Apollo Global Management (APO) 1 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to Apollo Global Management's Second Quarter 2024 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 the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's website. would on solicitation constitutes purchase Noah of in Apollo nothing sell offer and Gunn, that turn any a to Investor or an fund. I Global note Head this over Relations. an call to interest the of Also call like to now offer to

morning, with earnings everyone, across all discuss the and we're seeing Thanks, again, call. on Relations appreciate and to operator, the and our the website. portion you we firm. we Earlier financial supplement of this the our release welcome opportunity published to speak Investor momentum our

We results, per reported income, costs and FRE share, of quarterly net second $X.XX Combined or reported $X.XX of HoldCo of financing per income share. SRE share. solid investing million $XXX quarter which included adjusted $X principal we an or taxes, billion $X.XX financial $XXX or million per record with

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

Noah. Good morning Those for summer. Happy certainly you, New Thank all. York about. us. what in joining know you I'm to talking Thank

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the Asset generally quarterly result of of it shift a management a business the not entirety from seeing seeing we're peak, spike happening What in marketplace, is and our franchise. benefiting our or is is fundamental the in tailwinds. across we're

and in what big the drivers credit. back the certainly, think step you If are, about big driver

really looking places Think over of the three are economy our interesting that next the needed in decade. trends. We capital at is

of and lot We centers spend going for are on to infrastructure AI. an next money data of awful generation

investment-grade money long-dated. infrastructure. All transactions kinds to expect business. are driving kinds the equal suited and not going in are are exactly we business are many things our energy for lot spend well the are These institutions that structured, our amount and short. we things I'll them of are going of funded what spend Many three drive of of complex. of them who an that are the are a money those are call transition, on are market of of These We to to for normal

business, a including for from The $XX Recall originations. have for million $XX at certainly way we Intel originated driver billion alone. in quarter, the our in originations. target is we this billion credit of look that the $XXX by year We

for is unhappy team up. the We are this XXXX. to we quickly because And number target hear revise to going know approaching I'm that the $XXX they set billion the

in business are. we've a expect expect deployed I regulatory blip. how against drive decade or to Year-to-date, over $XX of all the of Just to to alone. the trends X- X-quarter be the not our change, know borrowing a strong give happening in million backdrop next-generation income. and this this government backdrop you are we the sense next against other that the infrastructure trends I for fixed

$XXX Capital fees Solutions. also Origination origination the of for are Fee than us a franchise. Solutions and revenues more byproduct Capital revenue million. totaled successful drives

pace a on are year. for record We

investment-grade and is build by because to advances as and as pipeline and with is we ever for out originated Asia in business, by both continue the strong Our it need will global. including spread industry major geography, been, Australia assets high-quality the has in

at turn earnings me to basically years over and XX XXth last We've Let including Retirement year. year. in its grown Athene Services. our now XX% Services Retirement is XX%, now

In Just to we this strategic as has franchise. a engine $X business, almost efficient raised ADIP. ADIP like the Management, and is good run support truly attract investors capital that in through ability more performance Athene as Athene its to Asset scale closed Athene's billion, is call case, with which rewarded ADIP is capital. now ultimately sidecar, and much II twice helps ADIP its I. the

the far services retirement sidecar As is the this industry. we largest as know, third-party in capital

growth COVID. volumes, was of expenses, capital. put the operating For the every will Athene quarter. the for opportunities the metric: during underwritten The quarter for business the the essentially of profitability That us will The hedging which us the roll-off and of roll-off roll-off during me, beginning QX. for -- the was cost quarter. Also rates by on interest in returns, we the credit quality, for to peak direction disagreement surrenders, of quarter this the the business, impacted next and quarter new growth caused quarter, quarter, of occur hedging, was over exceptionally impacted quarter, the business additional of provided profitable by hit excuse which did do also same business towards us

the and double-digit you. mid-single-digits know is the $XX expect detail to of for Athene we the billion are accounting to SRE grow business dissect in interest quarters, of QX, to year, growth growth trend. The many achieve further which that the of business, be on X our and return We will of we to will for trend this estimation, result being track next year. and year. I on Martin by we'll last back pieces the organic will for inflows for

delivered be in When I tailwinds. our by and step promise in that customers is a back, fortunate are to driven core and market an to simply to industry long-term we have on

essentially four have of us. front in We tailwinds

replacement. That I've already fixed to most capital, voracious our be fixed franchise, income income this first detailed, for which of believe we which grade. is need drive will investment The

