Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 02, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Apollo Global Management LLC | |
Entity Central Index Key | 1,411,494 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | APO | |
Amendment Flag | false | |
Common Class A Shares | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 193,540,853 | |
Common Class B Shares | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and cash equivalents | $ 930,848 | $ 806,329 |
Restricted cash | 4,165 | 4,680 |
U.S. Treasury securities, at fair value | 198,900 | 0 |
Investments | 1,708,064 | 1,494,744 |
Other assets | 164,588 | 118,860 |
Carried interest receivable | 1,577,984 | 1,257,105 |
Due from related parties | 287,352 | 254,853 |
Deferred tax assets | 591,754 | 572,263 |
Goodwill | 88,852 | 88,852 |
Intangible assets, net | 19,153 | 22,721 |
Total Assets | 6,860,354 | 5,629,553 |
Liabilities: | ||
Accounts payable and accrued expenses | 79,062 | 57,465 |
Accrued compensation and benefits | 144,664 | 52,754 |
Deferred revenue | 155,081 | 174,893 |
Due to related parties | 643,401 | 638,126 |
Profit sharing payable | 710,873 | 550,148 |
Debt | 1,361,044 | 1,352,447 |
Other liabilities | 116,211 | 81,613 |
Total Liabilities | 4,268,371 | 3,762,025 |
Commitments and Contingencies (see note 14) | ||
Apollo Global Management, LLC shareholders’ equity: | ||
Preferred shares (11,000,000 and 0 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively) | 264,398 | 0 |
Additional paid in capital | 1,627,767 | 1,830,025 |
Accumulated deficit | (560,613) | (986,186) |
Accumulated other comprehensive loss | (2,061) | (8,723) |
Total Apollo Global Management, LLC shareholders’ equity | 1,329,491 | 835,116 |
Total Shareholders’ Equity | 2,591,983 | 1,867,528 |
Total Liabilities and Shareholders’ Equity | 6,860,354 | 5,629,553 |
Class A shares, no par value, unlimited shares authorized, 193,540,853 and 185,460,294 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | ||
Apollo Global Management, LLC shareholders’ equity: | ||
Class A shares, no par value, unlimited shares authorized, 192,756,044 and 185,460,294 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively Class B shares, no par value, unlimited shares authorized, 1 share issued and outstanding at June 30, 2017 and December 31, 2016 | 0 | 0 |
Class B shares, no par value, unlimited shares authorized, 1 share issued and outstanding at September 30, 2017 and December 31, 2016 | ||
Apollo Global Management, LLC shareholders’ equity: | ||
Class A shares, no par value, unlimited shares authorized, 192,756,044 and 185,460,294 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively Class B shares, no par value, unlimited shares authorized, 1 share issued and outstanding at June 30, 2017 and December 31, 2016 | 0 | 0 |
Non-Controlling Interests in Apollo Operating Group | ||
Apollo Global Management, LLC shareholders’ equity: | ||
Non-Controlling Interests | 1,112,756 | 942,349 |
Consolidated Entities | ||
Assets: | ||
Cash and cash equivalents held at consolidated funds | 10,195 | 7,335 |
Apollo Global Management, LLC shareholders’ equity: | ||
Non-Controlling Interests | 149,736 | 90,063 |
Consolidated Variable Interest Entities | ||
Assets: | ||
Cash and cash equivalents held at consolidated funds | 44,226 | 41,318 |
Investments, at fair value | 1,170,550 | 913,827 |
Other assets | 63,723 | 46,666 |
Liabilities: | ||
Debt, at fair value | 972,632 | 786,545 |
Other liabilities | $ 85,403 | $ 68,034 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Preferred stock, shares issued (in shares) | 11,000,000 | 0 |
Preferred stock, shares outstanding (in shares) | 11,000,000 | 0 |
Common stock, shares authorized (in shares) | Unlimited | Unlimited |
Common Class A Shares | ||
Shares issued (in shares) | 193,540,853 | 185,460,294 |
Shares outstanding (in shares) | 193,540,853 | 185,460,294 |
Common Class B Shares | ||
Shares issued (in shares) | 1 | 1 |
Shares outstanding (in shares) | 1 | 1 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Management fees from related parties | $ 301,443 | $ 274,313 | $ 852,291 | $ 775,171 |
Advisory and transaction fees from related parties, net | 16,209 | 29,801 | 54,905 | 102,699 |
Carried interest income from related parties | 346,580 | 199,617 | 833,459 | 407,134 |
Total Revenues | 664,232 | 503,731 | 1,740,655 | 1,285,004 |
Compensation and benefits: | ||||
Salary, bonus and benefits | 108,853 | 92,591 | 316,011 | 290,013 |
Equity-based compensation | 24,485 | 26,163 | 70,332 | 74,203 |
Profit sharing expense | 137,296 | 90,152 | 339,679 | 179,767 |
Total Compensation and Benefits | 270,634 | 208,906 | 726,022 | 543,983 |
Interest expense | 13,303 | 12,832 | 39,497 | 30,505 |
General, administrative and other | 68,149 | 58,566 | 189,918 | 187,285 |
Placement fees | 5,397 | 1,953 | 12,560 | 5,781 |
Total Expenses | 357,483 | 282,257 | 967,997 | 767,554 |
Other Income: | ||||
Net gains from investment activities | 68,932 | 17,746 | 102,936 | 50,287 |
Net gains from investment activities of consolidated variable interest entities | 845 | 800 | 11,085 | 2,817 |
Income from equity method investments | 47,488 | 23,213 | 102,877 | 64,356 |
Interest income | 1,504 | 1,192 | 2,929 | 3,073 |
Other income (loss), net | 25,387 | (40) | 44,776 | 485 |
Total Other Income | 144,156 | 42,911 | 264,603 | 121,018 |
Income before income tax provision | 450,905 | 264,385 | 1,037,261 | 638,468 |
Income tax provision | (16,542) | (29,667) | (54,926) | (62,508) |
Net Income | 434,363 | 234,718 | 982,335 | 575,960 |
Net income attributable to Non-Controlling Interests | (231,411) | (140,099) | (542,507) | (340,077) |
Net Income Attributable to Apollo Global Management, LLC | 202,952 | 94,619 | 439,828 | 235,883 |
Net income attributable to Preferred Shareholders | (4,383) | 0 | (9,155) | 0 |
Net Income Attributable to Apollo Global Management, LLC Class A Shareholders | $ 198,569 | $ 94,619 | $ 430,673 | $ 235,883 |
Distributions declared per Class A Share (USD per share) | $ 0.52 | $ 0.37 | $ 1.46 | $ 0.90 |
Net Income Per Class A Share: | ||||
Net Income Available to Class A Share – Basic (in dollars per share) | 1 | 0.50 | 2.19 | 1.24 |
Net Income Available to Class A Share – Diluted (USD per share) | $ 1 | $ 0.50 | $ 2.19 | $ 1.24 |
Weighted Average Number of Class A Shares Outstanding – Basic (in shares) | 192,882,082 | 184,438,515 | 190,014,240 | 183,602,982 |
Weighted Average Number of Class A Shares Outstanding – Diluted (in shares) | 192,882,082 | 184,438,515 | 190,014,240 | 183,602,982 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 434,363 | $ 234,718 | $ 982,335 | $ 575,960 |
Other Comprehensive Income, net of tax: | ||||
Currency translation adjustments, net of tax | 5,643 | 1,144 | 14,583 | 3,103 |
Net gain from change in fair value of cash flow hedge instruments, net of tax | 27 | 26 | 78 | 79 |
Net income on available-for-sale securities | 290 | 900 | 189 | 450 |
Total Other Comprehensive Income, net of tax | 5,960 | 2,070 | 14,850 | 3,632 |
Comprehensive Income | 440,323 | 236,788 | 997,185 | 579,592 |
Comprehensive Income attributable to Non-Controlling Interests | (236,410) | (140,644) | (550,695) | (341,539) |
Comprehensive Income Attributable to Apollo Global Management, LLC | $ 203,913 | $ 96,144 | $ 446,490 | $ 238,053 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Preferred Shares | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Apollo Global Management, LLC Shareholders’ Equity | Non-Controlling Interests in Consolidated Entities | Non-Controlling Interests in Apollo Operating Group | Common Class A Shares | Common Class A SharesCommon Stock | Common Class B SharesCommon Stock |
Balance, Beginning of Period at Dec. 31, 2015 | $ 1,388,981 | $ 2,005,509 | $ (1,348,384) | $ (7,620) | $ 649,505 | $ 86,561 | $ 652,915 | ||||
Balance, Beginning of Period (in shares) at Dec. 31, 2015 | 181,078,937 | 1 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dilution impact of issuance of Class A shares | 340 | 340 | 340 | ||||||||
Capital increase related to equity-based compensation | 53,910 | 53,910 | 53,910 | ||||||||
Capital contributions | 12,933 | 12,933 | |||||||||
Distributions | (377,021) | (172,095) | (172,095) | (10,555) | (194,371) | ||||||
Payments related to issuances of Class A shares for equity-based awards | (35,256) | 41 | (35,297) | (35,256) | |||||||
Payments related to issuances of Class A shares for equity-based awards (in shares) | 4,245,086 | ||||||||||
Repurchase of Class A Shares | (12,902) | (12,902) | (12,902) | ||||||||
Repurchase of Class A shares (in shares) | (954,447) | (954,447) | |||||||||
Exchange of AOG Units for Class A shares | 288 | 1,539 | 1,539 | (1,251) | |||||||
Exchange of AOG Units for Class A shares (in shares) | 374,223 | ||||||||||
Net income | 575,960 | 235,883 | 235,883 | 3,891 | 336,186 | ||||||
Currency translation adjustments, net of tax | 3,103 | 1,683 | 1,683 | 1,670 | (250) | ||||||
Net gain from change in fair value of cash flow hedge instruments | 79 | 37 | 37 | 42 | |||||||
Net income (loss) on available-for-sale securities | 450 | 450 | 450 | ||||||||
Balance, End of Period at Sep. 30, 2016 | 1,610,865 | 1,876,342 | (1,147,798) | (5,450) | 723,094 | 94,500 | 793,271 | ||||
Balance, End of Period (in shares) at Sep. 30, 2016 | 184,743,799 | 1 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Adoption of new accounting guidance | 22,901 | 22,901 | 22,901 | ||||||||
Balance, Beginning of Period at Dec. 31, 2016 | 1,867,528 | $ 0 | 1,830,025 | (986,186) | (8,723) | 835,116 | 90,063 | 942,349 | |||
Balance, Beginning of Period (in shares) at Dec. 31, 2016 | 185,460,294 | 1 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dilution impact of issuance of Class A shares | (295) | (295) | (295) | ||||||||
Equity issued in connection with Preferred shares offering | 264,398 | 264,398 | 264,398 | ||||||||
Capital increase related to equity-based compensation | 52,442 | 52,442 | 52,442 | ||||||||
Capital contributions | 43,758 | 43,758 | |||||||||
Distributions | (631,623) | (9,155) | (288,726) | (297,881) | (4,570) | (329,172) | |||||
Payments related to issuances of Class A shares for equity-based awards | (28,001) | (28,001) | (28,001) | ||||||||
Payments related to issuances of Class A shares for equity-based awards (in shares) | 2,096,389 | ||||||||||
Repurchase of Class A Shares | (6,903) | (6,903) | (6,903) | ||||||||
Repurchase of Class A shares (in shares) | (233,248) | (233,248) | |||||||||
Exchange of AOG Units for Class A shares | 10,593 | 41,224 | 41,224 | (30,631) | |||||||
Exchange of AOG Units for Class A shares (in shares) | 6,217,418 | ||||||||||
Net income | 982,335 | 9,155 | 430,673 | 439,828 | 8,967 | 533,540 | |||||
Currency translation adjustments, net of tax | 14,583 | 6,436 | 6,436 | 11,518 | (3,371) | ||||||
Net gain from change in fair value of cash flow hedge instruments | 78 | 37 | 37 | 41 | |||||||
Net income (loss) on available-for-sale securities | 189 | 189 | 189 | ||||||||
Balance, End of Period at Sep. 30, 2017 | $ 2,591,983 | $ 264,398 | $ 1,627,767 | $ (560,613) | $ (2,061) | $ 1,329,491 | $ 149,736 | $ 1,112,756 | |||
Balance, End of Period (in shares) at Sep. 30, 2017 | 193,540,853 | 1 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 982,335 | $ 575,960 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity-based compensation | 70,332 | 74,203 |
Depreciation and amortization | 15,241 | 14,139 |
Unrealized gains from investment activities | (107,803) | (50,084) |
Income from equity method investments | (102,877) | (64,356) |
Change in fair value of contingent obligations | 4,619 | 11,736 |
Deferred taxes, net | 49,817 | 52,184 |
Other non-cash amounts included in net income, net | 1,310 | (10,766) |
Cash flows due to changes in operating assets and liabilities: | ||
Carried interest receivable | (325,786) | (348,815) |
Due from related parties | (47,536) | (49,863) |
Accounts payable and accrued expenses | 21,597 | 24,306 |
Accrued compensation and benefits | 91,910 | 65,602 |
Deferred revenue | (17,285) | 29,168 |
Due to related parties | (12,776) | 68,726 |
Profit sharing payable | 179,703 | 168,741 |
Other assets and other liabilities, net | (14,409) | (8,082) |
Cash distributions of earnings from equity method investments | 41,335 | 17,079 |
Satisfaction of contingent obligation | (23,597) | (10,096) |
Apollo Fund and VIE related: | ||
Purchases of investments | (14,774) | (44,530) |
Net Cash Provided by Operating Activities | 667,484 | 573,171 |
Cash Flows from Investing Activities: | ||
Purchases of fixed assets | (5,929) | (4,921) |
Purchase of investments | (14,774) | (44,530) |
Purchase of U.S. Treasury securities | (198,868) | 0 |
Cash contributions to equity method investments | (116,233) | (188,572) |
Cash distributions from equity method investments | 80,360 | 68,685 |
Issuance of related party loans | (5,834) | (3,906) |
Repayment of related party loans | 17,700 | 0 |
Other investing activities | (626) | 919 |
Net Cash Used in Investing Activities | (244,204) | (172,325) |
Cash Flows from Financing Activities: | ||
Issuance of Preferred shares (net of issuance costs) | 264,398 | 0 |
Distributions to Preferred Shareholders | (9,155) | 0 |
Principal repayments of debt | (30) | (200,000) |
Issuance of debt | 0 | 532,706 |
Satisfaction of tax receivable agreement | (17,895) | 0 |
Purchase of Class A shares | (18,463) | (13,003) |
Payments related to issuances of Class A shares for RSUs | (28,001) | (35,297) |
Distributions paid | (288,726) | (172,095) |
Distributions paid to Non-Controlling Interests in Apollo Operating Group | (329,172) | (194,371) |
Other financing activities | (2,949) | (11,926) |
Net Cash Used in Financing Activities | (295,901) | (85,222) |
Net Increase in Cash and Cash Equivalents | 127,379 | 315,624 |
Cash and Cash Equivalents, Beginning of Period | 813,664 | 617,322 |
Cash and Cash Equivalents, End of Period | 941,043 | 932,946 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 32,207 | 20,045 |
Interest paid by consolidated variable interest entities | 9,026 | 13,911 |
Income taxes paid | 8,070 | 5,806 |
Supplemental Disclosure of Non-Cash Investing Activities: | ||
Non-cash contributions to equity method investments | 0 | 1,231 |
Non-cash distributions from equity method investments | (26,167) | (4,496) |
Non-cash purchases of other investments, at fair value | 25,091 | 0 |
Supplemental Disclosure of Non-Cash Financing Activities: | ||
Capital increases related to equity-based compensation | 52,442 | 53,910 |
Other non-cash financing activities | (296) | 364 |
Adjustments related to exchange of Apollo Operating Group units: | ||
Deferred tax assets | 46,539 | 1,807 |
Due to affiliates | (35,946) | (1,519) |
Additional paid in capital | (10,593) | (288) |
Non-Controlling Interest in Apollo Operating Group | 30,631 | 1,251 |
Consolidated Variable Interest Entities | ||
Apollo Fund and VIE related: | ||
Net realized and unrealized (gains) losses from investing activities and debt | (10,111) | 621 |
Change in cash held at consolidated variable interest entities | 2,157 | 4,139 |
Purchases of investments | (517,652) | (396,810) |
Proceeds from sale of investments | 385,035 | 422,922 |
Changes in other assets and other liabilities, net | 1,925 | (17,483) |
Cash Flows from Investing Activities: | ||
Purchase of investments | (517,652) | (396,810) |
Cash Flows from Financing Activities: | ||
Principal repayments of debt | (442,640) | 0 |
Issuance of debt | 534,595 | 0 |
Distributions paid to Non-Controlling Interests in consolidated entities | (347) | (4,133) |
Contributions from Non-Controlling Interests in consolidated entities | $ 42,484 | $ 12,897 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Apollo Global Management, LLC (“AGM”, together with its consolidated subsidiaries, the “Company” or “Apollo”) is a global alternative investment manager whose predecessor was founded in 1990. Its primary business is to raise, invest and manage private equity, credit and real assets funds as well as strategic investment accounts, on behalf of pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. For these investment management services, Apollo receives management fees generally related to the amount of assets managed, transaction and advisory fees and carried interest income related to the performance of the respective funds that it manages. Apollo has three primary business segments: • Private equity —primarily invests in control equity and related debt instruments, convertible securities and distressed debt investments; • Credit —primarily invests in non-control corporate and structured debt instruments including performing, stressed and distressed investments across the capital structure; and • Real assets —primarily invests in real estate equity for the acquisition and recapitalization of real estate assets, portfolios, platforms and operating companies, and real estate debt including first mortgage and mezzanine loans, preferred equity and commercial mortgage backed securities. Organization of the Company The Company was formed as a Delaware limited liability company on July 3, 2007 and completed a reorganization of its predecessor businesses on July 13, 2007 (the “2007 Reorganization”). The Company is managed and operated by its manager, AGM Management, LLC, which in turn is indirectly wholly-owned and controlled by Leon Black, Joshua Harris and Marc Rowan, its Managing Partners. As of September 30, 2017 , the Company owned, through six intermediate holding companies that include APO Corp., a Delaware corporation that is a domestic corporation for U.S. federal income tax purposes, APO Asset Co., LLC, a Delaware limited liability company that is a disregarded entity for U.S. federal income tax purposes, APO (FC), LLC, an Anguilla limited liability company that is treated as a corporation for U.S. federal income tax purposes, APO (FC II), LLC, an Anguilla limited liability company that is treated as a corporation for U.S. federal income tax purposes, APO UK (FC), Limited, a United Kingdom incorporated company that is treated as a corporation for U.S. federal income tax purposes, and APO (FC III), LLC, a Cayman Islands limited liability company (collectively, the “Intermediate Holding Companies”), 48.1% of the economic interests of, and operated and controlled all of the businesses and affairs of, the Apollo Operating Group through its wholly-owned subsidiaries. AP Professional Holdings, L.P., a Cayman Islands exempted limited partnership (“Holdings”), is the entity through which the Managing Partners and certain of the Company’s other partners (the “Contributing Partners”) indirectly beneficially own interests in each of the partnerships that comprise the Apollo Operating Group (“AOG Units”). As of September 30, 2017 , Holdings owned the remaining 51.9% of the economic interests in the Apollo Operating Group. The Company consolidates the financial results of the Apollo Operating Group and its consolidated subsidiaries. Holdings’ ownership interest in the Apollo Operating Group is reflected as a Non-Controlling Interest in the accompanying condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and instructions to the Quarterly Report on Form 10-Q. The condensed consolidated financial statements and these notes are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting only of normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the 2016 Annual Report. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities (“VIEs”) and for which the Company is considered the primary beneficiary, and certain entities which are not considered VIEs but which the Company controls through a majority voting interest. Intercompany accounts and transactions, if any, have been eliminated upon consolidation. Certain reclassifications, when applicable, have been made to the prior period’s condensed consolidated financial statements and notes to conform to the current period’s presentation and are disclosed accordingly. Consolidation The types of entities with which Apollo is involved generally include subsidiaries (e.g., general partners and management companies related to the funds the Company manages), entities that have all the attributes of an investment company (e.g., funds) and securitization vehicles (e.g., CLOs). Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity. Pursuant to the consolidation guidance, the Company first evaluates whether it holds a variable interest in an entity. Fees that are customary and commensurate with the level of services provided, and where the Company does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered a variable interest. Apollo factors in all economic interests including proportionate interests through related parties, to determine if such interests are considered a variable interest. As Apollo’s interests in many of these entities are solely through market rate fees and/or insignificant indirect interests through related parties, Apollo is not considered to have a variable interest in many of these entities and no further consolidation analysis is performed. For entities where the Company has determined that it does hold a variable interest, the Company performs an assessment to determine whether each of those entities qualify as a VIE. The determination as to whether an entity qualifies as a VIE depends on the facts and circumstances surrounding each entity and therefore certain of Apollo’s funds may qualify as VIEs under the variable interest model whereas others may qualify as voting interest entities (“VOEs”) under the voting interest model. The granting of substantive kick-out rights is a key consideration in determining whether a limited partnership or similar entity is a VIE and whether or not that entity should be consolidated. Under the variable interest model, Apollo consolidates those entities where it is determined that the Company is the primary beneficiary of the entity. The Company is determined to be the primary beneficiary when it has a controlling financial interest in the VIE, which is defined as possessing both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Apollo determines whether it is the primary beneficiary of a VIE at the time it becomes initially involved with the VIE and reconsiders that conclusion continuously. Investments and redemptions (either by Apollo, related parties of Apollo or third parties) or amendments to the governing documents of the respective entity may affect an entity’s status as a VIE or the determination of the primary beneficiary. Assets and liabilities of the consolidated VIEs are primarily shown in separate sections within the condensed consolidated statements of financial condition. Changes in the fair value of the consolidated VIEs’ assets and liabilities and related interest, dividend and other income and expenses are presented within net gains from investment activities of consolidated variable interest entities in the condensed consolidated statements of operations. The portion attributable to Non-Controlling Interests is reported within net income attributable to Non-Controlling Interests in the condensed consolidated statements of operations. For additional disclosures regarding VIEs, see note 4 . Under the voting interest model, Apollo consolidates those entities it controls through a majority voting interest. Apollo does not consolidate those VOEs in which substantive kick-out rights have been granted to the unrelated investors to either dissolve the fund or remove the general partner. Fair Value of Financial Instruments The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for the Company’s debt obligations (as described in note 9 ), Apollo’s financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value. See “Investments, at Fair Value” below. While Apollo’s valuations of portfolio investments are based on assumptions that Apollo believes are reasonable under the circumstances, the actual realized gains or losses will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may ultimately differ significantly from the assumptions on which the valuations were based. Financial instruments’ carrying values generally approximate fair value because of the short-term nature of those instruments or variable interest rates related to the borrowings. Fair Value Hierarchy U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: Level I - Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments included in Level I include listed equities and debt. The Company does not adjust the quoted price for these financial instruments, even in situations where the Company holds a large position and the sale of such position would likely deviate from the quoted price. Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments that are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives where the fair value is based on observable inputs. These financial instruments exhibit higher levels of liquid market observability as compared to Level III financial instruments. Level III - Pricing inputs are unobservable for the financial instrument and includes situations where there is little observable market activity for the financial instrument. The inputs into the determination of fair value may require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partner interests in corporate private equity and real assets funds, opportunistic credit funds, distressed debt and non-investment grade residual interests in securitizations and CDOs and CLOs where the fair value is based on observable inputs as well as unobservable inputs. When a security is valued based on broker quotes, the Company subjects those quotes to various criteria in making the determination as to whether a particular financial instrument would qualify for classification as Level II or Level III. These criteria include, but are not limited to, the number and quality of the broker quotes, the standard deviations of the observed broker quotes, and the percentage deviation from independent pricing services. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument when the fair value is based on unobservable inputs. Transfers between levels of the fair value hierarchy are recognized as of the end of the reporting period. Private Equity Investments The value of liquid investments in Apollo’s private equity funds, where the primary market is an exchange (whether foreign or domestic) is determined using period end market prices. Such prices are generally based on the close price on the date of determination. Valuation approaches used to estimate the fair value of investments in Apollo’s private equity funds that are less liquid include the market approach and the income approach. The market approach provides an indication of fair value based on a comparison of the subject company to comparable publicly traded companies and transactions in the industry. The market approach is driven more by current market conditions, including actual trading levels of similar companies and, to the extent available, actual transaction data of similar companies. Judgment is required by management when assessing which companies are similar to the subject company being valued. Consideration may also be given to such factors as the Company’s historical and projected financial data, valuations given to comparable companies, the size and scope of the Company’s operations, the Company’s strengths, weaknesses, expectations relating to the market’s receptivity to an offering of the Company’s securities, applicable restrictions on transfer, industry and market information and assumptions, general economic and market conditions and other factors deemed relevant. The income approach provides an indication of fair value based on the present value of cash flows that a business or security is expected to generate in the future. The most widely used methodology in the income approach is a discounted cash flow method. Inherent in the discounted cash flow method are assumptions of expected results, the determination of a terminal value and a calculated discount rate. Credit Investments The majority of investments in Apollo’s credit funds are valued based on quoted market prices and valuation models. Quoted market prices are valued based on the average of the “bid” and the “ask” quotes provided by multiple brokers wherever possible without any adjustments. Apollo will designate certain brokers to use to value specific securities. In order to determine the designated brokers, Apollo considers the following: (i) brokers with which Apollo has previously transacted, (ii) the underwriter of the security and (iii) active brokers indicating executable quotes. In addition, when valuing a security based on broker quotes wherever possible Apollo tests the standard deviation amongst the quotes received and the variance between the concluded fair value and the value provided by a pricing service. When broker quotes are not available Apollo considers the use of pricing service quotes or other sources to mark a position. When relying on a pricing service as a primary source, Apollo (i) analyzes how the price has moved over the measurement period, (ii) reviews the number of brokers included in the pricing service’s population and (iii) validates the valuation levels with Apollo’s pricing team and traders. