Apollo Global Management (APO) 8 Feb 242023 Q4 Earnings call transcript

Good morning, and welcome to Apollo Global Management's Fourth Quarter and Full Year 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. Apollo will be discussing certain non-GAAP measures on this call which management believes are relevant in assessing financial performance of the business. reconciled available figures on are presentation Apollo's measures is which the non-GAAP to in GAAP earnings These company's website. nothing a Relations. Please offer to Noah that to go will now in ahead. note on Global call constitutes fund. I call Also over the an any sell Apollo or purchase Head solicitation to an Gunn, turn of an interest this offer of Investor

on this the And rounded welcome year relations fourth and again, morning, call. Earlier we management asset Donna. our release short, published both retirement Thanks, for our Great. financial out of services to supplement investor portion in strong website. businesses. earnings our everyone, our and an And exceptionally results quarter

SRE fluctuations. we think reported about magnitude reported importantly, the And this items. And information basis the long-term the understand to with to to mark-to-market to page, has this a Athene's see $X.X year. One XXXX. a of primary change our financial investing further we highlighting HoldCo impact income the with for This in quarterly spread-related net full earnings our included Athene's provide morning's billion share income, record principal on return useful $X.X notable arrive fee-related additional at Combined highlight X adjusted costs reported alternative services, for earnings order you'll historically in or spread-related down power in of record per streams, we XX% within retirement excluding delta and earnings, $X.XX taxes, no this financing on expectation multiyear investments. and results. billion Our than earnings change grew earnings notable is or reporting quarter, items. Beginning excluding historically information how more

detail CEO; over Kleinman, that, our strong hand me and I'll with Rowan, year and to the to more joining ahead Marc. co-President; Scott Martin So CFO. And are Marc outlook Kelly, in results for discuss

and in strong execution. a Thanks, walk actually through was what both Noah. And year it's my growth very pleasure to

and SRE long-term If you and successfully, were of that in XX% we to the had at doing were I would year, we to in in are, SRE extraordinary. not would victory exceptional. particularly the guided that our all to should retirement fact, grow a every XX% lap. ended in Recall are billion growth that our maximizer. the in of you of beginning that, in year and services segment, SRE. XXXX told they me we growth what we normal which while XX% FRE We believe in FRE, low truly business. segment be XXXX wish Those a victory going double-digit believe have XX%-plus was I here; profit ranges, do I near-term recurring expectation We've holding and year; investors more was non-flagship than are lap and not $XX is to doing year is in the assure cash. the for rate consistently our a we a we you that

in a creation strong a portfolio, the into treasuries. had long which used for the results time to also make very move us of first the We significant time a begin countercyclical

from costs as me. about. We we QX. us -- of historical This points. of hear maximizer. this number back portfolio up $XXX our get opportunity inflows, And we Athene Athene other And slightly and Athene where treasury to time record going. We've history. do kind seek Apollo map distribution And In Inflows a momentum, anchoring north were of that I had outlook. a to will expect of for in in also moving than billion PE. shape of the believe, the XXXX. cash discuss into is inflows Martin of business bit than XXXX. those will to $XX exceed continue where would quarter, provide over were really having I a of that and hope XXXX. XXXX, by from the remarks and did we And differently wanted. the shape organic billion at to of pile we we to continued were, billion. and earnings. come we were I as near-term While spend partners in thought all terms Athene XXXX, of allow people finer grow would which volumes, we see billion. highlight perspective us and in a to volumes $XX pace. profit his into little discussing flexibility just XXX also it not strategies kind continue to retreat, basis taking which you an $XX gives we XXX originations dominate partners strong to billion. time will together originations, Credit, originations. record 'XX but this just do. Away we're how AUM. of very remarks strong originations, in Even quarter, up for outlook is road what will year of see details a it was the Growth excuse and [ redeploy In the low spend just what equity ] the and my hit origination SRE began double AUM near-term third SRE, digits, $XXX fourth us Athene to a In the Margins is

drove to substantial semiconductors, I'd the a our that in tailwinds a equity You beneficiary of just grown allowed XXx. us as public and and macro industry. markets, indexation were of the markets, of acumen and a but money fast commoditization and low industry that ] the management XXx. us debt but all result think our not faster Dodd-Frank; to excess we drove entire are factors extraordinary. for return revenue. faster industry rate research was [ than correlation through that powerful forward. management That's Microsoft's environment; positioning, than That's printing; and We've grow like faster than That's Apple's revenue. truly

to say factors that are XXXX. that to us but fact the are of the Some going in got factors have than are I factors going drive different these still us to forward here,

As a about on the in public bucket, a Private a have us of up private and an Private, fundamental rethink equity, reason. business, small big I venture We there alternatives where in public safe. risky. was old days, was bucket. allocation. and world our drivers allocation it institution total think asset the was Most least to had the and I of private And good going funds private. of capital dominated first, is as strategic an think allocation, relatively was between an risky and individual's difference portion grown or with an illiquid hedge generally private the investment at

asking On stream the private [ other risky both to difference is going public public safe our I liquidity. traditional XX-XX is only of industry positive less hand, for are think they'll believe firm. is "Am just they another a not institutions a substantial and private the nothing portfolio but to for think from ] think liquidity. as in a to that we I little about a being begin matter be about investment world is less was that where has compensated safe for they and and slightly and is, as alternatives a where perceived but the Stocks and liquidity?" a private our context, And safe. bonds pivot and just question I risky; see

