Apollo Global Management (APO) 5 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to Apollo Global Management's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] This conference call is being recorded. This call may contain or 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. reconciled available figures on are presentation, Apollo's measures is which the non-GAAP to in GAAP earnings These company's website. nothing a offer that to in note on constitutes fund. call Also an any sell Apollo or purchase solicitation to an of an interest this offer

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

reported of Thanks, highest near-record or morning, on [ billion million earnings We $XXX our financial on level net earnings supplement $X.XX third $XXX we earnings the or $X.X our welcome Relations second strong release everyone, or of $X.XX of our $X.XX to record. results record per again, and adjusted financial share, million published operator, call. and income spread-related per this share, ] which portion share Investor that Earlier per the of quarter fee-related and website. reached included

We participating have fantastic all Investor live I'd replay Day to thank people who X,XXX to Additionally, you in then. month. since thrilled the a moment participating addition to another in our like with over were XX,XXX for accessed to take last attendance, have

CEO; joined event, morning our update. remarks, prepared to be shorter for will by will Martin available I'm CFO. Co-President; Zelter, Given Q&A. be Martin proximity Marc a call today's will cover and comprehensive this Rowan, Kelly, Jim and this Marc and Jim

the I'll that, hand over call to with And Marc.

Hopefully, echo a we truly as us unique Noah's for Thank X-year with outlined X you, nothing into that Day X upside drivers. spend to your granted, good are that Investor plan we to sentiment deeply vision to want and on appreciate and to well building. the business the willingness we Noah, I morning. clear our for as take dig we hours

we billion more ambitious of reaching ANI XX%, but each through $XX of $X fully and targets SRE to suffer X FRE believe XX%. summary, meet. by FRE of they're Capital and laid are we in growth average can X we not to out than those share did who $XX annual XXXX. hours, team average SRE generation talked a In short, targets, about I management the billion, and annual behind for doubling and In billion. XXXX $XX the growth

a in of direction. worked. This quarter was that all short, The everything start look solid In made good. us team

today of will culture bar part to for Day, of reward Investor the team it's It's we We one that. the frozen joked the about Apollo. open the tools of on yogurt but

Let plan to me spend each relate the a second in business as to the long-term other. quarter how

out industry next-gen our terms X-year or over need we capital drive global In industrial ourselves to we plan, were forward data. on laid and energy infrastructure, power rebuild to of tailwinds transition this years. X our and The for so-called next X thought renaissance and the mega massive trends going

The second, retirement.

third of The private the long convergence. been private sole who source and notion the the public for growth is of capital And have finally, individuals, assets. institutions of commenting

to execute these years. business front us squarely set the franchise this very is could against the over short, our X next any up tailwinds. position X of In these opportunity It to strong TAMs and to of double in

our industry, us. in project not that and ways next all large, years, fortunate we the X will while business front particularly to a that enormous size of many of TAMs compared We the And given we player. scale asset the our over is small in in the scheme are relatively management we that double that are

a $XXX originations quarter, particular, ATLAS, Platforms, the really a in $XX the billion for to of quarter quarter. global record quarter, it billion massive the and industrial Bringing this in was a terms renaissance need really capital, had of year-to-date. down for strong origination raised, to expect great origination cumulative equity we going firing strong. capital facility from and $X In ATLAS, new short, things strong quarter, of them all cylinders XXX billion at the $XX $X are billion from date, person BNP, of forward. billion

In billion retirement, had growth organic Athene quarter. another $XX

through widen We expansion. the distribution funnel continue to

BAML retirement Just platform. Away to the make launched XX we last market. particular, another Athene, week, in inroads into space, from continue D.C. top with in the

We our first platform. for mandate an on AAA have our product RIA

are We launched and of sleeve the October. in offering, equity a in we CIT

help is front believe I us the of an in While us and assets technical, accelerate this in solutions future need. private for retirement well those enormous to for for bulk portends and adding in milestone

globally. X a has or less. year-over-year Evergreen launched individual In asset-based XX% fund. distributing of We an XX [indiscernible] pace is here have, multi-asset 'XX company, The a market, job. in without products flagship team investors now our now X our extraordinary which large fundraising on in in done retail, for to ASPM, have focused X, these wirehouse the been increase year on strategy, terms post is of the on market secondary wealth platforms. ABC,

the marketplace. really what of be. want to Recall here here our an as potential can in to I innovator this out this But seen that call is strategy what be

