Apollo Global Management Inc.
08/10/2026 | Press release | Distributed by Public on 08/10/2026 05:33
Quarterly Report for Quarter Ending JUNE 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with Apollo Global Management, Inc.'s condensed consolidated financial statements and the related notes within this quarterly report. This discussion contains forward-looking statements that are subject to known and unknown risks and uncertainties. Actual results and the timing of events may differ significantly from those expressed or implied in such forward-looking statements due to a number of factors, including those included in the section entitled "Item 1A. Risk Factors" in our 2025 Annual Report. The highlights listed below have had significant effects on many items within our condensed consolidated financial statements and affect the comparison of the current period's activity with those of prior periods.
General
Our Businesses
Founded in 1990, Apollo is a high-growth, global alternative asset manager and a retirement services provider. Apollo conducts its business primarily in the U.S. through the following three reportable segments: Asset Management, Retirement Services and Principal Investing. These business segments are differentiated based on the investment services they provide as well as varying investing strategies.
Asset Management
Our Asset Management segment focuses on credit and equity investing strategies. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company's capital structure. We raise, invest and manage funds, accounts and other vehicles on behalf of some of the world's most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. As of June 30, 2026, we had total AUM of $1.05 trillion.
The credit and equity investing strategies of our Asset Management segment reflect the range of investment capabilities across our platform, from investment grade to private equity. As an asset manager, we earn fees for providing investment management services and expertise to our client base. The amount of fees charged for managing these assets depends on the underlying investment strategy, liquidity profile, and, ultimately, our ability to generate returns for our clients. We also earn capital solutions fees as part of our growing capital solutions business and as part of monitoring and deployment activity alongside our private equity franchise. After expenses, we call the resulting earnings stream "Fee Related Earnings" or "FRE", which represents the primary performance measure for the Asset Management segment.
Credit
Credit is our largest asset management strategy with $849 billion of AUM as of June 30, 2026. Our credit strategy spans third-party strategies and Apollo's retirement services business across four main investment pillars: direct origination, asset-backed, multi credit and opportunistic credit. Our credit strategy provides flexible, scaled and diverse capital solutions across the entire credit risk-return spectrum, with a focus on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the investors in the funds we manage.
Equity
Our equity strategy managed $198 billion of AUM as of June 30, 2026. Across our equity strategy, we maintain our focus on creative structuring and sourcing while working with the management teams of the portfolio companies of the Apollo-managed funds to help transform and grow their businesses. Our flexible mandate and purchase price discipline allow us to embrace complexity and seek attractive outcomes for our stakeholders. Apollo's equity team has experience across sectors, industries, and geographies spanning its private equity, hybrid value, secondaries equity, AAA, real estate equity, infrastructure and clean transition equity strategies. We have consistently produced attractive long-term investment returns in the traditional private equity funds we manage, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through June 30, 2026.
Acquisition of Bridge
On September 2, 2025, we completed the previously announced acquisition of Bridge in an all-stock transaction. As a result, Bridge became a consolidated subsidiary of AAM, and its results are included in the condensed consolidated financial statements commencing from the Acquisition Date.
Retirement Services
Our retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene's primary product line is annuities, which include fixed rate, indexed, payout and group annuities issued in connection with pension group annuity transactions and benefit plans. Athene also offers funding agreements and guaranteed investment contracts issued in connection with defined contribution plans. Funding agreements are composed of funding agreements issued under its FABN program, secured and other funding agreements, which include Athene's FABR program and direct funding agreements, funding agreements issued to the FHLB and repurchase agreements with an original maturity exceeding one year. Guaranteed investment contracts support stable value investment options within defined contribution plans and allow the contract holder to earn a guaranteed return of principal plus interest. Our asset management business provides a full suite of services for Athene's investment portfolio, including direct investment management, asset allocation, mergers and acquisitions asset diligence, and certain operational support services including investment compliance, tax, legal and risk management support.
Our retirement services business focuses on generating spread income by combining the two core competencies of (1) sourcing long-term, persistent liabilities and (2) using the global scale and reach of our asset management business to actively source or originate assets with Athene's preferred risk and return characteristics. Athene's investment philosophy is to invest a portion of its assets in securities that earn an incremental yield by taking measured liquidity and complexity risk and capitalize on its long-dated, persistent liability profile to prudently achieve higher net investment earned rates, rather than assuming incremental credit risk. A cornerstone of Athene's investment philosophy is that given the operating leverage inherent in its business, modest investment outperformance can translate to outsized return performance. Because Athene maintains discipline in underwriting attractively priced liabilities, it has the ability to invest in a broad range of high-quality assets to generate attractive earnings.
Principal Investing
Our Principal Investing segment is composed of our realized performance fee income, realized investment income earned from our balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company. The Principal Investing segment also includes our growth capital and liquidity resources at AGM. Over time, we may deploy capital into strategic investments that will help accelerate the growth of our Asset Management segment, by broadening our investment management and/or product distribution capabilities or increasing the scalability and/or efficiency of our existing operations. We believe these investments may translate into greater compounded annual growth of Fee Related Earnings.
Given the cyclical nature of realized performance fees, earnings from our Principal Investing segment, or PII, are inherently more volatile in nature than earnings from the Asset Management and Retirement Services segments. We earn fees based on the investment performance of the funds, partnerships and accounts we manage and compensate our employees, primarily investment professionals, with a meaningful portion of these proceeds to align our team with investors whose capital we manage and incentivize them to deliver strong investment performance over time. To enhance this alignment, we have increased the proportion of performance fee income we pay to our employees over time.
Business Environment
Economic and Market Conditions
Our asset management and retirement services businesses are affected by the condition of global financial markets and the economy. Price fluctuations within equity, credit, commodity and foreign exchange markets, as well as interest rates and global inflation, which may be volatile and mixed across geographies, can significantly impact the performance of our business, including, but not limited to, the valuation of investments, including those of the funds we manage, and related income we may recognize.
Adverse economic conditions may result from domestic and global economic and political developments, including slower economic growth and business activity, changes in U.S. and foreign tariff policies, civil unrest, geopolitical tensions or military action, such as the armed conflicts in the Middle East, including with Iran, and between Ukraine and Russia, and related sanctions. Additional risks include new or evolving legal and regulatory requirements affecting business investment, hiring, migration, labor supply and global supply chains, as well as disruptions to energy markets and critical shipping routes.
Uncertainty surrounding U.S. trade policy, the conflict with Iran and persistent inflation remain downside risks. However, U.S. economic activity remains resilient, supported by consumer spending, investment in artificial intelligence infrastructure, increased domestic manufacturing and fiscal stimulus. These drivers continue to support solid growth and a modest risk of recession. Tariffs remain inflationary and may weigh on growth and corporate earnings, with the ultimate impact dependent on their scope, duration and the outcome of trade negotiations.
Inflation remains elevated, limiting the scope of monetary easing and placing upward pressure on shorter term rates. Simultaneously, fiscal deficits and increased U.S. Treasury issuances may place upward pressure on longer term rates, increasing the likelihood that interest rates and credit yields remain elevated.
We carefully monitor economic and market conditions, including global inflation, that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives. U.S. inflation remains elevated, with the U.S. Bureau of Labor Statistics reporting the annual U.S. inflation rate increased to 3.5% as of June 30, 2026, compared to 3.3% as of March 31, 2026. The U.S. Federal Reserve has a current benchmark interest rate target range of 3.50% to 3.75%, unchanged from its December 2025 meeting.
Equity market performance was strong during the second quarter of 2026. In the U.S., the S&P 500 Index increased by 14.9% during the second quarter of 2026, following a decrease of 4.6% in the first quarter of 2026. Global equity markets increased during the quarter, with the MSCI All Country World ex USA Index increasing by 10.5%, following a decrease of 0.8% in the first quarter of 2026.
Conditions in the credit markets may have a significant impact on our business. Credit fundamentals remain generally constructive, with default rates in high yield bonds and leveraged loans declining and distressed exchanges moderating. Current stresses in software and artificial intelligence related credit appear concentrated rather than indicative of a broader macroeconomic downturn. Credit markets experienced increases in the second quarter of 2026, with the BofAML HY Master II Index increasing by 2.5% and the Morningstar/LSTA Leveraged Loan Index increasing by 1.2%.
In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP increased at an annual rate of 1.5% in the second quarter of 2026, following an increase of 2.1% in the first quarter of 2026. As of July 2026, the International Monetary Fund estimated the U.S. economy will expand by 2.3% in 2026 and 2.2% in 2027. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate decreased to 4.2% as of June 30, 2026.
Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. Strong foreign demand for U.S. assets remains an important support for the U.S. dollar. The U.S. dollar strengthened in the second quarter of 2026 compared to the euro and Japanese yen, however, the U.S. dollar weakened compared to the British pound. Relative to the U.S. dollar, the euro depreciated 1.1% during the second quarter of 2026, after depreciating 1.6% in the first quarter of 2026 and the Japanese yen depreciated 2.4% in the second quarter of 2026, after depreciating 1.3% in the first quarter of 2026, while the British pound appreciated 0.3% during the second quarter of 2026, after depreciating 1.8% in the first quarter of 2026. We generally undertake hedging activities to eliminate or mitigate foreign exchange currency risk. Oil prices ended the second quarter of 2026 down 31.4% from the first quarter of 2026, primarily related to the temporary easing of tensions in the ongoing conflict in the Middle East.
We are actively monitoring the developments in Ukraine resulting from the Russia/Ukraine conflict and the economic sanctions and restrictions imposed against Russia, Belarus, and certain Russian and Belarusian entities and individuals. The Company continues to (i) identify and assess any exposure to designated persons or entities across the Company's business; (ii) ensure existing surveillance and controls are calibrated to the evolving sanctions; and (iii) ensure appropriate levels of communication across the Company, and with other relevant market participants, as appropriate.
As of June 30, 2026, the funds we manage have no investments that would cause Apollo or any Apollo managed fund to be in violation of current international sanctions, and we believe the direct exposure of investment portfolios of the funds we manage
to Russia and Ukraine is insignificant. The Company and the funds we manage do not intend to make any new material investments in Russia, and have appropriate controls in place to ensure review of any new exposure.
Institutional investors continue to allocate capital towards alternative investment managers in search of more attractive returns, and we believe the business environment remains generally accommodative to raise larger successor funds, launch new products, and pursue attractive strategic growth opportunities and addressable markets.
Private credit, which represents an estimated $40 trillion primarily investment-grade market, has experienced heightened focus, generating industry inquiries around liquidity, valuation methodologies, global wealth access and technology-related portfolio allocations. We believe such inquiries are natural to an evolving asset class that is experiencing strong overall growth. However, the magnified focus has corresponded to increased redemption requests within perpetual non-traded business development company structures across the industry, resulting in lower growth for these products.
While investor demand for perpetual non-traded business development company structures may experience variability, we believe that the long-term opportunity to provide investors with access to private credit, both investment-grade and sub investment-grade, will remain compelling across cycles.
Interest Rate Environment
Medium and long-term rates increased during the second quarter of 2026, with the U.S. 10-year Treasury yield at 4.44% as of June 30, 2026, compared to 4.30% as of March 31, 2026. Short-term rates increased during the second quarter of 2026, with the 3-month secured overnight financing rate at 3.73% as of June 30, 2026, compared to 3.68% as of March 31, 2026.
With respect to Retirement Services, Athene's investment portfolio predominantly consists of fixed maturity investments. If prevailing interest rates were to rise, we believe the yield on Athene's new investment purchases may also rise and its investment income from floating rate investments would increase, while the value of its existing investments may decline. If prevailing interest rates were to decline significantly, the yield on Athene's new investment purchases may decline and its investment income from floating rate investments would decrease, while the value of its existing investments may increase.
Athene addresses interest rate risk through managing the duration of the liabilities it sources with assets it acquires through asset liability management ("ALM") modeling. As part of its investment strategy, Athene purchases floating rate investments, which are expected to perform well in a rising interest rate environment and are expected to underperform in a declining rate environment. Athene manages its interest rate risk in a declining rate environment through hedging activity or the issuance of additional floating rate liabilities to lower its overall net floating rate position. As of June 30, 2026, Athene's net invested asset portfolio included $71.2 billion of floating rate assets, or 23% of its net invested assets, and its net reserve liabilities included $68.9 billion of floating rate liabilities at notional, or 22% of its net invested assets, resulting in $2.3 billion of net floating rate assets, or 1% of its net invested assets. Athene's floating rate asset position includes floating rate investments and cash and cash equivalents on a net invested asset basis, adjusted for net investment payables/receivables and cash posted as collateral for derivative transactions.
If prevailing interest rates were to rise, we believe Athene's products would be more attractive to consumers and its sales would likely increase. If prevailing interest rates were to decline, it is likely that Athene's products would be less attractive to consumers and its sales would likely decrease. In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent Athene is unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions. A significant majority of Athene's deferred annuity products have crediting rates that it may reset annually upon renewal, following the expiration of the current guaranteed period. While Athene has the contractual ability to lower these crediting rates to the guaranteed minimum levels at renewal, its willingness to do so may be limited by competitive pressures. Athene's funding agreements and other investment-type contracts provide little to no discretionary ability to change the rates of interest that determine the amounts payable to the respective policyholder or institution. Other investment-type contracts include immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.
See "Part I-Item 3. Quantitative and Qualitative Disclosures About Market Risk" in this report and "Part II-Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our 2025 Annual Report, which include a discussion regarding interest rate and other significant risks and our strategies for managing these risks.
Overview of Results of Operations
Financial Measures under U.S. GAAP - Asset Management
The following discussion of financial measures under U.S. GAAP is based on Apollo's asset management business as of June 30, 2026.
Revenues
Management Fees
The significant growth of the assets we manage has had a positive effect on our revenues. Management fees are typically calculated based upon any of "net asset value," "gross assets," "adjusted par asset value," "adjusted costs of all unrealized portfolio investments," "capital commitments," "invested capital," "adjusted assets," "capital contributions," or "stockholders' equity," each as defined in the applicable limited partnership agreement and/or management agreement of the unconsolidated funds or accounts.
Advisory and Transaction Fees, Net
As a result of providing advisory services with respect to actual and potential investments, we are entitled to receive fees for transactions related to the acquisition and, in certain instances, disposition and financing of companies, some of which are portfolio companies of the funds we manage, as well as fees for ongoing monitoring of portfolio company operations and directors' fees. We also receive advisory fees for advisory services provided to certain funds. In addition, monitoring fees are generated on certain structured portfolio company investments. Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage (up to 100%) of such advisory and transaction fees, net of applicable broken deal costs ("Management Fee Offset"). Such amounts are presented as a reduction to advisory and transaction fees, net, in the condensed consolidated statements of operations.
Performance Fees
The general partners of the funds we manage are entitled to an incentive return of normally up to 20% of the total returns of a fund's capital, depending upon performance of the underlying funds and subject to preferred returns and high water marks, as applicable. Performance fees, categorized as performance allocations, are accounted for as an equity method investment, and effectively, the performance fees for any period are based upon an assumed liquidation of the funds' assets at the reporting date, and distribution of the net proceeds in accordance with the funds' allocation provisions. Performance fees categorized as incentive fees, which are not accounted for as an equity method investment, are deferred until fees are probable to not be significantly reversed. The majority of performance fees consist of performance allocations.
As of June 30, 2026, approximately 31% of the value of the investments of the funds we manage, on a gross basis, was determined using market-based valuation methods (i.e., reliance on broker or listed exchange quotes) and the remaining 69% was determined primarily by comparable company and industry multiples or discounted cash flow models. See "Item 1A. Risk Factors-Risks Relating to Our Asset Management Business-The performance of the funds we manage, and our performance, may be adversely affected by the financial performance of portfolio companies of the funds we manage and the industries in which the funds we manage invest" in our 2025 Annual Report for discussion regarding certain industry-specific risks that could affect the fair value of certain of the portfolio company investments of the funds we manage.
In certain funds we manage, generally in our equity strategy, the Company does not earn performance fees until the investors have achieved cumulative investment returns on invested capital (including management fees and expenses) in excess of an 8% hurdle rate. Additionally, certain of the credit funds we manage have various performance fee rates and hurdle rates. Certain of the credit funds we manage allocate performance fees to the general partner in a similar manner as the equity funds. In certain funds we manage, as long as the investors achieve their priority returns, there is a catch-up formula whereby the Company earns a priority return for a portion of the return until the Company's performance fees equate to its performance fee rate for that fund; thereafter, the Company participates in returns from the fund at the performance fee rate. Performance fees, categorized as performance allocations, are subject to reversal to the extent that the performance fees distributed exceed the amount due to the general partner based on a fund's cumulative investment returns. The Company recognizes potential repayment of previously received performance fees as a general partner obligation representing all amounts previously distributed to the general partner that would need to be repaid to the Apollo funds if these funds were to be liquidated based on the current fair value of the
underlying fund's investments as of the reporting date. The actual general partner obligation, however, would not become payable or realized until the end of a fund's life or as otherwise set forth in the respective limited partnership agreement of the fund.
The table below presents an analysis of Apollo's (i) performance fees receivable on an unconsolidated basis, (ii) unrealized performance fees and (iii) realized performance fees, inclusive of realized incentive fees:
| June 30, 2026 |
Performance Fees for the Three Months Ended June 30, 2026
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Performance Fees for the Six Months Ended June 30, 2026
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| (In millions) | Performance Fees Receivable on an Unconsolidated Basis | Unrealized | Realized | Total | Unrealized | Realized | Total | ||||||||||||||||||||||||||||||||||
| Accord and Accord+ Funds | $ | 76 | $ | 8 | $ | 2 | $ | 10 | $ | 11 | $ | 9 | $ | 20 | |||||||||||||||||||||||||||
| AIOF I, II and III | 22 | (2) | - | (2) | (28) | - | (28) | ||||||||||||||||||||||||||||||||||
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ANRP I, II and III1
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47 | (21) | 19 | (2) | (24) | 19 | (5) | ||||||||||||||||||||||||||||||||||
| Athora | - | (5) | - | (5) | (22) | - | (22) | ||||||||||||||||||||||||||||||||||
| Champ L.P. | 16 | - | - | - | (148) | 141 | (7) | ||||||||||||||||||||||||||||||||||
| Credit Strategies | 56 | 12 | 1 | 13 | 49 | 5 | 54 | ||||||||||||||||||||||||||||||||||
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EPF Funds1
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52 | 9 | - | 9 | 20 | - | 20 | ||||||||||||||||||||||||||||||||||
| FCI Funds | 89 | 1 | - | 1 | (1) | - | (1) | ||||||||||||||||||||||||||||||||||
| Freedom Parent Holdings | 15 | 5 | - | 5 | 15 | - | 15 | ||||||||||||||||||||||||||||||||||
| Fund X | 542 | 93 | 7 | 100 | 61 | 68 | 129 | ||||||||||||||||||||||||||||||||||
| Fund IX | 918 | (91) | - | (91) | (217) | 65 | (152) | ||||||||||||||||||||||||||||||||||
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Fund VIII2
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132 | 308 | 1 | 309 | 199 | 2 | 201 | ||||||||||||||||||||||||||||||||||
| Fund VI | 43 | - | 2 | 2 | - | 4 | 4 | ||||||||||||||||||||||||||||||||||
| HVF I | 70 | (3) | 4 | 1 | (11) | 14 | 3 | ||||||||||||||||||||||||||||||||||
| HVF II | 220 | (3) | 30 | 27 | 30 | 30 | 60 | ||||||||||||||||||||||||||||||||||
| HVF III | 36 | 29 | - | 29 | 36 | - | 36 | ||||||||||||||||||||||||||||||||||
| MidCap FinCo | 38 | - | 5 | 5 | - | 10 | 10 | ||||||||||||||||||||||||||||||||||
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Redding Ridge Holdings
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231 | 22 | 8 | 30 | 36 | 16 | 52 | ||||||||||||||||||||||||||||||||||
| Bridge Funds | 95 | (28) | 2 | (26) | (51) | 12 | (39) | ||||||||||||||||||||||||||||||||||
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Other1,3
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574 | (14) | 115 | 101 | (56) | 221 | 165 | ||||||||||||||||||||||||||||||||||
| Total | $ | 3,272 | $ | 320 | $ | 196 | $ | 516 | $ | (101) | $ | 616 | $ | 515 | |||||||||||||||||||||||||||
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Total, net of profit sharing payable4/expense
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$ | 1,511 | $ | 167 | $ | 86 | $ | 253 | $ | (46) | $ | 209 | $ | 163 | |||||||||||||||||||||||||||
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1 As of June 30, 2026, certain funds had $163 million in general partner obligations to return previously distributed performance fees. The fair value gain on investments and income at the fund level needed to reverse the general partner obligations was $2.4 billion as of June 30, 2026.
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2 As of June 30, 2026, the remaining investments and escrow cash of Fund VIII was valued at 102% of the fund's unreturned capital, which was below the required escrow ratio of 115%. As a result, the fund is required to place in escrow current and future performance fee distributions to the general partner until the specified return ratio of 115% is met (at the time of a future distribution) or upon liquidation. As of June 30, 2026, Fund VIII had $164 million of gross performance fees, or $92 million net of profit sharing in escrow. With respect to Fund VIII, realized performance fees currently distributed to the general partner are limited to potential tax distributions and interest on escrow balances per the fund's partnership agreement. Performance fees receivable as of June 30, 2026 and realized performance fees for the three and six months ended June 30, 2026 include interest earned on escrow balances that is not subject to contingent repayment.
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3 Other includes certain SIAs.
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4 There was a corresponding profit sharing payable of $1.8 billion as of June 30, 2026, including profit sharing payable related to amounts in escrow and contingent consideration obligations of $56 million.
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The general partners of certain of the funds we manage accrue performance fees, categorized as performance allocations, when the fair value of investments exceeds the cost basis of the individual investors' investments in the fund, including any allocable share of expenses incurred in connection with such investments, which we refer to as "high water marks." These high water marks are applied on an individual investor basis. Certain of the funds we manage have investors with various high water marks, the achievement of which is subject to market conditions and investment performance.
Performance fees from certain funds we manage are subject to contingent repayment by the general partner in the event of future losses to the extent that the cumulative performance fees distributed from inception to date exceeds the amount computed
as due to the general partner at the final distribution. These general partner obligations, if applicable, are included in due to related parties on the condensed consolidated statements of financial condition.
