Apollo Global Management (APO) 9 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to Apollo Global Management's Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions]

This conference call is being recorded. This call may include forward-looking statements and projections, which does not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements.

are on certain relevant offer on performance in Apollo business. non-GAAP presentation, an purchase Also note discussing call management sell call, of be figures an offer These fund. to or a interest company's that which are GAAP believes the website. assessing any on measures will non-GAAP earnings nothing this measures is which this the in an in Apollo available Apollo's to to reconciled the constitutes solicitation financial of

I to would of Please call now like to ahead. turn Investor Noah the over go Head Gunn, Global Relations.

that a and playing on got line X Donna, the of the and before the today. a community the morning, portion we on supplement Earlier special release Thanks, Investor jukebox couple our earnings of of Relations our members published of was thanks to financial for our X we selected who songs this research music website. hold

per to set very share. earnings, principal billion net short, a combination record share $X.XX earnings of income, earnings $X.X of of that XXXX billion and deliver featured per This of In results or fee- normalized alongside per $X.X adjusted for billion and income spread-related fee-related the we're pleased drove spread-related total or $X.X year. full strong investing of $X.XX $X.XX for or record share strong

positive CEO; business outlook Kelly, Joining me Jim Martin the our and Marc discuss this Co-President; CFO. on and to further results Zelter, detail morning in these are Rowan,

to I'll turn that, call over Marc. With the

lifetime our Investor achieve needed X or out the to firm. out set ago was ago. or XXXX seems to Day, XXXX, for and Noah, laid those at At a like what we to year and targets and End we a of least you, regime of X-year Fed Thank morning XXXX targets. internally accomplish we transformational all. good the first end held our a

Record meaningfully billion targets. was exceeded our we record $X.X target. in line with of XXXX, and or FRE target was in billion ahead of of However, those met $X.X SRE normalized

we Inflows $XX As suggested, for $XXX be we will higher. year, billion. important, 'XX billion. and the XXXX as in Inflows growth Inflows were restarted this engine.

year a of XXXX. record raising expect capital in We

often is good It goal is the raising cautioned, I've As capital for that actually performance. the out. set reward not we

objectives XXXX, ended We pillars implementing and FX have laid been the solutions. at in or approximately of we on meaningfully plan: the in that rates $XXX year. our key X-year for a global that key raised our Day, had Recall AUM the about $X had really our $XX wealth, billion global billion, origination at X $XXX acquisition year including to achieve the successfully we progress meaningful with of Investor ex and strong or a billion -- capital billion XXXX. Griffin the against focus all of ended targets. X out would wealth segment, capital AUM Global wealth and during year accounting mid-part to

XXXX. track of billion at or on $XX are our the meet to exceed target We end

marketplace. our we tremendous had these short, we out to in laid global products -- X product receptivity expect had projects we our products In in we've the the By When and targets, marketplace. in community. perpetual wealth the to X perpetual year-end, franchise

be to elsewhere the goal here, goal in organization, the biggest. like our Our is not

growing. be We will the not fastest necessarily

seen in seen addressing they unique before wealth innovator have and as are global never interesting the of kinds be showing seen this will products the needs and the of the this constituency. We community that marketplace,

platforms, were We including during north now X platforms, have Origination, billion which $XXX a XXXX. on basis. volume totaled additions of new XX XX-month

Securitized Products the known as You the call Atlas, addition, recent will the Suisse most hear later Credit formerly in group.

exceed or our are end We meet definitely XXXX. annual $XXX here target at of the billion track on to

business in a Having us the necessary is private particularly we private and our make of enables really business, it of for produce that and powers unique is in for This particularly our that predictability to projections in power year good to SRE of third grow. credit FRE to especially reliable are in spread, every our commitments excess kind parties, it credit. business for amounts that our credit, us investment-grade good production and steady source the client

his each the I'm part investment important credit. very follow strength differentiator. a going few remarks have and to private the We words franchise on in to words lot that going what X this have second create of we done organizations is people, we of that have capability. actually addition What focused no are and credit. forward in time Very will a very will a a generic lot. private in is Jim source term of is private private spend a in hear that on term. few have always to This just that credit the credit has and a huge platform what just other. on grade We idea more They uniquely franchise our mean. our spend the had

revenue. revenue. exceed we was out to track end is third annual at that revenue, $XXX that annual that, we In capital XXXX, on suggested are me that of projections beginning of in north we we of that we confidence be exceeded the the XXXX, approximately at wanted out pillar the solutions $XXX meet to of $XXX million business. The Capital and set we laid million our XXXX million solutions Gives great X-year or XXXX. of annual of

been out The built globally. fully has team

credit. own sheet will is we They as SRE, which diversified only pipeline everything help credit and we credit platforms, our into XXXX, partially And that of do. carry up XX over XXX% quarter are of executed first wake creating. the that most XX% XX of We massive the in will buyer whose explain to have a what on. to XXXX on want produce companies We, is and touch do in and understand a nothing. Martin help balance of and day they job produce we every ecosystem important for

And that creating the needs what means, into marketplace. day so are every to credit syndicated be that we

of come that business. platform. a is funds imperative us to or the who SMAs into X for it does have This solutions interesting to goes rest of very into Apollo clients capital previously of The Some things. goes our strategic and

Earnings place important, we fees they we third earn of as a our But expanding One, business is as with model. ecosystem. fees. our part fundamental credit parties, are

build This period relationships. community for with X,XXX product circa go business an done solutions alternative investors counterparties of with with unique new side-by-side, is product, opportunity with capital our in time. with recurring out have the aligned with We to a for long group and product