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value utilizing a model based approach to determine fair value. Valuation approaches used to estimate the fair value of illiquid credit investments also may include the market approach and the income approach, as previously described above. The valuation approaches used consider, as applicable, market risks, credit risks, counterparty risks and foreign currency risks. Real Assets Investments The estimated fair value of commercial mortgage-backed securities (“CMBS”) in Apollo’s real assets funds is determined by reference to market prices provided by certain dealers who make a market in these financial instruments. Broker quotes are only indicative of fair value and may not necessarily represent what the funds would receive in an actual trade for the applicable instrument. Additionally, the loans held-for-investment are stated at the principal amount outstanding, net of deferred loan fees and costs for certain investments. The loans in Apollo’s real assets funds are evaluated for possible impairment on a quarterly basis. For Apollo’s real assets funds, valuations of non-marketable underlying investments are determined using methods that include, but are not limited to (i) discounted cash flow estimates or comparable analysis prepared internally, (ii) third party appraisals or valuations by qualified real estate appraisers and (iii) contractual sales value of investments/properties subject to bona fide purchase contracts. Methods (i) and (ii) also incorporate consideration of the use of the income, cost, or sales comparison approaches of estimating property values. Certain of the private equity, credit, and real assets funds may also enter into foreign currency exchange contracts, total return swap contracts, credit default swap contracts, and other derivative contracts, which may include options, caps, collars and floors. Foreign currency exchange contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. If securities are held at the end of this period, the changes in value are recorded in income as unrealized. Realized gains or losses are recognized when contracts are settled. Total return swap and credit default swap contracts are recorded at fair value as an asset or liability with changes in fair value recorded as unrealized appreciation or depreciation. Realized gains or losses are recognized at the termination of the contract based on the difference between the close-out price of the total return or credit default swap contract and the original contract price. Forward contracts are valued based on market rates obtained from counterparties or prices obtained from recognized financial data service providers. Valuation Process On a quarterly basis, Apollo utilizes valuation committees consisting of members from senior management, to review and approve the valuation results related to the investments of the funds it manages. For certain publicly traded vehicles managed by the Company, a review is performed by an independent board of directors. The Company also retains independent valuation firms to provide third-party valuation consulting services to Apollo, which consist of certain limited procedures that management identifies and requests them to perform. The limited procedures provided by the independent valuation firms assist management with validating their valuation results or determining fair value. The Company performs various back-testing procedures to validate their valuation approaches, including comparisons between expected and observed outcomes, forecast evaluations and variance analyses. However, because of the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material. Financial Instruments held by Consolidated VIEs The Company measures both the financial assets and financial liabilities of the consolidated CLOs in its condensed consolidated financial statements using the fair value of the financial assets of the consolidated CLOs, which are more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are measured at fair value and the financial liabilities are measured in consolidation as: (i) the sum of the fair value of the financial assets and the carrying value of any non-financial assets that are incidental to the operations of the CLOs less (ii) the sum of the fair value of any beneficial interests retained by the Company (other than those that represent compensation for services) and the Company’s carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interest retained by the Company) using a reasonable and consistent methodology. Under the measurement alternative, net income (loss) attributable to Apollo Global Management, LLC reflects the Company’s own economic interests in the consolidated CLOs including (i) changes in the fair value of the beneficial interests retained by the Company and (ii) beneficial interests that represent compensation for collateral management services. The consolidated VIEs hold investments that could be traded over-the-counter. Investments in securities that are traded on a securities exchange or comparable over-the-counter quotation systems are valued based on the last reported sale price at that date. If no sales of such investments are reported on such date, and in the case of over-the-counter securities or other investments for which the last sale date is not available, valuations are based on independent market quotations obtained from market participants, recognized pricing services or other sources deemed relevant, and the prices are based on the average of the “bid” and “ask” prices, or at ascertainable prices at the close of business on such day. Market quotations are generally based on valuation pricing models or market transactions of similar securities adjusted for security-specific factors such as relative capital structure priority and interest and yield risks, among other factors. When market quotations are not available, a model based approach is used to determine fair value. As previously noted, the Company measures the debt obligations of the consolidated CLOs on the basis of the fair value of the financial assets of the consolidated CLOs. Fair Value Option Apollo has elected the fair value option for the Company’s investment in Athene Holding, the assets and liabilities of certain of its consolidated VIEs (including CLOs), the Company’s U.S. Treasury securities with original maturities greater than three months when purchased, and certain of the Company’s other investments. Such election is irrevocable and is applied to financial instruments on an individual basis at initial recognition. Apollo has applied the fair value option for certain corporate loans, other investments and debt obligations held by the consolidated VIEs that otherwise would not have been carried at fair value. See notes 3 , 4 , and 5 for further disclosure on the investments in Athene Holding and financial instruments of the consolidated VIEs and other investments for which the fair value option has been elected. Cash and Cash Equivalents Apollo considers all highly liquid short-term investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include money market funds and U.S. treasury securities with original maturities of three months or less when purchased. Interest income from cash and cash equivalents is recorded in interest income in the condensed consolidated statements of operations. The carrying values of the money market funds and U.S. treasury securities of $428.1 million as of September 30, 2017 , which approximate their fair values due to their short-term nature and are categorized as Level I within the fair value hierarchy. Substantially all of the Company’s cash on deposit is in interest bearing accounts with major financial institutions and exceed insured limits. U.S. Treasury securities, at fair value U.S. Treasury securities, at fair value includes U.S. Treasury bills with original maturities greater than three months when purchased. These securities are recorded at fair value. Interest income on such securities is separately presented from the overall change in fair value and is recognized in interest income in the condensed consolidated statements of operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net gains from investment activities in the condensed consolidated statements of operations. Investments, at Fair Value Investments, at fair value represent investments of the consolidated funds, investments of the consolidated VIEs and certain financial instruments for which the fair value option has been elected. The unrealized gains and losses resulting from changes in the fair value of the consolidated VIEs are reflected as net gains from investment activities of consolidated variable interest entities in the condensed consolidated statements of operations. Net gains from investment activities in the condensed consolidated statements of operations include both realized gains and losses and the change in unrealized gains and losses in the Company’s investments, at fair value between the opening reporting date and the closing reporting date. Equity Method Investments For investments in entities over which the Company exercises significant influence but which do not meet the requirements for consolidation and for which the Company has not elected the fair value option, the Company uses the equity method of accounting, whereby the Company records its share of the underlying income or loss of such entities. The Company’s share of the underlying net income or loss of such entities is recorded in income from equity method investments in the condensed consolidated statements of operations. The carrying amounts of equity method investments are recorded in investments in the condensed consolidated statements of financial condition. As the underlying entities that the Company manages and invests in are, for U.S. GAAP purposes, primarily investment companies which reflect their investments at estimated fair value, the carrying value of the Company’s equity method investments in such entities approximates fair value. Revenues Revenues are reported in three separate categories that include (i) advisory and transaction fees from related parties, net, which relate to the investments of the funds the Company manages and may include individual monitoring agreements the Company has with the portfolio companies and debt investment vehicles of the private equity funds and credit funds it manages; (ii) management fees from related parties, which are based on committed capital, invested capital, net asset value, gross assets or as otherwise defined in the respective agreements; and (iii) carried interest income from related parties, which is normally based on the performance of the funds the Company manages that are subject to preferred return. Management Fees from Related Parties —Management fees for private equity, credit, and real assets funds are recognized in the period during which the related services are performed in accordance with the contractual terms of the related agreement, and are generally based upon (1) a percentage of the capital committed during the commitment period, and thereafter based on the remaining invested capital of unrealized investments, or (2) net asset value, gross assets or as otherwise defined in the respective agreements. Included in management fees are certain expense reimbursements where the Company is considered the principal under the agreements and is required to record the expense and related reimbursement revenue on a gross basis. Advisory and Transaction Fees from Related Parties, Net —Advisory and transaction fees, including directors’ fees, are recognized when the underlying services rendered are substantially completed in accordance with the terms of the transaction and advisory agreements. Additionally, during the normal course of business, the Company incurs certain costs related to certain transactions that are not consummated (“broken deal costs”). These costs (e.g., research costs, due diligence costs, professional fees, legal fees and other related items) are determined to be broken deal costs upon management’s decision to no longer pursue the transaction. In accordance with the related fund agreement, in the event the deal is deemed broken, all of the costs are reimbursed by the funds and then included as a component of the calculation of the Management Fee Offset (described below). If a deal is successfully completed, Apollo is reimbursed by the fund or fund’s portfolio company for all costs incurred and no offset is generated. As the Company acts as an agent for the funds it manages, any transaction costs incurred and paid by the Company on behalf of the respective funds relating to successful or broken deals are recorded net on the Company’s condensed consolidated statements of operations, and any receivable from the respective funds is recorded in due from related parties on the condensed consolidated statements of financial condition. Advisory and transaction fees from related parties, net, also includes underwriting fees. Underwriting fees include gains, losses and fees, net of syndicate expenses, arising from securities offerings in which one of the Company’s subsidiaries participates in the underwriter syndicate. Underwriting fees are recognized at the time the underwriting is completed and the income is reasonably assured and are included in the condensed consolidated statements of operations. Underwriting fees recognized but not received are recorded in other assets on the condensed consolidated statements of financial condition. As a result of providing advisory services to certain private equity and credit portfolio companies, Apollo is generally entitled to receive fees for transactions related to the acquisition, in certain cases, and disposition of portfolio companies as well as ongoing monitoring of portfolio company operations and directors’ fees. The amounts due from portfolio companies are recorded in due from related parties, which is discussed further in note 13 . Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage of such advisory and transaction fees, net of applicable broken deal costs (“Management Fee Offset”). Advisory and transaction fees from related parties are presented net of the Management Fee Offset in the condensed consolidated statements of operations. Carried Interest Income from Related Parties —Apollo is entitled to an incentive return that can normally amount to as much as 20% of the total returns on a fund’s capital, depending upon performance. Performance fees are assessed as a percentage of the investment performance of the funds. The carried interest income from related parties for any period is based upon an assumed liquidation of the fund’s net assets on the reporting date, and distribution of the net proceeds in accordance with the fund’s income allocation provisions. Carried interest receivable is presented separately in the condensed consolidated statements of financial condition. The carried interest income from related parties may be subject to reversal to the extent that the carried interest income recorded exceeds the amount due to the general partner based on a fund’s cumulative investment returns. When applicable, the accrual for potential repayment of previously received carried interest income, which is a component of due to related parties, represents all amounts previously distributed to the general partner that would need to be repaid to the Apollo funds if these funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual general partner obligation, however, would not become payable or realized until the end of a fund’s life. Carried interest income from related parties also includes a quarterly performance fee on the pre-incentive fee net investment income (“AINV Part I Fees”) of AINV. For purposes of the AINV Part I Fees, the net investment income of AINV includes interest income, dividend income and certain other income but excludes any realized and unrealized capital gains or losses. Such AINV Part I Fees are paid quarterly and are not subject to repayment. Deferred Revenue —Apollo earns management fees subject to the Management Fee Offset (described above). When advisory and transaction fees are earned by the management company, the Management Fee Offset reduces the management fee obligation of the fund. When the Company receives cash for advisory and transaction fees, a certain percentage of such advisory and/or transaction fees, as applicable, is allocated as a credit to reduce future management fees, otherwise payable by such fund. Such credit is recorded as deferred revenue in the condensed consolidated statements of financial condition. A portion of any excess advisory and transaction fees may be required to be returned to the limited partners of certain funds upon such fund’s liquidation. As the management fees earned by the Company are presented on a gross basis, any Management Fee Offsets calculated are presented as a reduction to advisory and transaction fees from related parties in the condensed consolidated statements of operations. Additionally, Apollo earns advisory fees pursuant to the terms of the advisory agreements with certain of the portfolio companies that are owned by the funds Apollo manages. When Apollo receives a payment from a portfolio company that exceeds the advisory fees earned at that point in time, the excess payment is recorded as deferred revenue in the condensed consolidated statements of financial condition. The advisory agreements with the portfolio companies vary in duration and the associated fees are received monthly, quarterly or annually. Deferred revenue is reversed and recognized as revenue over the period that the agreed upon services are performed. Under the terms of the funds’ partnership agreements, Apollo is normally required to bear organizational expenses over a set dollar amount and placement fees or costs in connection with the offering and sale of interests in the funds it manages to investors. The placement fees are payable to placement agents, who are independent third parties that assist in identifying potential investors, securing commitments to invest f |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS The following table represents Apollo’s investments: As of As of Investments, at fair value $ 852,350 $ 708,080 Equity method investments 855,714 786,664 Total Investments $ 1,708,064 $ 1,494,744 Investments, at Fair Value Investments, at fair value, consist of investments for which the fair value option has been elected and include the Company’s investment in Athene Holding, investments held by the Company’s consolidated funds, investments in debt of unconsolidated CLOs, and other investments held by the Company. See note 5 for further discussion regarding investments, at fair value. Net Gains from Investment Activities The following table presents the realized and net change in unrealized gains on investments, at fair value for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Realized gains on sales of investments $ 162 $ 472 $ 14 $ 375 Net change in unrealized gains due to changes in fair value (1) 68,770 17,274 102,922 49,912 Net gains from investment activities $ 68,932 $ 17,746 $ 102,936 $ 50,287 (1) Primarily relates to the Company’s investment in Athene Holding. See note 5 for further information regarding the Company’s investment in Athene Holding. Equity Method Investments Apollo’s equity method investments include its investments in the private equity, credit and real assets funds it manages, which are not consolidated, but in which the Company exerts significant influence. Apollo’s share of net income generated by these investments is recorded within income from equity method investments in the condensed consolidated statements of operations. Equity method investments as of September 30, 2017 and December 31, 2016 consisted of the following: Equity Held as of September 30, 2017 (5) December 31, 2016 (5) Private Equity (1)(2) $ 495,409 $ 428,581 Credit (1)(3) 330,918 327,012 Real Assets 29,387 31,071 Total equity method investments (4) $ 855,714 $ 786,664 (1) As of September 30, 2017 , equity method investments include Fund VIII (Private Equity) and MidCap (Credit) of $340.3 million and $79.9 million , respectively, representing an ownership percentage of 2.2% and 4.3% , respectively. As of December 31, 2016 , equity method investments include Fund VIII (Private Equity) and MidCap (Credit) of $260.9 million and $79.5 million , respectively, representing an ownership percentage of 2.2% and 4.3% , respectively. (2) The equity method investment in AP Alternative Assets, L.P. (“AAA”) was $51.8 million and $66.8 million as of September 30, 2017 and December 31, 2016 , respectively. The value of the Company’s investment in AAA was $51.9 million and $64.9 million based on the quoted market price as of September 30, 2017 and December 31, 2016 , respectively. (3) The equity method investment in AINV was $56.6 million and $58.6 million as of September 30, 2017 and December 31, 2016 , respectively. The value of the Company’s investment in AINV was $54.3 million and $52.1 million based on the quoted market price as of September 30, 2017 and December 31, 2016 , respectively. (4) Certain funds invest across multiple segments. The presentation in the table above is based on the classification of the majority of such funds’ investments. (5) Some amounts are included a quarter in arrears. As of September 30, 2017 and for the three and nine months ended September 30, 2017 , no equity method investment held by Apollo met the significance criteria as defined by the SEC. Although the following disclosure is not required by the significance criteria for the three and nine months ended September 30, 2017 , the Company chose to continue to include this information as it was disclosed in its 2016 Annual Report. The following table presents summarized financial information of Athene Holding for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 (1) 2016 2017 (1) 2016 (in millions) Statements of Operations Revenues $ 1,763 $ 1,272 $ 4,448 $ 3,039 Expenses 1,426 1,234 3,320 2,708 Income before income tax provision (benefit) 337 38 1,128 331 Income tax provision (benefit) 11 (88 ) 54 (73 ) Net income available to Athene Holding common shareholders $ 326 $ 126 $ 1,074 $ 404 (1) The financial statement information for the three and nine months ended September 30, 2017 is presented a quarter in arrears and is comprised of the financial information for the three and nine months ended June 30, 2017 , which represents the latest available financial information as of the date of this report. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES As described in note 2 , the Company consolidates entities that are VIEs for which the Company has been designated as the primary beneficiary. There is no recourse to the Company for the consolidated VIEs’ liabilities. Consolidated Variable Interest Entities Apollo has consolidated VIEs in accordance with the policy described in note 2 . Through its role as investment manager of these VIEs, the Company determined that Apollo has the power to direct the activities that most significantly impact the economic performance of these VIEs. Additionally, Apollo determined that its interests, both directly and indirectly from these VIEs, represent rights to returns that could potentially be significant to such VIEs. As a result, Apollo determined that it is the primary beneficiary and therefore should consolidate the VIEs. Consolidated CLOs Certain CLOs are consolidated by Apollo as the Company is considered to hold a controlling financial interest through direct and indirect interests in these CLOs exclusive of management and performance based fees received. Through its role as collateral manager of these VIEs, the Company determined that Apollo has the power to direct the activities that most significantly impact the economic performance of these VIEs. These CLOs were formed for the sole purpose of issuing collateralized notes to investors. The assets of these VIEs are primarily comprised of senior secured loans and the liabilities are primarily comprised of debt. The assets of these consolidated CLOs are not available to creditors of the Company. In addition, the investors in these consolidated CLOs have no recourse against the assets of the Company. The Company measures both the financial assets and the financial liabilities of the CLOs using the fair value of the financial assets as further described in note 2 . The Company has elected the fair value option for financial instruments held by its consolidated CLOs, which includes investments in loans and corporate bonds, as well as debt obligations and contingent obligations held by such consolidated CLOs. Other assets include amounts due from brokers and interest receivables. Other liabilities include payables for securities purchased, which represent open trades within the consolidated VIEs and primarily relate to corporate loans that are expected to settle within the next 60 days . From time to time, Apollo makes investments in certain consolidated CLOs denominated in foreign currencies. As of September 30, 2017 and December 31, 2016 , the Company held investments of $46.6 million and $41.3 million , respectively, in consolidated foreign currency denominated CLOs, which eliminate in consolidation. Net Gains from Investment Activities of Consolidated Variable Interest Entities The following table presents net gains from investment activities of the consolidated VIEs for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended For the Nine Months Ended 2017 (1) 2016 (1) 2017 (1) 2016 (1) Net gains (losses) from investment activities $ (272 ) $ 9,466 $ 9,244 $ 7,341 Net gains (losses) from debt 635 (7,745 ) 3,319 (9,182 ) Interest and other income 9,977 11,404 26,420 34,913 Interest and other expenses (9,495 ) (12,325 ) (27,898 ) (30,255 ) Net gains from investment activities of consolidated variable interest entities $ 845 $ 800 $ 11,085 $ 2,817 (1) Amounts reflect consolidation eliminations. Senior Secured Notes, Subordinated Notes and Secured Borrowings —Included within debt are amounts due to third-party institutions by the consolidated VIEs. The following table summarizes the principal provisions of the debt of the consolidated VIEs as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 As of December 31, 2016 Principal Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity in Years Principal Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity in Years Senior Secured Notes (2)(3) $ 794,748 1.68 % 12.4 $ 704,976 1.83 % 12.3 Subordinated Notes (2)(3) 98,602 N/A (1) 22.7 87,794 N/A (1) 19.2 Secured Borrowings (4) 90,461 3.00 % 9.5 — N/A N/A Total $ 983,811 $ 792,770 (1) The subordinated notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the VIEs. (2) The fair value of Senior Secured Notes, Subordinated Notes and Secured Borrowings as of September 30, 2017 and December 31, 2016 was $972.6 million and $786.5 million , respectively. (3) The debt at fair value of the consolidated VIEs is collateralized by assets of the consolidated VIEs and assets of one vehicle may not be used to satisfy the liabilities of another vehicle. As of September 30, 2017 and December 31, 2016 , the fair value of the assets of the consolidated VIEs was $1,278.5 million and $1,001.8 million , respectively. This collateral consisted of cash and cash equivalents, investments, at fair value, and other assets. (4) Secured borrowings consist of a consolidated VIE’s obligation through a repurchase agreement redeemable at maturity with a third party lender. The fair value of the secured borrowings as of September 30, 2017 was $90.5 million . The consolidated VIEs’ debt obligations contain various customary loan covenants. As of September 30, 2017 , the Company was not aware of any instances of non-compliance with any of these covenants. Variable Interest Entities Which are Not Consolidated The Company holds variable interests in certain VIEs which are not consolidated, as it has been determined that Apollo is not the primary beneficiary. The following table presents the carrying amounts of the assets and liabilities of the VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary as of September 30, 2017 and December 31, 2016 . In addition, the table presents the maximum exposure to losses relating to these VIEs. As of As of Assets: Cash $ 334,339 $ 231,922 Investments 7,389,027 7,253,872 Receivables 68,390 37,541 Total Assets $ 7,791,756 $ 7,523,335 Liabilities: Debt and other payables $ 3,089,584 $ 2,818,459 Total Liabilities $ 3,089,584 $ 2,818,459 Apollo Exposure (1) $ 282,240 $ 272,191 (1) Represents Apollo’s direct investment in those entities in which Apollo holds a significant variable interest and certain other investments. Additionally, cumulative carried interest income is subject to reversal in the event of future losses. The maximum amount of future reversal of carried interest income from all of Apollo’s funds, including those entities in which Apollo holds a significant variable interest, was $3.6 billion and $2.9 billion as of September 30, 2017 and December 31, 2016 , respectively, as discussed in note 14 . |
FAIR VALUE MEASUREMENTS OF FINA
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level as of September 30, 2017 and December 31, 2016 . As of September 30, 2017 Level I (1) Level II (1) Level III Total Cost Assets U.S. Treasury securities, at fair value $ 198,900 $ — $ — $ 198,900 $ 198,868 Investments, at fair value: Investments of consolidated Apollo funds 1,077 237 664 1,978 1,827 Other investments — — 64,726 64,726 62,464 Investment in Athene Holding (2) — 785,646 — 785,646 387,526 Total investments, at fair value 1,077 785,883 65,390 852,350 (7) 451,817 Investments of VIEs, at fair value (3) — 1,029,599 135,577 1,165,176 Investments of VIEs, valued using NAV — — — 5,374 Total investments of VIEs, at fair value — 1,029,599 135,577 1,170,550 Derivative assets — 439 — 439 Total Assets $ 199,977 $ 1,815,921 $ 200,967 $ 2,222,239 Liabilities Liabilities of consolidated Apollo funds $ 21 $ 596 $ — $ 617 Liabilities of VIEs, at fair value (3)(5) — 972,632 12,416 985,048 Contingent consideration obligations (6) — — 87,300 87,300 Derivative liabilities (4) — 1,439 — 1,439 Total Liabilities $ 21 $ 974,667 $ 99,716 $ 1,074,404 As of December 31, 2016 Level I (1) Level II (1) Level III Total Cost Assets Investments, at fair value: Investments of consolidated Apollo funds $ 3,336 $ 1,475 $ 567 $ 5,378 $ 5,463 Other investments — — 45,154 45,154 47,690 Investment in Athene Holding (2) — 657,548 — 657,548 387,526 Total investments, at fair value 3,336 659,023 45,721 708,080 (7) 440,679 Investments of VIEs, at fair value (3) — 816,167 92,474 908,641 Investments of VIEs, valued using NAV — — — 5,186 Total investments of VIEs, at fair value — 816,167 92,474 913,827 Derivative assets — 1,360 — 1,360 Total Assets $ 3,336 $ 1,476,550 $ 138,195 $ 1,623,267 Liabilities Liabilities of VIEs, at fair value (3)(5) $ — $ 786,545 $ 11,055 $ 797,600 Contingent consideration obligations (6) — — 106,282 106,282 Derivative liabilities (4) — 1,167 — 1,167 Total Liabilities $ — $ 787,712 $ 117,337 $ 905,049 (1) All Level I and Level II assets and liabilities were valued using third party pricing, with the exception of the investment in Athene Holding. (2) See note 13 for further disclosure regarding the investment in Athene Holding. (3) See note 4 for further disclosure regarding VIEs. (4) Derivative liabilities are presented as a component of Other liabilities in the condensed consolidated statements of financial condition. (5) Other liabilities include contingent obligations classified as Level III. (6) See note 14 for further disclosure regarding contingent consideration obligations. (7) See note 3 to our condensed consolidated financial statements for further detail regarding our investments at fair value and reconciliation to the condensed consolidated statements of financial condition. There were no transfers of financial assets or liabilities between Level I and Level II for the three and nine months ended September 30, 2017 and 2016 . The following tables summarize the changes in fair value in financial assets measured at fair value for which Level III inputs have been used to determine fair value for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 Investments of Consolidated Apollo Funds Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 624 $ 53,098 $ 170,666 $ 224,388 Purchases — 10,075 21,729 31,804 Sales of investments/distributions — — (21,119 ) (21,119 ) Net realized gains — — 154 154 Changes in net unrealized gains 40 18 1,791 1,849 Cumulative translation adjustment — 1,535 3,145 4,680 Transfer out of Level III — — (40,789 ) (40,789 ) Balance, End of Period $ 664 $ 64,726 $ 135,577 $ 200,967 Change in net unrealized gains included in net gains from investment activities related to investments still held at reporting date $ 40 $ 18 $ — $ 58 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — 1,330 1,330 For the Three Months Ended September 30, 2016 Investments of Consolidated Apollo Funds Other Investments Investment in Athene Holding Investments of Consolidated VIEs Total Balance, Beginning of Period $ 2,853 $ 44,753 $ 542,437 $ 112,690 $ 702,733 Purchases — 334 — 11,040 11,374 Sale of investments/distributions (1,361 ) — — (11,204 ) (12,565 ) Net realized gains 15 — — 86 101 Changes in net unrealized gains (losses) 107 939 16,392 (215 ) 17,223 Cumulative translation adjustment — 206 — 1,004 1,210 Transfer into Level III (1) — — — 8,755 8,755 Transfer out of Level III (1) (1,293 ) — — (15,622 ) (16,915 ) Balance, End of Period $ 321 $ 46,232 $ 558,829 $ 106,534 $ 711,916 Change in net unrealized gains included in net gains from investment activities related to investments still held at reporting date $ 51 $ 939 $ 16,392 $ — $ 17,382 Change in net unrealized losses included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — — (358 ) (358 ) (1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services. The following tables summarize the changes in fair value in financial assets measured at fair value for which Level III inputs have been used to determine fair value for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 Investments of Consolidated Apollo Funds Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 567 $ 45,154 $ 92,474 $ 138,195 Purchases — 14,774 107,969 122,743 Sale of investments/distributions (8 ) — (53,920 ) (53,928 ) Net realized gains (losses) (14 ) — 340 326 Changes in net unrealized gains (losses) 59 (386 ) 9,600 9,273 Cumulative translation adjustment — 5,184 10,334 15,518 Transfer into Level III (1) 60 — 9,569 9,629 Transfer out of Level III (1) — — (40,789 ) (40,789 ) Balance, End of Period $ 664 $ 64,726 $ 135,577 $ 200,967 Change in net unrealized gains (losses) included in net gains from investment activities related to investments still held at reporting date $ 45 $ (386 ) $ — $ (341 ) Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — 9,351 9,351 (1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services. For the Nine Months Ended September 30, 2016 Investments of Consolidated Apollo Funds Other Investments Investment in Athene Holding Investments of Consolidated VIEs Total Balance, Beginning of Period $ 1,634 $ 434 $ 510,099 $ 100,941 $ 613,108 Purchases 1,382 44,530 — 60,832 106,744 Sale of investments/distributions (1,803 ) — — (54,496 ) (56,299 ) Net realized gains (losses) (96 ) — — 3,132 3,036 Changes in net unrealized gains (losses) 224 528 48,730 (2,629 ) 46,853 Cumulative translation adjustment — 740 — 2,469 3,209 Transfer into Level III (1) 1,495 — — 30,173 31,668 Transfer out of Level III (1) (2,515 ) — — (33,888 ) (36,403 ) Balance, End of Period $ 321 $ 46,232 $ 558,829 $ 106,534 $ 711,916 Change in net unrealized gains included in net gains from investment activities related to investments still held at reporting date $ 56 $ 528 $ 48,730 $ — $ 49,314 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — — 441 441 (1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services. The following table summarizes the changes in fair value in financial liabilities measured at fair value for which Level III inputs have been used to determine fair value for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Balance, Beginning of Period $ 12,007 $ 86,900 $ 98,907 $ 11,671 $ 70,967 $ 82,638 Payments/extinguishment — (6,776 ) (6,776 ) — (3,109 ) (3,109 ) Changes in net unrealized losses (1) 409 7,176 7,585 136 13,361 13,497 Balance, End of Period $ 12,416 $ 87,300 $ 99,716 $ 11,807 $ 81,219 $ 93,026 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to liabilities still held at reporting date $ 409 $ — $ 409 $ 136 $ — $ 136 (1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations. The following table summarizes the changes in fair value in financial liabilities measured at fair value for which Level III inputs have been used to determine fair value for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Liabilities of Consolidated Apollo Funds Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Balance, Beginning of Period $ — $ 11,055 $ 106,282 $ 117,337 $ 11,411 $ 79,579 $ 90,990 Additions 97 — — 97 — — — Payments/extinguishment (94 ) — (23,597 ) (23,691 ) — (10,096 ) (10,096 ) Net realized gains (10 ) — — (10 ) — — — Changes in net unrealized losses (1) 7 1,361 4,615 5,983 396 11,736 12,132 Balance, End of Period $ — $ 12,416 $ 87,300 $ 99,716 $ 11,807 $ 