Apollo Global Management (APO) 3 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to Apollo Global Management's Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. This conference call is being recorded.

This call may include forward-looking statements and projections, which do not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements. certain relevant during performance in business. discussing management conference, of be are believes assessing will non-GAAP this measures which the Apollo the financial non-GAAP in GAAP is These on reconciled presentation, available website. earnings which figures company's the are measures Apollo's to this on to sell offer constitutes an an interest in nothing or that offer of solicitation note call Also fund. an purchase to any Apollo

Investor now Relations. to Head Noah will Gunn, over turn conference of the I Global

the release call. Great to Thanks Earlier, again welcome time website. really you spend investor opportunity Donna supplement for with everyone to some our the We're we thankful our portion published and and this on of relations morning. our financial earnings

resilient $XXX quarterly or $X.XX more generated earnings these characteristics solid retirement quarter, per year-over-year, fee demonstrating two included the million, share. Together, results million services these strong, you'll second normalized fully of per streams totaled in management $XXX than and that XX% our billion of quarterly or and asset share, spread that and Within $X.X $X.XX documents aligned increasing related record businesses. we earnings very the record of earnings see growth related

investing HoldCo reported adjusted or items, income and with normalized billion, income up $X.XX of we $X.X XX% share, Combined net per year-over-year. principal other

you CFO. our we've me Joining Kelly, Co from we from received remarks. of detail Rowan, attempt in and some our should the further President, length are of And our Marc some Martin results that team to to prepared discuss Zelter CEO, shorten feedback Jim

be a that endeavoring ensured the himself that of we'll has today. making at Marc do promise, risk So false to us

I'll that, turn to with it Marc. So over

FRE calling it and out And detail. Noah $X.X wish normalize they billion how can all any the is for of worth quarter. through. truly strong Martin SRE One very, been. that SRE billion for we year has hope will which very said a event, track and and normalized to FRE come as quarter, and for certain of exceptionally In SRE strong Noah, are earn things plus thing we on the ,$X minus no was Thanks just

in has Just years to in grow in as Day hit laid some context, have their or put they will financial in XXXX XX% strong. now our and SRE the job, out two years grown a Athene target team and actually row, Investor two ago, they years. Grant continues only just and business Not two sandbagged and exceptionally an clearly are be have the very doing to Jim but exceptional everyone,

and another first the first in prior in -- on organic also out from investors of month, financial have the quarter $X after In of alternatives Worth another month. institutional closed actually $XX on an an addition of had many prefer billion This close for quarter close our end. some we Funds, they Net month. the Focused business. a retail rather feature our to is of end had basis, the inflows inflows we results, shortly shortly quarter the including of closing allocation for record that the of And High quarter Many than after point of billion on the to the something view

So to expect quarter this account by for a we guidance giving little actually quarter business I more careful will and that operates. how be

over And leverage years benefit we price few business strategic is we've of that to facilities short, One and investments matter. previously, view, excellent. years. principles. the really simple anchored upgrading operating of point positioning expansion continue positive our the In and past my and margin generated And over this and the and we people from From by in as purchase made our couple three expect next discussed have quarter. Martin we we this as

and institutional and clients. alignment full rates. return money That feels dot we pretty what both is of of an with unit printing excess and second our hot era chased do, It not during zero good. Having retail the risk. our our actually per The clients,

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me equity this for year start business, era. the and business, terms equity In of marked business the the with quarter in the has end the of let an really

perhaps growth So think fashioned tailwinds of to tailwinds pulling equity I the tailwinds prior decade, about way. zero rates. have slower. We certainly People find produce net investing stimulus, happened to very over now been XX% ourselves forward in and versus if to around IRR, what the results. from back money In quarter, actually have there $XX believe and good incredible in in timeline. billion the doing. X extended IX fiscal than need the over the equity printing, demand, recent Demonstrated now old were They'll higher, close we've a just a XX% nots. is closed. investors; decade, be equity continuing gross for of haves what Fund to brought Globalization and by I business, time is generated longer rates these alpha. absence will between just really Fund over business an XX-month are interesting mid-July, go is retreat. to have will market they The the final IRR. The fund in that's in an in marketing period private private capital, from a

confidence was get financings, Our done. which Univar increased it large transactions certainly at ability like than us better to market very giving that time came Arconic the for challenging in executed the two we expected are and both

the equity move to rest me about quarter and the two from of I Let the expect on business drivers what of talk the year. the drive and

