Company: APO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001858681-25-000049
Chunk: 215

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 215
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 proportionate share of investments associated with the non-controlling interests.

Net invested assets is utilized by management to evaluate Athene’s investment portfolio. Net invested assets is used in the computation of net investment earned rate, which allows Athene to analyze the profitability of its investment portfolio. Net invested assets is also used in Athene’s risk management processes for asset purchases, product design and underwriting, stress scenarios, liquidity and ALM.

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Principal Investing

The following table presents Principal Investing Income, the performance measure of our Principal Investing segment.

Three months ended March 31,Total ChangePercentage Change(In millions, except percentages)20252024Principal Investing:Realized performance fees$190 $94 $96 102.1%Realized investment income (loss)28 14 14 100.0Principal investing compensation(188)(73)115 157.5Other operating expenses(16)(14)2 14.3Principal Investing Income (PII)$14 $21 $(7)(33.3)%

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 March 31, 2025 Compared to Three Months Ended March 31, 2024

In this section, references to 2025 refer to the three months ended March 31, 2025 and references to 2024 refer to the three months ended March 31, 2024.

PII was $14 million in 2025, a decrease of $7 million compared to $21 million in 2024. This decrease was primarily attributable to an increase in principal investing compensation expense of $115 million, partially offset by an increase in realized performance fees of $96 million.

Principal investing compensation expense of $188 million in 2025 increased $115 million compared to $73 million in 2024. The increase in 2025 was primarily due to an increase in profit sharing expense associated with the corresponding 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. Additionally, the increase in 2025 was also driven by profit sharing expense attributable to the Company’s incentive pool, a compensation program through which certain employees are allocated discretionary compensation based on