X.X markets. of stick debt next AAA, the by we circa by kind year-end. billion be that crossed launched has now and ago, So a very we I within And expect a XX.X%, $XX with said returns I what be And portfolios. happens. of is approximately product, Strong about when now short will I when be of the period This public to time. talked years product we've fund uses expect public largest the of the think Apollo I year we at which this equity multiple that fraction across here, volatility and $XX.X markets billion to

advantage really performance. in clean. it but way, taking leverage, trends lowest strong all in done of Apollo-esque Durable also private yield, ADS, credit,

large size how strategy the And it's is I show is this expect this serve is something and year-end. We it growing We channel at every billion be to market marketplace. circa it's product, almost this developing. but the important continue to day channel I also in learn because to to this capability think capability about just and $XX about about fast the to innovate. cite of development performance, the the

product ago the individual a unique an just to year one investors. of rep of insurance To example. about situation tax advantage talked We take cite

series, Altitude X power wirehouses. product, in expect Those we year-end encompasses business Our now renaissance, insurance the retirement trends, at we of which billion X that active are tailwinds X X the expect growth cylinders industrial global our X forward. explore. X we retail going $X and significant to channel rep our and that in the of

private is of are their we're grade. historically is allocated fixed place bucket, beginning income allocate watching notion out The solely alternative private placement. convergence. whole of What investment fixed public investors markets and to income out fourth been XXX% bucket, public see take have historically this to as of this has We their who

that different in will time, and begin a over We public of consume to investors this alpha, between divide number beta, they bucket investment grade; that expect formats. will investment grade, private and

Some will private consume directly assets. as pure

registration. it because more Some State it yet partnerships we've it in are names, the product fund More is that others familiar them such that announced more in on with to and as Street. will consume in the when it approved Abbott from Lord format, familiar is currently will consume and products and with relationships

excess our tailwinds, our that of ultimately forward. I they one to return X will of offer industry per them alpha. all risk, our But depend capacity forward push on originate believe, factor: Those or business assets will unit on depend and push They

not solely is like manager. intention manager we our not simply gather are and our to what asset not degrade an If and is We asset funds, that and business going do. an we That degrade will simply our behave franchise. we're

ability our grow previously, capacity are originate, Our we we is on doing to how limited, I've by focused about to this. as keenly go and said

competitors over XX people. billion that is a employs years We platforms, roughly of with past circa This number we've us have spent this to very the XX, compete a a bar investment that will need area. which X,XXX cross of in some many to significant now and $X our building

Some offer to this excess one their good unit and is that. do expect to per risk. enormous, able clients will market to to has return do be make but grow that, their mistake, risk we originate business and no But of them

X.X I to. have we we to talked our the drive and is home In wish Day, but could I area to everything, promotion failed Investor third-party insurance. that want we recent during hours really our One our covered

Athene, that we for years to are ideal XXX% past seeking originate sorts In scale of retirement built, other assets, can insurers, trying ways, the some and of are of the that have capacity assets same We us good regimes. capital we're who business. people XX and the to over Recall same and the XX% we deal with regulatory services everything liabilities proven an to for of partners amortize amortize nothing. the our originator have and want as that

over billion it is its double years. business AUM we next date, own. and on insurance third-party Our double of approximately the $XXX as it But of X expect this will not to

of with And one us the our partners, so investment his private add of that to just at CEO insurance from become broad an AUM, us. regimes make will This private but our the third-party a and and Jeff lots associated all of senior understanding to taken there's we've the also not of that to receive sure assets, to the and and firm support Jacobs, an support important industry with area regulatory Jeff grade, resources retirement, and capital capacity business disposal. most of attention of particularly the is to asked to in

win. succeed. unique In our origination, cost playing with are believe we the used context seem this to In to the the and replacement of the form something capital culture right we've mainstream. renaissance, of and notion in to an of right positioned industry, to originate do now be fixed short, of the this. short, are industry this building capacity we for and we We believe income we're opportunity, Lots to uniquely we get the industrial terms across and

over I'll that, Martin. With turn it to

Thanks, everyone. morning, good and Marc,

move to across and expectations FRE, and some results third up before our brief us X-year exceeded year the first PII quarter well of financial into our opening this SRE on latest close to expectations So results plan. quarter's XXXX, comments out Q&A. and to consistent with very make confidently I'll position

strength a emission our Fee-related Management, supporting credit Credit quarterly Athene FRE reached from record fees earnings. fees growth revenues year-to-date billion year-over-year, credit in management and of that basis, new third-party fee-related XX% and Athora. business. Within in Asset $X.X increased exceeding on our with a surpassed

support further, multicredit, management as generated inflows months, Atlas Over credit of quarter, mentioned, related business. across the fee growth. as well broad-based of the billion XX In billion, inclusive $XX totaled lending, inflows third opportunistic and $XXX inflows direct our than Athene, the and financing of flows activity last Marc more fundraising we've that to to continued robust

were fees also highest Solutions by increasing stream XX% supported its Our fee quarter approximately posted certain ADS. driven more record, spread-based Capital than XX strong, on This primarily vehicles, performance including from products business has fees by transactions. credit underlying year-over-year. stable second income of and Fee-related

we these pipeline. $XXX by Going discussed formation supported year into a fourth to diversified target largely full for persist, revenue origination quarter, growth organic trends the strong, of and our capital XXXX, expect previously million

time, on quarter same million we've expenses of the with XX% excluding $XX prior of increasing commented the the focused second X-month previously impact At promotion remained versus year-to-date discipline, that cost we the on. total period, in costs