81,219 $ 93,026 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to liabilities still held at reporting date $ — $ 1,361 $ — $ 1,361 $ 396 $ — $ 396 (1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations. The following tables summarize the quantitative inputs and assumptions used for financial assets and liabilities categorized as Level III under the fair value hierarchy as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average Financial Assets Investments of consolidated Apollo funds $ 664 Third party pricing (1) N/A N/A N/A Investments in other 47,602 Third party pricing (1) N/A N/A N/A 17,124 Other N/A N/A N/A Investments of consolidated VIEs: Corporate loans/bonds/CLO notes 13,548 Third party pricing (1) N/A N/A N/A Equity securities 122,029 Book value multiple Book value multiple 0.76x 0.76x Discounted cash flow Discount rate 12.8% 12.8% Total investments of consolidated VIEs 135,577 Total Financial Assets $ 200,967 Financial Liabilities Liabilities of consolidated VIEs 12,416 Other N/A N/A N/A Contingent consideration obligation 87,300 Discounted cash flow Discount rate 17.3% 17.3% Total Financial Liabilities $ 99,716 (1) These securities are valued primarily using unadjusted broker quotes. As of December 31, 2016 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average Financial Assets Investments of consolidated Apollo funds $ 567 Third party pricing (1) N/A N/A N/A Investments in other 45,154 Third party pricing (1) N/A N/A N/A Investments of consolidated VIEs: Bank debt term loans 4,701 Third party pricing (1) N/A N/A N/A Corporate loans/bonds/CLO notes 15,496 Third party pricing (1) N/A N/A N/A Equity securities 72,277 Transaction N/A N/A N/A Total investments of consolidated VIEs 92,474 Total Financial Assets $ 138,195 Financial Liabilities Liabilities of consolidated VIEs $ 11,055 Other N/A N/A N/A Contingent consideration obligation 106,282 Discounted cash flow Discount rate 13.0% - 17.3% 17.2% Total Financial Liabilities $ 117,337 (1) These securities are valued primarily using unadjusted broker quotes. Investment in Athene Holding As of September 30, 2017 and December 31, 2016 the fair value of Apollo’s investment in Athene Holding was estimated using the closing market price of Athene Holding shares of $53.84 and $47.99 , respectively, less a discount due to a lack of marketability (“DLOM”) of 7.0% and 9.5% , respectively, as applicable. The DLOM was derived based on the average remaining lock up restrictions on the shares of Athene Holding held by Apollo ( 14.3 months and 23.3 months as of September 30, 2017 and December 31, 2016 , respectively) and the estimated volatility in such shares of Athene Holding. Due to the limited trading history in Athene Holding shares, the historical share price volatility of a representative set of Athene Holding’s publicly traded insurance peers was calculated over a period equivalent to the remaining average lock up on the shares of Athene Holding held by Apollo and used as a proxy to estimate the projected volatility in Athene Holding’s shares. The fair value of Apollo’s investment in Athene Holding as of September 30, 2017 and December 31, 2016 after the application of the DLOM was estimated at a price of $50.19 and $43.43 per share, respectively. As of December 31, 2016, Apollo changed the valuation method used to value the opportunistic investment in Athene Holding from the U.S. GAAP book value multiple approach to the use of the closing market price of shares of Athene Holding, adjusted for a DLOM in order to reflect the post IPO sales restriction on such shares of Athene Holding. The DLOM is calculated based on the remaining length of such sales restrictions and the estimated market price volatility of the associated shares. Investments of Consolidated Apollo Funds The Company is the sole investor in the Apollo Senior Loan Fund, L.P. and Apollo Alternative Credit Long Short Fund L.P. and therefore consolidates the assets and liabilities of these funds. These funds invest in U.S. denominated senior secured loans, senior secured bonds and other income generating fixed-income investments. Amounts related to these consolidated funds are primarily presented in net gains from investment activities on the condensed consolidated statements of operations and in investments in the condensed consolidated statements of financial condition. Other Investments Other investments primarily consists of Apollo’s investments in debt of unconsolidated CLOs. The change in the fair value related to these investments is presented in net gains from investment activities on the condensed consolidated statements of operations. Consolidated VIEs Investments As of September 30, 2017 , the significant unobservable inputs used in the fair value measurement of the equity securities include the discount rate applied and the book value multiples applied in the valuation models. These unobservable inputs in isolation can cause significant increases or decreases in fair value. Specifically, when a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of an investment; conversely decreases in the discount rate can significantly increase the fair value of an investment. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks. When a comparable multiple model is used to determine fair value, the comparable multiples are generally multiplied by the underlying companies’ earnings before interest, taxes, depreciation and amortization (“EBITDA”) to establish the total enterprise value of the company. The comparable multiple is determined based on the implied trading multiple of public industry peers. Liabilities As of September 30, 2017 and December 31, 2016 , the debt obligations of the consolidated CLOs were measured on the basis of the fair value of the financial assets of the CLOs as the financial assets were determined to be more observable and, as a result, categorized as Level II in the fair value hierarchy. Contingent Consideration Obligations The significant unobservable input used in the fair value measurement of the contingent consideration obligations is the discount rate applied in the valuation models. This input in isolation can cause significant increases or decreases in fair value. Specifically, when a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of the contingent consideration obligations; conversely, a decrease in the discount rate can significantly increase the fair value of the contingent consideration obligations. The discount rate was based on the hypothetical cost of equity in connection with the acquisition of Stone Tower Capital, LLC (together with its related management companies, “Stone Tower”). See note 14 for further discussion of the contingent consideration obligations. |
CARRIED INTEREST RECEIVABLE
CARRIED INTEREST RECEIVABLE | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Carried Interest Receivable Balance [Abstract] | |
CARRIED INTEREST RECEIVABLE | CARRIED INTEREST RECEIVABLE Carried interest receivable from private equity, credit and real assets funds consisted of the following: As of September 30, 2017 As of December 31, 2016 Private Equity $ 1,128,460 $ 798,465 Credit 413,990 426,114 Real Assets 35,534 32,526 Total carried interest receivable $ 1,577,984 $ 1,257,105 The table below provides a roll-forward of the carried interest receivable balance for the nine months ended September 30, 2017 : Private Equity Credit Real Assets Total Carried interest receivable, January 1, 2017 $ 798,465 $ 426,114 $ 32,526 $ 1,257,105 Change in fair value of funds 651,808 165,987 10,585 828,380 Fund distributions to the Company (321,813 ) (178,111 ) (7,577 ) (507,501 ) Carried interest receivable, September 30, 2017 $ 1,128,460 $ 413,990 $ 35,534 $ 1,577,984 The change in fair value of funds excludes the reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. The general partner obligation is recognized based upon a hypothetical liquidation of a fund’s net assets as of the reporting date. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement of the fund. See note 13 for further disclosure regarding the general partner obligation. The timing of the payment of carried interest due to the general partner or investment manager varies depending on the terms of the applicable fund agreements. Generally, carried interest with respect to the private equity funds and certain credit and real assets funds is payable and is distributed to the fund’s general partner upon realization of an investment if the fund’s cumulative returns are in excess of the preferred return. For most credit funds, carried interest is payable based on realizations after the end of the relevant fund’s fiscal year or fiscal quarter, subject to certain return thresholds, or “high water marks,” having been achieved. |
PROFIT SHARING PAYABLE
PROFIT SHARING PAYABLE | 9 Months Ended |
Sep. 30, 2017 | |
Profit Sharing Payable [Abstract] | |
PROFIT SHARING PAYABLE | PROFIT SHARING PAYABLE Profit sharing payable consisted of the following: As of September 30, 2017 As of December 31, 2016 Private Equity $ 427,456 $ 268,170 Credit 269,233 268,855 Real Assets 14,184 13,123 Total profit sharing payable $ 710,873 $ 550,148 The table below provides a roll-forward of the profit sharing payable balance for the nine months ended September 30, 2017 : Private Equity Credit Real Assets Total Profit sharing payable, January 1, 2017 $ 268,170 $ 268,855 $ 13,123 $ 550,148 Profit sharing expense (1)(2) 266,881 73,909 3,680 344,470 Payments/other (107,595 ) (73,531 ) (2,619 ) (183,745 ) Profit sharing payable, September 30, 2017 $ 427,456 $ 269,233 $ 14,184 $ 710,873 (1) Includes (i) changes in amounts payable to employees and former employees entitled to a share of carried interest income in Apollo’s funds and (ii) changes to the fair value of the contingent consideration obligations recognized in connection with certain Apollo acquisitions. See notes 5 and 14 for further disclosure regarding the contingent consideration obligations. (2) The Company has recorded a receivable from the Contributing Partners, certain employees and former employees for the potential return of profit sharing distributions that would be due if certain funds were liquidated in the amount of $43.9 million and $39.3 million as of September 30, 2017 and December 31, 2016 , respectively. Profit sharing expense excludes the potential return of these profit sharing distributions. See note 13 for further discussion regarding the potential return of profit sharing distributions. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is treated as a partnership for income tax purposes and is therefore not subject to U.S. federal, state and local income taxes. Certain consolidated entities are, or are treated as, corporations for U.S. and non-U.S. tax purposes and therefore subject to U.S. federal, state, and local corporate income tax. Certain other subsidiaries of the Company are subject to New York City Unincorporated Business Tax (“NYC UBT”) attributable to the Company’s operations apportioned to New York City. In addition, certain non-U.S. subsidiaries of the Company are subject to income taxes in their local jurisdictions. The Company’s income tax provision totaled $16.5 million and $29.7 million for the three months ended September 30, 2017 and 2016 , respectively, and $54.9 million and $62.5 million for the nine months ended September 30, 2017 and 2016 , respectively. The Company’s effective tax rate was approximately 3.7% and 11.2% for the three months ended September 30, 2017 and 2016 , respectively, and 5.3% and 9.8% for the nine months ended September 30, 2017 and 2016 , respectively. Under U.S. GAAP, a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. Based upon the Company’s review of its federal, state, local and foreign income tax returns and tax filing positions, the Company determined that no unrecognized tax benefits for uncertain tax positions were required to be recorded. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record significant amounts of unrecognized tax benefits within the next twelve months. The Company’s primary jurisdictions in which it operates are the United States, New York State, New York City, California and the United Kingdom. There are no unremitted earnings with respect to the United Kingdom and other foreign entities due to the flow-through nature of these entities. In the normal course of business, the Company is subject to examination by federal and certain state, local and foreign tax authorities. With a few exceptions, as of September 30, 2017 , the Company’s U.S. federal, state, local and foreign income tax returns for the years 2013 through 2016 are open under the general statute of limitations provisions and therefore subject to examination. Currently, the Internal Revenue Service is examining the tax return of certain subsidiaries for the 2011 and 2012 tax years. The State and City of New York are examining certain subsidiaries’ tax returns for tax years 2011 to 2013. The Company has recorded a deferred tax asset for the future amortization of tax basis intangibles as a result of the 2007 Reorganization. The Company recorded additional deferred tax assets as a result of the step-up in tax basis of intangibles from subsequent exchanges of AOG Units for Class A shares. A related tax receivable agreement liability was recorded in due to related parties in the condensed consolidated statements of financial condition for the expected payments under the tax receivable agreement entered into by and among APO Corp., the Managing Partners, the Contributing Partners, and other parties thereto (as amended, the “tax receivable agreement”) (see note 13 ). The increases in the deferred tax asset less the related liability resulted in increases to additional paid in capital which were recorded in the condensed consolidated statements of changes in shareholders’ equity for the nine months ended September 30, 2017 and 2016 . The amortization period for these tax basis intangibles is 15 years and the deferred tax assets will reverse over the same period. Pursuant to an exchange agreement between Apollo, Holdings and the other parties thereto (as amended, the “Exchange Agreement”), the holders of the AOG Units (and certain permitted transferees thereof) may, upon notice and subject to the applicable vesting and minimum retained ownership requirements, transfer restrictions and other terms of the Exchange Agreement, exchange their AOG Units for the Company’s Class A shares on a one -for- one basis a limited number of times each year, subject to customary conversion rate adjustments for splits, distributions and reclassifications. Pursuant to the Exchange Agreement, a holder of AOG Units must simultaneously exchange one partnership unit in each of the Apollo Operating Group partnerships to effectuate an exchange for one Class A share. As a holder exchanges its AOG Units, the Company’s indirect interest in the Apollo Operating Group is correspondingly increased. The table below presents the impact to the deferred tax asset, tax receivable agreement liability and additional paid in capital related to the exchange of AOG Units for Class A shares during the nine months ended September 30, 2017 and 2016 . Exchange of AOG Units for Class A shares Increase in Deferred Tax Asset Increase in Tax Receivable Agreement Liability Increase to Additional Paid In Capital For the Nine Months Ended September 30, 2017 $ 46,539 $ 35,946 $ 10,593 For the Nine Months Ended September 30, 2016 $ 1,807 $ 1,519 $ 288 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following: As of September 30, 2017 As of December 31, 2016 Outstanding Balance Fair Value Annualized Weighted Average Interest Rate Outstanding Balance Fair Value Annualized Weighted Average Interest Rate 2013 AMH Credit Facilities - Term Facility (1) $ 299,627 $ 298,875 (3) 2.28 % $ 299,543 $ 298,500 (3) 1.82 % 2024 Senior Notes (1) 495,697 510,604 (4) 4.00 495,208 498,336 (4) 4.00 2026 Senior Notes (1) 495,550 519,618 (4) 4.40 495,165 497,923 (4) 4.40 2014 AMI Term Facility I (2) 16,199 16,199 (3) 2.00 14,449 14,449 (3) 2.00 2014 AMI Term Facility II (2) 18,283 18,283 (3) 1.75 16,306 16,306 (3) 1.75 2016 AMI Term Facility I (2) 20,050 20,050 (3) 1.75 17,852 17,852 (3) 1.75 2016 AMI Term Facility II (2) 15,638 15,638 (3) 2.00 13,924 13,924 (3) 2.00 Total Debt $ 1,361,044 $ 1,399,267 $ 1,352,447 $ 1,357,290 (1) Includes impact of any amortization of note discount, as applicable. Outstanding balance is presented net of unamortized debt issuance costs, which are presented in the following table: As of September 30, 2017 As of December 31, 2016 2013 AMH Credit Facilities - Term Facility $ 373 $ 457 2024 Senior Notes $ 3,637 $ 4,051 2026 Senior Notes $ 4,069 $ 4,420 (2) Apollo Management International LLP (“AMI”), a subsidiary of the Company, entered into the following five year credit agreements and proceeds from the borrowings were used to fund the Company’s investment in European CLOs it manages: Facility Date Loan Amount 2014 AMI Term Facility I July 3, 2014 € 13,686 2014 AMI Term Facility II December 9, 2014 € 15,475 2016 AMI Term Facility I January 18, 2016 € 16,970 2016 AMI Term Facility II June 22, 2016 € 13,236 (3) Fair value is based on obtained broker quotes and these notes would be classified as a Level III liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from independent pricing services. For instances where broker quotes are not available, a discounted cash flow method is used to obtain a fair value. (4) Fair value is based on obtained broker quotes and these notes would be classified as a Level II liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from independent pricing services. 2013 AMH Credit Facilities —On December 18, 2013, AMH and its subsidiaries and certain other subsidiaries of the Company (collectively, the “Borrowers”) entered into new credit facilities (the “2013 AMH Credit Facilities”) with JPMorgan Chase Bank, N.A. The 2013 AMH Credit Facilities provide for (i) a term loan facility to AMH (the “Term Facility”) that includes $750 million of the term loan from third-party lenders and $271.7 million of the term loan held by a subsidiary of the Company and (ii) a $500 million revolving credit facility (the “Revolver Facility”), in each case, with an original maturity date of January 18, 2019. On March 11, 2016, the maturity date of both the Term Facility and the Revolver Facility was extended by two years to January 18, 2021. The extension was determined to be a modification of the 2013 AMH Credit Facilities in accordance with U.S. GAAP. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus an applicable margin, and undrawn revolving commitments bear a commitment fee. In connection with the issuance of the 2024 Senior Notes and the 2026 Senior Notes (as defined below), $250 million of the proceeds and $200 million of the proceeds, respectively, were used to repay a portion of the Term Facility outstanding with third party lenders at par. The interest rate on the $300 million Term Facility as of September 30, 2017 was 2.45% and the commitment fee as of September 30, 2017 on the $500 million undrawn Revolver Facility was 0.125% . The $300 million carrying value of debt that is recorded on the condensed consolidated statements of financial condition at September 30, 2017 is the amount for which the Company is obligated to settle the 2013 AMH Credit Facilities. As of September 30, 2017 , the 2013 AMH Credit Facilities were guaranteed by AMH and its subsidiaries, Apollo Management, L.P., Apollo Capital Management, L.P., Apollo International Management, L.P., AAA Holdings, L.P., Apollo Principal Holdings I, L.P., Apollo Principal Holdings II, L.P., Apollo Principal Holdings III, L.P., Apollo Principal Holdings IV, L.P., Apollo Principal Holdings V, L.P., Apollo Principal Holdings VI, L.P., Apollo Principal Holdings VII, L.P., Apollo Principal Holdings VIII, L.P., Apollo Principal Holdings IX, L.P., Apollo Principal Holdings X, L.P., Apollo Principal Holdings XI, LLC, Apollo Principal Holdings XII, L.P., ST Holdings GP, LLC and ST Management Holdings, LLC. The 2013 AMH Credit Facilities contain affirmative and negative covenants which limit the ability of the Borrowers, the guarantors and certain of their subsidiaries to, among other things, incur indebtedness and create liens. Additionally, the 2013 AMH Credit Facilities contain financial covenants which require the Borrowers and their subsidiaries to maintain (1) at least $40 billion of Fee-Generating Assets Under Management and (2) a maximum total net leverage ratio of not more than 4.00 to 1.00 (subject to customary equity cure rights). The 2013 AMH Credit Facilities also contain customary events of default, including events of default arising from non-payment, material misrepresentations, breaches of covenants, cross default to material indebtedness, bankruptcy and changes in control of the Company. Borrowings under the Revolver Facility may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions. In addition, the Borrowers may incur incremental facilities in respect of the Revolver Facility and the Term Facility in an aggregate amount not to exceed $500 million plus additional amounts so long as the Borrowers are in compliance with a net leverage ratio not to exceed 3.75 to 1.00 . As of September 30, 2017 and December 31, 2016 , the Revolver Facility was undrawn. 2024 Senior Notes —On May 30, 2014, AMH issued $500 million in aggregate principal amount of its 4.000% Senior Notes due 2024 (the “2024 Senior Notes”), at an issue price of 99.722% of par. Interest on the 2024 Senior Notes is payable semi-annually in arrears on May 30 and November 30 of each year. The 2024 Senior Notes will mature on May 30, 2024. The discount will be amortized into interest expense on the condensed consolidated statements of operations over the term of the 2024 Senior Notes. The face amount of $500 million related to the 2024 Senior Notes is the amount for which the Company is obligated to settle the 2024 Senior Notes. 2026 Senior Notes —On May 27, 2016, AMH issued $500 million in aggregate principal amount of its 4.400% Senior Notes due 2026 (the “2026 Senior Notes”), at an issue price of 99.912% of par. Interest on the 2026 Senior Notes is payable semi-annually in arrears on May 27 and November 27 of each year. The 2026 Senior Notes will mature on May 27, 2026. The discount will be amortized into interest expense on the condensed consolidated statements of operations over the term of the 2026 Senior Notes. The face amount of $500 million related to the 2026 Senior Notes is the amount for which the Company is obligated to settle the 2026 Senior Notes. As of September 30, 2017 , the 2026 Senior Notes and the 2024 Senior Notes were guaranteed by Apollo Principal Holdings I, L.P., Apollo Principal Holdings II, L.P., Apollo Principal Holdings III, L.P., Apollo Principal Holdings IV, L.P., Apollo Principal Holdings V, L.P., Apollo Principal Holdings VI, L.P., Apollo Principal Holdings VII, L.P., Apollo Principal Holdings VIII, L.P., Apollo Principal Holdings IX, L.P., Apollo Principal Holdings X, L.P., Apollo Principal Holdings XI, LLC, Apollo Principal Holdings XII, L.P., AMH Holdings (Cayman), L.P. and any other entity that is required to become a guarantor of the notes under the terms of the indentures governing the 2026 Senior Notes and the 2024 Senior Notes (the “Indentures”). The Indentures include covenants that restrict the ability of AMH and, as applicable, the guarantors to incur indebtedness secured by liens on voting stock or profit participating equity interests of their respective subsidiaries or merge, consolidate or sell, transfer or lease assets. The Indentures also provide for customary events of default. The following table presents the interest expense incurred related to the Company’s debt for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Interest Expense: (1) 2013 AMH Term Facility $ 2,150 $ 1,696 $ 6,109 $ 6,408 2024 Senior Notes 5,163 5,192 15,489 15,572 2026 Senior Notes 5,628 5,630 16,885 7,744 AMI Term Facilities 362 314 1,014 781 Total Interest Expense $ 13,303 $ 12,832 $ 39,497 $ 30,505 (1) Debt issuance costs incurred in connection with the Term Facility, the 2024 Senior Notes and the 2026 Senior Notes are amortized into interest expense over the term of the debt arrangement. |
NET INCOME PER CLASS A SHARE
NET INCOME PER CLASS A SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
NET INCOME PER CLASS A SHARE | NET INCOME PER CLASS A SHARE U.S. GAAP requires use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for distributions declared on all classes of securities to arrive at undistributed earnings. During periods of undistributed losses, the undistributed loss is allocated to a participating security only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity. The remaining undistributed earnings are allocated to Class A shares and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Earnings or losses allocated to each class of security are then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding Class A shares and includes the number of additional Class A shares that would have been outstanding if the dilutive Class A shares had been issued. The numerator is adjusted for any changes in income or loss that would result if the dilutive Class A shares were issued. The table below presents basic and diluted net income per Class A share using the two-class method for the three and nine months ended September 30, 2017 and 2016 : Basic and Diluted For the Three Months Ended For the Nine Months Ended 2017 2016 2017 2016 Numerator: Net income attributable to Apollo Global Management, LLC Class A Shareholders $ 198,569 $ 94,619 $ 430,673 $ 235,883 Distributions declared on Class A shares (1) (100,641 ) (68,356 ) (279,307 ) (165,802 ) Distributions on participating securities (2) (3,265 ) (2,404 ) (9,419 ) (6,293 ) Earnings allocable to participating securities (3,218 ) (3) (849 ) (5,129 ) (2,637 ) Undistributed income attributable to Class A shareholders: Basic and Diluted $ 91,445 $ 23,010 $ 136,818 $ 61,151 Denominator: Weighted average number of Class A shares outstanding: Basic and Diluted 192,882,082 184,438,515 190,014,240 183,602,982 Net Income per Class A Share: Basic and Diluted (4) Distributed Income $ 0.52 $ 0.37 $ 1.46 $ 0.90 Undistributed Income 0.48 0.13 0.73 0.34 Net Income per Class A Share: Basic and Diluted $ 1.00 $ 0.50 $ 2.19 $ 1.24 (1) See note 12 for information regarding the quarterly distributions declared and paid during 2017 and 2016 . (2) Participating securities consist of vested and unvested RSUs that have rights to distributions and unvested restricted shares. (3) No allocation of undistributed losses was made to the participating securities as the holders do not have a contractual obligation to share in the losses of the Company with Class A shareholders. (4) For the three and nine months ended September 30, 2017 and 2016 , all of the classes of securities were determined to be anti-dilutive. The Company has granted RSUs that provide the right to receive, subject to vesting, Class A shares of Apollo Global Management, LLC, pursuant to the Company’s 2007 Omnibus Equity Incentive Plan (the “2007 Equity Plan”). Certain RSU grants to employees provide the right to receive distribution equivalents on vested RSUs on an equal basis any time a distribution is declared. The Company refers to these RSU grants as “Plan Grants.” For certain Plan Grants, distribution equivalents are paid in January of the calendar year next following the calendar year in which a distribution on Class A shares was declared. In addition, certain RSU grants to employees provide that both vested and unvested RSUs participate in distribution equivalents on an equal basis with the Class A shareholders any time a distribution is declared. The Company refers to these as “Bonus Grants.” Any distribution equivalent paid to an employee will not be returned to the Company upon forfeiture of the award by the employee. Vested and unvested RSUs that are entitled to non-forfeitable distribution equivalents qualify as participating securities and are included in the Company’s basic and diluted earnings per share computations using the two-class method. The holder of an RSU participating security would have a contractual obligation to share in the losses of the entity if the holder is obligated to fund the losses of the issuing entity or if the contractual principal or mandatory redemption amount of the participating security is reduced as a result of losses incurred by the issuing entity. Because the RSU participating securities do not have a mandatory redemption amount and the holders of the participating securities are not obligated to fund losses, neither the vested RSUs nor the unvested RSUs are subject to any contractual obligation to share in losses of the Company. Holders of AOG Units are subject to the transfer restrictions set forth in the agreements with the respective holders, and may a limited number of times each year, upon notice (subject to the terms of the Exchange Agreement), exchange their AOG Units for Class A shares on a one -for- one basis. An AOG Unit holder must exchange one unit in each of the Apollo Operating Group partnerships to effectuate an exchange for one Class A share. Apollo Global Management, LLC has one Class B share outstanding, which is held by BRH Holdings GP, Ltd. (“BRH”). The voting power of the Class B share is reduced on a one vote per one AOG Unit basis in the event of an exchange of AOG Units for Class A shares, as discussed above. The Class B share has no net income (loss) per share as it does not participate in Apollo’s earnings (losses) or distributions. The Class B share has no distribution or liquidation rights. The Class B share has voting rights on a pari passu basis with the Class A shares. The Class B share represented 54.3% and 60.7% of the total voting power of the Company’s shares entitled to vote as of September 30, 2017 and 2016 , respectively. The following table summarizes the anti-dilutive securities for the three and nine months ended September 30, 2017 and 2016 , respectively. For the Three Months Ended For the Nine Months Ended 2017 2016 2017 2016 Weighted average vested RSUs 210,642 873,973 554,881 1,780,166 Weighted average unvested RSUs 6,196,601 5,867,075 6,334,220 6,054,283 Weighted average unexercised options 210,420 222,920 214,587 222,920 Weighted average AOG Units outstanding 209,522,593 215,869,166 212,224,998 216,034,309 Weighted average unvested restricted shares 400,606 67,101 240,411 85,388 |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Equity-based awards granted to employees as compensation are measured based on the grant date fair value of the award. Equity-based awards that do not require future service (i.e., vested awards) are expensed immediately. Equity-based employee awards that require future service are expensed over the relevant service period. Equity-based awards granted to non-employees for services provided to related parties are remeasured to fair value at the end of each reporting period and expensed over the relevant service period. RSUs The Company grants RSUs under the 2007 Equity Plan. These grants are accounted for as a grant of equity awards in accordance with U.S. GAAP. The fair value of all grants is based on the grant date fair value, which considers the public share price of the Company’s Class A shares subject to certain discounts, as applicable. The following table summarizes the weighted average discounts for Plan Grants and Bonus Grants for the three and nine months ended September 30, 2017 and 2016 . For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Plan Grants: Discount for the lack of distributions until vested (1) 12.9 % 8.2 % 12.0 % 10.1 % Marketability discount for transfer restrictions (2) 4.0 % 5.8 % 3.5 % 5.8 % Bonus Grants: Marketability discount for transfer restrictions (2) 2.3 % 3.0 % 2.3 % 3.4 % (1) Based on the present value of a growing annuity calculation. (2) Based on the Finnerty Model calculation. The estimated total grant date fair value is charged to compensation expense on a straight-line basis over the vesting period, which for Plan Grants is generally up to six years, with the first installment vesting one year after grant and quarterly vesting thereafter, and for Bonus Grants is generally annual vesting over three years. The fair value of grants made during the nine months ended September 30, 2017 and 2016 was $32.3 million and $2.8 million , respectively. In addition, the Company provides for the vesting of RSUs when certain performance metrics have been achieved. In accordance with U.S. GAAP, equity-based compensation expense is recognized only when certain performance metrics are met or deemed probable. Accordingly, for the three and nine months ended September 30, 2017 , no equity-based compensation expense was recognized relating to these RSUs. The following table presents the forfeiture rate and equity-based compensation expense recognized for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Actual forfeiture rate 2.3 % 2.7 % 9.3 % 6.6 % Equity-based compensation $ 17,106 $ 16,724 $ 50,807 $ 52,564 The following table summarizes RSU activity for the nine months ended September 30, 2017 : Unvested Weighted Average Grant Date Fair Value Vested Total Number of RSUs Outstanding Balance at January 1, 2017 9,391,566 $ 15.80 2,752,455 12,144,021 (1) Granted 1,519,021 21.29 — 1,519,021 Forfeited (1,016,156 ) 17.80 — (1,016,156 ) Issued — 18.29 (3,285,664 ) (3,285,664 ) Vested (859,553 ) 17.29 859,553 — Balance at September 30, 2017 9,034,878 (2) $ 16.36 326,344 9,361,222 (1) (1) Amount excludes RSUs which have vested and have been issued in the form of Class A shares. (2) RSUs were expected to vest over the weighted average period of 2.1 years. Restricted Share Awards—Athene Holding The Company has granted Athene Holding restricted share awards to certain employees of the Company. Separately, Athene Holding has also granted restricted share awards to certain employees of the Company. Both awards are collectively referred to as the “AHL Awards”. Certain of the AHL Awards function similarly to options as they are exchangeable for Class A shares of Athene Holding upon payment of a conversion price and the satisfaction of certain other conditions. The awards granted are either subject to time-based vesting conditions that generally vest over three to five years or vest upon achieving certain metrics, such as attainment of certain rates of return and realized cash received by certain investors in Athene Holding upon sale of their shares. The Company records the AHL Awards in other assets and other liabilities in the condensed consolidated statements of financial condition. The fair value of the asset is amortized through equity-based compensation over the vesting period. The fair value of the liability is remeasured each period with any changes in fair value recorded in compensation expense in the condensed consolidated statements of operations. For AHL Awards granted by Athene Holding, compensation expense related to amortization of the asset is offset, with certain limited exceptions, by related management fees earned by the Company from Athene. The grant date fair value of the AHL Awards is based on the share price of Athene Holding, less discounts for transfer restrictions. The AHL Awards that function similarly to options were valued using a multiple-scenario model, which considers the price volatility of the underlying share price of Athene Holding, time to expiration and the risk-free rate, while the other awards were valued using the share price of Athene Holding less any discounts for transfer restrictions. The following table summarizes the management fees, equity-based compensation expense and actual forfeiture rates for the AHL Awards for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Management fees $ 2,393 $ 4,015 $ 4,531 $ 9,179 Equity-based compensation $ 3,528 $ 4,093 $ 6,983 $ 9,441 Actual forfeiture rate — % 0.4 % — % 0.8 % Equity-Based Compensation Allocation Equity-based compensation is allocated based on ownership interests. Therefore, the amortization of equity-based compensation is allocated to shareholders’ equity attributable to Apollo Global Management, LLC and the Non-Controlling Interests, which results in a difference in the amounts charged to equity-based compensation expense and the amounts credited to shareholders’ equity attributable to Apollo Global Management, LLC in the Company’s condensed consolidated financial statements. Below is a reconciliation of the equity-based compensation allocated to Apollo Global Management, LLC for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 Total Amount Non-Controlling Interest % in Apollo Operating Group Allocated to Non-Controlling Interest in Apollo Operating Group (1) Allocated to Apollo Global Management, LLC RSUs, share options and restricted share awards $ 54,901 — % $ — $ 54,901 AHL Awards 6,983 51.9 3,624 3,359 Other equity-based compensation awards 8,448 51.9 4,385 4,063 Total equity-based compensation $ 70,332 8,009 62,323 Less other equity-based compensation awards (2) (8,009 ) (9,881 ) Capital increase related to equity-based compensation $ — $ 52,442 For the Nine Months Ended September 30, 2016 Total Amount Non-Controlling Interest % in Apollo Operating Group Allocated to Non-Controlling Interest in Apollo Operating Group (1) Allocated to Apollo Global Management, LLC RSUs, share options and restricted share awards $ 55,260 — % $ — $ 55,260 AHL Awards 9,441 53.9 5,093 4,348 Other equity-based compensation awards 9,502 53.9 5,127 4,375 Total equity-based compensation $ 74,203 10,220 63,983 Less other equity-based compensation awards (2) (10,220 ) (10,073 ) Capital increase related to equity-based compensation $ — $ 53,910 (1) Calculated based on average ownership percentage for the period considering Class A share issuances during the period. (2) Includes equity-based compensation reimbursable by certain funds and distributions related to forfeited RSUs. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
