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APOLLO
Apollo Global Management, LLC Reports Fourth Quarter and Full Year 2015 Results
Apollo Adopts Plan to Repurchase $250 Million of Shares
New York, February 3, 2016-- Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, "Apollo") today reported results for
the fourth quarter and full year ended December 31, 2015.
"During 2015 the funds we manage generated inflows of nearly $24 billion and deployed more than $13 billion, which we believe demonstrates the power of
Apollo's integrated global platform amid a volatile market backdrop," said Leon Black, Chairman and Chief Executive Officer of Apollo. "In addition, since we
do not believe the current share price of Apollo reflects the strength of our business model and growth opportunities, today we announced the adoption of a $250
million share repurchase plan. This repurchase plan highlights the confidence we have in our business and our ongoing commitment to delivering value to Apollo's
shareholders."
Apollo issued a full detailed presentation of its fourth quarter and full year ended December 31, 2015 results, which can be viewed through the Investor Relations
section of Apollo's website at http://ir.agm.com.
Share Repurchase Plan
Apollo has adopted a plan to repurchase up to $250 million in the aggregate of its Class A shares, including up to $150 million in the aggregate of its outstanding
Class A shares through a share repurchase program and up to $100 million through a reduction of Class A shares to be issued to employees to satisfy associated
tax obligations in connection with the settlement of equity-based awards granted under the Company's equity incentive plan. Under the share repurchase program,
shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise, with the size and timing of these
repurchases depending on legal requirements, price, market and economic conditions and other factors.
Distribution
Apollo has declared a fourth quarter ended December 31, 2015 cash distribution of $0.28 per Class A share. This distribution will be paid on February 29, 2016
to holders of record at the close of business on February 19, 2016. Apollo intends to distribute to its shareholders on a quarterly basis substantially all of its
distributable earnings after taxes and related payables in excess of amounts determined by its manager to be necessary or appropriate to provide for the conduct
of its business. However, Apollo cannot assure its shareholders that they will receive any distributions in the future.
Conference Call
Apollo will host a conference call on Wednesday, February 3, 2016 at 10:00 a.m. Eastern Time. During the call, members of Apollo's senior management team
will review Apollo's financial results for the fourth quarter and full year ended December 31, 2015. The conference call may be accessed by dialing (888) 868-4188
(U.S. domestic) or +I (615) 800-6914 (international), and providing conference call ID 4425452 when prompted by the operator. The number should be dialed
at least ten minutes prior to the start of the call. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be
accessed through the Investor Relations section of Apollo's website at http://itagrn.com.
Following the call, a replay of the event may be accessed either telephonically or via audio webcast. A telephonic replay of the live broadcast will be available
approximately two hours after the live broadcast by dialing (800) 585-8367 (U.S. callers) or +1 (404) 537.3406 (non-U.S. callers), passcode 4425452. To
access the audio webcast, please visit Events in the Investor Relations section of Apollo's website at http://itagm.com.
EFTA00623358
2015 Schedule K-1 Distribution
The 2015 schedules K-I will be available on or about March 15, 2016 and can be accessed via vnvw.partnerdatalink.com/Apollo. Shareholders can visit this site
now to register to be notified when the 2015 schedules K-I are available to be downloaded. Please note that the income, gain, loss, deduction, or credit reported
to you on schedule K-I is independent of the annual cash generated and the annual cash distributions made by Apollo. As a partnership for U.S. federal income
tax purposes, investors in Apollo are required to report their share of the income, gain, loss, deduction, or credit that is allocated to them from Apollo. The U.S.
federal taxable income of Apollo is determined by using the applicable U.S. federal income tax rules, and these amounts may vary from year to year depending
on the nature of the income of Apollo and the activity of its subsidiaries.
About Apollo
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt,
Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management ofapproximately $ I 70 bil lion as of December 31,
2015 in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For
more information about Apollo, please visit www.agm.com.
Forward-Looking Statements
In this press release, references to "Apollo," "we," "us," "our" and the "Company" refer collectively to Apollo Global Management, LLC, together with its
consolidated subsidiaries. This press release may contain fonvard looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo's
expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis.
These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When
used in this press release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify fonvard-looking
statements. Although management believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that these
expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to our dependence
on certain key personnel, our ability to raise new private equity, credit or real estate funds, market conditions, generally, our ability to manage our growth, fund
performance, changes in ow regulatory environment and tax status, the variability of our revenues, net income and cash flow, ow use of leverage to finance our
businesses and investments by our funds and litigation risks, among others. We believe these factors include but are not limited to those described under the section
entitled "Risk Factors" in Apollo's annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 27, 2015, as such
factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should
not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in other filings.
We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise,
except as required by applicable law. This press release does not constitute an offer of any Apollo fund.
Investor and Media Relations Contacts
Gary M. Stein
Head of Corporate Communications
Apollo Global Management, LLC
Noah Gunn
Investor Relations Manager
Apollo Global Management, LLC
Charles Zehren
Rubenstein Associates, Inc. for
Apollo Global Management, LLC
2
EFTA00623359
Apollo Global Management, LLC
Fourth Quarter and Full Year 2015
Earnings
February 3, 2016
EFTA00623360
Assets Under
Management
Business
Drivers
Apollo 4Q15 a
sults Highlig
A P O I I. 0
Distributable
Earnings •
GAAP &
Economic
Earnings
(S in millions, except per share data)
4Q'15
Per Share
FY'15
Per Share
• GAAP Net Income
$6.1
$0.02
$134.5
$0.61
• Economic Net Income ("ENI")
$32.9
$0.08
$385.1
$0.96
• Management Business ("MB") Economic Income ("El")
$50.6
$0.13
$313.9
$0.78
• Incentive Business ("IB") Economic Income (Loss)
($19.7)
($0.05)
$81.8
$0.20
(S in millions, except per share data)
4Q'15
Per Share
FY'15
Per Share
• Distributable Earnings After Taxes and Related Payables
$127.2
$0.31
$613.1
$1.50
• Management Business Distributable Earnings
$115.1
$0.28
$427.2
$1.04
Incentive Business Distributable Earnings
$15.5
$0.04
$195.6
$0.48
Declared 4Q115 distribution of $0.28 per Class A share (payout ratio of 90%), bringing FY'15 distributions
to $1.38 per Class A share (payout ratio of 92%)
• Total Assets Under Management ("AUM") of $170.1 billion
• Fee-Generating AUM ("FGAUM") of $138.1 billion
• Carry-Eligible AUM ("CEAUM") of $82.4 billion and Carry-Generating AUM ("CGAUM") of $26.9
billion
• Dry powder of $26.1 billion available for investment
• Inflows: $12.3 billion of capital inflows ($23.7 billion FY'15)
• Deployment: $4.1 billion invested ($13.1 billion FY'15)
• Realizations: $1.9 billion of capital returned to investors ($8.5 billion FY'15)
• Performance: Traditional Private Equity Fund Depreciation -2.0%; (-0.2% FY'15)
Total Credit Gross Return(I) -1.2% (+1.3% FY'15)
Now: Mir presentation contains non-GAAPlionamial information and defined town Odd, arc described on pages 27 to 30.
Represents total credit gross return. excluding assets managed be Athene Asset Management. LE ("AAM) that are not dire* invested in Apollo funds or sub.athised by Apollo. Total credit net return vat M0% for 405 and
0.3%Jor FE 15.
EFTA00623361
Economic Earning
•
APOLLO
Management Business
S in thousands. except per share data
4()114
Management Fees
Advisory and Transaction Fees from Affiliates, nett'[
Carried Interest Income from Affiliates
$220,643
67,909
$226,758
$233,149
9,276
10,620
9,285
Management Business Revenues
299,172
245,319
Salary, Bonus and Benefits
Equity-Based Compensation'''
Other Expenses
77,661
94,110
19,149
14,938
61,483
54,412
Management Business Expenses
158,293
163,460
Other Income (Loss)
30,582
Management Business Economic Income
$171,461
Per Share
Management Business El Excluding Reserve)
Per Share
(2,579)
$79,280
(20,083)
9,751
222,817
84,577
16,772
69,016
170,365
(1,875)
$50,577
$0.43
$0.20
$0. 13
$95,577
$0.24
Carried Interest Income (Loss)
Profit Sharing Expense
Other Income (Loss)14)
($5,088)
($63,856)
11,500
(11,993)
(12,256)
77,777
Incentive Business Economic Income (Loss)
Per Share
($28,844)
$25,914
($0.07)
$0.06
Economic Income
S142.617
5105.194
Per Share
$0.36
$0.26
Taxes
(36,498) am (1,156)
Economic Net Income
$106,119
S104,038
Per Share
Economic Income Excluding Reserve"'
Per Share Excluding Reserve)
50.26
$0.26
($32,175)
(5,680)
6,779
($19,716)
($0.05)
$30,861
$0.08
2,027
$32,888
$0.08
$75,861
$0.19
Fr14
FV115
$901,024
$911,893
316,082
14,186
41,199
40,625
1,258,305
966,704
339,846
355,922
105,495
62,184
243,207
230,745
688,548
648,851
29,115
(3,990)
$598,872
$313,863
$1.50
$0.78
$358,863
$0.89
$365,322
S56,665
264,908
86,031
55,765
111,160
$81,794
$156,179
$0.39
$0.20
$755,051
$395.657
$1.89
$0.98
(185,587)
$569,464
(10,518)
$385,139
$1.42
$0.96
$440,657
$1.09
(f) Includes monitoring fees from Athena. Skirling Ltd. ( -AMene !folding- and toga her with im subsidMries. "Athene -) of $58.6 million and 52264 million for
$
and FY W.
rtiperthdy,
(2) Included in FT
'Id is $416 million in tonmm.tion with the departure of en I.:reclean, oekvn
(3) Excludes impact of reserve of 545 million (rented in connection with an ongoing SEC regulatory matter pmiously disclosed in our third quarter 2015 Form 10.Q principally concerning the acceleration offers from fiord portfolio
companies.
(4J Includes gain on directs/pan, held itrAtheor of S92.2 million. St 6J million and S138.8millkm for 3Q'15. 4Q'
f3 and F1"
t3. mapecfimdy
2
EFTA00623362
Distributable Ea
APOLLO
S in thousands. exceptive share data
Incentive Business
Management Business Economic Income
Less: Non•Cash Revenues())
Add Back: Equity•Based Compensation
Add Back: Depreciation, Amortization and Other
Management Business Distributable Earnings
Per Share
4Q'14
$171,461
(91,648)
19,149
2,497
$101,459
$0.25
$79,280
(842)
14,938
2.606
$95,982
$0.24
$50,577
(842)
16,772
48,569
$115,076
$0.28
Fr 14
FY'15
$598,872
(260,513)
105,495
10,182
$454,036
$1.12
$313,863
(5,311)
62,184
56,476
$427,212
$1.04
Incentive Business Economic Income (Loss)
Less: Non•Cash Carried Interest Income(2)
Less: Net Unrealized Carried Interest Loss
Less: Unrealized Investment & Other (Income) Loss
Incentive Business Distributable Earnings
Per Share
($28,844)
265,637
32,664
$269,457
$0.66
$25,914
99,228
(76,545)
$48,597
$0.12
Distributable Earnings
$370,916
$144,579
Taxes and Related Payables(3)
3,209
(2,027)
DE After Taxes and Related Pavables
$374,125
DE per Share of Common & Equivalent(4)
$0.91
$0.36
Distribution per Share of Common & Equivalent
50.86
Payout Ratio
95%
($19,716)
40,489
(5,237)
$15,536
$0.04
5130.612
(3,425)
97%
90%
$156,179
$81,794
(29,900)
830,478
250,888
(10,913)
(107,173)
$975,744
$195,609
$2.41
$0.48
$1,429,780
8622,821
(73,565)
(9,715)
S1,356.215
$613,106
$3.13
$1.50
S2.89
92%
$1.38
92%
(I) 2011ligures int Jude moniuning fees paid by ..1thenr and gains resulting from reductions of the tar receivable agretvnent liaMlitr. 201.5 and 20,4 figures include AAA management feet.
