Company: APO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001858681-25-000117
Chunk: 395

Company: Apollo Global Management, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 395
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52.0%Realized investment income (loss)13 11 2 18.241 25 16 64.0Principal investing compensation(168)(138)30 21.7(356)(211)145 68.7Other operating expenses(17)(15)2 13.3(33)(29)4 13.8Principal Investing Income (PII)$47 $33 $14 42.4%$61 $54 $7 13.0%

As described in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—General”, earnings from our Principal Investing segment are inherently more volatile in nature than earnings from our Asset Management segment due to the intrinsic cyclical nature of performance fees, one of the key drivers of PII performance.

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

In this section, references to 2025 refer to the three months ended June 30, 2025 and references to 2024 refer to the three months ended June 30, 2024.

PII was $47 million in 2025, an increase of $14 million, as compared to $33 million in 2024. This increase was primarily attributable to an increase in realized performance fees of $44 million, partially offset by an increase in principal investing compensation expense of $30 million.

The increase in realized performance fees of $44 million in 2025 was driven by a few sizable monetizations within traditional private equity, primarily Fund IX, the crystallization of performance fees generated from AAA Aviation Holdings, L.P., as well as realized performance fees generated from HVF II and ANRP III. Realized performance fees continue to be cyclically light as monetization activity remains prudently delayed amid an uncertain exit environment. 

Principal investing compensation of $168 million in 2025 increased $30 million, as compared to $138 million in 2024. The increase in 2025 was primarily due to an increase in profit sharing expense corresponding to the increase in realized performance fees. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

In this section, references to 2025 refer to the six months ended June 30, 2025 and references to 202