EQUITY | EQUITY Class A Shares Class A shares represent limited liability company interests in the Company. Holders of Class A shares are entitled to participate in distributions from the Company on a pro rata basis. Class A shareholders do not elect the Company’s manager or the manager’s executive committee and have only limited voting rights. Issuance of Class A Shares During the nine months ended September 30, 2017 and 2016 , the Company issued Class A shares in settlement of vested RSUs. The Company has generally allowed holders of vested RSUs and exercised share options to settle their tax liabilities by reducing the number of Class A shares issued to them, which the Company refers to as “net share settlement.” Additionally, the Company has generally allowed holders of share options to settle their exercise price by reducing the number of Class A shares issued to them at the time of exercise by an amount sufficient to cover the exercise price. The net share settlement results in a liability for the Company and a corresponding accumulated deficit adjustment. The table below summarizes the reduction of Class A shares to be issued to employees in connection with net share settlements under the 2007 Equity Plan and issuances of Class A shares in settlement of vested RSUs and share options for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Reduction of Class A shares issued (1) 1,196,549 2,407,275 Class A shares issued 2,097,249 4,246,760 Gross value of shares (2) $ 76,803 $ 96,437 (1) Cash paid for tax liabilities associated with net share settlement was $28.0 million and $35.3 million for the nine months ended September 30, 2017 and 2016 , respectively. (2) Based on the closing price of a Class A share at the time of issuance. Share Repurchase Plan In February 2016, Apollo adopted a plan to repurchase up to $250 million in the aggregate of its Class A shares, including up to $150 million in the aggregate of its outstanding Class A shares through a share repurchase program and up to $100 million through net share settlement of equity-based awards granted under the 2007 Equity Plan. During the nine months ended September 30, 2017 , the Company repurchased and canceled 233,248 Class A shares for $6.9 million . During the nine months ended September 30, 2016 , the Company repurchased and canceled 954,447 Class A shares for $12.9 million . Preferred Share Issuance On March 7, 2017, Apollo issued 11,000,000 6.375% Series A Preferred shares (the “Preferred shares”) for gross proceeds of $275.0 million , or $264.4 million net of issuance costs. When, as and if declared by the manager of Apollo, distributions on the Preferred shares will be payable quarterly on March 15, June 15, September 15 and December 15 of each year, beginning on June 15, 2017, at a rate per annum equal to 6.375% . Distributions on the Preferred shares are discretionary and non-cumulative. Subject to certain exceptions, unless distributions have been declared and paid or declared and set apart for payment on the Preferred shares for a quarterly distribution period, during the remainder of that distribution period, Apollo may not declare or pay or set apart payment for distributions on any Class A shares and any other equity securities that the Company may issue in the future ranking, as to the payment of distributions, junior to the Preferred shares (“Junior Shares”) and Apollo may not repurchase any Junior Shares. These restrictions are not applicable during the initial distribution period, which is the period from March 7, 2017, the original issue date, to but excluding June 15, 2017. The Preferred shares may be redeemed at Apollo’s option, in whole or in part, at any time on or after March 15, 2022 at a price of $25.00 per Preferred share, plus declared and unpaid distributions to, but excluding, the redemption date, without payment of any undeclared distributions. Holders of Preferred shares will have no right to require the redemption of the Preferred shares and there is no maturity date. If a certain change of control event or a certain tax redemption event occurs prior to March 15, 2022, the Preferred shares may be redeemed at Apollo’s option, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such change of control event or such tax redemption event, as applicable, at a price of $25.25 per Preferred share, plus declared and unpaid distributions to, but excluding, the redemption date, without payment of any undeclared distributions. If (i) a change of control event occurs (whether before, on or after March 15, 2022) and (ii) Apollo does not give notice prior to the 31st day following the change of control event to redeem all the outstanding Preferred shares, the distribution rate per annum on the Preferred shares will increase by 5.00% , beginning on the 31st day following such change of control event. The Preferred shares are not convertible into Class A shares and have no voting rights, except in limited circumstances as provided in the Company’s limited liability company agreement. In connection with the issuance of the Preferred shares, certain Apollo Operating Group entities issued for the benefit of Apollo a series of preferred units with economic terms that mirror those of the Preferred shares. On August 2, 2017, Apollo declared a cash distribution of $0.398438 per Series A Preferred share. The distributions on the Series A Preferred shares were $4.4 million and $9.2 million for the three and nine months ended September 30, 2017 , respectively. Distributions In addition to other distributions such as payments pursuant to the tax receivable agreement, the table below presents information regarding the quarterly distributions which were made at the sole discretion of the manager of the Company during 2017 and 2016 (in millions, except per share data): Distribution Declaration Date Distribution per Class A Share Distribution Payment Date Distribution to Class A Shareholders Distribution to Non-Controlling Interest Holders in the Apollo Operating Group Total Distributions from Apollo Operating Group Distribution Equivalents on Participating Securities February 3, 2016 $ 0.28 February 29, 2016 $ 51.4 $ 60.5 $ 111.9 $ 2.1 May 6, 2016 0.25 May 31, 2016 46.0 54.0 100.0 1.8 August 3, 2016 0.37 August 31, 2016 68.4 79.9 148.3 2.4 October 28, 2016 0.35 November 30, 2016 64.9 75.4 140.3 2.1 For the year ended December 31, 2016 $ 1.25 $ 230.7 $ 269.8 $ 500.5 $ 8.4 February 3, 2017 $ 0.45 February 28, 2017 $ 84.2 $ 97.0 $ 181.2 $ 2.9 April 13, 2017 (1) — April 13, 2017 — 20.5 20.5 — April 28, 2017 0.49 May 31, 2017 94.5 102.9 197.4 3.3 August 2, 2017 0.52 August 31, 2017 100.6 108.8 209.4 3.2 For the nine months ended September 30, 2017 $ 1.46 $ 279.3 $ 329.2 $ 608.5 $ 9.4 (1) On April 13, 2017, the Company made a $0.10 per AOG Unit pro rata distribution to the Non-Controlling Interest holders in the Apollo Operating Group in connection with a payment made under the tax receivable agreement. See note 13 for more information regarding the tax receivable agreement. Non-Controlling Interests The table below presents equity interests in Apollo’s consolidated, but not wholly-owned, subsidiaries and funds. Net income and comprehensive income attributable to Non-Controlling Interests consisted of the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Net income (loss) attributable to Non-Controlling Interests in consolidated entities: Interest in management companies and a co-investment vehicle (1) $ 1,637 $ 260 $ 3,264 $ 4,804 Other consolidated entities (589 ) (482 ) 5,703 (913 ) Net income (loss) attributable to Non-Controlling Interests in consolidated entities $ 1,048 $ (222 ) $ 8,967 $ 3,891 Net income attributable to Non-Controlling Interests in the Apollo Operating Group: Net income $ 434,363 $ 234,718 $ 982,335 $ 575,960 Net (income) loss attributable to Non-Controlling Interests in consolidated entities (1,048 ) 222 (8,967 ) (3,891 ) Net income after Non-Controlling Interests in consolidated entities 433,315 234,940 973,368 572,069 Adjustments: Income tax provision (2) 16,542 29,667 54,926 62,508 NYC UBT and foreign tax benefit (3) (2,595 ) (4,419 ) (7,014 ) (11,715 ) Net income in non-Apollo Operating Group entities 16 66 18 85 Net income attributable to Preferred Shareholders (4,383 ) — (9,155 ) — Total adjustments 9,580 25,314 38,775 50,878 Net income after adjustments 442,895 260,254 1,012,143 622,947 Weighted average ownership percentage of Apollo Operating Group 52.0 % 53.9 % 52.7 % 54.0 % Net income attributable to Non-Controlling Interests in Apollo Operating Group $ 230,363 $ 140,321 $ 533,540 $ 336,186 Net Income attributable to Non-Controlling Interests $ 231,411 $ 140,099 $ 542,507 $ 340,077 Other comprehensive income attributable to Non-Controlling Interests 4,999 545 8,188 1,462 Comprehensive Income Attributable to Non-Controlling Interests $ 236,410 $ 140,644 $ 550,695 $ 341,539 (1) Reflects the remaining interest held by certain individuals who receive an allocation of income from certain of the credit funds managed by Apollo. (2) Reflects all taxes recorded in our condensed consolidated statements of operations. Of this amount, U.S. federal, state, and local corporate income taxes attributable to APO Corp. are added back to income of the Apollo Operating Group before calculating Non-Controlling Interests as the income allocable to the Apollo Operating Group is not subject to such taxes. (3) Reflects NYC UBT and foreign taxes that are attributable to the Apollo Operating Group and its subsidiaries related to its operations in the U.S. as partnerships and in non-U.S. jurisdictions as corporations. As such, these amounts are considered in the income attributable to the Apollo Operating Group. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES | RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES Management fees, transaction and advisory fees and reimbursable expenses from the funds the Company manages and their portfolio companies are included in due from related parties in the condensed consolidated statements of financial condition. The Company also typically facilitates the payment of certain operating costs incurred by the funds that it manages as well as their related parties. These costs are normally reimbursed by such funds and are included in due from related parties. Due from related parties and due to related parties are comprised of the following: As of As of Due from Related Parties: Due from private equity funds $ 17,883 $ 19,089 Due from portfolio companies 40,028 34,339 Due from credit funds 136,856 112,516 Due from Contributing Partners, employees and former employees 66,344 72,305 Due from real assets funds 26,241 16,604 Total Due from Related Parties $ 287,352 $ 254,853 Due to Related Parties: Due to Managing Partners and Contributing Partners $ 524,593 $ 506,542 Due to private equity funds 43,059 56,880 Due to credit funds 75,463 66,859 Due to real assets funds 286 281 Distributions payable to employees — 7,564 Total Due to Related Parties $ 643,401 $ 638,126 Tax Receivable Agreement and Other Subject to certain restrictions, each of the Managing Partners and Contributing Partners has the right to exchange their vested AOG Units for the Company’s Class A shares. Certain Apollo Operating Group entities have made an election under Section 754 of the U.S. Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which will result in an adjustment to the tax basis of the assets owned by the Apollo Operating Group at the time of the exchange. These exchanges will result in increases in tax deductions that will reduce the amount of tax that APO Corp. will otherwise be required to pay in the future. The tax receivable agreement provides for the payment to the Managing Partners and Contributing Partners of 85% of the amount of cash savings, if any, in U.S. federal, state, local and foreign income taxes that APO Corp. would realize as a result of the increases in tax basis of assets that resulted from the 2007 Reorganization and exchanges of AOG Units for Class A shares. APO Corp. retains the benefit from the remaining 15% of actual cash tax savings. If the Company does not make the required annual payment on a timely basis as outlined in the tax receivable agreement, interest is accrued on the balance until the payment date. These payments are expected to occur approximately over the next 15 years . In April 2017, Apollo made a $17.9 million cash payment pursuant to the tax receivable agreement resulting from the realized tax benefit for the 2016 tax year. Additionally, in connection with this payment, the Company made a corresponding pro rata distribution of $20.5 million ( $0.10 per AOG Unit) to the Non-Controlling Interest holders in the Apollo Operating Group. Due from Contributing Partners, Employees and Former Employees As of September 30, 2017 and December 31, 2016 , due from Contributing Partners, Employees and Former Employees includes various amounts due to the Company including employee loans and return of profit sharing distributions. As of September 30, 2017 and December 31, 2016 , the balance included interest-bearing employee loans receivable of $15.3 million and $26.1 million , respectively. The outstanding principal amount of the loans as well as all accrued and unpaid interest is required to be repaid at the earlier of the eighth anniversary of the date of the relevant loan or at the date of the relevant employee’s resignation from the Company. The Company recorded a receivable from the Contributing Partners and certain employees and former employees for the potential return of profit sharing distributions that would be due if certain funds were liquidated as of September 30, 2017 and December 31, 2016 of $43.9 million and $39.3 million , respectively. Indemnity Carried interest income from certain funds that the Company manages can be distributed to the Company on a current basis, but is subject to repayment by the subsidiary of the Apollo Operating Group that acts as general partner of the fund in the event that certain specified return thresholds are not ultimately achieved. The Managing Partners, Contributing Partners and certain other investment professionals have personally guaranteed, subject to certain limitations, the obligation of these subsidiaries in respect of this general partner obligation. Such guarantees are several and not joint and are limited to a particular Managing Partner’s or Contributing Partner’s distributions. Pursuant to an existing shareholders agreement, the Company has agreed to indemnify each of the Company’s Managing Partners and certain Contributing Partners against all amounts that they pay pursuant to any of these personal guarantees in favor of certain funds that the Company manages (including costs and expenses related to investigating the basis for or objecting to any claims made in respect of the guarantees) for all interests that the Company’s Managing Partners and Contributing Partners have contributed or sold to the Apollo Operating Group. Accordingly, in the event that the Company’s Managing Partners, Contributing Partners and certain investment professionals are required to pay amounts in connection with a general partner obligation for the return of previously made distributions, the Company will be obligated to reimburse the Company’s Managing Partners and certain Contributing Partners for the indemnifiable percentage of amounts that they are required to pay even though the Company did not receive the certain distribution to which that general partner obligation related. The Company recorded an indemnification liability of $10.2 million and $5.9 million , respectively, as of September 30, 2017 and December 31, 2016 . Due to Private Equity Funds Based upon a hypothetical liquidation of certain of the private equity funds the Company manages, as of September 30, 2017 and December 31, 2016 , the Company has recorded a general partner obligation to return previously distributed carried interest income, which represents amounts due to these funds. There was a general partner obligation to return previously distributed carried interest income of $42.2 million and $56.0 million accrued as of September 30, 2017 and December 31, 2016 , respectively. The actual determination and any required payment of a general partner obligation would not take place until the final disposition of the fund’s investments based on contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund. Due to Credit Funds Based upon a hypothetical liquidation of certain of the credit funds the Company manages, as of September 30, 2017 and December 31, 2016 , the Company has recorded a general partner obligation to return previously distributed carried interest income, which represents amounts due to these funds. As such, there was a general partner obligation to return previously distributed carried interest income of $69.3 million and $60.6 million accrued as of September 30, 2017 and December 31, 2016 , respectively. The actual determination and any required payment of a general partner obligation would not take place until the final disposition of the fund’s investments based on contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund. Athene Athene Holding was founded in 2009 to capitalize on favorable market conditions in the dislocated life insurance sector. Athene Holding, through its subsidiaries, is a leading retirement services company that issues, reinsures and acquires retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. The products and services offered by Athene include fixed and fixed indexed annuity products; reinsurance services offered to third-party annuity providers; and institutional products, such as funding agreements. Athene Holding became an effective registrant under the Exchange Act on December 9, 2016. Athene Holding currently trades on the New York Stock Exchange (NYSE) under the symbol “ATH”. The Company provides asset management and advisory services to Athene, including asset allocation services, direct asset management services, asset and liability matching management, mergers and acquisitions, asset diligence hedging and other asset management services. The Company, through its consolidated subsidiary Athene Asset Management, or AAM, earns 0.40% per year on all assets that it manages in accounts owned by Athene in the U.S. and Bermuda or in accounts supporting reinsurance ceded to U.S. and Bermuda subsidiaries of Athene Holding by third-party insurers (the “Athene North American Accounts”) up to $65.846 billion (the level of assets in the Athene North American Accounts as of December 31, 2016) and 0.30% per year on all assets in excess of $65.846 billion , respectively, subject to certain discounts and exceptions. The Company, through its consolidated subsidiary, AAME, provides investment advisory services to Athene with respect to its German group companies. Such German group companies are currently subsidiaries of AGER, a strategic platform established to acquire or reinsure blocks of insurance business in the German and broader European life insurance market. Apollo receives a gross advisory fee of 0.10% per annum on the assets of Athene’s German group companies that it advises, with certain limited exceptions. The Company, through AAM, provides sub-advisory services with respect to a portion of the assets in the Athene North American Accounts. In addition, Apollo, through AAME, sub-advises certain assets of a German subsidiary of Athene (such assets, together with the assets of Athene’s other German group companies collectively, the “Athene European Accounts”). From time to time, Athene also invests in funds and investment vehicles that Apollo manages. The Company refers to such assets which are invested directly as “Athene Assets Directly Invested.” The Company broadly refers to “Athene Sub-Advised” AUM as those assets in the Athene North American Accounts which the Company explicitly sub-advises as well as Athene Assets Directly Invested. The Company broadly refers to “AGER Sub-Advised” AUM as those assets in the Athene European Accounts which the Company explicitly sub-advises as well as those assets in the Athene European Accounts which are invested directly in funds and investment vehicles Apollo manages. With limited exceptions, the sub-advisory fee arrangements between the Company and Athene and the fee arrangements with respect to Athene Assets Directly Invested are presented in the following table: As of Athene North American Accounts sub-advised by AAM (1) : Assets up to $10.0 billion 0.40 % Assets between $10.0 billion to $12.4 billion 0.35 % Assets between $12.4 billion to $16.0 billion 0.40 % Assets in excess of $16.0 billion 0.35 % Athene European Accounts sub-advised by AAME 0.35 % Athene Assets Directly Invested (2) 0% to 1.75% (1) The sub-advisory fees with respect to the assets in the Athene North American Accounts are in addition to the fee earned by the Company described above. (2) With respect to Athene Assets Directly Invested, Apollo earns carried interest of 0% to 20% in addition to the fees presented above. The fees set forth above with respect to the Athene Assets Directly Invested, and the carried interest that Apollo earns on such assets, are in addition to the fees described above, with certain limited exceptions. Apollo, as general partner of AAA Investments, is generally entitled to a carried interest equal to 20% of the realized returns (net of related expenses, including borrowing costs) on the investments of AAA Investments, except that Apollo is not entitled to receive any carried interest with respect to the shares of Athene Holding that were acquired (and not in satisfaction of prior commitments to buy such shares) by AAA Investments in the contribution of certain assets by AAA to Athene in October 2012. Apollo may elect to receive payment of carried interest receivable from AAA Investments in cash or in common shares of Athene Holding (valued at the fair market value); and if Apollo elects to receive payment of such carried interest in cash, then common shares of Athene Holding shall be distributed to Apollo and immediately sold by Apollo to pay for such carried interest in cash. The following table presents the carried interest income earned from AAA Investments: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Carried interest income from AAA Investments, net (1) $ 14.5 $ 5.5 $ 27.0 $ 16.5 (1) Net of related profit sharing expense. The following table presents the revenues earned in aggregate from Athene and AGER: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Revenues earned in aggregate from Athene and AGER, net (1) $ 181.0 $ 111.7 $ 434.2 $ 322.6 (1) Consisting of management fees, sub-advisory fees, carried interest income from Athene and AGER (net of related profit sharing expense) and changes in the market value of the Athene Holding shares owned directly by Apollo. These amounts exclude the deferred revenue recognized as management fees associated with the vesting of AHL Awards granted to employees of Apollo as further described in note 11 . The following table presents carried interest receivable and profit sharing payable from AAA Investments: As of As of Carried interest receivable $ 187,106 $ 229,829 Profit sharing payable 53,689 80,579 The Company’s economic ownership interest in Athene Holding is comprised of the following: As of (1) As of (1) Indirect interest in Athene Holding: Interest in AAA 2.2 % 2.2 % Plus: Interest in AAA Investments 0.1 % 0.1 % Total Interest in AAA and AAA Investments 2.3 % 2.3 % Multiplied by: AAA Investments’ interest in Athene Holding 26.2 % 39.4 % Indirect interest in Athene Holding 0.5 % 0.9 % Plus: Direct interest in Athene Holding 8.3 % 8.0 % Total interest in Athene Holding 8.8 % 8.9 % (1) Ownership interest percentages are based on approximate share count as of the reporting date. AAA Investments Credit Agreement On April 30, 2015, Apollo entered into a revolving credit agreement with AAA Investments (“AAA Investments Credit Agreement”). Under the terms of the AAA Investments Credit Agreement, the Company shall make available to AAA Investments one or more advances at the discretion of AAA Investments in the aggregate amount not to exceed a balance of $10.0 million at an applicable rate of LIBOR plus 1.5% . The Company receives an annual commitment fee of 0.125% on the unused portion of the loan. As of September 30, 2017 and December 31, 2016 , $4.0 million had been advanced by the Company and remained outstanding on the AAA Investments Credit Agreement. Regulated Entities Apollo Global Securities, LLC (“AGS”) is a registered broker dealer with the SEC and is a member of the Financial Industry Regulatory Authority, subject to the minimum net capital requirements of the SEC. AGS was in compliance with these requirements at September 30, 2017 . From time to time, this entity is involved in transactions with related parties of Apollo, including portfolio companies of the funds Apollo manages, whereby AGS earns underwriting and transaction fees for its services. Other Transactions The Company recognized $6.2 million of other income in the condensed consolidated statement of operations from the assignment of a CLO collateral management agreement to a related party during the three months ended September 30, 2017 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Investment Commitments— As a limited partner, general partner and manager of the Apollo funds, Apollo had unfunded capital commitments as of September 30, 2017 and December 31, 2016 of $1.5 billion and $0.6 billion , respectively. Debt Covenants— Apollo’s debt obligations contain various customary loan covenants. As of September 30, 2017 , the Company was not aware of any instances of non-compliance with the financial covenants contained in the documents governing the Company’s debt obligations. Guarantees— Apollo entered into an agreement to guarantee 20% of a consolidated VIE’s outstanding secured borrowings of $90.5 million with a third party lending institution. The amount guaranteed by Apollo as of September 30, 2017 was $18.1 million . Litigation and Contingencies— Apollo is, from time to time, party to various legal actions arising in the ordinary course of business including claims and lawsuits, reviews, investigations or proceedings by governmental and self-regulatory agencies regarding its business. Various state attorneys general and federal and state agencies have initiated industry-wide investigations into the use of placement agents in connection with the solicitation of investments, particularly with respect to investments by public pension funds. Certain affiliates of Apollo have received subpoenas and other requests for information from various government regulatory agencies and investors in Apollo’s funds, seeking information regarding the use of placement agents. California Public Employees’ Retirement System (“CalPERS”) announced on October 14, 2009, that it had initiated a special review of placement agents and related issues. The report of the CalPERS’ Special Review was issued on March 14, 2011. That report does not allege any wrongdoing on the part of Apollo or its affiliates. Apollo is continuing to cooperate with all such investigations and other reviews. In addition, on May 6, 2010, the California Attorney General filed a civil complaint against Alfred Villalobos and his company, Arvco Capital Research, LLC (“Arvco”) (a placement agent that Apollo has used) and Federico Buenrostro Jr., the former CEO of CalPERS, alleging conduct in violation of certain California laws in connection with CalPERS’s purchase of securities in various funds managed by Apollo and another asset manager. Apollo is not a party to the civil lawsuit and the lawsuit does not allege any misconduct on the part of Apollo. Likewise, on April 23, 2012, the SEC filed a lawsuit alleging securities fraud on the part of Arvco, as well as Messrs. Buenrostro and Villalobos, in connection with their activities concerning certain CalPERS investments in funds managed by Apollo. This lawsuit also does not allege wrongdoing on the part of Apollo, and alleges that Apollo was defrauded by Arvco, Villalobos, and Buenrostro. On March 14, 2013, the United States Department of Justice unsealed an indictment against Messrs. Villalobos and Buenrostro alleging, among other crimes, fraud in connection with those same activities; again, Apollo is not accused of any wrongdoing and in fact is alleged to have been defrauded by the defendants. The criminal action was set for trial in a San Francisco federal court in July 2014, but was put on hold after Mr. Buenrostro pleaded guilty on July 11, 2014. As