The following table summarizes our performance fees since inception through June 30, 2026:
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Performance Fees Since Inception1
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| (In millions) | Undistributed by Fund and Recognized |
Distributed by Fund and Recognized2
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Total Undistributed and Distributed by Fund and Recognized3
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General Partner Obligation3
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Maximum Performance Fees Subject to Potential Reversal4
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| Accord and Accord+ Funds | $ | 76 | $ | 157 | $ | 233 | $ | - | $ | 130 | |||||||||||||||||||
| AIOF I, II and III | 22 | 86 | 108 | - | 39 | ||||||||||||||||||||||||
| ANRP I, II and III | 47 | 225 | 272 | 28 | 100 | ||||||||||||||||||||||||
| Champ L.P. | 16 | 134 | 150 | - | 13 | ||||||||||||||||||||||||
| Credit Strategies | 56 | 611 | 667 | - | 55 | ||||||||||||||||||||||||
| EPF Funds | 52 | 567 | 619 | 109 | 65 | ||||||||||||||||||||||||
| FCI Funds | 89 | 24 | 113 | - | 89 | ||||||||||||||||||||||||
| Freedom Parent Holdings | 15 | 194 | 209 | - | 15 | ||||||||||||||||||||||||
| Fund X | 542 | 211 | 753 | - | 637 | ||||||||||||||||||||||||
| Fund IX | 918 | 1,744 | 2,662 | - | 1,814 | ||||||||||||||||||||||||
| Fund VIII | 132 | 1,792 | 1,924 | - | 1,104 | ||||||||||||||||||||||||
| Fund VII | - | 3,271 | 3,271 | - | - | ||||||||||||||||||||||||
| Fund VI | 43 | 1,664 | 1,707 | - | - | ||||||||||||||||||||||||
| Fund IV and Fund V | - | 2,023 | 2,023 | 1 | - | ||||||||||||||||||||||||
| HVF I | 70 | 270 | 340 | - | 210 | ||||||||||||||||||||||||
| HVF II | 220 | 141 | 361 | - | 283 | ||||||||||||||||||||||||
| HVF III | 36 | - | 36 | - | 36 | ||||||||||||||||||||||||
| MidCap FinCo | 38 | 166 | 204 | - | 38 | ||||||||||||||||||||||||
| Redding Ridge Holdings | 231 | - | 231 | - | 215 | ||||||||||||||||||||||||
| Bridge Funds | 95 | 21 | 116 | - | 59 | ||||||||||||||||||||||||
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Other5
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574 | 2,978 | 3,552 | 25 | 695 | ||||||||||||||||||||||||
| Total | $ | 3,272 | $ | 16,279 | $ | 19,551 | $ | 163 | $ | 5,597 | |||||||||||||||||||
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1 Certain funds are denominated in euros and historical figures are translated into U.S. dollars at an exchange rate of €1.00 to $1.14 as of June 30, 2026. Certain funds are denominated in pounds sterling and historical figures are translated into U.S. dollars at an exchange rate of £1.00 to $1.33 as of June 30, 2026.
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2 Amounts exclude certain performance fees from business development companies and Redding Ridge Holdings, an affiliate of Redding Ridge.
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3 Amounts were computed based on the fair value of fund investments on June 30, 2026. Performance fees have been allocated to and recognized by the general partner. Based on the amount allocated, a portion is subject to potential reversal or, to the extent applicable, has been reduced by the general partner obligation to return previously distributed performance fees as of June 30, 2026. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of the fund's investments based on contractual termination of the fund.
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4 Represents the amount of performance fees that would be reversed if remaining fund investments became worthless on June 30, 2026. Amounts subject to potential reversal of performance fees include amounts undistributed by a fund (i.e., the performance fees receivable), as well as a portion of the amounts that have been distributed by a fund, net of taxes and not subject to a general partner obligation to return previously distributed performance fees, except for those funds that are gross of taxes as defined in the respective funds' governing documents.
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5 Other includes certain SIAs.
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Property Management, Development and Other Fees
Apollo provides property management services through Bridge. Apollo earns property management fees over time as the related services are provided under the terms of the respective property management agreements. Apollo also earns leasing commission revenue associated with the leasing of commercial assets, which is recognized upon the execution of the applicable lease agreements, and records development fees as the services are provided under the terms of the applicable development agreements. Other fees are primarily composed of interest on catch-up management fees, fees related to accounting, in-house legal and tax professional services.
Expenses
Compensation and Benefits
The most significant expense in our asset management business is compensation and benefits expense. This consists of fixed salary, discretionary and non-discretionary bonuses, profit sharing expense associated with the performance fees earned and compensation expense associated with the vesting of non-cash equity-based awards.
Our compensation arrangements with certain employees contain a significant performance-based incentive component. Therefore, as our net revenues increase, our compensation costs rise. Our compensation costs also reflect the increased investment in people as we expand geographically and create new funds.
In addition, certain professionals and selected other individuals have a profit sharing interest in the performance fees earned in order to better align their interests with our own and with those of the investors in the funds we manage. Profit sharing expense is part of our compensation and benefits expense and is generally based upon a fixed percentage of performance fees. Certain of our performance-based incentive arrangements provide for compensation based on realized performance fees which includes fees earned by the general partners of the funds we manage under the applicable fund limited partnership agreements based upon transactions that have closed or other rights to incentive income cash that have become fixed in the applicable calendar year period. Profit sharing expense can reverse during periods when there is a decline in performance fees that were previously recognized. Profit sharing amounts are normally distributed to employees after the corresponding investment gains have been realized. Therefore, changes in our unrealized performance fees have the same effect on our profit sharing expense. Profit sharing expense increases when unrealized performance fees increase. Realizations only impact profit sharing expense to the extent that the effects on investments have not been recognized previously. If losses on other investments within a fund are subsequently realized, the profit sharing amounts previously distributed are normally subject to a general partner obligation to return performance fees previously distributed back to the funds. This general partner obligation due to the funds would generally be realized only when the fund is liquidated, which generally occurs at the end of the fund's term. However, indemnification obligations also exist for realized gains with respect to certain funds, which, although our Former Managing Partners and Contributing Partners would remain personally liable, may indemnify our Former Managing Partners and Contributing Partners for 17.5% to 100% of the previously distributed profits regardless of the fund's future performance. See note 16 to our condensed consolidated financial statements for further information regarding the Company's indemnification liability.
The Company grants equity awards to certain employees, including RSUs and restricted shares of common stock, that generally vest and become exercisable in quarterly installments or annual installments depending on the award terms. In some instances, vesting of an RSU is also subject to the Company's receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense. See note 13 to our condensed consolidated financial statements for further discussion of equity-based compensation.
Other expenses
The balance of our other expenses includes interest, placement fees, and general, administrative and other operating expenses. Interest expense consists primarily of interest related to the senior and subordinated notes as discussed in note 12 to our condensed consolidated financial statements. Placement fees are incurred in connection with our capital raising activities. In cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract, and amortized over the life of the customer contract. General, administrative and other expenses includes occupancy expense, depreciation and amortization, professional fees and costs related to travel, information technology and administration. Occupancy expense represents charges related to office leases and associated expenses, such as utilities and maintenance fees. Depreciation and amortization of fixed assets is normally calculated using the straight-line method over their estimated useful lives, ranging from two to sixteen years, taking into consideration any residual value. Leasehold improvements are amortized over the shorter of the useful life of the asset or the expected term of the lease. Intangible assets are amortized based on the future cash flows over the expected useful lives of the assets.
Other Income (Loss)
Net Gains (Losses) from Investment Activities
Net gains (losses) from investment activities include both realized gains and losses and the change in unrealized gains and losses in our investment portfolio between the opening reporting date and the closing reporting date. Net unrealized gains (losses) are a result of changes in the fair value of unrealized investments and reversal of unrealized gains (losses) due to dispositions of investments during the reporting period. Significant judgment and estimation goes into the assumptions that drive these models and the actual values realized with respect to investments could be materially different from values obtained based on the use of those models. The valuation methodologies applied impact the reported value of investment company holdings and their underlying portfolios in our condensed consolidated financial statements.
Net Gains (Losses) from Investment Activities of Consolidated Variable Interest Entities ("VIEs")
Changes in the fair value of the consolidated VIEs' assets and liabilities and related interest, dividend and other income and expenses subsequent to consolidation are presented within net gains (losses) from investment activities of consolidated variable interest entities and are attributable to non-controlling interests in the condensed consolidated statements of operations.
Other Income (Losses), Net
Other income (losses), net includes interest income, gains (losses) arising from the remeasurement of foreign currency denominated assets and liabilities, remeasurement of the tax receivable agreement liability and other miscellaneous non-operating income and expenses.
Financial Measures under U.S. GAAP - Retirement Services
The following discussion of financial measures under U.S. GAAP is based on the Company's retirement services business, which is operated by Athene, as of June 30, 2026.
Revenues
Premiums
Premiums for long-duration contracts, including products with fixed and guaranteed premiums and benefits, are recognized as revenue when due from policyholders. Insurance revenues are reported net of reinsurance ceded.
Product charges
Revenues for universal life-type policies and investment contracts, including surrender and market value adjustments, costs of insurance, policy administration, GMDB, GLWB and no-lapse guarantee charges, are earned when assessed against policyholder account balances during the period.
Net investment income
Net investment income is a significant component of Athene's total revenues. Athene recognizes investment income as it accrues or is legally due, net of investment management and custody fees. Investment income on fixed maturity securities includes coupon interest, as well as the amortization of any premium and the accretion of any discount. Investment income on equity securities represents dividend income and preferred coupon interest.
Investment related gains (losses)
Investment related gains (losses) primarily consist of (i) realized gains and losses on sales of investments, (ii) unrealized gains or losses relating to identified risks within AFS securities in fair value hedging relationships, (iii) gains and losses on trading securities, (iv) gains and losses on equity securities, (v) changes in the fair value of the embedded derivatives and derivatives not designated as a hedge, (vi) changes in the fair value of mortgage loan assets, (vii) foreign exchange gains and losses and (viii) changes in the provision for credit losses.
Expenses
Interest sensitive contract benefits
Interest sensitive contract liabilities are typically associated with universal life-type policies and investment contracts. Universal life-type policies and investment contracts include traditional deferred annuities (which include individual and group deferred annuities); indexed annuities consisting of fixed indexed, index-linked variable annuities in the accumulation phase, and assumed indexed universal life without significant mortality risk; funding agreements; immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies); universal life insurance; and other investment contracts inclusive of guaranteed investment contracts and assumed endowments without significant mortality risk. Liabilities for traditional deferred annuities, indexed annuities and universal life insurance are carried at the account balances without reduction for potential surrender or withdrawal charges, except for a block of universal life business ceded to Global Atlantic Financial Group Limited (together with its subsidiaries, "Global Atlantic"), which is carried at fair value. Fixed indexed annuity, index-linked variable annuity and indexed universal life insurance contracts contain an embedded derivative. Benefit reserves for these contracts are reported as the sum of the fair value of the embedded derivative and the host (or guaranteed) component of the contracts. The fair value of the embedded derivatives represents the present value of cash flows attributable to the indexed strategies. The host contract is established at contract inception as the initial account value less the initial fair value of the embedded derivative and accreted over the policy's life. Liabilities for immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), funding agreements, assumed endowments without significant mortality risk and guaranteed investment contracts are calculated as the present value of future liability cash flows and policy maintenance expenses, if any, discounted at contractual interest rates. Certain contracts are offered with additional contract features that meet the definition of a market risk benefit. See "-Market risk benefits remeasurement (gains) losses" below for further information.
Changes in interest sensitive contract liabilities, excluding deposits and withdrawals, are recorded in interest sensitive contract benefits or product charges on the condensed consolidated statements of operations.
Future policy and other policy benefits
Athene issues or reinsures contracts classified as long-duration, which include term and whole life, accident and health, disability, and deferred and immediate annuities with life contingencies (which include pension group annuities and structured settlements with life contingencies).
Liabilities for nonparticipating long-duration contracts are established as the estimated present value of benefits Athene expects to pay to or on behalf of the policyholder and related expenses less the present value of the net premiums to be collected, referred to as the net premium ratio. Liabilities for nonparticipating long-duration contracts are established using accepted actuarial valuation methods, which require the use of assumptions related to discount rate, expenses, longevity, mortality, morbidity, persistency and other policyholder behavior. The liability for nonparticipating long-duration contracts is discounted using an upper-medium grade fixed income instrument yield aligned to the characteristics of the liability, including the duration and currency of the underlying cash flows.
Changes in the value of the liability for nonparticipating long-duration contracts due to changes in the discount rate are recognized as a component of OCI on the condensed consolidated statements of comprehensive income (loss). Changes in the liability for remeasurement gains or losses and all other changes in the liability are recorded in future policy and other policy benefits on the condensed consolidated statements of operations.
Future policy benefits include liabilities for no-lapse guarantees on universal life insurance and fixed indexed universal life insurance. Each reporting period, expected excess benefits and assessments are updated with actual excess benefits and assessments. Athene also periodically revises the key assumptions used in the calculation of the liabilities that result in revisions to the expected excess benefits and assessments. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. Changes in the liabilities associated with no-lapse guarantees are recorded in future policy and other policy benefits on the condensed consolidated statements of operations.
Market risk benefits remeasurement (gains) losses
Market risk benefits represent contracts or contract features that both provide protection to the contract holder from, and expose the insurance entity to, other-than-nominal capital market risk. Athene's deferred annuity contracts contain GLWB and GMDB riders that meet the criteria for, and are classified as, market risk benefits.
Market risk benefits are measured at fair value at the contract level and may be recorded as a liability or an asset, which are included in market risk benefits or other assets, respectively, on the condensed consolidated statements of financial condition. Fees and assessments collectible from the policyholder at contract inception are allocated to the extent they are attributable to the market risk benefit. If the fees are sufficient to cover the projected benefits, a non-option based valuation model is used. If the fees are insufficient to cover the projected benefits, an option-based valuation model is used to compute the market risk benefit liability at contract inception, with an equal and offsetting adjustment recognized in interest sensitive contract liabilities.
Changes in the fair value of market risk benefits are recorded in market risk benefits remeasurement (gains) losses on the condensed consolidated statements of operations, excluding portions attributed to changes in instrument-specific credit risk, which are recorded in OCI on the condensed consolidated statements of comprehensive income (loss). Ceded market risk benefits are measured at fair value and recorded within reinsurance recoverable on the condensed consolidated statements of financial condition.
Amortization of deferred acquisition costs, deferred sales inducements, and value of business acquired
Costs related directly to the successful acquisition of new, or the renewal of existing, insurance or investment contracts are deferred. These costs consist of commissions and policy issuance costs, as well as sales inducements credited to policyholder account balances, and are included in deferred acquisition costs, deferred sales inducements and value of business acquired on the condensed consolidated statements of financial condition.
Deferred costs related to universal life-type policies and investment contracts with significant revenue streams from sources other than investment of the policyholder funds are grouped into cohorts based on issue year and contract type and amortized on a constant level basis over the expected term of the related contracts. The cohorts and assumptions used for the amortization of deferred costs are consistent with those used in estimating the related liabilities for these contracts. Deferred costs related to investment contracts without significant revenue streams from sources other than investment of the policyholder funds are amortized using the effective interest method. The effective interest method amortizes the deferred costs by discounting the future liability cash flows at a break-even rate. The break-even rate is solved for such that the present value of future liability cash flows is equal to the net liability at the inception of the contract. VOBA associated with acquired contracts can be either positive or negative and is amortized in relation to respective policyholder liabilities. Significant assumptions that impact VOBA amortization are consistent with those that impact the measurement of policyholder liabilities.
Amortization of DAC, DSI and VOBA is included in amortization of deferred acquisition costs, deferred sales inducements and value of business acquired on the condensed consolidated statements of operations.
Policy and other operating expenses
Policy and other operating expenses include normal operating expenses, policy acquisition expenses, interest expense, dividends to policyholders, integration, restructuring and other non-operating expenses and stock compensation expenses.
Other Financial Measures under U.S. GAAP
Income Taxes
Significant judgment is required in determining the provision for income taxes and in evaluating income tax positions, including evaluating uncertainties. We recognize the income tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the positions. The tax benefit is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If a tax position is not considered more likely than not to be sustained, then no benefits of the position are recognized. The Company's income tax positions are reviewed and evaluated quarterly to determine whether or not we have uncertain tax positions that require financial statement recognition or de-recognition.
Deferred tax assets and liabilities are recognized for the expected future tax consequences, using currently enacted tax rates, of differences between the carrying amount of assets and liabilities and their respective tax basis. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Non-Controlling Interests
For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to owners other than Apollo. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the condensed consolidated financial statements. Non-controlling interests primarily include limited partner interests in certain consolidated funds and VIEs.
The authoritative guidance for non-controlling interests in the condensed consolidated financial statements requires reporting entities to present non-controlling interest as equity and provides guidance on the accounting for transactions between an entity and non-controlling interests. According to the guidance, (1) non-controlling interests are presented as a separate component of stockholders' equity on the Company's condensed consolidated statements of financial condition, (2) net income (loss) includes the net income (loss) attributable to the non-controlling interest holders on the Company's condensed consolidated statements of operations, and (3) profits and losses are allocated to non-controlling interests in proportion to their ownership interests regardless of their basis.
Managing Business Performance - Key Segment and Non-U.S. GAAP Performance Measures
We believe that the presentation of Segment Income supplements a reader's understanding of the economic operating performance of each of our segments.
Segment Income and Adjusted Net Income
Segment Income is the key performance measure used by management in evaluating the performance of the Asset Management, Retirement Services, and Principal Investing segments. See note 18 to the condensed consolidated financial statements for more details regarding the components of Segment Income and management's consideration of Segment Income.
We believe that Segment Income is helpful for an understanding of our business and that investors should review the same supplemental financial measure that management uses to analyze our segment performance. This measure supplements and should be considered in addition to and not in lieu of the results of operations discussed above in "-Overview of Results of Operations" that have been prepared in accordance with U.S. GAAP.
Adjusted Net Income ("ANI") represents Segment Income less HoldCo interest and other financing costs and estimated income taxes. For purposes of calculating the Adjusted Net Income tax rate, Segment Income is reduced by HoldCo interest and financing costs. Income taxes on FRE and PII represents the total current corporate, local, and non-U.S. taxes as well as the current amounts payable under Apollo's tax receivable agreement. Income taxes on FRE and PII excludes the impacts of deferred taxes and the remeasurement of the tax receivable agreement, which arise from changes in estimated future tax rates. Certain assumptions and methodologies that impact the implied FRE and PII income tax provision are similar to those used under U.S. GAAP. Specifically, certain deductions considered in the income tax provision under U.S. GAAP relating to transaction-related costs, equity-based compensation, charitable contributions and tax deductible interest expense are taken into account for the implied tax provision. Income Taxes on SRE represent the total current and deferred tax expense or benefit on income before taxes adjusted to eliminate the impact of the tax expense or benefit associated with the non-operating adjustments. Management believes the methodologies used to compute income taxes on FRE, SRE, and PII are meaningful to each segment and increases comparability of income taxes between periods.
Fee Related Earnings, Spread Related Earnings and Principal Investing Income
Fee Related Earnings, or "FRE", is a component of Segment Income that is used to assess the performance of the Asset Management segment.
Spread Related Earnings, or "SRE", is a component of Segment Income that is used to assess the performance of the Retirement Services segment, excluding certain market volatility, which consists of investment gains (losses), net of offsets and non-operating change in insurance liabilities and related derivatives, and certain expenses related to integration, restructuring, and equity-based compensation, as well as other items.
Non-operating change in insurance liabilities and related derivatives includes the change in fair values of derivatives and embedded derivatives, non-operating change in funding agreements, change in fair value of market risk benefits, and non-operating change in liability for future policy benefits.
Principal Investing Income, or "PII", is a component of Segment Income that is used to assess the performance of the Principal Investing segment.
See note 18 to the condensed consolidated financial statements for more details regarding the components of FRE, SRE, and PII.
We use Segment Income, ANI, FRE, SRE and PII as measures of operating performance, not as measures of liquidity. These measures should not be considered in isolation or as a substitute for net income or other income data prepared in accordance with U.S. GAAP. The use of these measures without consideration of their related U.S. GAAP measures is not adequate due to the adjustments described above.
Net Invested Assets
In managing its business, Athene analyzes net invested assets, which does not correspond to total Athene investments, including investments in related parties, as disclosed in the condensed consolidated statements of financial condition and notes thereto. Net invested assets represent the investments that directly back Athene's net reserve liabilities, as well as surplus assets. Net invested assets is used in the computation of net investment earned rate, which is used to analyze the profitability of Athene's investment portfolio. Net invested assets include (a) total investments on the condensed consolidated statements of financial condition with AFS securities, trading securities and mortgage loans at cost or amortized cost, excluding derivatives, (b) cash and cash equivalents and restricted cash, (c) investments in related parties, (d) accrued investment income, (e) VIE and VOE assets, liabilities and non-controlling interest adjustments, (f) net investment payables and receivables, (g) policy loans ceded (which offset the direct policy loans in total investments) and (h) an adjustment for the allowance for credit losses. Net invested assets exclude the derivative collateral offsetting the related cash positions. Athene includes the underlying investments supporting its assumed funds withheld and modco agreements and excludes the underlying investments related to ceded reinsurance transactions in its net invested assets calculation to match the assets with the income received. Athene believes the adjustments for reinsurance provide a view of the assets for which it has economic exposure. Net invested assets include Athene's proportionate share of ACRA investments, based on its economic ownership, but do not include the proportionate share of investments associated with the non-controlling interests. Net invested assets are averaged over the number of quarters in the relevant period to compute a net investment earned rate for such period. While Athene believes net invested assets is a meaningful financial metric and enhances the understanding of the underlying drivers of its investment portfolio, it should not be used as a substitute for Athene's total investments, including related parties, presented under U.S. GAAP.
