Apollo Global Management, a financial firm based in New York, has reported a remarkable surge in net income, reaching $1 billion in the April-June quarter. This represents an impressive 75 percent increase in adjusted net income, amounting to $1.7 per share.
In response to this outstanding financial performance, Apollo’s stock experienced a substantial boost of 6.3 percent, reaching $86.47 per share, marking the most significant surge in over four months.
CEO Marc Rowan highlighted the recognition of the vast potential within private credit by the industry and investors, stating that the tangible outcomes of their efforts are becoming more evident.
A key player for Apollo, the Athene insurance subsidiary, reported a remarkable 76 percent surge in spread-related profits, reaching a total of $799 million. This growth was driven by robust inflows and the upward trajectory of interest rates. Simultaneously, the net investment spread also experienced a substantial increase of 66 percent, amounting to $1 billion, as higher interest rates mitigated the rise in fund costs.
These results demonstrate Apollo’s unwavering focus on credit and insurance, with Athene contributing over 80 percent of the adjusted net income during the June quarter.
Apollo’s executives praised the company’s expansion in originating private credit investments, which are subsequently syndicated to insurance firms and other external clients. They believe that the potential market for private investment-grade securities could extend beyond the insurance sector, matching its size within it.
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