(2)Reprecents reali:ed carried intorst income sealed k' mmtpi of securities.
(3) Represents. estimated tureens corporate. local and non.U.S. tares at. urll as amounts pa3uNe under Apollo r far reveirable agreement
(4) Calculation is based on end of period Class A shams outstanding and muddled share units ("RStlx") that participate in disttibutions (collectiwly mfertrd to ar "common et equindents-).
3
EFTA00623363
Private Equity
I.
• Economic Loss driven by negative unrealized mark-to-market performance
within the Incentive Business and the impact of a reserve) in the
Management Business
• Traditional private equity fund depreciation during the quarter of 2.0%") was
driven by energy-related investments and public debt held by the funds
• Deployed $1.8 billion across primarily 10 investments during the quarter
with an additional $1.7 billion committed but not yet deployed capital1~1 at
quarter end
• Realization activity driven by a partial sale of Veritable Maritime, a
secondary sale of Norwegian Cruise Lines, and a full disposition of Nine
Entertainment
• Inflows driven by the subsequent closes of the second natural resources fund
• At quarter end, Fund VI and VII escrow ratios were 95% and 106%,
respectively, which were below the required escrow ratio of 115%
Financial Results Summary
(5 in shousandv)
4Q.14
3Q.15
4(115
MB Revenues
$80,257
$76,612
$50,119
MB Expenses
51,474
51,483
62,698
Other Income (Loss)
11,651
(43)
245
MB Economic Incomes)
40,434
25,086
(12,334)
Carried Interest Income (Loss)
20,561
(65,226)
(45,367)
Profit Sharing Expense
15,654
(26,044)
(14,224)
Other Income (Loss)
(5,376)
7,306
(873)
IB Economic Loss
(469)
(31,876)
(32,016)
Economic Income (Loss)
$39,96
($6,790)
($44,350)
Business Drivers
Inflows
4Q' 15
$0.8bn
Deployment
$1 .8bn
Realizations
$1.0bn
Perfarmancem
(2.0)%
FY'15
$2.3bn
$5.1bn
$4.7bn
(0.2)%
Key Stats
S38 billion A (
Traditional PE Funds
Fund Fill
Inception-to-date Gross /
32% Committed or
Net IRR 39%/ 25%
Deployed
I
PE Portfolio
73% Private / 27% Put
Pah& Funky Moan
Nonvegian (NCLH)ffi
EP Energy (LPL)
Car.vars Acquisition WACO"'
Car.vars Enterlairument aRt
Wei.97.01Corp (07.00 IN)
Kehipten Ertlerprires (WEL IN)
*no (PRP!"
hand
Shares HAI onto
Fund VI d PO
363
Fund
ANRP
62.6
Fund PI
28.4
Fund PI
26.3
Fund III d ANRP
58.1
Fund Pit d ANRP
344
Fund PI
32.3
al Represents traditional private equity fund appreciation (depreciation) as defined in the non-GAAP financial information and definitions section of this presentation. (2) Represents capital committed to
investments as of December
2015by Apollo's private equity funds. These investments have not et closed and may be. ubject to a variety ofclosing conditions or other contractual provisions, which could
result in such capital not ultimately being invested. (3) Other represents approximately 55 billion of uncalled commitments which can be called for fund fees and expenses only and are not available for
investment or reinvestment subject to the provisions of the applicable paid limited partnership agreements or other governing agreements. (4) Includes Shares held by Athene in associated co-investment
vehicles. (5) 4Q '15 includes impact of reserve of 545 million accrued in connection with an ongoing SEC regulatory matter previously disclosed in our third quarter 2015 Form 0-(.1 principally concerning
the acceleration °flees from fund portfolio companies.
4
EFTA00623364
Credit
P O L
O
Highlights
• Economic Income driven by Management Business earnings, and
complemented by Incentive Business earnings
• Total credit gross and net returnsa) of (1.2)% and (1.4)%,
respectively, driven by negative unrealized mark-to-market losses
amid a challenging market backdrop
• Inflows primarily driven by Athene's acquisition of Delta Lloyd,
MidCap's partial acquisition of Mubadala GE Capital, and the
inclusion of a private business development company that Apollo
sub-advises
• Strong capital deployment activity in Drawdown funds driven by high
yield corporates, hospitality, insurance and energy
• Realization activity driven by Liquid I Performing funds, as well as
opportunistic Drawdown funds
Financial Results Summary
(5 in (humanely)
4Q'14
3Q'15
405
MB Revenues
$206,987
$155,132
MB Expenses
89,840
95,174
Other Income
18,836
157
Non-Controlling Interest
(3,134)
(2,697)
$156,535
91,003
744
(2,918)
MB Economic Income
132,849
57,418
Carried Interest Income (Loss)
(33,562)
(2,010)
Profit Sharing Expense
(7,956)
12,739
Other Income (Loss)
(7,523)
70,083
63,358
7,867
7,531
7,715
1B Economic Income (Loss)
(33,129)
55,334
8,051
$71,409
Economic income
$99,720
$112,752
Business Drivers
4Q'15
Fl" 15
$10.8bn
Deployment
$1.6bn
i Realizations
$529mm
kerformancew
(1.2)%
$18.2bn
$5.5bn
$2.2bn
1.3%
(l)
&peso= rote/ cadligraus mun ouluding anal wawa n.1.Lff Mat am nut di/oak inwmed is Apollo And..
adds& byApollo. 47.13 and fl"1Smv,emmsp. meal ciao orilmang awn mammal)? 443t my dun il l
ApolloAuthor suo-mhited
Atm& IOW 0.4%4 and Or. torveneti.
Key Stats
(b in billions)
Liquid / Performing
Drawdowr
Permanent Capital Vehicles cx
Athcne Non-Sub-Advised"
Athene Non-Sub-Advised".
$121 billion AUM
CE
CC
AUM
S37
$31
$22
$19
S11
$17
$15
410
59
$50
$50
—
S4
55
58
$17
4Q315
Cross
Return Z'
F1" 15
Cross
Return"
(0.91%
1.7%
(2.4)%
(1.31%
(0.1)%
(l.2)%
1.3%
•,..“ moon arpresmit grins return as defined in the non-GAAPfittandal information and definitions section of thisjormentasion wish the exception of CL0 assets in Liquid/Petforalwhidt are calculated bated on grim tenon on
,ted aswm. which excludes each. The' 4(115 no returnr for batted/Performing. Drawdown and Permanent Capital tibicles en AAM were (1.01%. a 71%. (0.9)14, revealed}, and 1.4)9gor total credit excluding insets managed br
.1141 rhos are nor Jurctly invested in Apollo tiordr or sithwthived by ApMe. The Fr13 net returns for Liquid/1 reforming. !Mandarin and Permanent Oral Vehicles m4431 were 1. %. (2.h)% 03%, IICIpeCtilleil, and 0.3%jonotar
credit mcluding assets Managed by AAM shot ear not directly invested in Apollo funds or sub-advised hr Apollo. til . Mow Non.Sub.Adrind includes 344.9 hitISI of Albeit( Asset Management LP ACM and 53:1 billion of Adtene
G
um. ACM.. &a excludes 514.6 billion of attest that war either sult.advised he Apollo or Merited ihfiindr and in w.ament whirler managed lw Apollo. t4t Significant DraWdOWnfunds and strategic investment accounts ("WO
had incepimigo.date CUD", 1 gram and net Mgr of 163% and 12.3% respectibily ar olDeeember 31. 2015. 'ignifi ant Drawdtmo Am& and Ws includefunds and SlAs with ACM greater than 5200 million that did not
prilominantly imam in other Apollofunds or Skis
5
EFTA00623365
Real Estate
A P O L L O
• Increase in Economic Income quarter-over-quarter driven by
improved results in both the Management and Incentive Businesses
• Year-over-year Management Business revenue growth primarily
driven by strong growth in the commercial real estate debt business
• Inflows for the quarter driven by capital raised for the AGRE Debt
Fund, managed account activity, as well as capital raised for Apollo
U.S. Real Estate Fund II where 77% of the capital has been invested
or committed
• Inflows in 2015 were the highest level for the segment since 2010
• Deployment activity driven by commercial mortgage lending activity,
as well as equity investments in office and hotel properties
• Realizations driven by both debt and equity funds
Financial Results Summary
(S in thousand.)
4Q'14
3Q'15
4Q'15
MB Revenues
$11,928
$13,575
$16,163
MB Expenses
16,979
16,803
16,664
Other Income (Loss)
3,229
4
54
MB Economic Loss
(1,822)
(3,224)
(447)
Carried Interest Income
7,913
3,380
5,325
Profit Sharing Expense
3,802
1,312
1,013
Other Income (Loss)
643
388
(63)
1B Economic Income
4.754
2,456
4,249
Ecoircome
(Loss)
$
2,932 $
(768) S
3,802
Business Drivers
4Q'15
Fl"1.5
$752mm
30in in
S3.2bn
S2.5bn
SI.7bn
Inflmvs
Deployment
[ Realizations
$357mm
Performance"'
4.6%
16.3%
$11 billion AUM
ell Repretems grass return for U.S Real Estate Fundl including 02-INWSIMCIll capital 4015 and F1•'15 net rearm for U.S. Real Evutte Fund !were 3.0% and 110% tr.vpectint. U.S Real Rimed:and! incrpfian•la•rkre gram and net
1RRy were M% and 14%. er.vpeceirely. cc of December 31. 2015.