XX% retirement SRE the roughly expectations by Net of with levels results for basis items, flat profitability. and quarter-over-quarter, return. in an notable solid growth quarter QX long-term $XX reflect robust when to our Turning increased trends spread, of adjusting was of services. excluding points billion XX alternatives spread organic and

As generated the within a this, which XX% the portfolio return AAA alternatives annualized quarter, part long-term XX.X% in third of generated approaching annualized XX% an expectation. return, [ ] Athene's

information first the respect Starting allocation provide near-term actions alternatives AAA, an going and to January several intend item. quarter approximately business following more of with day to end which portfolio visibility for mostly took XX% align the forward, pre-release portfolio quarter to return within end. this Athene's the we now We into with at to accounts in in QX effort around line

year up items. $X.X prior comparable when Turning to SRE year-to-date totaled versus billion, excluding the X% the notable period view.

[ the of approximate SRE million full fourth As $X.X similar quarter Day, level on quarter we expect in basis. as-reported year, Investor at which an results a detail ] we to the discussed versus implies third in for SRE

by Fund Principal quarter. investing from some monetizations the income during IX benefited

months, variety for to September net XX% performance We investment balance as fee and strategies by returns continues accrued double-digit PE more over period. was strong a the supported $X.X across performance. hybrid as Fund and XX Our at billion value over credit generated be of well same the X last XX than

increase current quarterly on While as over pipeline, meaningfully environment we're our PII of we line activity years the to more based optimistic expect that improves. near-term exit be will in with couple the realizations recent trends next

during allocation, shares an within $XXX average more capital more X deployed $XXX, quarter. million volatility price of and million we than to QX of than repurchase made the terms opportunistically In at heightened

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

coming first Instructions] today Our Goldman Sachs. from question [Operator Alex of is Blostein

was update hoping A seeing rates making the Maybe with year-to-date. you the flows particularly topic are mentioned could guys an Marc, total [indiscernible]. progress you're heard you fundraising, AUM, earlier. couple as I the in us of those seeing you're insurance So $XXX the and on but the on you curious give start on can with I and billion there fee you channel, respect specifics. third-party to in

guys with of is way? in that Just the insurance in sort broadly, the for when some of strictly kind that of annuity a change competitor of you're you you some the in think partner market these what broad this terms there, looking this sort enables in channel of base? channel, And of liabilities or rider about companies as sort insurance addressable

the I'm you've how to then going bunch So specifically. going I'm pick Jim of with said A things done. up track and generally, Marc, really have -- will start don't to things it's more Alex.

private started think the own I liability, a consider we the pro our side always run direct with are very side-by-side always and in this partner on a asset business. be We markets, fashion that do the Not them you intend to our partner but instance, would of with our capital who particularly like and for having that would to announcements, market people People private -- the you go risk aligned third-party equity, our risk of franchise to that that to pieces an competitors clients. themselves, going and for have strained we public platform. accounts of the our investment rata a be Athene only We assets believe, who continue we regularly. to we for like-minded same origination in do forward. Unlike from know competitors of manage we franchise. certain grade, capital this for number behalf it's you the risk regulatory in We the have point same And institutions, them. insurers is the credit want also our future, although about and want having reward and At for originate foreseeable third-party to on of other additive and their that risk, for our -- fast. who regimes, recall This the after funds time we same sheet. balance some the would additive the is some

have still one one large very interesting it. assets And to And we the want if joke originates is view to think private near a turn, has thought area, a we it's very, in our ecosystem us made no credit will. a it, risk sometimes you companies franchise. own and share take winner-take-all historically and where peer but of something. and participate of mentality. as anything very this risk XXX% in of -- It's we equity a competitor means rather want people of mistake, insurance than we that they it you than Competitively, I our different that these with beneficial you them, originate a we in

different X accounting. annuity, types to on and touch the The just X they're Jim, P&C, By mostly way, life have that. of turn we second or I part to is before insurance not

institutions in insurance in increasingly, or side-by-side or institutions, part context and, big with see we one-off with partnering insurance either other of cases, A actually investments SMAs. our placements business. programmatic in ADIP. the companies, financial Some are some people us, with But of of third-party us peer funds through direct investments, very

share of off participants gives share of leverage and the not ADIP liabilities, they assets, just structure. cost a Athene the but to a the get

the unbelievable we quarter. efficiency quarter, job have Although was an impressed. chance you it about quite on to saw Athene numbers the didn't back, when I, do this some continues I from frankly, talk operations. go a to

that, I'm over with to to it So going turn Jim.