First private credit.

quite star a both how literacy the serve are think where to a Michelin credit, that has is private quite clients credit very gotten that entry can around start most the And pundits Well, is and on are can sloppy. way. the private people the of financial private credit truly business, stand positioned. market business, entry a of C. full Triple we grade, a private sheet about investment serve private are be is you high. a in actually previously, staff of balance hotdog a be time, can barriers two credit? investments credit. in allows to both As your extraordinarily capable Barriers restaurant, a I've everything actually credit. Think can the private fund, building Private is That talk What words markets, Financial about abstract, of that sophisticated credit credit and if private or enter the with evaluating to food. private nothing. difference credit. credit needs low, and business these mean be But anyone are said we bank the And private either ecosystem in in between food

X cyclical very It opportunity. is levered to platforms, billion And XX a right What invested past focused every is some much, with business tried It solely build that's high grade liked larger know, not not about They're important talking credit. is platforms. always the business. people employees, if than a what times lucrative. a single of yield than we've can much investment right private we small X of an single point $X that to wrong, and we single day There you not ecosystem. will focused time, That's be barriers do a investment is lending. have origination lending private me at credit levered are We've get low to reflect Don't By a market tried sliver because business now. not be decade, Apollo building is a entry. the on in originating on actually lending terrific terrific in X,XXX they who one business. the least are But the who most grade. a very levered at build as universe on the market. is Levered fund, larger the lending market not these times work

to market, supply and unique a how shift a are To base need change gather great beginning I dynamics, great in time for recurring higher that's shift a have is and is credit. to you change rates will in a regulatory of that is only believe This This provided and speed. Not a origination. in This private do be not successful credit. we private businesses in we of for this continue secular a the credit change. time is market secular quarter,

originated these transactions. certainty, some of with detail XX% in traditionally to This speed associated But AT&T, and the scale, $XX quarter Borrowers billion that we of value, names some Novia. will Zelter you from credit, to with the Air Jim that and addition are platforms. France execution. private expect would

business. addition an of need of to integrated Because and after we origination, In capital nothing. XXX% XX% you want everything, markets all,

of private led by job Craig extending extraordinary non-clients. Farr business clients has ACS done and to to credit reach Our an our

that ways show the greatest capable people of and are what them yet not this In to among the fact, is clients of. introduce firm we're we Apollo who

This from quarter, party we the to $X insurers. improve. expect this we continues as raised to gather third market speed capital of some billion And

credit, private consumers market. the asset traditionally that particularly grade, For businesses borrow backed and way investment through the is

billion most for than one to been better which is part, trillion This XXX volume credit. we for private $XXX than the in long Asset $XX More backed very of a date, time. and playing is a have market, very, relationships.

for investment fixed key billion of of of currently billion for driver grade for traditional replacement increasingly is and it for AUM us business associated clients. what our is Most clients of our have $XXX third happens with party Athene a third more and is $XX income party. ABF We for than insurance institutional insurance which ABF, in our and

base. what time they we There same important confidence One are that most in of that than market price. the single with is the own client this alignment. own We is inspiring more is aligned at completely the at our nothing factors same

talk spread and in SRE more year. source for on have ability $XXX investment this quarter, by the also talented was one organic a billion the grade the results of been in has Athene quarter. for Apollo net the past XX% line I of basis Normalized incredibly driven now bit year-over-year, that credit We inflows attractive annuity market truly share. move Athene’s than team can of number in than the million, of up widest XXX remember. organic part to the to $XX billion inflows Let from points me did to quarter more but was are years. the normalized credit, sight $XX about building Athene private by XX job little the

leaving are estimates annual and by the originations table. We of on $XX $XX between billion some billion

have franchises. reinsurance quarter to made gathering And We this I and the at elsewhere recurring selective, be to believe Asia. an business progress our Truly, build now speed. in in through and Japan, we opportunity Athene is business,