Sometimes in transactions, eyes we as is we here tremendous to and those is unbelievable will do, traction, picking ecosystem and team clients' recurring the one-off what But job. new will result fine. those oftentimes, those which up an and open up that into is just an can new This SMAs turn is will relationships relationships revenues. doing

billion. the of on excited not to States of a was annuity want an initiatives, performance year. the at just being represented $XX lot an X as markets. Athene basis organic who turn Athene #X some against about I despite in As annuities purveyor Athene awesome were in the had to the I Inflows now 'XX am United

consider in for quarter would are the of the of about versus we basis was spread ahead what of points of New books business on fourth targets XXX put full year. at about business. spread meaningfully normal Both points XXX basis of the those levels

it doubt very on XXXX, will business profitably. strong. same books continue also in the I we quarter, put being believe, saw be continue I that fourth will but new very levels the the at to is

versus which was with you AAA, many almost strong XX%. the product, buying and product, doing XX% other the foundation and data. during also and AAA up Athene Athene's clients indication our as the equity portfolio, of S&P benchmark, which alts something an that Very forms are was market than providing our down performance retail replacement understand, for year

our our this And are fortress positioning one answer in the our and As the sheet is we of balance industry. who is marketplace, the we industry. step think team, the fortress balance we in questions sheet in back we asked the about

across We and $X A+ billion year of than excess ahead the X are more capital $X ended AA. We all S&P agencies. billion of

this that will on closing for ADIP will be X we of first and capital. was ago, morning, reinsurance been the or And the than that business ADIP for the deployed. fully industry, and billion, new known the $X affectionately expect we take yesterday as sidecar X That that X puts an ADIP sizable increased earlier share further of introduced larger books. ADIP announced years Athene X ADIP first we sidecar now billion Some our with $X.XX nearly has X some of

This view and our Athene benefits all for for spur to efficiency flywheel the it for that it of will and In SRE of realize growth. good needs an and they is from a assets capital is origination though capacity mean creating around. amazing further and which short, of franchises, belong point their will are view, capital some is now will point even good This of essentially -- to of investors for generation filled, capital year good It be good the is FRE, our businesses. other Athene. solutions additional a that

where are business, years are I solutions has now unnoticed. in managers, that to which that and contribute By Athene of not success. a to XXX entities to understand things this insurance of similar relative asset strategy sit believe measure, in started rest on retirement To successful Our pursuing or the this to be there north the have success ago. X entities some there XX business we business management gone become asset who of

amounts in not massive to capital. able capital, been industry is an First capital that raise of has

within every resonant the The asset It is that is investment-grade skill a day that quite create a we not This set something second up. industry or, traditionally an management. skill alternative is ability is have built traditional frankly, spread. to within

The third a is cost attractive structure. really

a net ultimately, need base. very attractive finally, function but of because, of also efficient interest of a margin, a your you funds. it's scale is function cost very need a cost And You spread

your can goes quite and returns. high. very a investment funds cost cost to And your products if good returns in because risk If you're earn Everything efficient not designed, your if because need high. of to is of take funds investor, you're low well be actually reverse good is you do are

versus very like where inorganic we watching some entrants, billion of the What we industry they a in also for expensive to are which lesson not our Athene, origination will the market way. in although up administer a cost be that expensive get and all, vast at is blocks majority of are the $XX fact, believe new of on very will very I high along are hope haves paying funds, we'll to the entrants, organic the that scale. have-nots, successful, have learn who, not

by We where are time the resulted period interest regulatory also we are a increased activity in doing. has in asset managers in increased what of

kinds and standards. We a the have years dialogues spent of and XX best-in-class putting out creating of transparency set regulatory

go and we not regulatory fortress standard. the regularly transparent of the We assets that not but our regularly is knowledge, required. standard We my published no tests, regularly respect not companies. are understand back and to to are the the people are, just that we regulatory We We forth of "arbitrage" reinsurance a balance although with details between there most so Bermuda required. U.S. sheet stress publish

sure place trends, appropriate dialogue by not followed -- our and transparency also All is regulatory it with of in an foot business the to forward make good to this is although is of appropriate new lead will amazing increased oversight. a are to an some many, right by What not see promises marks retirees. that you powerful I've to the have entrants. part that generally things on business XXXX of we the help is the driven mentioned This actors but get just

participate giving is very in groups be a some included which the opportunity that changing We future us at as group point and fast. in a expect shaping among XXXX, our industry, table the internationally we for at regulatory insurance seat an will of to active companies

people SRE very a have. yield. need safe And The The ability for international flip Pension good of safe investors income Retirees needs funds fixed us to yield safe Banks safe is is safe yield. are yield. generate replacing the insurance need safe yield? something companies very few portion side Who world Japanese need producing FRE. need short it. their safe yield. yield. is and at we of that

why profitability short, So side when it then maximize asset we I the capability. want flip of the that's to And an that say that. that produce of is in is our we SRE

and on with an liabilities. yield for top are third that, Athene. produce earn by then, spread-related we matching for parties or We of long-term earnings, the SRE, But the sticky yield we safe for safe FRE

a number an of capital reverse. awesome of so-called for Athene. In went XXXX, year permanent in forms XXXX other was

to Let me higher business. return now a and back level step of view our

as risk. grow pursue I've suggested our return It us does for we exists, or provide for that which investors exist unit of us per exists business, Our to to and to industry previously, excess want. not

We are needs. responding to fundamentally investor

Fortunately, as we for unit have income, a per very return of for as need risk. an strong tailwinds and firm excess the industry

where driven excess Our is to return growth strategy is we unit we risk. business produce in per being of areas believe continue being can driven and

and philosophy. by of Athora with investors balance points we fully sheet in with risk The investing that return time unit guided side by business aligned by investors Our ensures excess by all is at aligned an them. and of combination but our Athene not side are just

XXXX. I'm on doing certainly the to, hard available price will Jim matters really our for did going and Nonetheless, as we've positioning taken that, to But and was very purchase Finally, well purchase rally. I believe the we us shown pursue on out forward. in bode sure in reward matters. risk everything is and industry for a that pivot price strategy tailwinds The

be a year XXXX good will Apollo. for very

on offense. are We

uncertain in and dry We uncertainty do is XXXX. have $XXX of are the when in billion the better economy. there deployed markets across $XX platform. when we Fundamentally, powder billion We

than and over his in XXXX, expect to FRE up will more Martin -- as SRE We more in than be XXXX XX% sure I'm detail remarks.

opportunity our operating amazing really But we focus an on to have in business also leverage.

meet in Alongside are pillars have added I us not to targets. Jim's initiatives origination the of to plate and We but goals meet of enough growth lays wealth steal things on. X-year our number he as currently of the the on capital are and just that XXXX front a initiatives, us our of that front [indiscernible] have solutions, global our we thunder to not X focus will out with in

execution. a of say, it will Suffice XXXX be to year

return and will to XXXX. tremendous operating We XXXX the There's team business in in momentum. again great. feels leverage here The

place people day, in group vast the a of the what job in our engaged incredibly makes best people. of giving energized. end is is partner team, And are this We a and great and majority This at the of the the a industry. programs, the charitable to where our financial is involved are XX%, single be be place hard-working services to the

analysts that, all do. to investors an you've we're to with for the want time given trying thank year us the amazing I understand to And and for employees and what the

it over And me turn with that, to let Jim.

