Exhibit 99.2
CAPITALIZATION
The following table sets forth our capitalization as of December 31, 2018 for the Apollo Operating Group on a historical basis and as adjusted to give effect to this offering and the use of proceeds therefrom. The information below regarding our financial results for the fiscal quarter and the fiscal year ended December 31, 2018 is preliminary and has not been audited or reviewed by Deloitte & Touche LLP, our independent registered public accountants, nor have any other review procedures been performed by Deloitte & Touche LLP, with respect to these results. See “Summary—Recent Developments—Preliminary Financial Results for the Fiscal Quarter and the Fiscal Year Ended December 31, 2018 (unaudited).” You should read this table in conjunction with the sections titled “Summary—Recent Developments—Preliminary Financial Results for the Fiscal Quarter and the Fiscal Year Ended December 31, 2018 (unaudited),” Summary—Recent Developments—Unaudited Reconciliation of Financial Data” and “Unaudited Reconciliation of Financial Data” included in this offering memorandum, and with the financial statements and the related notes and reconciliations incorporated by reference in this offering memorandum.
As of December 31, 2018 | ||||||||
Actual | As Adjusted | |||||||
(dollars in millions) | ||||||||
4.000% Senior Notes Due 2024 | $ | 496.5 | $ | 496.5 | ||||
4.400% Senior Notes due 2026 | 496.2 | 496.2 | ||||||
5.000% Senior Notes due 2048 | 296.4 | 296.4 | ||||||
Notes offered hereby(1) | — | |||||||
Revolving Facility(2) | — | — | ||||||
2014 AMI Term Facilities | 33.3 | 33.3 | ||||||
2016 AMI Term Facility | 38.1 | 38.1 | ||||||
Series A Preferred Shares | 264.4 | 264.4 | ||||||
Series B Preferred Shares | 289.8 | 289.8 | ||||||
Additional paid in capital | 1,299.4 | 1,299.4 | ||||||
Accumulated deficit | (473.3 | ) | (473.3 | ) | ||||
Accumulated other comprehensive loss | (4.2 | ) | (4.2 | ) | ||||
Non-controlling interests in consolidated entities | 271.5 | 271.5 | ||||||
Non-controlling interests in Apollo Operating Group | 804.1 | 804.1 | ||||||
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Total capitalization | $ | 3,812.2 | $ | |||||
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(1) | As adjusted reflects gross proceeds of $ million, net of original issue discount of approximately $ million. The discount will be amortized into interest expense over the term of the notes, resulting in the accretion of $ million to par value of $ million. |
(2) | As of December 31, 2018, we had no outstanding borrowings under the revolving facility. |
UNAUDITED RECONCILIATION OF FINANCIAL DATA
The following tables present the preliminary unaudited financial information for the Apollo Operating Group as of and for the fiscal year ended December 31, 2018. The Apollo Operating Group does not report audited or unaudited financial information on a stand-alone basis. Accordingly, the financial data presented herein for the Apollo Operating Group has been reconciled to Apollo Global Management, LLC’s preliminary unaudited financial information for the relevant period. Such financial data remain subject to adjustment and could differ based on Apollo Global Management, LLC’s actual results that will be reflected in Apollo Global Management, LLC’s Annual Report onForm 10-K for the year ended December 31, 2018.