And decade. detail, beneficiaries of are sure outflows forecast. we The what surrenders the floating expiration at Also the primary times. we the and happens Although, chart recall in these senior of I've that our quarter position And at as are predictable. the and truly secured prior part from as a education three structure interest and have incredibly as included capital will ago, Credit we've than came is time the detail. benign, cautioned of more as driver that experience as programs I'm well Martin on is quarters, any quarters we carried and exceptionally for basis, we timing for large is the was highly than than that good Martin will sleep point if I'm five business better built basis Surrenders the on you as is night. also a of rates. doing. top well years in two less points, recall sure most quarter not put of which in this or in in at the the prior rate we've been It better

charges been business environment. in rates to you were operating and We above of and today's four risk time fortunate an agreements. have today channels, transaction inorganic diverse dependent we block the buying block contract have imagine ratio startup rating. to adjustments business of to beneficiary in new built scale now We to retail, contrast, an having those of inorganic rates our from when high allow market four we therefore the organically at the Right an a credit and in purchase for channels high have we in going were All a blocks. of It done have much are on could leverage is years. that of is a market, low. very not PRT, to At a difficult their low a someone a inorganic funding expense greater where number or rate surrender surrender today. value environment is able Athene rate not But risk In a melting is and actually ice very buying where cube. reinsurance, was infrastructure an market degraded And stable have business. quality a and are and

which and make business short, In Athena bought to the is an on people year. billion normalized short, earn base more job it and SRE in kind incredible not not build achieve doing maturation Athene minus will billion and to the In we plus difficult $XX that it for scale acquisition is some team come. we very $X.X Recall for a of to stable fiscal the for There distribution yet and have even matured. will of is the has at product and achieved.

time. to effort keep on An

as peers. particularly environment, environment had banking of relates the regulatory me banking to last such collaborative with short, system. Let about focus have dialogue it one it's to people, and been a on environment, we interest want In which talk the to market I really our the the know topic, never

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that the the asset, I the and but typically not most of is the XX% our financial the the part the we back, envy is We world. bank and which customer The role. not customer. step the Recall capital. also the US asset. the want are of investment system have has does of do marketplace is world very what reason of symbiotic. envy are structure the of want we the of world's role, bank We system. If wants, raise Banks wants or the And want its any their of typically the

the system insurance participants which short Our an of have term liabilities market, those many of the companies money. bring to dated long institutional all daily funds, ideal ended and deposits, have quarterly liquidity, systems vast, liquidity for assets the liquidity, invest long least banking and the participants. short long banks, fund, mutual of But hedge them short investors borrow majority or types Think has has on of vast retirement daily open the ability at this and make dated dated who or funds. system capital to partners open ended mutual

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institution. sheet investment is than more much typical grade depository balance Our the

Europe, have even gathers as to in regulatory complementary I the change change regulatory more our And beginnings pace Asia. model increase been system, in both and short, highly this the of the we expect never banking In US, collaboration collaborative. is

shape, nearing summer, on is we're end team of As in plan. the the the great and focused executing

executing are the what's of no new simply strong. front toys, us with We is sticking upside incredibly in from

And that, I'll over it Jim. turn to with

as credit to a And of reduced our now has our we'll risen we're Thanks, Marc. this a playing environment, for many outlining need sources. significantly, solutions We to important and resources, financing with job our and are the the scale believe execution us of of of investment few address throughout uniquely demand cost investment well, and capital traditional higher few of our vision. and investment Marc how performance reasons, creativity did of sophistication themes It's private translating firm fundraising. the has a as competitive our some minutes you like for of and availability clear spend positioning great these capital positioned underwriting. the speed the our

continuing call diligently capabilities, From alternative industry. success the expansive we sponsors the And to to largest attributable is Apollo corporate in are or the today We credit toolbox. everything business and our build the We and and are growing in market. companies in serve flexibly can bespoke helping are collaborative hamstrung need limited manner. else who by public capital between. we a clients a Apollo, healthy Across that open what

prime was The markets fallout bit crisis from a ended with started the more a the bank a the and accommodating. feeling period quarter with of second that regional example this,

