and Services more and yields about me guaranteed X% and X% of X% each is up back businesses. Retirement little now a talk

$XX We billion have inflows. nearly to year of date

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than We and have excess XX% grade. industry, of a to be seen ratings risk been less capital minimal which is the risk. again of migration. on able capital offense. to on rather impact to And capital fixed more having us be continue opportunistic allows earn We've our assets spreads, investment these luxury taking from income in

insight Simply what Day. to Let at to me Management expect Retirement targets exceed some to year's X $XX our Services global Martin on we we One give bets, wealth, are Investor you business And track move Apollo last of AUM said, end you Asset as Management. we million. years also from will was the recall, for made key forward. three which XXXX. of Asset were driving from

annually. $XXX Capital The Solutions billion and X of excess Apollo volume second of at was revenue origination $XXX again million, of years, in end the

XX anymore. will is and in to kind we Let well the alternative. a will alternative way be each market not hedge the we're It funds. years team will alternative narrow X net that our It of to of FAs equity me showing be in the review not of definition be or private portfolio depth that it's next expect mean people those partner. volatile ahead intend publicly out, three XX% is increasing high actually we In alternative, the are an and to reward, XX-XX on where individuals market focused all I this on of But aligned clients bets. are worth an In as mindshare and traded three is risk stocks wealth, alternative bets. which over bonds. shorthand that if those of showing portfolio expects the you global tune is us relevant this

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be positioning in the largest. this not is to market Our

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want I opportunity not all And to So of are for the so to to thank with use work have this you, done but whom me Scott. to turn just many call they to speak far the XXXX. of listening that, let the team, in tremendous over

Thanks, having environments. for challenging economic Marc. to and complex in thrive well known is Apollo ability the

Over open, to pre-financial creating abundance returns for for interest a with investment amid the with source us to decade, senior an the top We opportunities, retirement crisis rate allowing dislocation frameworks, fund backdrop, returns past fixed scale. can were measured patient our market investors credit capture deployment and hard worked areas size low the attractive excess of of risk. preparing work is and services clients. generate We're and we into along opportunities, the a of higher ripe structure seeing our way. But shine, across backdrop still and to putting those income the front investing is for that capital secured with methodically replacement, strategy market now and and less we've do on our capital we business, we're we're who our foot majority In credit, particularly in a favorable platform. our the entered to recent are attractive is opportunities where pricing which invest

X-week an buying more paper exceeded benefiting the is quarter, the the there's income across investment the now Grade grade corporate for BBB CCC example, the to on on a scale response XXX% a rising recent A skyrocketed than Athene of another third opportunities trading period to to same issued step move and such able X.XX%. of over when yield particularly Athene yielding accounted confident X.XX% X.XX% yielding index size, finding that attractive one point. These in on yield are for portfolio our about example, by entry index. Index and favorable none platform, stability desk we the Investment provide to and We're points. ago In allowed our in between by competitors significantly paper and LDI-related move AAA $X.X in new this AA IG yield ability rated rates the to In high X.X%. X%. in is And purchases assets For average XX swiftly purchased aggregate our one-third for Bond We're liquidity to volume U.K as at above total XX-year basis the the this volatility. rated Over sterling, Corporate this weighted amid October, from and directly Trading home us at for market and to spreads. CLO where levels of selling wider average our fixed billion year quickly were began supply. selling or

capital of totaled $XX credit tightened partnership with as origination, is or deleverage the quarter increasingly months, assets. high solution borrowing including to execute One €XXX provide example unique asset-backed and $XXX asset one long-term of several to the we've are Apollo leading was across of becoming aviation, our its the approximately million. recent This competition pricing with to third a of significant expertise, Air in this cross last custom a France. terms volume investment financed and proprietary our market, asset-backed billion dynamic improve XX In our airlines leverage credit the opportunity multi origination grade demonstrating costs. world's platform scale the attractive In platforms, financing valuable. less increased origination in generating possess box we With debt billion the in and over of the capabilities in to environment, is In We're providing as will pipeline expect significant before, was opportunistic we risk and lean today's what The increased quarters. multiple purchase market last opportunities a well private to dislocation and than equity, ever corporate be as commit markets many be unique our diligently flexible we as with price to across market. carve for creating credit a allows outs, the are coming amount emphasis in tailwind us ability is seek situations, on large exposed for to return and our downside to protection adjusted Xx and any strategies, the we rates buyouts best year, franchise. discipline, more capital deployment debt. significant preparing this in rising a are that time in just operating of opportunities it expect interest the as distressed distressed