fact a is retirement second The life. of

all are older. We getting

heretofore exists good XX most but have we in the incredibly over pool are serve have the or products. is by XXX(k), of vast insurance in to entire for off not The generation for returns, been whether have they to modernized sector they at what providers. retirees, products limits has next we the for traditional investors, essentially, just far of Athene, alternative one, are We existing so years customers. which assets done now first opportunity the But producing

over of small XX-year out institutional The period marketplace. of a third, has industry built our bucket entire the been a

need risky. bonds. What public fundamental both What wrong? is institutional difference grow portfolio of at We safe, safe thinking basis net on hedge who entire worth private private capital constructed which the if I XX large already time. And over private investors a market on and allocation was this. Investor Private investment public have to will have was are rethought. And and by and finally, represented products, venture Day, fundamentally spend three premise believe a watching between ago. bucket both watching that marketplace we be equity, private is grade. private. in that are daily is probably public the high are clients safe individual The I funds. making if an our public fixed notion our at led diversified We we family stocks we grade income time that portfolio of of of and guess and grew that and is offices will lots to rethink that trade-offs will be was and the up and true don't risky happening risky size and public investment and years and between individuals the This to institutional

signposts, It investors rating is not by markets. gatekeepers quality It discern help that public liquidity in because agencies, first also private markets. and public in are is is fixed between there real call happening helpful there who income or fixed income helped

in which replacement healthy will is income So over provide the next the immense. fixed turbocharge business. is that years an of front us opportunity a of otherwise not liquidity The trade-off to few

as business equity make no the well. mistake, is But replacement coming for

up end Day We a to will equity have seeing equity as well. other be Scott. at you forward of it Investor parts active can will decides over that, with look of and summer. And to public we We that investors private to with And certainly our portion been I it has an turn will that allocation. access institutional

each deployment, as highlight Thanks. formation that of were and in and quarter Marc performance business is building. And core second momentum capital touched investment on, drivers, the our strong Apollo across

current targets franchise by plan our in and our ahead discussed, strategic of our power. which XXXX capital three solutions, and we've wealth pillars, As origination, our growth growth are underpinned including is tracking earnings all fueling global and X-year of

highlighting investing driving deployment by force investing the second Record origination in a in record across strategies. scale solutions and first was was gross of with by origination: of corporate total the traditional, to activity. Combined billion for volume debt ecosystem. quarter of the activity $XX second broad-based origination, and our levels origination The surged complemented half record hybrid strong deployment in quarter, was to equity increasing amount debt of forms platforms driven the XXXX, all year the three strength first the in originated On the of all front, strong of debt close quarter. high-grade this capital the

businesses. sight deployment pipelines expect of we our to the and both persist activity given in to robust line We overall transaction equity have in debt-focused momentum

both. the structural that Athene long-duration second risk approach Intel investment lower higher we of demand customized, of serve within we're the scale by the prime activity, a and example financing We accessing coupled earlier elsewhere, return to capital maximize clients of combine changes debt Marc flexible seeing explained positioned equity believe across of backdrop this result interest a or lot our how markets, these we're is capital capital, a rate uniquely a a way. with solutions structure. Within powerful in that As in cost of aims and traditional to advantages differentiated to need combination utilize quarter our transaction, capital long-dated meet for

to to the expect grow clean the these type dollar for and opportunity energy transactions AI the of multitrillion here, from transition Importantly, by infrastructure markets supported we finance build-out.

This in our complexity. rate quarter capabilities spread that the of to we're persisting, to since deals the creatively saw PE investment COVID. theme observing is the structure second believe have is a find backdrop activity quarter Another current equity hampering At and positioned ability buyers shine. We onset moment in most. of unlike we're given our conditions to for embrace and a the the level, these opportunity well amid capitalize private bid-ask that sellers number where is others, lowest the the between value, industry

under enterprise of value just Xx, last our in an couple As representing from five here. deal $XX creation total looks billion pipeline approximately and average months, of Marc we've multiple in strong at highlighted, the announced transactions

sourcing being outcomes. that able Ultimately, find investments function all our good a And doing across of is interesting of Returns business. activity strong. deliver indeed, yield-focused across our we're the and strategies to remain and origination

example, businesses, have Plus the And the returns past robust had PE Value Hybrid performance Accord second defensible appreciated very the enjoying earlier, flagship according and has are very year. delivered a and at our Accord quarter portfolios valuations. strong with also over standout origination year, and structured XX%. XX as portfolio respectively, of marked portfolios X% to credit over totaling alluded over last are For Marc and our hybrid appreciating to the XX%, last XX% months. another in And XX% the direct quarter and