Thanks, Marc.

will us take of returns As best and foundation and After strong investors to is our tenets begin to of return provide investment heard of the and one relatively core risk. themselves, you've our performance free business, say unit per the our XX-plus we quite our before, of responsibility seriously. is to differentiating rates clients low years money, excess reveal

look XXXX, this we is a generate good out Apollo believe particularly return. to time As to for excess we

heightened markets will period other managers we're patiently and, there of capital backdrop. type a foggy in be and of confident this to amid candidly, have position, While for opportunities may deploy a meaningful a defensive been be we waiting volatility capital environment,

X Marc provided to a dive pillars, origination. a into and like high-level moment key for I'd update deep on our growth

a assets. large fixed XX market. high-grade of we replacement As of the these of at we durable what short ways Investor we to the originate one And to these -- is within a ability a is portion end our income the do though, months do, primary operating businesses recurring real industries. strategy Central through platforms, addressed a Day of of ago, this supply is variety

profitably the origination the is services retirement originate to their grow portfolio. investment-grade to differentiated clearly help needed third-party increasingly accounts want which our a same scale, way to is business Platform in that at this assets and

be rather the well purchase by course of than used platforms portfolio to resources, Athene's sourced alt can purchasing as these however, normal the holdco origination AAA. sheet Importantly, expand as balance capital power

and year-end, our equivalent this speaking, variety on develop a at funds ecosystem points important We've assembled manage basis classes capability or acquired we billion XXX a tuition producing built to we're we about approximately volume of and of portfolio of across and a competitive of those. IG the benchmarks. organically, Metaphorically $XX sectors, generating was asset platform also versus think excess moat. and focused execution At is of XX spread annual this scale, which been have platforms great through advantage scale which we now pay

expand of really extensive This company backed been an yesterday's track Atlas Group finance best-in-class the will a is CS platform network of negligible has business, announcement following platform, asset warehousing clients this finance week's advantage companies, losses. This XX-year and a which amazing Products or record SP. Securitized renamed of of with

at simply finance credit broad resilient and yield exposure trillion part was lending untapped that be put, work private counterparties The income believe is ago. of closing was are into they expand the Apollo, to the through $XX clear a opportunity think finance as ecosystem. is we years finance largely variety credit XX IG where sponsor direct We of Atlas the the private in replacement investors asset-based with to capabilities. this is fixed industry-leading it's their market. base to the asset-based Apollo And excited source and become Many with working reaching of us from to out also want team process, the

landscape, past. we facts. offerings, mentioned initiatives, efforts resources the execution. and we're In fundraising those these organized focused We've on around of strategic pillars, this and and addition is product differentiated innovative stand In execute out, and we've believe, on now early we've that will 'XX initiatives begun X additional our seeing to growth competitive to X our indications

I'll a mention And few here.

optimistic continue Aligned AAA note, platform. of as Apollo or as well channels we're independent Europe, a growth be on additional launching of our individuals the Alternatives. offer AAA bank other platform and first Asia To on Europe. the platform designed We're options of product available be We and to that in domestically to through broadening full variety and very the suite a in globally to to distribution system European months, the product coming will

a across spectrum vehicle. also We've is risk-reward to managed in Altitude. of marketing the so a but do a funds This begun Apollo Athene range offer designed product to tax-efficient

While still early, quarter fourth from a firm $XXX the raised third-party insurance we invest in first through in million our Athene Altitude. to client, AAA

Additionally, initiatives in a scale. building organic are couple of asset nascent key classes

past and named since gained investment momentum ADIA over sponsor solutions year. the equity or over run committed of secondaries an credit $XX has mainly and credit secondary X XXXX, secondaries and overall fund Our a opportunistically the formerly business in we capital months. fund raise ahead secondaries And raise committed our SX to a for deployed equity platform $X last but launch in finance, billion into dedicated XXXX. of for This in cornerstone fundraising following has billion quarter fund over from expect capital has second

and to in anticipate we boost $X into committed the fundraising similar clean team investments. a launching seeing opportunistic transition across further capital franchise. latter transition of about in later these ago, vehicles infrastructure year over board. will of billion climate we've a our and platform year. clean the capabilities sustainable we adding half our yield this origination or investing a month, launching And be story our this deployed We're And for finance dedicated Since for

investment the bringing to has industry. the successful that retirement in made others and toolkit services Athora Athene we're Next,

can diversity. volume Marc grown, the of assets a and needs. reaching now these point origination same have to who more Our said, we distribute in proprietary we're parties And third as fundamental has consistency

in We retirement And partner capital we're $XX finally, are relationships raise the strong space. the side foundation a and simplified, we of in from replicating services in had do building really to so mentioned, that aim in billion on ADIP next areas ecosystem. And over car in the other investors, structure existing to business a cost-effective Marc of successful to the area. others with year, over MidCap with manner Apollo our variety as a the and in we've and scale of

billion is broader $XX levels. fundraising had of quarter, the doubled AAA. specifically, fundraising capital $XXX to In total on co-investment capital these our a Athora third-party initiatives, fronts driven $X our drawdown of was capital for billion of of by from fundraises, XXXX apart incremental activities we our strong and, including Turning momentum strong. which for In in and global variety included variety management, fourth fundraising, wealth, X new inflows asset a million new for and

range investors, later equity across Principal we funds series currently drawdown in interval fourth of products, Looking wealth Marc the our 'XX, to similar be are and the variety fund; and perpetual as year, or exceeding X; funds. amount of nontraded from as vintage global variety of X capital year, the to managed fund; strategies a and our well our a record mentioned, infrastructure market strong we're funds, mentioned, including certainly, levels achieved REIT already Accord BDC, of private as nontraded the will accounts channel, as the European last raising in third our third-party with the capital additionally, yield expect that a Finance, of to Marc and flagship including in our vintage a ADIP tenth

regions to fundraising, report that wealth the fund billion. I'm non-U.S. and congested Regarding shareholder new approximately Fund difficult exact and And from ultimate January, investors, investor support global with we market, the and to with experiencing base size channel. the received predict it's especially from the of timing. are commitments existing Through dynamics X broad we've traction pleased the in gaining $XX

majority incremental our the second on quarter, back will the close commitments in half to striking the target. distance fund believe of we the and of within of expect we However, land

in bodes have noting fund private on into believe healthy It's IX, trends PE XX% portfolios appreciated equity And investors EBITDA portfolios the Coming Revenue well Fund sectors, and our those strategy. for portfolios, year-over-year outperformed new up our fund XXXX. XX% to year. exposure we broader the during by which remain focusing long-tenured in percent certainly across that who worth with year, the fund, are mid-teens the over flagship our managers strong portfolios. less S&P growth-oriented