With as the years, believe debt as crisis, supply during grade default suppressed the almost of sub-investment for Xx with to large and many need financial it we will was levels deleverage. XX corporates

Our at Air in the billion. differentiator, companies values through case take are to private recently acquisition a competitors most to Atlas totaling are tools This the allowing us proving was transaction, to unable a be when buy announced financing transact. tremendous attractive of also $X.X

required team anchor solutions coverage to you, corporate we most as and our our by our we dedicated our while the platform relationships. structure commitment equity areas preferred many with over enhancing this team business This align capital potential backdrop model professionals. worked diligently strategically ability growth of downside across shut team solutions several reducing While commitments, and approximately and and is the XX greatly banks on sort of told example market protection. is newer one across that in worth to capital highlighting the with new were organize have LBO previously the for invested year It's capital deploy worked enhanced to a entrenched of debt in past thousands of tranche, a as this integrated effectively now business. of we've business We've return

generated segments of hung acting of $XXX backlog vast stress a million which investment liquidity we transaction fees the of begun from the our In fees. and banking backdrop, helping we bearing as As solutions market a our Marc as noted, work is of deals. this stabilizer, quarterly market partners through fruit in the are has providing quarter, third record majority capital and

in can market ability basis, origination for be transaction to the remain we connectivity that fees we've quarterly of a asset lumpy to diligently about strategic acknowledge strive clients. ecosystem generate crucial our to The growth. constructive and made excess continue team's return are deployment confident we While on the drive robust and that progress we're capital of components our

demonstrated reasonable to loans portfolio get As in a core apart. investor down third that backdrop looks quarter the our last of year-over-year, actively and appreciating make saving protection returns investing same companies continues respective equity performing and third appreciated our Elsewhere, flat market funds X% In philosophy, a over X% passing hybrid are discipline in increases. perform are X% well, us that Revenue equity the our setting really paid the back. and through meaningfully the cost risk EBITDA value over in public and up XX% third months, tenants the was the and In over by downside are measures price at portfolio quarter XX year-to-date. had implementing and to X% and our yield they're quarter managing we results, purchase and strategy, our private credit trends margin portfolio price periods. clearly

strategies portfolio credit appreciated characteristics and that the diversified structured third in from and and superior appreciated while it quarter, credit direct defensive our X%, over third quarter, return has over disciplined corporate benefit continuing generated origination in selection. security portfolio underwriting the to annualized credit the time. Our an X% Athene's showcasing X% alternative exhibited

are including our performance real underlying These funds. assets platforms assets of markets, when high which amid Athene's to downside returned and portfolio from for paydown respectively, amortization, increasingly There in several of equity strong valuable protection markets returned and alternative fund by investments the is qualities challenged structure a X%, are higher qualities in capital. origination volatile, while retirement create portfolio strategic and more resilient few market aided and origination our Within performance service drive -- platforms, of in X% cash flows for XX% the timely yield redeployment cash structuring allow proving that investments faster and current deals in structural today's public flow backdrop.

results. fundraising our to Moving

billion $XX strong were of inflows quarter our diversified platform. Third across and

included began inflows totaled our billion in Fund including for from or Realty $XX Income we fundraising, Solutions, REIT, late our non-traded launched Notably, and and Management fundraising SX third-party ARIS, billion X Asset newly capital Apollo platform. $XX September. third-party