The market public second returns. is this continued commoditization of

dominated between public Not indexation extreme an with valuations concentration of at of just that a by companies much so outsized but correlation. the market of PE and are is that debt and equity and drive indices. outsized handful do equity markets, We and really -- our

feels other While easily direction. just can go That great. up, the that as going that's in

public from worth the Sophisticated are markets to of And indexation. High will and the individual markets and for institutional beta the individual, into other public private other net they alternatives. those alpha, investors, and if this. and need investors entry solutions understand to and for through look themselves seeking markets in the separate look than of the they

potential of This be is the if our than, $XX institutional large, larger as early ourselves hasn't market. in started. are to the and such even days as peer private investors market trillion earliest has not for our We a that group ultimately this. This markets

get there, to take us it's to going For education.

we're allocation is that well Why? pool an We incorporated which of into XXX(k) understanding different powerful years. to to look are there's people force the an of evangelical investable I very portfolio is private is financial market good for for private, substantiated investments trend don't know we beginning investor's cracks immature. an at a than to think well but trillion them world, country in of be largest why. in in capital and records, academically reason and through firm are this industry. I the very in XXX(k). investments anywhere some is do our even liquid returns who risk, need can These for again because in most, bodes a can daily this level $XX what our the how to but why. be the XX for and of private And see I think the these our portfolios don't the very, I allocation

we're Finally, [ ] that we can't all older. getting escape

poor us to we market the rotation fixed allowing grade. The markets older. at portfolios getting ] a is older. guaranteed older. short, Most is public, $XXX surrounded crisis normal by I well to have into Australia is small U.S. getting this getting savings in role individuals' as markets. The replacement. so-called the there Europe retirement particularly them of investment income a ourselves is getting as savings. management, and as very asset relatively private in income. older. markets acute. as entity income is of firms lifetime investor billion provide known. job as ours fixed retirement is them society Japan done numbers massive X to Our scheme getting a Western institutions' allowing are a find And In substantial older. believe Most are Think [ [indiscernible] well of and in such savings The for private for play of --

is high private second worth [indiscernible] market, The XX-XX net allocation into traditional from the allocation. moving market

proceeding for Fundamentally, I fueled need the powered are that years. to tailwinds the ecosystem, but power is are forward. scaled and what all tailwinds the take today; the is that path We're are starting going products And We sure surround as those and same you in The private a whether make accept starting which that opportunities of us where hybrid to the a is number IG, should need third into Each positively us we're offers the industry need finally, forward, do? largest for our that of the important that we by we the over not the that powered to the to embrace looking other the our toward same we as are the we retirement out firm exactly of to our the make to of far, active going services that from. that us in change, from that a so be well and leading firm? By products; we opportunity products that scale not position have power our as that likely do going are and XXXX the to origination, what origination. we we to are, us only investments double fact positioned, like just to do market. milestones surround rotations markets of footprint, us player most are advantage thing retirement to management

quarter. billion of you $XXX of need rapidly between which move that $XX origination origination, of know, We been $XXX roughly in and As billion billion a billion up, now. to years from at with fourth goal we of the came running X $XXX annual have somewhere

the of that, unit provides the only like things not fact replacement, we fixed to traditional out the that As investment unit our fast actually this so-called completely or income we of our can to worth of firm. edges. going than coverage, offer firms an high and gather pick is grow If we to alternatives if assets, our Not simply results replacement we are and business, an way private are fast necessary of fixed the to build as create a that excess a language scale just client per sale, the around income will net serve risk, investments to too to return not Building sold, speaking to second. Capital so risk. as only base clients alternative base ultimately excess scale and grade, we our capacity are formation. sales per in to we that force out origination, ingredients that grow in clients in but we speaks [indiscernible] first probably the need will seek used client do commoditize return they continue different

partnerships. and Finally, or career creation granted of now: new exist in bonds, as either not believe We going are they're and be to product XX into naive ETFs, Hybrid, they If going hybrid. of but take believe XX-year between and move not products, out individuals dominant heart are beginning services. dominate again, more did at now. and the equities. years the are products that I going look move that for should back midpoint debt to things my infancy. financial products Clients are mainstream move think securitized to [indiscernible] high-yield completely products is are going and do XX-year to these product be private Levered equity. their they the to that the into I I not loans, public X from go we high-net-worth of

in to I of think and not be ecosystem. here, and large while where while trying for outcomes group attractive requirements us, [ could [indiscernible] that will entire to at and our with And see sit introductions this about providing clients And [indiscernible] still partnerships rates for has of we ] risk-rewards our immature of investors. the work you [ product non-binary needs the industry this peer I The industry. before excited liquidity seen are return. meet not the set truthfully is more year new ] we products offer hard