inflows leverage capital on and Strong strong investment quarter Inflows track to $XX billion quarter second robust, totaled year. any respectively. total has formation. second to or results third-party close Management in the billion our $XX Asset in achieve the momentum and $XX our we're are confidence billion $XX to excluding $XX Retirement and drive fundraising particularly year-to-date, helping gives businesses, Within half that, billion in us of across Services been first This the transfers, target year. this fundraising, segment billion the totaling that bringing

activity raised across from fundraising was inflows. capital hybrid benefited of as amount record a in and commitments. range as quarter Second well sizable Fundraising some third-party a strong included diverse yields products of institutional also

and more of Some asset-backed opportunistic by large-cap equity. strategy finance, significant the ADIP, infrastructure drivers included credit multicredit, direct lending

and a strategic as sizable our to Capital, we position Apollo us Mizuho This strategy building recently strong Additionally, transition capital from fundraise investments Transition strategy. initial next credit Bank portfolio a a we continue enables and secured investment year. for Clean seed flagship broader climate following XXXX in the

Apollo the Importantly, well transition support which Mizuho's and the commitment their broader limited made, partner speaks to ever of as advocacy is relationship. as energy largest they've

Global to Turning Wealth.

partners credit billion remained record traction as past to the $X first in last in Our momentum quarter, the manage. momentum fund's XX% continue raised contributor stellar positioning Solutions, non-traded these of to is global net We've first players significant continued loans. growth as exceed to across entirely year new our most of million comprised Apollo strong almost including remains top inflows Performance a Debt share solidify over we we as over portfolio $X our the strong with north returning position us year, in high more of market. returns, the class, from BDC as distribution with quarter, reflecting capital the of the lien second approvals the channels. the Monthly year. The of the averaged $XXX one fundraising second than well billion the raised in half

Europe, on extending focused on product basis strategy access into our geographic a LatAm Luxembourg-based to and Asia broadening platform. via by further Additionally, we're the

Apollo our the significant channel, built global franchise we launched expect the in about to competitive believe or a asset-backed wealth think and company as ADS. quite evolution we asset-backed Global we're to the introducing as excited strong as to market, offering of we've coming finance very we As private expand just quarters. increase been ABC in about the distribution strategy credit a Wealth houses has credit Initial in flows with wire our maturity as of an we complement what asset-backed ABC scale, diversity distributors over recognize the advantage. We've interest and

to we number in best partnerships. conversations about think different how client broadly, More engaged a of also segments, been access as around we've

ventures will ranging on and joint center parts provider. can robust the role Our take from in to forms, set. what's We're multiple at an these conversations incredibly of opportunity

cover financial detail. more that, our With turn let to Martin over in it to me results

everyone. and good Scott, morning, Thanks,

execute performance, the heard, earnings strategy, generating are we long-term to continue growth. our powering asset investment setting origination, and as building our you've attractive formation So us capital blocks as on up business,

stability ADS, our have annualized $XXX upward in are Driven growth now high-grade broader year-over-year, comments Let increased X streams. grew across time included X% first performance more Capital review activity. years business, across the capital results, and million million fees, business, and rating a me outlook versus heard, in advance of strong origination XX% on reflecting Investor of at our are financial ecosystem fees, growth revenue corporate our some close activity. by growth by the quarter-over-quarter for in spread-based a formation fee-related NAV-based fee-related credit and as XX% performance of basis. with strong comprehensive October a solid with including a driven an X. Starting Day our driven trajectory. degree revenues and exceeded FRE these continued record all three QX at quarter you their out And run our on fees in than on quarter X%, $XXX Management Solutions by solutions which respectively, of fees high debt next that

of $XX be we've healthy strategies on eligible approximately at and strategies, fees AUM, fee of Athene, a generate half sitting invested. equity billion management when activity XX% the record yield currently growth We're year, and deployment by hybrid capital of the aided organic should already second is inflows fundraising capital in and the of the to is Looking which which raised. fee management

Given results full-year expected, first be expect referenced. quarters healthy fee that fees Capital the in originally the the pipeline we inclusive of robust in in supported year, very of for half to Solutions third stronger than Marc fourth by the the and normalized revenue expectations

fee-related some The well compensation in Turning our to out fee-related teams and compensation. FRE of continued to pull-through increase strong building investments in investing as sequential resulted capital formation expenses. credit from as revenues

a to that we expenses item onetime on. commented merger We previously related a also $XX in recognized fund noncomp million

