The New York-based company said its adjusted net profit rose to $800.5 million in the three months ended Sept. 30, from $752.6 million a year earlier. This results in adjusted net earnings per share of $1.33, slightly above the average analyst estimate of $1.23, according to Refinitiv data.
Apollo said its fee-related income hit a record $364.6 million as transaction and advisory fee income for the private debt financing organization rose 60% to a record $104.6 million. The company has taken advantage of jitters in debt markets by providing more debt for leveraged buyouts than risk-averse banks are willing to do.
Spread-related profit, which Apollo generates by investing capital in its pension provider Athene, was $578.1 million, reflecting higher profit from rising interest rates.
Apollo’s revenue from its private equity business fell sharply by 91% to $50.1 million as the company cashed in fewer assets from its portfolio due to the market downturn. Its flagship private equity funds fell 0.3%, while its corporate credit funds rose 0.9%.
In contrast, Blackstone Inc and KKR & Co Inc saw declines of 0.3% and 4% respectively in their private equity funds during the quarter.
Under generally accepted accounting principles, Apollo recorded a net loss of $876 million, compared with a net profit of $249 million a year ago, due to investment losses and Athena’s insurance liabilities. .
During the quarter, Apollo completed $37 billion in investments, raised $34 billion in new capital and retained $51 billion in unused capital. Its assets under management reached $523 billion and it declared a dividend of 39.84 cents per share.