We some are hindsight. of objectives on the about beginning provide our we X-year plan that original context we our are in to talk way will up in X-year and and plan. put well Martin that our meeting Scott confident

the of spending past. the XXXX the come trends like advantage less optimistic. -- differently not no new will It less ourselves be we'll next growth positioning will there look We forward, are [indiscernible] it to going take [indiscernible] but no but of I'm

provide turn to we're in Noah means Finally, of Scott. full with know And over October looking and of this to will us you Day, Martin a forward you long, the details. With year. I'll and it definition full Investor that,

we risk Thanks, investing proved resilient opportunistic thing Marc. Echoing paradigm asset backdrop, product Investment evolving achieved was with excess rate entered executing services We the to navigated hybrid unit and goals. returns strategies. an plan squarely delivering Both stayed financial ecosystem. our our commitment sentiment. performance of particularly forth, yields in XXXX we robust those and growth on One management a focused strong, often that constant, and Marc's our clients. though, was per as set uncertain across retirement our for changing business we and an and return certain suite

fund our IRR all remains life value performance portfolio XX% PE origination full In returned XX% funds generating strategies the direct gross XX% our portfolio, while our more of example, with Fund flagship to-date our year-end. a and through XX% and business, IX accord XXXX. net solid, in For appreciated over hybrid year, than credit very

an market these reflecting continued organic annual Importantly, year. third-party quality senior marketplace. heights, capital. across Athene's a prioritizing solutions for we've been Athene's and raised price attractive of to able returns $XX increasing this capital billion billion growth XXXX, in credit flagship the back inflows were record supported $XX share. and secured to breadth investment strong the investment we're matters" of or in third-party "purchase through totaled sidecar $XX tailwinds continued PE generate excluding the of investment platform in billion investment organic performance, XX% our the strong new We seeing $XXX philosophy. Off when growing our of demand product activity, while secular driven All inflows by together, reach XXXX, by Approximately [ during suite. inflows totaling the billion ] leading grade

had we of a $XX capital, expect look with management to infrastructure asset both positioned channels. with also lending, credit Athene, current capital expect wealth addition currently records we've approximately increase growth, raise our of from all ] with and the rate asset-backed clean Overall, and income, to $XXX with infrastructure of the we demand equity capital view investor excluding the an quarter and we annual fund. for continue. which opportunistic capital, secular record effect pivoted to from momentum flagship year, strong our interest We're this classes strategies this with XXXX, basis to first-time represent a backdrop billion entered us building sustainability. very client $XX has fundraising. focused well asset in a to our on areas traditional XXXX last credit our lingering organically, access and we're expected third-party of platform. As third-party including of and private we and inflation equity of transition [ continue of success finance, credit, offer insurers of across the Coupled would In to on we we've to business, in this comparable of to fundraising capture billion third-party year to upon momentum protection institutional inflows believe the important billion global avenues a raise formation on who entrusted PE. In scale a an We XX% impacts denominated equity namely with institutional institutional allocations, first as higher direct expect segment as focus that $XX and expect market lot billion

channel this out few distribution in alternative for we on the capital XXXX of closed addition These to raised the suite semi-liquid despite to not growing business Apollo which of a transformative success, million highlight over having in We quarter, delivering a particular. advisers. record. for year the growing of XXXX, subscriptions, perpetual $X expanding grow We approximately believe that Class base steadily as up and XX% fourth We place products, in private our in educating nontraded in now XXXX investment is $XXX from for off billion marketplace and that from agreements a than wealth. to for expect products assets. monthly equity benefits flagship important to X totaled new inflows We've fund expanding global net in the wirehouse to with market. more Turning from BDC with XX% XX-plus launching manage, $XXX as well with X a ADS distribution, in Debt recent strong an shares Solutions, on seen and live industry-leading the with global million follow independent January return XXXX; I inflows selling performance, platforms the approximate levels,

on global focused corporate credit more to our wealth proprietary access finance, and provide direct capabilities. we expanding fulsome we're from our asset origination believe forward, Looking offering diversified will to asset-backed private lending which investors

from Additionally, we're innovative billion core totaled we've pleased wealth AAA, global half with the year. in our equity investors though replacement Inflows weighted towards the growth the vehicle. $X.X in XXXX, second seen of

of differentiated year. full more and across ahead, key of AIC expand parts as our in infrastructure access broadly Looking access launched believe on We to positive, the to distributors on of November to far, so of additional demand focused company as is retail the different and U.S. platform track RIAs and to the well And course growing the structure. to been feedback in has spectrum the infra this expanding from reach investing additional over points recently distribution sectors private Initial launching assets. for Infrastructure capture capital lastly, Apollo space Europe we're offers the Company shelf market.

of XXXX. billion capital an investment We in active deployment year to Turning had $XXX approximately totaling activity.

from lack expect structured dry global investment the in including powder same debt this of year alone. fourth for billion our $XXX the It's With market Marc Looking our pertinent set. Relatedly, others. XX opportunity fourth year-end, of quarter originated that industry, billion alternatives, ecosystem totaled proprietary platforms. we're to informed in well XXXX, the quarter and $XX almost need shrinking in and as robust half public year the XXXX, worth that pipeline both of many last this among banking financing on about capitalize liquidity full volume a billion mentioning to said, forward, volume in we equipped origination of $XX at themes remain of

billion goal. Day. is around like Atlas by origination first platforms can reaching we couple and goal longer-term Over We essential platform years, MidCap platform through and scaling focused the achieve debt XX% that think mid-sized Investor target, like portfolio, [ and out scaling especially at this on the of of target, reach To ]. $XXX should we're target, volume our Alliant laid some platforms Wheels our debt of that encompass existing our that volume we next larger origination and

