Key Takeaways
- • Apollo Global Management reported $53 billion in third-quarter inflows, pushing assets under management to $1.07 trillion, according to Reuters.
- • Fee-related earnings grew 23% in the third quarter on record quarterly fee-related revenue and margin expansion, while AUM rose 18% year over year.
- • Origination reached $114 billion, up 52% from the year-ago period, with gross capital deployment up about 18%.
- • Apollo posted a GAAP loss of $1.06 billion driven by non-cash unrealized mark-to-market losses as interest rates remained elevated; adjusted net income excluding notable items was $2.15 per share versus $2.14 a year earlier.
- • Apollo shares fell 3.5% in early trading and are down 17.5% in 2026, though they have outperformed peers Blackstone, Ares and KKR year to date.
Summary
Fee-related earnings (FRE) rose 23% in the quarter, supported by record quarterly fee-related revenue and margin expansion. AUM grew 18% from a year earlier. Gross capital deployment climbed about 18% in the third quarter, and origination, which reflects the availability of attractive investment and lending opportunities, reached $114 billion, up 52% from the year-ago period.
The company posted a GAAP loss of $1.06 billion, which the company attributed to unrealized mark-to-market losses as interest rates remained elevated. Reuters noted these are non-cash accounting adjustments that do not reflect the underlying performance of the business. Adjusted net income excluding notable items was $2.15 per share for the three months ended September 30, compared with $2.14 per share a year earlier. Analysts at Evercore ISI, led by Glenn Schorr, described the quarter as mixed, with FRE somewhat better and spread-related earnings somewhat worse.
Jim Zelter, President at Apollo Global, said the firm is seeing historic capital investment across infrastructure, energy, defense, manufacturing and compute, creating significant opportunity for its origination businesses. CEO Marc Rowan has pledged to increase transparency and liquidity for private assets as valuations for typically illiquid assets have come under scrutiny across the sector.
Apollo shares fell 3.5% in early trading and are down 17.5% in 2026, though they have performed better than peers Blackstone, Ares Management and KKR as of the last close. Alternative asset manager stocks sold off earlier in the year amid a private credit selloff following a surge in investor withdrawals from funds, and questions persist over liquidity and the pace of dealmaking.
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