Record fee earnings, deals drive Apollo's second quarter
A strong quarter for dealmaking, retirement services and credit extension to middle market and large corporations helped power a better than expected quarter from Apollo Global Management (APO).
Fee-related earnings of $300 million marked a record for the company, driven mostly by transactions in the company's credit business. The results represented a 16% year-over-year increase and 5% quarter-over-quarter improvement.
On the private equity side of the business, management fees fell 4% year-over-year as Apollo said it saw realizations and distributions from its legacy funds.
[Disclosure: Apollo Global Management is in the process of acquiring Verizon Media, the parent company of Yahoo Finance.]
Here is how Apollo Global Management performed compared to Wall Street analyst estimates for the second quarter. Estimates are compiled by Bloomberg analysts' consensus:
Total Revenue: $1.09 billion vs. $680 million
Adjusted Diluted EPS: $1.14 vs. $0.73
"It was a terrific second quarter," Apollo Global Management co-president and CIO Jim Zelter said on Yahoo Finance Live. "I think if you look at our full announcement and the report, you'll see that not only did we execute in terms of very, very strong returns, exceptional deployment and exceptional fund-raising from all of our channels, a lot of strategic transactions were done in the quarter."
The company called out that it has $47.6 billion in cash available for investment. Some of that is being put to use this week. Apollo announced a $7.5 billion deal for a large chunk of assets from telecom Lumen Technologies.
Zelter also said Apollo is eyeing the launch of Fund X in early 2022.
Shares of Apollo Global Management are up 24% year-to-date, outperforming the S&P 500's 17% gain.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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