Apollo Global Management, a U.S. investment and wealth management firm, reported record earnings from fees and commissions for the second quarter of this year, driven by an uptick in lending activities and an increase in assets under management.
The company stated in a release on Tuesday that it secured new investments totaling $61 billion during the second quarter, bringing its total assets under management to $840 billion. This figure surpassed analysts’ expectations, who had anticipated approximately $812 billion, according to estimates compiled by Bloomberg News.
Apollo’s stock experienced a 2.5% increase, reaching around $146. The acquisition of Radiant Partners, a subsidiary of Apollo specializing in asset management, contributed to an influx of funds for the company, enhancing commitments to investment-grade debt funds and asset-backed financing.
This surge in incoming cash flows bolstered Apollo Global’s earnings from fees, particularly in the context of its capital solutions strategy, which amounted to $627 million during the second quarter, achieving a record for quarterly earnings.
Additionally, private credit represented the majority of Apollo’s bond issuance activities in the second quarter, totaling $81 billion. Fees associated with the spread increased by 16%, reaching $821 million, as noted in the release.
These gains resulted in a 17% year-on-year increase in adjusted net income for the second quarter, amounting to $1.18 billion.
Jim Zelter, Apollo’s President, commented during a conference call with analysts on Tuesday:
“Our banking partnerships remain a vital aspect of our efforts to establish businesses,” adding that the firm plans to introduce several new products in areas such as asset-backed securities (ABS), private corporate credit, infrastructure, trade finance, real estate investment trusts, and junior capital by the end of the year.