Historically, best investors funds with downturns, our heard, of and of we've one amid complete returns a you've as generated toolbox. market product few and for we're some the

to capabilities flexible to financing more allowed have proprietary opportunities. markets And allow and carve-outs, us to execute when attractive pivot privates corporate restricted traditional are transactions Our the are they us mandate across our to more now. public as distressed

example, Fund of For billion X through year-end sizable X positions chunk structured a began other its distressed and $X capital well We've financing. of another take-private billion investment to already period as October. a funds deployed as in in a capital into of $X variety along

services. retirement to Moving

was As with attractive $X.X in protected principal Marc in billion record. certainly compelling which quarter. The to high channel, the billion, fourth are spectacular environment. $XX $XX a retail billion, inflows the products totaling significant yield organic most industry-wide in quarter a And fourth of an mentioned, was demand year quarterly the guaranteed Athene annuities had including new as are today's retail contributor

driven Zooming business robust generate spreads. compelling -- it's growth, Athene's support to asset capital in, more record has to at allowed resources industry than expanding tied is the and clear origination to distribution, writing which while robust though, differentiated just ample flows that success us that

growth channels organic exceeding of levels year robust another expect and we with inflows XXXX Athene across gross all new reaching 'XX, from highs. For

many require And the opportunities also Asia. status likely expect as pension the in attractive, strongest, also while and FABN solid we're seeing distribution corporate heightened the flexibility. plans transactions funded pipeline more of our from exceed in remain continues but to market And we remain the a group U.S. flow private XXX%. both pension and to annuity insurance of remains benefit that public overall less new is Retail relationships should

in on and Reflecting plan reinstilled blocks the we've of past through execute assets a all the our put business place. facets to our year, our building of certainly growth X-year

XXXX As be pivotal of optimization, seeing we already. year and great said, and execution momentum we're will a

Martin. over let hand it to that, me With

everyone. morning, Great. Thanks, Jim, and good

choppiness, earnings have XXXX successful Apollo. Jim growth As strength Marc and was of and significant demonstrate a of of a our results our execution very highlighted, year resiliency the financial market backdrop and Amid for streams.

our in stable, our of SRE the asset recurring, long total the over valuable. by and first combination management expect we predictable of earnings retirement XXXX, earnings or earnings more our XX% services businesses comprised proved post XX% streams to and full FRE be merger, of year on term. increasingly average, pretax In driven and

to less potential volatility businesses aligned and This that be for streams. versus translates a investment-based income meaningfully on may other more incentive

and attractive earnings model fully is and of business Day highly Our linked of inextricably drive growth the in the aligned doubling intend to by correlated. of consistent regardless with FRE Investor goal backdrop, and We line stated SRE our from growth earnings macro XXXX. with

of expectations, targets, grew this increased as our in a fundraising our clients deployment. XX% a well retirement of point capital significant growth. release. FRE billion XXXX outlined Page we progress and of which of XX% our $X.X towards on as asset year-over-year, Management goal solid investments with in solid both strong and business our met exceeded in with our management as year-over-year, X proof absorbed was or earnings XXXX we pace while fees services of all chapter next nearly financial we our line of by costs associated supported from key

Marc As amid built. full XX% year approximately quarter, fees our capital we've the reached year-over-year, mentioned, a $XXX quarterly quality the backdrop, the up capabilities fourth capital of team solutions in million, incredible an and to turbulent $XXX a million markets revenue highlighting record bringing result

line was XX% margin FRE Finally, with guidance. communicated full of previously our year in

retirement by to point XXX close the XX% XXX platforms, expectations. full climate more investment 'XX, spread interesting across robust and In our portfolio basis to trends initial returns. normalized the points to services reached and normalized net returned as investment broad-based in quarter growth XX.X% strength the basis year driven XXXX, retirement drove upside backdrop, very respectively, services, and investing and assumption platforms Athene's organic well XXX strategic rate XXX our alternative origination fund interest for above higher basis fourth points in our guidance

the businesses. across key I'll of Entering of XXXX, some strength we walk expect blocks. another the year building through

expect we additional that revenue a this strategic XX% X. strategies than driven of yield and strong growth deployment and communicated, Athene, and more fees Fund bulk hybrid Marc Jim robust by of previously The capital capital raised for new should XXXX. variety initiatives inflows growth from growth of As resulting in from be in fee-related walked through, organic management

Capital exceeded Turning fast from we Solutions. Fee XXXX, in far as to expectations expected. business growing as approximately originally revenue this twice our

XXXX, level a $XXX versus this pipeline XXXX. currently outperformance, target to for of which this a by We million Given tracking nicely year's providing we healthy our good baseline strong last revenue. transactions see is support very see

expenses. to Moving

We expenses growth expect our moderate of we in fee-related XXXX head XXX Apollo to of We year to our following as significant driving years in operating total through versus head previous XXXX, XXXX, several employees positive added leverage our total count margin. count progress almost rate full expansion.

top fortunate forward enterprise progress in our drive fundraising, attract we industry on across This markets investing, as has solid growth capital very solutions. and been look to initiatives. results product the and development, talent We've XXXX helped financial strong

behind We bulk senior expect of the that our us. is now hiring

occupancy has employees expenses as higher we've materialized rate increase to this of technology a run principally strategic support growing well and in level costs. as our meaningful through initiatives, seen which Relatedly, our noncomp

levels. Additionally, and pre-COVID expenses entertainment have our normalized to back travel

managing should prudently growth which as rate enter are a We we discretionary year, year-over-year in lower XXXX. drive expenses new the help

XXXX. jumping of of to a slightly equating share. billion point expect All be XXXX, under the or expect off quarter per to noncomp XXXX XX% together, However, we growth approximately $X.XX in FRE you $X for fourth should good