part of Mr. Buenrostro’s plea agreement, he admitted to taking cash and other bribes from Mr. Villalobos in exchange for several improprieties, including attempting to influence CalPERS’ investing decisions and improperly preparing disclosure letters to satisfy Apollo’s requirements. There is no suggestion that Apollo was aware that Mr. Buenrostro had signed the letters with a corrupt motive. The government has indicated that they will file new charges against Mr. Villalobos incorporating Mr. Buenrostro’s admissions. On August 7, 2014, the government filed a superseding indictment against Mr. Villalobos asserting additional charges. Trial had been scheduled for February 23, 2015, but Mr. Villalobos passed away on January 13, 2015. Additionally, on April 15, 2013, Mr. Villalobos, Arvco and related entities (the “Arvco Debtors”) brought a civil action in the United States Bankruptcy Court for the District of Nevada (the “Bankruptcy Court”) against Apollo. The action is related to the ongoing bankruptcy proceedings of the Arvco Debtors. This action alleges that Arvco served as a placement agent for Apollo in connection with several funds associated with Apollo, and seeks to recover purported fees the Arvco Debtors claim Apollo has not paid them for a portion of Arvco’s placement agent services. In addition, the Arvco Debtors allege that Apollo has interfered with the Arvco Debtors’ commercial relationships with third parties, purportedly causing the Arvco Debtors to lose business and to incur fees and expenses in the defense of various investigations and litigations. The Arvco Debtors also seek compensation from Apollo for these alleged lost profits and fees and expenses. The Arvco Debtors’ complaint asserts various theories of recovery under the Bankruptcy Code and common law. Apollo denies the merit of all of the Arvco Debtors’ claims and will vigorously contest them. The Bankruptcy Court had stayed this action pending the result in the criminal case against Mr. Villalobos but lifted the stay on May 1, 2015; in light of Mr. Villalobos’s death, the criminal case was dismissed. On August 25, 2016, Christina Lovato, in her capacity as the Chapter 7 Trustee for the Arvco Debtors, filed an amended complaint. On March 20, 2017, the court granted Apollo’s motion to dismiss the equitable claims asserted in the amended complaint, leaving just two breach of contract claims remaining. On October 20, 2017, Apollo moved for summary judgment as to the trustee’s remaining claims and a counterclaim by Apollo that seeks indemnification for attorneys’ fees and expenses. No estimate of possible loss, if any, can be made at this time. On June 18, 2014, BOKF N.A. (the “First Lien Trustee”), the successor indenture trustee under the indenture governing the First Lien Notes issued by Momentive Performance Materials, Inc. (“Momentive”), commenced a lawsuit in the Supreme Court for the State of New York, New York County against AGM and members of an ad hoc group of Second Lien Noteholders (including, but not limited to, Euro VI (BC) S.a.r.l.). The First Lien Trustee amended its complaint on July 2, 2014 (the “First Lien Intercreditor Action”). In the First Lien Intercreditor Action, the First Lien Trustee seeks, among other things, a declaration that the defendants violated an intercreditor agreement entered into between holders of the First Lien Notes and holders of the second lien notes. On July 16, 2014, the successor indenture trustee under the indenture governing the 1.5 Lien Notes (the “1.5 Lien Trustee,” and, together with the First Lien Trustee, the “Indenture Trustees”) filed an action in the Supreme Court of the State of New York, New York County that is substantially similar to the First Lien Intercreditor Action (the “1.5 Lien Intercreditor Action,” and, together with the First Lien Intercreditor Action, the “Intercreditor Actions”). AGM subsequently removed the Intercreditor Actions to federal district court, and the Intercreditor Actions were automatically referred to the Bankruptcy Court adjudicating the Momentive chapter 11 bankruptcy cases. The Indenture Trustees then filed motions with the Bankruptcy Court to remand the Intercreditor Actions back to the state court (the “Remand Motions”). On September 9, 2014, the Bankruptcy Court denied the Remand Motions. On August 15, 2014, the defendants in the Intercreditor Actions (including AGM) filed a motion to dismiss the 1.5 Lien Intercreditor Action and a motion for judgment on the pleadings in the First Lien Intercreditor Action (the “Dismissal Motions”). On September 30, 2014, the Bankruptcy Court granted the Dismissal Motions. In its order granting the Dismissal Motions, the Bankruptcy Court gave the Indenture Trustees until mid-November 2014 to move to amend some, but not all, of the claims alleged in their respective complaints. On November 14, 2014, the Indenture Trustees moved to amend their respective complaints pursuant to the Bankruptcy Court’s order (the “Motions to Amend”). On January 9, 2015, the defendants filed their oppositions to the Motions to Amend. On January 16, 2015, the Bankruptcy Court denied the Motions to Amend (the “Dismissal Order”), but gave the Indenture Trustees until March 2, 2015 to seek to amend their respective complaints. On March 2, 2015, the First Lien Trustee filed a motion seeking to amend its complaint. On April 10, 2015, the defendants, including AGM and Euro VI (BC) S.a.r.l., filed an opposition to the First Lien Trustee’s motion to amend. Instead of moving again to amend its complaint, the 1.5 Lien Trustee chose to appeal the Dismissal Order (the “1.5 Lien Appeal”). On March 30, 2015, the 1.5 Lien Trustee filed its Statement of Issues and Designation of Record on Appeal. On March 31, 2015, because the legal issues presented in the 1.5 Lien Appeal are substantially similar to those presented in the First Lien Intercreditor Action, the parties in the 1.5 Lien Appeal submitted a joint stipulation and proposed order to the District Court staying the briefing schedule on the 1.5 Lien Appeal pending the outcome of the First Lien Trustee’s most recent motion to amend. On April 13, 2015, the Defendants filed their Counter-Designation of the Record on Appeal in the 1.5 Lien Appeal. On May 8, 2015, the Bankruptcy Court denied the motion to amend filed on March 2, 2015 by the First Lien Trustee. On May 27, 2015, the First Lien Trustee filed a notice of appeal from the orders of the Bankruptcy Court dismissing the First Lien Intercreditor Action and denying the First Lien Trustee’s motions to amend (the “First Lien Appeal”). On June 2, 2015, the First Lien Trustee filed its Statement of Issues and Designation of Record on Appeal. On June 24, 2015, the defendants filed their Counter-Designation of the Record on Appeal in the First Lien Appeal. On July 31, 2015, the 1.5 Lien Trustee sent a letter to the federal district court hearing the 1.5 Lien Appeal asking the court to consolidate the 1.5 Lien Appeal with the First Lien Appeal which had been assigned to a different judge (the “Consolidation Request”). On April 8, 2016, the court granted the Consolidation Request. On May 20, 2016, the Indenture Trustees filed their opening appellate brief. The Appellees filed their response brief on July 14, 2016, and the Indenture Trustees filed their reply brief on August 5, 2016. On October 2, 2017, the court stayed the Intercreditor Actions pending a decision by the U.S. Court of Appeals for the Second Circuit in an appeal concerning the Momentive chapter 11 bankruptcy cases. On October 20, 2017, the Second Circuit issued its ruling in the appeal concerning the Momentive chapter 11 bankruptcy cases, but no further proceedings have been held in the Intercreditor Actions. Apollo is unable at this time to assess a potential risk of loss. In addition, Apollo does not believe that AGM is a proper defendant in these actions. As at September 30, 2017, there still were several pending actions concerning transactions related to Caesars Entertainment Corporation (“Caesars Entertainment”), Caesars Entertainment Operating Company, Inc. (“CEOC”) and certain of their respective subsidiaries. However, on October 6, 2017 all of the conditions precedent to the effectiveness of the Plan (as defined below in A.) were fulfilled and the Plan became effective. As a result, the cases referred to below in B., C., D., F., G. and H. have been dismissed with prejudice (the case referred to below in E. had previously been dismissed) and the release of claims running in favor of the Apollo Released Parties (as defined below in A.) have become effective. The descriptions of the cases set forth below are as at September 30, 2017 and are subject to this post-September 30, 2017 update. A. In re: Caesars Entertainment Operating Company, Inc. bankruptcy proceedings, No. 15-01145 (N.D. Ill. Bankr.) (the “Illinois Bankruptcy Action”). On January 17, 2017, an order was entered in the Illinois Bankruptcy Action confirming a plan of reorganization for CEOC and its debtor subsidiaries (the “Plan”) which, inter alia, grants broad releases to Apollo and others. The Plan is likely to become effective in the third quarter of 2017 after the conditions to its effectiveness have been satisfied. On the effective date of the Plan (the “Plan Effective Date”), the Apollo Released Parties (as defined below) will be released from the claims in the WSFS Action, the UMB Action, the Trilogy Action, the Danner Action, the BOKF Action, the UMB SDNY Action, the Wilmington Trust Action and the CEOC Action (each as defined below). • Background: On January 12, 2015, three holders of CEOC second lien notes filed an involuntary bankruptcy petition against CEOC in the United States Bankruptcy Court for the District of Delaware (the “Delaware Bankruptcy Action”). On January 15, 2015, CEOC and certain of its affiliates (collectively the “Debtors”) filed the Illinois Bankruptcy Action under Chapter 11 in the Northern District of Illinois. On February 2, 2015, the court in the Delaware Bankruptcy Action ordered that all bankruptcy proceedings relating to the Debtors should take place in the Illinois Bankruptcy Action. The Illinois Bankruptcy Court held an evidentiary hearing to determine whether the Debtors’ petition date was January 12, 2015 or January 15, 2015; this motion has not yet been ruled on by the Illinois Bankruptcy Court, and pursuant to the Plan this motion will be dismissed as moot. Certain of the Debtors’ creditors indicated in filings with the Illinois Bankruptcy Court that an investigation into certain acts and transactions that predated the Debtors’ bankruptcy filing could lead to claims against a number of parties, including AGM and certain of its affiliates. No such claims were brought by the Debtors’ prepetition creditors against Apollo in the Illinois Bankruptcy Action. On May 13, 2016, the Official Committee of Second Priority Noteholders (the “Second Lien Noteholders Committee”) filed a motion seeking an Order granting it standing to commence, prosecute and settle claims on behalf of the Debtors’ estates (the “Standing Motion”). The proposed complaint filed with the Standing Motion names Apollo and many others as defendants (see also “H” below). On or about September 27, 2016, Caesars Entertainment and the Debtors announced that they had received confirmations from representatives of the Debtors’ major creditor groups of those groups’ support for a term sheet that describes the key economic terms of a proposed consensual chapter 11 plan for the Debtors. On October 4, 2016, the Debtors filed the Third Amended Joint Plan of Reorganization which subsequently was amended and became the Plan. As part of the Plan, and in connection with the merger between Caesars Entertainment and Caesars Acquisition Company (“CAC”), funds managed by Apollo will not retain any of their equity interests in the merged Caesars Entertainment on account of their pre-merger Caesars Entertainment shares. Such equity interests would, instead, be for the benefit of CEOC’s creditors. Funds managed by Apollo will, however, retain their equity interests in the merged Caesars Entertainment on account of their CAC shares. The voting deadline on the Plan was November 21, 2016, and approximately 90% in dollar amount of the Debtors’ creditors voted in favor of the Plan. On October 17, 2016, the Bankruptcy Court granted the Debtors’ requested injunction of the WSFS, Trilogy, Danner, UMB, Wilmington Trust and BOKF Actions (defined below “B”, “C”, “D”, “F” and “G”) (the “105 Injunction”) through the first omnibus hearing after Plan confirmation, and by order dated January 26, 2017 the 105 Injunction was extended to, inter alia, the Plan Effective Date. At the confirmation hearing, no creditor presented any objection to the Plan. As noted above, the Plan was confirmed by the Illinois Bankruptcy Court and will become effective after the conditions to its effectiveness have been satisfied. The Plan provides several parties, including, AGM and certain of its affiliates (collectively referred to as the "Apollo Released Parties") with a release of claims that the Debtors and the Debtors’ creditors have or may have against any or all of the Apollo Released Parties, including those described below in the WSFS Action, the Trilogy Action, the Danner Action, the UMB Action, the BOKF Action, the Wilmington Trust Action and the CEOC Action. B. Wilmington Savings Fund Society, FSB v. Caesars Entertainment Corp. et al., No. 10004-CVG (Del. Ch.) (the “WSFS Action”). On August 4, 2014, Wilmington Savings Fund Society, FSB (“WSFS”), as trustee for certain CEOC second-lien notes, sued Caesars Entertainment, CEOC, other Caesars Entertainment-affiliated entities, and certain of Caesars Entertainment’s directors, including Marc Rowan, Eric Press, David Sambur (each an Apollo Partner) and Jeffrey Benjamin (a consultant to Apollo), in Delaware’s Court of Chancery (the “Delaware Court”). WSFS (i) asserts claims (against some or all of the defendants) for fraudulent conveyance, breach of fiduciary duty, breach of contract, corporate waste, and aiding and abetting related to certain transactions among CEOC and certain of its subsidiaries and Caesars Entertainment and certain of its affiliates, and (ii) requests (among other things) that the Delaware Court unwind the challenged transactions and award damages. WSFS served a subpoena for documents on Apollo on September 11, 2014, but Apollo’s response was stayed during the pendency of motions to dismiss under a September 23, 2014 stipulated order. On March 18, 2015, the Delaware Court denied Defendants’ motion to dismiss. Apollo served responses and objections to WSFS’ subpoena on March 25, 2015. Caesars Entertainment answered the complaint on April 1, 2015. During the pendency of CEOC’s bankruptcy proceedings, the WSFS Action has been automatically stayed with respect to CEOC. WSFS additionally advised the Illinois Bankruptcy Court that, during CEOC’s bankruptcy proceedings, WSFS would only pursue claims in the WSFS Action relating to whether Caesars Entertainment remains liable on a guarantee of certain of CEOC’s second priority notes. On July 17, 2015, WSFS served supplemental subpoenas to several entities affiliated with AGM, and AGM and these entities have substantially completed their production of non-privileged documents responsive to those subpoenas. On March 11, 2016, WSFS filed a motion for partial summary judgment (the “Summary Judgment Motion”) on its breach of contract claim against Caesars Entertainment. On April 25, 2016, Caesars Entertainment filed a joint Cross-Motion for Partial Summary Judgment and answering brief in opposition to WSFS’ Summary Judgment Motion (the “Cross-Motion”). WSFS filed its joint reply and opposition to Caesars Entertainment’s Cross-Motion on May 25, 2016, and Caesars Entertainment filed a reply to WSFS’ opposition on June 9, 2016. On June 15, 2016, the Illinois Bankruptcy Court issued a temporary restraining order and preliminary injunction pursuant to Section 105(a) of the Bankruptcy Code enjoining the plaintiffs in the WSFS Action from prosecuting actions against Caesars Entertainment until August 29, 2016. On October 17, 2016, the Illinois Bankruptcy Court granted the 105 Injunction staying the WSFS Action initially through the first omnibus hearing after Plan confirmation, and now through, inter alia, the Plan Effective Date. Pursuant to the Plan, the Apollo Released Parties will be released from all claims relating to the WSFS Action. As aforementioned, the Plan was confirmed by an order dated January 17, 2017. C. Trilogy Portfolio Company, L.L.C., et al. v. Caesars Entertainment Corp., et al., No. 14-cv-7091 (S.D.N.Y.) (the “Trilogy Action”). On September 3, 2014, institutional investors allegedly holding approximately $137 million in CEOC unsecured senior notes sued CEOC and Caesars Entertainment in federal court in New York (the “New York Court”) for breach of contract and the implied covenant of good faith, Trust Indenture Act (“TIA”) violations, and a declaratory judgment challenging the August 2014 private financing transaction in which a portion of outstanding senior unsecured notes were purchased by Caesars Entertainment, and a majority of the noteholders agreed to amend the indenture to terminate Caesars Entertainment’s guarantee of the notes and modify certain restrictions on CEOC’s ability to sell assets. Caesars Entertainment and CEOC filed a motion to dismiss on November 12, 2014. On January 15, 2015, the New York Court granted the motion with respect to a TIA claim by Trilogy but otherwise denied the motion. On January 30, 2015, plaintiffs filed an amended complaint seeking relief against Caesars Entertainment only, and Caesars Entertainment answered on February 12, 2015. On October 2, 2014, a related putative class action complaint was filed on behalf of the holders of these notes captioned Danner v. Caesars Entertainment Corp., et al., No. 14-cv-7973 (S.D.N.Y.) (the “Danner Action”), against Caesars Entertainment alleging claims similar to those in the Trilogy Action. On February 19, 2015, plaintiffs filed an amended complaint, and Caesars Entertainment answered the amended complaint on February 25, 2015. In March 2015, each of Trilogy and Danner served subpoenas for documents on Apollo. Apollo produced responsive, non-privileged documents in response to those subpoenas. In July 2015, Trilogy and Danner served subpoenas for depositions on Apollo and those depositions were completed on September 22, 2015. On October 23, 2015, Trilogy and Danner filed motions for partial summary judgment, related to TIA and breach of contract claims. On December 29, 2015, the New York Court denied the motions for partial summary judgment. On March 23, 2016, the judge presiding over the Trilogy and Danner Actions announced that she was retiring from the bench effective April 28, 2016. A new judge was assigned to preside over the Trilogy and Danner Actions (in addition to the BOKF, UMB SDNY and Wilmington Trust Actions, defined below). On April 6, 2016, the parties agreed to a renewed summary judgment schedule for the Trilogy, Danner, BOKF, UMB SDNY (as defined below) and Wilmington Trust Actions. The moving parties submitted their briefs to the New York Court on May 10, 2016. Opposition briefs were filed on May 31, 2016. Reply briefs were filed on June 14, 2016. On June 15, 2016, the Illinois Bankruptcy Court issued a temporary restraining order and preliminary injunction pursuant to Section 105(a) of the Bankruptcy Code, enjoining the plaintiffs in the Trilogy and Danner Actions from prosecuting actions against Caesars Entertainment until August 29, 2016. On October 17, 2016, the Illinois Bankruptcy Court granted the 105 Injunction, staying the Trilogy and Danner Actions initially through the first omnibus hearing after Plan confirmation and now by order dated January 26, 2017 through, inter alia, the Plan Effective Date. Pursuant to the Plan, the Apollo Released Parties will be released from all claims relating to the Trilogy and Danner Actions. As aforementioned, the Plan was confirmed by an order dated January 17, 2017. D. UMB Bank v. Caesars Entertainment Corporation, et al., No. 10393 (Del. Ch.) (the “UMB Action”). On November 25, 2014, UMB Bank, as trustee for certain CEOC notes, sued Caesars Entertainment, CEOC, other Caesars Entertainment-affiliated entities and certain of Caesars Entertainment’s directors, including Marc Rowan, Eric Press, David Sambur (each an Apollo Partner) and Jeffrey Benjamin (an Apollo consultant), in the Delaware Court. The UMB Action alleges claims for actual and constructive fraudulent conveyance and transfer, insider preferences, illegal dividends, breach of contract, intentional interference with contractual relations, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, usurpation of corporate opportunities, and unjust enrichment. The UMB Action seeks appointment of a receiver for CEOC, a constructive trust and other relief. The UMB Action has been assigned to the same judge overseeing the WSFS Action. The UMB Action has effectively been stayed since April 7, 2016, and on October 17, 2016, the Illinois Bankruptcy Court granted the 105 Injunction staying the UMB Action initially through the first omnibus hearing after Plan confirmation and now by order dated January 26, 2017 through, inter alia, the Plan Effective Date. Pursuant to the Plan, the Apollo Released Parties will be released from all claims relating to the UMB Action. As aforementioned, the Plan was confirmed by an order dated January 17, 2017. E. Koskie v. Caesars Acquisition Company, et al., No. A-14-711712-C (Clark Cnty Nev. Dist. Ct.) (the “Koskie Action”). On December 30, 2014, Nicholas Koskie brought a shareholder class action on behalf of shareholders of Caesars Acquisition Company (“CAC”) against CAC, Caesars Entertainment, and members of CAC’s Board of Directors, including Marc Rowan and David Sambur (each an Apollo partner). The lawsuit challenges CAC’s and Caesars Entertainment’s plan to merge, alleging that the proposed transaction will not give CAC shareholders fair value. Koskie asserts claims for breach of fiduciary duty relating to the director defendants’ interrelationships with the entities involved the proposed transaction. The case has been dismissed for failure to prosecute, and the time granted to the plaintiff to refile has passed without there being any refiling. F. BOKF, N.A. v. Caesars Entertainment Corporation, No. 15-156 (S.D.N.Y) (the “BOKF Action”). On March 3, 2015, BOKF, N.A., as trustee for certain CEOC notes, sued Caesars Entertainment in the New York Court. The lawsuit alleges claims for breach of contract, intentional interference with contractual relations and a declaratory judgment, and seeks to enforce Caesars Entertainment’s guarantee of certain CEOC notes. The BOKF Action has been assigned to the same judge in the New York Court as the Trilogy and Danner Actions. On March 25, 2015, Caesars Entertainment filed an answer to the complaint. On May 19, 2015, BOKF sent the New York Court a letter requesting permission to file a partial summary judgment motion on Counts II and V of its complaint, related to the validity and enforceability of Caesars Entertainment’s guarantee of certain notes issued by CEOC and alleged violations of the Trust Indenture Act, 15 U.S.C. §§ 76aaa, et seq. The Trilogy and Danner plaintiffs did not join BOKF’s request to file for partial summary judgment. On May 28, 2015, the New York Court granted BOKF permission to move for partial summary judgment. On June 15, 2015, another related complaint captioned UMB Bank, N.A. v. Caesars Entertainment Corp., et al., No. 15-cv-4634 (S.D.N.Y.) (the “UMB SDNY Action”) was filed by UMB Bank, N.A., solely in its capacity as Indenture Trustee of certain first lien notes (“UMB”), against Caesars Entertainment alleging claims similar to those alleged in the BOKF, Trilogy and Danner Actions. On June 16, 2015, UMB sent a letter to the New York Court requesting permission to file a partial summary judgment motion on the same schedule with BOKF. On June 26, 2015, BOKF and UMB filed partial summary judgment motions (the “Partial Summary Judgment Motions”). On July 24, 2015, Caesars Entertainment filed its opposition to the Partial Summary Judgment Motions, and on August 7, 2015, BOKF and UMB filed reply briefs in further support of the Partial Summary Judgment Motions. On August 27, 2015, the New York Court denied the Partial Summary Judgment Motions and certified its opinion for an interlocutory appeal to the United States Court of Appeals for the Second Circuit. On December 22, 2015, the Second Circuit declined to hear the interlocutory appeal. Separately, on November 20, 2015, BOKF and UMB filed a second set of motions for partial summary judgment, on the issue of the disputed contract interpretation related to indenture release provisions. On January 5, 2016 the New York Court denied these motions. At a hearing on February 22, 2016, the New York Court bifurcated the trial in the BOKF and UMB SDNY Actions and scheduled the trial on the breach of contract and TIA claims to begin on March 14, 2016. The New York Court ordered a separate trial on the claims for breach of the covenant of good faith and fair dealing and tortious interference with contract to begin at a later date to be determined. On February 26, 2016, the Illinois Bankruptcy Court granted the stay request as to the BOKF Action until May 9, 2016, resulting in a stay of the trial on the breach of contract and TIA claims in the BOKF and UMB SDNY Actions. On February 24, 2016, Caesars Entertainment filed a motion for partial summary judgment to dispose of the claims for (1) breach of the implied covenant of good faith and fair dealing brought by BOKF and UMB, and (2) intentional interference with contractual relations brought by BOKF. The moving parties submitted their briefs on May 10, 2016. Opposition briefs were filed on May 31, 2016. Reply briefs were filed on June 14, 2016. On June 15, 2016, the Illinois Bankruptcy Court issued a temporary restraining order and preliminary injunction pursuant to Section 105(a) of the Bankruptcy Code, enjoining the plaintiffs in the BOKF Action from prosecuting actions against Caesars Entertainment until August 29, 2016. On October 17, 2016, after several motions and appeals relating to extending the stay past August 29, 2016, the Illinois Bankruptcy Court granted the 105 Injunction staying the BOKF Action initially through the first omnibus hearing after Plan confirmation and now by order dated January 26, 2017 through, inter alia, the Plan Effective Date. Pursuant to the Plan, the Apollo Released Parties will be released from all claims relating to the BOKF Action. As aforementioned, the Plan was confirmed by an order dated January 17, 2017. G. Wilmington Trust, National Association v. Caesars Entertainment Corporation, No. 15-cv-08280 (S.D.N.Y.) (the “Wilmington Trust Action”). On October 20, 2015, Wilmington Trust, N.A., solely in its capacity as Indenture Trustee for the 10.75% Notes due 2016 (“Wilmington Trust”), sued Caesars Entertainment in the New York Court alleging claims similar to those alleged in the BOKF, UMB, Trilogy, and Danner Actions. The parties cross-moved for partial summary judgment on the same schedule as the Trilogy Action. Caesars Entertainment argued that its actions did not violate the TIA and that its guarantee of the 10.75% Notes was automatically released under a certain clause contained in the indenture governing the 10.75% Notes. Wilmington Trust argued that Caesars Entertainment’s actions constituted an improper out-of-court reorganization under the TIA and that Caesars Entertainment’s guarantee was not released because the necessary conditions precedent did not occur. Although the temporary restraining order and preliminary injunction issued by the Illinois Bankruptcy Court did not apply to the Wilmington Trust Action, on July 6, 2016, Wilmington Trust and Caesars Entertainment filed a stipulation staying the Wilmington Trust Action until August 29, 2016. The New York Court scheduled oral argument for August 30, 2016. A motion was made by CEOC and the other Debtors to the Illinois Bankruptcy Court to extend the stay beyond August 29, 2016, which motion was denied. On October 17, 2016, the Illinois Bankruptcy Court granted the 105 Injunction staying the Wilmington Trust Action initially through the first omnibus hearing after Plan confirmation and now by order dated January 26, 2017 through, inter alia, the Plan Effective Date. Pursuant to the Plan, the Apollo Released Parties will be released from all claims relating to the Wilmington Trust Action. As aforementioned, the Plan was confirmed by an order dated January 17, 2017. H. CEOC v. Caesars Entertainment et al., Illinois Bankruptcy Court (the “CEOC Action”). On or about August 9, 2016, CEOC and certain of the other Debtors commenced a “placeholder” lawsuit against Caesars Entertainment, AGM, Caesars Entertainment directors (including Messrs. Rowan, Sambur, Press and Benjamin) and certain of its officers, and many others to, inter alia, prevent the statute of limitations from running respecting any claim owned |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Apollo conducts its business primarily in the United States and substantially all of its revenues are generated domestically. Apollo’s business is conducted through three reportable segments: private equity, credit and real assets. Segment information is utilized by our Managing Partners, who operate collectively as our chief operating decision maker, to assess performance and to allocate resources. These segments were established based on the nature of investment activities in each underlying fund, including the specific type of investment made and the level of control over the investment. The performance is measured by the Company’s chief operating decision maker on an unconsolidated basis because management makes operating decisions and assesses the performance of each of Apollo’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the affiliated funds. Economic Income Economic Income, or “EI”, is a key performance measure used by management in evaluating the performance of Apollo’s private equity, credit and real assets segments. Management believes the components of EI, such as the amount of management fees, advisory and transaction fees and carried interest income, are indicative of the Company’s performance. Management uses EI in making key operating decisions such as the following: • Decisions related to the allocation of resources such as staffing decisions including hiring and locations for deployment of the new hires; • Decisions related to capital deployment such as providing capital to facilitate growth for the business and/or to facilitate expansion into new businesses; and • Decisions relating to expenses, such as determining annual discretionary bonuses and equity-based compensation awards to its employees. With respect to compensation, management seeks to align the interests of certain professionals and selected other individuals with those of the investors in such funds and those of the Company’s shareholders by providing such individuals a profit sharing interest in the carried interest income earned in relation to the funds. To achieve that objective, a certain amount of compensation is based on the Company’s performance and growth for the year. EI is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. EI represents segment income before income tax provision excluding transaction-related charges arising from the 2007 private placement, and any acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. In addition, segment data excludes non-cash revenue and expense related to equity awards granted by unconsolidated related parties to employees of the Company, compensation and administrative related expense reimbursements, as well as the assets, liabilities and operating results of the funds and VIEs that are included in the condensed consolidated financial statements. The following tables present financial data for Apollo’s reportable segments as of and for the three months ended September 30, 2017 and 2016 . Prior period financial data has been updated to conform to the current presentation. As of and for the Three Months Ended September 30, 2017 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 76,079 $ 187,885 $ 18,470 $ 282,434 Advisory and transaction fees from related parties, net 10,572 4,219 1,418 16,209 Carried interest income (loss) from related parties: Unrealized (1) 286,589 4,179 (5,169 ) 285,599 Realized 21,859 32,131 6,985 60,975 Total carried interest income from related parties 308,448 36,310 1,816 346,574 Total Revenues (2) 395,099 228,414 21,704 645,217 Expenses: Compensation and benefits: Salary, bonus and benefits 31,467 59,027 10,513 101,007 Equity-based compensation 6,335 9,925 798 17,058 Profit sharing expense: Unrealized 96,992 2,266 (4,812 ) 94,446 Realized 17,394 14,643 3,636 35,673 Realized: Equity-based (3) 808 518 — 1,326 Total profit sharing expense 115,194 17,427 (1,176 ) 131,445 Total compensation and benefits 152,996 86,379 10,135 249,510 Non-compensation expenses: General, administrative and other 19,699 35,709 5,520 60,928 Placement fees 2,257 3,140 — 5,397 Total non-compensation expenses 21,956 38,849 5,520 66,325 Total Expenses (2) 174,952 125,228 15,655 315,835 Other Income: Income (loss) from equity method investments 39,875 8,222 (83 ) 48,014 Net gains from investment activities 7,959 60,570 — 68,529 Net interest loss (4,374 ) (5,972 ) (1,163 ) (11,509 ) Other income, net 7,344 16,318 2,044 25,706 Total Other Income (2) 50,804 79,138 798 130,740 Non-Controlling Interests — (1,751 ) — (1,751 ) Economic Income (2) $ 270,951 $ 180,573 $ 6,847 $ 458,371 Total Assets (2) $ 2,660,333 $ 2,772,296 $ 226,273 $ 5,658,902 (1) Included in unrealized carried interest income (loss) from related parties for three months ended September 30, 2017 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses, other income and total assets for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses, total consolidated other income and total assets. (3) Relates to amortization of restricted share awards granted under certain profit sharing arrangements (see note 2 ). The following table presents the related unamortized deferred equity-based compensation recorded in other assets, as well as liabilities for restricted share awards expected to be granted recorded in other liabilities, both within the condensed consolidated statements of financial condition: As of As of Unamortized deferred equity-based compensation $ 90,289 $ 42,619 Liabilities for restricted share awards expected to be granted 80,283 40,472 For the Three Months Ended September 30, 2016 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 91,545 $ 151,386 $ 15,554 $ 258,485 Advisory and transaction fees from related parties, net 26,601 2,612 1,038 30,251 Carried interest income from related parties: Unrealized (1) 75,019 91,502 963 167,484 Realized 9,844 20,500 5,499 35,843 Total carried interest income from related parties 84,863 112,002 6,462 203,327 Total Revenues (2) 203,009 266,000 23,054 492,063 Expenses: Compensation and benefits: Salary, bonus and benefits 32,532 45,143 9,129 86,804 Equity-based compensation 6,645 8,834 675 16,154 Profit sharing expense: Unrealized 19,234 36,809 432 56,475 Realized 7,266 8,988 4,062 20,316 Total profit sharing expense 26,500 45,797 4,494 76,791 Total compensation and benefits 65,677 99,774 14,298 179,749 Non-compensation expenses: General, administrative and other 18,118 29,161 4,674 51,953 Placement fees 330 723 — 1,053 Total non-compensation expenses 18,448 29,884 4,674 53,006 Total Expenses (2) 84,125 129,658 18,972 232,755 Other Income (Loss): Income from equity method investments 14,384 8,036 499 22,919 Net gains from investment activities 1,191 16,171 — 17,362 Net interest loss (4,188 ) (6,172 ) (1,168 ) (11,528 ) Other income (loss), net 103 (4,977 ) (29 ) (4,903 ) Total Other Income (Loss) (2) 11,490 13,058 (698 ) 23,850 Non-Controlling Interests — (510 ) — (510 ) Economic Income (2) 130,374 148,890 3,384 282,648 (1) Included in unrealized carried interest income from related parties for the three months ended September 30, 2016 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses and other income for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses and total consolidated other income. The following table reconciles total consolidated revenues to total revenues for Apollo’s reportable segments for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Total Consolidated Revenues $ 664,232 $ 503,731 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (19,832 ) (18,217 ) Adjustments related to consolidated funds and VIEs (1) 817 937 Other (1) — 5,612 Total Reportable Segments Revenues $ 645,217 $ 492,063 (1) Represents advisory fees, management fees and carried interest income earned from consolidated VIEs which are eliminated in consolidation. Includes non-cash revenues related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative related expense reimbursements. The following table reconciles total consolidated expenses to total expenses for Apollo’s reportable segments for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Total Consolidated Expenses $ 357,483 $ 282,257 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (19,832 ) (19,688 ) Transaction-related compensation charges (1) (7,543 ) (14,276 ) Reclassification of interest expenses (13,302 ) (12,832 ) Amortization of transaction-related intangibles (1) (971 ) (2,212 ) Other (1) — (494 ) Total Reportable Segments Expenses $ 315,835 $ 232,755 (1) Represents the addition of expenses of consolidated funds and VIEs, transaction-related charges, non-cash expenses related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative expenses. