Investing In Apollo Global Management: A Comprehensive Guide

Apollo Global Management, Inc. (NYSE: APO) is an American asset management firm that primarily invests in alternative assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, $99 billion in private equity, and $46.2 billion in real assets. The company has a presence in 26 cities across North America, Europe, and Asia, with its headquarters in New York City.

Apollo's investment strategies focus on three areas: yield, hybrid, and equity. The company's retirement services business, Athene, provides retirement savings products to help clients achieve financial security.

Apollo Global Management is a leading provider of alternative asset management and retirement solutions, empowering retirees and building stronger businesses through innovative capital solutions.

Apollo Global Management's investment strategies: yield, hybrid, and equity

Apollo Global Management is an American asset management firm that primarily invests in alternative assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, $99 billion in private equity, and $46.2 billion in real assets.

Apollo's investment strategies can be broadly categorized into three types: yield, hybrid, and equity.

Yield

Apollo Global Management's yield strategy involves investing in credit and fixed-income markets. This includes mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations. By investing in these areas, Apollo seeks to provide excess returns to its clients while managing the risk-reward spectrum.

Hybrid

Apollo's Hybrid Value business provides flexible and creative capital solutions to companies and shareholders. The Hybrid Value team works with entrepreneurs, management teams, and private equity sponsors to deliver debt and equity capital solutions. They aim to fill the gap between traditional debt and equity by providing capital to founders seeking to transform their businesses without giving up control.

Equity

Apollo's equity strategy is centered around private equity investments, which have been a cornerstone of the company for over 30 years. Apollo's private equity funds primarily invest in three types of transactions:

• Majority ownership in privately-held or public companies that may be better served under private ownership.
• Acquisition of standalone assets that were previously part of a corporation.
• Established companies that require support in restructuring their balance sheets.

Apollo's private equity platform supports businesses in their growth and transformation journeys, providing innovative capital solutions and adding value throughout the investment lifecycle.

The company's retirement services business, Athene

Athene, the retirement services business of Apollo Global Management, was founded in 2009. In 2021, Apollo Global Management announced it would merge with Athene in an $11 billion all-stock deal. The merger was expected to be completed in January 2022.

Apollo Global Management has been receiving lucrative fees from Athene for over a decade. The company provides asset allocation services and directly manages a portion of Athene's assets across its investment platform, primarily in its ever-expanding credit business.

Athene serves as Apollo's partner insurance company and had total assets worth $202.8 billion at the end of 2020, with operations in the United States, Bermuda, and Canada.

Athene provides a suite of retirement savings products to help clients achieve financial security. Through Athene, Apollo specializes in helping clients achieve financial security by providing a range of retirement savings products and acting as a solutions provider to institutions.

Athene's shares underperformed the insurance sector following its stock market debut in 2016, prompting a bid from Apollo for its assets. The merger was expected to result in enhanced earnings potential and a simpler ownership structure for both parties.

Apollo's alternative asset management

Apollos' alternative asset management business seeks to provide clients with excess returns at every point along the risk-reward spectrum from investment grade to private equity. The company's focus is on three investing strategies: yield, hybrid, and equity.

Apollo Asset Management invests across Credit, Equity, and Real Assets ecosystems in a wide range of asset classes and geographies, with a significant focus on the private investment grade and fixed-income markets.

Apollo is a leading provider of alternative asset management and retirement solutions. The company helps build and finance stronger businesses through innovative capital solutions that can generate excess risk-adjusted returns and retirement income.

Apollo has a significant focus on the private investment grade and fixed-income markets. The company's retirement services business, Athene, provides a suite of retirement savings products to help clients achieve financial security.

With a presence across North America, Europe, and Asia, Apollo is well-positioned to serve its clients globally and provide them with best-in-class investment experiences.

The company's private equity deals

Apollo Global Management, Inc. is an American asset management firm that has been investing in alternative assets since its inception in 1990. As of 2022, the company had $99 billion invested in private equity, making up a significant portion of its $548 billion of assets under management.

