Company: APO
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001858681-25-000139
Chunk: 422

Company: Apollo Global Management, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 422
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 millions, except percentages)2025202420252024Principal Investing:Realized performance fees$201 $331 $(130)(39.3)%$610 $600 $10 1.7%Realized investment income (loss)18 17 1 5.959 42 17 40.5Principal investing compensation(155)(253)(98)(38.7)(511)(464)47 10.1Other operating expenses(14)(17)(3)(17.6)(47)(46)1 2.2Principal Investing Income (PII)$50 $78 $(28)(35.9)%$111 $132 $(21)(15.9)%

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

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

PII was $50 million in 2025, a decrease of $28 million, as compared to $78 million in 2024. This decrease was primarily attributable to a decrease in realized performance fees of $130 million, partially offset by a decrease in principal investing compensation expense of $98 million.

The decrease in realized performance fees of $130 million in 2025 was primarily driven by a decrease in realized performance fees generated from Freedom Parent Holdings and Fund IX, partially offset by an increase in realized performance fees earned from HVF II. Realized performance fees continue to be cyclically light as monetization activity from sizeable flagship private equity and hybrid funds remains prudently delayed amid an uncertain exit environment. 

Principal investing compensation expense of $155 million in 2025 decreased $98 million, as compared to $253 million in 2024. The decrease in 2025 was primarily due to a decrease in profit sharing expense corresponding to the decrease 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. The decrease in 2025 was also driven by a decrease in