Company: APO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001858681-25-000049
Chunk: 199

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 199
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 $97 21.0%

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.

FRE was $559 million in 2025, an increase of $97 million compared to $462 million in 2024. This increase was primarily attributable to growth in fee related revenues, including management fees, capital solutions fees and other, net and fee-related performance fees.

The increase in management fees was primarily attributable to management fees earned from Athene, ADS and S3 Equity and Hybrid Solutions of $70 million, $16 million and $15 million, respectively, partially offset by decreases in management fees earned from Fund IX and Fund VIII of $10 million and $4 million, respectively. The increase in management fees earned from Athene was primarily driven by increases in fee-generating AUM as a result of record organic growth at Athene. The increase in management fees earned from ADS and S3 Equity and Hybrid Solutions was primarily driven by increased subscriptions in 2025. 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.

Capital solutions fees in 2025 were primarily attributable to fees earned from companies in the (i) manufacturing and industrial and (ii) financial services sectors. 

The increase in fee-related performance fees in 2025 was primarily attributable to fees earned from ADS, reflecting the growing contribution from Apollo’s wealth-focused products.

The growth in revenues was offset, in part, by higher fee-related compensation expense and non-compensation expenses. Higher fee-related compensation expense in 2025 was driven by increased headcount as a result of our investment in the next phase of our growth. Non-compensation expenses moderately grew in 2025 reflecting expense discipline and were primarily driven by an increase in placement fees and higher depreciation and amortization expenses, partially offset by decreases in recruitment fees and travel and entertainment expenses.

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Asset Management Operating Metrics

We monitor certain operating metrics that are common to the alternative asset management industry and directly impact the performance of our Asset Management segment. These operating metrics include Assets Under Management, origination, gross capital deployment and uncalled commitments.

Assets Under Management

The following presents Apollo’s Total AUM and