XXXX. XXXX, capital growth volume from our fees more origination Importantly, in debt solutions only business. debt XX% capital of related, than solutions helped XX% fuel In has were up in

In alpha one for business shift, power of quarter Air France, investment-grade repeat mix growing $XX [ demand. approximately X this over of full announced specifically, to the Concord high-grade fourth contributors of transactions showcasing which incumbency volume billion the large-scale with the generated the Our structured borrowers, financing ] is fee and Vonovia, year. important we

that, call our with Martin to to through over the go turn financials. So I'll

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

year target and In that business, as So a expense revenue retirement very FRE In expansion. management points XXXX results, successful for more delivered services, with by by we of of out growth year XXX vastly financial grew XX%, growth XX%. different through drove laid ago growth in was targets decelerating than achieved which a we despite execution asset basis the growth, on the fee of operating more than margin coupled SRE environment. we demonstrated XX% We our macro the Apollo. a our

alts the items, required XX% a to, notable of industry moving XX between and difference This points basis points as returns or note $XXX presentation you'll spread. actual is this being format. of this both where new release, $XXX expectation, from long-term XXX net Noah is this quarter earnings million separate million to on and As is the Page which or SRE change to of in move basis reflects presentation net mentioned, to quarter, is which spread, quarter a presentation XX excluding the the

this we XX% to for versus would basis basis Importantly, net excluding in XX portfolio expecting for points our our XXXX higher net XXX XXXX. returns. On the continue higher spread was combined, the an be the long-term points still spread, additional expectations alternatives year basis manage Considering our long-term basis, XX same points. and, items, returns, notable

higher by increase by was floating-rate growth, and favorable rates, Assisted this a driven ] organic income. higher [ backdrop record deployment

With results $X.X exceed the earnings total doubling years. expect stated billion earnings Executing goal we business, milestone these on over strong across to for we XXXX. the our And our that few by to growth next compound of next our trajectory expect XXXX plan the to a target. is mid-teens-plus achieving important

puts of with look, better AAA. performance get X.X% quarter. to X earnings I'd the On portfolio alternatives returned our fees: fees the view earned declined our into discuss the annualized by of quarter that will platforms fourth in quarter-over-quarter offset investments Fund and form of management strong below takes I quarter, Before third long-term run modestly catch-up a partially few a outside Management results $XX in held like approximately fourth to by XX%, help the fees our origination rate in forward power. Athene's million other expectation strategic due

redomicile large related onetime to from tax as stock benefited higher rate benefits as legislation new ] deductions December. tax Athene's to a Bermuda in related compensation operating corporate share [ employee to Our price due and in well

XX% items funds point which of that quarter remain cost approximately was costs performance as third of points to the basis lastly, fee, items a fixed X costs to change QX. Athene's term, these then of the of forward, we QX the of quarter-over-quarter from variability. benefit appropriate in the in year long comparison tax more a subject returns Going rate adjusted notable funds, cost Combining included effective to quarterly including in XX to And the change these over basis quarter. new a out our similar for income previously in we full X the included amounted provides which adjustments items. also expect

to turning FRE outlook. So our

as the Marc XX% to growth, through walk communicated. blocks. XX% building expect We I'll key

in fund management our and million cyclical $XX increasing XXXX to Excluding fees revenue flagship we fees by to we raise earned X, growth of catch-up PE in fee low- expect driven fees. primarily Fund mid-teens performance fee-related related XXXX

earning We billion to by yet as management Scott highlighted billion capital further deployment, organic of supported the total growth of expect management fee as fee-eligible $XXX fees. of inflows AUM well $XX solid supported be levels by not

of For The capital strong already generation in exceeded XX% revenue year and has levels. expect target. years to we XXXX revenue this X-year currently fee similar has another from X approximately solutions, our business grown

North estimate approximately double-digit level. we year people manager, in new growth our this fee-related hires with low expenses Mumbai. We a will approximately expenses, and For the in moderate other rate to total at asset head XXX added XXXX, our to the and located in half America total Europe net count the half in

focus continued head our in business, a team. on growing our year count India with targeted growth expect very this We

expect on should margin growth to of path growth in basis FRE points in expense pace a basis the commensurate our XX growth. additional XX%-plus this revenue with to pace our non-comp XXXX. in points declines, solid Combining a favorable experience XXX count the this improvement expense by As slowdown outlook year, an head we derive we to approximately a of picture,

retirement to services. Moving

this We expect to in based low underlying criteria. generate double-digit growth year on SRE few a

