Apollo Global Management Inc at UBS Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brennan Hawken - UBS Investment Bank - Analyst : So we'd love to start, Martin, with ACS. The origination capabilities at Apollo are really a clear differentiator. And so I want to spend a bit of time on that. The growth has been really robust in recent quarters, a lot of origination activity. So what's the best way to think about forecasting those revenues? And given the optimism around investment banking recovery, January off to a bit of a slower start than we hoped. But is that an accelerant to the business? Or is it increased competition?

Question: Brennan Hawken - UBS Investment Bank - Analyst : Yeah. With the Investor Day target, I believe, for origination was $275 billion. Out -- 2024 was $222 billion, right? So what's the way to think about the growth in that origination number? Are you like overachieving right now on the volume side? Or was the target conservative? And then it looked like from the graphic in the Investor Day that core credit, a big part of the growth. So how should we think about the variability of the economics in the different sources of the ACS volume?

Question: Brennan Hawken - UBS Investment Bank - Analyst : Right. Okay. So FRPR, you guys have had some really good success in growing the wealth products ADS and AAA in particular. So as those products ramp and what's the best way to think about FRPR growth? And then how do we think about profitability or comp ratio on those revenues? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 2:40PM, APO.N - Apollo Global Management Inc at UBS Financial Services Conference

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. Got it. Also related to wealth, distribution costs were sort of a big theme, particularly in the back half of last year. What's the best way to think about that? Is it an industry shift that's happening? Is it just a few platforms? So what's the right way to think? And I believe you all opted for the trailer structure versus the upfront, so why is that more compelling from Apollo's perspective?

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. Yeah. Got it. And then last on FRE. So what are the best ways to think about the variability in the 15% to 20% growth expected here this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 2:40PM, APO.N - Apollo Global Management Inc at UBS Financial Services Conference

Question: Brennan Hawken - UBS Investment Bank - Analyst : Right. Okay. Well, given the clear secular tailwinds behind Apollo, fundraising is always a big topic, right? So you're targeting to quintuple your AUM and wealth by 2029. I think I used that right term.

Question: Brennan Hawken - UBS Investment Bank - Analyst : So you laid out some of the components, right, foundations, scaling the client base and new frontiers is the big pieces there. So what do you expect to be the dominant driver? And maybe could you give us a little color around each of those?

Question: Brennan Hawken - UBS Investment Bank - Analyst : And we touched on before the success you guys have had recently with ADS and AAA. So they've grown really rapidly. We've seen a strong acceleration. How do you replicate that success with some of the other products that you touched upon?

Question: Brennan Hawken - UBS Investment Bank - Analyst : Yeah. I'd love to touch on the regulation and the new administration, that's been a big theme, of course.

Question: Brennan Hawken - UBS Investment Bank - Analyst : Yes. So how should we think about new policy from the current administration and how it would impact Apollo? And more specifically, have you had any preliminary discussions around various regulatory hurdles on private assets within defined contribution plans? Trump 1.0, right, he signed, I want to say, an executive order, the lack of permanence of those, but -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 2:40PM, APO.N - Apollo Global Management Inc at UBS Financial Services Conference

Question: Brennan Hawken - UBS Investment Bank - Analyst : It's a clear signal, though --

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. And you think labor is a reasonable pathway for that?

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. All right. Can't really have a conversation with you without touch on SRE. And so --

Question: Brennan Hawken - UBS Investment Bank - Analyst : Right. On the way to 50% though, so. But rates have moved around a lot and so how have those changes impacted how you're thinking about your outlook for 2025 and the $3.5 billion? How many rate cuts did you guys bake into that outlook? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 2:40PM, APO.N - Apollo Global Management Inc at UBS Financial Services Conference

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. And I do want to see if there's questions from the audience, but a couple of more here first before we do that. So on capital, the capital framework is targeting reducing shares outstanding to 600 million. What time frame do you think you need to hit that?

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. And you just touched on $7 billion of that for investing in the business and driving growth. But you also suggested it wasn't certain, right? So what factors should we consider when we think about the use of that capital? And based on what you can see today, is there any likelihood that you would pin on whether or not you're going to need that full $7 billion, or it be allocated elsewhere? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 2:40PM, APO.N - Apollo Global Management Inc at UBS Financial Services Conference

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. Got it. I don't know if there are any questions in the room, but we can pause and see if anyone has anything from Martin. I have more. There's plenty more to go, but figured I'd open it up. Okay. All right.

Question: Brennan Hawken - UBS Investment Bank - Analyst : There we go. We keep going. Yeah. We touched -- you touched on this a little before when you were touching on capital, but ADIP is something that I'd love to touch on. At Investor Day, you laid out a target to double Athene's gross invested assets over the next five years. So what's the expectation for how much of that is capitalized on balance sheet versus using the third-party capital? And when we think about that mix, how does that impact the economics for Apollo?

Question: Brennan Hawken - UBS Investment Bank - Analyst : At the recent pace?

Question: Brennan Hawken - UBS Investment Bank - Analyst : And there's no constrain around third-party capital or anything, that investors have done -- had a good return in ADIP so you'd expect --

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. And then also thinking about the insurance operations, right? So what are your expectations for the primary sources of third-party and then retirement solutions fundraising as we move through 2025?

Question: Brennan Hawken - UBS Investment Bank - Analyst : And we haven't seen with rates coming down, any impact on annuity demand or the flow there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 2:40PM, APO.N - Apollo Global Management Inc at UBS Financial Services Conference

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. Pretty stable, got it. Okay. During Athene's third quarter call, I know we'll get Athene's fourth quarter call later this week, but they spoke to different products, attractiveness in different rate cycles. So given the rate outlooks currently and the expectations. Are there any expectations where certain products might become more or less attractive? And what would you -- how would you expect that to shift in the coming years?

Question: Brennan Hawken - UBS Investment Bank - Analyst : Okay. So more of the same sort of --

Question: Brennan Hawken - UBS Investment Bank - Analyst : Yeah. All right. We'll turn one more time to check on the audience here. Any questions here before we wrap? No? All right. Well, Martin, thanks for your time. Really appreciate it.