Company: APO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001858681-25-000117
Chunk: 55

Company: Apollo Global Management, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 55
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 2025, a valuation increase on Wheels in the second quarter of 2025, strong growth from origination partnerships within Aqua Finance compared to a valuation decrease in 2024 and successful deployment following a capital raise within Apterra in 2025. The increase in income from retirement services platforms was primarily related to a valuation increase on Venerable in 2025 related to the announcement of a reinsurance transaction with Corebridge and unfavorable returns on Athene’s investment in Catalina in 2024 not recurring in 2025 due to the distribution of Athene’s Catalina common equity interests to AGM as a dividend in the third quarter of 2024, partially offset by increased capital requirements related to expanded solvency requirements impacting the valuation of Athora in 2025.

Strategic capital management fees were $61 million in 2025, an increase of $12 million from $49 million in 2024 primarily driven by additional fees received from ADIP II attributable to strong net flows into ACRA 2 over the previous twelve months.

Cost of funds was $4.7 billion in 2025, an increase of $1.1 billion from $3.6 billion in 2024, primarily driven by significant growth in deferred annuity and institutional business, higher rates on new business and runoff of lower rate business compared to existing blocks, earlier origination of new business within the year compared to 2024 and a shift in business mix to more institutional business at higher crediting rates. These impacts were partially offset by lower rates on floating rate funding agreements.

Interest and other financing costs were $262 million in 2025, an increase of $52 million from $210 million in 2024, primarily driven by higher interest expense related to additional issuances of long-term debt in the fourth quarter of 2024 and second quarter of 2025.

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Net Investment Spread

Six months ended June 30,20252024ChangeFixed income and other net investment earned rate4.89 %4.75 %14bpsAlternative net investment earned rate10.05 %7.42 %263bpsNet investment earned rate5.14 %4.89 %25bpsStrategic capital management fees0.05 %0.04 %1bpCost of funds(3.57)%(3.19)%38bpsNet investment spread1.62 %1.74 %(12)bps

Net investment spread was 1.62% in 2025,