For the Year ended December 31, 2018 | ||||||||||||||||
Total Apollo Operating Group Consolidated | VIE & Consolidated Funds Total | Other(1) | Total Apollo Global Management, LLC Consolidated | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Statement of Operations | ||||||||||||||||
Revenues: | ||||||||||||||||
Management fees from related parties | $ | 1,349,234 | $ | — | $ | (3,982 | ) | $ | 1,345,252 | |||||||
Advisory and transaction fees from related parties, net | 112,278 | — | — | 112,278 | ||||||||||||
Investment Income (loss): | ||||||||||||||||
Performance allocations | (392,061 | ) | — | (8,244 | ) | (400,305 | ) | |||||||||
Principal investment income | 9,282 | — | (4,160 | ) | 5,122 | |||||||||||
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Total investment income (loss) | (382,779 | ) | — | (12,404 | ) | (395,183 | ) | |||||||||
Incentive fees | 30,718 | — | — | 30,718 | ||||||||||||
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Total Revenues | 1,109,451 | — | (16,386 | ) | 1,093,065 | |||||||||||
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Expenses: | ||||||||||||||||
Compensation and benefits: | ||||||||||||||||
Salary, bonus and benefits | 459,604 | — | — | 459,604 | ||||||||||||
Equity-based compensation | 173,228 | — | — | 173,228 | ||||||||||||
Profit sharing expense | (57,833 | ) | — | — | (57,833 | ) | ||||||||||
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Total compensation and benefits | 574,999 | — | — | 574,999 | ||||||||||||
Interest expense | 59,369 | — | 5 | 59,374 | ||||||||||||
General, administrative and other | 266,105 | — | 339 | 266,444 | ||||||||||||
Placement fees | 2,122 | — | — | 2,122 | ||||||||||||
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Total Expenses | 902,595 | — | 344 | 902,939 | ||||||||||||
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Other Income (Loss): | ||||||||||||||||
Net losses from investment activities | (186,426 | ) | (23 | ) | — | (186,449 | ) | |||||||||
Net gains from investment activities of consolidated variable interest entities | — | 39,840 | 5,272 | 45,112 | ||||||||||||
Interest income | 21,882 | 11 | (1,239 | ) | 20,654 | |||||||||||
Other income, net | 418 | — | 35,411 | 35,829 | ||||||||||||
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Total Other Income (Loss) | (164,126 | ) | 39,828 | 39,444 | (84,854 | ) | ||||||||||
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Income before income tax provision | 42,730 | 39,828 | 22,714 | 105,272 | ||||||||||||
Income tax provision | (9,764 | ) | — | (76,257 | ) | (86,021 | ) | |||||||||
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Net Income | 32,966 | 39,828 | (53,543 | ) | 19,251 | |||||||||||
Net income attributable toNon-controlling Interests | (2,156 | ) | (27,471 | ) | — | (29,627 | ) | |||||||||
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Net Income (Loss) Attributable to Apollo Global Management, LLC | 30,810 | 12,357 | (53,543 | ) | (10,376 | ) | ||||||||||
Net income attributable to Series A Preferred Shareholders | (17,531 | ) | — | — | (17,531 | ) | ||||||||||
Net income attributable to Series B Preferred Shareholders | (14,131 | ) | — | — | (14,131 | ) | ||||||||||
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Net Income (Loss) Attributable to Apollo Global Management, LLC Class A Shareholders | $ | (852 | ) | $ | 12,357 | $ | (53,543 | ) | $ | (42,038 | ) | |||||
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(1) | Includes eliminations for VIE and fund consolidation and entities not included in the Apollo Operating Group. |
As of December 31, 2018 | ||||||||||||||||
Total Apollo Operating Group Consolidated | VIE & Consolidated Funds Total | Other(1) | Total Apollo Global Management, LLC Consolidated | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Statement of Financial Data | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 608,181 | 4 | 1,562 | 609,747 | |||||||||||
Restricted cash | 3,457 | — | — | 3,457 | ||||||||||||
U.S. Treasury securities, at fair value | 392,932 | — | — | 392,932 | ||||||||||||
Investments (includes performance allocations of $912,182 as of December 31, 2018) | 2,811,445 | 558 | (89,391 | ) | 2,722,612 | |||||||||||
Assets of consolidated variable interest entities: | ||||||||||||||||