Results of Operations
Below is a discussion of our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025. For additional analysis of the factors that affected our results at the segment level, see "-Segment Analysis" below:
| Three months ended June 30, |
Total Change |
Percentage Change |
Six months ended June 30, |
Total Change |
Percentage Change |
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| (In millions, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Management fees | $ | 749 | $ | 583 | $ | 166 | 28.5% | $ | 1,445 | $ | 1,091 | $ | 354 | 32.4% | |||||||||||||||||||||||||||||||||
| Advisory and transaction fees, net | 418 | 277 | 141 | 50.9 | 724 | 472 | 252 | 53.4 | |||||||||||||||||||||||||||||||||||||||
| Investment income (loss) | 379 | 189 | 190 | 100.5 | 302 | 492 | (190) | (38.6) | |||||||||||||||||||||||||||||||||||||||
| Incentive fees | 59 | 58 | 1 | 1.7 | 123 | 98 | 25 | 25.5 | |||||||||||||||||||||||||||||||||||||||
| Property management, development and other fees | 22 | - | 22 | NM | 44 | - | 44 | NM | |||||||||||||||||||||||||||||||||||||||
| 1,627 | 1,107 | 520 | 47.0 | 2,638 | 2,153 | 485 | 22.5 | ||||||||||||||||||||||||||||||||||||||||
| Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| Premiums | 170 | 107 | 63 | 58.9 | 387 | 234 | 153 | 65.4 | |||||||||||||||||||||||||||||||||||||||
| Product charges | 299 | 274 | 25 | 9.1 | 580 | 539 | 41 | 7.6 | |||||||||||||||||||||||||||||||||||||||
| Net investment income | 5,350 | 4,776 | 574 | 12.0 | 10,489 | 9,117 | 1,372 | 15.0 | |||||||||||||||||||||||||||||||||||||||
| Investment related gains (losses) | 2,989 | (5) | 2,994 | NM | 911 | (833) | 1,744 | NM | |||||||||||||||||||||||||||||||||||||||
| Revenues of consolidated variable interest entities | 714 | 550 | 164 | 29.8 | 1,199 | 1,142 | 57 | 5.0 | |||||||||||||||||||||||||||||||||||||||
| Other revenues | 4 | 5 | (1) | (20.0) | 8 | 10 | (2) | (20.0) | |||||||||||||||||||||||||||||||||||||||
| 9,526 | 5,707 | 3,819 | 66.9 | 13,574 | 10,209 | 3,365 | 33.0 | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 11,153 | 6,814 | 4,339 | 63.7 | 16,212 | 12,362 | 3,850 | 31.1 | |||||||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Compensation and benefits: | |||||||||||||||||||||||||||||||||||||||||||||||
| Salary, bonus and benefits | 435 | 330 | 105 | 31.8 | 848 | 656 | 192 | 29.3 | |||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | 234 | 155 | 79 | 51.0 | 456 | 293 | 163 | 55.6 | |||||||||||||||||||||||||||||||||||||||
| Profit sharing expense | 258 | 117 | 141 | 120.5 | 334 | 398 | (64) | (16.1) | |||||||||||||||||||||||||||||||||||||||
| Total compensation and benefits | 927 | 602 | 325 | 54.0 | 1,638 | 1,347 | 291 | 21.6 | |||||||||||||||||||||||||||||||||||||||
| Interest expense | 88 | 60 | 28 | 46.7 | 165 | 120 | 45 | 37.5 | |||||||||||||||||||||||||||||||||||||||
| General, administrative and other | 479 | 370 | 109 | 29.5 | 918 | 678 | 240 | 35.4 | |||||||||||||||||||||||||||||||||||||||
| 1,494 | 1,032 | 462 | 44.8 | 2,721 | 2,145 | 576 | 26.9 | ||||||||||||||||||||||||||||||||||||||||
| Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest sensitive contract benefits | 5,714 | 3,428 | 2,286 | 66.7 | 7,305 | 4,922 | 2,383 | 48.4 | |||||||||||||||||||||||||||||||||||||||
| Future policy and other policy benefits | 594 | 527 | 67 | 12.7 | 1,233 | 1,068 | 165 | 15.4 | |||||||||||||||||||||||||||||||||||||||
| Market risk benefits remeasurement (gains) losses | (24) | (111) | 87 | 78.4 | 235 | 274 | (39) | (14.2) | |||||||||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired | 350 | 292 | 58 | 19.9 | 687 | 559 | 128 | 22.9 | |||||||||||||||||||||||||||||||||||||||
| Policy and other operating expenses | 613 | 550 | 63 | 11.5 | 1,239 | 1,092 | 147 | 13.5 | |||||||||||||||||||||||||||||||||||||||
| 7,247 | 4,686 | 2,561 | 54.7 | 10,699 | 7,915 | 2,784 | 35.2 | ||||||||||||||||||||||||||||||||||||||||
| Total Expenses | 8,741 | 5,718 | 3,023 | 52.9 | 13,420 | 10,060 | 3,360 | 33.4 | |||||||||||||||||||||||||||||||||||||||
|
Other income (loss) - Asset Management
|
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| Net gains (losses) from investment activities | 63 | (268) | 331 | NM | (49) | (286) | 237 | (82.9) | |||||||||||||||||||||||||||||||||||||||
| Net gains (losses) from investment activities of consolidated variable interest entities | (7) | 4 | (11) | NM | (22) | 215 | (237) | NM | |||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | 17 | 13 | 4 | 30.8 | 47 | (205) | 252 | NM | |||||||||||||||||||||||||||||||||||||||
| Total Other income (loss) | 73 | (251) | 324 | NM | (24) | (276) | 252 | (91.3) | |||||||||||||||||||||||||||||||||||||||
| Income (loss) before income tax (provision) benefit | 2,485 | 845 | 1,640 | 194.1 | 2,768 | 2,026 | 742 | 36.6 | |||||||||||||||||||||||||||||||||||||||
| Income tax (provision) benefit | (396) | (3) | (393) | NM | (2,090) | (246) | (1,844) | NM | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 2,089 | 842 | 1,247 | 148.1 | 678 | 1,780 | (1,102) | (61.9) | |||||||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to non-controlling interests | (728) | (212) | (516) | 243.4 | (1,223) | (708) | (515) | 72.7 | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Apollo Global Management, Inc. | 1,361 | 630 | 731 | 116.0 | (545) | 1,072 | (1,617) | NM | |||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | (25) | (25) | - | - | (49) | (49) | - | - | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to Apollo Global Management, Inc. common stockholders | $ | 1,336 | $ | 605 | $ | 731 | 120.8% | $ | (594) | $ | 1,023 | $ | (1,617) | NM | |||||||||||||||||||||||||||||||||
|
Note: "NM" denotes not meaningful. Changes from negative to positive amounts and positive to negative amounts are not considered meaningful. Increases or decreases from zero and changes greater than 500% are also not considered meaningful.
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Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
In this section, references to 2026 refer to the three months ended June 30, 2026 and references to 2025 refer to the three months ended June 30, 2025.
Asset Management
Revenues
Revenues were $1,627 million in 2026, an increase of $520 million from $1,107 million in 2025, primarily driven by higher investment income, management fees, advisory and transaction fees, net, and property management, development and other fees.
Investment income increased by $190 million in 2026 to $379 million compared to $189 million in 2025. The increase in investment income was primarily driven by an increase in performance allocations of $258 million, partially offset by a decrease in principal investment income of $68 million.
Significant drivers for performance allocations in 2026 were performance allocations earned from Fund VIII, Fund X, Redding Ridge Holdings, HVF III, HVF II and Credit Strategies of $309 million, $100 million, $30 million, $29 million, $27 million and $13 million, respectively, partially offset by performance allocation losses from Fund IX of $91 million.
See below for details on the respective performance allocations in 2026.
The performance allocations earned from Fund VIII in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) media, cable and leisure and (ii) financial and business services sectors.
The performance allocations earned from Fund X in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) manufacturing and industrial and (ii) consumer and retail sectors.
The performance allocations earned from Redding Ridge Holdings in 2026 were primarily driven by existing and new CLO issuances, resets, accumulation of warehouse assets, new consulting contracts and the net income generated by the vehicle's strategic investments.
The performance allocations earned from HVF III in 2026 were primarily driven by the appreciation of the fund's investments in the (i) climate and sustainability, (ii) consumer and retail and (iii) business services sectors.
The performance allocations earned from HVF II in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) transportation and logistics, (ii) consumer and retail and (iii) manufacturing and industrial sectors.
The performance allocations earned from Credit Strategies in 2026 were primarily driven by the net income generated by the fund's investments.
The performance allocation losses from Fund IX in 2026 were primarily driven by the depreciation of the fund's investments in (i) media, telecom and technology, (ii) consumer services, and (iii) consumer and retail sectors.
Management fees increased by $166 million to $749 million in 2026 from $583 million in 2025. The increase in management fees was primarily attributable to $165 million of aggregate management fees earned from Bridge funds, Atlas, Athora, Apollo Asset-Backed Finance Fund, L.P. ("ABF"), Apollo Credit Strategies Absolute Return Fund (Delaware), L.P. ("Credit Strategies Absolute Return Fund") and ADS, partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $17 million. The increase in management fees earned from Bridge funds was due to the Bridge acquisition, while the increase from Atlas was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities. The increase in management fees earned from Athora was primarily driven by its acquisition of PIC. The increase in management fees earned from ABF, Apollo Credit Strategies Absolute Return Fund and ADS was primarily driven by an
increase in subscriptions. The decrease in management fees earned from S3 Equity and Hybrid Solutions was primarily related to the catch-up management fees for additional closes in 2025.
Advisory and transaction fees, net increased by $141 million to $418 million in 2026 from $277 million in 2025. Advisory and transaction fees earned during 2026 were primarily attributable to advisory and transaction fees earned from our opportunistic credit, direct origination, multi-credit, traditional private equity and hybrid value strategies.
Property management, development and other fees increased by $22 million in 2026 resulting from the Bridge acquisition in the third quarter of 2025.
Expenses
Expenses were $1,494 million in 2026, an increase of $462 million from $1,032 million in 2025, primarily due to increases in compensation and benefits, general, administrative and other and interest expense.
Total compensation and benefits were $927 million in 2026, an increase of $325 million from $602 million in 2025, primarily due to an increase in profit sharing expense, salary, bonus and benefits and equity-based compensation of $141 million, $105 million and $79 million, respectively. The increase in profit sharing expense of $141 million corresponds to higher investment income in 2026. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period. The increase in salary, bonus and benefits of $105 million was primarily driven by increased headcount in 2026 relative to 2025 due in part to the Bridge acquisition. The increase in equity-based compensation of $79 million was primarily due to additional RSUs and equity granted and the related amortization. Equity-based compensation expense, in any given period, generally includes: (i) performance grants which are tied to the Company's receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and (ii) the impact of the 2021 one-time grants awarded to the then Co-Presidents of AAM, all of which vest on a cliff basis subject to continued employment over five years, and a portion of which also vest on the Company's achievement of FRE and SRE per share metrics.
General, administrative and other expenses were $479 million in 2026, an increase of $109 million from $370 million in 2025. The increase in 2026 was primarily driven by increases in professional fees, transaction related expenses, depreciation and amortization, and travel and entertainment expenses.
Interest expense was $88 million in 2026, an increase of $28 million from $60 million in 2025. The increase in 2026 was primarily driven by higher interest rates from additional debt issuances in 2025 and 2026.
Other Income (Loss)
Other income was $73 million in 2026, an increase of $324 million from a loss of $251 million in 2025, primarily driven by increases in net gains (losses) from investment activities of $331 million.
The increase in net gains (losses) from investment activities of $331 million was primarily driven by a prior year impairment loss on an equity investment triggered by the initial public offering of the issuer of the equity security, which resulted in an observable transaction price below the Company's carrying amount, as well as appreciation in the Company's investments in Global Business Travel Group, Inc. in 2026.
Retirement Services
Revenues
Retirement Services revenues were $9.5 billion in 2026, an increase of $3.8 billion from $5.7 billion in 2025. The increase was primarily driven by an increase in investment related gains (losses), an increase in net investment income, an increase in revenues of consolidated VIEs and an increase in premiums.
Investment related gains (losses) were $3.0 billion in 2026, an increase of $3.0 billion from $(5) million in 2025, primarily driven by a favorable change in the fair value of indexed annuity hedging derivatives, net foreign exchange gains and a $673 million gain resulting from the early call of Athene's investment in AP Grange, partially offset by an unfavorable change in the
fair value of mortgage loans and reinsurance assets. The change in fair value of indexed annuity hedging derivatives increased $2.1 billion, primarily driven by the favorable performance of the equity indices upon which Athene's call options are based. The largest percentage of Athene's call options are based on the S&P 500 Index, which increased 14.9% in 2026, compared to an increase of 10.6% in 2025. The net foreign exchange gains were primarily related to the strengthening of the U.S. dollar against foreign currencies in 2026 compared to 2025, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The change in fair value of mortgage loans decreased $568 million and the change in fair value of reinsurance assets decreased $73 million, primarily driven by an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025.
Net investment income was $5.4 billion in 2026, an increase of $574 million from $4.8 billion in 2025, primarily driven by significant growth in Athene's investment portfolio attributable to strong net flows of $37.6 billion during the previous twelve months and higher rates on new deployment in comparison to Athene's existing portfolio related to the higher interest rate environment. These impacts were partially offset by lower floating rate income, later deployment into assets during the quarter compared to 2025 and run-off of higher-yielding assets.
Revenues of consolidated VIEs were $714 million in 2026, an increase of $164 million from $550 million in 2025, primarily driven by the consolidation of AAA Lux in the fourth quarter of 2025 and additional contributions into AAA and AAA Lux in 2026.
Premiums were $170 million in 2026, an increase of $63 million from $107 million in 2025, primarily driven by an increase in payout annuity premiums related to the issuance of structured settlements and life renewal premiums from the Sony Life Insurance Co., Ltd. ("Sony") block reinsurance transaction executed in the fourth quarter of 2025, partially offset by an increase in ceded premium related to the retrocession of mortality risk on a pension group annuity transaction.
Expenses
Retirement Services expenses were $7.2 billion in 2026, an increase of $2.6 billion from $4.7 billion in 2025. The increase was primarily driven by an increase in interest sensitive contract benefits, an increase in market risk benefits remeasurement (gains) losses, an increase in future policy and other policy benefits, an increase in policy and other operating expenses and an increase in the amortization of DAC, DSI and VOBA.
Interest sensitive contract benefits were $5.7 billion in 2026, an increase of $2.3 billion from $3.4 billion in 2025, primarily driven by an increase in the change in Athene's indexed annuity reserves, significant growth in Athene's deferred annuity and funding agreement blocks of business over the previous twelve months, higher rates on new deferred annuity and funding agreement issuances and run-off of lower rate business, in comparison to its existing blocks of business, partially offset by lower rates on floating rate funding agreements and later origination of new business within the quarter compared to 2025. The change in Athene's indexed annuity reserves includes the impact from changes in the fair value of indexed annuity embedded derivatives. The increase in the change in fair value of indexed annuity embedded derivatives of $1.2 billion was primarily due to the performance of the equity indices to which Athene's indexed annuity policies are linked. The largest percentage of Athene's indexed annuity policies are linked to the S&P 500 Index, which increased 14.9% in 2026, compared to an increase of 10.6% in 2025. This impact was partially offset by a favorable change in discount rates used in Athene's embedded derivative calculations as there was a smaller decrease in discount rates in 2026 compared to 2025.
Market risk benefits remeasurement (gains) losses were $(24) million in 2026, an increase of $87 million from $(111) million in 2025. The decrease in gains in 2026 compared to 2025 was primarily driven by an unfavorable change in the fair value of market risk benefits. The change in fair value of market risk benefits was primarily driven by an unfavorable $213 million impact due to a smaller increase in the risk-free discount rates across the long end of the curve compared to 2025, which are used in the fair value measurement of the liability for market risk benefits, partially offset by a favorable $128 million impact related to more favorable equity market performance compared to 2025.
Future policy and other policy benefits were $594 million in 2026, an increase of $67 million from $527 million in 2025, primarily driven by an increase in payout annuity reserves related to the issuance of structured settlements, as well as life reserves related to renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025, partially offset by an increase in ceded benefit payments related to the retrocession of mortality risk on a pension group annuity transaction.
Policy and other operating expenses were $613 million in 2026, an increase of $63 million from $550 million in 2025, primarily driven by an increase in interest expense, as well as increases in policy acquisition and other operating expenses related to significant growth. The increase in interest expense was primarily related to an increase in host accretion on business ceded to Catalina, as well as a full quarter of interest on long-term debt issued in the second quarter of 2025.
Amortization of DAC, DSI and VOBA was $350 million in 2026, an increase of $58 million from $292 million in 2025, primarily driven by an increase in acquisition and sales incentive costs that are deferred and amortized due to strong growth in Athene's deferred annuity business, partially offset by a decrease in VOBA amortization.
Income Tax Provision
The Company's income tax provision was $396 million and $3 million in 2026 and 2025, respectively. The change to the provision was primarily related to the increase in pretax income subject to tax in 2026 and the Bermuda CIT benefit included in 2025. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 15.9% and 0.4% for 2026 and 2025, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) foreign, state and local income taxes, including NYC UBT, (ii) income attributable to non-controlling interests, (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m). See note 11 to the condensed consolidated financial statements for further details regarding the Company's income tax provision.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
In this section, references to 2026 refer to the six months ended June 30, 2026 and references to 2025 refer to the six months ended June 30, 2025.
Asset Management
Revenues
Revenues were $2,638 million in 2026, an increase of $485 million from $2,153 million in 2025, primarily driven by higher management fees, advisory and transaction fees, net, property management, development and other fees, and incentive fees, partially offset by lower investment income.
Management fees increased by $354 million to $1,445 million in 2026 from $1,091 million in 2025. The increase in management fees was primarily attributable to $269 million of aggregate management fees earned from Bridge funds, Atlas, Athora, ADS, Redding Ridge Holdings, ABF and Credit Strategies Absolute Return Fund, partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $26 million. The increase in management fees earned from Bridge funds was due to the Bridge acquisition, while the increase from Atlas was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities. The increase in management fees earned from Athora was primarily driven by its acquisition of PIC. The increase in management fees earned from ADS, ABF and Credit Strategies Absolute Return Fund was primarily driven by an increase in subscriptions. Further, the increase in management fees earned from Redding Ridge Holdings was primarily driven by a fee basis adjustment, resulting from a change to the fee calculation in 2026. The decrease in management fees earned from S3 Equity and Hybrid Solutions was primarily related to the catch-up management fees for additional closes in 2025.
Advisory and transaction fees, net increased by $252 million to $724 million in 2026 from $472 million in 2025. Advisory and transaction fees earned during 2026 were primarily attributable to advisory and transaction fees earned from our direct origination, opportunistic credit, multi-credit, traditional private equity and hybrid value strategies.
Property management, development and other fees increased by $44 million in 2026 resulting from the Bridge acquisition in the third quarter of 2025.
Incentive fees increased by $25 million to $123 million in 2026 from $98 million in 2025, primarily attributable to sustained growth across a variety of perpetual capital vehicles.
Investment income decreased by $190 million in 2026 to $302 million compared to $492 million in 2025. The decrease in investment income was primarily driven by decreases in principal investment income and performance allocations of $103
million and $87 million, respectively. The decrease in principal investment income in 2026 was primarily driven by the depreciation in value of investments held by certain funds we manage in which the Company has a direct interest.
Significant drivers for performance allocations in 2026 were performance allocations earned from Fund VIII, Fund X, HVF II, Credit Strategies, Redding Ridge Holdings and HVF III of $201 million, $129 million, $60 million, $54 million, $52 million and $36 million, respectively, partially offset by performance allocation losses from Fund IX of $152 million.
See below for details on the respective performance allocations in 2026.
The performance allocations earned from Fund VIII in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) media, cable and leisure and (ii) financial and business services sectors.
The performance allocations earned from Fund X in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) consumer and retail and (ii) manufacturing and industrial sectors.
The performance allocations earned from HVF II in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) consumer and retail, (ii) manufacturing and industrial and (iii) transportation and logistics sectors.
The performance allocations earned from Credit Strategies in 2026 were primarily driven by the net income generated by the fund's investments.
The performance allocations earned from Redding Ridge Holdings in 2026 were primarily driven by existing and new CLO issuances, resets, accumulation of warehouse assets, new consulting contracts and the net income generated by the vehicle's strategic investments.
The performance allocations earned from HVF III in 2026 were primarily driven by the appreciation of the fund's investments in the (i) climate and sustainability, (ii) consumer and retail and (iii) business services sectors.
The performance allocation losses from Fund IX in 2026 were primarily driven by the depreciation of the fund's investments in (i) media, telecom and technology, (ii) consumer services and (iii) consumer and retail sectors.
Expenses
Expenses were $2,721 million in 2026, an increase of $576 million from $2,145 million in 2025, primarily due to increases in total compensation and benefits, general, administrative and other and interest expense.
Total compensation and benefits were $1,638 million in 2026, an increase of $291 million from $1,347 million in 2025, primarily due to increases in salary, bonus and benefits and equity-based compensation. The increase in salary, bonus and benefits of $192 million was primarily driven by increased headcount in 2026 relative to 2025 due in part to the Bridge acquisition. The increase in equity-based compensation of $163 million was primarily due to additional RSUs and equity granted and the related amortization. Equity-based compensation expense, in any given period, generally includes: (i) performance grants which are tied to the Company's receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and (ii) the impact of the 2021 one-time grants awarded to the then Co-Presidents of AAM, all of which vest on a cliff basis subject to continued employment over five years, and a portion of which also vest on the Company's achievement of FRE and SRE per share metrics. The decrease in profit sharing expense of $64 million correlates to lower investment income in 2026. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period.
General, administrative and other expenses were $918 million in 2026, an increase of $240 million from $678 million in 2025. The increase in 2026 was primarily driven by increases in professional fees, depreciation and amortization, transaction related expenses, technology expenses and travel and entertainment expenses.
Interest expense was $165 million in 2026, an increase of $45 million from $120 million in 2025. The increase in 2026 was primarily driven by higher interest rates from additional debt issuances in the full year 2025 and 2026.
Other Income (Loss)
Other income (loss) was $(24) million in 2026, an increase of $252 million from $(276) million in 2025, primarily driven by increases in other income (loss), net and net gains (losses) from investment activities of $252 million and $237 million, respectively, partially offset by a decrease in net gains (losses) from investment activities of consolidated VIEs of $237 million.
The increase in other income (loss), net of $252 million was primarily attributable to expense related to the issuance of common stock to the Apollo DAF in the prior year, which did not recur in the current year. Additionally, the increase was also driven by derivative gains primarily on forward contracts, partially offset by foreign exchange losses due to the significant fluctuations in foreign exchange rates in 2026.
The increase in net gains (losses) from investment activities of $237 million was primarily driven by a prior-year impairment loss on an equity investment triggered by the initial public offering of the issuer of the equity security which resulted in an observable transaction price below the Company's carrying amount, as well as appreciation in the Company's investments in Global Business Travel Group, Inc. in 2026. The increase was partially offset by losses on the sale of certain investments held by the Company in 2026.
The decrease in net gains (losses) from investment activities of consolidated VIEs of $237 million was primarily driven by a significant portfolio company valuation increase in 2025 related to the sale of the consolidated VIE's primary holding.
Retirement Services
Revenues
Retirement Services revenues were $13.6 billion in 2026, an increase of $3.4 billion from $10.2 billion in 2025. The increase was primarily driven by an increase in investment related gains (losses), an increase in net investment income, an increase in premiums and an increase in revenues of consolidated VIEs.
Investment related gains (losses) were $911 million in 2026, an increase of $1.7 billion from $(833) million in 2025, primarily driven by a favorable change in fair value of indexed annuity hedging derivatives, net foreign exchange gains and a $673 million gain resulting from the early call of Athene's investment in AP Grange, partially offset by an unfavorable change in the fair value of mortgage loans, reinsurance assets and trading securities. The change in fair value of indexed annuity hedging derivatives increased $1.8 billion, primarily driven by the favorable performance of the equity indices upon which Athene's call options are based. The largest percentage of Athene's call options are based on the S&P 500 Index, which increased 9.6% in 2026, compared to an increase of 5.5% in 2025. The net foreign exchange gains were primarily related to the strengthening of the U.S. dollar against foreign currencies in 2026 compared to 2025, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The change in fair value of mortgage loans decreased $1.7 billion, reinsurance assets decreased $392 million and trading securities decreased $267 million, primarily driven by an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025.
Net investment income was $10.5 billion in 2026, an increase of $1.4 billion from $9.1 billion in 2025, primarily driven by significant growth in Athene's investment portfolio attributable to strong net flows during the previous twelve months and higher rates on new deployment in comparison to Athene's existing portfolio related to the higher interest rate environment. These impacts were partially offset by lower floating rate income, later deployment into assets during the year compared to 2025 and run-off of higher-yielding assets.
Premiums were $387 million in 2026, an increase of $153 million from $234 million in 2025, primarily driven by an increase in payout annuity premiums related to the issuance of structured settlements and life renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025, partially offset by an increase in ceded premium related to the retrocession of mortality risk on a pension group annuity transaction.
Revenues of consolidated VIEs were $1.2 billion in 2026, an increase of $57 million from $1.1 billion in 2025, primarily driven by the consolidation of AAA Lux in the fourth quarter of 2025 and additional contributions into AAA and AAA Lux in 2026. These impacts were partially offset by lower returns on the underlying assets within AAA and AAA Lux in 2026 and an unfavorable change in the fair value of trading securities held in VIEs related to an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025.
Expenses
Retirement Services expenses were $10.7 billion in 2026, an increase of $2.8 billion from $7.9 billion in 2025. The increase was primarily driven by an increase in interest sensitive contract benefits, an increase in future policy and other policy benefits, an increase in policy and other operating expenses and an increase in the amortization of DAC, DSI and VOBA, partially offset by a decrease in market risk benefits remeasurement (gains) losses.
Interest sensitive contract benefits were $7.3 billion in 2026, an increase of $2.4 billion from $4.9 billion in 2025, primarily driven by significant growth in Athene's deferred annuity and funding agreement blocks of business over the previous twelve months, higher rates on new deferred annuity and funding agreement issuances and run-off of lower rate business, in comparison to Athene's existing blocks of business, and an increase in the change in Athene's indexed annuity reserves, partially offset by lower rates on floating rate funding agreements and later origination of new business within the year compared to 2025. The change in Athene's indexed annuity reserves includes the impact from changes in the fair value of indexed annuity embedded derivatives. The increase in the change in fair value of indexed annuity embedded derivatives of $720 million was primarily due to the performance of the equity indices to which Athene's indexed annuity policies are linked. The largest percentage of Athene's indexed annuity policies are linked to the S&P 500 Index, which increased 9.6% in 2026, compared to an increase of 5.5% in 2025. The change in fair value of indexed annuity embedded derivatives was also driven by the unfavorable impact of rate movements on policyholder projected benefits. These impacts were partially offset by a favorable change in discount rates used in Athene's embedded derivative calculations as discount rates increased in 2026 compared to a decrease in 2025.