Importantly, total intact rate in we're quarter by relative on to a in on expense. SRE, inflows onetime so to inclusive track to expenses underpinning low fully moving continued and strong very robust, the industry. second billion $XX and the grow to $XX billion Athene's remain business be double-digit the of fee-related year-to-date. The Retirement fundamentals Services. totaling XXXX, Organic

comparably that through terms of and our volumes new with so corporate invest spread ROE. excess $XX annuity We we're half secular structure benchmarks. market are approximately market We've basis the in grade rated four well organic tailwinds combination origination targeted gives benefiting business from spread value and directly to driven attractive channels as leading points inflow capabilities, investments Through U.S. for remained driving public credit deployment growth on retirement target billion confidence deliver income than solutions. as full differentiated able returns, investment our in spread and of $XX year, an and for competitive more to our first demand our share reaching with into of The liquidity. by us strong has of this organic generate attractive business billion continued originated excess both line results positioning in above in new the far year. Profitability continued in XXX

XX% results, have was spread are portfolio, In spread basis, higher. adjusting the that alternatives dynamics basis comparable lower QX There terms on XX would of net And financial our long-term of the a been points expectations for the influence basis points the for QX spread X than performance. QX. three net

interest QX profitable be to their back-weighted some attractive also low at XX% a highly uncertainty XXXX, agreements with QX. year, hedges quarter. Considering invested of issued on funding of compared factors business the XX% in matured QX executed funds COVID-market at in we our Two, experienced we in-line and billion primarily in of XX% along first basis we securities $X earnings year. earnings in the basis. exposure during rates, allocated and performance, and approximately growth range points approximate expect cost a corporate SRE second X% purchases headwind with XXX nearly we spreads of strategically on immunize the to cost One, be deployment alternatives the X% than same XX% anticipate Three, expected is our be to more net rate last percentage to in our mid-single-digit of experienced half in which potential these to XXXX changes and this impact we an half growth spread to to for the activity, to We return. dynamic assuming also

For before expect growth resumes the QX a with back we SRE line more to QX half, in be rate. QX normalized at in

to attractive penetrate today's third-party HoldCo Athene's when view Athene's strategy as success, the long-term approximate earnings, return Athene market scale new validation we further a fees $X strategic the our in return Athene XX% Turning accounting on attractive side-by-side growth front as an Athene attractive look II, addressable investors. Organic fees to and management manner in very be of us. massive to vehicle sidecar of to risk-adjusted second capital-efficient sidecar the vintage Integral for This the growth as business, continues We a an of while strategic equating view to invests fund trajectory. Retirement providing for environment, to to billion in sidecar differentiator we Services generated. enabling to the capital in spread ADIP. ADIP at equity true fundraise

the FWD, Most a AAA, the return and the moment like constructed return is future in profile. X% to hybrid a the by are on of highly XX% Athora, portfolio represented a spend Venerable QX diversified Athene's retirement generate is important companies, all portfolio XX and of Athene growth, and had valuation me Catalina, alternatives last several including investment. our alts significant is which for broader to investments, on being investments. and portfolio cash for basis. months, over services The underperformed Before which portfolio remainder market have which long-term concluding, and but of strategic the let held risk inclusive a

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

comes Evercore Schorr [Operator the ISI. line with from Glenn of Instructions] question first Our

to I get your on just a clarifier want your, outlook.

So about would on impact you versus first talked the half alternative the what investment half second net income. the

produced want So mentioned Is return? back that does Why that Does new I underperformance thought environment? What to that. could appreciate of includes -- which be I just XXXX? year, process dove And trend are they to you performing the next low double-digit the grow Athora kind double clear. half what like an to mean normalized XX% is maybe recently. that XXXX, us you what hope on over good seems was and around this Venerable, you of a not return help with of that their the digits

investor anticipate One XXXX. is which what do the for we'll alts and But that includes to which double short of at just which -- over is to cash, great which posted XX-ish, invested, invested, alts. maybe being book, substantial have inside yes LTM alts which was invested be is we are that types amount XX%, comfort growing gives said. the we be you've us of is yet the saying, alts. a AAA, XX%. the of So digits Martin In is Glenn, answer the over two results Most of as

flat. FWD not investments, over and XX% investment, and particular, performed have of and I terms XX% an forth are last want grew, and the Venerable, back year. strategic say, Athora Catalina but to the awesome to well, Venerable, in been basically has In

same. And rates Athora low And It's the a get in straight has don't single up year, of return. basically mid-teens this it's just been You been the line. digits.