Turning Retirement to Services.

on the another interest year by year well all Athene extraordinary another earnings a target as driven to of which quarter, inflows, our normalized expect was in as We above generated led record spread-related remarkable organic continues to spreads tailwinds. truly We in of as growth returns underwritten fire SRE rate These ingredients fourth strong performance. cylinders. historic to

growth. an that look we we forward, flexibility To degree we and grow much to fund how how to increasing to now, want want we have as the choose

for earnings drive dollars environment last durable come. of and Given added the in highly to wider rate, believe we rising year, that demand years strong spread of and tens leaned billions will and of profitable spread-related predictable business of we

growth which the aid sheet its We via -- a third-party equity includes find fortress highly Marc Athene's balance resources, that equity of manner, in sidecars capital the capital-efficient utilizing referenced.

third-party they already will capital. most of we online, make we remaining up expect more growth, of sourced, of utilization its Athene contributed comes than Last XX%, ADIP it powder. as approximately greater business approximately $XXX as have X incremental is the every capital-efficient And today. which support of year, capital that of capital approximately even double XXXX's put $X to dry inflows XX% or level deployed For likely

strong external third-party provides sophisticated In increasing Athene's framework, risk on capital of addition core ADIP fee investors structure returns efficiency, validation business, and by to capital.

the Importantly, for on gross method investors Apollo fee-related dollar this of benefit Because agnostic dollar complex, earned earnings management either ADIP. fees managed Athene's an funding management total Athene within in from the are we to of on perspective to the third-party behalf asset including those assets mechanism, as scenario. growth of in

growing evaluate represent of group and funding, it across stream, earnings capital we returns to SRE of to on on we've utilize highly the intend another a attractive reason highest economics with is even The and more complex. we return are equity the degree. more emphasized best attractive a capital sidecar that's greater uses highly As the capital as and a before, attractive

by XXXX. will assets Athene's mid-single-digit expect We effort result net in rate this invested growing a in

benefited and money floating to allocation from due higher positive the assets know, to we've you an rate rates new yields. on impacts As

in flatter vicinity points remain net the XXX XXX normalized net which our With we the spread the basis a underpin currently forward level, will to strong full year a of expect XXXX. investment trajectory, curve fourth normalized to for the of we signaling expect spread quarter

organic the XX% environment SRE, and expectations of growth use SRE investing we current of of interest more normalized the and 'XX. equity, growth we expect backdrop, of year-over-year rate And our growth, in for in earnings FRE when the aid combining normalized XX% expect Combining approximately than XXXX.

first 'XX. principal half capital equity it of As markets to in relates expect volatility activity investing, continued the market we at relatively and muted least

more it's the our continue difficult multiyear on first with we through move share markets below in currently $X it's to into year. target of a phase to back the half accuracy, monetizing 'XX. have market possible predict actively entirely of If we'll year, the average half we PII into Although based pipeline in expect visibility to our the of trends the per be any improve,

minute Now on capital. finally, spend a me let

we we dividend, of stock of to repurchases and base buybacks $XXX reminder, to on over As capital increases dividend $X of 'XX, fund $XXX spent strategic $X capital billion dividend opportunistic via for capital ongoing $XX the a the including generate strategic share million of to on to immunization. invest capital billion billion $X share, XXXX base and expect billion of over investments In $X and opportunistic nearly above about million for $X.XX capital comp for per additional XXXX, billion investments. growth returned

strong with sight we Given of quarter have line annual the dividend declaration. we year, a dividend starting X.X% raise $X.XX the to into per by XXXX to growth share, intend earnings the first

to as the a highly we buyer We also of stock believe remains value be expect intrinsic compelling. regular our

on In note executing on refreshed and in enthusiasm. market X-year backdrop. strategic great conclusion, we with the our focused year next strong very a ended very the what plan difficult a leg was We're of

with back call Q&A. I'll to the turn operator for And the that,

[Operator Instructions] Evercore. coming Schorr today Glenn first of The from question is

outflows. withdrawal. half on detail, to and inflows, all a of big Athene have was retirement billion I particularly services. have and on Appreciate gross little inflows sale billion one $XX quickie, like services. actually the attributable looks was $XX go you Slide retirement the policy-driven picture XX, On It also you half through growth but on

backdrop. bit out this grade and portfolio So more just then investment surrenders. that you're assuming what on And maybe curious you you a holding just little could and could just about your comments if to up then the flesh credit in talk on

piece then I'll it's up. the of Martin will Glenn, it, Marc. take and first pick

under What do our quarter block closed FABN, So is is which the P&C the surrenders scheduled maturity not during watching Catalina. We to just fourth P&C normal the FABN. you're closed Catalina basically one the then at believe of in year, the we $X block level maturity is And a continue attractive. levels. billion business. surrenders, reinsured market to of normal that of a be

we long tail closed is so XX% block Catalina's which and with of are in XX% closed diversifying business mostly fully but in P&C a annuity. And process to P&C, the block runoff from

with is like It these is sorts it Think X and participates it another of But side-by-side ADIP capital. modest X of transactions. base. of source in and in ADIP, ADIP it its capital

$XX else $XX or business. the going a on maybe So what but it to to it years, of grows billion sideshow really more in billion is is just a over number

in words again, We nothing basis across heard excess without grade that mean can were credit. say, publicly of or of mean can nothing in credit, that just sheet, these the lot regulated X there's I back over you've gives speak me grade. that On actually gets be credit credit spread is traded private Glenn, for about anything. words as have -- And and to private portfolio. investment excess their it on corporates the X AA investment risk. there balance a In like below the in be portfolio. I say, both are the don't notion. see, credit, words X Private portfolio. us place just terms but impairments There's Both this And it going points. to a we concern private cause

of is question Blostein Sachs. from Goldman next The Alex coming

a to that whole guys I engine powerful have you ecosystem organization. be that really continues built question Marc, a origination around had for you the the for

kind like commingled your good being how Athene pay placed mix or ideally? account much to through whether origination that with you a course fee, is Athora? of goals. billion what a And has management of ultimately, at much want been question as How while that forward, you My very would placed annual it's separate or fund. on look this to third-party run look of your over clients your that 'XX, So way is, $XXX year, the rate

size and So me. give with I'll business, front of Alex, you the feel, detail. have get it's you the and I not a But we'll a statistic I'll to in back