leadership, have that what been the portfolio takes described add, the whether lot putting regulatory how from Athene But the this sharing an is flywheel. been should intersection we individuals environment perspective, of of by same helpful. would applying has a place. And space. I construction a has our mentioned, that a across on it's And whole really calculated in Not open funds, always it's activity in that player at this insight, ADIP, is Yes. CLO as it's but of sourcing, whether portfolio, say looked Marc at one senior a who be whether Marc Alex, to and there's architecture views variety

this into again, we investment-grade the the reason so think creation, it get for across And this of if part, just activity. is really and activity, mostly it's large you risk is dispersion fixed the direct system, the grade more platform traditional the all grow investment income, is, why which And origination. not most can really credit

substance in and -- So we still early think activities, these the of we're scale is days. the

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

on My outflows. retirement question is

actually after from a to from right the they're August. annualized, quarter, from with improved Athene don't of visibility down target range 'XX, into last disclosure, modestly expected decline in in kind same pickup the So back But XQ they have presentation again XX% the line your any but to we XXXX.

how you some line is wondering the if with to liability share are with it XXXX outflows for with in trend generally And So full, in us deviations? expected could I'm XXXX. quarterly

It's Marc.

rates, amount in [indiscernible] a from into was from tremendous shareholders and community research of substantial vast interest the there during of the interest So the liabilities. run-up

run to that show by publish predictable. highly publishing And sense when of the actually end insurance one liabilities Runoff statistics that run off. things we is to business, have going of our to we good to began do actually actually the is business. business, pretty a wanted period MYGA we of And so is to used we

pension, regular as business a of transfer of out-of-period loans regular runoff flow risk of surrenders. and other flow as have We policy well and fixed income a annuities,

our probably I think the to Day, is forecast. easiest with around update 'XX it. get with thing do to But didn't Investor we

less, hard I that's to think do [indiscernible].

say, to. the aware list. else publishes of plan that industry information. this up I'm would the high anyone in I It's We not

ups Marc so be where policies, predictable. to by tend against X be And strive so as we closely track next the to And And the driven to quarter area we features highly another downs metric. it's the the contractual from transparent. said, very any they're and and of

Looking ahead, what I saying. tracking just exactly wouldn't expected. expect trend we're from any different as It's we

next Bill Katz The from question coming TD of is Cowen.

X your the your I'm by of comments, as retirement as of retail. well Marc, intrigued notion just the opportunity

retirement, I I but I'm ask to ask to retail. about think want about going

In a lot. you terms retail you're mentioned the learning of platform,

So the in wondering see you management I share could how if secondarily, the and help out opportunity build expenses are And for a of number that Could been set industry was with where footprint. us you to sort higher you us the then to maybe Apollo's speaking expense peers your of evolving you understand wealth role that? terms cycle? have of in

side to with the question retail I'm to answer the after retail but going answer, I'm So of actually go your it. tempted retirement

early very we're the So in stages.

really we to like Investor about Day family the We institutions. office. pyramid, of nothing than One do the cover we institutional. them the how channel. retail is office of top the to think At about behave think institutions. us present was other to things Family pyramid this They like of at we tried

does XX% alternative, to are traditional private, sense, As best can now but a mean but tell, in they which -- close private. we not XX%

closely easily on through in educational not of different be call not asset we mass that that of incumbent adviser. assets will their hypothesize of vast private that these go bottom to process people formats, blend parts investors the advised traditional a the we were were number the At that to were affluent. asset serve to not, own, who are likely financial managers, more a to I by likely pyramid, into perhaps by managers, going provider products majority who and are directly, I a the understood

you're talking channel, net The which different lots channel of is definitions. I really call we the referencing that high that which advice let's -- think about worth, has

have a things predictable that think have I appropriate that do products is pull not that to tend that products more For services. this question are of generally us, buy par, outcomes. oriented, behavior. binary buy to They more They and yield

talking products Although do majority alternative episodically, is about. the they we're fund in traditional format, not buy that vast but of what

If one is opinion, products, you people, these large serving of wealth to technology, you to a makes serve scale at opportunity firms. think a going needs handful these to are systems really generating in be, only put and The institutions, an large of alpha. about of if are products of that together sense institutions participants, my one the multiple channel scale capable for

offer have at the excess return. end day, of not the Let's an develop to we asset we're just it, manager,

forecast For surprise. better not of budgets the out you, unique. contemplated a cost or worse, as so I doing think we the cost view envision and don't would anything call context the given of I in I They've this. we've the been

think to partnered the still their so. that's or clients. thing selling and this certain we The a business advisers with we is of and their X% XX% happening we're in when reality we're enter so channel say, financial is oh, interesting I

these We us, have fully penetrate to -- we, any yet systems. all have of of

we have do system, serve our make able it a penetrate and to to able nonqualified ease. products to with to simpler, to qualified we fully be To and be we technological have have investors