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. The following table reconciles total consolidated other income to total other income for Apollo’s reportable segments for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Total Consolidated Other Income $ 144,156 $ 42,911 Reclassification of interest expense (13,302 ) (12,832 ) Adjustments related to consolidated funds and VIEs (1) (227 ) (533 ) Other 113 (5,696 ) Total Reportable Segments Other Income $ 130,740 $ 23,850 (1) Represents the addition of other income of consolidated funds and VIEs. The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Economic Income for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Income before income tax provision $ 450,905 $ 264,385 Adjustments: Net (income) loss attributable to Non-Controlling Interests in consolidated entities (1,048 ) 222 Transaction-related charges, net (1) 8,514 18,041 Total consolidation adjustments and other 7,466 18,263 Economic Income $ 458,371 $ 282,648 (1) Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. Equity-based compensation adjustment includes non-cash revenues and expenses related to equity awards granted by unconsolidated related parties to employees of the Company. The following tables present financial data for Apollo’s reportable segments as of and for the nine months ended September 30, 2017 and 2016 . Prior period financial data has been updated to conform to the current presentation. As of and for the Nine Months Ended September 30, 2017 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 230,752 $ 516,083 $ 54,560 $ 801,395 Advisory and transaction fees from related parties, net 41,646 10,484 2,775 54,905 Carried interest income (loss) from related parties: Unrealized (1) 351,836 37,422 (1,639 ) 387,619 Realized 313,817 120,186 12,224 446,227 Total carried interest income from related parties 665,653 157,608 10,585 833,846 Total Revenues (2) 938,051 684,175 67,920 1,690,146 Expenses: Compensation and benefits: Salary, bonus and benefits 93,230 173,153 27,905 294,288 Equity-based compensation 21,134 28,255 1,980 51,369 Profit sharing expense: Unrealized 117,025 17,408 (2,848 ) 131,585 Realized 145,783 51,168 6,528 203,479 Realized: Equity-based 1,270 1,387 — 2,657 Total profit sharing expense 264,078 69,963 3,680 337,721 Total compensation and benefits 378,442 271,371 33,565 683,378 Non-compensation expenses: General, administrative and other 53,676 99,559 15,299 168,534 Placement fees 3,732 8,828 — 12,560 Total non-compensation expenses 57,408 108,387 15,299 181,094 Total Expenses (2) 435,850 379,758 48,864 864,472 Other Income: Income from equity method investments 81,951 20,561 1,935 104,447 Net gains from investment activities 11,255 91,365 — 102,620 Net interest loss (12,952 ) (18,978 ) (3,634 ) (35,564 ) Other income, net 25,915 16,888 2,347 45,150 Total Other Income (2) 106,169 109,836 648 216,653 Non-Controlling Interests — (3,244 ) — (3,244 ) Economic Income (2) $ 608,370 $ 411,009 $ 19,704 $ 1,039,083 Total Assets (2) $ 2,660,333 $ 2,772,296 $ 226,273 $ 5,658,902 (1) Included in unrealized carried interest income (loss) from related parties for the nine months ended September 30, 2017 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses, other income and total assets for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses, total consolidated other income (loss) and total assets. For the Nine Months Ended September 30, 2016 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 242,981 $ 445,149 $ 42,921 $ 731,051 Advisory and transaction fees from related parties, net 87,615 10,058 5,476 103,149 Carried interest income (loss) from related parties: Unrealized (1) 136,529 150,720 (4,151 ) 283,098 Realized 10,110 105,698 11,938 127,746 Total carried interest income from related parties 146,639 256,418 7,787 410,844 Total Revenues (2) 477,235 711,625 56,184 1,245,044 Expenses: Compensation and benefits: Salary, bonus and benefits 96,170 151,464 26,062 273,696 Equity-based compensation 20,795 25,694 2,107 48,596 Profit sharing expense: Unrealized 29,403 61,626 (1,400 ) 89,629 Realized 7,398 62,764 8,240 78,402 Total profit sharing expense 36,801 124,390 6,840 168,031 Total compensation and benefits 153,766 301,548 35,009 490,323 Non-compensation expenses: General, administrative and other 54,400 95,193 16,239 165,832 Placement fees 2,409 2,113 21 4,543 Total non-compensation expenses 56,809 97,306 16,260 170,375 Total Expenses (2) 210,575 398,854 51,269 660,698 Other Income (Loss): Income from equity method investments 40,311 21,824 1,631 63,766 Net gains from investment activities 3,542 45,819 — 49,361 Net interest loss (9,868 ) (14,542 ) (2,895 ) (27,305 ) Other income (loss), net 320 (5,512 ) (14 ) (5,206 ) Total Other Income (Loss) (2) 34,305 47,589 (1,278 ) 80,616 Non-Controlling Interests — (5,070 ) — (5,070 ) Economic Income (2) $ 300,965 $ 355,290 $ 3,637 $ 659,892 (1) Included in unrealized carried interest income (loss) from related parties for the nine months ended September 30, 2016 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses and other income for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses and total consolidated other income (loss). The following table reconciles total consolidated revenues to total revenues for Apollo’s reportable segments for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Total Consolidated Revenues $ 1,740,655 $ 1,285,004 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (53,234 ) (51,275 ) Adjustments related to consolidated funds and VIEs (1) 2,725 2,800 Other (1) — 8,515 Total Reportable Segments Revenues $ 1,690,146 $ 1,245,044 (1) Represents advisory fees, management fees and carried interest income earned from consolidated VIEs which are eliminated in consolidation. Includes non-cash revenues related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative related expense reimbursements. The following table reconciles total consolidated expenses to total expenses for Apollo’s reportable segments for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Total Consolidated Expenses $ 967,997 $ 767,554 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (53,234 ) (52,980 ) Transaction-related compensation charges (1) (6,409 ) (16,799 ) Reclassification of interest expenses (39,496 ) (30,505 ) Amortization of transaction-related intangibles (1) (4,381 ) (6,608 ) Other (1) (5 ) 36 Total Reportable Segments Expenses $ 864,472 $ 660,698 (1) Represents the addition of expenses of consolidated funds and VIEs, transaction-related charges, non-cash expenses related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative expenses. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. The following table reconciles total consolidated other income to total other income for Apollo’s reportable segments for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Total Consolidated Other Income $ 264,603 $ 121,018 Reclassification of interest expense (39,496 ) (30,505 ) Adjustments related to consolidated funds and VIEs (1) (8,433 ) (2,077 ) Other (21 ) (7,820 ) Total Reportable Segments Other Income $ 216,653 $ 80,616 (1) Represents the addition of other income of consolidated funds and VIEs. The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Economic Income for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Income before income tax provision $ 1,037,261 $ 638,468 Adjustments: Net income attributable to Non-Controlling Interests in consolidated entities (8,967 ) (3,891 ) Transaction-related charges, net (1) 10,789 25,315 Total consolidation adjustments and other 1,822 21,424 Economic Income $ 1,039,083 $ 659,892 (1) Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. Equity-based compensation adjustment includes non-cash revenues and expenses related to equity awards granted by unconsolidated related parties to employees of the Company. The following table presents the reconciliation of Apollo’s total reportable segment assets to total assets as of September 30, 2017 and December 31, 2016 : As of As of Total reportable segment assets $ 5,658,902 $ 4,694,643 Adjustments (1) 1,201,452 934,910 Total assets $ 6,860,354 $ 5,629,553 (1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On November 1, 2017 , the Company declared a cash distribution of $0.39 per Class A share, which will be paid on November 30, 2017 to holders of record on November 21, 2017 . On November 1, 2017 , the Company declared a cash distribution of $0.398438 per Preferred share, which will be paid on December 15, 2017 to holders of record on December 1, 2017 . |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization of the Company | Organization of the Company The Company was formed as a Delaware limited liability company on July 3, 2007 and completed a reorganization of its predecessor businesses on July 13, 2007 (the “2007 Reorganization”). The Company is managed and operated by its manager, AGM Management, LLC, which in turn is indirectly wholly-owned and controlled by Leon Black, Joshua Harris and Marc Rowan, its Managing Partners. As of September 30, 2017 , the Company owned, through six intermediate holding companies that include APO Corp., a Delaware corporation that is a domestic corporation for U.S. federal income tax purposes, APO Asset Co., LLC, a Delaware limited liability company that is a disregarded entity for U.S. federal income tax purposes, APO (FC), LLC, an Anguilla limited liability company that is treated as a corporation for U.S. federal income tax purposes, APO (FC II), LLC, an Anguilla limited liability company that is treated as a corporation for U.S. federal income tax purposes, APO UK (FC), Limited, a United Kingdom incorporated company that is treated as a corporation for U.S. federal income tax purposes, and APO (FC III), LLC, a Cayman Islands limited liability company (collectively, the “Intermediate Holding Companies”), 48.1% of the economic interests of, and operated and controlled all of the businesses and affairs of, the Apollo Operating Group through its wholly-owned subsidiaries. AP Professional Holdings, L.P., a Cayman Islands exempted limited partnership (“Holdings”), is the entity through which the Managing Partners and certain of the Company’s other partners (the “Contributing Partners”) indirectly beneficially own interests in each of the partnerships that comprise the Apollo Operating Group (“AOG Units”). As of September 30, 2017 , Holdings owned the remaining 51.9% of the economic interests in the Apollo Operating Group. The Company consolidates the financial results of the Apollo Operating Group and its consolidated subsidiaries. Holdings’ ownership interest in the Apollo Operating Group is reflected as a Non-Controlling Interest in the accompanying condensed consolidated financial statements. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and instructions to the Quarterly Report on Form 10-Q. The condensed consolidated financial statements and these notes are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting only of normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the 2016 Annual Report. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities (“VIEs”) and for which the Company is considered the primary beneficiary, and certain entities which are not considered VIEs but which the Company controls through a majority voting interest. Intercompany accounts and transactions, if any, have been eliminated upon consolidation. |
Reclassifications | Certain reclassifications, when applicable, have been made to the prior period’s condensed consolidated financial statements and notes to conform to the current period’s presentation and are disclosed accordingly. |
Consolidation | Consolidation The types of entities with which Apollo is involved generally include subsidiaries (e.g., general partners and management companies related to the funds the Company manages), entities that have all the attributes of an investment company (e.g., funds) and securitization vehicles (e.g., CLOs). Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity. Pursuant to the consolidation guidance, the Company first evaluates whether it holds a variable interest in an entity. Fees that are customary and commensurate with the level of services provided, and where the Company does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered a variable interest. Apollo factors in all economic interests including proportionate interests through related parties, to determine if such interests are considered a variable interest. As Apollo’s interests in many of these entities are solely through market rate fees and/or insignificant indirect interests through related parties, Apollo is not considered to have a variable interest in many of these entities and no further consolidation analysis is performed. For entities where the Company has determined that it does hold a variable interest, the Company performs an assessment to determine whether each of those entities qualify as a VIE. The determination as to whether an entity qualifies as a VIE depends on the facts and circumstances surrounding each entity and therefore certain of Apollo’s funds may qualify as VIEs under the variable interest model whereas others may qualify as voting interest entities (“VOEs”) under the voting interest model. The granting of substantive kick-out rights is a key consideration in determining whether a limited partnership or similar entity is a VIE and whether or not that entity should be consolidated. Under the variable interest model, Apollo consolidates those entities where it is determined that the Company is the primary beneficiary of the entity. The Company is determined to be the primary beneficiary when it has a controlling financial interest in the VIE, which is defined as possessing both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Apollo determines whether it is the primary beneficiary of a VIE at the time it becomes initially involved with the VIE and reconsiders that conclusion continuously. Investments and redemptions (either by Apollo, related parties of Apollo or third parties) or amendments to the governing documents of the respective entity may affect an entity’s status as a VIE or the determination of the primary beneficiary. Assets and liabilities of the consolidated VIEs are primarily shown in separate sections within the condensed consolidated statements of financial condition. Changes in the fair value of the consolidated VIEs’ assets and liabilities and related interest, dividend and other income and expenses are presented within net gains from investment activities of consolidated variable interest entities in the condensed consolidated statements of operations. The portion attributable to Non-Controlling Interests is reported within net income attributable to Non-Controlling Interests in the condensed consolidated statements of operations. For additional disclosures regarding VIEs, see note 4 . Under the voting interest model, Apollo consolidates those entities it controls through a majority voting interest. Apollo does not consolidate those VOEs in which substantive kick-out rights have been granted to the unrelated investors to either dissolve the fund or remove the general partner. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for the Company’s debt obligations (as described in note 9 ), Apollo’s financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value. See “Investments, at Fair Value” below. While Apollo’s valuations of portfolio investments are based on assumptions that Apollo believes are reasonable under the circumstances, the actual realized gains or losses will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may ultimately differ significantly from the assumptions on which the valuations were based. Financial instruments’ carrying values generally approximate fair value because of the short-term nature of those instruments or variable interest rates related to the borrowings. Fair Value Hierarchy U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: Level I - Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments included in Level I include listed equities and debt. The Company does not adjust the quoted price for these financial instruments, even in situations where the Company holds a large position and the sale of such position would likely deviate from the quoted price. Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments that are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives where the fair value is based on observable inputs. These financial instruments exhibit higher levels of liquid market observability as compared to Level III financial instruments. Level III - Pricing inputs are unobservable for the financial instrument and includes situations where there is little observable market activity for the financial instrument. The inputs into the determination of fair value may require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partner interests in corporate private equity and real assets funds, opportunistic credit funds, distressed debt and non-investment grade residual interests in securitizations and CDOs and CLOs where the fair value is based on observable inputs as well as unobservable inputs. When a security is valued based on broker quotes, the Company subjects those quotes to various criteria in making the determination as to whether a particular financial instrument would qualify for classification as Level II or Level III. These criteria include, but are not limited to, the number and quality of the broker quotes, the standard deviations of the observed broker quotes, and the percentage deviation from independent pricing services. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument when the fair value is based on unobservable inputs. Transfers between levels of the fair value hierarchy are recognized as of the end of the reporting period. |
Private Equity Investments | Private Equity Investments The value of liquid investments in Apollo’s private equity funds, where the primary market is an exchange (whether foreign or domestic) is determined using period end market prices. Such prices are generally based on the close price on the date of determination. Valuation approaches used to estimate the fair value of investments in Apollo’s private equity funds that are less liquid include the market approach and the income approach. The market approach provides an indication of fair value based on a comparison of the subject company to comparable publicly traded companies and transactions in the industry. The market approach is driven more by current market conditions, including actual trading levels of similar companies and, to the extent available, actual transaction data of similar companies. Judgment is required by management when assessing which companies are similar to the subject company being valued. Consideration may also be given to such factors as the Company’s historical and projected financial data, valuations given to comparable companies, the size and scope of the Company’s operations, the Company’s strengths, weaknesses, expectations relating to the market’s receptivity to an offering of the Company’s securities, applicable restrictions on transfer, industry and market information and assumptions, general economic and market conditions and other factors deemed relevant. The income approach provides an indication of fair value based on the present value of cash flows that a business or security is expected to generate in the future. The most widely used methodology in the income approach is a discounted cash flow method. Inherent in the discounted cash flow method are assumptions of expected results, the determination of a terminal value and a calculated discount rate. |
Credit Investments | Credit Investments The majority of investments in Apollo’s credit funds are valued based on quoted market prices and valuation models. Quoted market prices are valued based on the average of the “bid” and the “ask” quotes provided by multiple brokers wherever possible without any adjustments. Apollo will designate certain brokers to use to value specific securities. In order to determine the designated brokers, Apollo considers the following: (i) brokers with which Apollo has previously transacted, (ii) the underwriter of the security and (iii) active brokers indicating executable quotes. In addition, when valuing a security based on broker quotes wherever possible Apollo tests the standard deviation amongst the quotes received and the variance between the concluded fair value and the value provided by a pricing service. When broker quotes are not available Apollo considers the use of pricing service quotes or other sources to mark a position. When relying on a pricing service as a primary source, Apollo (i) analyzes how the price has moved over the measurement period, (ii) reviews the number of brokers included in the pricing service’s population and (iii) validates the valuation levels with Apollo’s pricing team and traders. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value utilizing a model based approach to determine fair value. Valuation approaches used to estimate the fair value of illiquid credit investments also may include the market approach and the income approach, as previously described above. The valuation approaches used consider, as applicable, market risks, credit risks, counterparty risks and foreign currency risks. |
Real Estate Investments | Real Assets Investments The estimated fair value of commercial mortgage-backed securities (“CMBS”) in Apollo’s real assets funds is determined by reference to market prices provided by certain dealers who make a market in these financial instruments. Broker quotes are only indicative of fair value and may not necessarily represent what the funds would receive in an actual trade for the applicable instrument. Additionally, the loans held-for-investment are stated at the principal amount outstanding, net of deferred loan fees and costs for certain investments. The loans in Apollo’s real assets funds are evaluated for possible impairment on a quarterly basis. For Apollo’s real assets funds, valuations of non-marketable underlying investments are determined using methods that include, but are not limited to (i) discounted cash flow estimates or comparable analysis prepared internally, (ii) third party appraisals or valuations by qualified real estate appraisers and (iii) contractual sales value of investments/properties subject to bona fide purchase contracts. Methods (i) and (ii) also incorporate consideration of the use of the income, cost, or sales comparison approaches of estimating property values. Certain of the private equity, credit, and real assets funds may also enter into foreign currency exchange contracts, total return swap contracts, credit default swap contracts, and other derivative contracts, which may include options, caps, collars and floors. Foreign currency exchange contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. If securities are held at the end of this period, the changes in value are recorded in income as unrealized. Realized gains or losses are recognized when contracts are settled. Total return swap and credit default swap contracts are recorded at fair value as an asset or liability with changes in fair value recorded as unrealized appreciation or depreciation. Realized gains or losses are recognized at the termination of the contract based on the difference between the close-out price of the total return or credit default swap contract and the original contract price. Forward contracts are valued based on market rates obtained from counterparties or prices obtained from recognized financial data service providers. |
Valuation Process | Valuation Process On a quarterly basis, Apollo utilizes valuation committees consisting of members from senior management, to review and approve the valuation results related to the investments of the funds it manages. For certain publicly traded vehicles managed by the Company, a review is performed by an independent board of directors. The Company also retains independent valuation firms to provide third-party valuation consulting services to Apollo, which consist of certain limited procedures that management identifies and requests them to perform. The limited procedures provided by the independent valuation firms assist management with validating their valuation results or determining fair value. The Company performs various back-testing procedures to validate their valuation approaches, including comparisons between expected and observed outcomes, forecast evaluations and variance analyses. However, because of the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material. |
Financial Instruments held by Consolidated VIEs | Financial Instruments held by Consolidated VIEs The Company measures both the financial assets and financial liabilities of the consolidated CLOs in its condensed consolidated financial statements using the fair value of the financial assets of the consolidated CLOs, which are more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are measured at fair value and the financial liabilities are measured in consolidation as: (i) the sum of the fair value of the financial assets and the carrying value of any non-financial assets that are incidental to the operations of the CLOs less (ii) the sum of the fair value of any beneficial interests retained by the Company (other than those that represent compensation for services) and the Company’s carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interest retained by the Company) using a reasonable and consistent methodology. Under the measurement alternative, net income (loss) attributable to Apollo Global Management, LLC reflects the Company’s own economic interests in the consolidated CLOs including (i) changes in the fair value of the beneficial interests retained by the Company and (ii) beneficial interests that represent compensation for collateral management services. The consolidated VIEs hold investments that could be traded over-the-counter. Investments in securities that are traded on a securities exchange or comparable over-the-counter quotation systems are valued based on the last reported sale price at that date. If no sales of such investments are reported on such date, and in the case of over-the-counter securities or other investments for which the last sale date is not available, valuations are based on independent market quotations obtained from market participants, recognized pricing services or other sources deemed relevant, and the prices are based on the average of the “bid” and “ask” prices, or at ascertainable prices at the close of business on such day. Market quotations are generally based on valuation pricing models or market transactions of similar securities adjusted for security-specific factors such as relative capital structure priority and interest and yield risks, among other factors. When market quotations are not available, a model based approach is used to determine fair value. As previously noted, the Company measures the debt obligations of the consolidated CLOs on the basis of the fair value of the financial assets of the consolidated CLOs. |
Fair Value Option | Fair Value Option Apollo has elected the fair value option for the Company’s investment in Athene Holding, the assets and liabilities of certain of its consolidated VIEs (including CLOs), the Company’s U.S. Treasury securities with original maturities greater than three months when purchased, and certain of the Company’s other investments. Such election is irrevocable and is applied to financial instruments on an individual basis at initial recognition. Apollo has applied the fair value option for certain corporate loans, other investments and debt obligations held by the consolidated VIEs that otherwise would not have been carried at fair value. See notes 3 , 4 , and 5 for further disclosure on the investments in Athene Holding and financial instruments of the consolidated VIEs and other investments for which the fair value option has been elected. |
Cash and Cash Equivalents | Cash and Cash Equivalents Apollo considers all highly liquid short-term investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include money market funds and U.S. treasury securities with original maturities of three months or less when purchased. Interest income from cash and cash equivalents is recorded in interest income in the condensed consolidated statements of operations. The carrying values of the money market funds and U.S. treasury securities of $428.1 million as of September 30, 2017 , which approximate their fair values due to their short-term nature and are categorized as Level I within the fair value hierarchy. Substantially all of the Company’s cash on deposit is in interest bearing accounts with major financial institutions and exceed insured limits. |