So year alpha $XX from, of $XX other origination, off on origination. Jim the platforms of mentioned, came $XXX what billion traditional billion came methods or companies, sources us I would calling this say, and as more high-grade of origination, billion of

the platforms, addition The rate new given The plus above of platforms, run vast run the be Atlas materially in 'XX $XX the what's of will we the means now by that, the of SMAs. meaning tells Apollo of added about investment up goes billion. majority and originated, that way, that XX%, being that X grade. XX%, chunk in me the gut Athene maybe Athora, X/X another of ecosystem, that ends My is into that rate

as in the the business build And capital our going solutions is somewhere we balance through business.

will we forward, into new be Going always clients. expanding

kind the of it think Athene be. share to is needs I Athora where

Athene call, the of X% XX% As I the lost balance, said Athora everything, to of and lost everything XXX% on of is clients. to and therefore, jokingly available XX% nothing.

build XX%, to is as or another recurring XX% XX% the job or Our client third-party business to capital leaving XX% markets.

generator. solutions capital -- Clearly, solutions a as moneymaker a both as in me, but important we client business view excuse capital as fee the

pick come publicly comparable the alternatives come less clients, time IG the basis for up that are over traded have New Apollo, clients, investment-grade they rating. can much particularly industry, the points and to never seeing who XXX, first XXX, XXX

their portfolio, it. And they're of doing portion a so for

a this sounds normal, having buy. And while a we're it product relatively discussion is not and can they

And we're product, into time they the experiencing for sidecars comfortable so product them recurring into revenue. And and source solutions. as capital the the they're a of with through first get moving

going turn I'm to to it Jim.

Hertz what AB it's us access offering sidecars doors that product. interim alpha, role to coming we of that, The can as us and of for only in really then a pin investors few our into had our would sheets commingled put services several but balance they But doing a product. double-click on and pre-securitized funds. on a that, I'd be platform. business, opened And access will i.e., said. and the the for folks in ecosystem, And But giving warehouse is past, now others of core it ecosystem creates and or amount little retirement they into the finer really ecosystem, Atlas, that Alex, they Marc come have the again, end ago asset in an securitized years flywheel. we results, with high-grade that What a to to and that's it have securitized our where access It InBev. the creates we're only our the started amazing ADNOC products, did bit SMAs say in our

Research. Davitt question The from of . Autonomous next is coming Patrick

this on have are to release suggest Could the of you broadly, seems And a incremental maybe team more here follow-up annual to been more the has origination be specifically origination are related discussion. this transactions. like is the announcement mean volume kind running then first Suisse what Atlas the Credit at? Does frame there I the the to beginning? that things of announced that that going more

Yes.

a is had year historically a of several excess raised years. the this -- billion last So $XX originated in group over had that

licenses excess less, but XXX or a release, it There partnerships. chunkier, of variety it's of underlying -- as a stated, staged international it's why the with well as in platform needs sometimes and regulatory closing. is was massive investor consults reason facilities a some a to be Sometimes investor of financing you're seeing The consents approvals. bit as

in closing. is announced initial we So the bulk XX of what hours the last the

retirement They've that as You'll appropriate operating see for first And an is rebranded. or the us, SMA portfolio our on the there closes by They're it team rolling done will But is years. along, the roll of fact will several several been stage. behalf services, variety Suisse some facilities will that really there But next Credit about interesting of entity. over we be what's all is on not be be it's a commingled it behalf manage only assets next engaged. the midyear. that months. the and residual out side a as and we we cars but manage of over

has these -- that businesses give this, competitive Marc. before. own we And one here? is is the about to it's the execute this banks with again, heretofore thinking existed of banking who of way to But of We do Patrick, of always business a the system. we outside see banks. want what have not each a you I other and

equity, -- M&A, We And banking I confusing derivatives. a want banking the actually and We the client in client. but advice, are don't we I'm competitor to system saying the not the wants. treasury, FX don't We system. way, it can't what sell a want don't payments,

they what is banking The when most those the wants system the the want asset. to sell part bank -- don't things all for and

wanted So banking a not it incredible But that we business actually client bring bank competitive same interested are. are to to thing competitor or you this you're partner historically the your boutique, a bringing if to in have system. in because you a you're who's to an the

job as to suggested. a Our which is box, capital represent box, here will Jim capital as serve investment-grade an

build have and massive business. will We warehouse a

X The the available a business. stat good really de with to spreads, single-A of I the spreads, spreads, a of than is $XXX broadly is business in at which then investors. which last warehouses origination years over warehouse more believe minimis very X, are The credit at have wide we variety but mind through billion my cleaned is losses out securitization,

clients to have financing to their nervous Also, where Our job great lots also partner banking about full-fledged but partner boutiques bringing bringing they're competitors. a we're system who of existing on to who to banks that are to who the is capital. scale them become someone have don't businesses a just they is client. are for people they where a in us the want in to hold their not positions, side-by-side they hold with them, don't securitizing be to who want Bringing competitor or

excited be about of we Kim here. amazing us, front and very That's our job. team done work Jay a in I of And -- but lot can have built an we're has what

We make in to to this it's in strategically accretive up us to our expect, suggested it XXXX XXXX, as financially platform. but accretive will be I previously,

America. The is Bank Siegenthaler from coming of of question next Craig

A to and OTTIs. question on Glenn's retirement follow-up

has loss rate economic trend view on And rate what recession? basis points XQ? of do X you in the been this how this especially was But the for prospects low, historical very have loss an should annualized. year, light in any Your

Yes.

through rate we're class not every was loss through a It's we're So -- in right rigorous Craig, that seeing we uptick. it's -- and Martin. QX. go process, seeing pretty as not any of go asset The just top on

of realized it reserves, stress losses. coming reflect incidence we're backs, at headline, and look loans, adjustments, you the across loans, which credit other CECL actual in was were required accounting through, ] not peak-up class. [ actual any there sort just But commercial asset the losses resi the actual If some but seeing of changes asset just don't any

doing Yes. from questions Torsten that, cycle about matters. not I sectors a having discipline post a challenge. there time. I Craig, entertainment, there's following -- that certain and COVID, economist. purchase credit concern, of are a well. sectors, we're And doing highlight, the I and our are we're very the certain price mean that the there's and just perspective, in Hard there could Hotels, auto airlines, very if our let of industrials are reality bit having tough lots or are lodging, know do We'll is just a well

banks. big book, a book, strong IG book. AA, book, Our CLO IG of have Big lot really the AAA financials,

we're feel we well really So like the strategic we is -- asset together portfolio. allocation, and thought-out very how it a the put robust have we showing nature of