EFTA00623366
Total AUM & Fe -Generating
APOLLO
4Q'15 Total ACM Rol!forwardII
(S in millions)
3Q'15
Inflows
Outflows
Net Flows
Realizations
Market Activity
4Q15
Private
Equity
Credit
Real Estate
Private Equity
$38,256
776
(29)
747
(988)
(513)
■
$37,502
$121,361
$112,781
10,766
(1,211)
9,555
(529)
(446)
Total AUM Highlights
Total
$10,782
$161,819
752
12,294
(1,240)
752
11,054
(357)
(1,874)
83
(876)
511.260
$170,123
Inflows: ANRP II ($400 million) and managed accounts (5300 million including
5240 million transfer) Realizations: Fund VII (5660 million) and Fund VI
($290 million) driven by Veritable Maritime, Norwegian Cruise Lines, and Nine
Entertainment RIarket Activity: 2% depreciation in traditional PE funds
In)lou•.s: Athens acquisition of Delta Lloyd Deutschland ($5.1 billion); MidCap
partial acquisition of Mubadala GE Capital (51.6 billion); private BDC sub-
advised by Apollo (51.5 billion): net leverage increase ($763 million); and
managed accounts (5681 million) Otuflowa: Net segment transfers ($559
million); net decrease of Aihene assets ($495 million); and redemptions ($158
million) Realizations: Drawdown funds (5287 million) and Liquid / Performing
funds ($149 million)
Inflows: Nei segment transfers (5252 million): AGRE Debt Fund I (5200
million); and US Real Estate Fund II ($102 million including co-investments)
Realizations: RE debt ($239 million) and RE equity (5118 million)
Fr15 Total At M kollforward'
(Sin millions)
Total
Private Equity
4Q'14
$41,299
$108,959
$9,538
$159,796
Inflows
/,/oo
18,201
3,188
23,688
Outflows(2)
(812)
(3,768)
(71)
(4,651)
Net Flows
1
1,487
14,433
3,117
19,037
Realizations
(4,711)
(2,182)
(1,656)
(8,549)
Market Activity
(573)
151
261
(161)
49'15
S37,502
$121,361
511,260
$170,123
4Q'15 Fee-Generating AUM Rollforward(i)
(Sin million)
3Q1 5
Inflows
Outflows
Net Flows
Realizations
Market Activity
4Q'ts
Private
Equity
Credit
[Real Estate
Private Equity
"Fool
$29,300
$94,666
$7,102
$131,068
1,027
8,702
689
10.418
(9)
(1,305)
(138)
(1,452)
1,018
7,397
551
8,966
(1,058)
(305)
(312)
(1,675)
(2)
(236)
(24)
(262)
$29,258
$101,522
$7,317
$138,097
Fee-Generating AUM Highlights
Inflows: ANRP II ($391 million) and fee-gentrating capital deployment ($628
million) Realizations: Primarily Fund VI and Fund VII strategic and public
disposition activity from 3(115 and 4q15 (due to semi-annual fee basis reset)
Inflows: Athens acquisition of Delta Lloyd Deutschland ($5.1 billion); MidCap
partial acquisition of Mubadala GE. Capital (51.6 billion); fee-generating capital
deployment ($1.3 billion): and managed accounts ($427 million) Outflows: Nor
leverage decrease (577 million); net decrease of Athene assets ($495 million):
net segment transfers (S199 million) and redemptions ($153 million)
Realizations: Liquid / Performing funds ($139 million) and Drawdown hinds
(5108 million)
Inflows: ARI fee commencement on prior capital raised ($310 million): Nei
segment transfers ($199 million): and ACRE Debt Fund I (591 million)
Realizations: RE debt (5236 million) and RE equity (S76 million)
FY 15 Fee-Generating AUM Rollforcard'''
IS in millions)
Private Equity
Total
O)14
$30,285
$92,192
$6,237
$128,714
Inflows
2,610
14,702
2,639
19,951
Outflows(2)
(794)
(4,328)
(249)
(5,371)
Net Flows
1,816
10,374
2,390
14,580
Realizations
(2,839)
(1,664)
(1,328)
(5,831)
Market Activity
(4)
620
18
634
4Q'IS
$29,258
$101,522
$7,317
SI 38,097
,,Ion at the individual segment 1 net represent suhveriptiont commitments. and other IIICMCIVC, in available capital 1O1 at acquisition% or leverage. nes of intersegment transfers. Otallows represent redemptiotar an✓ nice &maws in mailable
.apical. Realizations trpretem fund tlistrihutionv pf tralized proceeds. Mather tai
in represents gains (lamest the is pact offoreign exchange rate fluctuations and other invome.
12) Included in the F1" i5 outflows for ?bra! Atli and EGAL'AI is 51.202 million and 5.5O million oprdemptions. rcyuu ivitt
7
EFTA00623367
Segment
Carry-Eligible &
APOLLO
tarr)-Eligible
M
Private Equity
Credit
Total
(S in millions)
4Q.14
3q15
4Q115
$36,376
$33,248
$32,782
39,013
45,819
47,207
2,614
2,401
2,440
$78,003
$81,468
$82,429
(S in millions)
$82 billion
Carry-Eligible AUM
Uninvested
Carry-
Eligible
AUM
4.26.3bn
Currently
Generating
Can'
$26.9bn
Not
Currently
Generating
Carry
529.2bn
Segment
4Q14
3Q15
4Q115
Private Equity
$14,463
$10,302
$9,461
in billions)
Invested AUM
Investment
Appreciation
16,218
17,211
16,923
Category / Fund
Not Currently
Period Active
Required to
Generating Carry >24 Months"' Achieve Carry(21a)
828
553
516
Fund VIII
S5.0
S5 .0
10%
Total
$31,509
$28,066
$26,900
Other PE
1.8
1.3
21%
Private Equity
6.8 I
6.3
12%
4Q'15 Carry-Generating to Carry-Eligible AUM Reconciliation
Drawdown
5.2
4.0
25%
IS in millions)
1.3
< 250bps
Private Equity
Credit
I Real Estate
Total
Liquid /
Performing
16.4
63
250-500bps
$9,461
S16,923
$516
Carry-Generating AUM
$26,900
1.2
> 500bps
+ Uninvested CE AUM
16,528
8,701
1,059
26,288
Permanent Capital
NM
Vehicles ex AAM
+ Invested AUM Not
Currently Generating
6,793
21,583
865
29,241
Credit
21.6
13.0
11%
Carry
Carry-Eligible AUM
$32,782
$47,207
$2,440
$82,429
0.9
0.7
> 500bps
Total
$29.3
$20.0
(1) Represents lammed AVM star urrently generating cartylor fiat& that hare been imtsting capital for in or than 24 mo t s at of December 31. 2015.
(2) Reporsents the percentage of additional appreciation srquired to reach the prelertrd retwn or high watentant and gene use carried intemt for funds with an armament period gtrater than 24 mom&
(3) All illYetiOrS in a girert And are temsidered in aggregate when calculating the appreciation required to a hint carry presented above. Appreciation reward to achieve tart• may my by individual investor.
EFTA00623368
Capital Deploym
APOLLO
• Capital deployed across the platform totaled $4.1 billion for the quarter and $13.1 billion for the year. The
pending investment commitments in private equity that have not yet been funded totaled $1.7 billion as of
December 31, 2015
• Dry Powder of $26.1 billion at the end of the quarter, including $8.8 billion of AUM with future
management fee potential
Capital Deployment
$26 billion Dry Powder
(Sin billions)
(S in millions)
Segment
4Q'15
FY'15
Real Estate
$0.8
Private Equity
$1,784
$5,144
Credit
1,590
5,531
$0.8
Real Estate
730
2,458
Total
$4,104
$13,133
Private Equity
Credit
317.4
PE Other
$7.9
4Q' 15 Highlights
$4.4
Drawdown
• Primarily comprises Verallia (Manufacturing),
RegionalCare (Healthcare), Vectra (formerly OM
S7.5
Private
Equity
Group, Industrials), select distressed debt investments
and follow-on investments for energy related build-outs
• Driven by opportunities in developed markets,
hospitality, non performing loan portfolios, European
insurance securities, depressed energy credit, and cash
flow CLOs
Fund VIII
$13.0
Credit
• Represents commercial mortgage lending activity across
several strategies and equity investments in hotel and
office properties in the U.S.
Liquid /
Performing
$0.4
Real Estate
9
EFTA00623369
Shareholder Distr bution
APOLLO
• Generated $0.31 of DE per share of common and equivalent during the quarter, driven by Management
Business earnings
• Apollo declared a quarterly distribution of $0.28 per Class A share to holders of record as of February 19,
2016, which is payable on February 29, 2016
(S in thousands. except per share data)
4D'14
3D115
DE After Taxes and Related Payables
$374,125
$142,552
Add Back: Taxes & Related Payables Attributable to Common &
Equivalents
(1,748)
27
DE Before Certain Payables0)
372,377
142,579
Percent to Common & Equivalents
45%
47%
DE Before Other Payables Attributable to Common & Equivalents
167,622
68,953
Less: Taxes & Related Payables Attributable to Common &
Equivalents
1,748
(27)
DE Attributable to Common & Equivalents
$169,370
$68,926
Per Share of Common & Equivaleni2)
$0.91
$0.36
Retained Capital per Share of Common & EquivalentaX3)
(0.05)
(0.01)
Net Distribution per Share of Common & Equivalent[' )
$0.86
$0.35
Payout Ratio
95%
97%
(75)
127,112
47%
59,908
75
$59,983
$0.31
(0.03)
$0.28
90%
FY'14
FY'15
$1,356,215
$613,106
66,429
12
1,422,644
613,118
45%
47%
633,380
290,420
(66,429)
(12)
$566,951
$290,408
$3.13
$1.50
(0.24)
(0.12)
$2.89
$1.38
92%
92%
DE Beforr Certain Patables represents Distributable Earninw below the deduction for estimated morns ((operate taws and the amounts payable under A pollo:v NJ: medial* agreement.
Per share calculations are ?Nord emend to period total (lass A short outstanding and RS1,:v that panicipate in divtributions tut page 26 jar the sham mlifortranil. !collectively raletred m as -common & equitialemr").
Retained capital is withhold paint la from common and equivalent holders and Apollo Operating Chomp rA(Xi") unitholders
10
EFTA00623370
Balance Sheet Hig
APOLLO
At December 31, 2015, Apollo had $613 million in total cash, $1.2 billion of investments, and $348 million of net carried
interest receivable for a total net value of $2.2 billion, or $5.33 DE per share outstanding
• Long-term debt of $1.0 billion, includes $495 million in senior notes due 2024 and $499 million of term loan due 2019
• Apollo has a $500 million revolving credit facility expiring in 2019, which remained undrawn as of December 31, 2015
• Unfunded future general partner commitments totaled $566 million as of December 31, 2015, of which $290 million
were commitments to Fund VIII
Summary Balance Sheet
(S in millions)
Cash
$613
Investments(!)
1,223
Carried Interest Receivable"
644
Profit Sharing Payable
(296)
Taal
Debt(?)
($1,025)
Unfunded Future Commitments
$566
(Sin million)
4915
S&P and Fitch
A /A- rated
Athene/AAA
$582
GP Investments / Other
Investments(3)
641
•
Total Investments
SI,223
Undrawn
Credit Facility
$500 million
knrinnents and curried interest Ferranti* are preened an on unconsolidated basis.
12) Orassanding balance is presented net of 'womanized debt issuance costs of S5.3 million.
(3) &prevents realized gains fawn Apollo's general partner irtresments in thefunds it manages (excluding AAA) and other balance sheet imystmentr.