As we capital the healthy another Fund out year, look fundraising, as well equity including to close additional capital successful as X of quarter expect raise for we Athora. the

Due first is of helped capital until we've $XX near-term fund's opportunity capital to back agreed We on half remainder X. GPs of on October weeks. and So accommodate billion to €X in our impacts to them allow us 'XX of diligence market of funds and the remain of In billion. approximately sheer accrue fee raised we've strong to of all or commencement size market conversations coming a in and the raise, new the on €X.X we efforts this fund in commitments vast fund at the the uniquely will very ongoing setting in are with over keep budgets. our and capital Athora equity number we've annual the billion effect confident remain year, market. constructive billion We in this to to Fund apart our total will visibility part differentiated activated Through which new of year, from 'XX long-term 'XX to strong the track and Athora common both and $XX.X their reaching the to capital capitalize as high limited the bringing believe over the to far, first positioned this end the open philosophy continue in Europe, our investment October, allocation investors' importantly, regards record with the date, fees partners of in pace. target the the pipeline inorganic other growth denominator of growing rapid this organic X execute closed to received

protected continued Turning to be quarter record inflow of and Flow $X of with today's were $XX well as products from distribution a stellar of growing rate as large in our Pacific, expansion best partnerships in third Athene these principal within as rates value expanding inflows annuity record retirement traction Total in with helped also demand attractive attractive increasingly in included benefited had financial our products growth, channel inorganic quarter second as retail institutions high billion service ever. inflows, quarter from its yield-focused the as reinsurance a fixed the from proving to trends are Asia billion market. proposition the well.

stickiness Importantly, customer behavior and in year. of highly the duration and far Athene's predictable, have so any not this is change seen funding material we

been opportunities tangential Before to Day our it like a active accelerated sectors, businesses can above at targets. software. ago. not fintech, few that base our a over growth I'd as typically and historically large case very are pick we that existing outlined ample higher have at drive to There which such year on trade where white our turning a to discussion life multiples approximately see We and growing up space I science Martin, Investor

expertise. and breadth and our of Over to aligned selectively best-in-class cultivated with the partnerships past the XX managers strategically these each platform expand we've months, in of areas economically

proprietary we Athene well the was science earlier enterprise in on investment in providing efficiency equity distribution this equity structure. firm, space. as European capital and relationships strategic Nova, helping Apollo as and year and firm, with gaming recently, a has building SoFi innovation Motive, enhancements operating life a already, announced origination, venture as Our working our sectors, private in specialist software first firm. More transaction benefits Apollo's fintech with and investment product Haveli, across several premier leading relationship diligence fostered technology, financial a This tangible within specialized due partnership such retail growth out private driving

be accomplished just with over more just we've a Motive to We successful expect in year. as what recent as these investments

over So let and stop Martin. that, to hand it me with there

everyone. you, morning, Scott, good Thank and Great.

this really Marc sentiment type and the Scott's is morning, this Apollo of where environment shines. So echoing

key deployment, primary recurring Our continued stability, business earnings the fees streams. our nature momentum in and quality The fundraising, investment And value declines. an in third reflect provides fees drivers, results we including And our capital remains earnings volatile financial year-to-date quarter-over-quarter our periods. of revenue, markets. performance and quarter comfort than power estimated for XX% more market these our accounted annualized and strong. both fee-related drag from on X% only management experienced Management of across

spread-related third quarter. Importantly, pre-tax of earnings for the in approximately accounted total XX% earnings fee and

quarter raised with total quarter-over-quarter and $X reached $XX last track quarter as reallocation agreement runoff, Realizations our maturities effort of activity course prior portfolio included than partner's third Day tighten the third in to the several normal a was translation results, from our the $XX most in to X% we more clients. both AUM X% the existing as meet increasing FX services billion, our quarter our negative the year-over-year. from by said, laid limited related year, other due out the unfavorable which same to and Inflows billion its we're quarter, As In strategies. the partial Investor billion at well of Starting totaled last billion Total a Marc X-year a quarter included to earnings. repurchase euro. targets driven of to that first $XX of as in billion from spreads. significant of includes of existing dynamic mandate $XXX on to and Athora's trading of third to from due $X an increased AUM quarter FRE both notes capital amounts kind we market asset similar management of of billion, expected which funding doubling outflows retirement depreciation