Craig. I'll just finish it,

of You're communicating going what's additional to this see activity its from year a tremendous amount in on. portfolio and going Athene

to good to tell, the they're very echo a be that where and transparent for absolutely sold. to structure just illiquidity origination. We're in absolute and and getting credit. seeing not -- terms portfolio, of is gets in normalcy how credit. Jim I'll story team We going and have for in tremendously getting it, it just we're We're paid and Martin and very the for But And started. anxious for not visible paid tell

of next The from Michael question Stanley. coming Morgan is Cyprys

also XX% your guidance. a of rates, cost the But I ticking of Maybe normalized could XXX Martin book are spread. the 'XX. think I for SRE benefit is of seeing higher also moving but maybe think just here of the to I can the correct suggesting pieces circle portion liabilities want floating. If you I heard correctly, quarter. me some you were I think up help funds you XXX the floating, in or on to from Clearly, We're back the not. unpack in

do look was that you net on to X business? see years, spread new I to where the Where some cost So moving SRE out as settling And time? hoping funds just you you could over on of X elaborate are out pieces. of

Yes.

to come a as to So single net reason through we rate benefit the holds puts out, -- quarters, that. and benefit at number interest curve provide benefit through of takes will the that the the get of short that numbers. of just lot as right? floating A the increases starting on rate that's sort is the it -- year. assume expect, Mike, rate you'd The And diminish, that year, we of the today's couple into go and assets -- has a that over flatline for that's next for end right? we if the So temporary

costs hedge to and rate of There's features are policies, required are option also which that. that part

we're [ seeing fourth spreads. that net basis some And assuming headwinds fully there. ] had added was costs, OpEx of and we're financing quarter so million points terms extraordinary And of before We in XXX costs. $XXX

that, in our And that so we continue. don't expect will models

basis the components what the of get net anchor is if we appropriate for an to down above, including we alts the that's that believe XXX that And more sort view bring which a the so XXX points. all go you to think of level And and for year single we're metric, appropriate trying to the most reason a you to to normalized into year, of is spread given it. that the around allocation

Martin stepping more equity. that pieces asset relative back has One is the at and in it credit that, attractiveness flesh is out. I attractive Maybe of alts. class I'll if than look One of X didn't simply take to today, the be saying

all And Athene. do equity, so capital from business. nets down And you less to will allows us see that requires this credit more reflected in the than which on-the-margin of allocations into

capital earn Athene, balance the Athene's the it's in a capital choice sidecars model, the essentially at fee spread. is FRE this of have and keep to realize Apollo you And business on and growth at XXX% to the managing for piece, investors is the own deploy and allocate a other choice. through The for important receive allow as SRE fronting we in of that portion sheet and that receive a the books, business track our that or the

investors investment-grade at in in attractiveness the perfectly credit performance another Given credit, ADIP take-up strong we've to private to of ADIP of really for low-cost opportunity liabilities, invest seen for investors is the why such matched addition with good is X. which X this

where even very a growth any to have to we sufficiently suggested, will -- Martin the allocate will as attractive sheet. Athene we origination of the is organically, balance strong not a of not justify But we more at cost funds will to that spending expect so we looking than sidecars inorganic And year money. now

the understanding And spread of it's much of so keep. just business, the how to it business the is we understanding not elect

in deploy and how so as fortunate sidecars. And expecting we're number between we part the want equity; then that anchor choice. We're A XX% and we deploy to combination much side, the versus margin -- how we through position have to capital about to need much second you principal on basis on a the a growth want where debt is in points I growth SRE think of reflects which year-over-year. margin, of decision

O'Shea Wells next from The coming of Finian Fargo. question is

what you Another advance you on the go sell And relatedly, or provide And if so, those like AAA, of Athene will parties? the mainly Atlas financing? or more external on so do Partners rates similar equity something deals, are to further? offering then, warehouse origination. Will banks internal to the for

Okay.

the not going consortium warehouses. or us a Athene again, facility. that commercial other offering appropriate a what offering Athene with either residual investors, estate, Let's take banks, for as take massive is will of the you're facilities. global they'll the We're for and back real a mezzanine that consumer the take no. estate second. out. familiar -- global There's facilities And resi real banks that of the very financing facilities; are financing step No, the

to not have access What this were the securitization higher attachment with and those behind which attachment talking lower to facilities They're banks. taking we financing what and points And again, lower contrast spreads is those Athene I and a senior investors other earlier. will is spread. risk, higher residual

market, XX X XX%, XX% attachment Think tighter [ spreads, to ] X spreads. go dramatically securitization once So over. goes think where, at to XX, the attachment companies to point XX%, points those XX% the

manufacturing is -- we're been ever what able of others, many, to investors, about many facilities the in got participate So these to earlier Athene, they before. process, in talking ever they the had and than Athora get offering earlier these

be which everywhere. commercially available structure going say, that it's important to that talking than not credit advance the different nothing is the is rate -- for think want we're that business I what in There's origination. about and to to direct risk We get about. we're in paid

in We paid are we're not looking unless supposed risk get for risk. that is to paid for get credit fund a credit credit to

of this, be equity side. avoidance. funded and structure And the by laid will the the by funding will this of about in is And there's by XX-K out up. upfront. funding little It of very This itself for terms AAA platform -- that third-party required the coming this, is investors funding funding all side in the

question from Capital coming next Markets. of Hone BMO is The Rufus

where I was sidecars XX% you buybacks guess of capital deploy that's up the amount top that And were the comments last The freed about looking efficiency curious to capital back to of I capital I to think you're about stepping at contribution, quarters, up. that? wanted about fair Athene. being of of you've how all couple right capital. capital. now the to hierarchy. suppose And mentioned your come I are at about your the I a thinking

It's Martin.