II
EFTA00623371
Carried Interest It: ceivable &
APOLLO
(S in thousands)
As of
December 31, 2015
Carried Interest
Receivable on an
Unconsolidated Basis
For the Three Months Ended
December 31, 2015
Unrealized
Realized
Carried
Carried
Interest
Interest
Income (Loss)
Income
Total Carried
Interest
Income (Loss)
For the Year Ended
December 31, 2015
Unrealized
Realized
Carried
Carried
Interest
Interest
Income (Loss)
Income
Total Carried
Interest
Income (Loss)
Private Equity Funds
Fund VII
$68,733
10
($25,124)
$—
($25,124)
($219,449)
$229,679
$10,230
Fund VI
52,561
In
(28,059)
3,647
(24,412)
(130,861)
78,812
(52,049)
Fund V
43)
(330)
(330)
(13,947)
(13,947)
Fund IV
6,196
2,515
2,515
560
MO
1,200
AAA / Other''
246.381
15'
1.984
1,984
49,536
30,691
80.227
Total Private Equity Funds
Total Private Equity Funds, net of profit share
$373,871
254,888
($49,014)
(29,848)
$3,647
(1,295)
($45,367)
(31,143)
($314,161)
(184,903)
$339,822
163,992
$25,661
(20,911)
Credit Funds
Drawdown
163,863
43)
(8,967)
15,620
6,653
(69,127)
70,970
1,843
Liquid / Performing
48,933
(9.019)
5,033
(3,986)
(21,808)
27,557
5.749
Permanent Capital Vehicles ex AAM
28,048
5.200
9,751
14,951
10,401
40,625
51.026
Total Credit Funds
Total Credit Funds, net of profit share
$240,844
75,472
($12,786)
(12,322)
$30,404
22,409
S17,618
10,087
($80,534)
(70,171)
$139,152
94,405
$58,618
24,234
to Funds
CPI Funds
1,379
(292)
414
122
(240)
2,496
2,256
ACRE U.S. Real Estate Fund, L.P.
20,728
3,701
1,731
5,432
7,547
1,981
9,528
Other
7,085
(229)
(229)
(153)
1,380
1,227
Total Real Estate Funds
Total Real Estate Funds, net of profit share
$29,192
17,873
$3,180
1,681
$2,145
2,631
$5,325
4,312
$7,154
4,186
$5,857
3,750
$13,011
7,936
Total
Total, net of profit share
$643,907
13j
($58,620)
($40,489)
$36,196
$23,745
($22,424)
($387,541)
)484,831
5262,147
$97,290
$348,233
($16,744)
(5250.888)
$11,259
(1) As of December 31. 2015. the irunaining ilIWORWAtl and esermy auk of Fund VII and Fund 17 wen valeta/at 106% and 95% of the fund's utarnrrned capital. mspectne1v. which were /Wren the required escrow ratio 4115%. As a mods. lit•VC AN& an maim& to
plate in escrow anima and firture carried11VMM income &oh buttons to the general partner until the specified return ratio of 115% is 11101 (at the time of a Jailor distribmionlor upon lignidaon. A. of December 11. 2015. Fund VI had 5167.6 million of gnus
carried interest income. or S110.7 million net of profit sharing. in meant Of these amount.. ramming a hypothetical limadation on December 3). 2015. $52.6 minion of gross tarred imams,. or 334.7 million HO ((prop sharing. would be paid to the general
panner As of December 31. 2015. Fund VII had no earned intern held in escrow. MA raven to Fund VI. realised carried Minya income carrot* dila-Antal to the general partner ti limited to lea dioribution, per thefund} partnership agreement.
(2) AAA includes 51455 million of carried interest meavabk. or S122.6 million net of pinta shanng. from AAA Inveaments. LP ("AAA Inmuntemtv) which will he paid in common shams ofAthene Holding (Inbred at the then fair market wheel tfthem is a distribution
in kind of shams ofAthene Holding (unless such payment in shams unuld violateSection 16(6)4 the US Securities Exchange Art 41934 at amended). or pod in auk if AAA sells the shares ofAthene Llefelmg In addition. Other includes certain Shy..
(3) As of December 31. 2015. Fund I: APC. ANRP. ACLF. COF IL and certain 51As within the crabs segment had S10.S indium S2.1 mullion. 53.4 million. S25.6 nulhori. 50.4 million. and 529.7 million. irspertinely. DI general pruner obligations to velum pa: Moistly
distributed cairind Mown income. Sinclair value gain on inmoments and income at the fund level needed to reverse the gown/ panner obi/games in Fund
APC. ANRP. ACLF. COP IL and certain 51As within the crabs seawall.= 571.7 million. 512.3 million.
3217.5 million. $645 million. 55.1 million. and 5191.5 million. irspectitrly. ac of December 31. 2015.
(4) Them was a coriwponding profit shoring payable of 5295.7 minion as of December 3). 2015. including profit duping payable MOUCi to amount: in escrow and contingent consideration obligations of S79.6 million.
12
EFTA00623372
Permanent Capita
les
APOLLO
• As of December 31, 2015, Apollo had $82.7 billion of AUM across seven Permanent Capital Vehicles(l)
• Apollo generated $113.0 million of Management Business revenues from Permanent Capital Vehicles during the quarter,
representing 51% of total Management Business revenues and $449.4 million during the full year 2015
• The compound annualized growth rate ("CAGR") of permanent capital AUM since 2010 is 64%. Apollo will continue to
seek to grow its base of permanent capital opportunistically
Permanent Capital AUM
$80
$70
45%
To o
$60
$50
2
<
c.
Soo
22°
$30
$20
10V
a. $10
$25
SO a-
2010
2012
2014
2015
Permanent Capital AUM
% of Total AUM
50%
40%
30%
20%
10%
0%
Proportion of Total AUM
f.S in mullions. except where notedi
4(1'15
Athene Asset Management /Athene Germany°
$64,532
Apollo Investment Corp (AINi/3j
5,699
Apollo Residential Mortgage (AMTG)st)
3,844
MidCap Financial
5,233
Apollo Commercial Real Estate Finance (ARI)(5)
2,654
Apollo Tactical Income Fund (AM)
369
Apollo Senior Floating Rate Fund (An)
413
Total Permanent Capital ACM
$82,744
Management Business Revenues from Permanent
Capital Vehicles (S in thousands)
%of Total Management Business Revenue
$112,969
51%
(1) The investment management arrangements of doe Permanent Capital Vehicles that Apollo mmtagrs may be JOYRIDIThi under cena ncisrumnanors. Refer to page 30 (Olds pirsentation for a definition of Prime:nem Capital latch and additional
information regaling the cutimtstances under which the investment management arrangements of the Permanent Capital Vehicks may be terminated.
(2)Athene Anet Management Athena Germany includes 514.9 billion of Athena Amer Management L.P. AVIV. $5.1 billion of Aiken Germany AVM and S146 billion of aura Mai wen other th&advited by Apollo or invested infinds and imrnment
PthiCitt managed by Apollo.
(3)Amounm air at of September 3O 2015. Refer to inocapalloic.com *the most tarnt financial intonation on ANY The infonnation contained°. AlNI"s satire as not part of this pn-seumnan includes $1.4 billion of AVM 'dated ma minim Mathew
development company
(4)Amounty rural of September 30. 2015 Refer to toncapalloirmdetwalmongage.cont for die 1.11011ere ens financial inf armation on AAITG. The information contained on AMTG's welvite it not pan ofthis pry:notation
(5) Amount. weal of September 30. 2015 Refer to inocapalloiritcom for the mat meta financial information on AN The usfonnation contained on ARts who're m not pan of this presentation.
13
EFTA00623373
Athene Asset Manalement
APOLLO
• As of December 31, 2015, AAM had $59.5 billion of total AUM in accounts owned by or related to Athene Holding
• Of the total AUM, $14.6 billion, or 25%, was either sub-advised by Apollo or invested in funds and investment vehicles
managed by Apollo, compared to $12.6 billion and 21%, respectively, at December 31, 2014
• During the quarter, $454 million of AAM assets under management moved from non-sub-advised to sub-advised by Apollo,
bringing the total amount of new sub-advised AUM over the twelve months ended December 31, 2015 to $3.0 billion
Apollo will continue to seek attractive investment opportunities that are consistent with AAM's investment objectives on
behalf of Athene
AUM & Sub-Advised Percentage
s'o
$60
g 550
.= $40
530
< $20
$10
$0
32%
8%
$2
2010
2012
2014
1
2015
AAM AUM
Sub-Advised by Apollo
35%
- 30%
25%
20%
15%
10%
5%
0%
% Sub-Advised
N in
Credit
Liquid / Performing
9.0
0.9
Drawdown
RE Debt
3.4
L RE Equity
0.3
Total
$14.6
Note: On Odober Z 2013, Athene Bolding closed its acquisition of the U.S onntthy operations of AMn plc which added approximately 514 billion °fugal and Fee-Gennuting AVM within Apollo's credit segment
EFTA00623374
ment of Ope ations
APOLLO
(5 in thousands. except per share data)
1.
4Q114
3(i'15
4Q115
F'7" 14
F1- 15"'
Revenues:
Advisory and transaction fees from affiliates, net
567,665
59,276
($20,083)
5315.587
$14.186
Management fees from affiliates
206.933
238,563
236,158
850,441
930,194
Carried interest income (loss) front affiliates
798
(54.571)
(22.424)
394.055
97.290
Total Revenues
275,396
193.268
193,651
1.560,083
1.041.670
Expenses:
Compensation and benefits:
84,507
23,890
(,706)
Sabry, bonus and benefits
77.285
93,514
338,049
354,524
Equity-based compensation
Profit sharing expense
Total Compensation and Benefits
24.644
31.404
17,257
(20,329)
126,320
97,676
276,190
85,229
119.186
104,589
103,691
7,617
36,283
16,206
9,993
2,612
11.127
740,559
537,429
Interest expense
7,366
7,529
22,393
30,071
General, administrative and other
24,042
21,645
97,663
102,255
Professional fees
24,431
17,218
82,030
68,113
Occupancy
10,190
10,137
40,427
40,219
Placement fees
1,387
2,617
15,422
8,414
Depreciation and amortization
11.085
11.176
45,069
44.474
Total Expenses
197.687
174.911
187,529
1.043.563
830,975
Other Income:
Net gains (losses) from investment activities
(643)
80.950
14,231
213,243
121,723
Net gains from investment activities of consolidated variable interest entities
30,252
911
11,011
22,564
19,050
Income (loss) from equity method investments
(4,200)
2,021
(3,224)
53,856
14,855
Interest income
2,095
818
829
10,392
3,232
Other income. net
30.810
93
931
60.592
7,673
Total Other Income
58.314
84.793
23.778
360.647
166.533
Income before income tax provision
136,023
103,150
29,900
877,167
377,228
Income tax provision
(50,283)
(6,591)
(5,536)
(147,245)
(26,733)
Net Income
85,740
96.559
24.364
729,922
350.495
Net income attributable to Non-Controlling Interests
(63,558)
(55,508)
(18,273)
(561,693)
(215,998)
Net Income Attributable to Apollo Global Management, ILLC
Distributions Declared per Class A Share
$22,182
541.051
56.091
5168,229
$134.497
50 73
5042
50.35
53.11
$1.96
Net Income Per Class A Share:
Net Income Mailable to Class A Share - Basic
Net Income Available to Class A Share- Diluted
Weighted Average Number of Class A Shares Outstanding - Basic
Weighted Average Number of Class A Shares Outstanding - Diluted
(11
Apollo adopted new GAAP consolidation and collaterali:ed financing entitr ("eft:
soul
50 20
50.02
50.62
$0.61
So 01
50.0
$0.02
50.62
$0.61
162.107,977
176. i69.9x6
180.370,747
155,349,017
173.271,666
162.107.977
176.169.986
180.370.747
155.349.017
173.271.666
guidance in 2(1'15 which resulte✓ in the deconvolida non of tenant funds as of Janney).