our $X.X equity the third noted, fee-related X% share, increases momentum reported million respectively. continuing as quarters, and $X.XX and BDC earnings and was for previously or yield from fees we management and of year-over-year FRE, very second sequential On is XX% a quarter non-traded full of a X a on turbulent rate. Apollo and which for of run included markets, will of to XX% Jet Moving combination we exceeding referenced a increased catch-up fees $XXX Griffin fees at down performance benefited year-over-year these to growth first committed strong quarter invested fees XX% October in in results the and management and basis, management on credit Amid after higher X-month reflected fees will manage, Fund the to we as in per of point two fees an revenue X% fee for management growth remaining X, fee the at successive fee which in step waiver And expiration modestly capital Solutions. quarter fee-related and closes. third million rate each turned we management ADS Scott fees be slightly IX base with from benefit fourth of Fund The from events our contributed quarter. incremental accretive the fee to fees. lower

as this confident FRE expenses comp and impact growth expected, non-comp the good a continue cost In sequential our have meeting visibility quarter to $X.XX feel on in as our our in headcount base. and per share we increased target basis into expenses, run year. of terms for to of continues through Overall, results fourth

a around XX% moderating we generate growth XXXX, to XXXX, are our annual new to strong Fund behind move initiatives, than additional positive driven platform by of build fee revenue XX%, plus operating growth compound our revenue XX%. in year we progress target strategic to our growth With As fees support fast spend we XXXX. us, very clients, by outlook services robust accelerated look our margin expect toward multiyear of more expect accretion capital we With growth continued and for and X retirement expense targeting organic target of inflows still capital period revenue XX% next FRE growing growth, we of long-term leverage investment from of FRE from out. growth our above from solutions our in as

translating at Retirement items, to quarterly normalized segment, which average points. and rate we floating normalized $XXX increase comparable share basis Moving from the per assets. Normalizing purchases by $X.XX our income associated rising or driven environment floating higher of net a run both and third of interest notable alternative with Marc third spread net near-term. building generating versus third represents basis, basis XX quarter, from a with $XXX increased as the to beneficiary a of to due rising of rates, the platform our $X.XX first rates SRE, or rate view returns noted, spread as $XX this a a points offset million higher of [audio On in short-term OpEx sequential income X million with quarter-over-quarter a of approximately net share on-the-margin increase investment of XXXX, our net accretion, in in this capacity, costs our in SRE by basis of the gap] in SRE our XXX net was to quarter. period expenses. basis million points incremental certain of basis reflects points, rate higher our We've months been operating interest rate X XXX spread X points this quarter, $XXX generated The the excluding and the reasonable net we in as partially percentage million of a XX% higher Services higher

in we this the fourth an XXX share normalized laid opportunities spread continue due this our of earnings dynamic well timing profitability And of segment, expect underlying to of deployment ago, per to We an rise strength approximately Athene's $X.XX the spread-related indication amount Retirement a This translating business, Services expected points of benefiting as resets. basis attractive the to year. net year underscore out quarter. just further, to should of of rate basis as the

with portfolio, per We expect plans rate share, benefits: rates floating our growth, to on exceeding organic three to a report closer and favorable environment. the $X higher investing

favorable we SRE XXXX, organic growth interest year expectation. normalized above inflow to expect compound relative our robust coupled ahead to Looking rate XX% growth drive to multiyear uplift, this next annual with outlook, average

return investments expected, help we are to investors. in PII benefit or fees of in million Investing. Principal Turning maximize of for potential the third per light, as performance $XX reported $X.XX as of patient We the Realized fund were to monetizing being million $XX our share quarter.

