Apollo Global Management reported its financial results for the first quarter of 2025, showcasing record Fee Related Earnings (FRE) of $559 million, a 21% increase year-over-year. Despite this growth, Principal Investing Income (PII) declined to $14 million from $21 million in Q1 2024, primarily due to higher principal investing compensation expense. Net income attributable to Apollo Global Management, Inc. decreased to $442 million ($0.68 EPS) in Q1 2025 from $1,427 million ($2.31 EPS) in Q1 2024, influenced by investment-related gains/losses within Retirement Services and a charitable contribution.
The firm's Asset Management segment demonstrated robust activity, with origination volume reaching $56 billion in Q1 2025, marking a nearly 30% increase year-over-year. This strong origination fueled the Capital Solutions business, which generated $154 million in fee income, up 15.4% year-over-year. Apollo also saw significant momentum in its Global Wealth channel, with fundraising approaching $5 billion in Q1 2025, an 85% increase compared to the prior year.
In its Retirement Services segment, anchored by Athene, the company achieved record organic inflows of $20 billion during the quarter, contributing to a 5.5% increase in net invested assets to $262.4 billion. Net investment income rose to $4.3 billion, up 21.4% year-over-year, driven by asset growth and higher rates on new deployments. However, the net investment spread experienced pressure, declining by 18 basis points year-over-year to 1.65% (129 bps ex-notables), mainly due to a higher cost of funds at 3.46%, up 36 basis points year-over-year.
Apollo maintains a strong liquidity position with $12.9 billion of unrestricted cash and cash equivalents and $5.1 billion available from credit facilities as of March 31, 2025. Management projects Fee Related Earnings to grow at an average annual rate of 20% over the next five years, with 2025 growth anticipated in the 15-20% range. Spread Related Earnings are expected to see mid-single-digit growth in 2025, with a return to 10% average annual growth over the five-year plan period.
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