2015 an✓ a tnravurement alternative oldie
financial oven and liabilities of the remaining consolidated
The adoption did mu impact net income attributable to Apollo Global Management. LLC in Fr1S. bat did change various line acme within the statement of
operations_ Such °noun& haw been martin 1.775.
15
EFTA00623375
Appendix
EFTA00623376
Summary
4y14
•
4Q'15
APOLLO
(S in thousands. rxecr prr shore data and %Out., noted,
2w15
3(4.15
'14
1'\' 15
Management fees from aftiliatm
5220,643
$224,713
$227,273
5226358
$233,149
5901,024
5911,893
Advisory and tramaction fees from of
net
67,909
9.543
15,450
9,276
(20.083)
316,082
14.186
Carried interest income from affiliates
10,620
10,774
10,815
9,285
9,751
41,199
40,625
Total Management Business Revenues
299.172
245.030
253,538
245.319
222.817
1.250-305
966.704
Salary. bonus and benefits
77,661
87,552
89,683
94,110
84.577
339.846
355922
Equity.based companation
19,149
15,831
14,643
14,938
16,772
105,495
62,184
(iCIICT31. adIIIIRMInitlbe and other
23,380
22,805
21,575
21,731
36.401
96,485
102,513
Professional fees
24,008
15,229
19,599
17,294
16,133
80,607
68,354
(kcupancy
10,211
10,026
10,191
10,196
10.050
40.511
40,463
Placement fees
1,387
1,264
1,327
2,585
3,763
15,422
8,939
Depreciation and amortization
2,497
2,610
2-691
2.606
2,569
10,182
10.476
Total Non.Compensation Expenses
61.483
51,934
55,383
54,412
69,016
243,207
230,745
Total Nlanagenient Business Expenses
158.293
155317
159.709
163.460
170.365
688.548
648.851
Other Income
33,716
4.692
1,841
118
1,043
41,803
7.694
Non•Comrolling Intense
(3334)
(2.846)
(3,223)
(2,697)
(2.918)
(12,688)
(11,684)
Mansoneat Bitten Economic Income
S171,461
$91,559
$92,447
$79,280
EM,577
5598,872
$313,863
Per Share
5043
5023
50.21
50.20
Sal3
51.50
50.78
Carried interest income loss):
Unrealued losses
(523,452)
(66.905)
(82.930)
(179,086)
(58,620)
(1,347,786)
(387,541)
Realized gains
518,364
124,724
177,807
115,230
26,445
1,713,108
444,206
Total Carried Interest Income (1.ms)
(5.088)
57.819
94877
(63.856)
(32.175)
365.322
56.665
Mira ah.111/18 exNnse:
Unrealized profit sharing expense
(257,815)
(8,757)
(29,907)
(79,858)
(18,131)
(517,308)
(136,653)
Realized profit sharing expense
269,315
49,589
92.779
67,865
12,451
782.216
222,684
Total Profit Sharing Expense
11.500
40.832
62.872
(11993)
(5.680)
264,908
86.031
Net interest expense
(6,623)
(6.692)
(6,824)
(6,187)
(6,830)
(19,098)
(26,533)
Other income (loss). net
(1,665)
(3481
(769)
(305)
907
10,896
483
Net gains from investment activities
113
1.761
24,284
81,244
14,841
9,062
121,132
Income (Loss) from equity method investments
(4,081)
(1.198)
16,390
3,025
(2,139)
54.905
16,078
Other Income (I.oss)
(12256)
(6.4771
33,081
77.777
6.779
55.765
111.160
Incentive Business Economic Incense (Loss)
(528.844)
510.510
565,086
$25,914
($19,716)
$156,179
581.794
Per Share
ISO 07)
50.03
50.16
50.06
($0.03)
50.39
S019
Economic Income
$142417
5102.069
5157.533
5105.194
1304:61
5755.051
5395.657
Income lax provision
l6 1981
(1020)
(2.8691
( .156)
2,027
(185.587)
00.51g,
Economic Net Income
$106,119
593.549
$154.664
5104.038
S324, 85
5569.464
5385.139
Per Share
$0.26
S0.23
50.38
50.26
sass
$1.42
50.96
AUSI IS in mallow))
: *.i'., `17
162.948
162.495
161.819
170.123
159,797
170.123
Fee-Generating AUSI (S in mil f km)
::1N.': I
131.252
128.259
131.068
138.1197
128714
3N,(147
17
EFTA00623377
Private Equi
IS in thoomanak. «cep, per sharr data and where Mead)
49'14
19.15
1915
39.15
49.15
l• '14
1,115
Management tees nom afttliates
$76,755
$74,597
$74.269
S71.876
$75.094
$315,069
$295,836
Advstory and trareaetton fret Born affinates. net
3.502
3.841
8.913
4.736
(24.975)
58.241
(7,485)
Talai 0lanatemtnl Business Revenues
80.257
78.438
83.182
76,612
50,119
373.310
288-151
Salat» bonus and benfis
23,915
25,800
27.679
27.183
23.705
96,689
104.367
Equity.based compensanon
10.092
9.056
7.437
6,974
7.857
49.526
31,324
Oder *menses
17,467
15,185
16,462
17.326
31,136
70,286
80,109
Nlanagensent Bosinns Expentes
51,474
50.041
51.578
51.483
62.698
216.501
215.800
O0n-r lm:one (I6,6)
11.651
1.459
327
(43)
245
12.410
1.988
ent Business Ennemie Ineornedi
$40.034
$29,856
$31,931
525.086
(512.314)
5169,219
574,539
Per. han.
earried inkrest tricorne (Mes):
50.10
50.07
50.08
5206
/Sel OS/
50.12
50.18
Umealintd lusses
(442.604)
(21,109)
(76,674)
(167,364)
(49.014)
(1,196,093)
(314,161)
Realred gams
463,165
76,035
158,002
102.138
3.647
1.428,076
339,822
'Mal Cardai Interest Intome (Lost)
20.561
54,926
81.328
(65.226)
(45.367)
231.983
25.661
l'rofil shanng expente:
Umtali/rd profit album; experne
(234,348)
4.467
(28,023)
(86,536)
(19.166)
(502,947)
(129,258)
Realized profit sharing expense
250.002
24.332
86,064
60,492
4,942
681,320
175,830
Tagal Profit Sharing Espriu.
15,654
28.799
58.041
(26,044)
(14.224)
178.373
46,572
Net mtetest expense
(2.524)
(2.549)
(2,465)
(2,425)
(2,439)
(7,883)
(9,878)
(Mer incarne, net
11(
162
998
1,617
1,160
Nd gains (tom mseament aent.titts
5,904
1.029
6,933
Income (Loss) (rom equity mathol anyestments
(2.870)
5,483
9,278
3,827
537
30.418
19,125
Other Income (Lest)
(5.376)
3.096
7.811
7.306
(873)
24.152
17.340
menuise Business 1:ennemie Income (Loss)
(5469)
529.223
$31,898
($31,876)
(532,816)
577,762
(g$01)
Per Short
50.07
50.08
(50.08)
(50.08)
50.l9
(50.0!)
Econornic Inconic IIn..)
539.965
559.079
563.029
(56.790)
(5.14.360)
5246.481
S71).968
AUM 1$ il? relions)
41,299
40.533
39,264
38.256
37.502
41.299
37.502
Fee-Generating AUM (5 in
30.285
30,199
28.468
29.300
29,258
30.285
29.258
(1)403 and PE IS n'aides impact of reserve of 543 million acersted in cramer:ion widt an ongoing SEC medium• malter pmlou.dy di:damna OIT Mini quarter 2015 Font 10.Q principal°. comrming the «citation of fret from
famd portfolio campe:nier.