$XX of both generates and growth the billion strategic in investments, Lastly, a XXXX our dividend and growing capital of we of capital shares. spent and dividend to well FRE on $XXX flow, approximately through $XX drive free business investments base In the repurchases. share repurchasing to we cash base million growth amount as substantial opportunistically on expect million quarter, funding deploy HoldCo as third approximately the future

QX the in share $XXX activity and have million if weren't engaged buybacks additional during would in quarter. it for a As spent we restrictions in we on QX, reminder,

in the Looking balance net holding our billion opinion, liquidity $X than or remain clearly theme be our our undervalued. remarks to expect stock, ahead, our times active reiterate company stock $X.XX In including value equivalents strong I'd central in sheet closing, of share, buying is of $X.X We with of in more our a like a we cash particularly position, billion. to when, with at and comfortable more morning. this back per

our market removed and very are milestone from our more achieve aimed growing joining our against even With well-positioned up that, We long-term backdrop plan, diligently growth attractive Investor in our for excess open clients. on this generate in we Day, executing our year for our a at financial opportunities benefiting for all pipeline are are we stakeholders. call, you to and confident questions. of targets ability and A we'll the to capitalize return thank

first Instructions] comes the Autonomous. [Operator question Our ahead. Please of go Davitt from of line Patrick

gave are the there. all on question give ability that launch Management still you broadly, to in Hey, the the looked specifics a good have on follow-up Wealth Could through everyone. morning, the two Marc, more I quarter, business you products a markets? in XQ And I confident a flows business. how appreciate little major products then versus much you ramp us color, more all us XQ? or volatile in one those more

is Yes, This Scott. hi.

yes, have quite building flows actually been nicely. So,

of has it's talked so expected first through as in And all likelihood you, number. we As number, coming about of ADS, $X this -- feel year, our told year Marc global wealth of That And good steadily the about inflows been we we that had quite sort about. exceeding that activities. in been billion building quarter-on-quarter.

This global estate drawdown forward. our this some real the namely through then, And working system as funds course, that AAA. launched quarter, been Fund of just wealth X, well, are ARIS, We has of product. launched moving we

do be coming that early couple We've year. as next launches more area. So go that as of exciting We about next well in that continue ensuring be year others midyear. to our a some you have products we'll talked will that to quite well launching

really, the real wealth very yes, So in about where success. are good in we year global earnest channel a going. And our feeling first been has

you. Thank

Thank you.

comes from next of Morgan question Michael Please go Our Stanley. Cyprys ahead.

that to I as the expand back able question. many. of the hoping to the well. being comments first made, how what see might might mentioned your able you And the of next Scott, might cause you expand be I that outlook to you maybe how? what was Marc, had potentially as arise, where you you're taking then, the capitalize maybe for upon Marc Thanks pickup market Apollo hiccup be this coming for had investing, referenced opportunity? that to distressed about Scott and that. wanted see cycle? on morning. good that Hey, you that you circle just preparing U.K. on might and out some Can you playing

Why don't add I start color. will on Scott some I let the macro then and side,

our and of larger. in was changes back cost system in the one significantly So of with the increase we roughly penalty will I trading today XXXX, the same happened of that an had happened we the changes in that beginning if amount go say, you providing Dodd-Frank in estimate, By in markets market as making our have the XXXX, to capital. capital of system, the,

public there's in are the now are down. liquidity like only on way more liquid. is across to a say we to article There The liquidity, as not an phenomenon, a our The about are is this up. things and are we is liquidity yesterday a And There talking market markets the less just way a decrease where on every of the private product One clients, was I seeing in is market. treasury liquid. markets not this structured that. market

gradual are particularly kind public or the you And liquidity. result, seeing up market-based for looking private capital increased is And time. with calls of when toward at illiquidity, so phenomenon, same trend have all decreased liquidity, short-term same we when short-term the manner as a end you everyone door a of

Yes.