Future policy and other policy benefits were $1.2 billion in 2026, an increase of $165 million from $1.1 billion in 2025, primarily driven by an increase in payout annuity reserves related to the issuance of structured settlements, as well as life reserves related to renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025. These impacts were partially offset by an increase in ceded benefit payments related to the retrocession of mortality risk on a pension group annuity transaction and a decrease in the AmerUs Closed Block fair value liability. The change in the AmerUs Closed Block fair value liability was primarily due to unrealized losses on the underlying assets reflecting an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025.
Policy and other operating expenses were $1.2 billion in 2026, an increase of $147 million from $1.1 billion in 2025, primarily driven by an increase in interest expense, as well as increases in policy acquisition and other operating expenses related to significant growth. The increase in interest expense was primarily related to a full six months of interest on long-term debt issued in the second quarter of 2025, as well as an increase in host accretion on business ceded to Catalina.
Amortization of DAC, DSI and VOBA was $687 million in 2026, an increase of $128 million from $559 million in 2025, primarily driven by an increase in acquisition and sales incentive costs that are deferred and amortized due to strong growth in Athene's deferred annuity business, partially offset by a decrease in VOBA amortization.
Market risk benefits remeasurement (gains) losses were $235 million in 2026, a decrease of $39 million from $274 million in 2025. The decrease in losses in 2026 compared to 2025 was primarily driven by a favorable change in the fair value of market risk benefits, partially offset by a $23 million increase in fees collected due to growth in the in-force population of policies with income rider benefits, increasing the market risk benefit reserve. The change in fair value of market risk benefits was primarily driven by a favorable $62 million impact related to more favorable equity market performance compared to 2025.
Income Tax Provision
The Company's income tax provision totaled $2,090 million and $246 million in 2026 and 2025, respectively. The change to the provision was primarily related to the Bermuda valuation allowance and the increase in pretax income subject to tax in 2026. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 75.5% and 12.1% for 2026 and 2025, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) foreign, state and local income taxes, including NYC UBT, (ii) income attributable to non-controlling interests, (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m), (iv) Bermuda CIT and (v) the Bermuda valuation allowance recorded in the first quarter of 2026. See note 11 to the condensed consolidated financial statements for further details regarding the Company's income tax provision.
Segment Analysis
The results of operations for our reportable segments are discussed below and represent the segment information available to and used by management to assess performance and allocate resources. See note 18 to our condensed consolidated financial statements for more information regarding our segment reporting.
Asset Management
The following table presents Fee Related Earnings, the performance measure of our Asset Management segment.
| Three months ended June 30, | Total Change | Percentage Change | Six months ended June 30, | Total Change | Percentage Change | ||||||||||||||||||||||||||||||||||||||||||
| (In millions, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||||||||||||||||||||
| Management fees - Credit | $ | 722 | $ | 605 | $ | 117 | 19.3% | $ | 1,403 | $ | 1,174 | $ | 229 | 19.5% | |||||||||||||||||||||||||||||||||
| Management fees - Equity | 279 | 211 | 68 | 32.2 | 550 | 412 | 138 | 33.5 | |||||||||||||||||||||||||||||||||||||||
| Management fees | 1,001 | 816 | 185 | 22.7 | 1,953 | 1,586 | 367 | 23.1 | |||||||||||||||||||||||||||||||||||||||
| Capital solutions fees and other, net | 277 | 216 | 61 | 28.2 | 523 | 370 | 153 | 41.4 | |||||||||||||||||||||||||||||||||||||||
| Fee-related performance fees | 65 | 63 | 2 | 3.2 | 129 | 117 | 12 | 10.3 | |||||||||||||||||||||||||||||||||||||||
| Fee-related compensation | (343) | (279) | 64 | 22.9 | (676) | (538) | 138 | 25.7 | |||||||||||||||||||||||||||||||||||||||
| Non-compensation expenses | (215) | (189) | 26 | 13.8 | (416) | (349) | 67 | 19.2 | |||||||||||||||||||||||||||||||||||||||
| Fee Related Earnings | $ | 785 | $ | 627 | $ | 158 | 25.2% | $ | 1,513 | $ | 1,186 | $ | 327 | 27.6% | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
In this section, references to 2026 refer to the three months ended June 30, 2026 and references to 2025 refer to the three months ended June 30, 2025.
FRE was $785 million in 2026, an increase of $158 million compared to $627 million in 2025. This increase was primarily attributable to growth in fee related revenues, including management fees and capital solutions fees and other, net, partially offset by increases in fee-related compensation and non-compensation expenses.
The increase in management fees was primarily attributable to $140 million of aggregate management fees earned from Bridge funds, Athene and Athora, as well as increased subscriptions in 2026 across various funds, partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $16 million. The increase in management fees earned from Bridge funds is due to the Bridge acquisition, while the increase from Athene was primarily driven by increases in fee-generating AUM as a result of strong organic inflows. The increase in management fees earned from Athora was primarily driven by its acquisition of PIC. The decrease in management fees earned from S3 Equity and Hybrid Solutions was primarily related to the catch-up management fees for additional closes in 2025.
Capital solutions fees earned in 2026 were primarily attributable to fees earned from our opportunistic credit, direct origination, traditional private equity and hybrid value strategies.
The growth in fee related revenues was partially offset by higher fee-related compensation and non-compensation expenses. Higher fee-related compensation expense in 2026 was driven by the associated fee related revenues and increased headcount as a result of our investment in the next phase of our growth and from the acquisition of Bridge. The increase in non-compensation expenses in 2026 was primarily driven by increases in professional fees, depreciation and amortization, and higher technology expenses, including increases due to the acquisition of Bridge, partially offset by a decrease in placement fees.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
In this section, references to 2026 refer to the six months ended June 30, 2026 and references to 2025 refer to the six months ended June 30, 2025.
FRE was $1,513 million in 2026, an increase of $327 million compared to $1,186 million in 2025. This increase was primarily attributable to growth in fee related revenues, including management fees, capital solutions fees and other, net and fee-related performance fees, partially offset by increases in fee-related compensation and non-compensation expenses.
The increase in management fees was primarily attributable to $292 million of aggregate management fees earned from Bridge funds, Athene, Athora and Redding Ridge Holdings, as well as increased subscriptions in 2026 across various funds, partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $27 million. The increase in management fees earned from Bridge funds is due to the Bridge acquisition, while the increase from Athene was primarily driven by increases in fee-generating AUM as a result of strong organic inflows. The increase in management fees earned from Athora was primarily driven by its acquisition of PIC. The increase in management fees earned from Redding Ridge Holdings was primarily driven by a fee basis adjustment, resulting from a change to the fee calculation in 2026. The decrease in management fees earned from S3 Equity and Hybrid Solutions was primarily related to the catch-up management fees for additional closes in 2025.
Capital solutions fees earned in 2026 were primarily attributable to fees earned from our direct origination, opportunistic credit, traditional private equity, multi-credit and infrastructure and clean transition equity strategies.
The increase in fee-related performance fees in 2026 was primarily driven by growth across global wealth products, Bridge funds, and perpetual capital vehicles.
The growth in fee related revenues was partially offset by higher fee-related compensation expense and non-compensation expenses. Higher fee-related compensation expense in 2026 was driven by the associated fee related revenues and increased headcount as a result of our investment in the next phase of our growth and from the acquisition of Bridge. The increase in non-compensation expenses in 2026 was primarily driven by increases in professional fees, technology expenses, depreciation and amortization, and travel and entertainment expenses, including increases due to the acquisition of Bridge, partially offset by a decrease in placement fees.
Asset Management Operating Metrics
We monitor certain operating metrics that are common to the alternative asset management industry and directly impact the performance of our Asset Management segment. These operating metrics include Assets Under Management, origination, gross capital deployment and uncalled commitments.
Assets Under Management
The following presents Apollo's Total AUM and Fee-Generating AUM by investing strategy (in billions):
Note: Totals may not add due to rounding.
The following presents Apollo's AUM with Future Management Fee Potential by investing strategy (in billions):
Note: Totals may not add due to rounding
The following tables present the components of Performance Fee-Eligible AUM for Apollo's investing strategies within the Asset Management segment:
| June 30, 2026 | |||||||||||||||||
| (In millions) | Credit | Equity | Total | ||||||||||||||
|
Performance Fee-Generating AUM1
|
$ | 126,924 | $ | 83,062 | $ | 209,986 | |||||||||||
| AUM Not Currently Generating Performance Fees | 48,874 | 22,072 | 70,946 | ||||||||||||||
| Uninvested Performance Fee-Eligible AUM | 25,609 | 33,528 | 59,137 | ||||||||||||||
| Total Performance Fee-Eligible AUM | $ | 201,407 | $ | 138,662 | $ | 340,069 | |||||||||||
| June 30, 2025 | |||||||||||||||||
| (In millions) | Credit | Equity | Total | ||||||||||||||
|
Performance Fee-Generating AUM1
|
$ | 125,597 | $ | 60,438 | $ | 186,035 | |||||||||||
| AUM Not Currently Generating Performance Fees | 10,409 | 5,822 | 16,231 | ||||||||||||||
| Uninvested Performance Fee-Eligible AUM | 28,917 | 30,230 | 59,147 | ||||||||||||||
| Total Performance Fee-Eligible AUM | $ | 164,923 | $ | 96,490 | $ | 261,413 | |||||||||||
| December 31, 2025 | |||||||||||||||||
| (In millions) | Credit | Equity | Total | ||||||||||||||
|
Performance Fee-Generating AUM1
|
$ | 138,572 | $ | 83,282 | $ | 221,854 | |||||||||||
| AUM Not Currently Generating Performance Fees | 20,690 | 19,499 | 40,189 | ||||||||||||||
| Uninvested Performance Fee-Eligible AUM | 28,958 | 30,890 | 59,848 | ||||||||||||||
| Total Performance Fee-Eligible AUM | $ | 188,220 | $ | 133,671 | $ | 321,891 | |||||||||||
|
1 Performance Fee-Generating AUM of $6.3 billion, $8.8 billion and $9.8 billion as of June 30, 2026, June 30, 2025 and December 31, 2025, respectively, are above the hurdle rates or preferred returns and have been deferred to future periods when the fees are probable to not be significantly reversed.
|
|||||||||||||||||
The components of Fee-Generating AUM by investing strategy are presented below:
| June 30, 2026 | |||||||||||||||||
| (In millions) | Credit | Equity | Total | ||||||||||||||
| Fee-Generating AUM based on capital commitments | $ | - | $ | 32,708 | $ | 32,708 | |||||||||||
| Fee-Generating AUM based on invested capital | 14,678 | 50,882 | 65,560 | ||||||||||||||
| Fee-Generating AUM based on gross/adjusted assets | 647,701 | 6,063 | 653,764 | ||||||||||||||
| Fee-Generating AUM based on NAV | 91,751 | 14,226 | 105,977 | ||||||||||||||
| Total Fee-Generating AUM | $ | 754,130 | $ | 103,879 |
1
|
$ | 858,009 | ||||||||||
|
1 The weighted average remaining life of the traditional private equity funds as of June 30, 2026 was 51 months.
|
|||||||||||||||||
| June 30, 2025 | |||||||||||||||||
| (In millions) | Credit | Equity | Total | ||||||||||||||
| Fee-Generating AUM based on capital commitments | $ | - | $ | 27,408 | $ | 27,408 | |||||||||||
| Fee-Generating AUM based on invested capital | 13,662 | 30,666 | 44,328 | ||||||||||||||
| Fee-Generating AUM based on gross/adjusted assets | 479,169 | 6,641 | 485,810 | ||||||||||||||
| Fee-Generating AUM based on NAV | 69,208 | 11,554 | 80,762 | ||||||||||||||
| Total Fee-Generating AUM | $ | 562,039 | $ | 76,269 |
1
|
$ | 638,308 | ||||||||||
|
1 The weighted average remaining life of the traditional private equity funds as of June 30, 2025 was 62 months.
|
|||||||||||||||||
| December 31, 2025 | |||||||||||||||||
| (In millions) | Credit | Equity | Total | ||||||||||||||
| Fee-Generating AUM based on capital commitments | $ | - | $ | 32,928 | $ | 32,928 | |||||||||||
| Fee-Generating AUM based on invested capital | 15,495 | 50,467 | 65,962 | ||||||||||||||
| Fee-Generating AUM based on gross/adjusted assets | 511,385 | 6,180 | 517,565 | ||||||||||||||
| Fee-Generating AUM based on NAV | 79,586 | 13,098 | 92,684 | ||||||||||||||
| Total Fee-Generating AUM | $ | 606,466 | $ | 102,673 |
1
|
$ | 709,139 | ||||||||||
|
1 The weighted average remaining life of the traditional private equity funds as of December 31, 2025 was 56 months.
|
|||||||||||||||||
Apollo, through its consolidated subsidiary, ISG, provides asset management services to Athene with respect to assets in the accounts owned by or related to Athene ("Athene Accounts"), including asset allocation services, direct asset management services, asset and liability matching management, mergers and acquisitions, asset diligence, hedging and other asset management services and receives management fees for providing these services. We also provide sub-allocation services with respect to a portion of the assets in the Athene Accounts. Apollo, through its asset management business, managed or advised $415.7 billion, $366.8 billion and $392.2 billion of AUM on behalf of Athene as of June 30, 2026, June 30, 2025 and December 31, 2025, respectively.
Apollo, through ISGI, provides investment advisory services to Athora with respect to certain of its assets ("Athora Accounts"). We broadly refer to "Athora Sub-Advised" assets as those assets in the Athora Accounts which we explicitly sub-advise, as well as those assets in the Athora Accounts which are invested directly in funds and investment vehicles Apollo manages. We refer to the portion of the Athora AUM that is not Athora Sub-Advised AUM as "Athora Non-Sub Advised" AUM. See note 16 to the condensed consolidated financial statements for more details regarding the fee arrangements with respect to the assets in the Athora Accounts. Apollo managed or advised $120.9 billion, $58.7 billion and $57.2 billion of AUM on behalf of Athora as of June 30, 2026, June 30, 2025 and December 31, 2025, respectively.
The following tables summarize changes in total AUM for Apollo's investing strategies within the Asset Management segment:
| Three months ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | Credit | Equity | Total | Credit | Equity | Total | |||||||||||||||||||||||||||||
|
Change in Total AUM1:
|
|||||||||||||||||||||||||||||||||||
| Beginning of Period | $ | 834,132 | $ | 192,235 | $ | 1,026,367 | $ | 641,345 | $ | 143,813 | $ | 785,158 | |||||||||||||||||||||||
| Inflows | 48,703 | 10,973 | 59,676 | 52,250 | 8,828 | 61,078 | |||||||||||||||||||||||||||||
|
Outflows2
|
(24,158) | (476) | (24,634) | (16,528) | (399) | (16,927) | |||||||||||||||||||||||||||||
|
Other, net4
|
(9,871) | - | (9,871) | - | - | - | |||||||||||||||||||||||||||||
| Net Flows | 14,674 | 10,497 | 25,171 | 35,722 | 8,429 | 44,151 | |||||||||||||||||||||||||||||
| Realizations | (2,984) | (8,332) | (11,316) | (1,548) | (3,881) | (5,429) | |||||||||||||||||||||||||||||
|
Market Activity3
|
3,520 | 3,537 | 7,057 | 14,054 | 1,671 | 15,725 | |||||||||||||||||||||||||||||
| End of Period | $ | 849,342 | $ | 197,937 | $ | 1,047,279 | $ | 689,573 | $ | 150,032 | $ | 839,605 | |||||||||||||||||||||||
|
1 At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
|
|||||||||||||||||||||||||||||||||||
|
2 Outflows for Total AUM include redemptions of $7.3 billion and $1.4 billion during the three months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
3 Includes foreign exchange impacts of $(1.8) billion and $6.9 billion during the three months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
4 Other, net comprises certain adjustments to inflows, including amounts related to new capital pools formed by credit issuances in which Athene participates, primarily AMAPS.
|
|||||||||||||||||||||||||||||||||||
| Six months ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | Credit | Equity | Total | Credit | Equity | Total | |||||||||||||||||||||||||||||
|
Change in Total AUM1:
|
|||||||||||||||||||||||||||||||||||
| Beginning of Period | $ | 749,228 | $ | 189,178 | $ | 938,406 | $ | 616,387 | $ | 134,650 | $ | 751,037 | |||||||||||||||||||||||
| Inflows | 156,535 | 17,921 | 174,456 | 89,827 | 17,950 | 107,777 | |||||||||||||||||||||||||||||
|
Outflows2
|
(43,802) | (1,044) | (44,846) | (36,469) | (714) | (37,183) | |||||||||||||||||||||||||||||
|
Other, net4
|
(13,198) | - | (13,198) | - | - | - | |||||||||||||||||||||||||||||
| Net Flows | 99,535 | 16,877 | 116,412 | 53,358 | 17,236 | 70,594 | |||||||||||||||||||||||||||||
| Realizations | (6,195) | (12,810) | (19,005) | (2,898) | (5,981) | (8,879) | |||||||||||||||||||||||||||||
|
Market Activity3
|
6,774 | 4,692 | 11,466 | 22,726 | 4,127 | 26,853 | |||||||||||||||||||||||||||||
| End of Period | $ | 849,342 | $ | 197,937 | $ | 1,047,279 | $ | 689,573 | $ | 150,032 | $ | 839,605 | |||||||||||||||||||||||
|
1 At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
|
|||||||||||||||||||||||||||||||||||
|
2 Outflows for Total AUM include redemptions of $10.5 billion and $3.0 billion during the six months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
3 Includes foreign exchange impacts of $(3.4) billion and $10.3 billion during the six months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
4 Other, net comprises certain adjustments to inflows, including amounts related to new capital pools formed by credit issuances in which Athene participates, primarily AMAPS.
|
|||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2026
Total AUM was $1.05 trillion at June 30, 2026, an increase of $20.9 billion, or 2.0%, compared to $1.03 trillion at March 31, 2026. The net increase was primarily driven by subscriptions across the platform, the growth of our retirement services client assets and market activity, partially offset by normal course outflows at Athene, as well as realizations. More specifically, the net increase was due to:
•Net flows of $25.2 billion primarily attributable to:
•a $14.7 billion increase related to the funds we manage in our credit strategy primarily consisting of (i) $26.2 billion of subscriptions mostly related to multi-credit, asset-backed finance and direct origination funds; (ii) $10.1 billion related to the growth of our retirement services client assets, partially offset by (i) $(9.9) billion of adjustments to inflows primarily driven by AMAPS; (ii) $(7.8) billion related to ARI following the sale of its commercial mortgage loan
portfolio to Athene; and (iii) $(6.9) billion of redemptions, including $(5.0) billion related to the prepayment of AP Grange; and
•a $10.5 billion increase related to the funds we manage in our equity strategy, primarily driven by $9.6 billion of subscriptions across traditional private equity, infrastructure equity and real estate equity funds.
•Market activity of $7.1 billion, primarily attributable to:
•$3.5 billion related to the funds we manage in our equity strategy primarily consisting of traditional private equity, real estate equity and hybrid value funds; and
•$3.5 billion related to the funds we manage in our credit strategy primarily consisting of (i) $5.6 billion driven by our retirement services clients; (ii) $2.1 billion related to the direct origination, asset-backed finance and opportunistic funds we manage, partially offset by $(4.8) billion decrease related to the clients of ISGI.
•Realizations of $(11.3) billion primarily attributable to:
•$(8.3) billion related to the funds we manage in our equity strategy, largely driven by distributions from the traditional private equity and real estate equity funds; and
•$(3.0) billion related to the funds we manage in our credit strategy, largely driven by distributions from the direct origination, asset-backed finance and opportunistic credit funds.
Six Months Ended June 30, 2026
Total AUM was $1.05 trillion at June 30, 2026, an increase of $108.9 billion, or 11.6%, compared to $938.4 billion at December 31, 2025. The net increase was primarily driven by Athora's acquisition of PIC, subscriptions across the platform, the growth of our retirement services client assets and market activity, partially offset by normal course outflows at Athene, as well as realizations. More specifically, the net increase was due to:
•Net flows of $116.4 billion primarily attributable to:
•a $99.5 billion increase related to the funds we manage in our credit strategy primarily consisting of (i) $65.3 billion of inorganic inflows from Athora's acquisition of PIC; (ii) $46.4 billion of subscriptions mostly related to the multi-credit, direct origination, asset-backed finance and opportunistic credit funds we manage; and (iii) $14.4 billion related to the growth of our retirement services clients, partially offset by (i) $(13.2) billion of adjustments to inflows primarily driven by AMAPS; (ii) $(9.5) billion of redemptions, including $(5.0) billion related to the prepayment of AP Grange; and (iii) $(7.8) billion related to ARI following the sale of its commercial mortgage loan portfolio to Athene; and
•a $16.9 billion increase related to the funds we manage in our equity strategy, primarily driven by $14.6 billion of subscriptions across the traditional private equity, hybrid value and real estate equity funds we manage.
•Market activity of $11.5 billion primarily attributable to:
•$6.8 billion related to the funds we manage in our credit strategy primarily consisting of (i) $10.0 billion related to our retirement services clients; and (ii) $1.0 billion related to the opportunistic credit funds we manage, partially offset by $(5.2) billion decrease related to the clients of ISGI; and
•$4.7 billion related to the funds we manage in our equity strategy primarily driven by our hybrid value, AAA and traditional private equity funds.
•Realizations of $(19.0) billion primarily attributable to:
•$(12.8) billion related to the funds we manage in our equity strategy, largely driven by distributions across traditional private equity and real estate equity funds; and
•$(6.2) billion related to the funds we manage in our credit strategy, largely driven by distributions from the direct origination and opportunistic credit funds.