18
EFTA00623378
Credit
ak
IS in thousandr. except per share data and when. noted)
4(1'14
Igt)
211.15
,(1'15
Uri)
1.1'14
E,'15
Management tees from affiliates
5132.863
5139,452
5140,632
5141,706
5143.451
5538.742
5565,241
Advisory and transaction fees frum a0lliates. net
63.504
5,352
4.420
4.141
3,333
255.186
17,246
Carried interest income from affiliates
10.620
10,774
10,815
9,285
9.751
41,199
40,625
Tolal Manage/ix:al Business Res mum
206,987
155.578
155.867
155.132
156535
835.127
621112
Salary. bonus and benefits
43.610
53,679
51.994
56,945
50,861
210.546
213,479
bquity.based compensation
7,746
5,756
6,142
6,896
7,889
47,120
26,683
Other expenses
38,484
32,120
32.061
31,333
32.253
151.252
127,767
Management Business Expenses
89.810
91.555
90.197
95.174
91.003
408.918
367.929
Other income
18,636
2.804
546
151
744
25.984
4,251
Non-('ontrolling Interest
13.134)
(2.846)
(3.223)
(2.697)
12.918)
(12.681c)
( I 1.684)
3
tin Business Economic Interne
5132449
563.981
562,993
5570418
563,358
5439,505
$247,7511
Per. hare
50.33
50 /6
$0. 16
50.14
$0.16
51.10
50.61
Carried inkiest income (loss):
Umealized losses
(88,761)
145.770)
(6,922)
(15,056)
(12,786)
(156,644)
(80,534)
Rcalued gains
55,199
46.272
18.556
13,046
20,653
281.034
98.527
'IOW Carried Interest Income (Loss)
(33.562)
502
11.634
(2.010)
124390
17.993
Profit sharing expense:
Umealized pro0l sharing experne
(27,347)
(13,233)
(2,050)
5,384
(15,359)
(10,363)
Realized profit sharing expense
19,391
23.450
5,947
7,355
7,995
99,147
44,747
'Total Profit Sharing Expense
(7,956)
10.217
3.897
12.739
7531
83.788
34.384
Net inleics1 expense
(3,531)
(3.462)
(3.642)
(3,003)
(3,633)
(9,274)
(13,740)
Other income (loss), net
(1,683)
(510)
(769)
(305)
907
9,279
(677)
Net gains from insatment activate>
113
1.761
23.286
75,340
13,812
9,062
114.199
Income (Loss) from equity method investment%
(2,422)
(6,907)
6.202
(1,949)
(3,371)
18.812
(6,025)
Other Income (Ion)
(7523)
19.118)
25.077
70,083
7.715
27.879
93,757
Incentive Business Economic Income (Ion)
(533,129)
(518,834
532.814
555,334
381,051
568.481
577,366
Per Share
(50.08)
SWAN
50.14
$0.02
S0.17
$0.19
frown,,
599.720
$507.956
5325.116
AUM IS in millions)
108,960
112,919
112.680
112.781
121.361
108.960
121,361
Fee-Generaling AUM (S in millions)
91.192
94,858
92.667
94.666
101322
92.192
101.522
19
EFTA00623379
Real Estate
■
•
iS in Ihousondr. exceln nhen- nose')
Management feet Bom afilliates
AdvrxxV and lisruseloxi fces Bom affiliates. net
Total NInnagemenl Busintss Res vanes
Salan bonus and benefat
Etpnly-bswd compen.sanon
Other expenses
'foølNlanage•nent Business Espeast-t
Other intome
Nlaeagernen1 BUIlifittS Econotnic Lon
Car/led internat (netene:
garns (lastes)
Realued pins
Utal 4:arried Inieresi Ineome
Profil shanng expense:
Umealized profil *luring expente
Reslued profil shating expense
Total Profil Sharing Expense
Net uiterest expense
Ineome Bin enn), metlod tnvesiments
</nier Ineonte (Loss)
Ineenfive Business Beonomit Interne
Etonomle Intens. (Less)
AUM IS in million')
Fee4kneraling AUM
in mil!~
4 <y 14
IVIS
21)15
1Q'15
JQ'15
511.025
510.664
512,372
513,176
514,604
1,559
903
350
2.117
399
11,928
11.014
14.489
13,575
16.163
10,011
1,026
5.627
10.135
8.073
10.010
9,982
1.312
1.019
1.064
1.068
5.532
4.629
6$60
5,753
16,979
3.229
13.721
17.934
16,803
429
96X
4
16.664
54
(SI47)
3.180
2.145
(51.022)
(52.270)
(52.477)
(13)224)
7.913
(26)
666
3.334
-
2.417
1,249
46
7,913
2.391
1.915
3.380
5.325
1,499
(486)
3,880
9
166
1,294
(78)
1,807
768
18
3,802
ISI6
934
1.312
1.013
(758)
695
(568)
(681)
(717)
(759)
1,211
226
910
1,147
643
(455)
193
388
(63)
"240
$4354
uu
$120
$1,174
12,456
11,260
7,317
9,538
9.496
10,554
10,782
6,237
6395
7,154
7,102
4
I 1, •15
547,213
550,816
2,655
4,425
49.868
55.241
32,611
38,076
8,849
4.177
21,669
22,869
63.129
65.122
3909
1,455
(S9J952)
(58,426)
4,951
7,154
3,998
5,857
8.949
13,011
998
2,968
1,749
2,107
2.747
5.075
(1,941)
(2,915)
5,675
2,978
3.734
63
$0,030
$7,999
%/14
IS127)
9,538
11,260
6,237
7,317
20
EFTA00623380
Reconciliat
on-GAAP Meas
(5 in thousands)
4(114
1(115
2(115
M/15
4Q' 15
PPM
Frl 5
Distributable Earnings
5370,916
5146,019
5201,611
$144,579
5130,612
51,429,780
5622,821
Net unrealized carried interest loss
(265,637)
(58,148)
(53,023)
(99,228)
(40,489)
(830,478)
(250,888)
Unrealized investment and other income (loss)
(32,664)
(45)
25,436
76.545
5.237
10,913
107,173
Add back: Non-cash revenues
91,648
32,684
843
842
842
260,513
35,211
Less: Equity-based compensation
(19,149)
(15,831)
(14,643)
(14.938)
(16.772)
(105,495)
(62,184)
Less: Depreciation, amortization and other
(2,497)
(2,610)
(2,691)
(2,606)
(48,569)
(10,182)
(56,476)
Economic Income
5142,617
5102,069
5157,533
5105,194
530,861
$755,051
5395,657
Net income attributable to Non-Controlling Interests
in consolidated entities and Appropriated Partners'
8,926
2,560
8,497
161
10,146
157,011
21,364
Capital
Transaction related charges and equity-based
compensation"'
(15,520)
(17,616)
(8,865)
(2205)
(11,107)
(34,895)
(39,793)
Income Before Income Tax Provision
5136,023
587.013
5157,165
5103,150
529.900
5877.167
5377,228
Income tax provision
(50,283)
(1514)
(9,092)
(6.59 I )
(5,536)
(147,245)
(26,733)
Net income attributable to Non-Controlling Interests
in the Apollo Operating Group
Net income attributable to Non-Controlling Interests
in consolidated entities and Appropriated Partners'
(54,632)
(8,926)
(48,012)
(2,560)
(83,148)
(8,497)
(55,347)
(161)
(8,127)
(10,146)
(404,682)
(157,011)
(194,634)
(21,364)
Capital
Net Income Attributable to
Apollo Global Management, LLC
522,182
530,927
556,428
541,051
56.091
5168.229
$134,497
II) Trantacnon.erlared charges include repory.lwed compenvation (*awes. the amoni:anon of ntangiNe aunt. contingent consideration and certain other e.harges associated w
auaiated with acquisitions. £quity•hasedrompoumion alluvia:nit
nprveno nonmu,h Irvenues and expenves "'gated ro equify awards granted by unconsoldrard affiliairs to employees Oahe Company.
21
EFTA00623381
Investment
1, 2015
APOLLO
Drawdown
As of December 31. 2015
(S in minima)
intage Near
rot al AI NI
Committed
Capital
Total Investal
Capital"'
Realised
Value"'
Remaining
('ost' '
nrvalitcd
total
\aloe"
Cross IRR'"
Net IRK"'
Prisme Equi15:
Fund VIII
2013
518,398
518,377
54,858
5151
54.724
55.034
55,185
II %
opt
Fund VII
2008
7,757
14,677
15,809
28.478
3.923
4,500
32,978
35
27
Fund VI
2006
4,092
10.136
12.457
17,946
3,560
3.349
21,295
12
10
Fund V
2001
373
3,742
5,192
124581
154
114
12,795
61
44
Funds I. 11.111. IV & MIA°.
Various
46
7.320
8,753
17,398
31
17.429
39
26
Traditional Private EquW Funds°.
$30.666
554,151
547.069
576,654
512.361
523.018
389,682
39 %
15 %
AION
2013
751
826
277
89
227
173
262
%
(4)%
ANRP
2012
1,193
1.323
917
213
773
738
951
2
(3)
ANRP
—
1,716
1,731
239
14
226
213
227
NM"'
N14"
total Fib ate Equity""
534.326
551".132
54%.502
576.970
513.510
514.152
593.322
Cretin:
Credit Oppornmily Funds
COI' III
2014
53,038
53,426
53,211
5711
52.435
51,876
52.587
I7)%
(18)%
COI' I & II
2008
439
1,068
1,787
7,349
ISO
154
7,503
23
20
European Principal Finane Funds.
EPF II"
2012
3,760
3,412
3,268
1,166
2,101
2,848
4,014
19
9
EN' l'"
2007
512
1,412
1,855
2.820
25
332
3.152
23
IT
Structured ()Sit flouts
Eel 11
2013
2,201
1,555
1.432
342
1,278
1,439
1.781
23
IT
Fel
2012
985
559
1,089
645
768
799
1,444
16
12
SCRF Ill"
2015
1,043
1,238
1.025
189
692
813
1.002
NMie1
NMie1
SeRF &
Various
222
706
871
8
11
882
27
21
Other Dr.mdown Funds & SlAt:
‘'arious
4,297
5,920
5.886
6.068
1,652
1,195
7.263
9
7
roui4:44-4ii""
516.286
520.812
522.259
520.161
59.109
59.467
529.628
Real Estate:
Apollo U.S. Real Estate Fund ll"
5398
5395
5251
59
5247
5252
5261
MA'"
N7.1“1
ACRE U.S. Real Rate Fund'”
2012
595
640
614
461
325
411
872
%
%
ACRE 17ebt Fund
2011
915
1,390
1,275
796
686
665
1,461
7
CPI Funds('
Various
1,183
4,927
2,494
2.483
373
206
2,689
47
13
Total Real Ethale"
53.091
57.352
54.634
53.749
51.631
51.534
55283
Note: The Drawdowt finds imluded in the hornmens retort/table above hare prate? than 55(N) million of AUM andlorfonne pan of aflagship series of funds. The StIs included in the inve treem record table above have greater than
5209 million of ACM and do not prdominandy iciest in othrr Apollo Jimds
SlAs. Footnotes to the above table oppugn- on page 23.
22
EFTA00623382
Investment
s — No
APOLLO
(I)
Refer ra the defindions q had Invested Capital, Realized Value, Remaining Cost, Unrealized Value, Total Value, Gross IRR and Net IRR in the non-GAAP financial information &
definitions section of this presentation.
(2)
Returns have not been presented as the fund commenced investing capital less than 24 months prior to the period indicated and therefore such return information was deemed not
meaningful.
(3)
Fund 1 and Fund II were structured such that investments were made from either fund depending on which fund had available capital. Apollo does not differentiate between Fund 1 and
Fund 11 investments for purposes of performance figures because it believes they are not meaningful on a separate basis and do not demonstrate the progression of returns over time.
The general partners and managers of Funds 1, 11 and MIA. as well as the general partner of Fund III, were excluded assets in connection with the 2007 Reorganization. As a result.
Apollo did not receive the economics associated with these entities. The investment performance of these funds is presented to illustrate find performance associated with Apollo's
Managing Partners and other investment professionals.
(4)
Total !RR is calculated based on total cash flows for all funds presented.
(5)
ANRP 11 and Apollo U.S. Real Estate Fund II, L.P. were launched prior to December 31, 2015 and have not established their vintage year
(6)
Funds are denominated in Euros and historical figures are translated into U.S. dollars at an exchange rate ofE1.00 to $1.09 es of December 31, 2015.
(7)
Amounts presented have been aggregated for (1)Drawdown finds with AUM greater than $500 million that do not form part of a flagship series offunds and (ii) SlAs with AUM
greater than $200 million that do not predominantly invest in other Apollo funds or SlAs. Certain SIAs' historical figures are denominated in Euros and translated into U.S. dollars at
an exchange rate ofE1.00 to $1.09 as of December 31, 2015. Additionally, certain SlAs totaling $1.4 billion of AUM have been arch:Jed from Total Invested Capital. Realized Value.
Remaining Cost, Unrealized Value and Total Value. These SlAs have an open ended life and a significant turnover in their portfolio assets due to the ability to recycle capital. These
SlAs had 38.3 billion of Total Invested Capital through December 31, 2011
(8)
AGRE U.S. Real Estate Fund, L.P., a closed-end private investment fund, has $150 million ofco-investment commitments raised, which are included In the figures in the table. A co-
invest entity within AGRE U.S. Real Estate Fund, L.P is denominated in GBP and translated into U.S dollars at an exchange rate of 0.00 to $1.47 as of December 31, 2011
(9)
As part of the acquisition of Cid Property Investors ("CPI"), Apollo acquired general partner interests in filly invested finds. CPI Funds refers to CPI Capital Partners North
America, CPI Capital Partners Asia Pacific, CP1 Capital Partners Europe and other CPI fi nds or individual investments of which Apollo is not the general partner or manager and
only receives fees pursuant to either a sub-advisory, agreement or an investment management and administrative agreement. For CPI Capital Partners North America, CP1 Capital
Partners Asia Pacific and CPI Capital Partners Europe. the grass and net !RRs are presented in the investment record table since acquisition on November 12, 2010. The aggregate net
IRR for these funds from their inception to December 31. 2015 was (l)%. This net IRR was primarily achieved during a period in which Apollo did amt make the initial investment
decisions and Apollo only became the general partner or manager of these funds upon completing the acquisition on November 12, 2010.