at all in they that rate most interest to return. cover inherently CLO find necessarily are I there had environment right? to to wrong Marc has trades we led rates those that XX transaction Let will X% in those those that to and The buying, on add once, try me can't increasingly levered asset said, to come, we now entities just rising we -- referenced movements the predict their LDI And a pursue leverage while of happened the strategies what was have unwind, issues. with liquidate didn't to that levered where tranches to be years liquid exactly order happen just markets yield and nothing that were it's and margin

ready, that things scale platform breadth happening, And so so the that's -- you of are cracks when advantage and of see of those the those take the to being types opportunity. having

in across We've of years again, with our and in mutual step XX we XXXX, of of open again because to, funds the and liquid You non-daily ETFs. in in financial will daily it And the it is liquid March in We've assets, with pandemic, have it system. liquidity back seen We lived this enter [ph]. rates. low macro. to mismatch the LDI. see beginning where of saw environment, happened And that increasing I now to propitiate benign products, continue

all that the over And such have in event willing, to Our a liquid system is run be expectations. for of for you past done today business XX allow the there, in only the as the door, you if capital at to able on where usual as something on be things there market, dealer the not To years. serve price way buffer not to have investors same to participate longer is up the system no designed same down. liquid the have that to any way sort are time, usual

to have to was in try maximize fully and to fully have that easy that. period sheet, deployed your balance very invested your earnings not try You your capital, a do

what you offsite. deployed. essentially institutions today, are They many fully are so investors, And is find many

run I size come current our billion our cap dislocation. have We decade. net European, X of try are XX% the over are and overexposed, the not industry not and traded closer have a dividends. but raised to and $X buyers market where of as large past That than people they U.S. saying publicly market paid insurers means in on they're position capital think their roughly about and the insurance Europe do to businesses, chase fund and -- out the U.S. do our the I we business firm mispriced you decade, can that to and And nothing not decade really of buyers once day. a do large running be to And is that, hardest back risk. investment and to once every have and or a patient thing to a the dot, such to just in competitive sit with be twice wait. you hot opportunity,

And quickly Mike, distressed just your to question. answer

the So if to as the territory you per right yet. in look at indexes look are you certainly markets we at not distressed now, were se, credit

name, starting some that the so direction. find by our list accumulate in are moving to into you watch The but stretches to has Fund names name interesting -- a is X situations hundreds. far, your positions started analyzing start in Although, past, key the markets can't be key your to is -- When and they said move, the you names, at investing as that in right? I've and the to successful distressed ready, moment. credits few distressed move,

happen. You sort which thesis this or a moments have see of you awaiting roll the built built for around happen, where are, into investing. only teams what early will I crystal but next year probably And to fully at our nobody names, that those in not prepared and investment when interested in point, which, to up to have fully but you're ball, structure start capital mean, prices has out we

you. Thank

Please Finian Fargo. go Our O'Shea ahead. Wells comes of next question from

A talk your origination Thank Suisse the potential direct you Hi. Good SPG about you. or to on volumes? morning. Credit question the business. Can expected impact

It's Marc.

products, market top the the way I and this consumers corporate the U.S. is for be believe shrunk the it. that people the The see macro us with would can sufficient of the it's the of credit banking slice capital is as in more market. through of early product come of and us, XXX opportunity. AA, origination products of structure, I frame size This different AAA, relationships has structured and the too think is Europe, the the size volumes market, a just and what accompanying it I I the and there. be. regulatory to job, But direct generally initially to will in PIMCO. by see be like banking to I is what by this banking already is Suisse. Credit the entities. today grow through system, how say investment companies funded The reform vision it from that And to something back -- transaction systems made to is products. will ourselves not Dodd-Frank, scale, structured take I opportunity, it a our size of initially and but And is like

