Apollo reports strong second-quarter earnings thanks to asset sales

Apollo reports strong second-quarter earnings thanks to asset sales

- Apollo Global Management Inc said on Wednesday its second quarter distributable earnings more than doubled thanks to a surge in profits from asset sales in its private equity, credit and real estate businesses.

The result, which beat estimates, was the first full quarter of Apollo reported with co-founder Marc Rowan serving as CEO. He replaced Jeffrey Epstein, who relinquished control of the firm in March following a review of his ties to the late financier and convicted sex offender Leon Black.

New York-based Apollo's distributable earnings, which represents the cash for paying dividends to shareholders, rose to $501.6 million from $205.2 million posted a year ago.

That resulted in a distributable earnings per share of $1.14, ahead of a refinancial consensus estimate of 71 cents.

The Apollo Board said it invested $27.8 billion during the quarter, mostly in its credit and private equity investments. It also ended investments worth $9 billion, mainly in its holdings of private and public companies.

Rivals Blackstone Group Inc, Carlyle Group Inc and KKR Co Inc have also reported strong second quarter results, as buoyant private markets and rebounding economic growth allowed private equity firms to buy investment.

Apollo said its structured equity funds rose during the quarter by 9.5%, while its private credit and corporate credit funds rose 2% and 4.5% respectively. With comparison, private equity funds managed by Blackstone, Carlyle and KKR grew 12%, 13.8% and 9% respectively.

Under generally accepted accounting principles Apollo reported a net income of $648.6 million, up 48% from a year ago, driven by increase in gains from investment activities.

Apollo ended the quarter with $471.8 billion in unaccounted assets and $47.6 billion in managed capital. It raised $12 billion in new capital and declared a quarterly dividend of 50 cents per share, unchanged from the previous quarter.