do alts. you the get strategic some lumpiness So over quarter-to-quarter

That this, The curve, and seven cuts. about we're at Martin a looking mentioned forward is what thing you talks have which we budget. is, rate other

of against basically rate And think cuts. double going so we where backdrop low the environment to seven digits to an we're earn going we are

our when While that little have we a rates, we're Hopefully, a into you to giving of dramatically headwind, our have guidance. we helpful. immunized reduced account not exposure that's to so and that fully rates, exposure is taking bit we're

Our of next Sachs. question comes with Alex from Goldman the Blostein line

active, Fund X, I'm but bit Day, quite at spend I helpful. would of the X to near-term time Fund about thinking of So the out. maybe private you Apollo X to obviously a see sort How XI? I think Marc, assuming I income hoping you seems you're quite More several driver that spend to more at Investor bit that capabilities. guess, a further of equity about And opportunities looking a and the last going that. was a been years growth minutes Apollo's you preview has to as look of spoken over you extensively started huge we've fixed be be could a highlighted. And on opportunities, what expand does private highlight inform could for like your years, recently, couple

Okay.

some screw I'll of in it, up So will I for up. as what do Scott fills pick and he corrects or then

XX-year-old the It business. the is Let's been alternative a traditional start with it. Private on equity is management built. has asset business which

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this, price personally produce facing. that markets in is equity you of you facing private think I not like well do up sets wanted the benefit I this to The returns. offense is what XI. get matters is good We industry to really general for headwinds us the Fund be are out. And purchase call get on to it

speculate But things. Scott though. feeling I'm to to about the I'll what We good doing incredibly and is other to have deliver equity. it on Scott leave it, timing private -- at team

the replacement, term primarily it the talking investment think normally business, lending, an allocations. What And that want is I private equity mentioned mean out below primarily about is as credit. I of to investment has replacement prefer investors terrific alternatives refers a but is Intel actually fact a I'm I debt, private investment-grade investment-grade call Intel private of balance the The of from be helps there now world and Intel what if private think income cited. for bank to needed not rating usage they to money income the bucket distinguish which arbitrate trends to in direct fixed funded has that also appropriate bonds, grade. And where has about about you public $XX ones as Most I in Intel the replacement think an is the generally of grade grade as Fixed structured investment the agency is which with bank sheets. people private happening. in the alternative public are credit credit. The long-dated billion example. the is bank debt, IG. or whether the trends, really of to are you that public

public and it of awful to go will it of most the is markets, marketplace Some but lot to will an of go it the private IG.

have We're we, bucket, was bucket get smallest And an pointing in had we entire the to of never to access before. to We've our us an basically out industry industry, it that As now as what industry, the largest out have it. starting built access to and is particular, of institutional I income. clients. an next fixed access

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huge and everything know. XX through a head you So we've else start the building of gotten platforms

with the replace it. maybe bucket That us in selling is believe is companies defined is we that, sure $XX private, will, portfolio the of which public of owning with equity, see their a bucket XX% that out the active not this over income are of is through institutional The equity active the the largest get day? at equity high business management it return clients. fastest-growing Most XX% percentage X,XXX form companies that investors is companies thought built because our replacement. equity pointing invest that be look call the think into X,XXX me And of billion we own will determine being XX% private. of the clients. companies that's and is of I'm and of public added that buying forward the is are institutional is companies leverage, than required to addition business a and we will some access companies. to companies thing to employment they million also stocks. We've really of basis, S&P. plus leveraged. What am I management distinction their to thing to end active case, in business of that the at equity of $XXX our Without new our equities a bucket. now, equity for XX I point, today. It private yet here the XXX% bucket active -- believe on of I that's actually as fixed we The of running the active investors fit is I management, private is. as alternatives returns. the private. in hybrid. revenue now equity a X control our rather leverage believe of indexation. untapped of I public how public

private my spot that quarter we do Apollo what And now in well may that I Marc regardless comments. to very see I or there, X. private business, as think we're deployment. you're in of right, for well. The Marc a said around continuing equity sweet alluded question to -- is going back in really deployment going The our -- right equity that your market is the

just deployment as deployed we year, at XI. So I next fundraise a largely by be and the pacing, look off Fund will X for Fund be would expect kicking we'll of end

of So give that the there. you a should sense timeline

question line Research. comes the Our next with from Autonomous Patrick of Davitt

illiquid actually that think to I you like hinted like the Group this Do market? progress two expect have there? partnership planned is a you months Capital And a at on on Marc, for year. a you the launch conference the products liquid any that the ago, come with of update couple in when have products hybrid one KKR,

a to track. you the more hoping you -- answer QX. yes. business. you give are QX, will it's going the I'm confident market be going The in than I'm I answer to product And will on important the I is that and think market in in I'm little -- want the we because the to explain second in we first still am see product in