As you Alpha. of during might business and particularly yield corporates, across grade sourcing by platform Much of the high capital then which we financing active expect, quarter. we $XX our call including this solutions activity were our to nearly was channels, billion across the deployed various driven

accelerating an $X.X materials secured they $X.XX for demand. and device provided a lending, to solutions extremely CLO company origination. such investment more platforms, we manufacturer. CRE financing and origination as the strategies provided a the billion led meet variety through growth as debt of lending, silicon cap to origination traditional one note undertook quarter, structured direct as as billion In carbide initiative of well or active a company We Our was large an leveraged Wolfspeed, that a to significant credit group signature

non-dilutive the win-win unique structure that partner, capital loyalty our strong two happened to insurance client capital last a successful week and solution, And Flying program. leading Europe's investors. equity our and company's through billion of and discussion manage France-KLM’s we of transaction we would more entered capabilities Air X.X already innovative bolster EUR Air is transactions the which credit this we we've in funds that capital Flying In partnered debt with resulted for solution Blue Blue the example equity world's work a this an one affiliates Loyalty airlines, Wolfspeed flexible case, with announced the following we company's of and a France, and into execution leading of another to with position. recently, provide further exclusive programs, one Air France-KLM, to

We are be the Air-France this unique billion over XX capital EUR a to would KLM, support proud than to of say last aid that total of increasing third capital our company solutions the to the series months. X.X more to

is our CS across origination platform our expanding grade newest opportunity Notably, investment remains debt fully XX to with set former Atlas retention business, platforms portfolio of Amid has acquisition in rates financing assets, activity and term backed extremely active largest substantial been client our asset and Partners, the now strong. over the in has the both SP March, market employee pipeline. the exceeding since securitizations XX Atlas our closed near executing expectations. originate and

the Some of namely and teens attractive at larger are and business spreads, ROEs range. the Wheels in platforms, MidCap writing larger, other to high mid generating

Performance of to Through quarter. instability more appreciated the been year remains in in been X% While been not on to the credit value corporate with last second X% X% per the add quarter. our has direct past capital, period. opportunistic performance first performance and in of half public strategies, and credit origination, the strong over excess each in we the and of consistent benchmark risk. strong driving quarter business hybrid each outperforming excess like also have actively category we unit indexes period for solid and Investment Marc easy. in touched a market with portfolios weaker I'd credit prioritize same performance respectively investment year hybrid returning the strategies year, the our of across and some we've equity the generating X%, deploying strategies, structured continue and return

ADS, our CLO Ridge, Redding or relevant our Through non-traded credit all Core that BDC Fund few multi have and a Plus, IV manage, last it's worth opportunistic Recovery Credit lens, asset months. indexes XX we in Structured over highlighting outperformed the strategies our particular, originator offering

weeks and such opportunities, over Athene and we believe we of The raised a billion expand a fundraising, and by a third to Across Turning asset organic our secondaries adjacencies XX insurance focus into have $XX to party momentum management as as ones billion, clean we and such an business. $XX wealth well transition, few made with to months we as the strategic as have this party, party specific into quarter. third record $X inflow this first the current third of generated whitespace quarter, strong investments billion at last in slipping additional edge, where we pay begun global off. driven

set we've all recent a party Some solution growing and include of the across type. to third seen momentum client for the establish network a comprehensive where fast firm, ensure coordination areas developed insurance, curated coverage parts this client we've where of

our expertise this market. on asset growth is on opportunities we're service retirement managing the the continuing differentiator in very meaningful global business. to And this think sheets, long-term liability We be bullish in balance and both a side in

raised $X institutional investors so various related over this far great to year, our with a is sidecars to is investors. a fund. strategies, mostly investment we where credit greater in invest otherwise scale trend of sidecar sophisticated across partner four billion flexibility than sidecars with initiative, would way enable alongside coming Next growing they structure and of achieve more and type and This

We base with have the opportunities over institutional XX global pipeline strong across for the dialogue ‘XX sidecar investor of a the remainder of a investors. supported in

on diverse to which one quarter product continues built XXXX. continuing each and We expect and has in channel, of wealth to to distribution headwinds. focused migrate substantial a product two continue all and class, global we've asset creation We're a to launching suite made products new by broaden investors retail individual strategic geographic into recent priority. reach, the distribution from to the helped investment be focused product Through platform market raised capital structure, finally, And our expansion. driven

expansion, terms Apollo also of and RIAs which year. We've progress is wealth offered notable banks, other global and distribution five as the second platforms, and some now AAA the as in bank on for US half In channels specifically, Debt inflow our has non-US monthly made year additional following mentioned well we've manage, ability of occurred aligned Apollo PDC I us progress XX All into this this last non-traded global credit the Solutions. performance, a seen in to we and confident ramp the more investment last. over raise versus our months. strong makes this wealth capital alternatives

of ahead So budget.