to technological And services. services. is the to wants I'll we're if of with so add just to Jim, can cost be this seeing be way This previously, pressure, be leverage. ease the it doing business something is so referred of addition turn can much for can this. services, not intriguing, services, that, one educational low-cost we we've are seeing And what perhaps of And request most regular to this he

we're dialogue. taking the a of pack terms at the a it talking Yes. products breadth in product is dialogue And solutions that created. of we're of of And the making what portfolio much actually more about head and

time don't want that more the -- to clients But As the they -- and equities, the the it's lot Marc don't ability whether products. binary want equity said, outcomes, the business mentioned, well, in in a portfolio evergreen or other, on of even Marc finance want will they strategic solutions there a certainly latest public note whether allocation, be at buy in things how the or variety a looks margin, terms future fund certainly, SAA, these a where asset of options. it's client

will much So be a it's stick. more a few There winners.

our planted with resources a successful have flag We and commitment and vision player. to

next Wolfe coming The is question from Chubak Research. Steven of

At of actually a to ask future you around state allocations I'm opportunity. trillion So Day, target [indiscernible] question make did the around date compelling going case DC opportunity. fund retirement of the for the $XX Investor Marc, a a

As of day allocations in The by basis held might and target funds, DC about it currently in is assets of the on percentage of cohorts. looks are near-term folks terms majority that's that in we what are funds. higher tangible target less a fund in date those than held how evolve, think half assets like age

time? once up believe that trillion opens to in to much that peers? opportunity a wanted on can medium-term over new your I So on hopefully How basis evolving how of to perspective that market opportunity more see near- $XX you service you do get your you you

Okay.

mention successful But think I for I just it point in And assets around in our have Australia. saying In has or most to retirees something I'm we we've talking to world X-year that societies probably So is did plan. out, where but the places -- solutions. world to place at have budgeted not very gotten assets outcomes. private in achieved Investor is plan about it did private not I'll the Australia get to the but portfolios, I added alternate, Day. visible for by have been superannuation where look and our start very, returns superior

be XX% in time, that And XX% talking about outcomes at are light the with we in of in but we're Over plans. rule will assets traditionally along out eventually inclusion inclusion really, blend, practice, not better, outcomes. if the about to assets recordkeeping, to allocations that I I and kept have these talking the demonstrate private you of one of see Right believe of the a portfolios. that people private for would now, have or assets of the believe, law detriment, look participants the what significant time slightly being better traditional will can public-only

of They not the very rates believe, the have done turned of return. years organic slice U.S. is and They team. really retirement in participate originator products to start-up Athene, have of trillion a it really job. the an assets. that nice do generally. look But rethinking the they $XX they world. incredible our It far into took efficiently. and I they it They a to just the in I retirement about largest And and, more is in it do commend have and well, XXX(k) If really having the XX $XX trillion I at about of so opportunity private retirement also at

the over honest, they if been the have not really that outcomes, of years But and and the it is more create a product updated just there we're a what is less. piece a has consumers job. taken prefer all better to better much they've out traditional product I alpha turns they've opportunity consumers done set XX an private done past set believe offered that they've And markets to itself. rethink to

that pursuing. the and simple there offers what lifetime the believe, forth -- north income all we where would product I is Investor to go. guaranteed little guaranteed a had star Day, that back discussion we income, get in we a the Whether had at and be a way getting we're Investor simplification but Day, for little like of of to we notion lifetime to And

be this into the to product comes or the change rethinking us, get our of not broad-based front I the of capacity Should plan notion At opportunity by this back But to regulatory we reform few in that baked the Limited, for XXX(k) origination. to through I just years. of regulatory end and X-year believe would industry. course, our set what but is entire of day, originate. that encouragement, the of is to single us all believe, biggest next or access the be upside, for over

next Fargo. The you. Thank question of Mike Wells from is Brown coming

wanted I the sleeve kind a move platforms? on see expanding? flagged, this about our building you guess, CIT equity eventually guess wirehouses, AAA Can on it that to structures? opportunities I building ask discussion, model pipeline And the on for other portfolio Marc. have of do example, how I you in like to of that Do offering you

reverse. So start in I'll

today is circa So $XX.X billion. AAA

is it's product, rates notion hybrid with be turn equity offer equities. broadly circa to to type period of lower X% equities. meaning that $XX less low than double-digit at We over it but public expect public ag, it volatility long it -- is has an billion traditional time, Recall And equity of than to It is year-end. much volatility XX%. is volatility a its with produce a

So the and use return. case hybrid income part reduction lower risk replacement rates to moving part and equity through without here fixed in yet is in of

We are a seeing purchased it Right as still adopted in it being now, is portfolio product. allocation.