as industry about a say, we've it. We've really asset is have assets. firms this as origination industry. never originate. to has always small the matured, way, One we've or the fixed not. Historically, decide limitation limitation to thought thought money we believe -- as to we originate limited the the capacity raising growth I have thought We're whether is the as in essentially small to originate our by this good about growth we a our really our to home. I things a ability to income. Every an capacity We've are been have been in good finding of capacity a let's

we quarter. the was That's really great. for well Okay, billion. It $XX did

We as limitation -- partnerships I'm in not have additive right, If place the think growth. about that key our franchise, the fact, our these is, franchise. core to in to of origination to

partnerships. fees responsibly not to First, culture. to and approach And origination we want sharing is getting have them wouldn't how distributing we parties context fees have third the otherwise get That by in full full not we can of we the as our for to second, assets dot shiny these as to much by excited scale for of get them. we

alluded just partnerships I've see you that think I will to. the not

will you think year. see partnerships lots I of this

and the firms because participate originate the of seat All table big in at somewhat a a this to right they uniquely. have

see You interesting lots going are of alignments. to

what's about their undergoing Each portion alternative cases, relatively cover active you them. we to own as one sense decade. is strategy of will very happening had tough a Apollo, managers has think most are they cases, because directly. managers. time. industry, offices generally, its family If pieces index in the for more a outperformed they exciting not me They're other It broader reach And we, our buying the to of just just defined substantial not those asset management traditionally is active an management, makes has review. In are institutions. of business partnering. This in It of some

really served high net will and We RIAs. by worth reach the global wealth systems

can't vast, is to And as our be and the of managers. we We well the role an on served interesting like industry, I to having It originate is build investors provider Scott more parts to, infrastructure and the by alluded how is, to who pieces now. that to my believe right business for product one as asset will going required are already you excess of of to a exactly vast our majority traditional venture not, reach I those can comments. joint our but it is parts the be tell align, a of track it partner. relative we

next Brennan from comes question Our Hawken the of UBS. line with

you insurance which that hasn't my like I -- weakness these really the or given spoke a alts weakness that those of -- totally properties, actually, understand of that would understanding investments money. has it's And X- really is has to just phenomenon. in of strategic some farms. be have strategic the earnings some been in losing sources the If But Catalina the and your Marc, it think X-quarter within business, not lumpiness been some these understandable. investments, quarter-over-quarter in it to helpful of you are guys

you could to whether to has what speak result earnings going there's reversing? or And weakness, to going any and not of in those active forward? support the weakness Apollo that efforts is help on what behalf caused to Athene So

Okay.

do it go returns a their use I and have what really an up through a income it over But in of Jim been I you has encourage but will time. the period will Venerable long whole to to is this need. But XX% take look volatility, extraordinarily it memory, need Belardi detail me. doing high like in team the quarter. would we get we period not front I'm little wrong be because I So do think and it, stats There fundamentally It's and return of all -- in don't over business by very of profitable going need with call time. more Venerable. way through has to great. this to call the some call is end a you go we fixed is nothing and The so at to investment.

but been time. is did been and closeout the just has Catalina big has over run-up from a time a had had fine business. company Catalina, that has just flat, been recent a P&C as long-term been fine. public Challenger, over We is big weak. and of you run-up then we and notwithstanding flat decided has Athora not the that in return, activity, trends said, like business. capital now

merger, regulated Apollo. same of else investments for the be very Catalina Athene So capital or we we Apollo transitioning a from little a otherwise. to XXX%. back, is Catalina benefits benefit strategic is in within through entity of where balance Many a Apollo X/X, block that own company in fully point a diversification probably traditional here annuity are in aligned. has what's X wound and expect P&C held was and investment, old bit should step was entity. Since from insurance for held to company Catalina time -- on legacy stakes stakes Athene sidecar these Motive were all relatively its and made When the that been activity over something now the sheet hold I owned business were small Athene. it the doing business own you held way so of a a down or in as insurance a years. If should going the we next of process sense have strategic its all the the attractive not and Catalina that of Sofinnova the being simply is

is stake small a stakes. relatively its And our is of The part, in so quarter, is one Catalina, it's the vast and exactly in frustration transitioning and a is, that's that the performing the in watching only hand, the it business, it a do, and lumpiness supposed some not it's going what what this watching is where stake to strategic on of on and is what's majority alts you're you're process because doing in the Catalina. strategic on of bit portfolio little the