The following tables summarize changes in Fee-Generating AUM for Apollo's investing strategies within the Asset Management segment:
| Three months ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | Credit | Equity | Total | Credit | Equity | Total | |||||||||||||||||||||||||||||
|
Change in Fee-Generating AUM1:
|
|||||||||||||||||||||||||||||||||||
| Beginning of Period | $ | 732,020 | $ | 103,847 | $ | 835,867 | $ | 522,844 | $ | 72,314 | $ | 595,158 | |||||||||||||||||||||||
| Inflows | 48,149 | 3,092 | 51,241 | 38,424 | 5,804 | 44,228 | |||||||||||||||||||||||||||||
|
Outflows2
|
(16,860) | (1,915) | (18,775) | (9,429) | (929) | (10,358) | |||||||||||||||||||||||||||||
|
Other, net4
|
(9,146) | - | (9,146) | - | - | - | |||||||||||||||||||||||||||||
| Net Flows | 22,143 | 1,177 | 23,320 | 28,995 | 4,875 | 33,870 | |||||||||||||||||||||||||||||
| Realizations | (2,533) | (1,676) | (4,209) | (1,132) | (1,359) | (2,491) | |||||||||||||||||||||||||||||
|
Market Activity3
|
2,500 | 531 | 3,031 | 11,332 | 439 | 11,771 | |||||||||||||||||||||||||||||
| End of Period | $ | 754,130 | $ | 103,879 | $ | 858,009 | $ | 562,039 | $ | 76,269 | $ | 638,308 | |||||||||||||||||||||||
|
1 At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
|
|||||||||||||||||||||||||||||||||||
|
2 Outflows for Fee-Generating AUM include redemptions of $2.2 billion and $1.0 billion during the three months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
3 Includes foreign exchange impacts of $(1.6) billion and $5.4 billion during the three months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
4 Other, net comprises certain adjustments to inflows, including amounts related to new capital pools formed by credit issuances in which Athene participates, primarily AMAPS.
|
|||||||||||||||||||||||||||||||||||
| Six months ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | Credit | Equity | Total | Credit | Equity | Total | |||||||||||||||||||||||||||||
|
Change in Fee-Generating AUM1:
|
|||||||||||||||||||||||||||||||||||
| Beginning of Period | $ | 606,466 | $ | 102,673 | $ | 709,139 | $ | 495,843 | $ | 72,823 | $ | 568,666 | |||||||||||||||||||||||
| Inflows | 195,886 | 7,280 | 203,166 | 78,379 | 11,026 | 89,405 | |||||||||||||||||||||||||||||
|
Outflows2,3
|
(36,424) | (3,529) | (39,953) | (29,085) | (6,626) | (35,711) | |||||||||||||||||||||||||||||
|
Other, net5
|
(12,278) | - | (12,278) | - | - | - | |||||||||||||||||||||||||||||
| Net Flows | 147,184 | 3,751 | 150,935 | 49,294 | 4,400 | 53,694 | |||||||||||||||||||||||||||||
| Realizations | (5,271) | (3,494) | (8,765) | (1,980) | (1,647) | (3,627) | |||||||||||||||||||||||||||||
|
Market Activity4
|
5,751 | 949 | 6,700 | 18,882 | 693 | 19,575 | |||||||||||||||||||||||||||||
| End of Period | $ | 754,130 | $ | 103,879 | $ | 858,009 | $ | 562,039 | $ | 76,269 | $ | 638,308 | |||||||||||||||||||||||
|
1 At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
|
|||||||||||||||||||||||||||||||||||
|
2 Outflows for Fee-Generating AUM include redemptions of $5.0 billion and $2.5 billion during the six months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
3 Included in the equity outflows for Fee-Generating AUM for the six months ended June 30, 2025 is $4.5 billion related to the expiration of Fund VIII's fee-paying period.
|
|||||||||||||||||||||||||||||||||||
|
4 Includes foreign exchange impacts of $(2.7) billion and $8.0 billion during the six months ended June 30, 2026 and 2025, respectively.
|
|||||||||||||||||||||||||||||||||||
|
5 Other, net comprises certain adjustments to inflows, including amounts related to new capital pools formed by credit issuances in which Athene participates, primarily AMAPS.
|
|||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2026
Total Fee-Generating AUM was $858.0 billion at June 30, 2026, an increase of $22.1 billion, or 2.6%, compared to $835.9 billion at March 31, 2026. The net increase was primarily driven by subscriptions across the platform, growth of our retirement services client assets and market activity primarily in our credit strategy, partially offset by realizations. More specifically, the net increase was due to:
•Net flows of $23.3 billion attributable to the funds we manage in our credit strategy primarily consisting of (i) $13.7 billion of subscriptions primarily related to multi-credit and asset-backed finance funds; and (ii) $10.1 billion related to the growth of our retirement services client assets, partially offset by (i) $(9.1) billion of adjustments to inflows primarily driven by AMAPS; and (ii) $(1.7) billion of redemptions.
•Market activity of $3.0 billion attributable to the funds we manage in our credit strategy primarily consisting of (i) $5.6 billion driven by our retirement services clients; and (ii) $1.4 billion related to the direct origination and asset-backed finance funds we manage, partially offset by $(4.9) billion decrease related to the clients of ISGI.
•Realizations of $(4.2) billion across the credit and equity strategies.
Six Months Ended June 30, 2026
Total Fee-Generating AUM was $858.0 billion at June 30, 2026, an increase of $148.9 billion, or 21.0%, compared to $709.1 billion at December 31, 2025. The net increase was primarily driven by Athora's acquisition of PIC, subscriptions across the platform, growth of our retirement services client assets and market activity primarily in our credit strategy, partially offset by realizations. More specifically, the net increase was due to:
•Net flows of $150.9 billion attributable to the funds we manage in our credit strategy primarily consisting of (i) $65.3 billion of inorganic inflows from Athora's acquisition of PIC; (ii) $41.6 billion primarily due to a fee basis adjustment related to Redding Ridge; (iii) $23.5 billion of subscriptions primarily related to multi-credit and direct origination funds we manage; and (iv) $14.4 billion related to the growth of our retirement services client assets, partially offset by (i) $(12.3) billion of adjustments to inflows primarily driven by AMAPS; and (ii) $(4.2) billion of redemptions.
•Market activity of $6.7 billion attributable to the funds we manage in our credit strategy primarily consisting of $10.0 billion related to our retirement services clients, partially offset by $(5.3) billion decrease related to clients of ISGI.
•Realizations of $(8.8) billion across the credit and equity strategies.
Origination, Gross Capital Deployment and Uncalled Commitments
Origination represents (i) capital that has been invested in new equity, debt or debt-like investments by Apollo's equity and credit strategies (whether purchased by funds and accounts managed by Apollo, or syndicated to third parties) where Apollo or one of Apollo's origination platforms has sourced, negotiated, or significantly affected the commercial terms of the investment; (ii) new capital pools formed by debt issuances, including CLOs; and (iii) net purchases of certain assets by the funds and accounts we manage that we consider to be private, illiquid, and hard to access assets and which the funds and accounts otherwise may not be able to meaningfully access. Origination generally excludes any issuance of debt or debt-like investments by the portfolio companies of the funds we manage.
Gross capital deployment represents the gross capital that has been invested by the funds and accounts we manage during the relevant period, but excludes certain investment activities primarily related to hedging and cash management functions at the Company. Gross capital deployment is not reduced or netted down by sales or refinancings, and takes into account leverage used by the funds and accounts we manage in gaining exposure to the various investments that they have made.
Uncalled commitments, by contrast, represent unfunded capital commitments that certain of the funds we manage have received from fund investors to fund future or current fund investments and expenses.
Origination is indicative of our ability to originate assets for the funds we manage, through our origination platforms and our corporate solutions capabilities. Gross capital deployment and uncalled commitments are indicative of the pace and magnitude of fund capital that is deployed or will be deployed. Origination, gross capital deployment and uncalled commitments could result in future revenues that include management fees, capital solutions fees and performance fees to the extent they are fee-generating. They can also give rise to future costs that are related to the hiring of additional resources to manage and account for the additional origination activities and the capital that is deployed or will be deployed. Management uses origination, gross capital deployment and uncalled commitments as key operating metrics since we believe the results are measures of investment activities of the funds we manage.
The following presents origination, gross capital deployment and uncalled commitments (in billions):
Note: Totals may not add due to rounding
As of June 30, 2026 and December 31, 2025, Apollo had $82 billion and $73 billion of dry powder, respectively, which 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. These amounts exclude uncalled commitments which can only be called for fund fees and expenses and commitments from perpetual capital vehicles.
Retirement Services
The following table presents Spread Related Earnings, the performance measure of our Retirement Services segment:
| Three months ended June 30, | Total Change |
Percentage Change |
Six months ended June 30, |
Total Change |
Percentage Change |
||||||||||||||||||||||||||||||||||||||||||
| (In millions, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Retirement Services | |||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income and other net investment income | $ | 3,686 | $ | 3,179 | $ | 507 | 15.9% | $ | 7,237 | $ | 6,093 | $ | 1,144 | 18.8% | |||||||||||||||||||||||||||||||||
| Alternative net investment income | 348 | 319 | 29 | 9.1 | 558 | 634 | (76) | (12.0) | |||||||||||||||||||||||||||||||||||||||
| Net investment earnings | 4,034 | 3,498 | 536 | 15.3 | 7,795 | 6,727 | 1,068 | 15.9 | |||||||||||||||||||||||||||||||||||||||
| Strategic capital management fees | 37 | 32 | 5 | 15.6 | 73 | 61 | 12 | 19.7 | |||||||||||||||||||||||||||||||||||||||
| Cost of funds | (2,942) | (2,470) | 472 | 19.1 | (5,749) | (4,680) | 1,069 | 22.8 | |||||||||||||||||||||||||||||||||||||||
| Net investment spread | 1,129 | 1,060 | 69 | 6.5 | 2,119 | 2,108 | 11 | 0.5 | |||||||||||||||||||||||||||||||||||||||
| Other operating expenses | (111) | (107) | 4 | 3.7 | (229) | (221) | 8 | 3.6 | |||||||||||||||||||||||||||||||||||||||
| Interest and other financing costs | (141) | (132) | 9 | 6.8 | (294) | (262) | 32 | 12.2 | |||||||||||||||||||||||||||||||||||||||
| Spread Related Earnings | $ | 877 | $ | 821 | $ | 56 | 6.8% | $ | 1,596 | $ | 1,625 | $ | (29) | (1.8)% | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
In this section, references to 2026 refer to the three months ended June 30, 2026 and references to 2025 refer to the three months ended June 30, 2025.
Spread Related Earnings
SRE was $877 million in 2026, an increase of $56 million, or 7%, compared to $821 million in 2025. The increase in SRE was primarily driven by an increase in net investment earnings and strategic capital management fees, partially offset by an increase in cost of funds and interest and other financing costs.
Net investment earnings were $4.0 billion in 2026, an increase of $536 million from $3.5 billion in 2025, primarily driven by $38.5 billion of growth in Athene's average net invested assets during the previous twelve months, higher rates on new deployment compared to Athene's existing portfolio related to the higher interest rate environment, favorable derivative impacts and an increase in alternative net investment income. These impacts were partially offset by lower floating rate income, higher investment management fees driven by the significant growth in Athene's investment portfolio over the previous twelve months, later deployment into assets during the quarter compared to 2025 and run-off of higher-yielding assets. The increase in alternative net investment income compared to 2025 was primarily driven by more favorable performance within equity funds, partially offset by less favorable performance within origination and retirement services platforms, as well as within credit funds. The increase in income from equity funds was mainly attributable to significant growth in Athene's structured equity portfolio, as well as more favorable performance within real assets in 2026 compared to 2025. The decrease in income from origination platforms was mainly attributable to a valuation increase related to strong performance from Wheels in 2025 and strong growth from origination partnerships within Aqua Finance, Inc. ("Aqua Finance") in 2025, partially offset by favorable pricing that increased the valuation of an investment within Athene's other origination platforms in 2026. The decrease in income from retirement services platforms was related to a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge Financial, Inc. ("Corebridge"), partially offset by the upsize of Athene's investment in Athora and a valuation increase on Athora in 2026 related to updated business plans following its acquisition of PIC.
Strategic capital management fees were $37 million in 2026, an increase of $5 million from $32 million in 2025, primarily driven by additional fees received from ADIP II attributable to strong net flows into ACRA 2 over the previous twelve months.
Cost of funds was $2.9 billion in 2026, an increase of $472 million from $2.5 billion in 2025, primarily driven by significant growth in deferred annuity and funding agreement business, higher rates on new business, as well as run-off of lower rate business, compared to existing blocks and an increase in the amortization of DAC and DSI. These impacts were partially offset by lower rates on floating rate funding agreements, later origination of new business within the quarter compared to 2025, lower VOBA amortization and increased product charge income.
Interest and other financing costs were $141 million in 2026, an increase of $9 million from $132 million in 2025, primarily driven by a full quarter of interest expense on long-term debt issued in the second quarter of 2025, partially offset by a decrease in preferred stock dividends due to the redemption of Athene's Fixed-Rate Reset Perpetual Non-Cumulative Preferred Stock, Series C ("Series C preferred stock") in the second quarter of 2025.
Net Investment Spread
| Three months ended June 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Fixed income and other net investment earned rate | 5.05 | % | 4.97 | % | 8 bps | ||||||||||||
| Alternative net investment earned rate | 9.04 | % | 9.86 | % | (82) bps | ||||||||||||
| Net investment earned rate | 5.25 | % | 5.21 | % | 4 bps | ||||||||||||
| Strategic capital management fees | 0.05 | % | 0.05 | % | 0 bps | ||||||||||||
| Cost of funds | (3.83) | % | (3.68) | % | 15 bps | ||||||||||||
| Net investment spread | 1.47 | % | 1.58 | % | (11) bps | ||||||||||||
Net investment spread was 1.47% in 2026, a decrease of 11 basis points compared to 1.58% in 2025, driven by higher cost of funds, partially offset by a higher net investment earned rate.
Cost of funds was 3.83% in 2026, an increase of 15 basis points compared to 3.68% in 2025, primarily driven by higher rates on new business, as well as run-off of lower rate business, compared to existing blocks, and an increase in the amortization of DAC and DSI, partially offset by lower rates on floating rate funding agreements, later origination of new business within the quarter compared to 2025, lower VOBA amortization and increased product charge income.
Net investment earned rate was 5.25% in 2026, an increase of 4 basis points compared to 5.21% in 2025, primarily driven by higher returns on Athene's fixed income portfolio, partially offset by lower returns on its alternative investment portfolio. The fixed income and other net investment earned rate was 5.05% in 2026, an increase from 4.97% in 2025, primarily driven by higher rates on new deployment compared to Athene's existing portfolio related to the higher interest rate environment and favorable derivative impacts, partially offset by lower floating rate income, later deployment into assets during the quarter compared to 2025 and run-off of higher-yielding assets. The alternative net investment earned rate was 9.04% in 2026, a decrease from 9.86% in 2025, primarily due to growth in Athene's average alternative net invested assets of $2.5 billion compared to 2025, which outpaced the increase in alternative net investment income. The lower alternative net investment earned rate was primarily driven by lower returns within origination and retirement services platforms, as well as within credit funds, partially offset by higher returns within equity funds. The lower returns from origination platforms were mainly attributable to a valuation increase related to strong performance from Wheels in 2025 and strong growth from origination partnerships within Aqua Finance in 2025, partially offset by favorable pricing that increased the valuation of an investment within Athene's other origination platforms in 2026. The lower returns from retirement services platforms were related to a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge, partially offset by a valuation increase on Athora in 2026 related to updated business plans following its acquisition of PIC. The higher returns from equity funds were primarily driven by strong performance within real assets.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
In this section, references to 2026 refer to the six months ended June 30, 2026 and references to 2025 refer to the six months ended June 30, 2025.
Spread Related Earnings
SRE was $1.6 billion in 2026, a decrease of $29 million, or 2%, compared to $1.6 billion in 2025. The decrease in SRE was primarily driven by an increase in cost of funds and interest and other financing costs, partially offset by an increase in net investment earnings and strategic capital management fees.
Cost of funds was $5.7 billion in 2026, an increase of $1.1 billion from $4.7 billion in 2025, primarily driven by significant growth in deferred annuity and funding agreement business, higher rates on new business, as well as run-off of lower rate business, compared to existing blocks, and an increase in the amortization of DAC and DSI. These impacts were partially offset by lower rates on floating rate funding agreements, later origination of new business within the year compared to 2025, lower VOBA amortization and increased product charge income.
Interest and other financing costs were $294 million in 2026, an increase of $32 million from $262 million in 2025, primarily driven by a full six months of interest expense on long-term debt issued in the second quarter of 2025, partially offset by a decrease in preferred stock dividends due to the redemption of Athene's Series C preferred stock in the second quarter of 2025.
Net investment earnings were $7.8 billion in 2026, an increase of $1.1 billion from $6.7 billion in 2025, primarily driven by $40.2 billion of growth in Athene's average net invested assets, higher rates on new deployment compared to Athene's existing portfolio related to the higher interest rate environment and favorable derivative impacts. These impacts were partially offset by a decrease in alternative net investment income, lower floating rate income, higher investment management fees driven by the significant growth in Athene's investment portfolio, later deployment into assets during the year compared to 2025 and run-off of higher-yielding assets. The decrease in alternative net investment income compared to 2025 was primarily driven by less favorable performance within origination platforms and credit funds, partially offset by more favorable performance within equity funds and retirement services platforms. The decrease in income from origination platforms was mainly attributable to a valuation increase related to strong performance from Wheels in 2025, outsized performance from MidCap FinCo attributable to increased projections in 2025, strong performance from Redding Ridge related to greater issuance in 2025 and a valuation decrease on Atlas resulting from an underlying asset impairment in 2026, partially offset by favorable pricing that increased the valuation of an investment within Athene's other origination platforms in 2026. The increase in income from equity funds was mainly attributable to significant growth in Athene's structured equity portfolio, as well as more favorable performance within
real assets in 2026 compared to 2025, partially offset by outperformance from A-A Onshore Fund, LLC ("A-A Onshore") in 2025. The increase in income from retirement services platforms was primarily related to the upsize of Athene's investment in Athora and a valuation increase on Athora in 2026 related to updated business plans following its acquisition of PIC, partially offset by a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge.
Strategic capital management fees were $73 million in 2026, an increase of $12 million from $61 million in 2025, primarily driven by additional fees received from ADIP II attributable to strong net flows into ACRA 2 in 2026.
Net Investment Spread
| Six months ended June 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Fixed income and other net investment earned rate | 5.04 | % | 4.89 | % | 15 bps | ||||||||||||
| Alternative net investment earned rate | 7.49 | % | 10.05 | % | NM | ||||||||||||
| Net investment earned rate | 5.16 | % | 5.14 | % | 2 bps | ||||||||||||
| Strategic capital management fees | 0.05 | % | 0.05 | % | 0 bps | ||||||||||||
| Cost of funds | (3.80) | % | (3.57) | % | 23 bps | ||||||||||||
| Net investment spread | 1.41 | % | 1.62 | % | (21) bps | ||||||||||||
Net investment spread was 1.41% in 2026, a decrease of 21 basis points compared to 1.62% in 2025, driven by higher cost of funds, partially offset by a higher net investment earned rate.
Cost of funds was 3.80% in 2026, an increase of 23 basis points compared to 3.57% in 2025, primarily driven by higher rates on new business, as well as run-off of lower rate business, compared to existing blocks and an increase in the amortization of DAC and DSI, partially offset by lower rates on floating rate funding agreements, later origination of new business within the year compared to 2025, lower VOBA amortization and increased product charge income.
Net investment earned rate was 5.16% in 2026, an increase of 2 basis points compared to 5.14% in 2025, primarily driven by higher returns on Athene's fixed income portfolio, partially offset by lower returns on its alternative investment portfolio. The fixed income and other net investment earned rate was 5.04% in 2026, an increase from 4.89% in 2025, primarily driven by higher rates on new deployment compared to Athene's existing portfolio related to the higher interest rate environment and favorable derivative impacts, partially offset by lower floating rate income, later deployment into assets during the year compared to 2025 and run-off of higher-yielding assets. The alternative net investment earned rate was 7.49% in 2026, a decrease from 10.05% in 2025, primarily driven by lower returns within origination and retirement services platforms, as well as within credit funds, partially offset by higher returns within equity funds. The lower returns from origination platforms were mainly attributable to a valuation increase related to strong performance from Wheels in 2025, outsized performance from MidCap FinCo attributable to increased projections in 2025, strong performance from Redding Ridge related to greater issuance in 2025 and a valuation decrease on Atlas resulting from an underlying asset impairment in 2026, partially offset by favorable pricing that increased the valuation of an investment within Athene's other origination platforms in 2026. The lower returns from retirement services platforms were primarily related to a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge, partially offset by a valuation increase on Athora in 2026 related to updated business plans following its acquisition of PIC. The higher equity fund returns were primarily driven by strong performance within real assets, partially offset by outperformance from A-A Onshore in 2025.
Investment Portfolio
Athene had total investments, including related parties and consolidated VIEs, of $409.0 billion and $386.1 billion as of June 30, 2026 and December 31, 2025, respectively. Athene's investment strategy seeks to achieve sustainable risk-adjusted returns through the disciplined management of its investment portfolio against its long-duration liabilities, coupled with the diversification of risk. The investment strategies focus primarily on a buy-and-hold asset allocation strategy that may be adjusted periodically in response to changing market conditions and the nature of Athene's liability profile. Athene takes advantage of its generally persistent liability profile by identifying investment opportunities with an emphasis on earning incremental yield by taking measured liquidity and complexity risk rather than assuming incremental credit risk. Athene is invested in a diverse array of primarily high-grade fixed income assets including corporate bonds, structured securities, and commercial and residential real estate loans, among others. Athene also maintains holdings in floating rate and less rate-sensitive instruments, including CLOs, non-agency RMBS and various types of structured products. In addition to its fixed
income portfolio, Athene opportunistically allocates approximately 5% of its portfolio to alternative investments where it primarily focuses on fixed income-like, cash flow-based investments.
The following table presents the carrying values of Athene's total investments, including related parties and consolidated VIEs:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions, except percentages) | Carrying Value | Percentage of Total | Carrying Value | Percentage of Total | |||||||||||||||||||
| Available-for-sale securities, at fair value | |||||||||||||||||||||||
| U.S. government and agencies | $ | 23,416 | 5.7 | % | $ | 16,898 | 4.4 | % | |||||||||||||||
| U.S. state, municipal and political subdivisions | 526 | 0.1 | % | 759 | 0.2 | % | |||||||||||||||||
| Foreign governments | 1,731 | 0.4 | % | 1,659 | 0.4 | % | |||||||||||||||||
| Corporate | 92,925 | 22.7 | % | 89,431 | 23.2 | % | |||||||||||||||||
| CLO | 21,332 | 5.2 | % | 26,272 | 6.8 | % | |||||||||||||||||
| ABS | 36,536 | 8.9 | % | 35,462 | 9.2 | % | |||||||||||||||||
| CMBS | 12,284 | 3.0 | % | 13,084 | 3.4 | % | |||||||||||||||||
| RMBS | 8,013 | 2.0 | % | 9,032 | 2.3 | % | |||||||||||||||||
| Total available-for-sale securities, at fair value | 196,763 | 48.0 | % | 192,597 | 49.9 | % | |||||||||||||||||
| Trading securities, at fair value | 6,318 | 1.5 | % | 6,409 | 1.7 | % | |||||||||||||||||
| Equity securities, at fair value | 697 | 0.2 | % | 822 | 0.2 | % | |||||||||||||||||
| Mortgage loans, at fair value | 99,974 | 24.4 | % | 91,918 | 23.8 | % | |||||||||||||||||
| Investment funds | 276 | 0.1 | % | 108 | - | % | |||||||||||||||||
| Policy loans | 293 | 0.1 | % | 301 | 0.1 | % | |||||||||||||||||
| Funds withheld at interest | 13,787 | 3.4 | % | 15,413 | 4.0 | % | |||||||||||||||||
| Derivative assets | 11,034 | 2.7 | % | 9,190 | 2.4 | % | |||||||||||||||||
| Short-term investments | 230 | 0.1 | % | 175 | - | % | |||||||||||||||||
| Other investments | 4,470 | 1.1 | % | 4,148 | 1.1 | % | |||||||||||||||||
| Total investments | 333,842 | 81.6 | % | 321,081 | 83.2 | % | |||||||||||||||||
| Investments in related parties | |||||||||||||||||||||||
| Available-for-sale securities, at fair value | |||||||||||||||||||||||
| Corporate | 3,364 | 0.8 | % | 2,317 | 0.6 | % | |||||||||||||||||
| CLO | 6,746 | 1.7 | % | 7,203 | 1.9 | % | |||||||||||||||||
| ABS | 22,857 | 5.6 | % | 16,366 | 4.2 | % | |||||||||||||||||
| CMBS | 111 | - | % | 161 | - | % | |||||||||||||||||
| Total available-for-sale securities, at fair value | 33,078 | 8.1 | % | 26,047 | 6.7 | % | |||||||||||||||||
| Trading securities, at fair value | 1,290 | 0.3 | % | 454 | 0.1 | % | |||||||||||||||||
| Equity securities, at fair value | - | - | % | 266 | 0.1 | % | |||||||||||||||||
| Mortgage loans, at fair value | 1,549 | 0.4 | % | 1,486 | 0.4 | % | |||||||||||||||||
| Investment funds | 3,230 | 0.8 | % | 2,149 | 0.6 | % | |||||||||||||||||
| Funds withheld at interest | 3,802 | 0.9 | % | 4,215 | 1.1 | % | |||||||||||||||||
| Short-term investments | 18 | - | % | 18 | - | % | |||||||||||||||||
| Other investments, at fair value | 333 | 0.1 | % | 344 | 0.1 | % | |||||||||||||||||
| Total related party investments | 43,300 | 10.6 | % | 34,979 | 9.1 | % | |||||||||||||||||
| Total investments, including related parties | 377,142 | 92.2 | % | 356,060 | 92.3 | % | |||||||||||||||||
| Investments of consolidated VIEs | |||||||||||||||||||||||
| Trading securities, at fair value | 2,103 | 0.5 | % | 3,120 | 0.8 | % | |||||||||||||||||
| Mortgage loans, at fair value | 2,058 | 0.5 | % | 2,140 | 0.5 | % | |||||||||||||||||
| Investment funds, at fair value | 26,798 | 6.6 | % | 23,888 | 6.2 | % | |||||||||||||||||
| Other investments | 925 | 0.2 | % | 844 | 0.2 | % | |||||||||||||||||
| Total investments of consolidated VIEs | 31,884 | 7.8 | % | 29,992 | 7.7 | % | |||||||||||||||||
| Total investments, including related parties and consolidated VIEs | $ | 409,026 | 100.0 | % | $ | 386,052 | 100.0 | % | |||||||||||||||
Athene's total investments, including related parties and consolidated VIEs, were $409.0 billion and $386.1 billion as of June 30, 2026 and December 31, 2025, respectively. The $23.0 billion increase was primarily driven by significant growth from
gross organic inflows of $41.8 billion in excess of gross liability outflows of $20.9 billion, reinvestment of earnings, an increase in consolidated VIE investments and an increase in derivative assets. The increase in consolidated VIE investments was primarily related to an increase in investment funds attributable to net contributions from third-party investors into AAA and AAA Lux and favorable performance of the underlying assets within AAA and AAA Lux, partially offset by the impact on investments from the deconsolidation of a VIE. The increase in derivative assets was primarily related to Athene's call options due to favorable equity market performance in 2026, as well as favorable impacts from derivative swap and forward contracts. These impacts were partially offset by unrealized losses on investments, including foreign exchange impacts, and a decrease in short-term repurchase agreements outstanding. The unrealized losses on investments during the six months ended June 30, 2026 included AFS securities of $1.7 billion, as well as unrealized losses on mortgage loans, attributable to an increase in U.S. Treasury rates in 2026. The unrealized foreign exchange losses on foreign-denominated assets were primarily attributable to the strengthening of the U.S. dollar against foreign currencies in 2026.