final with is financing fee Solutions ACS, bespoke generation across business and which and deployment XXX on stable A solutions, coverage a institutional $X increasing Through variety year, syndicated Business, the of been plus for the of including billion of quarters. currently is has more and note flywheel for excess XX we've This and several our variety across over greater reasons, half investors part the Capital organized the with activity this and of revenue of platform, across integration market a are last of clicking effective in demand clients. first over the transactions. strong corporate in

with partner flywheel. Marc’s our themes earlier banks financial of of across I integral is been the bonus, ACS really the as a many indication, Apollo who one broader franchise many syndication a from has the partners new ways never Fund have part landscape. Apollo invested to reaching want prior. As we one our through this are investors of emphasize to of the we're in And

financial turn that, over to to through it I'll Martin results. our go With

before Great, our more it on Jim. we a for I'll outlook provide thanks, context open and financial up results bit questions.

results XXXX a financial So meet way. both position quarter in our these one well We've year this efforts and to targets. and materialize execution, first strong a second as is meaningful half, exceed Marc our referenced, seeing have Jim very in and how completed you're or discussed of us

Management year, increased organic In the FRE comparable as SRE and net FRE points by increased Athene’s XX%. in a Asset for over XX% Services, spread. comparable XX% growing margin costs XX% revenues estimates by of expanding exceed over The normalized FRE by excess continues overall first by In Retirement basis segment, strong all the of and trends period, the business FRE to aided an over by the consequence. XXX the investment half our with period, year-to-date growth

approximately Focusing our second anchored asset almost that of revenue our XX% quarter-over-quarter. remained increased solutions initial strong business, XX% was full our expectations management on starting fees the quarter management fee record and for with and fees by year. FRE and ahead well Within related growth very capital of quarterly tracking the

increased this year. expenses to basis, commitment related management reflecting expense on a modestly sequential fee Total disciplined our only

a the some our FRE expense the to basis line the FRE margin expansion of growth period last bringing in Following points margin in net added the comp just decelerating in growth year. The than reflects XXX headcount XX% declining in new the of year. combination pace XX% of first hiring the strong of with same employees revenue Apollo growth quarter-over-quarter, XXX the first over and cost of half growth half more drove of year,

X% due normalized basis, and higher services, quarters normalized deployment XXX a two our higher yields SRE the the cash retirement record in five spread a our by increased net to On Moving business Earnings this sequential normalized initial increased first basis rate on environment to points projections and basis spreads new on of points has quarter-over-quarter, rate of million balances of spread. year. resulting in financing income net interest of margin accretion net higher costs. from falling $XXX exceeded

conditions, from strategic $XX with transaction levels half. capital, the total at half in Venerable, with a this sidecar year a rate first party in organic payout of the plus both pace. annuities. Three, supporting which approximately approximate we normalized reflecting amount year, the buying third the recaptured expect we including of strong four, down XX% July, to curve Athene the continued interest first billion we shape. origination and that the forward, manage, inflows billion closed capital of ADIP, And older $X Venerable approximately second Looking annual earned current four Two, half, in SRE growth primary interest One, rate components.

be expect we million, This in and third connection profile, This normalize quarter in strong capital order in item a spread the would transaction within we in basis from range result of normalized and outflow Corresponding into earnings with and reflected benefit XXXX. this that a will will XXX environment. will for between SRE. the notable this business the transaction, $XX SRE in the XXX deployment in third year-over-year profile to release and quarters. growth SRE fourth points approximately SRE normalized net exclude we XX% new to recognize as In an onetime treat as will and spread to

the and supports be Athene’s of holds, of XXXX to growth forward rate in term currently pro in longer guidance double expect a level growth. share rata and of SRE annualized with aid low digit the line our We Assuming growth. interest full current of incremental shape normalized curve

higher Athene credit and asset well long-term high including in to credit the withstand just and only its level a annualized which the of secured one Overall, points to has the low profile nine credit relates points. more very recent XXXX, is and believe it Athene As move focus quality, strong, war, a of most quarter, were backdrop, average rates, basis included impairments portfolio incurred annualized of across period is if very Russia bank with difficult to of positioned crisis, credit. remains concentration Athene’s continues significant its to emerge. a impairments with two COVID-XX, structure points, in Ukraine that consistent Since its XX senior capital beginning has basis the of average basis we which experience aligns a top the in regional

based assess of highest basis capital continue terms a to on shareholders. In cash its flow free is on to for returning allocation, regular deploy how best we