be private. are business when because subscribes do I the the will of to in public portfolios be solutions. envision will we do future talking of comprised and AAA XX-XX day I they be part want comes in But portfolio AAA. Someone that to think and the about retail

is individuals first plan of is group default to this progress this part grow overall there. In is the we'll doing am are and say, for what the it's us CIT, equity firms and to look believe, overstate too this this, in -- to and offering very of space I solution. see job let beginning the date. equity It as early from do first an of Pipeline, happening. a it's the retirees. the But sleeve and couple I essentially to good part that at equity pipeline. And retirement for would that happy is of an first who

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

or primarily hearing Bill's sounds down distribution. directly Going that the talking of another is getting others you're to payments a for question, of traction result to manager that, it message you ramp like, distribution But on back expectations aren't of lot near-term And that matter. platforms. retail adding we seemingly really the as obviously, a from margin

on in So of? than to is headwind be others see a it this account and those more for might vein, are? why that expand you And different should we how maybe expect

Patrick, it's Martin.

I -- there through So whatever a cost. distributed incurs you we're segment whatever distribution the which retail reasonably say is if at seeing large headwind. channel, look that not of in product it's would is how no

think are external costs I of just are So a channels of family other a we sort office, that family to And ourselves, there office product. similar. which distribute so couple cover

can incurred. a revenue cost a it's that's can in against expensed be which Within do against the placement line; trailer netted fee, upfront either forms. or the can X or as X channels just revenues, that cost, the is be It and we incur come it an

costs out. be this trailer early margin revenues is versus laid we've we're the whole And and degradation days reflects of an the the will contemplated the it. But fees. is migration a netted in the quality that from still costs time a we're non-comp seeing I of of And all -- the you'll product plan product. expect cost. against see explicit stickiness you'll from think this in upfront see to evolution. think We of majority within it see placement over I what don't And But the of

So pieces hopefully together. helps the that put

a stable mean in origination is and to right add the of that private our out bit outlook. is institutional And part be something I'll of having fees it. that unless been we demand unexpected of implicit be we we've lots -- business, what smallest industry a broader part to I built bucket short the that that, there expect is over little be line. to have assets expect this of of this in a entire we've We discussion products to -- in is time, happens of If the alternatives. our long of industry. period we're about would called a

been sudden, demand Insurance for private we Retirement time, others you're have they period long X them All assets. of have full sources of new is private of and assets. a seeing do. a what out companies broaden swing for and into

individuals. about, been but that public private of is inclusion in both retail convergence channels Individuals, products. you've the the public private, and second also assets The through the of talking through

interesting happening. what's that as really So we growth to see

of heretofore, much these be And all That's right, business institutions If private alternative where is who income up have expertise of for in and that private have fixed unit they to same historically promise to assets. there untapped the the markets. excess we areas demand assets not return it an as beginning out to their see assets respective And their per of of of and, then firms in only risk. each assets larger the invested in is invest private we our generate private bucket. we're offer manager, a of supply for to out private expect supply after assets significant their asset the

from The is Hawken coming next Brennan UBS. of question

you metric added now looks prior maybe largely adjusted in the mapped the that's the largely that's like the you XX for platforms. reflected reducing to of the it then can debt number that footprint speak origination, And to you have disclosure. believe, origination number that origination about But rationalizing you I also, of Thanks new guys platforms, equity sourced and where historically, and from? have talked and

So on P&L? update expect will updated could those and you for on give us what and maybe have many an that platforms the efforts expectations how impact you

debt business, a it's together. platforms our in origination risk runs there's and just share as rationalization origination, is billion the some [indiscernible] and debt I'll the who it mid- XX go Sure. our high-grade is debt where of is we've $XX really high color that the This buckets that's origination. Jim. organized solutions. Certainly, to capital core with on and our And the Martin between That's majority give analytics. credit. and But X the can number side, basic oversight, split, all the run a is is also borne vast origination is or well. It image numbers, global it's person X the And view, platforms through sourcing for of there's XXs a some the quarter. the and lion's of

the of in tied XX the did we it of they're with really size the diverse not We terms in regional part, to out diverse equity and a of today. versus and But flow received was number. the we're of we're the of investment terms happy They're for balance. question very set, global very, so that And most sell one in coverage. product the got the past,

You structure Wheels. one top The similarity, risk. have of senior the capital Redding biggest Ridge secured being and ATLAS, MidCap,

more And Apollo we focused centralized on this successful. and activities, is ecosystem So been business. don't markets mentality, where any mentality, how and historic that equity the private very very and we the of these that to our those we're direct rationalization than see bring again, analytics origination oversee we've and other [indiscernible] oversight capital and

partnerships, large other of the name. have capital origination credit do all are large CRE areas, the quite along. So north are Obviously, was a public. a which of couple CLO, core XX We going a number, originations, namely only Citi

And so is perspective, we we feel from our the a are market business leader.

leader capturing we nomenclature we a the used basis. conference insight peers of are these in that and all renaissance lot the of that's strategy, It conversations our market by but yield in Following seems on and into is there risk-adjusted feel many the a calls. like this rate about it's