buy at very the about. top and front capital programmatic that, current have of choices multiples. we we attractive choices, in We expect see of the use of even given are plan that's to back the stock, business So which think us, at house, the we to be a

in less people a think company and that's see the now, then we business, which, right because the X invest of the being an are like with increasing And to a X need S&P to think initiatives be next do acquired. and the is being most I portion out we and frankly, small sort not I think of given growth organic. built portion dividend for the to important

dividend that million. from of up year holdco Athene capital benefits from $XXX So a each

that at level. then And at current massively. efficiency the when you growing look that, the Athene continue capital Athene its at will expect level, We is

XX% capital. year. be fund million retained the next used dividend. So growth in following the That requires creating ], Athene just [ SRE up $XXX is to ADIP not many will that's of by $X.X finished, year billion to and growth fund

the at without look has we group terrific structure to spend as ADIP, its clearly and capital it's to of own across returns the But $X or ADIP more and choice accretive the of Athene with benefit the validates ADIP, of investors. leverage for

then platform -- AAA, there's So right, the which to gets and strategy.

of pockets key increases own dividend capital they at. for And in it, attractive of that optimize are buybacks, So investments are we and ways. their looking that capital realizing uses to the look we're all

capital requires at growth and Athene. -- But so

low appropriately what's And making is sure above that on robust. to maintain very and we're balance manage focused and capital that required really sheet that ensure can strong levels so leverage the we

The question next coming from is Ben Barclays. Budish of

Athene. bit pretty I of that outlook going you like to next is a sounds growth inflow guys to nicely on year. a confidence grow little have It dig wanted for lot into in the

curious, of we next curious normalized of And of think a of ongoing as it's from year. side, curious, rates retail just versus the just of we rate run on new that go should is underlying of are. the But into what kind just much coming explained given kind strength kind somewhat where how Just sort pension on seasonal. you that as distribution side,

between and you new it to breakdown strong is back distribution, but on lower me versus distribution So get to prefer we'll rates. clear the higher rates absolute consumers that

this X And be that, so steal year or we least to I opened And expect -- the their they tailwind beginning been pockets in distribution, but you're year said to won't massive launches. at Athene's thunder industry. new have a strong. new Having incredibly announcement, last seeing up

of and distribution, suites we still new so not expanding And mention are in early phase our build-out everything to of else. products

a appears we've really least good days, So distribution. I is that tailwind And really seen there, think it the far, what at is across 'XX so early off based to good start. on

comes there. In of doing terms of is do business there's volume a that out only this lot spreads. is worth acceptable -- a PRT, the at But to business not

what have the billion, provides best and and do greatest which in our to there within for out the optimize we it's we the that spread of so mix and roughly of And us business. a the job want are budget $XX-ish to that term year, deals

do. -- in to a we This I'll say, question temper going expect be will choices we did organically 'XX. will how much that what 'XX, whether business Athene business we to of make and question there's exceed of want to And expect our likely we will be We growth. to have is and in do. This a not

is O'Hara The next Jefferies. of from Gerry question coming

are maybe the expect just fastest-growing a in the And of sort for update a could that of biggest comments appreciate how you products the able could we generation. hoping your perpetual relates to and an days, little us out bit of sense sense prepared to kind sort we of think, wealth. the on also, to remarks. product we X the as you Hoping give but then maybe it still global get not of a can balancing, products of be outlook while cadence what that get think just incremental be or year-end I looking the flows called early I if it's might of to necessarily by about

credit. question. $XX it, right in a wealth about And our in type perpetual entire we as in interval as we've we billion. interval like fund products what also ADS as Marc fund Apollo of of around a is nontraded probably in estate billion $X to you within and Thanks from out, well taking be Solutions, AAA; about billion this $X.X like of of billion, $X created, of our $XX got in been year, purchased now dimensionalize couple $X Well, last of a to for platform a step Griffin, the the which year talked just Debt X/X product point products variety We various the billion did which has will products. billion, And that real REITs. back, existing terms global of the that, channels a

growth those. broad see we So across

to the that again, billion providers. be year is The of those handful appropriate view, in of is variety as But of wrapper. channels win. our not the this stepping to put who residual going this distribution you're a institutional And win, then is are journey. will back, long Certainly, the the products $X our of going characteristics a we everybody a want producers or

We record. track have the

is the the is and have what's and the brand, We education. technology necessary additional

So we you if will. want to those the are how riddle, solve

we're have think redemptions we any would seeing not that Windows. gotten -- have, vehicles performance. kind had as we from solid at We've of not But the anything year-end

funds happy the we're to to our So the years of retail at a more year-end funds, than very the X drawdown none the with feel between I set. perpetual those, X as couple on. said, we're from journey ago product comfortable of variety we -- it's of And almost with

is The from [ question of next UBS. Adam coming Dade ]

on of retail think elsewhere year. some a the mentioned Marc, wealth. Just follow-up products last faced I challenges quick you that

education. take-up? of much mousetrap? do mentioned has How a distinctive products that And sentiment. the dampened recognition How also, you the wondering just Just are truly just have you better Jim some far that seen so view of kind Apollo and

think we about, that the largest public Well, firm of be doing we've flagship we're has on as over next years. Apollo Certainly, think alternatives line we vehicle -- our several could the saying, the and think talked the certainly, we're of what what Marc been we're providing AAA as they're incredible Apollo of with those attributes. are in bit groundbreaking. some somewhat the use I with we terms value doing a products insurance unmatched term we the think -- they're and doing Altitude, But what

That redemptions. having noise being some some said, about there's been folks some there other out

doing discipline a without don't by part be a terms they're we're right incremental that transition. journey, the I First they're hiccup think happy said, yield of that in, think cost. all, that engaging of comes being this and people mere long that in thing making successful But the is the a transition and to sure in of

a it's And you all been broad, those doubt, this have We've take-up not to things the available we on channels. about talked just set to create those has no Academy, Apollo which is education But multiple resources have broad that about. to extraordinary. launched

returns, So technology as as it's product applications also creation, well education. but only not execution,

turn time back reached allotted closing event. today's floor we over Mr. Gunn to have the for Thank gentlemen, you. the for now questions Ladies will comments. and I for

appreciate you, what questions on continued you any forward again, feel for you And to Thanks quarter. to thank interest attention this Donna, your and if out. and have your call, Great. we next in with everyone, please follow-up look I speaking time discussed Apollo. today's We free reach on morning. again

thank participation. gentlemen, you for and Ladies your

your off You may the the lines rest disconnect or this of time, at webcast log your enjoy day. and