Siegenthaler the of from next America. Craig Our line Bank with of comes question

in fixed quarter actually prepared presentation second to but the we're the driven outflows I by retirement, XQ. and was were going quarter elevated that funding I comments agreements, just which in on looked you liability the to elevated every in update the third step stay think they it going curious quarter, down the like that be income in were, guys they'd they because

wondering I'm of So difference. kind the just why

is a misheard. you think think there don't I difference, I

were to that that from we rather you than and of is there pretty think that on the deviations be schedule. as we there levels know, associated is business expect terminating in with quarter schedule. be much profitability I we're extraordinary saying The schedule, schedule, on the will

if And experience portfolio going to top case Yes, impact, and publishing to obviously, rate actual it's look our going Craig, we've so back the transparent in quarter expectations, expect that the be Yes. relative is future principally. forward. in the run we provide to time, The reason this at maturities it's across that been expected guide. on right you

Our of next Michael Morgan Stanley. question with the comes Cyprys line from

I overseas there? see curious excited what the updated was and to know and Just there? Asia. in opportunity hoping about ask up Which particular update Japan I'd countries meaningful conversations, of and most opportunity you that's evolving you just color any unfolding? you. you're be your on can see about? set How come prior on maybe opportunity calls for your us particular, I the Asia, footprint in a remind And for initiatives us on wanted you set as just

of a of in the years as Sure. our grow Scott. base Sure. and hundred ground business to asset a on from have we've employees Asia starting we a a prior to small ago. countries continues different in quarters, a Asia across alluded of close couple pretty classes. no, of Yes, couple albeit substantially, different number It's to Today, number

recently, the about say, lot couple couple walking in announced and just transactions five really a over Japan announced of and I ago. in now of we most the PE have would made perspective, there, from have executed our really a Japan. We've deal last a four established progress of Just through months or presence years

we're from PE our where building equity. So doing from private and Other really for focused see out insurance a Other we perspective. would for Australia markets like We're be India things market across that what Asia. capabilities. PE, we're

whether it's flow agreements So in through agreements and Japan. reinsurance

in companies As in Australia and some know, Kong. stakes Hong you

continue are liability as looking there, portfolios. And Asian side for to penetrate asset We for then that numerous both management real a side, really alluded insurance on credit opportunity just long-dated continuing for need on as a improved the companies capital as side well for thoughtful their to returns pan-Asia scale comments, huge. as we're to the Marc there credit the is in his

And so that business continues scale. to

opportunity true strategy, we So scale value safe, orientation continue real strategy, but the Apollo being to it. very secured to very overall, there's methodic, we're and

Apollo it, at in it's, but growing, of X% remain right to call constant, will now, percentage -- it's dollars. that the to grow it's the grow rate probably dollar-wise. continues So as -- That's to continue Apollo XX%

of from with Kenneth Our next Worthington question comes JPMorgan. line the

Alex is to click for transaction. We wanted This on the on Bernstein double Ken.

You've obviously deals. done large-scale similar other

Air bit France and AT&T as obviously come to mind. such one this a examples the But quite of is Some bigger.

lessons extent from some provide flows it an to think other there? of big Or can the of we look then expect to how ones? made just And I that you markets So perhaps impact returns. then learned wanted differ came be? And a the maybe this record QX transaction? reported, from was of how it of Obviously, what results can notably from XQ you concept a business If on side? capital else we through and together, P&L it what understanding from the get ones transaction perspective, click to may from a double how the prior better some what of the the

Yes.

bear how actually the it and may otherwise, So to Intel is whether private type with bring or capabilities, this credit is The from have way ones while across it's firm, we exist a comes talk or very than high-grade solution really syndication the equity way to underwriting right? It the or about resources structuring you capabilities, is of bigger of you're transaction activity, these announced. firm capital the to it together operates to approach serve of some right, that large the consistent blue we've the really or all previous relationships the or companies, transaction, chip capabilities.

probably, several the over So months. was to folks I on period as had coming that different something a transaction a guess it firm Intel, together like if like XX touch across of transaction

firms These private sort not are capabilities and desk breadth could middle if with the are like big really happen. relationships might way do. you really small trades, of these market Apollo only that will, of undertakings the a So credit

infrastructure magnitude it dialogues the we're infrastructure -- norm a across of having. and whether scale transpiring becoming what's rebuilt digital capital all it's while to more standpoint, transition is of of of the the has globe, large, energy be From that deglobalization the the types was are the and required there. amount the these given the build-out, and This that the of