Athene's investment portfolio consists largely of high-quality fixed maturity securities, loans and short-term investments, as well as additional opportunistic holdings in investment funds and other instruments, including equity holdings. Fixed maturity securities and loans include publicly issued corporate bonds, government and other sovereign bonds, privately placed corporate bonds and loans, mortgage loans, CMBS, RMBS, CLOs and ABS. A significant majority of Athene's AFS portfolio, 97.8% and 97.3% as of June 30, 2026 and December 31, 2025, respectively, was invested in assets considered investment grade with an NAIC designation of 1 or 2.
Athene invests a portion of its investment portfolio in mortgage loans, which are generally composed of high-quality commercial first-lien, as well as mezzanine real estate loans. Athene has acquired mortgage loans through acquisitions and reinsurance arrangements, as well as through an active program to invest in new mortgage loans. It invests in CMLs, primarily on income-producing properties including apartments, industrial properties, office buildings, hotels and retail buildings. Athene's RML portfolio primarily consists of first-lien RMLs collateralized by properties located in the U.S.
Funds withheld at interest represent a receivable for amounts contractually withheld by ceding companies in accordance with modco and funds withheld reinsurance agreements in which Athene acts as the reinsurer. Generally, assets equal to statutory reserves are withheld and legally owned by the ceding company.
While the substantial majority of Athene's investment portfolio has been allocated to corporate bonds and structured credit products, a key component of Athene's investment strategy is the opportunistic acquisition of investment funds with attractive risk and return profiles. Athene's investment fund portfolio consists of funds or similar equity structures that employ various strategies including equity and credit funds. Athene has a strong preference for alternative investments that have some or all of the following characteristics, among others: (1) investments with credit- or debt-like characteristics (for example, a stipulated maturity and par value), or alternatively, investments with reduced volatility when compared to pure equity; or (2) investments that Athene believes have less downside risk.
Athene holds derivatives for economic hedging purposes to reduce its exposure to the cash flow variability of assets and liabilities, equity market risk, foreign exchange risk and interest rate risk. Athene's primary use of derivative instruments relates to providing the income needed to fund the annual index credits on its indexed annuity products. Athene primarily uses indexed options to economically hedge indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specific market index. Athene also uses derivative instruments, such as forward contracts and swaps, to hedge foreign currency exposure resulting from foreign-denominated assets and liabilities and to help manage its net floating rate position.
Net Invested Assets
The following summarizes Athene's net invested assets:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (In millions, except percentages) |
Net Invested Asset Value1
|
Percentage of Total |
Net Invested Asset Value1
|
Percentage of Total | |||||||||||||||||||
| Corporate | $ | 89,692 | 28.5 | % | $ | 86,664 | 29.6 | % | |||||||||||||||
| CLO | 21,897 | 7.0 | % | 25,401 | 8.7 | % | |||||||||||||||||
| Credit | 111,589 | 35.5 | % | 112,065 | 38.3 | % | |||||||||||||||||
| CML | 38,930 | 12.4 | % | 31,789 | 10.9 | % | |||||||||||||||||
| RML | 42,786 | 13.6 | % | 43,326 | 14.8 | % | |||||||||||||||||
| RMBS | 7,056 | 2.2 | % | 7,592 | 2.6 | % | |||||||||||||||||
| CMBS | 9,414 | 3.0 | % | 9,877 | 3.4 | % | |||||||||||||||||
| Real estate | 98,186 | 31.2 | % | 92,584 | 31.7 | % | |||||||||||||||||
| ABS | 44,155 | 14.1 | % | 38,417 | 13.1 | % | |||||||||||||||||
| Alternative investments | 15,745 | 5.0 | % | 13,868 | 4.7 | % | |||||||||||||||||
| State, municipal, political subdivisions and foreign government | 3,024 | 1.0 | % | 3,081 | 1.0 | % | |||||||||||||||||
| Equity securities | 1,797 | 0.6 | % | 2,039 | 0.7 | % | |||||||||||||||||
| Short-term investments | 242 | 0.1 | % | 207 | 0.1 | % | |||||||||||||||||
| U.S. government and agencies | 19,724 | 6.3 | % | 14,225 | 4.9 | % | |||||||||||||||||
| Other investments | 84,687 | 27.1 | % | 71,837 | 24.5 | % | |||||||||||||||||
| Cash and cash equivalents | 13,512 | 4.3 | % | 10,490 | 3.6 | % | |||||||||||||||||
| Other | 6,116 | 1.9 | % | 5,438 | 1.9 | % | |||||||||||||||||
| Net invested assets | $ | 314,090 | 100.0 | % | $ | 292,414 | 100.0 | % | |||||||||||||||
|
1 See "Managing Business Performance - Key Segment and Non-U.S. GAAP Performance Measures" for the definition of net invested assets.
|
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Athene's net invested assets were $314.1 billion and $292.4 billion as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, corporate securities included $24.1 billion of private placements, which represented 7.7% of Athene's net invested assets. The $21.7 billion increase in net invested assets was primarily driven by growth from net organic inflows of $33.1 billion in excess of net liability outflows of $16.2 billion, the reinvestment of earnings and favorable alternative investment performance. These impacts were partially offset by a decrease in net short-term repurchase agreements outstanding in 2026 and the payment of common and preferred stock dividends.
In managing its business, Athene utilizes net invested assets as presented in the above table. Net invested assets do not correspond to Athene's total investments, including related parties, on the condensed consolidated statements of financial condition, as discussed previously in "Managing Business Performance - Key Segment and Non-U.S. GAAP Performance Measures." Net invested assets represent Athene's investments that directly back its net reserve liabilities and surplus assets. Athene believes this view of its portfolio provides a view of the assets for which it has economic exposure. Athene adjusts the presentation for assumed and ceded reinsurance transactions to include or exclude the underlying investments based upon the contractual transfer of economic exposure to such underlying investments. Athene also adjusts for VIEs to show the net investment in the funds, which are included in the alternative investments line above, as well as adjusting for the allowance for credit losses. Net invested assets include Athene's proportionate share of ACRA investments, based on its economic ownership, but exclude the proportionate share of investments associated with the non-controlling interests.
Net invested assets is utilized by management to evaluate Athene's investment portfolio. Net invested assets is used in the computation of net investment earned rate, which allows Athene to analyze the profitability of its investment portfolio. Net invested assets is also used in Athene's risk management processes for asset purchases, product design and underwriting, stress scenarios, liquidity and ALM.
AP Grange
During the second quarter of 2026, AP Grange called its outstanding ABS debt and as a result, Athene recognized a gain of $673 million in GAAP income. Additionally, within its non-GAAP results for the second quarter of 2026, Athene recognized a non-operating gain of $458 million, net of the ACRA non-controlling interests.
Principal Investing
The following table presents Principal Investing Income, the performance measure of our Principal Investing segment.
| Three months ended June 30, | Total Change | Percentage Change | Six months ended June 30, | Total Change | Percentage Change | ||||||||||||||||||||||||||||||||||||||||||
| (In millions, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Principal Investing: | |||||||||||||||||||||||||||||||||||||||||||||||
| Realized performance fees | $ | 130 | $ | 219 | $ | (89) | (40.6)% | $ | 487 | $ | 409 | $ | 78 | 19.1% | |||||||||||||||||||||||||||||||||
| Realized investment income (loss) | 27 | 13 | 14 | 107.7 | 73 | 41 | 32 | 78.0 | |||||||||||||||||||||||||||||||||||||||
| Principal investing compensation | (123) | (168) | (45) | (26.8) | (436) | (356) | 80 | 22.5 | |||||||||||||||||||||||||||||||||||||||
| Other operating expenses | (18) | (17) | 1 | 5.9 | (33) | (33) | - | - | |||||||||||||||||||||||||||||||||||||||
| Principal Investing Income (PII) | $ | 16 | $ | 47 | $ | (31) | (66.0)% | $ | 91 | $ | 61 | $ | 30 | 49.2% | |||||||||||||||||||||||||||||||||
As described in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations-General", earnings from our Principal Investing segment are inherently more volatile in nature than earnings from our Asset Management segment due to the intrinsic cyclical nature of performance fees, one of the key drivers of PII performance.
Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
In this section, references to 2026 refer to the three months ended June 30, 2026 and references to 2025 refer to the three months ended June 30, 2025.
PII was $16 million in 2026, a decrease of $31 million, as compared to $47 million in 2025. This decrease was primarily attributable to a decrease in realized performance fees of $89 million, partially offset by a decrease in principal investing compensation expense of $45 million and an increase in realized investment income of $14 million.
The decrease in realized performance fees of $89 million in 2026 was primarily due to a decrease in realized performance fees generated from Fund IX, partially offset by an increase in realized performance fees earned from ADIP, HVF II and ANRP III.
Principal investing compensation expense of $123 million in 2026 decreased $45 million, as compared to $168 million in 2025. The decrease in 2026 was primarily due to a decrease in profit sharing expense corresponding to the decrease in realized performance fees. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period.
The increase in realized investment income of $14 million in 2026 was primarily attributable to realizations from certain of the Company's investments.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
In this section, references to 2026 refer to the six months ended June 30, 2026 and references to 2025 refer to the six months ended June 30, 2025.
PII was $91 million in 2026, an increase of $30 million, as compared to $61 million in 2025. This increase was primarily attributable to increases in realized performance fees and realized investment income of $78 million and $32 million, respectively, partially offset by an increase in principal investing compensation expense of $80 million.
The increase in realized performance fees of $78 million in 2026 was primarily driven by an increase in realized performance fees generated from a portfolio company sale and Fund X, partially offset by a decrease in realized performance fees earned from Fund IX.
The increase in realized investment income of $32 million in 2026 was primarily attributable to gains realized in connection with a portfolio company sale and from certain of the Company's investments, partially offset by realized loss on disposition of investments.
Principal investing compensation expense of $436 million in 2026 increased $80 million, as compared to $356 million in 2025. The increase in 2026 was primarily due to an increase in profit sharing expense corresponding to the increase in realized
performance fees. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period.
The Historical Investment Performance of Our Funds
Below we present information relating to the historical performance of the funds we manage, including certain legacy Apollo funds that do not have a meaningful amount of unrealized investments, and in respect of which the general partner interest has not been contributed to us.
When considering the data presented below, you should note that the historical results of funds we manage are not indicative of the future results that you should expect from such funds, from any future funds we may raise or from your investment in our common stock.
An investment in our common stock is not an investment in any of the Apollo managed funds, and the assets and revenues of the funds we manage are not directly available to us. The historical and potential future returns of the funds we manage are not directly linked to returns on our common stock. Therefore, you should not conclude that continued positive performance of the funds we manage will necessarily result in positive returns on an investment in our common stock. However, poor performance of the funds that we manage would cause a decline in our revenue from such funds, and would therefore have a negative effect on our performance and in all likelihood the value of our common stock.
Moreover, the historical returns of funds we manage should not be considered indicative of the future results you should expect from such funds or from any future funds we may raise. There can be no assurance that any Apollo fund will continue to achieve the same results in the future.
Finally, our private equity IRRs have historically varied greatly from fund to fund. For example, Fund VI generated a 12% gross IRR and a 9% net IRR since its inception through June 30, 2026, while Fund V generated a 61% gross IRR and a 44% net IRR since its inception through its liquidation in 2023. Accordingly, the IRR going forward for any current or future fund may vary considerably from the historical IRR generated by any particular fund, or for our private equity funds as a whole. Future returns will also be affected by the applicable risks, including risks of the industries and businesses in which a particular fund invests. See "Item 1A. Risk Factors-Risks Relating to Our Asset Management Business-"Historical performance metrics are unreliable indicators of our current or future results of operations" in our 2025 Annual Report.
Investment Record
The following table summarizes the investment record by strategy of Apollo's significant commitment-based funds that have a defined maturity date 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. All amounts are as of June 30, 2026, unless otherwise noted.
| (In millions, except IRR) |
Vintage Year |
Total AUM |
Committed Capital |
Total Invested Capital | Realized Value | Remaining Cost | Unrealized Value | Total Value |
Gross IRR |
Net IRR |
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| Credit: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Accord VII1
|
2026 | $ | 1,949 | $ | 1,948 | $ | 231 | $ | 102 | $ | 131 | $ | 135 | $ | 237 |
NM4
|
NM4
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Accord I, II, III, III B, IV, V & VI1
|
Various | - | 9,693 | 7,455 | 7,974 | - | - | 7,974 | 18 | % | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Accord+ II | 2025 | 5,566 | 4,796 | 7,211 | 3,213 | 4,467 | 4,633 | 7,846 |
NM4
|
NM4
|
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| Accord+ | 2021 | 2,403 | 2,370 | 7,062 | 8,020 | 6 | 18 | 8,038 | 14 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ADIP II | 2024 | 7,192 | 6,016 | 3,340 | - | 3,340 | 4,455 | 4,455 | 17 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ADIP I | 2020 | 5,288 | 3,254 | 2,620 | 2,315 | 2,320 | 2,699 | 5,014 | 21 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
| EPF IV | 2023 | 3,321 | 3,102 | 2,095 | 874 | 1,359 | 1,685 | 2,559 | 16 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||
| EPF III | 2017 | 2,034 | 4,538 | 5,100 | 4,838 | 1,244 | 1,082 | 5,920 | 6 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Credit | $ | 27,753 | $ | 35,717 | $ | 35,114 | $ | 27,336 | $ | 12,867 | $ | 14,707 | $ | 42,043 | |||||||||||||||||||||||||||||||||||||||||||||
| Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fund X | 2023 | $ | 23,443 | $ | 19,877 | $ | 11,455 | $ | 3,941 | $ | 9,207 | $ | 12,931 | $ | 16,872 | 31 | % | 21 | % | ||||||||||||||||||||||||||||||||||||||||
| Fund IX | 2018 | 25,056 | 24,729 | 23,714 | 19,838 | 14,281 | 20,857 | 40,695 | 20 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fund VIII | 2013 | 4,229 | 18,377 | 16,926 | 26,446 | 2,264 | 2,378 | 28,824 | 13 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fund VII | 2008 | - | 14,677 | 16,461 | 34,294 | - | - | 34,294 | 33 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fund VI | 2006 | 380 | 10,136 | 12,457 | 21,136 | 405 | - | 21,136 | 12 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fund V | 2001 | - | 3,742 | 5,192 | 12,724 | - | - | 12,724 | 61 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||
|
Fund I, II, III, IV & MIA2
|
Various | 8 | 7,320 | 8,753 | 17,400 | - | - | 17,400 | 39 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||
|
Traditional Private Equity Funds3
|
$ | 53,116 | $ | 98,858 | $ | 94,958 | $ | 135,779 | $ | 26,157 | $ | 36,166 | $ | 171,945 | 39 | 24 | |||||||||||||||||||||||||||||||||||||||||||
| AIOF III | 2024 | 2,535 | 2,399 | 1,141 | - | 1,141 | 1,362 | 1,362 |
NM4
|
NM4
|
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| AIOF II | 2020 | 2,772 | 2,542 | 2,400 | 1,244 | 1,558 | 1,937 | 3,181 | 12 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| AIOF I | 2018 | 16 | 897 | 803 | 1,280 | - | - | 1,280 | 22 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
| HVF III | 2026 | 6,692 | 6,476 | 1,395 | - | 1,395 | 1,672 | 1,672 |
NM4
|
NM4
|
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| HVF II | 2022 | 5,777 | 4,592 | 5,045 | 1,863 | 3,993 | 5,364 | 7,227 | 16 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
| HVF I | 2019 | 1,892 | 3,238 | 3,711 | 4,628 | 794 | 1,303 | 5,931 | 21 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Equity | $ | 72,800 | $ | 119,002 | $ | 109,453 | $ | 144,794 | $ | 35,038 | $ | 47,804 | $ | 192,598 | |||||||||||||||||||||||||||||||||||||||||||||
|
1 Accord funds have investment periods shorter than 24 months, therefore Gross and Net IRR are presented after 12 months of investing.
|
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2 The general partners and managers of Funds I, II and MIA, as well as the general partner of Fund III, were excluded assets in connection with the reorganization of the Company that occurred in 2007. As a result, Apollo did not receive the economics associated with these entities. The investment performance of these funds, combined with Fund IV, is presented to illustrate fund performance associated with Apollo's investment professionals.
|
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3 Total IRR is calculated based on total cash flows for all funds presented.
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4 Data has not been presented as the fund's effective date is less than 24 months prior to the period indicated and such information was deemed not meaningful.
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Equity
The following tables provide additional detail on the composition of the Fund X, Fund IX and Fund VIII private equity portfolios based on investment strategy as of June 30, 2026:
| Fund X | Fund IX | Fund VIII | |||||||||||||||||||||||||||||||||
| (In millions) | Total Invested Capital | Total Value | Total Invested Capital | Total Value | Total Invested Capital | Total Value | |||||||||||||||||||||||||||||
| Opportunistic Buyouts | $ | 8,262 | $ | 11,355 | $ | 15,156 | $ | 23,597 | $ | 13,237 | $ | 20,771 | |||||||||||||||||||||||
| Corporate Carve-outs | 2,904 | 4,498 | 6,771 | 12,109 | 3,122 | 7,299 | |||||||||||||||||||||||||||||
|
Deleveraging Investment and other1
|
289 | 1,019 | 1,787 | 4,989 | 567 | 754 | |||||||||||||||||||||||||||||
| Total | $ | 11,455 | $ | 16,872 | $ | 23,714 | $ | 40,695 | $ | 16,926 | $ | 28,824 | |||||||||||||||||||||||
|
1 The deleveraging investment strategy includes deleveraging for control and non-control deleveraging.
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Perpetual Capital
The following table summarizes the investment record for the perpetual capital vehicles we manage, excluding Athene and Athora-related assets.
| Total Returns | |||||||||||||||||||||||||||||||||||
| (In millions) |
IPO Year1
|
Total AUM | For the Three Months Ended June 30, 2026 | For the Three Months Ended June 30, 2025 | For the Six Months Ended June 30, 2026 | For the Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||
|
ADS2
|
N/A | $ | 30,598 | 2 | % | 2 | % | 2 | % | 4 | % | ||||||||||||||||||||||||
|
MidCap FinCo3
|
N/A | 13,927 | 2 | % | 4 | % | 3 | % | 8 | % | |||||||||||||||||||||||||
|
MFIC4,5
|
2004 | 3,533 | (7) | % | 1 | % | (7) | % | (1) | % | |||||||||||||||||||||||||
|
ADREF6
|
N/A | 4,506 | 3 | % | - | % | 5 | % | - | % | |||||||||||||||||||||||||
|
ADCF6
|
N/A | 2,438 | 1 | % | 3 | % | 2 | % | 5 | % | |||||||||||||||||||||||||
|
ARIS6
|
N/A | 2,421 | 1 | % | 1 | % | 3 | % | 3 | % | |||||||||||||||||||||||||
|
Other7
|
N/A | 26,526 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Total | $ | 83,949 | |||||||||||||||||||||||||||||||||
|
1 An IPO year represents the year in which the vehicle commenced trading on a national securities exchange.
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2 ADS is not a publicly traded vehicle and therefore IPO year is not applicable. The returns presented are net returns based on NAV.
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3 MidCap FinCo is not a publicly traded vehicle and therefore IPO year is not applicable. The returns presented are a gross return based on NAV. The net returns based on NAV were 2% and 3% for the three months ended June 30, 2026 and 2025, respectively. The net returns based on NAV were 2% and 7% for the six months ended June 30, 2026 and 2025, respectively.
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4 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.
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5 AUM is presented on a three-month lag, as of March 31, 2026, based upon the availability of the information.
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6 ADREF, ADCF and ARIS are not publicly traded vehicles and therefore IPO years are not applicable. The returns presented are for their respective Class I shares and are net returns based on NAV.
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7 Other includes, among others, AUM of $1.9 billion related to a publicly traded business development company from which Apollo earns investment-related service fees, but for which Apollo does not provide management or advisory services, as of March 31, 2026. Returns and IPO year are not provided for these AUM. Other also includes AUM of $12.2 billion related to third-party capital within AAA.
