Apollo Global Management, Inc. (APO) Q3 2022 Earnings Call Transcript

For the period ending SEPTEMBER 30, 2022

November 2, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and welcome to Apollo Global Management's Third Quarter Earnings Conference Call. During today’s discussion, all callers will be placed in listen-only mode. And following management’s prepared remarks, the conference call will open for questions. Please limit yourself to one question and then rejoin the queue. This conference call is being recorded.

This call may include forward-looking statements and projections, which do not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements. Apollo will be discussing certain non-GAAP measures on this call; which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's website. Also, note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Apollo fund.

I would now like to turn the call over to Noah Gunn, Global Head of Investor Relations.

Noah Gunn

Thanks, operator, and welcome again to our call this morning. Earlier today, we published our earnings release and financial supplement on the Investor Relations portion of our Web site. For the third quarter, we reported fee-related earnings of $365 million, an increase of14% year-over-year or $0.61 per share and spread-related earnings of $578 million or $0.96 per share. Together, fee and spread-related earnings totaled $943 million or $1.57 per share. And in total we reported adjusted net income of $801 million, or $1.33 per share for the third quarter.

Joining me this morning to discuss our results in further detail are Marc Rowan, CEO; Scott Kleinman, Co-President; and Martin Kelly, CFO.

And with that, I will turn the call over to Marc.

Marc Rowan

Thank you, Noah. Good morning to all. Apologies in advance for sounding like a losing Texas football coach. I will do my best. I thought where I'd start is really to start with the macro or the market backdrop. I have a chart on my office wall that traces the movements of the S&P falling the 2008 financial crisis, and following the beginning of tightening in this round by the Fed. They are almost on top of each other. That is not to imply that we are going to have or experience the same sort of events that followed 2008, but I do believe it is important to comment on market psychology and investor sentiment.