U.S. Treasury securities, at fair value | U.S. Treasury securities, at fair value U.S. Treasury securities, at fair value includes U.S. Treasury bills with original maturities greater than three months when purchased. These securities are recorded at fair value. Interest income on such securities is separately presented from the overall change in fair value and is recognized in interest income in the condensed consolidated statements of operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net gains from investment activities in the condensed consolidated statements of operations. |
Investments, at Fair Value | Investments, at Fair Value Investments, at fair value represent investments of the consolidated funds, investments of the consolidated VIEs and certain financial instruments for which the fair value option has been elected. The unrealized gains and losses resulting from changes in the fair value of the consolidated VIEs are reflected as net gains from investment activities of consolidated variable interest entities in the condensed consolidated statements of operations. Net gains from investment activities in the condensed consolidated statements of operations include both realized gains and losses and the change in unrealized gains and losses in the Company’s investments, at fair value between the opening reporting date and the closing reporting date. |
Equity Method Investments | Equity Method Investments For investments in entities over which the Company exercises significant influence but which do not meet the requirements for consolidation and for which the Company has not elected the fair value option, the Company uses the equity method of accounting, whereby the Company records its share of the underlying income or loss of such entities. The Company’s share of the underlying net income or loss of such entities is recorded in income from equity method investments in the condensed consolidated statements of operations. The carrying amounts of equity method investments are recorded in investments in the condensed consolidated statements of financial condition. As the underlying entities that the Company manages and invests in are, for U.S. GAAP purposes, primarily investment companies which reflect their investments at estimated fair value, the carrying value of the Company’s equity method investments in such entities approximates fair value. |
Revenues | Revenues Revenues are reported in three separate categories that include (i) advisory and transaction fees from related parties, net, which relate to the investments of the funds the Company manages and may include individual monitoring agreements the Company has with the portfolio companies and debt investment vehicles of the private equity funds and credit funds it manages; (ii) management fees from related parties, which are based on committed capital, invested capital, net asset value, gross assets or as otherwise defined in the respective agreements; and (iii) carried interest income from related parties, which is normally based on the performance of the funds the Company manages that are subject to preferred return. |
Management Fees from Related Parties | Management Fees from Related Parties —Management fees for private equity, credit, and real assets funds are recognized in the period during which the related services are performed in accordance with the contractual terms of the related agreement, and are generally based upon (1) a percentage of the capital committed during the commitment period, and thereafter based on the remaining invested capital of unrealized investments, or (2) net asset value, gross assets or as otherwise defined in the respective agreements. Included in management fees are certain expense reimbursements where the Company is considered the principal under the agreements and is required to record the expense and related reimbursement revenue on a gross basis. |
Advisory and Transaction Fees from Related Parties, Net | Advisory and Transaction Fees from Related Parties, Net —Advisory and transaction fees, including directors’ fees, are recognized when the underlying services rendered are substantially completed in accordance with the terms of the transaction and advisory agreements. Additionally, during the normal course of business, the Company incurs certain costs related to certain transactions that are not consummated (“broken deal costs”). These costs (e.g., research costs, due diligence costs, professional fees, legal fees and other related items) are determined to be broken deal costs upon management’s decision to no longer pursue the transaction. In accordance with the related fund agreement, in the event the deal is deemed broken, all of the costs are reimbursed by the funds and then included as a component of the calculation of the Management Fee Offset (described below). If a deal is successfully completed, Apollo is reimbursed by the fund or fund’s portfolio company for all costs incurred and no offset is generated. As the Company acts as an agent for the funds it manages, any transaction costs incurred and paid by the Company on behalf of the respective funds relating to successful or broken deals are recorded net on the Company’s condensed consolidated statements of operations, and any receivable from the respective funds is recorded in due from related parties on the condensed consolidated statements of financial condition. Advisory and transaction fees from related parties, net, also includes underwriting fees. Underwriting fees include gains, losses and fees, net of syndicate expenses, arising from securities offerings in which one of the Company’s subsidiaries participates in the underwriter syndicate. Underwriting fees are recognized at the time the underwriting is completed and the income is reasonably assured and are included in the condensed consolidated statements of operations. Underwriting fees recognized but not received are recorded in other assets on the condensed consolidated statements of financial condition. As a result of providing advisory services to certain private equity and credit portfolio companies, Apollo is generally entitled to receive fees for transactions related to the acquisition, in certain cases, and disposition of portfolio companies as well as ongoing monitoring of portfolio company operations and directors’ fees. The amounts due from portfolio companies are recorded in due from related parties, which is discussed further in note 13 . Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage of such advisory and transaction fees, net of applicable broken deal costs (“Management Fee Offset”). Advisory and transaction fees from related parties are presented net of the Management Fee Offset in the condensed consolidated statements of operations. |
Carried Interest Income (Loss) from Related Parties | Carried Interest Income from Related Parties —Apollo is entitled to an incentive return that can normally amount to as much as 20% of the total returns on a fund’s capital, depending upon performance. Performance fees are assessed as a percentage of the investment performance of the funds. The carried interest income from related parties for any period is based upon an assumed liquidation of the fund’s net assets on the reporting date, and distribution of the net proceeds in accordance with the fund’s income allocation provisions. Carried interest receivable is presented separately in the condensed consolidated statements of financial condition. The carried interest income from related parties may be subject to reversal to the extent that the carried interest income recorded exceeds the amount due to the general partner based on a fund’s cumulative investment returns. When applicable, the accrual for potential repayment of previously received carried interest income, which is a component of due to related parties, represents all amounts previously distributed to the general partner that would need to be repaid to the Apollo funds if these funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual general partner obligation, however, would not become payable or realized until the end of a fund’s life. Carried interest income from related parties also includes a quarterly performance fee on the pre-incentive fee net investment income (“AINV Part I Fees”) of AINV. For purposes of the AINV Part I Fees, the net investment income of AINV includes interest income, dividend income and certain other income but excludes any realized and unrealized capital gains or losses. Such AINV Part I Fees are paid quarterly and are not subject to repayment. |
Deferred Revenue | Deferred Revenue —Apollo earns management fees subject to the Management Fee Offset (described above). When advisory and transaction fees are earned by the management company, the Management Fee Offset reduces the management fee obligation of the fund. When the Company receives cash for advisory and transaction fees, a certain percentage of such advisory and/or transaction fees, as applicable, is allocated as a credit to reduce future management fees, otherwise payable by such fund. Such credit is recorded as deferred revenue in the condensed consolidated statements of financial condition. A portion of any excess advisory and transaction fees may be required to be returned to the limited partners of certain funds upon such fund’s liquidation. As the management fees earned by the Company are presented on a gross basis, any Management Fee Offsets calculated are presented as a reduction to advisory and transaction fees from related parties in the condensed consolidated statements of operations. Additionally, Apollo earns advisory fees pursuant to the terms of the advisory agreements with certain of the portfolio companies that are owned by the funds Apollo manages. When Apollo receives a payment from a portfolio company that exceeds the advisory fees earned at that point in time, the excess payment is recorded as deferred revenue in the condensed consolidated statements of financial condition. The advisory agreements with the portfolio companies vary in duration and the associated fees are received monthly, quarterly or annually. Deferred revenue is reversed and recognized as revenue over the period that the agreed upon services are performed. Under the terms of the funds’ partnership agreements, Apollo is normally required to bear organizational expenses over a set dollar amount and placement fees or costs in connection with the offering and sale of interests in the funds it manages to investors. The placement fees are payable to placement agents, who are independent third parties that assist in identifying potential investors, securing commitments to invest from such potential investors, preparing or revising offering and marketing materials, developing strategies for attempting to secure investments by potential investors and/or providing feedback and insight regarding issues and concerns of potential investors, when a limited partner either commits or funds a commitment to a fund. In certain instances the placement fees are paid over a period of time. Based on the management agreements with the funds, Apollo considers placement fees and organizational costs paid in determining if cash has been received in excess of the management fees earned. Placement fees and organizational costs are normally the obligation of Apollo but can be paid for by the funds. When these costs are paid by the fund, the resulting obligations are included within deferred revenue. The deferred revenue balance will also be reduced during future periods when management fees are earned but not paid. |
Compensation and Benefits | Compensation and Benefits 401(k) Savings Plan The Company sponsors a 401(k) savings plan (the “401(k) Plan”) whereby U.S.-based employees are entitled to participate in the 401(k) Plan based upon satisfying certain eligibility requirements. Effective J anuary 1, 2017, the Company matches 50% of eligible annual employee contributions up to 3% of the eligible employees’ annual compensation. Matching contributions vest after three years of service. |
Profit Sharing | Profit Sharing Profit sharing expense and profit sharing payable primarily consist of a portion of carried interest earned from certain funds that is allocated to employees, former employees and Contributing Partners. Profit sharing amounts are recognized on an accrued basis as the related carried interest income is earned. Accordingly, profit sharing amounts can be reversed during periods when there is a decline in carried interest income that was previously recognized. Profit sharing amounts are generally not paid until the related carried interest is distributed to the general partner upon realization of the fund’s investments. Under certain profit sharing arrangements, a portion of the carried interest distributed to the general partner is allocated by issuance of restricted shares, rather than cash to employees. Prior to distribution of the carried interest to the general partner, the Company records the value of the restricted shares expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. Upon distribution of the carried interest to the general partner, the general partner expects to purchase the Class A restricted shares on behalf of employees and simultaneously grant those shares to the employee. Such shares are recorded as equity-based compensation expense over the relevant service period. Additionally, profit sharing amounts previously distributed may be subject to clawback from employees, former employees and Contributing Partners. When applicable, the accrual for potential clawback of previously distributed profit sharing amounts, which is a component of due from related parties on the condensed consolidated statements of financial condition, represents all amounts previously distributed to employees, former employees and Contributing Partners that would need to be returned to the general partner if the Apollo funds were to be liquidated based on the fair value of the underlying funds’ investments as of the reporting date. The actual general partner receivable, however, would not become realized until the end of a fund’s life. Profit sharing payable also includes contingent consideration obligations that were recognized in connection with certain Apollo acquisitions. Changes in the fair value of the contingent consideration obligations are reflected in the Company’s condensed consolidated statements of operations as profit sharing expense. The Company has a performance based incentive arrangement for certain Apollo partners and employees designed to more closely align compensation on an annual basis with the overall realized performance of the Company. This arrangement enables certain partners and employees to earn discretionary compensation based on carried interest realizations earned by the Company in a given year, which amounts are reflected in profit sharing expense in the accompanying condensed consolidated financial statements. |
General, Administrative and Other | General, Administrative and Other General, administrative and other primarily includes professional fees, occupancy, depreciation and amortization, travel, information technology, and administration expenses. For the three and nine months ended September 30, 2016 , the presentation of professional fees, occupancy, and depreciation and amortization was combined with general, administrative and other on the condensed consolidated statements of operations to conform to the current presentation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Apollo’s most significant estimates include goodwill, intangible assets, income taxes, carried interest income from related parties, contingent consideration obligation related to an acquisition, non-cash compensation, and fair value of investments and debt. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to establish a comprehensive and converged standard on revenue recognition to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions, and geographies. The new guidance requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services (i.e., the transaction price). When determining the transaction price under the new guidance, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The new guidance also requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance will apply to all entities. In August 2015, the FASB issued its final standard formally amending the effective date of the new revenue recognition guidance. The amended guidance defers the effective date of the new guidance to interim reporting periods within annual reporting periods beginning after December 15, 2017. Upon adoption, the guidance currently applied by the Company in which it recognizes carried interest income on an assumed liquidation basis at each reporting date will no longer be permitted. The Company expects the recognition of carried interest income from incentive fees, which are a form of variable consideration, to be deferred until such fees are probable to not be significantly reversed. Incentive fees are carried interest income that is not a capital allocation to the general partner or investment manager. Carried interest income that is a capital allocation to the general partner or investment manager, represents the remaining portion of carried interest income on the Company’s consolidated statements of operations. The determination of which carried interests are considered capital allocations is primarily based on the terms of the agreement. In connection with the adoption of the new revenue guidance, the Company will apply a new accounting policy for its carried interest income that is a capital allocation. The Company intends to account for such carried interest income as a financial instrument under the equity method of accounting. The pattern and amount of recognition under the new policy is not expected to differ materially from the Company’s existing recognition for such fees. Such carried interest income will be reported as a separate line item within revenue (i.e., separate from incentive fees). As capital allocation related carried interest income and the related general partner investment are considered to be a single unit of account under the Company’s new accounting policy, the equity method income associated with the general partner interests will be combined with the associated carried interest income and reported within revenue. The Company is currently in the process of implementing the new revenue guidance and is continuing to evaluate the effect this guidance will have on other revenue streams, including management fees and advisory and transaction fees, as well as any principal versus agent considerations for reporting revenue gross versus net. The Company will adopt the new revenue recognition guidance effective January 1, 2018. In February 2016, the FASB issued guidance that amends the accounting for leases. The amended guidance requires recognition of a lease asset and a lease liability by lessees for leases classified as operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from existing guidance and accounting applied by a lessor is largely unchanged from existing guidance. The amended guidance is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. Early application is permitted for all entities. The Company expects its total assets and total liabilities on its condensed consolidated statements of financial condition to increase upon adoption of this guidance as a result of recording a lease asset and lease liability related to our operating leases. The Company is continuing to evaluate the impact that this guidance will have on its condensed consolidated financial statements. The Company expects to adopt the new leasing guidance on January 1, 2019. In March 2016, the FASB issued amended guidance on stock compensation. The amendments are intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for excess tax benefits, forfeitures, and cash flows. The amended guidance requires that all excess tax benefits and deficiencies related to share-based payment transactions be recognized through the income tax provision (benefit) in the condensed consolidated statement of operations. Further, the amended guidance permits an entity to make an accounting policy election either to estimate the number of forfeitures expected to occur or to account for forfeitures when they occur. The amended guidance also requires excess tax benefits related to share-based payment transactions to be presented as operating activities and employee taxes paid to be presented as financing activities in the condensed consolidated statement of cash flows. The amended guidance is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016. The Company adopted the guidance during the first quarter of 2017. Amendments relating to the recognition of excess tax benefits in the condensed consolidated statements of operations and impacts to the condensed consolidated statements of cash flows have been applied prospectively, with the exception of a $22.9 million cumulative effect adjustment, as of January 1, 2017, to deferred tax assets with a corresponding decrease to accumulated deficit relating to previously unrecognized excess tax benefits. For forfeitures, the Company made an accounting policy election to no longer estimate forfeitures in determining the number of equity-based awards that are expected to vest. Under the Company’s new policy, forfeitures are accounted for when they occur. Any adjustments have been reflected prospectively as of January 1, 2017. In August 2016, the FASB issued guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statements of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017. The Company early adopted the guidance during the first quarter of 2017. Adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements. In October 2016, the FASB issued guidance that amends the consolidation guidance issued in February 2015. Under the amended guidance a decision maker will need to consider only its proportionate indirect interest in a VIE that is held through a related party under common control. Under the originally issued guidance, a decision maker treats the interest of the related party under common control in the VIE as if the decision maker held the interest itself. The amended guidance is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016. The Company adopted the guidance during the first quarter of 2017. Adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements. In November 2016, the FASB issued guidance to reduce diversity in practice in the classification and presentation of changes in restricted cash on the statements of cash flows. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash. Entities will also be required to reconcile such total to amounts on the Company’s condensed consolidated statements of financial condition and disclose the nature of the restrictions. The guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is in the process of evaluating the impact that this guidance will have on its condensed consolidated financial statements. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of investments | The following table represents Apollo’s investments: As of As of Investments, at fair value $ 852,350 $ 708,080 Equity method investments 855,714 786,664 Total Investments $ 1,708,064 $ 1,494,744 |
Summary of realized and net change in unrealized gains on investments, at fair value | The following table presents the realized and net change in unrealized gains on investments, at fair value for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Realized gains on sales of investments $ 162 $ 472 $ 14 $ 375 Net change in unrealized gains due to changes in fair value (1) 68,770 17,274 102,922 49,912 Net gains from investment activities $ 68,932 $ 17,746 $ 102,936 $ 50,287 (1) Primarily relates to the Company’s investment in Athene Holding. See note 5 for further information regarding the Company’s investment in Athene Holding. |
Summary of equity method investments | Equity method investments as of September 30, 2017 and December 31, 2016 consisted of the following: Equity Held as of September 30, 2017 (5) December 31, 2016 (5) Private Equity (1)(2) $ 495,409 $ 428,581 Credit (1)(3) 330,918 327,012 Real Assets 29,387 31,071 Total equity method investments (4) $ 855,714 $ 786,664 (1) As of September 30, 2017 , equity method investments include Fund VIII (Private Equity) and MidCap (Credit) of $340.3 million and $79.9 million , respectively, representing an ownership percentage of 2.2% and 4.3% , respectively. As of December 31, 2016 , equity method investments include Fund VIII (Private Equity) and MidCap (Credit) of $260.9 million and $79.5 million , respectively, representing an ownership percentage of 2.2% and 4.3% , respectively. (2) The equity method investment in AP Alternative Assets, L.P. (“AAA”) was $51.8 million and $66.8 million as of September 30, 2017 and December 31, 2016 , respectively. The value of the Company’s investment in AAA was $51.9 million and $64.9 million based on the quoted market price as of September 30, 2017 and December 31, 2016 , respectively. (3) The equity method investment in AINV was $56.6 million and $58.6 million as of September 30, 2017 and December 31, 2016 , respectively. The value of the Company’s investment in AINV was $54.3 million and $52.1 million based on the quoted market price as of September 30, 2017 and December 31, 2016 , respectively. (4) Certain funds invest across multiple segments. The presentation in the table above is based on the classification of the majority of such funds’ investments. (5) Some amounts are included a quarter in arrears. As of September 30, 2017 and for the three and nine months ended September 30, 2017 , no equity method investment held by Apollo met the significance criteria as defined by the SEC. Although the following disclosure is not required by the significance criteria for the three and nine months ended September 30, 2017 , the Company chose to continue to include this information as it was disclosed in its 2016 Annual Report. The following table presents summarized financial information of Athene Holding for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 (1) 2016 2017 (1) 2016 (in millions) Statements of Operations Revenues $ 1,763 $ 1,272 $ 4,448 $ 3,039 Expenses 1,426 1,234 3,320 2,708 Income before income tax provision (benefit) 337 38 1,128 331 Income tax provision (benefit) 11 (88 ) 54 (73 ) Net income available to Athene Holding common shareholders $ 326 $ 126 $ 1,074 $ 404 (1) The financial statement information for the three and nine months ended September 30, 2017 is presented a quarter in arrears and is comprised of the financial information for the three and nine months ended June 30, 2017 , which represents the latest available financial information as of the date of this report. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Gain Loss on Investments of Variable Interest Entities | The following table presents net gains from investment activities of the consolidated VIEs for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended For the Nine Months Ended 2017 (1) 2016 (1) 2017 (1) 2016 (1) Net gains (losses) from investment activities $ (272 ) $ 9,466 $ 9,244 $ 7,341 Net gains (losses) from debt 635 (7,745 ) 3,319 (9,182 ) Interest and other income 9,977 11,404 26,420 34,913 Interest and other expenses (9,495 ) (12,325 ) (27,898 ) (30,255 ) Net gains from investment activities of consolidated variable interest entities $ 845 $ 800 $ 11,085 $ 2,817 (1) Amounts reflect consolidation eliminations. |
Principal Provisions of Debt | The following table summarizes the principal provisions of the debt of the consolidated VIEs as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 As of December 31, 2016 Principal Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity in Years Principal Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity in Years Senior Secured Notes (2)(3) $ 794,748 1.68 % 12.4 $ 704,976 1.83 % 12.3 Subordinated Notes (2)(3) 98,602 N/A (1) 22.7 87,794 N/A (1) 19.2 Secured Borrowings (4) 90,461 3.00 % 9.5 — N/A N/A Total $ 983,811 $ 792,770 (1) The subordinated notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the VIEs. (2) The fair value of Senior Secured Notes, Subordinated Notes and Secured Borrowings as of September 30, 2017 and December 31, 2016 was $972.6 million and $786.5 million , respectively. (3) The debt at fair value of the consolidated VIEs is collateralized by assets of the consolidated VIEs and assets of one vehicle may not be used to satisfy the liabilities of another vehicle. As of September 30, 2017 and December 31, 2016 , the fair value of the assets of the consolidated VIEs was $1,278.5 million and $1,001.8 million , respectively. This collateral consisted of cash and cash equivalents, investments, at fair value, and other assets. (4) Secured borrowings consist of a consolidated VIE’s obligation through a repurchase agreement redeemable at maturity with a third party lender. The fair value of the secured borrowings as of September 30, 2017 was $90.5 million . |
Carrying Amounts of Assets and Liabilities | The following table presents the carrying amounts of the assets and liabilities of the VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary as of September 30, 2017 and December 31, 2016 . In addition, the table presents the maximum exposure to losses relating to these VIEs. As of As of Assets: Cash $ 334,339 $ 231,922 Investments 7,389,027 7,253,872 Receivables 68,390 37,541 Total Assets $ 7,791,756 $ 7,523,335 Liabilities: Debt and other payables $ 3,089,584 $ 2,818,459 Total Liabilities $ 3,089,584 $ 2,818,459 Apollo Exposure (1) $ 282,240 $ 272,191 (1) Represents Apollo’s direct investment in those entities in which Apollo holds a significant variable interest and certain other investments. Additionally, cumulative carried interest income is subject to reversal in the event of future losses. The maximum amount of future reversal of carried interest income from all of Apollo’s funds, including those entities in which Apollo holds a significant variable interest, was $3.6 billion and $2.9 billion as of September 30, 2017 and December 31, 2016 , respectively, as discussed in note 14 . |
FAIR VALUE MEASUREMENTS OF FI27
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Valuation of the Financial Assets and Liabilities by the Fair Value Hierarchy | The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level as of September 30, 2017 and December 31, 2016 . As of September 30, 2017 Level I (1) Level II (1) Level III Total Cost Assets U.S. Treasury securities, at fair value $ 198,900 $ — $ — $ 198,900 $ 198,868 Investments, at fair value: Investments of consolidated Apollo funds 1,077 237 664 1,978 1,827 Other investments — — 64,726 64,726 62,464 Investment in Athene Holding (2) — 785,646 — 785,646 387,526 Total investments, at fair value 1,077 785,883 65,390 852,350 (7) 451,817 Investments of VIEs, at fair value (3) — 1,029,599 135,577 1,165,176 Investments of VIEs, valued using NAV — — — 5,374 Total investments of VIEs, at fair value — 1,029,599 135,577 1,170,550 Derivative assets — 439 — 439 Total Assets $ 199,977 $ 1,815,921 $ 200,967 $ 2,222,239 Liabilities Liabilities of consolidated Apollo funds $ 21 $ 596 $ — $ 617 Liabilities of VIEs, at fair value (3)(5) — 972,632 12,416 985,048 Contingent consideration obligations (6) — — 87,300 87,300 Derivative liabilities (4) — 1,439 — 1,439 Total Liabilities $ 21 $ 974,667 $ 99,716 $ 1,074,404 As of December 31, 2016 Level I (1) Level II (1) Level III Total Cost Assets Investments, at fair value: Investments of consolidated Apollo funds $ 3,336 $ 1,475 $ 567 $ 5,378 $ 5,463 Other investments — — 45,154 45,154 47,690 Investment in Athene Holding (2) — 657,548 — 657,548 387,526 Total investments, at fair value 3,336 659,023 45,721 708,080 (7) 440,679 Investments of VIEs, at fair value (3) — 816,167 92,474 908,641 Investments of VIEs, valued using NAV — — — 5,186 Total investments of VIEs, at fair value — 816,167 92,474 913,827 Derivative assets — 1,360 — 1,360 Total Assets $ 3,336 $ 1,476,550 $ 138,195 $ 1,623,267 Liabilities Liabilities of VIEs, at fair value (3)(5) $ — $ 786,545 $ 11,055 $ 797,600 Contingent consideration obligations (6) — — 106,282 106,282 Derivative liabilities (4) — 1,167 — 1,167 Total Liabilities $ — $ 787,712 $ 117,337 $ 905,049 (1) All Level I and Level II assets and liabilities were valued using third party pricing, with the exception of the investment in Athene Holding. (2) See note 13 for further disclosure regarding the investment in Athene Holding. (3) See note 4 for further disclosure regarding VIEs. (4) Derivative liabilities are presented as a component of Other liabilities in the condensed consolidated statements of financial condition. (5) Other liabilities include contingent obligations classified as Level III. (6) See note 14 for further disclosure regarding contingent consideration obligations. (7) See note 3 to our condensed consolidated financial statements for further detail regarding our investments at fair value and reconciliation to the condensed consolidated statements of financial condition. |