So towards repurchases strategic than investments. allocated far share we've year, more this capital

we price, in the towards growth Given see opportunistic value of over organic term deployed for the abundance revenue million in the without half well the we've need share repurchases capital. create long of as We've first stock $XXX growth which our of capital as highlighted, initiatives XXXX.

quarters with employees XXX count XXX resulting stock our In in addition immunizing to million two the over share past a issuance, shares. from reduction to

This reported we it's S&P needs be eligibility received, quarter, over in questions lastly, the that GAAP four as response worth to the the positive cumulatively earnings that satisfied. quarters. last And criteria index second index in eligibility as is we've final to well noting some

mix, within index. of to sector within the long-term Industry us Standard, investor terms reflecting market is is shareholder to differentiated unique we alternative to market a Global market, business suited included Group, our and with asset portfolios. peers In Services Financial Combined classification well relative characteristics, Apollo broader our underweight Industry geographically rates, this Apollo core to Classification management the position within direct relative places earnings stock believe the taxonomy, leading according and the relative growth outperformance to holding be that total governance our

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

Instructions] [Operator

of Glenn is Evercore first Schorr Today's from coming ISI. question

thanks very much. Hi,

on you us and going do all quickie the to billion a of for a on of Just quarter of $XXX XXX? the reason, to just think the isn't not Can I suite What current an takes of you the you do platforms Atlas clicking with originations. have, XX it environment origination but thing. range basis. annualized you them in a hanging have at once, are mean, were be yet full an

Just your thoughts curious there. on Thanks.

Glenn. Thanks

I think it's a combination both. of

not into is I we really progress know, think of are with you as XX much leaned corporate. we really we've leaned the more the into there the have consumer, all happy

as growth, the very stable and XX that secular have that really There But that financing, we risk, of over more. I I we still a time them we the comfortable add strategic we today, five the of some integrate the feel get today. may which the and think goals year and few consistent the think they we objective put think that there's XXX organization five the XX what in in a a for feel with approach, are organic together those reporting, feel But holistic to opportunity. to lot we funding, we the optimization. consolidation year our feel lead, be we we secular strategic have need from don't comfortable to

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

Hey, guys, good the question. for Thanks morning.

We insurance you So last base. And I about little there's non-insurance that of to the quarter, this little I bit clients, from evidence client grade the for demand you by investment that's of investment banking the private about of beyond crisis. talk credit, more investment that can highlighted guess, think for specifically clearly talked taken strategies largely opportunities a supply is destock out rising been an extend historically, quarter. more a opportunity clearly there's Marc, that

wondering was I So if go on strategy? your that, you a could forward fundraising party more little that bit elaborate and how third informs

Thanks.

described which Marc profitability One clearly XX%. few on AAA a see credit, large history, on sheet. not of today been bought funding PacWest that and banks Yes, Like narrowly with as big do has me folks was We leveraged going challenge. big belong balance couple executed financing, you risk made. literally word a the really There’re did Alex. there opportunity. Look is crisis, a And and It's concept. their a dispositions other When a portfolios. are the assets take let areas then what's private is at there almost lending. with the Marc that really maybe comments, became dive. A secured two deep

the activity, one that over years several of the their they is portfolios balance as optimize So continue next and will sheets. selling

The day do and regulatory where of and business. this and their the liquidity are larger where those that changed, of business capital changes operating day because are lines credit not they their businesses sense originator are business as is in, been an opportunity purveyor organization, of to has change, And there the to have secular the cost companies. they make and

are a sides going partnerships in on a both have which we that And have create we're to you business be you is active there's of both those. and will that disposition, So of the sector, ledger. in origination,

way. very for the placements, to narrow they've in buyers just Alex, very companies a And a insurance of have done long been private complete time very, but it thought,

If in the beyond solution. is in But investment no And well corporates, execution. are the market. is And they you're competitive set private the have grade of what investment solution insurance I'll credit. looking traditional growing, And in a your opportunity edge retirement is it's investment grade services you more private call business, broadly placement acceptance you landscape, about solely for the that the is are business. this insurance market