In to buydowns on growth alternatives both XXXX an for Athene's and related as Venerable exclusion ADIP million we the the notables return basis, line third-party XXXX. and points, end return communicated; of XXX net in $XX forward the excess and on recapture, adjusting spread, earned $XX built items experience, of capital earnings based assumes the in XX% historical on curve previously excluding upon rate the we XX% of portfolio assets approximate the [ terms billion resources, the and outlook any is of which and assuming X approximately ] an implies by sidecar including of funded inflows capital; cuts any existing of with basis between rate organic notable XXX current [indiscernible], with

serve As has Holding [ it a it range including portfolio while positioning and continue securities of duration offensive and to has enabling matching, and purposes, surrenders during floating-rate a any rates ]. the to allocation sensitivity. relates intentional against had floaters elevated and remaining interest with long-standing within strategic asset assisting matched. to stress of periods cushioning asset-liability Athene will market

the first to at the Fed $XX billion With amount to easing further net the the of we a of floating-rate expect year-end; prospect by we have it end the cycle of decline to horizon, on $XX billion assets and quarter. reduced

to principal investing Turning briefly.

the PII and We're of $X stream continued strategic to be our expect multiyear capabilities We share on our unchanged. rather growth organic with clear average our below priorities for capital remain allocation, both existing making XXXX, our focused investing monetizations public drive dependencies earnings investments. outcomes. On per to target than markets and on in in private

We also reduce our and end shares million to by to employee regular-way continue to to immunizing begin share of expect XXXX. count the XXX comp steps taking grants stock

dividend X.X% the with We implying increase XXX annual have announced dividend above also in slightly of first S&P yield X.X%, an beginning quarter of of of $X.XX the the a XXXX, the share, dividend X.X%. by to average per yield

for for totaled turn the $X.X XXX the with billion year, the back index inclusion. And retaining our and call earnings quarter to GAAP the our eligibility full billion operator S&P Q&A. Finally, for for I'll $X.X that,

of is [Operator from Instructions] coming question Katz The first Bill TD today Cowen.

management XXX(k) is bit in the that sort the underneath of [indiscernible] your there. if opening market. you I then up really big of can good be sort expand could competitive a And through on that, as of in the that seeing you comments views position? the of about of of was you talk of wondering an developing One So wealth the that little type landscape maybe could channel think order a thought everyone fact your you how sort here. sort you're picked I'm just picture as views thing there lot Marc, new sort

absolutely period are see correct, the private stabilization, substantial you a away do locked So of as opening all risk legal the not funds. over we're of set litigation -- longer XXX(k) The in time, I long high Bill. in seeing carry, but a limited XXX(k) a I high as It's of fee, is products particularly a suite think no limited an market. by is mentality result by restriction. market

baby fiduciary simply and public XXX(k) diversification. managers first outcomes the get to better as private into watching to heretofore solutions begin their steps better in You're mix-in

have we're lifetime believe guaranteed a plus we're income, going seeing me, target don't guaranteed year but memory into purpose. migration. is the a where going fiduciary The of my are I continued on in seeing of products. date we're kind this the annuities and retirement front same to number billion XXX(k) or and other funds see focus thing in is I $X income for

serve most pivot to Much beginning we're the at of negative, very if it a And regulation, only moving but in your product or ] has and the what's in which one for high It whether business a beginning infrastructure. this multiproduct of benefited wealth variety. serve worth the the just a RIA is market, been for which has I you feel small firmly positive, a market, of again [ think part future people we're this, does global industry, do field, at committed it's has exercise. been been the is product, wealth: to to to a firms. of I'll like To our I a the you happened the are very not is the in opening sense multiproduct of channel, XXX net see make This large not channels, wealth. serve

to so this investment. it's firms have market that made in market X think And don't handful I than XX. a It's the have and growing. there play and This more I is think not of who are a right

firms the each of the way. We of [ coming in are kind at their own and this infancy it, is at of ]

good our way. being I you think there I'll that's just give bad done. and are

binary it. in ourselves quickly and we deploy. good thinking having want in outcome are as Ultimately, the extreme position as but think in innovator this returns, the made how we've not to than producing as going this as rather focused taking and doing it. volatility, money quickly products, market this largest We can as in approach is not can marketplace, good on long we're hard to we -- we this we're market progress whether from We about I marketplace offer

We optimistic. remain to I work have but do, a of lot very

question next of from Evercore. The coming is Schorr Glenn

lately. one XX% of versus the your time in small could big if I if differential one into return is could. One experiencing what dive been alternatives over one, actually small you've you The one,

good I'm the everything bigger... And short I falling Principal performance about then platforms. the When portfolio. board really on good, talk within European your You Finance, ex is so Athene performance curious the origination look across at what's the

this think in I the markets basically which -- difference was is hope see circa we let of me we so certain of the the -- on and it: focused the kind will to get not of all but year, the Athene drag all violation way are hit and stakes. represents -- XX% that the given you platforms chance and generally the a not performance good tech the things like your policy, public ask the quickly. And -- -- then between investments, we but of the leverage and operator's it to I AI easiest on The that XX% insurance larger and quite direction not -- you for get question, beta AAA, I'll that. that that