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Summary of Non-U.S. GAAP Measures
The table below sets forth a reconciliation of net income attributable to Apollo Global Management, Inc. common stockholders to Segment Income and Adjusted Net Income:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| GAAP Net Income (Loss) Attributable to Apollo Global Management, Inc. | $ | 1,336 | $ | 605 | $ | (594) | $ | 1,023 | |||||||||||||||
| Preferred dividends | 25 | 25 | 49 | 49 | |||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | 728 | 212 | 1,223 | 708 | |||||||||||||||||||
| GAAP Net Income (Loss) | 2,089 | 842 | 678 | 1,780 | |||||||||||||||||||
| Income tax provision (benefit) | 396 | 3 | 2,090 | 246 | |||||||||||||||||||
| GAAP Income (Loss) Before Income Tax Provision (Benefit) | 2,485 | 845 | 2,768 | 2,026 | |||||||||||||||||||
| Asset Management Adjustments | |||||||||||||||||||||||
|
Equity-based profit sharing expense1
|
71 | 38 | 123 | 68 | |||||||||||||||||||
| Equity-based compensation | 129 | 102 | 285 | 201 | |||||||||||||||||||
| Net (income) loss attributable to non-controlling interests in consolidated entities | (698) | (266) | (953) | (815) | |||||||||||||||||||
| Unrealized performance fees | (320) | 28 | 101 | (91) | |||||||||||||||||||
| Unrealized profit sharing expense | 152 | (43) | (55) | 62 | |||||||||||||||||||
|
HoldCo interest and other financing costs2
|
53 | 36 | 98 | 70 | |||||||||||||||||||
| Unrealized principal investment (income) loss | 45 | (11) | 165 | (9) | |||||||||||||||||||
| Unrealized net (gains) losses from investment activities | (28) | 293 | 29 | 354 | |||||||||||||||||||
|
Transaction-related costs, restructuring and other non-operating expenses3
|
117 | 70 | 186 | 346 | |||||||||||||||||||
| Retirement Services Adjustments | |||||||||||||||||||||||
| Investment (gains) losses, net of offsets | (23) | 509 | 673 | 358 | |||||||||||||||||||
|
Non-operating change in insurance liabilities and related derivatives4
|
(358) | (149) | (316) | 218 | |||||||||||||||||||
| Integration, restructuring and other non-operating items | 41 | 32 | 74 | 62 | |||||||||||||||||||
| Equity-based compensation | 12 | 11 | 22 | 22 | |||||||||||||||||||
| Segment Income | 1,678 | 1,495 | 3,200 | 2,872 | |||||||||||||||||||
|
HoldCo interest and other financing costs2
|
(53) | (36) | (98) | (70) | |||||||||||||||||||
| Taxes and related payables | (311) | (280) | (580) | (504) | |||||||||||||||||||
| Adjusted Net Income | $ | 1,314 | $ | 1,179 | $ | 2,522 | $ | 2,298 | |||||||||||||||
|
1 Equity-based profit sharing expense includes stock-based grants that are tied to realized performance within the Principal Investing segment.
|
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2 Represents interest and other financing costs related to AGM not attributable to any specific segment.
|
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3 Transaction-related costs, restructuring and other non-operating expenses includes: (a) contingent consideration, certain equity-based charges, amortization of intangible assets and certain other expenses associated with acquisitions; (b) gains (losses) from changes in the tax receivable agreement liability; (c) merger-related transaction and integration costs associated with the Company's merger with Athene; and (d) other non-operating expenses, including the issuance of shares of AGM common stock for charitable contributions. In the six months ended June 30, 2025, other non-operating expenses includes $200 million in charitable contributions related to the issuance of common stock to the Apollo DAF in February 2025.
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4 Includes change in fair values of derivatives and embedded derivatives, non-operating change in funding agreements, change in fair value of market risk benefits, and non-operating change in liability for future policy benefits.
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The table below sets forth a reconciliation of common stock outstanding to our Adjusted Net Income Shares Outstanding:
| June 30, 2026 | December 31, 2025 | ||||||||||
| Total GAAP Common Stock Outstanding | 575,971,752 | 578,981,398 | |||||||||
| Non-GAAP Adjustments: | |||||||||||
|
Mandatory Convertible Preferred Stock1
|
14,587,841 | 14,564,883 | |||||||||
| Vested RSUs | 17,073,031 | 19,437,942 | |||||||||
| Unvested RSUs Eligible for Dividend Equivalents | 15,921,831 | 10,518,154 | |||||||||
| Adjusted Net Income Shares Outstanding | 623,554,455 | 623,502,377 | |||||||||
|
1 Reflects the number of shares of underlying common stock assumed to be issuable upon conversion of the Mandatory Convertible Preferred Stock during each period.
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The table below sets forth a reconciliation of Athene's total investments, including related parties, to net invested assets:
| (In millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Total investments, including related parties | $ | 377,142 | $ | 356,060 | |||||||
| Derivative assets | (11,034) | (9,190) | |||||||||
| Cash and cash equivalents (including restricted cash) | 23,540 | 16,326 | |||||||||
| Accrued investment income | 4,015 | 3,395 | |||||||||
| Net receivable (payable) for collateral on derivatives | (5,010) | (3,458) | |||||||||
| Reinsurance impacts | (6,725) | (6,350) | |||||||||
| VIE and VOE assets, liabilities and non-controlling interests | 20,052 | 19,420 | |||||||||
| Unrealized (gains) losses | 13,476 | 10,002 | |||||||||
| Ceded policy loans | (154) | (160) | |||||||||
| Net investment receivables (payables) | (2,360) | 217 | |||||||||
| Allowance for credit losses | 709 | 763 | |||||||||
| Other investments | (53) | (52) | |||||||||
| Total adjustments to arrive at gross invested assets | 36,456 | 30,913 | |||||||||
| Gross invested assets | 413,598 | 386,973 | |||||||||
| ACRA non-controlling interests | (99,508) | (94,559) | |||||||||
| Net invested assets | $ | 314,090 | $ | 292,414 | |||||||
Liquidity and Capital Resources
Overview
The Company primarily derives revenues and cash flows from the assets it manages and the retirement savings products it issues, reinsures and acquires. Based on management's experience, we believe the Company's current liquidity position, together with the cash generated from revenues will be sufficient to meet the Company's anticipated expenses and other working capital needs for at least the next 12 months. For the longer-term liquidity needs of the asset management business, we expect to continue to fund the asset management business' operations through management fees and performance fees received. The principal sources of liquidity for the retirement services business, in the ordinary course of business, are operating cash flows and holdings of cash, cash equivalents and other readily marketable assets.
AGM is a holding company whose primary source of cash flow is distributions and other intercompany transfers from its subsidiaries, which are expected to be sufficient to fund cash flow requirements based on current estimates of future obligations. AGM's primary liquidity needs include the cash-flow requirements relating to its corporate activities, including its day-to-day operations, common stock and preferred stock dividend payments and strategic transactions, such as acquisitions.
As of June 30, 2026, the Company had $25.4 billion of unrestricted cash and cash equivalents, as well as $5.6 billion of available funds from the AGM credit facility, Athene credit facility and Athene liquidity facility.
Primary Uses of Cash
Over the next 12 months, we expect the Company's primary liquidity needs will be to:
•support the future growth of Apollo's businesses through strategic corporate investments;
•pay the Company's operating expenses including compensation, general, administrative, and other expenses;
•make payments to policyholders for surrenders, withdrawals and payout benefits;
•make interest and principal payments on funding agreements;
•make payments to satisfy pension group annuity obligations and policy acquisition costs;
•make interest and principal payments on the Company's debt;
•pay taxes and tax-related payments;
•pay cash dividends;
•repurchase common stock; and
•make payments under the tax receivable agreements.
Over the long term, we believe we will be able to (i) grow Apollo's Assets Under Management and generate positive investment performance in the funds we manage, which we expect will allow us to grow the Company's management fees and performance fees and (ii) grow the investment portfolio of retirement services, in each case in amounts sufficient to cover our long-term liquidity requirements, which may include:
•supporting the future growth of our businesses;
•creating new or enhancing existing products and investment platforms;
•making payments to policyholders;
•pursuing new strategic corporate investment opportunities;
•paying interest and principal on the Company's financing arrangements;
•repurchasing common stock;
•making payments under the tax receivable agreements; and
•paying cash dividends.
Cash Flow Analysis
The section below discusses in more detail the Company's primary sources and uses of cash and the primary drivers of cash flows within the Company's condensed consolidated statements of cash flows:
| Six months ended June 30, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Operating Activities | $ | 4,501 | $ | 2,274 | |||||||
| Investing Activities | (23,871) | (36,517) | |||||||||
| Financing Activities | 27,198 | 32,089 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (2) | 13 | |||||||||
| Net increase (decrease) in cash and cash equivalents, restricted cash and cash held at consolidated variable interest entities | $ | 7,826 | $ | (2,141) | |||||||
The assets of our consolidated funds and VIEs, on a gross basis, could have a substantial effect on the accompanying statement of cash flows. Because our consolidated funds and VIEs are generally treated as investment companies for accounting purposes, their investing cash flow amounts are included in our cash flows from operating activities. The table below summarizes our condensed consolidated statements of cash flows by activity attributable to the Company and to our consolidated funds and VIEs.
| Six months ended June 30, | |||||||||||
| (In millions) | 2026 | 2025 | |||||||||
| Net cash provided by the Company's operating activities | $ | 4,069 | $ | 2,441 | |||||||
| Net cash provided by (used in) the Consolidated Funds and VIEs operating activities | 432 | (167) | |||||||||
| Net cash provided by operating activities | 4,501 | 2,274 | |||||||||
| Net cash used in the Company's investing activities | (21,438) | (35,450) | |||||||||
| Net cash used in the Consolidated Funds and VIEs investing activities | (2,433) | (1,067) | |||||||||
| Net cash used in investing activities | (23,871) | (36,517) | |||||||||
| Net cash provided by the Company's financing activities | 25,783 | 31,392 | |||||||||
| Net cash provided by the Consolidated Funds and VIEs financing activities | 1,415 | 697 | |||||||||
| Net cash provided by financing activities | $ | 27,198 | $ | 32,089 | |||||||
Operating Activities
The Company's operating activities support its Asset Management, Retirement Services and Principal Investing activities. The primary sources of cash within operating activities include: (a) management fees, (b) advisory and transaction fees, (c) realized performance revenues, (d) realized principal investment income, (e) investment sales from our consolidated funds and VIEs, (f) net investment income and (g) insurance premiums. The primary uses of cash within operating activities include: (a) compensation and non-compensation related expenses, (b) interest and taxes, (c) investment purchases from our consolidated funds and VIEs, (d) benefit payments and (e) other operating expenses.
•During the six months ended June 30, 2026, cash provided by operating activities reflects cash inflows from management fees, advisory and transaction fees, realized performance revenues, realized principal investment income, net investment income and a tax refund, partially offset by cash paid for interest on funding agreements and debt, cash paid for pension group annuity and other payout annuity benefits, net of premium received, and cash paid for policy acquisition expenses and other operating expenses. Cash provided by our consolidated funds and VIEs primarily includes net proceeds from the sale of VIE investments, partially offset by net purchases of VIE investments.
•During the six months ended June 30, 2025, cash provided by operating activities reflects cash inflows of management fees, advisory and transaction fees, realized performance revenues, realized principal investment income, and net investment income, partially offset by pension group annuity benefit payments and cash paid for interest on funding agreements, policy acquisition expenses and other operating expenses. Net cash provided by operating activities includes net cash used by our consolidated funds and VIEs, which primarily includes net purchases of VIE's investments, partially offset by proceeds from the sale of VIEs' investments.
Investing Activities
The Company's investing activities support the growth of its business. The primary sources of cash within investing activities include: (a) distributions from investments and (b) sales, maturities and repayments of investments. The primary uses of cash within investing activities include: (a) capital expenditures, (b) purchases and acquisitions of new investments, including purchases of U.S. Treasury securities and (c) equity method investments in the funds we manage.
•During the six months ended June 30, 2026, cash used in investing activities primarily reflects the purchase of investments, mainly AFS and mortgage loans, due to the deployment of significant cash inflows from Athene's strong growth, cash paid for the settlement of derivatives and an increase in cash posted as collateral by Athene for derivative transactions, partially offset by the sales, maturities and repayments of investments and an increase in investment payables, net of receivables.
•During the six months ended June 30, 2025, cash used in investing activities primarily reflects the purchase of investments, mainly AFS and mortgage loans, due to the deployment of significant cash inflows from Athene's
organic growth and cash collateral posted by Athene for derivative transactions, partially offset by the sales, maturities and repayments of investments and an increase in net investment payables.
Financing Activities
The Company's financing activities reflect its capital market transactions and transactions with equity holders. The primary sources of cash within financing activities include: (a) proceeds from debt and preferred equity issuances, (b) inflows on Athene's investment-type policies and contracts, (c) changes of cash collateral for derivative transactions posted by counterparties, (d) capital contributions, and (e) proceeds from other borrowing activities. The primary uses of cash within financing activities include: (a) dividends, (b) payments under the tax receivable agreement, (c) share repurchases, (d) cash paid to settle tax withholding obligations in connection with net share settlements of equity-based awards, (e) repayments of debt, (f) withdrawals on Athene's investment-type policies and contracts, (g) changes in cash collateral for derivative transactions posted by counterparties and (h) capital distributions.
•During the six months ended June 30, 2026, cash provided by financing activities primarily reflects cash received from deferred annuity, funding agreement and guaranteed investment contract inflows, net of cash outflows, cash proceeds from the issuance of long-term debt, an increase in cash collateral posted by counterparties for derivative transactions and net capital contributions from non-controlling interests, partially offset by the repayment of debt, the repayment of short-term repurchase agreements and the payment of common and preferred stock dividends. Cash provided by financing activities of our consolidated funds and VIEs primarily includes proceeds from the issuance of debt and contributions from non-controlling interests, partially offset by repayment of debt and distributions to non-controlling interests.
•During the six months ended June 30, 2025, cash provided by financing activities primarily reflects cash received from deferred annuity and funding agreement inflows, net of cash outflows, cash proceeds from the issuance of long-term debt and net capital contributions from non-controlling interests, partially offset by a decrease in cash collateral posted by counterparties for derivative transactions, the repayment of outstanding short-term repurchase agreements, cash paid for the redemption of Athene's Series C preferred stock and the payment of common and preferred stock dividends. Cash provided by financing activities of our consolidated funds and VIEs primarily includes proceeds from the issuance of debt and contributions from non-controlling interests, partially offset by repayment of debt and distributions to non-controlling interests.
Contractual Obligations, Commitments and Contingencies
For a summary and a description of the nature of the Company's commitments, contingencies and contractual obligations, see note 17 to the condensed consolidated financial statements and "-Contractual Obligations, Commitments and Contingencies." The Company's commitments are primarily fulfilled through cash flows from operations and financing activities.
Consolidated Funds and VIEs
The Company manages its liquidity needs by evaluating unconsolidated cash flows; however, the Company's financial statements reflect the financial position of Apollo as well as Apollo's consolidated funds and VIEs. The primary sources and uses of cash at Apollo's consolidated funds and VIEs include: (a) raising capital from their investors, which have been reflected historically as non-controlling interests of the consolidated subsidiaries in our financial statements, (b) using capital to make investments, (c) generating cash flows from operations through distributions, interest and the realization of investments, (d) distributing cash flow to investors, and (e) issuing debt to finance investments (CLOs).
Dividends and Distributions
For information regarding the quarterly dividends that were made to common stockholders and distribution equivalents on participating securities, see note 14 to the condensed consolidated financial statements. Although the Company currently expects to pay dividends, we may not pay dividends if, among other things, we do not have the cash necessary to pay the dividends. To the extent we do not have cash on hand sufficient to pay dividends, we may have to borrow funds to pay dividends, or we may determine not to pay dividends. The declaration, payment and determination of the amount of our dividends are at the sole discretion of the AGM board of directors.
Because AGM is a holding company, the primary source of funds for AGM's dividends is distributions and other intercompany transfers from its operating subsidiaries, AAM and AHL, which are expected to be adequate to fund AGM's dividends and other cash flow requirements based on current estimates of future obligations. The ability of these operating subsidiaries to make distributions to AGM will depend on satisfying applicable law with respect to such distributions, including surplus and minimum solvency requirements among others, as well as making prior distributions on AHL's outstanding preferred stock. Moreover, the ability of AAM and AHL to receive distributions from their own respective subsidiaries will continue to depend on applicable law with respect to such distributions.
On August 4, 2026, AGM declared a cash dividend of $0.5625 per share of its common stock, which will be paid on August 31, 2026 to holders of record at the close of business on August 19, 2026.
Repurchase of Securities
Share Repurchase Program
For information regarding the Company's share repurchase program, see note 14 to the condensed consolidated financial statements.
Repurchase of Other Securities
We may from time to time seek to retire or purchase our other outstanding debt or equity securities through cash purchases and/or exchanges for other securities, purchases in the open market, privately negotiated transactions or otherwise. Any such repurchases will be dependent upon several factors, including our liquidity requirements, contractual restrictions, general market conditions and applicable regulatory, legal and accounting factors. Whether or not we repurchase any of our other securities and the size and timing of any such repurchases will be determined at our discretion.
Mandatory Convertible Preferred Stock
On August 11, 2023, the Company issued 28,750,000 shares, or $1.4 billion aggregate liquidation preference, of its 6.75% Series A Mandatory Convertible Preferred Stock. There were 28,749,227 shares of Mandatory Convertible Preferred Stock issued and outstanding as of June 30, 2026. On July 31, 2026, all then outstanding shares of Mandatory Convertible Preferred Stock were converted to common stock. See note 14 to the condensed consolidated financial statements for further details.
Asset Management Liquidity
Our asset management business requires limited capital resources to support the working capital or operating needs of the business. For the asset management business' longer-term liquidity needs, we expect to continue to fund the asset management business' operations through management fees and performance fees received. Liquidity needs are also met (to a limited extent) through proceeds from borrowings and equity issuances as described in notes 12 and 14 to the condensed consolidated financial statements, respectively. From time to time, if the Company determines that market conditions are favorable after taking into account our liquidity requirements, we may seek to raise proceeds through the issuance of additional debt or equity instruments. AGM has a registration statement on Form S-3 to provide it with access to the capital markets, subject to market conditions and other factors.
At June 30, 2026, the asset management business had $3.4 billion of unrestricted cash and cash equivalents, as well as $1.25 billion of available funds from the AGM credit facility.
Future Debt Obligations
The asset management business had debt of $5.9 billion as of June 30, 2026, which includes notes with various maturities from 2027 through 2054 and nonrecourse debt. See note 12 to the condensed consolidated financial statements for further information regarding the asset management business' debt arrangements.
Future Cash Flows
Our ability to execute our business strategy, particularly our ability to increase our AUM, depends on our ability to establish new funds and to raise additional investor capital within such funds. Our liquidity will depend on a number of factors, such as our ability to project our financial performance, which is highly dependent on the funds we manage and our ability to manage our projected costs, fund performance, access to credit facilities, compliance with existing credit agreements, as well as industry and market trends. Also, during economic downturns the funds we manage might experience cash flow issues or liquidate entirely. In these situations we might be asked to reduce or eliminate the management fee and performance fees we charge, which could adversely impact our cash flow in the future.
An increase in the fair value of the investments of the funds we manage, by contrast, could favorably impact our liquidity through higher management fees where the management fees are calculated based on the net asset value, gross assets or adjusted assets. Additionally, higher performance fees not yet realized would generally result when investments appreciate over their cost basis which would not have an impact on the asset management business' cash flow until realized.
Consideration of Financing Arrangements
As noted above, in limited circumstances, the asset management business may issue debt or equity to supplement its liquidity. The decision to enter into a particular financing arrangement is made after careful consideration of various factors, including the asset management business' cash flows from operations, future cash needs, current sources of liquidity, demand for the asset management business' debt or equity, and prevailing interest rates.
Revolver Facility
Under the AGM credit facility, AGM and AMH, as parent borrower and subsidiary borrower, respectively, may borrow in an aggregate amount not to exceed $1.25 billion and may incur incremental facilities in an aggregate amount not to exceed $250 million plus additional amounts so long as AGM and AMH are in compliance with a net leverage ratio not to exceed 4.00 to 1.00. Borrowings under the AGM credit facility may be used for working capital and general corporate purposes, including without limitation, permitted acquisitions. The AGM credit facility has a final maturity date of November 21, 2029.
Tax Receivable Agreements
The Apollo TRA provides for the payment to the Former Managing Partners and Contributing Partners of 85% of the amount of cash savings, if any, in U.S. federal, state, local and foreign income taxes that AGM and its subsidiaries realize as a result of the increases in tax basis of assets resulting from exchanges of AOG Units for Class A shares that occurred in prior years. The Bridge TRA provides for the payment to Bridge TRA holders based on 85% of the tax benefits realized from the Bridge acquisition. For more information regarding the tax receivable agreements, see note 16 to the condensed consolidated financial statements.
Athora
AAM and its subsidiaries had equity commitments outstanding to Athora of up to $57 million as of June 30, 2026.
An AAM subsidiary and Athene are minority investors in Athora with a long-term strategic relationship. Through its share ownership, the AAM subsidiary has approximately 16% of the total voting power in Athora, and Athene holds shares in Athora representing 10% of the total voting power in Athora. In addition, Athora shares held by funds and other accounts managed by Apollo represent, in the aggregate, approximately 4% of the total voting power in Athora. See note 16 to the condensed consolidated financial statements for details on AAM's and Athene's transactions and commitments to Athora.
Fund Escrow
As of June 30, 2026, the remaining investments and escrow cash of Fund VIII was valued at 102% of the fund's unreturned capital, which was below the required escrow ratio of 115%. As a result, the fund is required to place in escrow current and future performance fee distributions to the general partner until the specified return ratio of 115% is met (at the time of a future distribution) or upon liquidation. Realized performance fees currently distributed to the general partner are limited to potential tax distributions and interest on escrow balances per the fund's partnership agreement.
Clawback
Performance fees from certain of the funds we manage are subject to contingent repayment by the general partner in the event of future losses to the extent that the cumulative performance fees distributed from inception to date exceeds the amount computed as due to the general partner at the final distribution. See "-Overview of Results of Operations-Performance Fees" for the maximum performance fees subject to potential reversal by each fund.
Indemnification Liability
The asset management business recorded an indemnification liability in the event that the Former Managing Partners, Contributing Partners and certain investment professionals are required to pay amounts in connection with a general partner obligation to return previously distributed performance fees. See note 16 to the condensed consolidated financial statements for further information regarding the asset management business' indemnification liability.
Retirement Services Liquidity
There are two forms of liquidity relevant to our retirement services business: funding liquidity and balance sheet liquidity. Funding liquidity relates to the ability to fund operations. Balance sheet liquidity relates to the ability to sell assets held in Athene's investment portfolio without incurring significant costs from fees, bid-offer spreads, or market impact. Athene manages its liquidity position by matching projected cash demands with adequate sources of cash and other liquid assets. The principal sources of liquidity for our retirement services business, in the ordinary course of business, are operating cash flows and holdings of cash, cash equivalents and other readily marketable assets.
Athene's investment portfolio is structured to ensure a strong liquidity position over time to permit timely payment of policy and contract benefits without requiring asset sales at inopportune times or at depressed prices. In general, liquid assets include cash and cash equivalents, highly rated bonds, short-term investments, unaffiliated preferred stock and publicly traded common stock, all of which generally have liquid markets with a large number of buyers, but exclude pledged assets, mainly associated with funding agreement and repurchase agreement liabilities. Assets included in modified coinsurance and funds withheld portfolios, including assets held in reinsurance trusts, are available to fund the benefits for the associated obligations but are restricted from other uses. Although the investment portfolio of our retirement services business does contain assets that are generally considered less liquid for liquidity monitoring purposes (primarily mortgage loans, policy loans, real estate and investment funds), there is some ability to raise cash from these assets if needed. In periods of economic downturn, Athene may seek to raise or hold additional cash and liquid assets to manage its liquidity risk and to take advantage of market dislocations as they arise.