XX opportunity the the other spent basically institutional small last large as years is serving our have alternatives bucket we an The interesting of industry clients.

grade have in our to side large We the to the see fixed always an bucket at investment serve This very of income institutional in opportunity early and clients. accounts. go is the stages. these And it's interesting

they're for been First asked it's right because return. they're they are opportunity, If private an haven't it with then rates things the against question A XX% They not that single today. think that is we alternative? credit rated an question of confronted alternative, comparing in a

just above If it it is they think income. offering income, their it they then is not XXX to basis points an and think fixed XXX alternative, fixed is

an inside in days early investment the insurance is for I as are that of market We large the And outside believe industry as the process. industry. be insurance private grade education the it could

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

in retail leaving you I Hi, what table good the for change you're Q-over-Q morning, some on think in the reasons. in everyone. marketplace. The worse expected, others And many given various we've than the annuity kind of mentioned sales business channels, seen

with point seen you the Thanks. some share other think guys? this could that explained annuity the what else is So loss issue or there's we've of divergence do you to from a something

a high quality Patrick. problem, is This

We have four as I mentioned, channels.

also And in progress as retail then which are have offshore and we the have channel, the and have reinsurance channel, we're organic. onshore all we channel, making and one look of Asia. being Japan the PRT We given have the channel, could the we funding at reinsurance agreement

year about $XX of we and and that put on the $XX believe quality in have We leaving year right guidance out mix, that will some are providing the thought billion billion. of right organic choices than business that therefore last substantially billion highest we that of And was last net the internally, liabilities, luxury some I year. $XX budget, inflows, right have between made the we $XX the of now billion, we're more would do north But we choosing the $XX table. We profile the business business. that this we spread. Recall context essentially business, confirming billion of the and do

our billion quarter And add quarter primarily for the on transactional. we want chose that So business It left Anytime we MIGAS, we call to does organic most in [MIGAS] of to just means the table inflows. doing the other I that elected mean business was not add to transactional transactional given of we can already $XX business. not was Transactional the MIGAS, we business. is versus do bad. were

KBW. Michael of coming from Brown The is question next

Okay, great.

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rates, retirement, rates. their and not clear prefer to not finance higher consumers you're options is particularly it in the interesting. annuity now the annuities had good retirees us us actually have across think lower market. it happening board Look, do, that Consumers ignore that just seeing not have rates to to they quite What's To impacted to are it's obvious. is interest the by to

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down. will the a fact think on do negative, by mean I That will rates in but it market if force. So retail for have share be the overall rates doesn't go margin substantially be negative negative or impacted

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

products well channel, hoping thanks question. private the distribution could taking the strategies the morning, was the products a it the take the brought as channel? more I wealth to next. you wealth how some you're Hey, also from builds had of in the learned you're to you Maybe good across to that out, sort of on bring that circling to any the thinking market bit private private as pipeline traction you wealth, about away just the elaborate be seeing curious, for earlier lessons back of that Would

excited Wealth flagship a yield variety only cetera, for of traditional Morgan certainly laid really been objectives. others, et them but again, we and and Michael, obviously we wires of channels, terms in the minus, channels. products of momentum. REIT tour. and creating bucketing and three BVA, which of BDC, large XX products Yes, was or into also for think vehicles areas, I Global not existing is the independent mean And bit private little you let months a Then but a the out very there the RIA since others. types AAA me private give third our that plus with the I bucket second creating Stanley and the whether it's feeders And IBD products, we channels, then had, a products, the the product, are the big like and right newer

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private Wealth around Academy, a going the to what tremendous are the of a we are of service that our and are all use all full Apollo puck use those particular, our in on us. impact broad Global ability service. step But takes We it in see partners you see having credit. the business. the technology, parallels trend, really in globe. education, It's going products of the on expecting Those look the back one secular big And if a out

In savers, there's a of terms terms think in massive of demographics, terms vehicles, in of of we amount whitespace.