Apollo's private equity platform supports businesses in their growth and transformation journeys, with a focus on providing bespoke, innovative capital solutions. The company's flexible and vast platform allows it to support portfolio companies throughout the entire lifecycle of an investment.

• Yahoo!: One of Apollo's most notable private equity deals is its investment in Yahoo!, one of the most iconic brands in internet history. Apollo's private equity team is working to reinvigorate the brand and help it regain its former glory.
• Brightspeed: In 2021, Apollo Private Equity Funds acquired Lumen Technologies' ILEC assets and associated operations to create Brightspeed Internet, with the goal of bridging the digital divide.
• Sun Country Airlines: Apollo Private Equity worked with Sun Country Airlines to grow its business during the unprecedented challenges faced by the airline industry.
• Executive Life Insurance Company: One of Apollo's earliest and most successful deals involved the acquisition of Executive Life Insurance Company's bond portfolio. This deal resulted in significant profits for Apollo when the value of high-yield bonds recovered.
• Realogy: In 2007, Apollo acquired Realogy, a franchisor that owns Coldwell Banker, Century 21, and Sotheby's International Realty, for $8.5 billion. Apollo sold its investment in 2013, making a profit of $1.3 billion.
• Norwegian Cruise Line: Apollo invested $1 billion in Norwegian Cruise Line in 2008 to support a recapitalization of the company's balance sheet. The company cashed out of this investment in 2018.
• Chuck E. Cheese's: In 2014, Apollo acquired Chuck E. Cheese's for about $1 billion and owned the company until 2020, when it was purchased by Monarch Alternative Capital.
• Shutterfly and Snapfish: In 2019, Apollo announced the acquisition of Shutterfly for $2.7 billion and its competitor, Snapfish, in a separate transaction valued at around $300 million.
• Tech Data Corp.: In 2019, investment funds managed by Apollo acquired Florida-based Tech Data Corp. from Warren Buffett's Berkshire Hathaway for $5.4 billion.
• Yahoo! (Again): In September 2021, investment funds managed by Apollo acquired a 90% stake in Yahoo!, marking a significant investment in the iconic internet company.

These are just a few examples of Apollo's private equity deals, demonstrating its active role in investing in and supporting businesses across various industries.

Apollo's approach to investing

Apollos's Approach to Investing

Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. As of 2022, the company had $548 billion in assets under management, including investments in credit, private equity, and real assets. The company's investment strategy focuses on three main areas: yield, hybrid, and equity.

Credit Investments

Apollo invests a significant portion of its assets in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations. The company provides innovative capital solutions to businesses and seeks to generate excess risk-adjusted returns. Apollo's credit platform offers a suite of financing solutions and investment strategies, focusing on purchase price and disciplined underwriting.

Private Equity Investments

Apollo has a long history of private equity investments, with a focus on providing bespoke capital solutions to portfolio companies. The company's flexible and vast platform enables it to add value throughout the lifecycle of an investment. Apollo works in partnership with management teams to build and transform businesses, embracing complexity and striving for compelling opportunities.

Real Assets Investments

Apollo's real assets investments include real estate and infrastructure. The company's real assets platform spans multiple geographies and invests across the risk spectrum through various specialties. One notable example is its joint venture with New Fortress Energy, forming Energos Infrastructure, a maritime platform providing critical energy infrastructure globally.

Retirement Solutions

Apollo's retirement services business, Athene, provides a suite of retirement savings products to help clients achieve financial security. The company aims to empower retirees and provide them with investment income and retirement savings. Apollo takes a disciplined and responsible approach to drive positive outcomes for retirees.

Sustainability Focus

Apollo is committed to driving a more sustainable future and has published annual sustainability reports to showcase its progress. The company integrates financially material ESG considerations into its processes and was named 'ESG Private Debt Firm of the Year' in 2023 by New Private Markets.

In summary, Apollo Global Management takes a patient, creative, and rigorous approach to investing, seeking to generate excess returns for its clients across various asset classes and investment strategies. The company's fully integrated platform enables it to provide innovative capital solutions and drive growth for the businesses it invests in.

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