Cash and cash equivalents | — | 49,671 | — | 49,671 | ||||||||||||
Investments, at fair value | — | 1,175,985 | (308 | ) | 1,175,677 | |||||||||||
Other assets | — | 65,543 | — | 65,543 | ||||||||||||
Incentive Fee receivable | 6,792 | — | — | 6,792 | ||||||||||||
Due from related parties | 522,122 | — | (144,014 | ) | 378,108 | |||||||||||
Deferred tax assets | 5,999 | — | 300,095 | 306,094 | ||||||||||||
Other assets | 174,087 | — | (817 | ) | 173,270 | |||||||||||
Goodwill | 88,852 | — | — | 88,852 | ||||||||||||
Intangible assets, net | 18,899 | — | — | 18,899 | ||||||||||||
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Total Assets | $ | 4,632,766 | $ | 1,291,761 | $ | 67,127 | $ | 5,991,654 | ||||||||
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Liabilities and Shareholders’ Equity | ||||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable and accrued expenses | $ | 70,791 | $ | — | $ | 87 | $ | 70,878 | ||||||||
Accrued compensation and benefits | 73,583 | — | — | 73,583 | ||||||||||||
Deferred revenue | 111,097 | — | — | 111,097 | ||||||||||||
Due to related parties | 139,537 | — | 285,898 | 425,435 | ||||||||||||
Profit sharing payable | 452,141 | — | — | 452,141 | ||||||||||||
Debt | 1,360,448 | — | — | 1,360,448 | ||||||||||||
Liabilities of consolidated variable interest entities: | — | — | ||||||||||||||
Debt, at fair value | — | 899,651 | (44,190 | ) | 855,461 | |||||||||||
Other liabilities | — | 79,244 | (267 | ) | 78,977 | |||||||||||
Due to affiliates | — | 1,787 | (1,787 | ) | — | |||||||||||
Other liabilities | 111,794 | — | — | 111,794 | ||||||||||||
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Total Liabilities | 2,319,391 | 980,682 | 239,741 | 3,539,814 | ||||||||||||
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Shareholders’ Equity: | ||||||||||||||||
Apollo Global Management, LLC shareholders’ equity: | ||||||||||||||||
Series A Preferred shares, 11,000,000 shares issued and outstanding as of December 31, 2018 | 264,398 | — | — | 264,398 | ||||||||||||
Series B Preferred shares, 12,000,000 shares issued and outstanding as of December 31, 2018 | 289,815 | — | — | 289,815 | ||||||||||||
Additional paid in capital | — | — | 1,299,418 | 1,299,418 | ||||||||||||
Accumulated deficit | 953,366 | 17,673 | (1,444,315 | ) | (473,276 | ) | ||||||||||
Accumulated other comprehensive loss | (4,043 | ) | (2,479 | ) | 2,363 | (4,159 | ) | |||||||||
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Total Apollo Global Management, LLC shareholders’ equity | 1,503,536 | 15,194 | (142,534 | ) | 1,376,196 | |||||||||||
Non-Controlling Interests in consolidated entities | 5,717 | 295,885 | (30,080 | ) | 271,522 | |||||||||||
Non-Controlling Interests in Apollo Operating Group | 804,122 | — | — | 804,122 | ||||||||||||
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Total Shareholders’ Equity | 2,313,375 | 311,079 | (172,614 | ) | 2,451,840 | |||||||||||
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Total Liabilities and Shareholders’ Equity | $ | 4,632,766 | $ | 1,291,761 | $ | 67,127 | $ | 5,991,654 | ||||||||
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(1) | Includes eliminations for VIE and fund consolidation and entities not included in the Apollo Operating Group. |
TOTAL AUM ANDFEE-GENERATING AUM FOR CREDIT SEGMENT
The following table presents Total AUM andFee-Generating AUM amounts for our credit segment by category type:
As of December 31, 2018 | ||||||||
Total AUM | Fee-Generating AUM | |||||||
(dollars in millions) | ||||||||
Liquid/Performing | $ | 54,825 | $ | 40,323 | ||||
Hedge Funds | 7,159 | 2,896 | ||||||
CLOs | 14,371 | 8,852 | ||||||
SIAs/Other | 33,295 | 28,575 | ||||||
Drawdown | 25,988 | 14,124 | ||||||
Credit Opportunity Funds | 2,029 | 1,206 | ||||||
European Principal Finance Funds | 7,050 | 5,468 | ||||||
Structured Credit Funds – FCI and SCRF | 8,099 | 4,317 | ||||||
Permanent Capital Vehicles – Credit | 131,604 | 129,831 | ||||||
Permanent Capital Vehicles – MidCap, AINV, AFT, AIF | 14,831 | 13,524 | ||||||
Permanent Capital Vehicles – MidCap | 8,771 | 8,599 | ||||||
Athene | 108,790 | 108,790 | ||||||
AtheneNon-Sub-Advised Assets | 85,575 | 85,575 | ||||||
Athora | 7,984 | 7,517 | ||||||
AthoraNon-Sub-Advised Assets | 4,952 | 4,485 | ||||||
Advisory | 7,065 | — |