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the performance, lessons are to the the needs. skills to think just bring needs it's it’s education not you your technology you I all about cannot service need needs, early underestimate a, and marketplace, So the the

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

backlog with offset great. can new the longer any and settle outlook selective can would higher being morning. I'm business, detail around spread, trend low curious normalized of for whether term Good potential spreads your you're you around get the very more out thoughts at down platforms of expecting it you. off net in Great. year. half the term from only running through be Wanted at the much. percentage where Thanks Thank most potential longer compression around exactly originations to net net to guess I and think that second the slightly spreads, the you spread

falls it's guess minus. And spread is we plus just I into we, spread, line So so and that which top or basis Rufus, and financing costs still on. through conversation the normalizes, points XXX one, after then

So points. XXX basis

the target there in of the benefit at XXX margin spread derives, -- at and higher order growth well and margin basis points. rates as do some as seen clearly we higher the which we've We so in deployment. that's from business, And

digit, We we the an right update what And And look have do hedge on how from a on and at we'll question, can that's spread. think combines which net given which what low we guidance And through we're we're addressing the profile, dollar but year walk is also we we internally exposure? double beta. and which given number now, focus which growth given it contribution SRE focused where growth thereafter. we to is next on incremental deploy the of that

point benefit on full your the full of, ramped or its and year Next being depending also ADIP share. will fully full include detriment taking

basis SRE business guidance. to will factored is ‘XX. that the of in more it's into all of go more Martin's versus the a comparable And ADIP on ‘XX So will--

is of Budish The from Benjamin coming next Barclays. question

next like, fund the more could in hot way the that Hey, refresher the in to mentioned scaled? where the strategies just some over us you thinking energy that strategy. like of X-XX wondering there. but strategy like Good summer, have if you that importantly, transition morning. scale can a are, I drawdown opportunities Thanks wanted some for And major years a I earlier potential as about you was taking whitespace say, of And ask how a I'm prepared remarks. give evolve you it's your been think clean kind can really question. the other of

system, of to going Marc, scale else for towards seen. quite energy the we've It's rest the question. look, peer just nothing be we this, the professional for ever our Thanks our of money financing look and The movements careers. you. and banking frankly, and at Thank sustainability like transition we group required, we're

and of debt? we we most what the think it hybrid. hybrid? it so When about is we Is Is back, of step is what market, what that and equity? kind at debt money, And it is, we look see

worldwide. Our goal on transition put By having financier together that. evergreen is sustainability perpetual, energy doing to fund focused a of build leading the

But year, funds expect opinion, this at done In on drawdown we will time. we potential will the opportunity or good few vehicle let's bespoke growing. the a deployed first, get to quarter the pipeline raise platform. our getting A we from had is money capital show smaller have funding either billion capitalization vehicles rapidly. that be have that invested we've job in I that initial last those with time and the an it. my a is that that be we the announced with capital, of initial We But see. among equity the made to addition, let's seed And dollars to investors largest than beginning quite of

Let's define opportunity it's and the return really opportunities hybrid a am that there's debt and I the opportunity primarily. great here optimistic requirements. equally But but of types a

Adam question Beatty next UBS. from is The coming of

in Thank situations. in broaden Which distressed wanted you. And out deal a with maybe for spot seems good morning. Nice Apollo. restructuring to sweet could like potential yellow and to be it that and into opportunity assets

terms so maybe has a backdrop, corporate in than the Firstly, far, level more little the been folks bit benign of distress of expected.

maybe into you're details for Thank and opportunity. So seeing kind how you. then how positioned that. term near lean of to what the much some was and outlook And might on wondering Apollo that you want

‘XX, is talked to have the been in credit we challenging. the things business Certainly markets our it's agree, companies. the of we've of And in lion's you But see of mean, more those in terms feel in benign. where overall and cost going our history, right capital, of we is counterparties. a health investment our we grade I been, bit especially nature have we, up maturity ‘XX about, good now, Well, would our of roots I say very call a to vast having this market business start And much the and and our as we in share wall. economy business when terms is going more majority equity robust the companies of so challenge about in hybrid see of doing with is view I are the

and to top be like of we've but doing done measured the way, years. the XX expect thoughtful that heap We at in a for

to the Thank over to you. At comment. for this floor Gunn turn Mr. like time, closing I'd back

for Thanks and else this And very your for business. much interest morning, Danna. thanks in continued everyone help our joining your to

on discussed regarding next call, we reach and forward to us with please the again look If any to to today's your free Enjoy out rest speaking up feel you of you summer. quarter. have questions anything follow

your This today's thank gentlemen, you for participation. and concludes Ladies event.

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