So to a leaned respect needle necessary But and we did resources optimistic, very would be up think that. this But I with our to all early mover to was predict much the it's say, if in how and going to the come origination this think we do build this. we retain of franchise will with not around go have origination capability. that the us people to and suffice to it's out didn't clients to of to are it a we

you. Thank

Please comes BMO. Hon question ahead. go next of Our Rufus from

you Hey, that minute last single the to the has think this was spend fund or you Apollo. specifically. good I on And morning. Thanks could product for you potential a be quarter mentioned AAA very much. hoping largest

progressing we conversations your to come And see you. this in? do flows and with into Thank still channel? from to need when start are order could to get in how retail the institutions you what retail So do

So it's Marc. you. will I come to back

wealth $XXX it's the $XXX in first on beyond approximately don't of SuMi billion $X.X the billion the global new I that -- million, I cross to for that see a by quarter, explain expect have you So of million, to number other market things product and to $X.X growth out we think us now Athene, think of a year-end. look $XX really now wealth focused accepted we something with have out I would to sense really $XXX that from 'XX. commitments. up billion makes we But and I come platforms, million. success. It distribution money TRUST it see at are and exact the we from $XXX If of on will in is and number retail, take institutional launched and us but me, prove of channels will front million

The on very quarter, to we de to encouraging, not. they minimis are with investors liquidity, have it incremental So or now execute. hard initial work step alignment on diversified, us us offering no been back, do the conversations side-by-side I no and fee portfolio, is have where a X% now but it's us. is for But a J-curve we fully up

Thank you.

Our next Sachs. question ahead. comes Goldman from Alexander Blostein Please go of

the exceeding morning, to earnings everybody. bigger platform has wanted to circle much expectations Hey, Thanks return near-term gotten the good question. philosophy. build. on your I excess capital for you capital are The and continues the back guys

and the dividends total Was kind and guess I look importantly, guess, Martin, one you near-term, as were what that your I of that's blacked out Suisse do you with XXXX dynamics for much buybacks. Credit are think, more I I couldn't or between guys the into Thanks. And mentioned expectations payout that quarter, in mentioned, reasons for So why the else? you out something that of buybacks? to you

the were won't I were more to were we into minimis a the not we buy back go than we amount in but which we restricted, able restricted. reasons So did, quarter. is de

of this If that buyback investment way the spent you $XX and of a That's the we've over of investments, our billion dividend and included actually in done -- about $XXX billion look million earn we we've $X.X time. year, at sort QX. strategic capacity what into and about between

to need it spend own to it. you So

in is capital $X FRE And highly capital then growth spent As SRE. around in is than of system, very And to we our terms we through export the accretive that Athene more back earnings also thought. and stock we of growing our buy of look expectations. believe uses also Athene $X accretive at rapidly is given

do which So [ph] you'll equity balance both. Alex, is [indiscernible], as capital. a is see the -- leverage think, beta which It's provides of earnings us to Part without the the role important I that balance. plays

we the continue time, what with return But we the I we've what to do to same lean should early be. growing buy at expect we accretive think us year more So next will capital highly plans the look it's alternatives both in then to And see the part around of return you expect us into stock. this of year. including around Athene growth system, done will and back because at some strategic

Thank you.

Our Brian comes of Bank. ahead. Deutsche go from question Bedell next Please

And and Good you in generate market then -- behavior as REIT based these these conversations think Thanks. beginning that being organic How to the you AAA, differentiator maybe market? off need of retail to Or channel? Solutions, risk can morning, about accelerate Great. to are And that the non-traded are you you we do come behavior that? on talk you products therefore, differentiated think comment are you growth how similar do Income on really resonate resonating? expect the sales a new folks. retail out? sort Realty on Engine Apollo will a also do in see risk seeing question a story a where the just your in more of Similar product, on

I Yes. both This those. is answer of Scott. will

Apollo every product been A this Like we rest slightly different the early more investment that partners purchase to takes price the On of the approach a matters some we we've seems market. as to real the be have, product with resonating than we launched. value-oriented talking we product, approach believe channel estate of really do. get

