Key Takeaways
- • Apollo Global Management reported USD 53 billion in third-quarter inflows, lifting assets under management to USD 1.07 trillion, up 18% year over year, as demand for private credit, insurance and other alternative investments grew.
- • Origination reached USD 114 billion in the quarter, a 52% increase from the prior-year period, while gross capital deployment rose approximately 18%.
- • Fee-related earnings rose 23% on higher fee-related revenue and improved margins, though Apollo posted a GAAP net loss of USD 1.06 billion driven by non-cash mark-to-market adjustments tied to elevated interest rates.
- • Adjusted net income was USD 2.15 per share versus USD 2.14 a year earlier; Evercore ISI characterized the quarter as mixed, with fee-related earnings ahead of expectations and spread-related earnings weaker.
- • Shares fell 3.5% in early trading after the results and were down 17.5% year to date in 2026, though they outperformed peers including Blackstone, Ares Management and KKR.
Summary
Apollo Global Management reported USD 53 billion in third-quarter inflows, taking its assets under management (AUM) to USD 1.07 trillion, according to Reuters. The New York-based asset manager attributed the growth to sustained demand for private credit, insurance and other alternative investments. AUM rose 18% from the year-ago period, and fee-related earnings (FRE) increased 23% during the quarter, supported by higher fee-related revenue and improved margins.
Origination reached USD 114 billion, a 52% increase compared with the same period last year, while gross capital deployment rose approximately 18% in the third quarter. Origination reflects the investment and lending opportunities the company identifies. Apollo President Jim Zelter said the firm is seeing increased capital investment across infrastructure, energy, defence, manufacturing and computing, with companies committing substantial capital to these sectors and creating opportunities for Apollo's origination businesses.
Despite the inflows and earnings growth, Apollo reported a GAAP net loss of USD 1.06 billion. The company said the loss was driven by unrealised mark-to-market adjustments as interest rates remained elevated, and that these non-cash accounting losses did not directly reflect underlying operating performance. Adjusted net income, excluding notable items, was USD 2.15 per share for the third quarter, compared with USD 2.14 per share a year earlier. Analysts at Evercore ISI described the results as mixed, noting that fee-related earnings beat expectations while spread-related earnings were weaker, with mixed performance across key operating indicators.
The broader alternative investment sector continues to face questions about liquidity and the pace of dealmaking. CEO Marc Rowan has committed to improving transparency and liquidity for private assets as investors scrutinize valuations of assets that are not easily traded. Apollo shares fell 3.5% in early trading following the results and were down 17.5% in 2026 as of the prior session's close, though the stock has performed better than peers including Blackstone, Ares Management and KKR. Alternative asset managers faced pressure earlier in the year after a selloff in private credit accompanied rising investor withdrawals from funds.
Apollo also declared a quarterly cash dividend of USD 0.5625 per common share, payable November 30, 2026, to shareholders of record by November 18, 2026, subject to board discretion. Apollo's expansion from its origins as a private equity firm in 1990 into credit and insurance has broadened its exposure to alternative investments, and its performance will depend on its ability to attract capital while managing liquidity, valuations and returns.
Origination reached USD 114 billion, a 52% increase compared with the same period last year, while gross capital deployment rose approximately 18% in the third quarter. Origination reflects the investment and lending opportunities the company identifies. Apollo President Jim Zelter said the firm is seeing increased capital investment across infrastructure, energy, defence, manufacturing and computing, with companies committing substantial capital to these sectors and creating opportunities for Apollo's origination businesses.
Despite the inflows and earnings growth, Apollo reported a GAAP net loss of USD 1.06 billion. The company said the loss was driven by unrealised mark-to-market adjustments as interest rates remained elevated, and that these non-cash accounting losses did not directly reflect underlying operating performance. Adjusted net income, excluding notable items, was USD 2.15 per share for the third quarter, compared with USD 2.14 per share a year earlier. Analysts at Evercore ISI described the results as mixed, noting that fee-related earnings beat expectations while spread-related earnings were weaker, with mixed performance across key operating indicators.
The broader alternative investment sector continues to face questions about liquidity and the pace of dealmaking. CEO Marc Rowan has committed to improving transparency and liquidity for private assets as investors scrutinize valuations of assets that are not easily traded. Apollo shares fell 3.5% in early trading following the results and were down 17.5% in 2026 as of the prior session's close, though the stock has performed better than peers including Blackstone, Ares Management and KKR. Alternative asset managers faced pressure earlier in the year after a selloff in private credit accompanied rising investor withdrawals from funds.
Apollo also declared a quarterly cash dividend of USD 0.5625 per common share, payable November 30, 2026, to shareholders of record by November 18, 2026, subject to board discretion. Apollo's expansion from its origins as a private equity firm in 1990 into credit and insurance has broadened its exposure to alternative investments, and its performance will depend on its ability to attract capital while managing liquidity, valuations and returns.
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