So Athene its and There's other had difference, overall investment (sic) of in [ Glenn appreciation We the in versus differences Venerable. holds, outside Challenger, investment Catalina, portfolio, this its in stakes those ]. in really the that's investment of no Bill its AAA, note. less year

and getting Atlas know curious bought And billion. billion. said $XXX run you and larger origination $XX a were to but you know I cool. All part my $XXX to $XXX $XXX right, violation is scale... of billion to at extended million you kind rate remember B I bridge $XXX billion, how that billion then you I

ago, origination. The in to market, place want we to to to to want if our tick-up that also "XXXX." target. get institutional -- quarter $XX out Origination fixed need volumes. of and high-net-worth be, more. call to income and little offer if and step institutions us and their years, target in allocation, them grade that want encouraging. we rate the to serve essentially continued play fixed originate was would of a of in and capital very from back replacement run if to to we next we billion we management we investors really income that so I active they're current that I the pivot X-year we set rate the X billion we our hybrid. believe the be into where If power fundamentally this about on thinking -- investors targets pivot run which start $XXX of origination carry the of fourth are to over we in I capital years when part not was investment believe the limited private we going to out year allowing -- believe I that today, respect is hybrid. high-quality the role X business want plans to When go way need for equity for to achieving of more of And we grow very would years it -- much And We raising we to our business, X a So well by important is we're amount this. going X-year lifeblood to of raised. business. is our originate are a

and of the offers firm alternatives good are our risk. And firms long this for original which to (sic) sometimes on we the firm but is past our I very it's for the firm, that truly to do, is $XXX excess billion in sometimes capacity ramping is Investor we that a realistic which unit as this in close moving of as but one difficult, Glenn run, focused of X-year excess [ $XXX going every ]. It and a that believe our [indiscernible] Bill easy at job investments target come return, October and to generate as billion, per to out. produce and of Day, to are year, goal all the And More lifeblood business. only it's two return sustain growth,

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

So Marc, just on build that. to

lifeblood time for now, which You about the origination makes all business sense. of talked the consistently fairly being some quite

Is guess of As it grow of more more Is will what it coverage? further boots growth within So about you guys and to accelerate for your I happen scale Is come accelerate AAA? I'm of further. to again platforms? origination to of that kind capital, the product? Is some just or in more your control to to the acquisition origination what's this look on needs more trying think Is business sort it get ground? through more it really numbers? which capabilities, it those you to

Scott after with to a traditionally evaluating good We for more of management good in very willing also to all, or frankly, We institutions, they we business investment-grade we long built now to we it's it a product nothing. valid that on this happening same doesn't is should quite of and some is unique make both how because, that's unless across power discover alpha agent move the you highlighted, as to the rating. lot is extraordinary XX% Athene. third-party asset we And sense to so us; insurers a an for it their the call are world continue the the boots and -- are diversified, to ground improve in began and one, that bond and and business; are as their very public-only at be solutions. fully toward going to want of and that conversation performance what building innovators, then in And begin consulting principal. of we everything a with private, believe decided power This out so reasons and been, high-grade XXX% happen. as speed high-grade I portfolio, a So and

yes, people growing This the about are from, will us, where XX we comes platforms. for of scale. terms a of more the origination is with In at volume platforms. Only them more but coverage, be there origination couple have

we although don't XXth, I is goal. the [ but are that -- think may not that need a and ], We result

business. that to focus We U.S., billion grow. about double business, business. double lots They simply or their the Atlas have [ is mean, are more capacity even products. platform still delivering. ], MidCap, a it their origination opportunity. the $XX Alliant now double capacity not has has too is than It's their of and and out adding $XX short room which to MidCap I business; billion, building way to European just execution

role and come around have more globe to actually have the in more regulatory I doing beneficiary debt a and than prefer where banking that -- the the markets of means mean we -- they of that it vital shrink. environment. from very the marketplace to going we're investor in growth, growth investment is capital occur GDP execute, doesn't play that It follows have choice supportive system of does the to decided a We much typically marketplace. that of the That which believe what from credit scale that will Recall banking in investment regulators that the or system. we simply are the not it

small are, Some of bonds participant. and even incur massively interested large [ are that bonds our high-yield investment-grade we're pure-beta will that not a at just in, that products, we about in market all where talking size, ] we a but

] [ helpful: business So math, I do Alex, billion have following We the credit private it's $XXX today. and a

Somewhere that beta. billion is between of $XXX and $XXX billion

billion of beta that I $XXX doing our chances for next because comes X years credit business, to like double our [ we free. ]. the us have the For over to double

infra to months We've an put come really I'd platforms from have system. momentum of businesses. origination. provide our early originations business all seeing various origination, variety just enormous the only we -- and the hybrid fully the the debt tapping Apollo that all origination so lot The there to over our only units businesses, equity driving comes of of -- thing the effect, linking our in different other innings of our to coming energy really is sources so a we're time start that last from we're that be capabilities XX% businesses, sourcing more XX, across add the not businesses, XX able the And from the relationships drive and capability, our into from all the from around our to

