Apollo Global Management
A permanent‑capital credit machine compounding through scale and origination
Apollo is a high‑growth, founder‑led alternatives platform that marries an asset‑light fee engine with a large, well‑capitalized retirement services business. The combination produces two durable earnings streams: Fee Related Earnings from third‑party AUM and Spread Related Earnings from Athene’s investment spread on long‑duration liabilities.
As of June 30, 2025 AUM reached 840 billion dollars, fee‑generating AUM 638 billion dollars, and quarterly records were set in both FRE and capital solutions fees, supported by 61 billion dollars of inflows and 81 billion dollars of origination in the quarter.
The August 2025 completion of the Bridge Investment Group acquisition adds roughly 50 billion dollars of real estate AUM, further broadening origination and product breadth.
Our quality view is anchored in multiple reinforcing moats: a cost of capital advantage from permanent insurance liabilities, a scaled origination ecosystem that sources private investment grade credit at volume, and a growing base of sticky perpetual capital in both wealth and institutional channels.
Capital strength is solid with A2/A/A ratings at the manager, A1/A+/A+/A+ at Athene, holdco cash of 2.4 billion dollars against 4.3 billion dollars of debt, and Athene’s consolidated RBC ratio of roughly 430 percent at year‑end 2024. Execution risk centers on credit cycle losses, regulation of pension risk transfers and reinsurance, and intense competition from peers in private credit.
Overall we view Apollo as a high‑quality compounding franchise we would like to own at a disciplined multiple of owner‑earnings.
Does Apollo Global Management have a strong competitive moat?
Apollo benefits from multiple reinforcing moats. First, a cost advantage from access to permanent and long‑duration liabilities at Athene enables scaled origination of private investment grade assets with attractive risk‑adjusted spreads.
Second, the firm has built a broad origination ecosystem and capital solutions capability that is hard to replicate and is increasingly integrated with wealth channels and perpetual vehicles.
Third, efficient scale and brand with 840 billion dollars of AUM and 638 billion dollars of fee‑generating AUM create operating leverage and client stickiness, with nearly 60 percent of total AUM and roughly 75 percent of fee‑generating AUM in perpetual capital.
Moat erosion risks include regulatory shifts that raise capital or reinsurance costs, and intensifying competition from other private credit leaders, but Apollo’s platform breadth and permanent capital base provide resilience.
Does Apollo Global Management have pricing power in its industry?
Pricing power is evidenced by record fee related earnings and margin expansion as higher management fees from fee‑generating AUM growth outpaced expense growth. FRE margin reached 57 percent in 2Q25 while capital solutions fees hit a record.
Apollo does not rely on headline fee hikes; instead it mixes into higher value strategies, semi‑liquid wealth products, and capital solutions that carry premium fees and economics. On the retirement side, spread earnings reflect asset yields and funding costs rather than pure pricing, so competitive pressures and falling rates can compress spreads.
Net‑net, we see healthy but not unconstrained pricing power, supported by product mix and scale.
How predictable is Apollo Global Management's business?
Apollo’s earnings are more predictable than a typical alternatives manager because two diversified streams drive results. Fee Related Earnings are recurring and tied to fee‑generating AUM, which is increasingly perpetual, while Spread Related Earnings are underpinned by Athene’s large, investment grade portfolio and disciplined ALM.
In 2Q25 Apollo reported 61 billion dollars of inflows in the quarter and 179 billion dollars over the last twelve months, and origination of 260 billion dollars LTM, supporting forward fee growth and spread deployment.
Risks to predictability include a credit downturn, lower alternative returns, and spread compression if risk‑free rates fall quickly, but the multi‑engine model and perpetual capital help smooth cycles.
Is Apollo Global Management financially strong?
Holdco shows a conservative balance sheet with 2.382 billion dollars of cash, 4.280 billion dollars of debt, and net balance sheet value of 2.608 billion dollars as of 2Q25. At the operating level, Apollo Asset Management carries A2/A/A ratings and Athene’s primary insurance subsidiaries carry A1/A+/A+/A+ across Moody’s, S&P, Fitch and AM Best.
Athene’s consolidated RBC ratio was approximately 430 percent at December 31, 2024, and available liquidity across the ecosystem is robust. Key risks include potential regulatory changes to reinsurance or capital that could raise equity needs, as well as adverse credit migration in invested assets during a severe downturn.
How effective is Apollo Global Management's capital allocation strategy?
Management has balanced reinvestment with returns to shareholders. Over the last twelve months through 2Q25 Apollo returned about 1.7 billion dollars to stockholders via dividends and opportunistic repurchases while allocating roughly 170 million dollars to strategic investments.
The firm repurchased more than 1.3 billion dollars of stock in the last twelve months, and completed the all‑stock acquisition of Bridge Investment Group to scale real estate. Dividend discipline continues with a 0.51 dollar quarterly payout.
We view the mix of internal growth, programmatic M&A in adjacencies, and buybacks to offset SBC as shareholder‑friendly.
Does Apollo Global Management have high-quality management?
Founder‑CEO Marc Rowan extended his employment agreement for five years and became Chair in April 2025, aligning long‑term stewardship with strategy.
Jim Zelter was elevated to President of Apollo Global Management, and John Zito to Co‑President of Apollo Asset Management alongside Scott Kleinman, clarifying succession and deepening operational leadership. Apollo’s governance now includes one share one vote and a largely independent board.
The leadership bench and culture built around origination and risk management are clear strengths.
Is Apollo Global Management a quality company?
Apollo Global Management is a good quality company with a quality score of 88/100
- Two engines, one platform: fee earnings compounding on growing fee‑generating AUM plus insurance spread earnings supported by strong capital and ratings.
- Scaled origination advantage in private investment grade credit drives differentiated deployment and capital solutions fees across cycles.
- High share of perpetual capital increases predictability and reduces reliance on cyclical fundraising.
- Founder‑led with clear succession and governance improvements, including CEO contract extension and elevation of senior operators.
- Key risks to watch: litigation and regulatory scrutiny of pension risk transfers, potential changes to insurance capital regimes, and competition from other private credit leaders.
What is the fair value of Apollo Global Management stock?
Is Apollo Global Management a good investment at $145?
The following analysis is provided for informational and educational purposes only. It does not constitute financial advice, investment advice, or a recommendation to buy or sell any security. The opinions expressed are based on publicly available information and historical data. Beanvest and its contributors may hold positions in the securities mentioned. Investors should conduct their own due diligence or consult a licensed financial advisor before making any investment decision.