Company: APO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001858681-25-000049
Chunk: 22

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 2
Chunk 22
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 S3 Equity and Hybrid Solutions Fund, L.P. ("S3 Equity and Hybrid Solutions") of $24 million, $18 million and $15 million, respectively, partially offset by a decrease in management fees earned from Fund IX and Fund VIII of $10 million and $4 million, respectively. Management fees in 2025 also benefited from increased management fees earned from certain strategic separately managed accounts. The increase in management fees earned from Atlas, ADS and S3 Equity and Hybrid Solutions was driven by higher fee-generating AUM due to an increase in the management fee basis, an increase in subscriptions and additional closes, respectively. The decrease in management fees earned from Fund IX and Fund VIII were correlated with Fund IX’s decrease in invested capital and the expiration of Fund VIII’s fee-paying period, respectively.

Advisory and transaction fees, net increased by $26 million to $195 million in 2025 from $169 million in 2024. Advisory and transaction fees earned during 2025 were primarily attributable to advisory and transaction fees earned from companies in the (i) manufacturing and industrial and (ii) financial services sectors.

Investment income decreased $99 million in 2025 to $303 million compared to $402 million in 2024. The decrease in investment income of $99 million in 2025 was primarily driven by decreases in performance allocations of $98 million.

Significant drivers for performance allocations in 2025 were performance allocations primarily earned from Fund X, HVF II, Fund IX, Redding Ridge Holdings and Credit Strategies of $83 million, $34 million, $31 million, $22 million and $21 million, respectively, partially offset by performance allocation losses from Financial Credit Investment II, L.P. (“FCI II”) of $17 million.

See below for details on the respective performance allocations in 2025.

The performance allocations earned from Fund X in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) consumer and retail, (ii) chemicals and (iii) manufacturing and industrial sectors.

The performance allocations earned from HVF II in 2025 were primarily driven by the appreciation and realization of the fund’s investments in private portfolio companies in the (i) consumer and retail, (ii) consumer services and (iii) media, telecom and technology sectors.

The performance allocations earned from Fund IX in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) manufacturing and industrial and