So I think more and more type of of potentially larger. even you're to see going or this scale

companies highly that And deal companies the with of a start these like you and structured speak And get ones are, to type as right, counterparties, small with to number done mentioned, who matter. matters. counterparties transactions, only again, very are to what these firms partnerships, These in up transactions so you can and are of essence, so partnering stand really capital.

of line the Hays comes Cowen. with question from next Bradley Our TD

Bill Katz. Hays on This is Bradley for

bit fees. how contributed opportunity about a in on non-U.S. the the driving be color step-up bit capital we go-forward spoke particular, you You a to pipeline? origination should quarter, thinking about in more how that? the Could originations give and originations in solutions And us the

bit So to a it I'll over and little I'll hand Scott. do then

for Europe the are bonds, France, issuer issuer created, about are open done for actually and we a open open we've told a on new is issuer technology being for now corporate for The We've new is corporate AB than told creating Japan done think considering we've happening a creation we're you infrastructure France business. investors we've next-generation them third Germany, something you just world, happening bank think is market we're if AT&T, now open is market. not the business. total were XX-year told that open Air and debt for Rather with fixed Sony. now business. the Intel opportunity. Europe and we're Northern an about the side. for Vonovia, business. What's that were business. what corporate this we've InBev, of side having So and the investor just watching income replacement. has now the between choice. and choice on where It told

size of not of our We transaction. But relative the lumpy. is growth. business, always will will do every be to It the watching we in the are accelerating point scale the opportunity

next get like You XX as and I a an as But borrow capital one are in years. the we up. Governments take one a the will shaping the always trend going a over private as awful needs for build solution are strategy of way and general hold, line, quarter. the is big world money the the watching to lot around

can the comes because come match-funded capital. big Thanks, and going or awful but crowding. the comes right base, market, or to marketplace. the private generally choices have market. given the it system private asked are capital. That to going investment to are the the funded shorter-term in lot from in everything two leaves can come going to, are to two daily directly from Not the is being In our that, which really investment match long-dated it capital matched funding end banking to economy marketplace, liquid public market up three We credit from places. indirectly for the they or not -- an is is the particularly It stick only from only home drivers more of

come we to in doing through last breadth been what And been I as how -- across or mean sheets, the years, controlled don't ancillary of some -- origination your surprise. excess no -- the origination thing an is consume specific been balance ACS is offshoot the to it talking for geography that we've our that's doing. and We've capabilities about system. Yes. and exactly ACS the X and important scaling our that item go have just we single And category. And question, most should been we've

And been so we've capabilities similarly our there. building

If it's by transactions. of you look literally our represented hundreds at ACS P&L,

smaller earning are quarter, trades As of but Marc are to, majority work two what a or there you're up seeing. what's that's once build ones, the to big there. that just flowing alluded that quarterly our one vast And through

the the in everything and those we'll else and the of invest that Apollo because to is you we're continue room, about really side We our invest ACS to that engine both the will, origination on in of platform. areas if talking business, continue

question line with Ben will come of the final Barclays. Budish Our from

I fees. capital wanted to markets just ask on the

You alluded And if know half of or sense and of if to a any trying a back ask, color to pent-up normal the mean guess out a what half better what XXXX of very to year strong that sort return of to of year. degree looks I I fiscal the pipeline stretches don't know demand like, a what to understanding like? the for too it's get versus is might I'm look this that of 'XX? of an back early the don't but I on far. what kind does explosion --

Ben, it's Martin.

-- with of expect. would about sort ahead, we probably We're for continues to awareness products aligning and around business the business capabilities, demand grow. the is quarters if The pipeline supply, geographies, visible our X that. like, the you of So building which you

solutions sort everything for a origination multiple to there as and pie originate. Pie which Athene, earn managed accounts a the to goes -- a through we did fee third-party platform are for we management transaction day recall, to so funds ago, fee. capital or which own homes its from And to we pie almost year for goes LPs you of spotlight investment-grade we goes portfolio, and and

you holds. from here would if So business we the demand supply we ecosystem. grow to But And can sort equilibrium, the that grow It's like, your an expect that side. makes continue briefly. as to of ramping answer we side, question the

here. an about continues we're very enthusiastic We advantage. It from have and growth the build, to

closing Q&A the call. Gunn today's to you. the Thank concludes or of return That any now Noah comments. floor portion for I will additional

call morning. this Great. Thanks again joining our for

for you you. questions we feel with the join you X. forward any As to on us Thank And us. have anything October excited are Investor hosting you free to call, discussed we Day our about on for up look to usual, follow and if

We your you. teleconference. Thank participation. That today's appreciate conclude does

at disconnect may You lines your Enjoy your this rest time. the of day.