Apollo’s PE business drives up second-quarter earnings
A strong performance from Apollo Global Management’s private equity business saw second-quarter earnings reach $139.6 million, or US$0.31 per share, on the back of revenue jumped to $308.9 million from $79.3 million. According to US GAAP, Apollo posted a loss of $51 million, compared to a loss of $75.1 million a year earlier, Dow Jones Newswires reported.
Apollo's carried interest income - the fees earned on profits from assets under management - came to $164.1 million, by far the largest top-line contributor. Carried interest income posted a $54.7 million deficit for the same period of last year. Management fees for the second quarter rose 14%, but advisory and transaction fees fell 12%.
Assets under management stood at $71.7 billion as of June 30, up 32% year-on-year, driven by appreciation in assets. Apollo still has $9.9 billion in uncalled private equity commitments to invest. Fund VII, a private equity vehicle launched in 2008, generated an annual net internal rate of return of 29%, while Fund VI, which began investing in 2006, reported an 11% internal rate of return.
In late June, Apollo announced a INR22.5 billion ($502.9 million) investment in pipe manufacturer Welspun Corp., its largest deal in India to date.
Apollo's Class A shares closed at $13.24 on Monday and have fallen 30% since the firm's IPO in March. Blackstone and KKR have seen declines of 14.9% and 26%, respectively.
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