Apollo Global Management, Inc. (APO) Q1 2023 Earnings Call Transcript

For the period ending MARCH 31, 2023

May 9, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to Apollo Global Management's First Quarter 2023 Earnings Conference Call. [Operator Instructions].

This call may contain 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 during this conference, 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.

Please also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any Apollo fund.

I will now turn the conference over to Noah Gunn, Global Head of Investor Relations.

Noah Gunn

Great. Thanks, Donna, and welcome again, everyone, to our call this morning. Earlier, we published our earnings release and financial supplement on the Investor Relations portion of our website.

First quarter results were strong and outperformed on a number of fronts, which we believe few others can say amid this backdrop of market volatility. We'll discuss further over the course of the call, but it's quite apparent that our purchase price matters approach is shining, allowing us to be very front-footed in executing our strategic objectives.

The proof is in the numbers. We reported record quarterly FRE of $397 million or $0.67 per share and normalized SRE of $811 million or $1.36 per share which together increased a remarkable 45% year-over-year. This powerful combination of fee and spread-related earnings, coupled with principal investing income, drove normalized adjusted net income of $942 or $1.58 per share in the first quarter, up 18% year-over-year, which is indicative of the type of consistent, compound earnings growth we believe we can deliver to our shareholders.

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'll turn the call over to Marc.

Marc Rowan

Thank you, Noah, and good morning to all. Noah started down the path that I'd like to pick up on and really talk about the two different bets we have made versus our industry.

The first is an investment style bet. If you look across our $600 billion of AUM, you never have to worry about what strategy we're following. Every strategy is purchase price matters. Purchase price matters is grounded in facts, it's grounded in cash flow, it's grounded in business prospects.