(10) Certain private equity co
-investment vehicles and funds with AUM less than $500 million have been excluded. These co-investment vehicles and funds had $3.2 billion of aggregate
AUM as of December 31. 2011
(11) Certain credit funds and SlAs with AUM less than $500 million and 3200 million, respectively, have been excluded. These funds and SlAs had $2.8 billion ofaggregate AUM as of
December 31. 2011
(12) Certain accounts owned by or related to Athene, certain co-investment vehicles and certain funds with AUM less than $500 million have been excluded. These accounts, co-investment
vehicles and funds had $5.3 billion of aggregate AUM as of December 31, 2011
(13) Remaining cost for certain ofour credit fends may include physical cash called, invested or reserved for certain levered investments.
23
EFTA00623383
Investment Records
Liquid / Performing
APOLLO
Net Returns
(S in millions)
Vintage Year
Total A M
For the Three
Months Ended
12/31/15
For the Year Ended
12/31/15
For the Three
Months Ended
12/31/14
For the Year Ended
12/31/14
Credit:
Hedge Funds'"
Various
$7,109
(2)%
(1)%
3%
cLos12,
Various
13,437
(I)
2%
SIAs / (Merin))
Various
15,797
(I)
3
Total
S36,343
Permanent Capital Vehicles ex AAM / AAA
Total Returns"'
(Sin millions)
IPO Year"'
Total AUM
For the Three
Months Ended
12131/15
For the Year Ended
12/31/15
For the Three
Months Ended
12/31/14
For the Year Ended
12/31/14
MidCap Financial"'
N/A
$5,233
N/A
N/A
AIF
2013
369
(4)%
NNeel
Nmm
AFT
2011
413
(2)
(1)%
(1)%
AMTGP1
2011
3,844
(2)
(13)
5
19
Awns(*)
2004
5,699
(I)
(20)
(7)
(4)
Real Estate:
AR110
2009
2,654
13 %
17 %
7 %
II %
7btal
$18,212
Note: The above table summarizes the investment record for our Liquid/Performingemd Permanent Capital rehicks excluding AAAVAAA as defined in the non.GAAP financial information & definitions section of -this presentation. Al!
amounts arc at of December 31, 2013. unless chemise noted. Footnotes to the above tables appear on page 23.
24
EFTA00623384
ecords — Notes
A P 0 I. I. 0
(1)
Hedge funds includes Apollo Credit Strategies Master Fund Ltd., Apollo Credit Master Fund Litt, Apollo Credit Short Opportunities Fund and Apollo Value Strategic Fund, L.P
(2)
CLO returns are calculated based on gross return on invested assets, which excludes cash.
(3)
Total returns are based on the change in closing trading prices during the respective periods presented taking into account dividends and distributions, if any, as if they were reinvested
without regard to commission.
(4)
An initial public offering ("IPO ) year represents the year in which she vehicle commenced trading on a national securities exchange.
(5)
MidCap Financial is not a publicly traded vehicle and therefore IPO year is not applicable.
(6)
Returns have not been presented as the Permanent Capital Vehicle commenced investing capital less than 24 months prior to the period indicated and therefore such return information
was deemed not meaningful.
(7)
All amounts are as of September 30, 2015 except for total returns. Refer to untristapolloresidentialmortgage.com for the most recent financial information on AMTG. The information
contained on AMTG 's website is not part of this presentation.
(8)
All amounts are as of September 30, 2015 except for total returns. Refer to untrvapolloic.com for the most recent financial information on A1NV The information contained on AINV's
website is not part of this presentation. Includes $1.4 billion of AUM related to a private business development company sub-advised by Apollo. Net returns exclude performance of the
private business development company.
(9)
All amounts are as of September 30, 2015 except for total returns. Refer to uritrivapolloreitcom for the most recent financial information on AR!. The information contained on ARI's
website is not part of this presentation.
(10) SIAs/Other excludes $0.9 billion ofAUM related to advisory assets under management.
25
EFTA00623385
Share Rollforward
2Q15
34;1'15
APOLLO
4Q'14
IQ'I5
4Q'
F1"14
F1"15
Total GAAP Weighted Average Outstanding Class A
Shares - Basic and Restricted Shares
162,107,977
165,968,620
170,538,381
176,271,703
180,474,991
155,349,017
173,362,651
Non-GAAP Adjustments:
AOG Units
222,698,738
222,545,477
221,387,378
218,272,537
216.181.813
225,005,386
219,575,738
RSUs
16,284,481
14,672,264
11,697,803
8,358,613
5,331,288
19,541,458
9,984,862
Non-GAAP Weighted Average Diluted Shares
Outstanding
401,091,196
403,186,361
403,623,562
402,902,853
401.988,092
399,895,861
402,923,251
4Q.14 I
r
IQ'I5
2Q'15
3Q.15
4Q15
Total GAAP Outstanding Class A Shares - Basic and
Restricted Shares
163,046,554
167,912,379
172,188,169
179,008,102
181,078,937
Non-GAAP Adjustments:
AOG Units
222,680,477
222,455,477
220,637,976
216,197,356
216.169.856
Vested RSUs
17,354,242
13,755,489
10,968,849
7,640,612
6,294,053
Non-GAAP Diluted Shares Outstanding
403,081,273
404.123345
403,794,994
402,846,070
403,542.846
Unvested RSUs Eligible for Distribution Equivalents
4,988,367
4,681,555
4,708,862
4,812,386
6,232,175
Distributable Earnings Shares Outstanding
408,069,640
408,804.900
408,503,856
407,658,456
409.775.021
26
EFTA00623386
Non-GAAP inancial Informati
I!=
Apollo discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the
United States of America ("Non-GAAP"):
• "Economic Income" (previously referred to as Economic Net Income), or "El", as well as "Economic Net Income" (previously referred to as ENI After Taxes), or "ENI", are key
performance measures used by management in evaluating the performance of Apollo's private equity, credit and real estate segments. Management uses these performance measures in
making key operating decisions such as the following:
• Decisions related to the allocation of resources such as staffing decisions including hiring and locations for deployment of the new hires;
• Decisions related to capital deployment such as providing capital to facilitate growth for the business and/or to facilitate expansion into new businesses; and
• Decisions related to expenses, such as determining annual discretionary bonuses and equity-based compensation awards to its employees. With respect to compensation, management
seeks to align the interests of certain professionals and selected other individuals with those of the investors in the funds and those of Apollo's shareholders by providing such
individuals a profit sharing interest in the carried interest income earned in relation to the funds. To achieve that objective, a certain amount of compensation is based on Apollo's
performance and growth for the year.
• EI represents segment income (loss) before income tax provision excluding transaction-related charges arising from the 2007 private placement, and any acquisitions. Transaction-related
charges includes equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. In addition,
segment data excludes non-cash revenue and expense related to equity awards granted by unconsolidated affiliates to employees of the Company, as well as the assets, liabilities and
operating results of the funds and VIES that are included in the consolidated financial statements.
ENI represents El adjusted to reflect income tax provision on El that has been calculated assuming that all income is allocated to Apollo Global Management, LLC, which would occur
following an exchange of all AOG Units for Class A shares of Apollo Global Management, LLC. The economic assumptions and methodologies that impact the implied income tax provision
are similar to those methodologies and certain assumptions used in calculating the income tax provision for Apollo's consolidated statements of operations under U.S. GAAP.
"Distributable Earnings", or "DE", as well as "DE After Taxes and Related Payables" are derived from Apollo's segment reported results, and are supplemental measures to assess
performance and amounts available for distribution to Class A shareholders, holders of RSUs that participate in distributions and holders of AOG Units. DE represents the amount of net
realized earnings wi0hout the effects of the consolidation of any of the affiliated funds. DE, which is a component of El, is the sum across all segments of (i) total management fees and
advisory and transaction fees, excluding monitoring fees received from Athene based on its capital and surplus (as defined in Apollo's transaction advisory services agreement with Athene),
(ii) other income (loss), excluding the gains (losses) arising from the reversal of a portion of the tax receivable agreement liability, (iii) realized carried interest income, and (iv) realized
investment income, less (i) compensation expense, excluding the expense related to equity-based awards, (ii) realized profit sharing expense, and (iii) non-compensation expenses, excluding
depreciation and amortization expense. DE After Taxes and Related Payables represents DE less estimated current corporate, local and non-U.S. taxes as well as the payable under Apollo's
tax receivable agreement.
27
EFTA00623387
Non-GA
A PC) I. I. 0
• "Assets Under Management", or "ACM", refers to the assets we manage or advise for the funds, partnerships and accounts to which we provide investment management or advisory
services, including, without limitation, capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our AUM equals the sum of:
i) the fair value of the investments of the private equity funds, partnerships and accounts we manage or advise plus the capital that such funds, partnerships and accounts are entitled to call
from investors pursuant to capital commitments;
ii) the net asset value, or "NAV," of the credit funds, partnerships and accounts for which we provide investment management or advisory services, other than certain collateralized loan
obligations ("CLOs") and collateralized debt obligations ("CDOs"), which have a fee-generating basis other than the mark-to-market value of the underlying assets, plus used or
available leverage and/or capital commitments;
iii) the gross asset value or net asset value of the real estate funds, partnerships and accounts we manage or advise, and the structured portfolio company investments of the funds,
partnerships and accounts we manage or advise, which includes the leverage used by such structured portfolio company investments;
iv) the incremental value associated with the reinsurance investments of the portfolio company assets we manage or advise; and
v) the fair value of any other assets that we manage or advise for the funds, partnerships and accounts to which we provide investment management or advisory services, plus unused credit
facilities, including capital commitments to such funds, partnerships and accounts for investments that may require pre-qualification before investment plus any other capital
commitments to such funds, partnerships and accounts available for investment that are not otherwise included in the clauses above.
Our AUM measure includes Assets Under Management for which we charge either no or nominal fees. In addition our AUM measure includes certain assets for which we do not have
investment discretion. Our definition of AUM is not based on any definition of Assets Under Management contained in our operating agreement or in any of our Apollo fund management
agreements. Given the differences in the investment strategies and structures among other alternative investment managers, our calculation of AUM may differ from the calculations
employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. Our calculation also
differs from the manner in which our affiliates registered with the SEC report "Regulatory Assets Under Management" on Form ADV and Form PF in various ways.
We use AUM as a performance measurement of our investment activities, as well as to monitor fund size in relation to professional resource and infrastructure needs.
• "AUM with Future Management Fee Potential" refers to the committed uninvested capital portion of total AUM not currently earning management fees. The amount depends on the
specific terms and conditions of each fund.
• "Fee-Generating AUM" consists of assets we manage or advise for the funds, partnerships and accounts to which we provide investment management or advisory services and on
which we earn management fees, monitoring fees pursuant to management or other fee agreements on a basis that varies among the Apollo funds, partnerships and accounts we manage
or advise. Management fees are normally based on "net asset value," "gross assets," "adjusted par asset value," "adjusted cost of all unrealized portfolio investments," "capital
commitments," "adjusted assets," "stockholders' equity," "invested capital" or "capital contributions," each as defined in the applicable management agreement. Monitoring fees, also
referred to as advisory fees, with respect to the structured portfolio company investments of the funds, partnerships and accounts we manage or advise, are generally based on the total
value of such structured portfolio company investments, which normally includes leverage, less any portion of such total value that is already considered in Fee-Generating AUM.
