KKR - Apollo: On Its Way To $1 Trillion AUM While Displaying A Fair Valuation
2024-06-19 09:30:00 ET
Summary
- Apollo Global Management has exhibited impressive AUM growth over the past years, both organically and inorganically, and still expects AUM to hit $1 trillion by 2026.
- CAGR from fee-related and spread-related earnings have been of double digits, and based on company guidance, they still expect this momentum of double-digit growth in 2024.
- Despite elevated stock returns over the past year, the sum of parts valuation still sits within the band of fair value territory, making it a buy.
Apollo Global Management ( APO ) is the world's largest private credit asset manager. As of Q1, they had $501 billion AUM of alternative credit, which is superior to Blackstone's exposure at $330 billion . Overall, in Q1 TTM, they achieved $5.464 million in net income, which helped them gain a market cap valuation of $66.17 billion. Importantly, Apollo's business not only comes from the asset manager but also from the retirement business as some years ago, they had a merger with Athene . This company offers the services of annuities and at the same time Apollo, has a significant minority position of 24.57% in the European insurance Athora. ...
Apollo: On Its Way To $1 Trillion AUM While Displaying A Fair Valuation