Apollo Global Management has announced attributable net income of $198.6 million during 3Q 2017, or $1 per share, blowing past reported analyst expectations of 61 cents per share and representing a YoY increase of nearly 110%. Apollo’s economic net income, meanwhile, increased by some 87% YoY, to $431.6 million. The firm’s private equity funds appreciated 7.3% in the quarter, bringing total appreciation in the past 12 months to 25.1%.
This industry is projected to double in size from $22 billion to an estimated $44 billion
The impressive results come three months after Apollo posted underwhelming earnings in 2Q, including a 54% YoY decline in ENI. Overall, the first nine months of 2017 have been good for the firm's shareholders: After closing 2016 trading at $19.36 per share, Apollo's stock ended Wednesday trading at $31.63.
Apollo was the last of the Big Four publicly traded buyout behemoths to post its 3Q earnings. Overall, the returns were promising. Blackstone topped analyst expectations, while The Carlyle Group recorded major YoY gains. KKR posted a YoY decline, but the firm's PE portfolio still appreciated by nearly 4%. Here's a closer comparison:
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Boosted by the commitments for its $24.7 billion Fund IX, Apollo's private equity unit saw $581 million in inflows during 3Q, while the firm deployed $1.1 billion and realized $384 million. Economic net income within the PE division itself was about $271 million for the past three months, more than double the $130.4 million figure posted in 3Q 2016. Apollo's PE arm now has $70 billion in AUM and a whopping $36 billion in dry powder.
So far this year, meanwhile, Apollo has completed 25 private equity investments, according to the PitchBook Platform, on pace to equal last year's total of 30. Its most notable takeovers of the past 10 months include a $5.2 billion deal to buy network infrastructure provider West and a $2 billion move to acquire the Lumileds lighting unit.
PitchBook subscribers can check out all of Apollo's recent investments.
Article by Kevin Dowd, PitchBook