• "Carry-Eligible AUM" refers to the AUM that may eventually produce carried interest income. All funds for which we are entitled to receive a carried interest income allocation are
included in Carry-Eligible AUM, which consists of the following:
• "Carry-Generating AUM", which refers to invested capital of the funds, partnerships and accounts we manage or advise, that is currently above its hurdle rate or preferred return,
and profit of such funds, partnerships and accounts is being allocated to the general partner in accordance with the applicable limited partnership agreements or other governing
agreements;
• "AUM Not Currently Generating Carry", which refers to invested capital of the funds, partnerships and accounts we manage or advise that is currently below its hurdle rate or
preferred return; and
• "Uninvested Carry-Eligible AUM", which refers to capital of the funds, partnerships and accounts we manage or advise that is available for investment or reinvestment subject to
the provisions of applicable limited partnership agreements or other governing agreements, which capital is not currently part of the NAV or fair value of investments that may
eventually produce carried interest income allocable to the general partner.
28
EFTA00623388
Non-GAAP Finan
n & Definitions Cont' Ilk
_APOLLO
• "Capital deployed" or "Deployment" is the aggregate amount of capital that has been invested during a given period (which may, in certain cases, include leverage) by (i) our
drawdown funds (ii) SIAs that have a defined maturity date and (iii) funds and SlAs in our real estate debt strategy.
• "Drawdown" refers to commitment-based funds and certain SIAs in which investors make a commitment to provide capital at the formation of such funds and deliver capital when
called as investment opportunities become available. It includes Athene assets managed by AAM that are invested in commitment-based funds.
• "Distributable Earnings Sham Outstanding" or "DE Shares Outstanding" represents Non-GAAP Diluted Shares Outstanding and unvested RSUs that participate in distributions.
Management uses this measure in determining DE per share as well as DE After Taxes and Related Payables per share described below.
• "Dry Powder" represents the amount of capital available for investment or reinvestment subject to the provisions of the applicable limited partnership agreements or other governing
agreements of the funds, partnerships and accounts we manage.
• Gross IRR of a private equity fund represents the cumulative investment-related cash flows in the fund itself (and not any one investor in the fund) on the basis of the actual timing of
investment inflows and outflows (for unrealized investments assuming disposition on December 31, 2015 or other date specified) aggregated on a gross basis quarterly, and the return is
annualized and compounded before management fees, carried interest and certain other fund expenses (including interest incurred by the fund itself) and measures the returns on the
fund's investments as a whole without regard to whether all of the returns would, if distributed, be payable to the fund's investors.
• Gross IRR of a credit fund represents the annualized return of a fund based on the actual timing of all cumulative fund cash flows before management feN, carried interest income
allocated to the general partner and certain other fund expenses. Calculations may include certain investors that do not pay fees. The terminal value is the net asset value as of the
reporting date. Non- U.S. dollar denominated ("USD") fund cash flows and residual values are converted to USD using the spot rate as of the reporting date.
• Gross IRR of a real estate fund represents the cumulative investment-related cash flows in the fund itself (and not any one investor in the fund), on the basis of the actual timing of cash
inflows and outflows (for unrealized investments assuming disposition on December 31, 2015 or other date specified) starting on the date that each investment closes, and the return is
annualized and compounded before management fees, carried interest, and certain other fund expenses (including interest incurred by the fund itself) and measures the returns on the
fund's investments as a whole without regard to whether all of the returns would, if distributed, be payable to the fund's investors. Non-USD fund cash flows and residual values are
convened to USD using the spot rate as of the reporting date.
Gross Return of a credit or real estate fund is the monthly or quarterly time-weighted return that is equal to the percentage change in the value of a fund's portfolio, adjusted for all
contributions and withdrawals (cash flows) before the effects of management fees, incentive fees allocated to the general partner, or other fees and expenses. Returns of Athene Sub-
advised portfolios and CLOs represent the gross returns on invested assets, which exclude cash. Returns over multiple periods are calculated by geometrically linking each period's return
over time.
• "Inflows" represents (i) at the individual segment level, subscriptions, commitments, and other increases in available capital, such as acquisitions or leverage, net of inter-segment
transfers, and (ii) on an aggregate basis, the sum of Inflows across the private equity, credit and real estate segments.
• "Liquid/Performing" includes CLOs and other performing credit vehicles, hedge fund style credit funds, structured credit funds and SIAs. It also includes sub-advised managed
accounts owned by or related to Athene. Certain commitment-based SIAs are included as the underlying assets are liquid.
• "Multiple of Invested Capital" or "MOIC" is calculated as Total Value divided by Total Invested Capital.
• Net IRR of a private equity fund means the Gross IRR, including returns for related parties which may not pay fees or carried interest, net of management fees, certain fund expenses
(including interest incurred by the fund itself) and realized carried interest all offset to the extent of interest income, and measures returns on amounts that, if distributed, would be paid to
investors of the fund. To the extent that an Apollo private equity fund exceeds all requirements detailed within the applicable fund agreement, the estimated unrealized value is adjusted
such that a percentage of up to 20.0% of the unrealized gain is allocated to the general partner of the fund, thereby reducing the balance attributable to fund investors. Net IRR does not
represent the return to any fund investor.
• Net IRR of a credit fund represents the annualized return of a fund after management fees, carried interest income allocated to the general partner and certain other fund expenses,
calculated on investors that pay such fees. The terminal value is the net asset value as of the reporting date. Non-USD fund cash flows and residual values are converted to USD using the
spot rate as of the reporting date.
29
EFTA00623389
Non-GAAP Finan I
efinitions Cont'
APOLLO
• Net IRR of a real estate fund represents the cumulative cash flows in the fund (and not any one investor in the fund), on the basis of the actual timing of cash inflows received from and
outflows paid to investors of the fund (assuming the ending net asset value as of December 31, 2015 or other date specified is paid to investors), excluding certain non-fee and non-carry
bearing parties, and the return is annualized and compounded after management fees, carried interest, and certain other expenses (including interest incurred by the fund itself) and
measures the returns to investors of the fund as a whole. Non-USD fund cash flows and residual values are converted to USD using the spot rate as of the reporting date.
• Net Return of a credit or real estate fund represents the Gross Return after management fees, incentive fees allocated to the general partner, or other fees and expenses. Returns of
Athene sub-advised portfolios and CLOs represent the gross or net returns on invested assets, which exclude cash. Returns over multiple periods are calculated by geometrically linking
each period's return over time.
• "Non-GAAP Diluted Shares Outstanding" is calculated using the GAAP outstanding Class A shares plus non-GAAP adjustments assuming (i) the exchange of all of the AOG Units for
Class A shares and (ii) the settlement of the vested RSUs in the form of Class A shares during the period. Management uses this measure, taking into account the unvested RSUs that
participate in distributions, in determining our Class A shares eligible for cash distributions.
• "Non-GAAP Weighted Average Diluted Shares Outstanding" is calculated using the GAAP weighted average outstanding Class A shares plus non-GAAP adjustments assuming (i) the
exchange of all of the AOG Units for Class A shares and (ii) the settlement of the weighted average vested RSUs in the form of Class A shares during the period. Management uses this
measure in determining El and ENI per share.
"Permanent Capital Vehicles" refers to (a) assets that are managed by Athene Asset Management, L.P., (b) assets that are owned by or related to MidCap FinCo Limited and managed
by Apollo Capital Management, L.P., (c) assets of publicly traded vehicles managed by Apollo such as AP Alternative Assets, L.P. ("AAA"), Apollo Investment Corporation ("AINV"),
Apollo Commercial Real Estate Finance, Inc. ("ARI"), Apollo Residential Mortgage, Inc. ("AMTG"), Apollo Tactical Income Fund Inc. ("Air), and Apollo Senior Floating Rate Fund
Inc. ("AFT'), in each case that do not have redemption provisions or a requirement to return capital to investors upon exiting the investments made with such capital, except as required
by applicable law and (d) a private business development company sub-advised by Apollo. The investment management arrangements of AIN V, AIF and AFT have one year terms, are
reviewed annually and remain in effect only if approved by the boards of directors of such companies or by the affirmative vote of the holders of a majority of the outstanding voting
shares of such companies, including in either case, approval by a majority of the directors who are not "interested persons" as defined in the Investment Company Act of 1940. In
addition, the investment management arrangements of AIN V, AIF and AFT may be terminated in certain circumstances upon 60 days' written notice. The investment management
arrangements of ARI and AMTG have one year terms and are reviewed annually by each company's board of directors and may be terminated under certain circumstances by an
affirmative vote of at least two-thirds of such company's independent directors. The investment management arrangements between MidCap FinCo Limited and Apollo Capital
Management, L.P. and Athene and Athene Asset Management, L.P. may also be terminated under certain circumstances.
• "Realized Value" refers to all cash investment proceeds received by the relevant Apollo fund, including interest and dividends, but does not give effect to management fees, expenses,
incentive compensation or carried interest to be paid by such Apollo fund.
• "Remaining Cost" represents the initial investment of the general partner and limited partner investors in a fund, reduced for any retum of capital distributed to date, excluding
management fees, expenses, and any accrued preferred return.
• "Total Invested Capital" refers to the aggregate cash invested by the relevant Apollo fund and includes capitalized costs relating to investment activities, if any, but does not give effect
to cash pending investment or available for reserves.
• "Total Value" represents the sum of the total Realized Value and Unrealized Value of investments.
• Traditional Private Equity fund appreciation (depreciation) refers to gain (loss) and income for the traditional private equity funds (i.e., Funds 1-VIII) for the periods presented on a
total return basis before giving effect to fees and expenses. The performance percentage is determined by dividing (a) the change in the fair value of investments over the period
presented, minus the change in invested capital over the period presented, plus the realized value for the period presented, by (b) the beginning unrealized value for the period presented
plus the change in invested capital for the period presented.
• "Unrealized Value" refers to the fair value consistent with valuations determined in accordance with GAAP, for investments not yet realized and may include pay in kind, accrued
interest and dividends receivable, if any. In addition, amounts include committed and funded amounts for certain investments.
30
EFTA00623390
Forward ooking Statem
■
A P 0 I. I, 0
In this presentation, references to "Apollo," "we," "us," "our" and the "Company" refer collectively to Apollo Global Management, LLC, together with its consolidated
subsidiaries. This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo's expectations regarding
the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These fonvard-looking statements
are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this presentation, the words
"believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that
the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These
statements are subject to certain risks, uncertainties and assumptions, including risks relating to our dependence on certain key personnel, ow ability to raise new private
equity, credit or real estate funds, market conditions, generally, our ability to manage our growth, fund performance, changes in ow regulatory environment and tax status,
the variability of ow revenues, net income and cash flow, ow use of leverage to finance our businesses and investments by our funds and litigation risks, among others.
We believe these factors include but are not limited to those described under the section entitled "Risk Factors" in Apollo's annual report on Form 10-K filed with the SEC
on February 27, 2015, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov.
These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in
other filings. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or
otherwise, except as required by applicable law. This presentation does not constitute an offer of any Apollo fund.
31
EFTA00623391
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