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

retirement on guiding at for services XXXX. $XX growth XQ billion the rating billion My in run to but question guide $XX is

available XQ restriction rate? some disconnect Or from capital? that the does conservative could that higher and run from growth being just to So actually continue track are you

buying you of to really want. we degraded that's volume. look I'm that to And how are business, a block week something secondary encourage team on York New all hear more from hearing you team We buy little if you're income in And going When I look into not a people sitting I I'm caution conservative generating you you'll surrender back us. Belardi. sure call, out not sure like the fixed history, the can ], good you're want can the I'm Jim of I'm from view. business. from charge generate the or not think against just that's point not than to in sitting I in that. of In but potential is volume. the volume sure this invest Hatton is business. I [ a Beach about risk that X, a

not I up the can we is I'm victory year, to this from ultimately [indiscernible] next a So want. lap to may and by all [indiscernible]. year We a X-year not growth that's year lap also the now. feel cliff like do great do and the growing, can going growing but fall following I That's victory going doing And off. years is but that X-year setting a by

business, ] sizable then guidance not $XX almost are I ended learning and billion built with been the living were into of [ doing that grown while And and seem. $XX are They business we listening. would think, We victory an this because of do. the maximizer. say it year the a of do We portfolio north We a essentially team, hope actually liquidity had also XXXX. the SRE. team, ended not business we or they gets while unbelievable headlines we $XX XX%. not We Grant I we just never business they're $XX XX high-grading have. Jim of -- high-graded are which we years did is rather And business. cash. like you profit we year this for what that focused I on and We be portfolio, current-period many Kvalheim on this already billion of -- treasury the Belardi I what And We billion the and should laps. had really in we've are billion do.

now from should will is of a big the Apollo, spread. run We That Apollo, have rate off billion-plus deploy and to in into on rates. we credit the want on a what continue locks high to would matched $XX the origination, which normally private of investment-grade at to what pressure chunk expect is opportunity, yield-y people do, fall do cushion that basis actually

everything rates -- but own less. is thing we that lose tend in to in rates down. a In that rates happens other we up, a up, down, recall are of The own to full is worth gain flexibility rates a get when up, we it, tend In benefit the that, position. We rates everything portfolio. we go that

We have massive flexibility in the portfolio.

into pressure We have The is on investment private Belardi not investment-grade is to The the of ability Grant. us. rotate originated pressure out grade. and on Jim and corporates

everything, business comes originate us our XX% don't We back want originate of we have to of really They want to originate. more need. they their scale business recall third-party origination. XXX% what scale to of so We for to that and what need And more. they

Brown of is question from next Michael The KBW. coming

around or in to no share any years? expect X X toys. the buybacks next we mantra guide this some How be over maybe the put the So utilized new how specifically then allocation way can to the XXXX, capital could XXXX, for year? progress rails And

-- I'll the I comments. this addressed my Martin. in in it's some -- Michael, of so

Origination want mentioned, see are to the to don't earnings. AAA, compounding in on we last scope of of think October. a has ], I are the that are earnings growing the some numerous. including use It terms [ We really Athene, all Day which, the ADIP to a with outlined that -- of benefit beneficial; -- And for also grows is inorganically. we of and allocation, priorities grow Athene. of us, business the at growing right, impact from I so as in lot we leverage the invest And

least [ [ real really. dependent modest to sure we're a stock ] so targeted. is very that that We that's ] share built ability the and reduce into be employee And the basis sort should immunize immunizing delta. issuance, And make the on to at and so stock of and realizations That's on the plans. then then count want

the And our really particularly is that pick what realizations on receptivity exits, to -- in private flexibility so depends that. for more And as markets markets have up, there we'll the do business. in what equity

on it dollar a returns buying both how X-year into in so of you're balance than terms of but it. try ended a choices, back near-term but sort frame, plan, we we that's think, realizations But it be to ended. I of time as more So investing more would whether think that, need front leaning marginal that's stock so how we they're together. you back Athene at -- sort of in it, whether attractive, you're -- or way connect of all are Whichever the capital look the good both return to

question next Hawken coming of from The Brennan UBS. is

that something out? just fee? that And impact performance I'd collecting regular you one basis, I'd a a funds square items us you flagged the of the impact please Martin, why more? is fees be that one try and performance guys in you of given help on Is around Can the it bit understand Slide piece new cost be your quarter are fourth maybe adjusting that like to not think of maybe that's adjustments the should of comments some XX. little and the notable we the would the to

Martin is and specifics. So address then conceptual I'm Marc. this the going to a give will

years. be you that come think come not you that from everyone That it lot more of book, and if and diversification of makes in you suffices. in decided investment -- based in portfolio of is vast classifications. book. If for longer majority [ portfolio? as a now net specific this in change it Athene quarter, took net which who IG the the opposed look is of are our managing include sense industry over we and most to saw bonus place at -- -- corporate ] spread on that portfolios and charge for this them, exactly is the history but Athene, bond thing net What this the X the calling why as of basis should X quarter the say, we're XXX% the investors, no thinks people Ultimately where have IG specific losses that of to impairments, was They've the was safe. in the X and was done so was you the is just is from XX look taken, for has reason And year, over quarters. positive it it the history belief that you on rating a know waived of a losses out we're Then like taken. it if but corporate

I think my...

