Apollo (APO) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, February 9, 2026 astatine 9:17 AM CST 60 min read

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Feb. 9, 2026 8:30 a.m. ET

• Chief Executive Officer — Marc Rowan

• President — James Zelter

• Chief Financial Officer — Martin Kelly

• Head of Investor Relations — Noah Gunn

Noah Gunn: Thanks, operator, and invited again, everyone, to our call. Joining maine to sermon our results and the momentum we're seeing crossed the concern are Marc Rowan, CEO, James Zelter, President, and Martin Kelly, CFO. Earlier this morning, we published our net merchandise and fiscal supplement connected the Investor Relations information of our website. Our apologies for the aboriginal net day this quarter; this was principally owed to our Partner Summit, which was a fantastic lawsuit that we held successful Tokyo past week. As you tin see, our results bespeak the broad-based spot crossed the concern and our team's exceptional execution passim the year.

For the afloat year, we generated grounds combined fee-related net and spread-related net of $5.9 billion, which drove adjusted nett income of $5.2 billion, up 14% twelvemonth implicit year, oregon $8.38 per share. Given the spot of these results, I've asked the guys to support our remarks connected the tighter broadside this quarter, but, of course, we marque nary promises. With that, I'll manus it implicit to Marc.

Marc Rowan: Thanks, Noah. I volition bash my best. I person doubts astir James and Martin. Again, an exceptional 4th capping disconnected an exceptional year. FRE for the twelvemonth was $2.5 billion, up 23% twelvemonth implicit year. SRE was $3.4 billion, normalized positive 9% twelvemonth implicit year. The concern is firing connected each cylinders. Origination grounds measurement crossed the $300 cardinal mark. More importantly, robust accordant dispersed of 350 ground points implicit treasuries with an mean standing of BBB. Capital enactment grounds inflows of $228 billion, some Athene and Asset Management ACS, marked the 3rd consecutive grounds year. Most important to us, this is each done with beardown concern show without reaching.

To springiness you a consciousness of conscionable however strong, each buckets of recognition were up 8% to 12%, hybrid worth up 16% for the year, Fund X, our astir caller vintage Fund XIII, had a 22% nett IRR, beardown DPI versus an manufacture DPI that rounds person to zero. Looking forward, each of the drivers that powered america successful 2025 are going to powerfulness america successful 2026. In fact, I would accidental that they're much mature. And if you deliberation astir what's happening successful our business, we are going from serving 1 market, organization mendacious portfolios, to serving six markets.

We present service individuals, we service insurance, we service the indebtedness and equity buckets of our organization clients, we service accepted plus managers, and we anticipation to service much robustly the 401(k) market. Each of these markets has the quality to beryllium astir the aforesaid size arsenic our archetypal market, which powered the full industry. Understanding that these markets necessitate antithetic products, antithetic merchandise structures, antithetic entree points, antithetic investments successful exertion to serve, and you volition spot these markets mature much and much implicit time. As we look forward, we deliberation the trends that are showing up successful 2025 volition amusement up adjacent much successful 2026 and again successful 2027.