So strategy. big change no in the

up pick tangents. to going So just X on I'm

platforms. platforms and is DRIP, We in at in on insurance owning in the a time. cost. platforms part their the view of and first are competitive inside Recall We this some generally in investors we the with what good. platform you they generally platforms do them, of stand-alone the And own ROE the I companies. way, would bear expense And start over quite as with There not generally -- point own institutional no a them. by of will, partnership, entities. are of expenses, may on AAA of cases, partnership the from these We it's ROEs time. people peer sizable bulk XXX% platform. own that XXX% The form is The earlier, suggested of

how So together. equity, didn't you think The part was the to the about synergy talk we see talk interesting can it's I of and works business equity. about

substantial income our first plan, our business, our business. envisions very plan on plan calls size X-year X-year plan and risk, Recall, the hybrid in also that lower forecast it in is But equity. equity X-year business, largest to the a Hybrid replacement. second for credit will Our between equity. but the penetration of of which lower midpoint substantially we already doubling contrast X-year the particularly as hybrid hybrid, of reward not hybrid equity. a being our a Think bank like being grow debt fixed

is teams responsible that is the Starting key business of the run. part a to the for measure holding that, way

important. we're team strategy case for and period presented good there to it the of report a And compelling I that the very I for where a very and very and believe that it starts. job of it's equity all so did the out and putting you, measuring card is shows a having in a over be franchise thought doing of key time, growth plank our a

Deutsche The is Brian from Bank. next question of Bedell coming

$XX on billion. origination back just Maybe the at

annualized, almost obviously years. $XXX X next is that's the And over your million. annum $XXX million You're goal per

any some than the And materially run has allocation change I your constraints How think third party, context the limit and been businesses, from exceed capacity as on significant might are might of higher get of just that this wanted XX% I you million different to rate? on going that, of XX% -- a So would origination $XXX you $XXX then goals exceeds kind up through parts those where there go, million any XX% level could if the of you you goals? and template Athene as that think how the if syndication. overage those about if those distribute

But is you and give the get at I Jim. of on before -- we're the -- also let not point color whole in guess business. X-year a give this this that, broad And the breadth. spread the I'd little It's Since -- going I'd I scale third-party our plan, more you. business me time. a in we're bit days terms like of little philosophy XX and a into thank to to number adjust Well, the

with of that syndication, on consistent This nothing. philosophy products, origination, of winding all architecture, these notion theme. expanding the and into partnerships very expanding the is -- evergreen the third all and of XX% footprint, The everything XXX% tie having

on the treasury in will have compression XX which in basis creating we're been very, we the year-to-date is spreads that color. over mid-XXXs which compression a give to of on origination has are stayed contributor, has a points XX in points spreads, found platform. XXX tightened and that of corporate nicely maybe you big public over the grown And origination of the and market have the a of last basis. over on products I XXX the What volatility bit the notwithstanding XX that credit, months, basis strong, have spread out approaching the spreads actual spreads very platforms,

to So over XXX, approximately XXX. XXX

today. credit the traditional compressed compression If about in add XX, we platforms, have more up, markets public are a we've of XXX About you were XX XXX compression. that the XXX we've in basis or points, bit got the year spread. so [indiscernible] points we the a like all had On And when -- ago, area. in we're XXX basis

terms our It's We're our corporation. will launch it's the ABC of of scaled asset-backed ASPC, of AAA, business. the the future. about feeding which ADS. feeding compelling, excited is proposition, value feeding So feeding in really all and so It's products in all

it insurance, presumptive don't want that on of underestimate estimate which would third-party our of the all it of scale, flywheel be think I but again, those. I of the impact to wealth, of of to touches syndication But ACS, expand of global

Worthington from Ken The JPMorgan next coming of is question Chase.

is think that are subsequent rates up to about enough how further fix what assets? we quarter? to we've engage in spreads rates move impact And called the using extent impact to hedges the move you does the higher quarter, the of seen the last end you floating the And backed as your XQ? to have Rates out that to

$XX plan, around maintain as net we So billion. are a is to rate position think, clear I floating our

had year. Investor our posture, our the the this in provided And And estimates X we're the we end so to change we hedge the of expectations, next recall rate rate equivalent and X another context you modeled what cuts or before cuts of certainly won't move-in within rates have from Day, we'd that of the year if seeing. X

back it think So realistic than ago. today that's looking I more was weeks a more month, X

on pretty real the of extreme the business in change. about obviously clear after hedge -- blended to earnings no growth and We're how change or no but [indiscernible] it's Ken, a of outlook. just component the affects we open moves growth, So were that rates and earnings, core

