Company: APO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001858681-25-000117
Chunk: 33

Company: Apollo Global Management, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 33
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 million in 2024. The increase in management fees was primarily attributable to management fees earned from Atlas, S3 Equity and Hybrid Solutions and ADS of $67 million, $39 million, and $38 million, respectively, partially offset by decreases in management fees earned from Fund IX and Fund VIII of $19 million and $8 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, S3 Equity and Hybrid Solutions and ADS was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities, catch-up management fees on additional closes and an increase in subscriptions, respectively. The decrease in management fees earned from Fund IX and Fund VIII were correlated with the fee rate step-down of Fund IX and the expiration of Fund VIII’s fee-paying period, respectively.

Advisory and transaction fees increased by $36 million to $472 million in 2025 from $436 million in 2024. Advisory and transaction fees earned during 2025 were primarily attributable to advisory and transaction fees earned from companies in the (i) financial services, (ii) natural resources, (iii) manufacturing and industrial and (iv) consumer services sectors.

Investment income decreased $188 million in 2025 to $492 million compared to $680 million in 2024. The decrease in investment income in 2025 was primarily driven by a decrease in performance allocations of $181 million.

Significant drivers for performance allocations in 2025 were performance allocations primarily earned from Fund X, HVF II, Freedom Parent Holdings, Credit Strategies, Redding Ridge Holdings and ANRP II of $207 million, $56 million, $46 million, $46 million, $38 million and $30 million, respectively, partially offset by performance allocation losses from Fund IX of $90 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) manufacturing and industrial, (ii) consumer and retail and (iii) consumer services 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