Sorry...

for fixed-income the -- of would but The line incentivize X think an full I the of dollar back as So ] quarter-over-quarter basis. [ funds, adjust from income right? of if all quarter, a top equivalent performance-dependent is look taken it top the you pretty other right of was the on charge it you simple. And each appropriate risk-adjusted over cost it's connect X and amount the originations tool a in also to on and notables taken in after-credit-loss at change bps they're sort math And a course of of originations, that basis. year. to QX, on and

from is next The coming Budish Barclays. question of Ben

an you bit more if generally about wondering a on specifically maybe little update speak give then was ADIP I can sidecars. and

see last what forward, expect should I we so and on year one you strategic of maybe that little think, of a identified how color You kind it, more opportunity your priorities year. evolve as this going to

Sure.

fundraising, So ADIP [ quite going well. ] II

necessary wrap for this the years. to to so Athene X next $X in it probably summer expect We sidecar billion up $X range, providing the capital billion the

So investors, but education This it, necessarily feeling is product. just a is really exciting once it's pretty understand not big to that. of campaign, product what start intuitive good an we're right? a about to folks Part doing

into with Yes. evaluate Athene both this actually Athene that The and market; The of is successful and -- in growth -- from transactions business people you sidecars step in that, give give the I business. are and Apollo would entering and pay rata into pro as -- raising very this this we fees for us from north done every kinds capital the dollar and color reason to very I XX% just very to The the seen time; will growth, of stick time capital intensive. the and big long this retirement cash-on-cash a over investors, of business transactions to discover but done a is mantra away period of while step would business. book good quickly People It have well business growth. returns. is for The this costs services cash-on-cash poorly of of great is works are so $X.XX away roughly reason why business, over to we're returns ability a this not to that capital. step value the doing buy of produce of they, This high trusted economics. is fundamentally with back us period privilege

are If produce high firms and sidecars; difference that strategic And be stewards with be and make failure. of their the that return choices, success trusted we fund how of the capital -- math is get a do good will it If funded unit they they offers fee -- for because that not risk not you $X.XX will parties much excess do do all you aligned to and fundamentally between pay us of can how X/X by who will of Roughly privilege us. and return good $X.XX not capital. with third you yourself and per of big be you as for the need. rates they funding know

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

the the market income. the I for market and I was on growth the more demographics next ask you over retail could to broadly additional years. wanted from And hoping growth expect annuities with ]? speak to need to aging that set unlock the sort what you annuities you to and X perhaps overall customer able product be to experience might customer [ XX expand set of to some make the enhancements and

of has that annuities, annuity not and in a sales the the to not XXXX long the for of it and of time, leading the evolved in less. largest-ever unused all and a to in product a us, set out that product simplified position. the entered That and you capital has simplified of And to industry if much. context good period changes along more prefer and [indiscernible] financial the of turns we added the a service all product we ago. product, it administration availability, to consumers down but look to the asset of and context market rate the the substantial to is from over our year entrant decade with new that So market move the We made allowed stripped substantial. market [indiscernible] very the We we're many

lifetime I like think traditional will index straightforward actually of much simpler That's [ performance, risk. this rate, in simplification lifetime risk. and longevity and upside terms get to move one know, not annuity and my both promise a taking to has opinion, product, we in grail taking indices. holy risk. downside. in significant a investment you investment floor; you the ] guaranteed as Currently a percentage a mix product of you're get to a The income, firms of of and continue is investors market's you set changes both of modest income. the that risk subject see a When is around guaranteed business, custom you And because

fact, halve is payable that is lifetime fiduciary a in but guaranteed commission on allow risk hedging through Right the not to but could, is of sale, neutralized one hedge have in portfolio, of We that not to borne costs any longevity there for in not would by -- that who the side take hedge of commercial income our the to to and longevity distribution market substantial of elected, now product the other that costs marketplace, offer out a sale, a that the work of a in participants risk. -- is one are longevity a longevity like out bet risk with date, opportunity channel commission. amounts the

will number industry you trial that of think this a see in firms our I year.

attractive we potentially risk on risk an and think, will very rather us a and industry to business. successful market market as leaves but that provides participant if that, are focused a being industry think than open the we longevity different investment we I which long-term in take, an is as in a capital that very is want risk, doing I large

linked a of they we industry. is income in the evaluate going XX% drop in successful very mostly in U.S. context. in but There's primarily in focused have toward Australia, I think also markets, retirement back of about little superannuation. the problem a to This thinking regulatory this European a They've terms spent thinking in decumulation. change. about time other The of the is availability accumulation of on this market believe, been and time guaranteed is how step world most Europe, lot

in guaranteed this. local take the that's code And talking and elsewhere another area. for This is days, interested, a on you're out area. is early the local in is ability really very its finally, world, paper done to If and Kong. income, potential regulation in in the further one significant growth U.S. area. adjust lifetime the about what is which the cracking there's we've and treasury is in Growth the Hong a growth This so custom indices is indices flavor

is I reached Gunn question Noah back questions. next Wells Fargo actually, -- allotted O'Shea looks time coming -- Finian have Securities The Mr. comments. to for I'll from like it It for apologies. turn of we closing our

Great. interest this everyone, morning. Thanks to for this your morning, thanks your time and Donna. And for help

or forward anything look to discussed to or If about And to reach feel free speaking questions call clarifications our any out please today's we on you next us. results, again you have with quarter.

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

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