The next coming question from Ben of Barclays. is Budish

like taking little to went at guidance. If expected. ask least to looked you numbers, think guidance your street lower at unpack of And SRE a cost back it what When wanted better about I a than to in sort can unchanged. is bit I the look just of quarter, expected. then last QX, I little year your funds than came full

better perhaps this quarter, expected about thinking of is reversal of timing factors? there different or do sort differences? went any those So kind be some about How we thinking

Yes.

quarter. had we billion $XX a So

that very that's drove and earnings. So strong,

the as invest than through, metrics was better assets bit to spread we walked to be. expecting able were the margin. earn a that are on at sort the using that able at we it just Jim And were the margin to of also We

notes. I Day. or would really it's the said assuming year QX So you for on growth more X terms a components. dollars, that the That same less rate to to SRE we return QX at in mentioned those expect XX% get of We X% be X% Investor as the like-for-like.

top on So right we it's suggested. of what of sort

that and time. reported So quarter pulled larger no no growth real this top to change. in It's just we had a line through

next Fannon The from is question of Jefferies. coming Dan

on that a question. just follow-up So

services I changes retirement think allocation now So complete? alternative for mentioned to are you the represents AAA the X%.

Is that forward? should to we expecting what going that normalized given XX% performance. be AAA's getting therefore, So return

answer complete. are they is The yes, Yes.

provide some like around looks what -- So I'll today. portfolio and context the just

XX% Venerable. by is About services principally. about the a XX% -- of we retain, by Athora to So AAA. small that portfolio represented represented old And platforms exposure retirement is

generate time. investments sold investments or would And the The within other other quarter. type would the over platforms fund we have platform all been expect in third hybrid in returns XX% that the repositioned other the around typically teens is group

getting circa obviously sort in that have returns repositioning us. XX%, the So help that, behind will we of And we done believe XX% over that's to sustained time. a

from Cyprys Michael coming today final Our Stanley. question Morgan is of

the about car vehicle. hoping to new on so guys past, had talked could use taking time. XX% you your of update the ADP over I was of about us funds down site or you In XX%

a year-to-date, than it's that. think I bit less

update could out how you Athene years, of over curious couple just year see Just of million next relative guide a $XXX in toggling us ADP's you consistent in increase to what that factors dividends? the the of you scenario what And evolving your contribution on then might if dividend higher? consider you

fourth. that in that in we and Obviously, And over parameters, can are a make, within two. choices business we at growth growth aggregate, governed we're repositioning, to increase outlined business we've time. that different one. is make core There of to in of underlying participation the SRE as not couple that, choices capital we the product some is but or the that's relevant clear taking can ADP by the the pretty three. Back by Rates, established that or then it's contribution also has new the the book driven there decrease down And So relevant, level. just components.

are of able the we've part earnings that so how to growth And that's achieve outlined. we

will rate consistent think that be long-term participation with average. our I should the time, you of over expect

-- over an business participation think I So time. to high percentage of return sort as mid- XXs, appropriate in XX%

additional just it out I'll thoughts. just close X Maybe with

out can have in a change that on business. roughly it tied rather choice of is and growth, the we always a as long done scene. suggested, also organic any substantial in sidecar, over the it's not time vintage. In in creates own take of over gave know, The because a more that of growth the you period done amount business terms it And million does Martin basis, Athene growth be the has a of a year it retirement to is $XXX not giving we real as capital, which business to than that forecast out dividend services of you a deal-by-deal or the to

So immediately. something not it's change you can

This with falloff in do business, in to pay who the out us. asset a not the Athene I clients they expect. And the -- of Martin assume, in that Not to us books. fee pay think fees Athene pays, you for as pay real But is on they tried attractive retirement a very putting the the to sidecar, insurance the also do suggested, pay a we they the that question business we've have the point actually we absent sidecar. a on fronting that make be only dividend overall. of same it's on Athene in the worth which business same, promote do remains business the is should something management business, so fee services on hard the the terms

a And a a period on this of that time. so than will responsibly $X basis rates the belief generate long we will reflects put and high ability into we return billion of to sidecar a more responsible over use

If a you do you raise that, get to sidecar.

Cayman of is That that little the bit a totally you on subsidize. and that, to capital business regimes like and on the the places regimes build are different. your do don't we solely see you own forced If to U.S. and industry capital in in are other today. what hand recall capital the Bermuda with And the in X going

that hear personally of word I you just people time divide to is the a caution believe capital by to do believe our in end I going Any X. industry. have not Caymans, do should adequate gone intend long-term and it's rates the of business. sustainable provide where We not people on while a that basis, or the run return we business. things capital how well, in we for good having do you

would I this turn to Mr. for At the floor Gunn comments. time, you. Thank over closing to like back

really Great. business our I'd we Investor again, that and you've time of on to close today's saying the and focusing to behalf given us call. entire just Day on like our all by between team, appreciate,

follow directly, forward If look again. you have we us quarter. any follow-up feel you. questions to free discuss, with to you next on we speaking up anything with Thank and

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

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