Athene has access to additional liquidity through its Athene credit facility and Athene liquidity facility. Athene entered into a new credit facility on June 26, 2026, which replaced its previous agreement dated as of June 30, 2023. The Athene credit facility has a borrowing capacity of $1.75 billion, subject to being increased up to $2.5 billion in total on the terms described in the credit facility. The Athene credit facility has a commitment termination date of June 26, 2031, subject to up to two one-year extensions, and was undrawn as of June 30, 2026. Athene entered into a new liquidity facility on June 26, 2026, which replaced its previous agreement dated as of June 27, 2025. The Athene liquidity facility has a borrowing capacity of $2.6 billion, subject to being increased up to $3.1 billion in total on the terms described in the liquidity facility. The Athene liquidity facility has a commitment termination date of June 25, 2027, subject to additional 364-day extensions, and was undrawn as of June 30, 2026. Athene also has access to $2.0 billion of committed repurchase facilities. Athene has a registration statement on Form S-3 to provide it with access to the capital markets, subject to market conditions and other factors. Athene is also the counterparty to repurchase agreements with several different financial institutions, pursuant to which it may obtain short-term liquidity, to the extent available. In addition, through Athene's membership in the FHLB, it is eligible to borrow under variable-rate short-term federal funds arrangements to provide additional liquidity.
Athene proactively manages its liquidity position to meet cash needs while minimizing adverse impacts on investment returns. Athene analyzes its cash-flow liquidity over the upcoming 12 months by modeling potential demands on liquidity under a variety of scenarios, taking into account the provisions of its policies and contracts in force, its cash flow position, and the volume of cash and readily marketable securities in its portfolio.
Liquidity risk is monitored, managed and mitigated through a number of stress tests and analyses to assess Athene's ability to meet its cash flow requirements, as well as the ability of its reinsurance and insurance subsidiaries to meet their collateral
obligations, under various stress scenarios. Athene further seeks to mitigate liquidity risk by maintaining access to alternative, external sources of liquidity.
Insurance Subsidiaries' Operating Liquidity
The primary cash flow sources for Athene's insurance subsidiaries include retirement services product inflows (premiums and deposits), investment income, principal repayments on its investments, net transfers from separate accounts and financial product inflows. Uses of cash include investment purchases, payments to policyholders for surrenders, withdrawals and payout benefits, interest and principal payments on funding agreements and outstanding debt, payments to satisfy pension group annuity obligations, policy acquisition and general operating costs and payment of cash dividends.
Athene's policyholder obligations are generally long-term in nature. However, policyholders may elect to withdraw some or all of their account value in amounts that exceed Athene's estimates and assumptions over the life of an annuity contract. Athene includes provisions within its annuity policies, such as surrender charges and market value adjustments ("MVAs"), which are intended to protect it from early withdrawals. As of June 30, 2026 and December 31, 2025, approximately 87% and 85%, respectively, of Athene's deferred annuity liabilities were subject to penalty upon surrender. In addition, as of each of June 30, 2026 and December 31, 2025, approximately 69% of policies contained MVAs that may also have the effect of limiting early withdrawals if interest rates increase but may encourage early withdrawals by effectively subsidizing a portion of surrender charges when interest rates decrease. As of June 30, 2026, approximately 36% of Athene's net reserve liabilities were generally non-surrenderable, including buy-out pension group annuities other than those that can be withdrawn as lump sums, funding agreements, payout annuities and guaranteed investment contracts, while 54% were subject to penalty upon surrender.
Membership in Federal Home Loan Bank
Through its membership in the FHLB, Athene is eligible to borrow under variable-rate short-term federal funds arrangements to provide additional liquidity. The borrowings must be secured by eligible collateral such as mortgage loans, eligible CMBS or RMBS, government or agency securities and guaranteed loans. As of each of June 30, 2026 and December 31, 2025, Athene had no outstanding borrowings under these arrangements.
Athene has issued funding agreements to the FHLB. These funding agreements were issued in an investment spread strategy, consistent with other investment spread operations. As of June 30, 2026 and December 31, 2025, Athene had funding agreements outstanding with the FHLB in the aggregate principal amount of $27.7 billion and $23.3 billion, respectively.
The maximum FHLB indebtedness by a member is determined by the amount of collateral pledged and cannot exceed a specified percentage of the member's total statutory assets, dependent on the internal credit rating assigned to the member by the FHLB. As of June 30, 2026, Athene's total maximum borrowing capacity under the FHLB facilities was limited to $70.1 billion. However, Athene's ability to borrow under the facilities is constrained by the availability of assets that qualify as eligible collateral under the facilities and certain other limitations. Considering these limitations, as of June 30, 2026, Athene had the ability to draw up to an estimated $33.8 billion, inclusive of borrowings then outstanding. This estimate is based on Athene's internal analysis and assumptions and may not accurately measure collateral that is ultimately acceptable to the FHLB.
Securities Repurchase Agreements
Athene engages in repurchase transactions whereby it sells fixed income securities to third parties, primarily major brokerage firms or commercial banks, with a concurrent agreement to repurchase such securities at a determined future date. Athene requires that, at all times during the term of the repurchase agreements, it maintains sufficient cash or other liquid assets to allow it to fund substantially all of the repurchase price. Proceeds received from the sale of securities pursuant to these arrangements are generally invested in short-term investments or maintained in cash, with the offsetting obligation to repurchase the security included within payables for collateral on derivatives and securities to repurchase on the condensed consolidated statements of financial condition. Under the terms of the repurchase agreements, Athene monitors the market value of the securities sold and may be required to deliver additional collateral (which may be in the form of cash or additional securities) to the extent the value of the securities sold decreases prior to the repurchase date.
As of June 30, 2026 and December 31, 2025, the payables for repurchase agreements were $3.2 billion and $6.0 billion, respectively, while the fair value of securities and collateral held by counterparties backing the repurchase agreements was $3.4 billion and $6.2 billion, respectively. As of June 30, 2026, payables for repurchase agreements, based on original issuance,
included no short-term and $3.2 billion of long-term repurchase agreements. As of December 31, 2025, payables for repurchase agreements, based on original issuance, included $2.8 billion of short-term and $3.2 billion of long-term repurchase agreements.
Dividends from Insurance Subsidiaries
AHL is a holding company whose primary liquidity needs include the cash flow requirements relating to its corporate activities, including its day-to-day operations, debt servicing, preferred and common stock dividend payments and strategic transactions, such as acquisitions. The primary sources of AHL's cash flows are dividends from its subsidiaries, capital market issuances and intercompany borrowings, which are expected to be adequate to fund cash flow requirements based on current estimates of future obligations.
The ability of AHL's insurance subsidiaries to pay dividends is limited by applicable laws and regulations of the jurisdictions where the subsidiaries are domiciled, as well as agreements entered into with regulators. These laws and regulations require, among other things, the insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends these subsidiaries can pay.
Subject to these limitations and prior notification to the appropriate regulatory agency, Athene's U.S. insurance subsidiaries are permitted to pay ordinary dividends based on calculations specified under insurance laws of the relevant state of domicile. Any distributions above the amount permitted by statute in any twelve-month period are considered to be extraordinary dividends, and require the approval of the appropriate regulator prior to payment. AHL does not currently plan on having the U.S. subsidiaries pay any dividends to their parents.
Dividends from AHL's subsidiaries are projected to be the primary source of AHL's liquidity. Under the Bermuda Insurance Act, each of Athene's Bermuda insurance subsidiaries is prohibited from paying a dividend in an amount exceeding 25% of the prior year's statutory capital and surplus, unless at least two members of the board of directors of the Bermuda insurance subsidiary and its principal representative in Bermuda sign and submit to the BMA an affidavit attesting that a dividend in excess of this amount would not cause the Bermuda insurance subsidiary to fail to meet its relevant margins. In certain instances, the Bermuda insurance subsidiary would also be required to provide prior notice to the BMA in advance of the payment of dividends. In the event that such an affidavit is submitted to the BMA in accordance with the Bermuda Insurance Act, and further subject to the Bermuda insurance subsidiary meeting its relevant margins, the Bermuda insurance subsidiary is permitted to distribute up to the sum of 100% of statutory surplus and an amount less than 15% of its total statutory capital. Distributions in excess of this amount require the approval of the BMA.
The maximum distribution permitted by law or contract is not necessarily indicative of the insurance subsidiaries' actual ability to pay such distributions, which may be further restricted by business and other considerations, such as the impact of such distributions on surplus, which could affect Athene's ratings or competitive position and the amount of premiums that can be written. Specifically, the level of capital needed to maintain desired financial strength ratings from rating agencies, including S&P Global, Inc., A.M. Best Company, Inc., Fitch Ratings, Inc. and Moody's Ratings, Inc., is of particular concern when determining the amount of capital available for distributions. AHL believes its insurance subsidiaries have sufficient statutory capital and surplus, combined with additional capital available to be provided by AHL, to meet their financial strength ratings objectives. Finally, state insurance laws and regulations require that the statutory surplus of Athene's insurance subsidiaries following any dividend or distribution must be reasonable in relation to their outstanding liabilities and adequate for the insurance subsidiaries' financial needs.
Other Sources of Funding
Athene may seek to secure additional funding at the AHL level by means other than dividends from subsidiaries, such as by drawing on its undrawn $1.75 billion Athene credit facility or by pursuing future issuances of debt or preferred stock to third-party investors. The Athene credit facility contains various standard covenants with which Athene must comply, including maintaining a consolidated debt-to-capitalization ratio of not greater than 40%, maintaining a minimum consolidated net worth of no less than $22.1 billion and restrictions on the ability to incur liens, with certain exceptions. Rates, ratios and terms are as defined in the Athene credit facility.
Future Debt Obligations
Athene had long-term debt of $7.8 billion as of June 30, 2026, which includes notes with various maturities from 2028 through 2064. See note 12 to the condensed consolidated financial statements for further information regarding Athene's debt arrangements.
Capital
Athene believes it has a strong capital position and is well positioned to meet policyholder and other obligations. Athene measures capital sufficiency using various internal capital metrics that reflect management's view on the various risks inherent to its business, the amount of capital required to support its core operating strategies and the amount of capital necessary to maintain its current ratings in a recessionary environment. The amount of capital required to support Athene's core operating strategies is determined based upon internal modeling and analysis of economic risk, as well as inputs from rating agency capital models and consideration of both NAIC RBC and Bermuda capital requirements. Capital in excess of this required amount is considered excess equity capital, which is available to deploy.
As of December 31, 2025 and December 31, 2024, Athene's U.S. RBC ratio was 436% and 419%, respectively, its Bermuda RBC ratio was 454% and 450%, respectively, and its consolidated RBC ratio was 441% and 430%, respectively. The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Bermuda Capital, as used in the calculation of Bermuda RBC, represents the capital of Athene's non-U.S. reinsurance subsidiaries as reported in the Bermuda statutory financial statements, adjusted to exclude deferred tax assets related to Bermuda CIT. Bermuda statutory financial statements apply U.S. statutory accounting principles for policyholder reserve liabilities, which Athene also subjects to U.S. cash flow testing requirements. There are certain differences between Bermuda statutory and U.S. statutory frameworks that result in Consolidated RBC being approximately 20 RBC points higher as of December 31, 2025. The primary driver of this difference is that Bermuda statutory financial statements require that assets assumed as part of a reinsurance transaction and any assets sold are recorded at their market value, without posting an interest maintenance reserve. Athene expects this difference to reduce over time, and to decline to immaterial levels over the next five years.
ACRA
ACRA 1 provided Athene with access to on-demand capital to support its growth strategies and capital deployment opportunities. ACRA 1 provided a capital source to fund both Athene's inorganic and organic channels. ALRe directly owns 37% of the economic interests in ACRA 1 and all of ACRA 1's voting interests, with ADIP I owning the remaining 63% of the economic interests. The commitment period for ACRA 1 expired in August 2023.
Similar to ACRA 1, ACRA 2 was funded in December 2022 as another long-duration, on-demand capital vehicle. ALRe directly owns 37% of the economic interests in ACRA 2 and all of ACRA 2's voting interests, with ADIP II owning the remaining 63% of the economic interests. ACRA 2 participates in certain transactions by drawing a portion of the required capital for such transactions from third-party investors equal to ADIP II's proportionate economic interests in ACRA 2.
These strategic capital solutions allow Athene the flexibility to simultaneously deploy capital across multiple accretive avenues, while maintaining a strong financial position.
Bermuda Corporate Income Tax
On January 5, 2026, the OECD issued guidance exempting U.S.-parented groups from the IIR or UTPR taxes under the Pillar Two regime. The U.K. government has publicly announced its intention to enact this guidance into law. While the precise timing of such enactment is subject to the U.K. government's legislative process, once enacted, the Company expects that Athene and ACRA entities would be exempt from the IIR and UTPR taxes in the U.K. In light of these developments, and the Company's expectation that maintaining alignment between the Bermuda CIT and Pillar Two tax groups would no longer be beneficial, in January 2026, the Company revoked ACRA's election to be subject to the Bermuda CIT.
Although the Company believes such an outcome would be unlikely, if the U.K. government does not enact the announced legislation, or subsequently amends its legislation in a manner that does not conform to the OECD guidance, the Company expects to re-elect ACRA into the Bermuda CIT regime at that time and utilize the Bermuda deferred tax assets to offset any resulting Bermuda CIT or Pillar Two cash tax obligations.
As a result of the foregoing, in the first quarter of 2026, the Company recorded a full valuation allowance against its Bermuda deferred tax assets, as the Company no longer expects Athene or ACRA to incur Bermuda CIT or Pillar Two tax expense against which such deferred tax assets could be utilized. This resulted in a reduction to other assets and a corresponding increase to income tax provision, resulting in a reduction to equity, equal to the net amount of the Bermuda deferred tax assets of $1.7 billion. Notwithstanding this near-term impact on these financial metrics, and without assurance as to future results, the Company believes that these developments, including the revocation of ACRA's election to be subject to the Bermuda CIT, will have favorable implications for the Company's overall tax position over the longer term.
Critical Accounting Estimates and Policies
This Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon the condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that could affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses and should be read in conjunction with our significant accounting policies described in note 2 of our consolidated financial statements in our 2025 Annual Report. Actual results could differ from these estimates.
The following is a summary of our accounting policies that are affected most by judgments, estimates and assumptions.
•Consolidation of VIEs
•Revenue Recognition
◦Performance Fees within Investment Income
◦Management Fees
•Investments, at fair value
•Fair value of financial instruments
•Equity-based compensation
•Profit sharing expense
•Income taxes
•Valuation of Fixed Maturity Securities, Equity Securities and Mortgage Loans
•Impairment of investments and allowances for expected credit losses
•Derivatives valuation, including embedded derivatives
•Future policy benefits
•Market risk benefits
The above critical accounting estimates and judgments are discussed in detail in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Estimates and Policies" of our 2025 Annual Report.
Recent Accounting Pronouncements
A list of recent accounting pronouncements that are relevant to us is included in note 2 to our condensed consolidated financial statements.
Contractual Obligations, Commitments and Contingencies
Fixed and determinable payments due in connection with the Company's material contractual obligations are as follows as of June 30, 2026:
| (In millions) | 2026 |
2027 - 2028
|
2029 - 2030
|
2031 and Thereafter | Total | ||||||||||||||||||||||||
| Asset Management | |||||||||||||||||||||||||||||
|
Operating lease obligations1
|
$ | 47 | $ | 193 | $ | 185 | $ | 482 | $ | 907 | |||||||||||||||||||
|
Other long-term obligations2
|
28 | 13 | - | - | 41 | ||||||||||||||||||||||||
|
AGM credit facility3
|
1 | 2 | 1 | - | 4 | ||||||||||||||||||||||||
|
Debt obligations3
|
159 | 634 | 1,740 | 8,202 | 10,735 | ||||||||||||||||||||||||
| 235 | 842 | 1,926 | 8,684 | 11,687 | |||||||||||||||||||||||||
| Retirement Services | |||||||||||||||||||||||||||||
| Interest sensitive contract liabilities | 15,029 | 95,144 | 94,647 | 139,773 | 344,593 | ||||||||||||||||||||||||
| Future policy benefits | 1,603 | 5,853 | 5,327 | 35,458 | 48,241 | ||||||||||||||||||||||||
| Market risk benefits | - | - | - | 7,792 | 7,792 | ||||||||||||||||||||||||
| Other policy claims and benefits | 98 | - | - | - | 98 | ||||||||||||||||||||||||
| Dividends payable to policyholders | 4 | 17 | 14 | 52 | 87 | ||||||||||||||||||||||||
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Debt obligations3
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220 | 1,859 | 1,282 | 13,692 | 17,053 | ||||||||||||||||||||||||
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Securities to repurchase4
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79 | 2,369 | 1,143 | - | 3,591 | ||||||||||||||||||||||||
| 17,033 | 105,242 | 102,413 | 196,767 | 421,455 | |||||||||||||||||||||||||
| Obligations | $ | 17,268 | $ | 106,084 | $ | 104,339 | $ | 205,451 | $ | 433,142 | |||||||||||||||||||
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1 Operating lease obligations exclude $135 million of other operating expenses associated with operating leases.
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2 Includes (i) payments on management service agreements related to certain assets and (ii) payments with respect to certain consulting agreements entered into by the Company. Note that a significant portion of these costs are reimbursable by funds.
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3 The obligations for debt payments include contractual maturities of principal and estimated future interest payments based on the terms of the debt agreements. See note 12 of the condensed consolidated financial statements for further discussion of these debt obligations.
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4 The obligations for securities to repurchase payments include contractual maturities of principal and estimated future interest payments based on the terms of the agreements. Future interest payments on floating rate repurchase agreements were calculated using the June 30, 2026 interest rate.
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Note: Due to the fact that the timing of certain amounts to be paid cannot be determined or for other reasons discussed below, the following contractual commitments have not been presented in the table above.
(i)We have tax receivable agreements that require us to pay tax savings the Company may receive to the holders under those agreements. See note 16 to the condensed consolidated financial statements for further information regarding the tax receivable agreements. The tax savings achieved may not ensure that we have sufficient cash available to pay this liability and we might be required to incur additional debt to satisfy this liability.
(ii)Debt amounts related to certain consolidated VIEs and VOEs are not presented in the table above as the Company is not a guarantor of these non-recourse liabilities and the servicing of the debt is entirely within the applicable entity. See notes 6 and 12 to the condensed consolidated financial statements for further information.
(iii)In connection with the Stone Tower acquisition, Apollo agreed to pay the former owners of Stone Tower a specified percentage of any future performance fees earned from certain of the Stone Tower funds, CLOs and strategic investment accounts. These contingent consideration liabilities are remeasured to fair value at each reporting period until the obligations are satisfied. See note 17 to the condensed consolidated financial statements for further information regarding the contingent consideration liabilities.
(iv)Commitments from certain of our subsidiaries to contribute to the funds we manage and certain related parties.
Atlas
In connection with the Company and CS's previously announced transaction, certain subsidiaries of Atlas acquired certain assets of the CS Securitized Products Group (the "Transaction"). Under the terms of the Transaction, Atlas originally agreed to pay CS an amount of $3.3 billion by February 8, 2028. This deferred purchase price is an obligation first of Atlas, second of AAA, third of AAM, fourth of AHL and fifth of AARe. Each of AARe and AAM issued an assurance letter to CS for the full deferred purchase obligation amount of $3.3 billion. In March 2024, in connection with Atlas concluding its investment management agreement with CS, Atlas will no longer receive $0.8 billion of fees and the deferred purchase price obligation is reduced by a corresponding amount from $3.3 billion to $2.5 billion. In addition, certain strategic investors have made equity commitments to Atlas which therefore obligates these investors for a portion of the deferred purchase price obligation.
In exchange for the purchase price, Atlas originally received approximately $0.4 billion in cash and a portfolio of senior secured warehouse assets, subject to debt, with approximately $1 billion of tangible equity value. These warehouse assets are senior secured assets at industry standard loan-to-value ratios, structured to investment grade-equivalent criteria, and were approved by Atlas in connection with this Transaction. Atlas also benefits generally from the net spread earned on these assets in excess of its cost of financing. Finally, Atlas will earn total fees of $0.4 billion under the terms of the investment
management agreement with CS, including management fees and transition and termination payments. As a result, the guarantee related to the Company's aforementioned assurance letter is not probable of payment and, therefore, a liability has not been reflected on the condensed consolidated financial statements.
Supplemental Guarantor Financial Information
The 2031 Senior Notes, 2033 Senior Notes, the 2035 Senior Notes, the 2036 Senior Notes and the 2054 Senior Notes issued by AGM are each guaranteed on a senior, unsecured basis, and the 2053 Subordinated Notes and the 2054 Subordinated Notes issued by AGM are guaranteed on a junior, unsecured basis, by AAM, together with certain Apollo intermediary holding companies (collectively, the "Guarantors"). The Guarantors fully and unconditionally guarantee payments of principal, premium, if any, and interest (i) on the 2031 Senior Notes, the 2033 Senior Notes, the 2035 Senior Notes, the 2036 Senior Notes and the 2054 Senior Notes on a senior, unsecured basis and (ii) on the 2053 Subordinated Notes and the 2054 Subordinated Notes on a subordinated, unsecured basis. See note 12 of the condensed consolidated financial statements for further discussion on these debt obligations.
AGM, as issuer, and the Guarantors are holding companies. The primary sources of cash flow are dependent upon distributions from their respective subsidiaries to meet their future obligations under the notes and the guarantees, respectively. The 2031 Senior Notes, 2033 Senior Notes, the 2035 Senior Notes, the 2036 Senior Notes, the 2054 Senior Notes, the 2053 Subordinated Notes and the 2054 Subordinated Notes are not guaranteed by any fee generating businesses, Apollo-managed funds, or Athene and its direct and indirect subsidiaries. Holders of the guaranteed registered debt securities will have a direct claim only against AGM as issuer.
The following tables present summarized financial information of AGM, as the issuer of the debt securities, and the Guarantors on a combined basis after elimination of intercompany transactions and balances within the Guarantors and equity in the earnings from and investments in any non-guarantor subsidiary. As used herein, "obligor group" means AGM, as the issuer of the debt securities, and the Guarantors on a combined basis. The summarized financial information is provided in accordance with the reporting requirements of Rule 13-01 under SEC Regulation S-X for the obligor group and is not intended to present the financial position or results of operations of the obligor group in accordance with U.S. GAAP.
| (In millions) | June 30, 2026 | December 31, 2025 | |||||||||
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Summarized Statements of Financial Condition
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| Current assets, less receivables from non-guarantor subsidiaries | $ | 3,093 | $ | 3,061 | |||||||
| Non-current assets | 9,276 | 8,724 | |||||||||
| Due from related parties, excluding non-guarantor subsidiaries | 789 | 647 | |||||||||
| Current liabilities, less payables to non-guarantor subsidiaries | 960 | 934 | |||||||||
| Non-current liabilities | 9,018 | 8,278 | |||||||||
| Due to related parties, excluding non-guarantor subsidiaries | 394 | 277 | |||||||||
| Non-controlling interests | 39 | 35 | |||||||||
| (In millions) | Six months ended June 30, 2026 | ||||
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Summarized Statements of Operations
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| Revenues | $ | 2,272 | |||
| Net income (loss) | 53 | ||||
| Net income (loss) attributable to obligor group | 1 | ||||
The following are transactions of the obligor group with non-guarantor subsidiaries.
| (In millions) | June 30, 2026 | December 31, 2025 | |||||||||
| Due from non-guarantor subsidiaries | $ | 1,175 | $ | 1,150 | |||||||
| Due to non-guarantor subsidiaries | 1,617 | 1,364 | |||||||||
| (In millions) | Six months ended June 30, 2026 | ||||||||||
| Intercompany revenue | $ | 785 | |||||||||
| Intercompany expense | 300 | ||||||||||
| Intercompany interest income | 17 | ||||||||||
Apollo Global Management Inc. published this content on August 10, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 10, 2026 at 11:34 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]