I a should do we product actually So differentiated that start think real have some traction. to gain

market look, this many are itself, As far fortunately of journey as starting market, we products. Global our the and in the us, for these retail Wealth year

which So up. we only one have to is go, direction

that's now. I not seeing know we some we have volume reported, are while or so And what depressed others right do suppressed think, levels, that

We trajectory. in and an of up the are kind of moving to right type

to in 'XX opportunity we putting the it as market a building in also investors top in is top value the to work asset attractive what helps think the environment dollars I a call, work I to market, then huge way. purchase dollars of I'll that asset where not with, really of real loaded that put environment are and see a fact and today these rate are 'XX 'XX. portfolios and think start And we

all, So good albeit about I business headed. like wealth where about a lower our feel global all where really base good starting is than are in Feel said, we headed, from we much really others.

you. Thank

next Please go ahead. Barclays. Benjamin question Budish Our from comes of

taking business. driven contractual of horizon? on that I'm for curious kind mentioned look last my withdrawals compares on Or outflow you to rate year? you. some seasonality -- more color with I'm Thanks rate maturity time in over longer any you be of I how It should the kind XX outflows. curious we disclosure quarter, over last just the or policyholder the looks the wasn't then like ask of give saw it the driven a Thank that, the over And the there. X.X annualized rates question. the Hi, months. the really like normalized about just the wanted could insurance the that kind if so would hasn't changed in helpful.

first you're exactly on piece. right Ben, Yes, the

X% our and policies policyholder And X% So access always of the I It's rate is control reasons, annualized annualized within or had XX for expect rate sort our outflows. of with behavioral. volatile. which of get sort plans. line more this contractual business. you should the policyholder there's months. to that a of then sort of of think the will And the amount in driven, their quarter. part we be just of last withdrawals had category. some a cash that's And is in driven, there's policyholder a as for policyholders And That We variety one

we made. to the funding relative some expectations, market, during point. funding and both sort agreements not we of in is particular back are change buying contractual focus in that higher decision real was and of any as a combination the we quarter, And or the that's maturing. that a that I mentioned, So our The were history seeing agreements

a funding that So to -- number to shorter them. agreements duration have tend

of we're you we much to less need more We've that about market names behavioral extra on sort to outpost. leader spreads. in got will fully so and surrenders in that. provide is that where comfort clarity around we're a provided do when concerned funding market And that good issuing a That's and more market be and agreements, access of But there. and piece the the disclosure we've the

you. Thank

Our of Please next from Jefferies. ahead. question O'Hara comes go Gerald

Thanks to but environment transaction kind be? just the there of kind taking go-forward of us give for basis? a Is perhaps terms of or this fee kind you from the Perhaps question. backdrop a for one, sort the a of a environment tough to help build us Or guess, on might what this a from a quarter of in anything strong clearly baseline can look reported for of and sense fee, a transaction where puts I Great. in number. takes

I fees in Look, right? an the would upwardly close the transaction an and step tell curve, capacity I that I this of basis. I side functioning and we Yes. -- sign to you as my are we've quarter, quarter generate increasing on up and line. more can't any on alluded in so given or of breadth is capacity and comments, prepared it think the But do -- fees are know, given the down the building there inherently In that of far transaction business does been what to an the as earn sloping quarter. inherent the volume side the of scale But

do And so see trajectory moving. we that

of As you a know, of million out we target X-year put $XXX revenues.

right $XXX million alluded will to, be for around this year. we Marc As

that along. -- moving continue to had say, I'd chug are up are upwardly than anticipated moving that originally we So even to and we that quicker slope, we expect

a that can't one in said, one I you -- like quarter, of do upwardly any trend volume sloping. and you breadth transaction your predict see So but grows, any as it's

now the today's Gunn Noah concludes Q&A I will floor or call. portion any that closing And return the to of additional for remarks.

morning for your everyone, for us continued this joining Thanks, Great. Apollo. in interest and

we reach look call, questions you. us, on and out on any connecting with we anything you have to today's feel free to discuss If to please forward

Thank call. this today's you And conference for concludes participating.

may You disconnect. now