Changes in Fair Value in Financial Assets, Measured at Fair Value and Characterized as Level III Investments | The following tables summarize the changes in fair value in financial assets measured at fair value for which Level III inputs have been used to determine fair value for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 Investments of Consolidated Apollo Funds Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 624 $ 53,098 $ 170,666 $ 224,388 Purchases — 10,075 21,729 31,804 Sales of investments/distributions — — (21,119 ) (21,119 ) Net realized gains — — 154 154 Changes in net unrealized gains 40 18 1,791 1,849 Cumulative translation adjustment — 1,535 3,145 4,680 Transfer out of Level III — — (40,789 ) (40,789 ) Balance, End of Period $ 664 $ 64,726 $ 135,577 $ 200,967 Change in net unrealized gains included in net gains from investment activities related to investments still held at reporting date $ 40 $ 18 $ — $ 58 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — 1,330 1,330 For the Three Months Ended September 30, 2016 Investments of Consolidated Apollo Funds Other Investments Investment in Athene Holding Investments of Consolidated VIEs Total Balance, Beginning of Period $ 2,853 $ 44,753 $ 542,437 $ 112,690 $ 702,733 Purchases — 334 — 11,040 11,374 Sale of investments/distributions (1,361 ) — — (11,204 ) (12,565 ) Net realized gains 15 — — 86 101 Changes in net unrealized gains (losses) 107 939 16,392 (215 ) 17,223 Cumulative translation adjustment — 206 — 1,004 1,210 Transfer into Level III (1) — — — 8,755 8,755 Transfer out of Level III (1) (1,293 ) — — (15,622 ) (16,915 ) Balance, End of Period $ 321 $ 46,232 $ 558,829 $ 106,534 $ 711,916 Change in net unrealized gains included in net gains from investment activities related to investments still held at reporting date $ 51 $ 939 $ 16,392 $ — $ 17,382 Change in net unrealized losses included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — — (358 ) (358 ) (1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services. The following tables summarize the changes in fair value in financial assets measured at fair value for which Level III inputs have been used to determine fair value for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 Investments of Consolidated Apollo Funds Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 567 $ 45,154 $ 92,474 $ 138,195 Purchases — 14,774 107,969 122,743 Sale of investments/distributions (8 ) — (53,920 ) (53,928 ) Net realized gains (losses) (14 ) — 340 326 Changes in net unrealized gains (losses) 59 (386 ) 9,600 9,273 Cumulative translation adjustment — 5,184 10,334 15,518 Transfer into Level III (1) 60 — 9,569 9,629 Transfer out of Level III (1) — — (40,789 ) (40,789 ) Balance, End of Period $ 664 $ 64,726 $ 135,577 $ 200,967 Change in net unrealized gains (losses) included in net gains from investment activities related to investments still held at reporting date $ 45 $ (386 ) $ — $ (341 ) Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — 9,351 9,351 (1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services. For the Nine Months Ended September 30, 2016 Investments of Consolidated Apollo Funds Other Investments Investment in Athene Holding Investments of Consolidated VIEs Total Balance, Beginning of Period $ 1,634 $ 434 $ 510,099 $ 100,941 $ 613,108 Purchases 1,382 44,530 — 60,832 106,744 Sale of investments/distributions (1,803 ) — — (54,496 ) (56,299 ) Net realized gains (losses) (96 ) — — 3,132 3,036 Changes in net unrealized gains (losses) 224 528 48,730 (2,629 ) 46,853 Cumulative translation adjustment — 740 — 2,469 3,209 Transfer into Level III (1) 1,495 — — 30,173 31,668 Transfer out of Level III (1) (2,515 ) — — (33,888 ) (36,403 ) Balance, End of Period $ 321 $ 46,232 $ 558,829 $ 106,534 $ 711,916 Change in net unrealized gains included in net gains from investment activities related to investments still held at reporting date $ 56 $ 528 $ 48,730 $ — $ 49,314 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — — — 441 441 (1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services. |
Changes in Fair Value in Financial Liabilities, Measured at Fair Value and Characterized as Level III Liabilities | The following table summarizes the changes in fair value in financial liabilities measured at fair value for which Level III inputs have been used to determine fair value for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Balance, Beginning of Period $ 12,007 $ 86,900 $ 98,907 $ 11,671 $ 70,967 $ 82,638 Payments/extinguishment — (6,776 ) (6,776 ) — (3,109 ) (3,109 ) Changes in net unrealized losses (1) 409 7,176 7,585 136 13,361 13,497 Balance, End of Period $ 12,416 $ 87,300 $ 99,716 $ 11,807 $ 81,219 $ 93,026 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to liabilities still held at reporting date $ 409 $ — $ 409 $ 136 $ — $ 136 (1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations. The following table summarizes the changes in fair value in financial liabilities measured at fair value for which Level III inputs have been used to determine fair value for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Liabilities of Consolidated Apollo Funds Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Liabilities of Consolidated VIEs Contingent Consideration Obligations Total Balance, Beginning of Period $ — $ 11,055 $ 106,282 $ 117,337 $ 11,411 $ 79,579 $ 90,990 Additions 97 — — 97 — — — Payments/extinguishment (94 ) — (23,597 ) (23,691 ) — (10,096 ) (10,096 ) Net realized gains (10 ) — — (10 ) — — — Changes in net unrealized losses (1) 7 1,361 4,615 5,983 396 11,736 12,132 Balance, End of Period $ — $ 12,416 $ 87,300 $ 99,716 $ 11,807 $ 81,219 $ 93,026 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to liabilities still held at reporting date $ — $ 1,361 $ — $ 1,361 $ 396 $ — $ 396 (1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations. |
Quantitative Inputs and Assumptions used for Financial Assets and Liabilities Categorized in Level III | The following tables summarize the quantitative inputs and assumptions used for financial assets and liabilities categorized as Level III under the fair value hierarchy as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average Financial Assets Investments of consolidated Apollo funds $ 664 Third party pricing (1) N/A N/A N/A Investments in other 47,602 Third party pricing (1) N/A N/A N/A 17,124 Other N/A N/A N/A Investments of consolidated VIEs: Corporate loans/bonds/CLO notes 13,548 Third party pricing (1) N/A N/A N/A Equity securities 122,029 Book value multiple Book value multiple 0.76x 0.76x Discounted cash flow Discount rate 12.8% 12.8% Total investments of consolidated VIEs 135,577 Total Financial Assets $ 200,967 Financial Liabilities Liabilities of consolidated VIEs 12,416 Other N/A N/A N/A Contingent consideration obligation 87,300 Discounted cash flow Discount rate 17.3% 17.3% Total Financial Liabilities $ 99,716 (1) These securities are valued primarily using unadjusted broker quotes. As of December 31, 2016 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average Financial Assets Investments of consolidated Apollo funds $ 567 Third party pricing (1) N/A N/A N/A Investments in other 45,154 Third party pricing (1) N/A N/A N/A Investments of consolidated VIEs: Bank debt term loans 4,701 Third party pricing (1) N/A N/A N/A Corporate loans/bonds/CLO notes 15,496 Third party pricing (1) N/A N/A N/A Equity securities 72,277 Transaction N/A N/A N/A Total investments of consolidated VIEs 92,474 Total Financial Assets $ 138,195 Financial Liabilities Liabilities of consolidated VIEs $ 11,055 Other N/A N/A N/A Contingent consideration obligation 106,282 Discounted cash flow Discount rate 13.0% - 17.3% 17.2% Total Financial Liabilities $ 117,337 (1) These securities are valued primarily using unadjusted broker quotes. |
CARRIED INTEREST RECEIVABLE (Ta
CARRIED INTEREST RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Carried Interest Receivable Balance [Abstract] | |
Carried Interest Receivable from Private Equity and Capital Markets Funds | Carried interest receivable from private equity, credit and real assets funds consisted of the following: As of September 30, 2017 As of December 31, 2016 Private Equity $ 1,128,460 $ 798,465 Credit 413,990 426,114 Real Assets 35,534 32,526 Total carried interest receivable $ 1,577,984 $ 1,257,105 |
Carried Interest Receivable Balance | The table below provides a roll-forward of the carried interest receivable balance for the nine months ended September 30, 2017 : Private Equity Credit Real Assets Total Carried interest receivable, January 1, 2017 $ 798,465 $ 426,114 $ 32,526 $ 1,257,105 Change in fair value of funds 651,808 165,987 10,585 828,380 Fund distributions to the Company (321,813 ) (178,111 ) (7,577 ) (507,501 ) Carried interest receivable, September 30, 2017 $ 1,128,460 $ 413,990 $ 35,534 $ 1,577,984 |
PROFIT SHARING PAYABLE (Tables)
PROFIT SHARING PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Profit Sharing Payable [Abstract] | |
Summary of Profit Sharing From Private Equity, Credit, and Real Estate Funds | Profit sharing payable consisted of the following: As of September 30, 2017 As of December 31, 2016 Private Equity $ 427,456 $ 268,170 Credit 269,233 268,855 Real Assets 14,184 13,123 Total profit sharing payable $ 710,873 $ 550,148 |
Rollforward Summary of Profit Sharing From Private Equity, Credit, and Real Estate Funds | The table below provides a roll-forward of the profit sharing payable balance for the nine months ended September 30, 2017 : Private Equity Credit Real Assets Total Profit sharing payable, January 1, 2017 $ 268,170 $ 268,855 $ 13,123 $ 550,148 Profit sharing expense (1)(2) 266,881 73,909 3,680 344,470 Payments/other (107,595 ) (73,531 ) (2,619 ) (183,745 ) Profit sharing payable, September 30, 2017 $ 427,456 $ 269,233 $ 14,184 $ 710,873 (1) Includes (i) changes in amounts payable to employees and former employees entitled to a share of carried interest income in Apollo’s funds and (ii) changes to the fair value of the contingent consideration obligations recognized in connection with certain Apollo acquisitions. See notes 5 and 14 for further disclosure regarding the contingent consideration obligations. (2) The Company has recorded a receivable from the Contributing Partners, certain employees and former employees for the potential return of profit sharing distributions that would be due if certain funds were liquidated in the amount of $43.9 million and $39.3 million as of September 30, 2017 and December 31, 2016 , respectively. Profit sharing expense excludes the potential return of these profit sharing distributions. See note 13 for further discussion regarding the potential return of profit sharing distributions |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Change in Deferred Tax Assets and Deferred Tax Liabilities | The table below presents the impact to the deferred tax asset, tax receivable agreement liability and additional paid in capital related to the exchange of AOG Units for Class A shares during the nine months ended September 30, 2017 and 2016 . Exchange of AOG Units for Class A shares Increase in Deferred Tax Asset Increase in Tax Receivable Agreement Liability Increase to Additional Paid In Capital For the Nine Months Ended September 30, 2017 $ 46,539 $ 35,946 $ 10,593 For the Nine Months Ended September 30, 2016 $ 1,807 $ 1,519 $ 288 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt consisted of the following: As of September 30, 2017 As of December 31, 2016 Outstanding Balance Fair Value Annualized Weighted Average Interest Rate Outstanding Balance Fair Value Annualized Weighted Average Interest Rate 2013 AMH Credit Facilities - Term Facility (1) $ 299,627 $ 298,875 (3) 2.28 % $ 299,543 $ 298,500 (3) 1.82 % 2024 Senior Notes (1) 495,697 510,604 (4) 4.00 495,208 498,336 (4) 4.00 2026 Senior Notes (1) 495,550 519,618 (4) 4.40 495,165 497,923 (4) 4.40 2014 AMI Term Facility I (2) 16,199 16,199 (3) 2.00 14,449 14,449 (3) 2.00 2014 AMI Term Facility II (2) 18,283 18,283 (3) 1.75 16,306 16,306 (3) 1.75 2016 AMI Term Facility I (2) 20,050 20,050 (3) 1.75 17,852 17,852 (3) 1.75 2016 AMI Term Facility II (2) 15,638 15,638 (3) 2.00 13,924 13,924 (3) 2.00 Total Debt $ 1,361,044 $ 1,399,267 $ 1,352,447 $ 1,357,290 (1) Includes impact of any amortization of note discount, as applicable. Outstanding balance is presented net of unamortized debt issuance costs, which are presented in the following table: As of September 30, 2017 As of December 31, 2016 2013 AMH Credit Facilities - Term Facility $ 373 $ 457 2024 Senior Notes $ 3,637 $ 4,051 2026 Senior Notes $ 4,069 $ 4,420 (2) Apollo Management International LLP (“AMI”), a subsidiary of the Company, entered into the following five year credit agreements and proceeds from the borrowings were used to fund the Company’s investment in European CLOs it manages: Facility Date Loan Amount 2014 AMI Term Facility I July 3, 2014 € 13,686 2014 AMI Term Facility II December 9, 2014 € 15,475 2016 AMI Term Facility I January 18, 2016 € 16,970 2016 AMI Term Facility II June 22, 2016 € 13,236 (3) Fair value is based on obtained broker quotes and these notes would be classified as a Level III liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from independent pricing services. For instances where broker quotes are not available, a discounted cash flow method is used to obtain a fair value. (4) Fair value is based on obtained broker quotes and these notes would be classified as a Level II liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from independent pricing services. |
Schedule of Interest Expense | The following table presents the interest expense incurred related to the Company’s debt for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Interest Expense: (1) 2013 AMH Term Facility $ 2,150 $ 1,696 $ 6,109 $ 6,408 2024 Senior Notes 5,163 5,192 15,489 15,572 2026 Senior Notes 5,628 5,630 16,885 7,744 AMI Term Facilities 362 314 1,014 781 Total Interest Expense $ 13,303 $ 12,832 $ 39,497 $ 30,505 (1) Debt issuance costs incurred in connection with the Term Facility, the 2024 Senior Notes and the 2026 Senior Notes are amortized into interest expense over the term of the debt arrangement. The following table presents the carried interest income earned from AAA Investments: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Carried interest income from AAA Investments, net (1) $ 14.5 $ 5.5 $ 27.0 $ 16.5 (1) Net of related profit sharing expense. The following table presents the revenues earned in aggregate from Athene and AGER: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Revenues earned in aggregate from Athene and AGER, net (1) $ 181.0 $ 111.7 $ 434.2 $ 322.6 (1) Consisting of management fees, sub-advisory fees, carried interest income from Athene and AGER (net of related profit sharing expense) and changes in the market value of the Athene Holding shares owned directly by Apollo. These amounts exclude the deferred revenue recognized as management fees associated with the vesting of AHL Awards granted to employees of Apollo as further described in note 11 . The following table presents carried interest receivable and profit sharing payable from AAA Investments: As of As of Carried interest receivable $ 187,106 $ 229,829 Profit sharing payable 53,689 80,579 |
NET INCOME PER CLASS A SHARE (T
NET INCOME PER CLASS A SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Class A Share | The table below presents basic and diluted net income per Class A share using the two-class method for the three and nine months ended September 30, 2017 and 2016 : Basic and Diluted For the Three Months Ended For the Nine Months Ended 2017 2016 2017 2016 Numerator: Net income attributable to Apollo Global Management, LLC Class A Shareholders $ 198,569 $ 94,619 $ 430,673 $ 235,883 Distributions declared on Class A shares (1) (100,641 ) (68,356 ) (279,307 ) (165,802 ) Distributions on participating securities (2) (3,265 ) (2,404 ) (9,419 ) (6,293 ) Earnings allocable to participating securities (3,218 ) (3) (849 ) (5,129 ) (2,637 ) Undistributed income attributable to Class A shareholders: Basic and Diluted $ 91,445 $ 23,010 $ 136,818 $ 61,151 Denominator: Weighted average number of Class A shares outstanding: Basic and Diluted 192,882,082 184,438,515 190,014,240 183,602,982 Net Income per Class A Share: Basic and Diluted (4) Distributed Income $ 0.52 $ 0.37 $ 1.46 $ 0.90 Undistributed Income 0.48 0.13 0.73 0.34 Net Income per Class A Share: Basic and Diluted $ 1.00 $ 0.50 $ 2.19 $ 1.24 (1) See note 12 for information regarding the quarterly distributions declared and paid during 2017 and 2016 . (2) Participating securities consist of vested and unvested RSUs that have rights to distributions and unvested restricted shares. (3) No allocation of undistributed losses was made to the participating securities as the holders do not have a contractual obligation to share in the losses of the Company with Class A shareholders. (4) For the three and nine months ended September 30, 2017 and 2016 , all of the classes of securities were determined to be anti-dilutive |
Schedule of Weighted Average Number of Shares | The following table summarizes the anti-dilutive securities for the three and nine months ended September 30, 2017 and 2016 , respectively. For the Three Months Ended For the Nine Months Ended 2017 2016 2017 2016 Weighted average vested RSUs 210,642 873,973 554,881 1,780,166 Weighted average unvested RSUs 6,196,601 5,867,075 6,334,220 6,054,283 Weighted average unexercised options 210,420 222,920 214,587 222,920 Weighted average AOG Units outstanding 209,522,593 215,869,166 212,224,998 216,034,309 Weighted average unvested restricted shares 400,606 67,101 240,411 85,388 |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule or Description of Weighted Average Discount Rate | The following table summarizes the weighted average discounts for Plan Grants and Bonus Grants for the three and nine months ended September 30, 2017 and 2016 . For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Plan Grants: Discount for the lack of distributions until vested (1) 12.9 % 8.2 % 12.0 % 10.1 % Marketability discount for transfer restrictions (2) 4.0 % 5.8 % 3.5 % 5.8 % Bonus Grants: Marketability discount for transfer restrictions (2) 2.3 % 3.0 % 2.3 % 3.4 % (1) Based on the present value of a growing annuity calculation. (2) Based on the Finnerty Model calculation. |
Schedule or Description of Forfeiture Rate and Compensation Expense | The following table presents the forfeiture rate and equity-based compensation expense recognized for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Actual forfeiture rate 2.3 % 2.7 % 9.3 % 6.6 % Equity-based compensation $ 17,106 $ 16,724 $ 50,807 $ 52,564 The following table summarizes the management fees, equity-based compensation expense and actual forfeiture rates for the AHL Awards for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Management fees $ 2,393 $ 4,015 $ 4,531 $ 9,179 Equity-based compensation $ 3,528 $ 4,093 $ 6,983 $ 9,441 Actual forfeiture rate — % 0.4 % — % 0.8 % |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes RSU activity for the nine months ended September 30, 2017 : Unvested Weighted Average Grant Date Fair Value Vested Total Number of RSUs Outstanding Balance at January 1, 2017 9,391,566 $ 15.80 2,752,455 12,144,021 (1) Granted 1,519,021 21.29 — 1,519,021 Forfeited (1,016,156 ) 17.80 — (1,016,156 ) Issued — 18.29 (3,285,664 ) (3,285,664 ) Vested (859,553 ) 17.29 859,553 — Balance at September 30, 2017 9,034,878 (2) $ 16.36 326,344 9,361,222 (1) (1) Amount excludes RSUs which have vested and have been issued in the form of Class A shares. (2) RSUs were expected to vest over the weighted average period of 2.1 years. |
Schedule of Share-based Compensation, Activity | Below is a reconciliation of the equity-based compensation allocated to Apollo Global Management, LLC for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 Total Amount Non-Controlling Interest % in Apollo Operating Group Allocated to Non-Controlling Interest in Apollo Operating Group (1) Allocated to Apollo Global Management, LLC RSUs, share options and restricted share awards $ 54,901 — % $ — $ 54,901 AHL Awards 6,983 51.9 3,624 3,359 Other equity-based compensation awards 8,448 51.9 4,385 4,063 Total equity-based compensation $ 70,332 8,009 62,323 Less other equity-based compensation awards (2) (8,009 ) (9,881 ) Capital increase related to equity-based compensation $ — $ 52,442 For the Nine Months Ended September 30, 2016 Total Amount Non-Controlling Interest % in Apollo Operating Group Allocated to Non-Controlling Interest in Apollo Operating Group (1) Allocated to Apollo Global Management, LLC RSUs, share options and restricted share awards $ 55,260 — % $ — $ 55,260 AHL Awards 9,441 53.9 5,093 4,348 Other equity-based compensation awards 9,502 53.9 5,127 4,375 Total equity-based compensation $ 74,203 10,220 63,983 Less other equity-based compensation awards (2) (10,220 ) (10,073 ) Capital increase related to equity-based compensation $ — $ 53,910 (1) Calculated based on average ownership percentage for the period considering Class A share issuances during the period. (2) Includes equity-based compensation reimbursable by certain funds and distributions related to forfeited RSUs. |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The table below summarizes the reduction of Class A shares to be issued to employees in connection with net share settlements under the 2007 Equity Plan and issuances of Class A shares in settlement of vested RSUs and share options for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Reduction of Class A shares issued (1) 1,196,549 2,407,275 Class A shares issued 2,097,249 4,246,760 Gross value of shares (2) $ 76,803 $ 96,437 (1) Cash paid for tax liabilities associated with net share settlement was $28.0 million and $35.3 million for the nine months ended September 30, 2017 and 2016 , respectively. (2) Based on the closing price of a Class A share at the time of issuance. The following table presents the related unamortized deferred equity-based compensation recorded in other assets, as well as liabilities for restricted share awards expected to be granted recorded in other liabilities, both within the condensed consolidated statements of financial condition: As of As of Unamortized deferred equity-based compensation $ 90,289 $ 42,619 Liabilities for restricted share awards expected to be granted 80,283 40,472 |
Schedule of Distributions | In addition to other distributions such as payments pursuant to the tax receivable agreement, the table below presents information regarding the quarterly distributions which were made at the sole discretion of the manager of the Company during 2017 and 2016 (in millions, except per share data): Distribution Declaration Date Distribution per Class A Share Distribution Payment Date Distribution to Class A Shareholders Distribution to Non-Controlling Interest Holders in the Apollo Operating Group Total Distributions from Apollo Operating Group Distribution Equivalents on Participating Securities February 3, 2016 $ 0.28 February 29, 2016 $ 51.4 $ 60.5 $ 111.9 $ 2.1 May 6, 2016 0.25 May 31, 2016 46.0 54.0 100.0 1.8 August 3, 2016 0.37 August 31, 2016 68.4 79.9 148.3 2.4 October 28, 2016 0.35 November 30, 2016 64.9 75.4 140.3 2.1 For the year ended December 31, 2016 $ 1.25 $ 230.7 $ 269.8 $ 500.5 $ 8.4 February 3, 2017 $ 0.45 February 28, 2017 $ 84.2 $ 97.0 $ 181.2 $ 2.9 April 13, 2017 (1) — April 13, 2017 — 20.5 20.5 — April 28, 2017 0.49 May 31, 2017 94.5 102.9 197.4 3.3 August 2, 2017 0.52 August 31, 2017 100.6 108.8 209.4 3.2 For the nine months ended September 30, 2017 $ 1.46 $ 279.3 $ 329.2 $ 608.5 $ 9.4 (1) On April 13, 2017, the Company made a $0.10 per AOG Unit pro rata distribution to the Non-Controlling Interest holders in the Apollo Operating Group in connection with a payment made under the tax receivable agreement. See note 13 for more information regarding the tax receivable agreement. |
Net Income Loss Attributable to Non-Controlling Interests | The table below presents equity interests in Apollo’s consolidated, but not wholly-owned, subsidiaries and funds. Net income and comprehensive income attributable to Non-Controlling Interests consisted of the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Net income (loss) attributable to Non-Controlling Interests in consolidated entities: Interest in management companies and a co-investment vehicle (1) $ 1,637 $ 260 $ 3,264 $ 4,804 Other consolidated entities (589 ) (482 ) 5,703 (913 ) Net income (loss) attributable to Non-Controlling Interests in consolidated entities $ 1,048 $ (222 ) $ 8,967 $ 3,891 Net income attributable to Non-Controlling Interests in the Apollo Operating Group: Net income $ 434,363 $ 234,718 $ 982,335 $ 575,960 Net (income) loss attributable to Non-Controlling Interests in consolidated entities (1,048 ) 222 (8,967 ) (3,891 ) Net income after Non-Controlling Interests in consolidated entities 433,315 234,940 973,368 572,069 Adjustments: Income tax provision (2) 16,542 29,667 54,926 62,508 NYC UBT and foreign tax benefit (3) (2,595 ) (4,419 ) (7,014 ) (11,715 ) Net income in non-Apollo Operating Group entities 16 66 18 85 Net income attributable to Preferred Shareholders (4,383 ) — (9,155 ) — Total adjustments 9,580 25,314 38,775 50,878 Net income after adjustments 442,895 260,254 1,012,143 622,947 Weighted average ownership percentage of Apollo Operating Group 52.0 % 53.9 % 52.7 % 54.0 % Net income attributable to Non-Controlling Interests in Apollo Operating Group $ 230,363 $ 140,321 $ 533,540 $ 336,186 Net Income attributable to Non-Controlling Interests $ 231,411 $ 140,099 $ 542,507 $ 340,077 Other comprehensive income attributable to Non-Controlling Interests 4,999 545 8,188 1,462 Comprehensive Income Attributable to Non-Controlling Interests $ 236,410 $ 140,644 $ 550,695 $ 341,539 (1) Reflects the remaining interest held by certain individuals who receive an allocation of income from certain of the credit funds managed by Apollo. (2) Reflects all taxes recorded in our condensed consolidated statements of operations. Of this amount, U.S. federal, state, and local corporate income taxes attributable to APO Corp. are added back to income of the Apollo Operating Group before calculating Non-Controlling Interests as the income allocable to the Apollo Operating Group is not subject to such taxes. (3) Reflects NYC UBT and foreign taxes that are attributable to the Apollo Operating Group and its subsidiaries related to its operations in the U.S. as partnerships and in non-U.S. jurisdictions as corporations. As such, these amounts are considered in the income attributable to the Apollo Operating Group. |
RELATED PARTY TRANSACTIONS AN35
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Due from related parties and due to related parties are comprised of the following: As of As of Due from Related Parties: Due from private equity funds $ 17,883 $ 19,089 Due from portfolio companies 40,028 34,339 Due from credit funds 136,856 112,516 Due from Contributing Partners, employees and former employees 66,344 72,305 Due from real assets funds 26,241 16,604 Total Due from Related Parties $ 287,352 $ 254,853 Due to Related Parties: Due to Managing Partners and Contributing Partners $ 524,593 $ 506,542 Due to private equity funds 43,059 56,880 Due to credit funds 75,463 66,859 Due to real assets funds 286 281 Distributions payable to employees — 7,564 Total Due to Related Parties $ 643,401 $ 638,126 |
Sub-Advisory Fee Schedule | With limited exceptions, the sub-advisory fee arrangements between the Company and Athene and the fee arrangements with respect to Athene Assets Directly Invested are presented in the following table: As of Athene North American Accounts sub-advised by AAM (1) : Assets up to $10.0 billion 0.40 % Assets between $10.0 billion to $12.4 billion 0.35 % Assets between $12.4 billion to $16.0 billion 0.40 % Assets in excess of $16.0 billion 0.35 % Athene European Accounts sub-advised by AAME 0.35 % Athene Assets Directly Invested (2) 0% to 1.75% (1) The sub-advisory fees with respect to the assets in the Athene North American Accounts are in addition to the fee earned by the Company described above. (2) With respect to Athene Assets Directly Invested, Apollo earns carried interest of 0% to 20% in addition to the fees presented above. The fees set forth above with respect to the Athene Assets Directly Invested, and the carried interest that Apollo earns on such assets, are in addition to the fees described above, with certain limited exceptions. |
Interest Income and Interest Expense | The following table presents the interest expense incurred related to the Company’s debt for the three and nine months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Interest Expense: (1) 2013 AMH Term Facility $ 2,150 $ 1,696 $ 6,109 $ 6,408 2024 Senior Notes 5,163 5,192 15,489 15,572 2026 Senior Notes 5,628 5,630 16,885 7,744 AMI Term Facilities 362 314 1,014 781 Total Interest Expense $ 13,303 $ 12,832 $ 39,497 $ 30,505 (1) Debt issuance costs incurred in connection with the Term Facility, the 2024 Senior Notes and the 2026 Senior Notes are amortized into interest expense over the term of the debt arrangement. The following table presents the carried interest income earned from AAA Investments: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Carried interest income from AAA Investments, net (1) $ 14.5 $ 5.5 $ 27.0 $ 16.5 (1) Net of related profit sharing expense. The following table presents the revenues earned in aggregate from Athene and AGER: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Revenues earned in aggregate from Athene and AGER, net (1) $ 181.0 $ 111.7 $ 434.2 $ 322.6 (1) Consisting of management fees, sub-advisory fees, carried interest income from Athene and AGER (net of related profit sharing expense) and changes in the market value of the Athene Holding shares owned directly by Apollo. These amounts exclude the deferred revenue recognized as management fees associated with the vesting of AHL Awards granted to employees of Apollo as further described in note 11 . The following table presents carried interest receivable and profit sharing payable from AAA Investments: As of As of Carried interest receivable $ 187,106 $ 229,829 Profit sharing payable 53,689 80,579 |
Schedule of Other Ownership Interests | The Company’s economic ownership interest in Athene Holding is comprised of the following: As of (1) As of (1) Indirect interest in Athene Holding: Interest in AAA 2.2 % 2.2 % Plus: Interest in AAA Investments 0.1 % 0.1 % Total Interest in AAA and AAA Investments 2.3 % 2.3 % Multiplied by: AAA Investments’ interest in Athene Holding 26.2 % 39.4 % Indirect interest in Athene Holding 0.5 % 0.9 % Plus: Direct interest in Athene Holding 8.3 % 8.0 % Total interest in Athene Holding 8.8 % 8.9 % (1) Ownership interest percentages are based on approximate share count as of the reporting date. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Approximate Aggregate Minimum Future Payments Required for Operating Leases | As of September 30, 2017 , the approximate aggregate minimum future payments required for operating leases were as follows: Remaining 2017 2018 2019 2020 2021 Thereafter Total Aggregate minimum future payments $ 9,266 $ 34,643 $ 33,702 $ 15,563 $ 6,055 $ 13,313 $ 112,542 |
Summary of Fixed and Determinable Payments | As of September 30, 2017 , fixed and determinable payments due in connection with these obligations were as follows: Remaining 2017 2018 2019 2020 2021 Thereafter Total Other long-term obligations $ 8,291 $ 12,413 $ 3,525 $ 1,956 $ 1,956 $ 1,611 $ 29,752 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data for Reportable Segments | The following tables present financial data for Apollo’s reportable segments as of and for the nine months ended September 30, 2017 and 2016 . Prior period financial data has been updated to conform to the current presentation. As of and for the Nine Months Ended September 30, 2017 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 230,752 $ 516,083 $ 54,560 $ 801,395 Advisory and transaction fees from related parties, net 41,646 10,484 2,775 54,905 Carried interest income (loss) from related parties: Unrealized (1) 351,836 37,422 (1,639 ) 387,619 Realized 313,817 120,186 12,224 446,227 Total carried interest income from related parties 665,653 157,608 10,585 833,846 Total Revenues (2) 938,051 684,175 67,920 1,690,146 Expenses: Compensation and benefits: Salary, bonus and benefits 93,230 173,153 27,905 294,288 Equity-based compensation 21,134 28,255 1,980 51,369 Profit sharing expense: Unrealized 117,025 17,408 (2,848 ) 131,585 Realized 145,783 51,168 6,528 203,479 Realized: Equity-based 1,270 1,387 — 2,657 Total profit sharing expense 264,078 69,963 3,680 337,721 Total compensation and benefits 378,442 271,371 33,565 683,378 Non-compensation expenses: General, administrative and other 53,676 99,559 15,299 168,534 Placement fees 3,732 8,828 — 12,560 Total non-compensation expenses 57,408 108,387 15,299 181,094 Total Expenses (2) 435,850 379,758 48,864 864,472 Other Income: Income from equity method investments 81,951 20,561 1,935 104,447 Net gains from investment activities 11,255 91,365 — 102,620 Net interest loss (12,952 ) (18,978 ) (3,634 ) (35,564 ) Other income, net 25,915 16,888 2,347 45,150 Total Other Income (2) 106,169 109,836 648 216,653 Non-Controlling Interests — (3,244 ) — (3,244 ) Economic Income (2) $ 608,370 $ 411,009 $ 19,704 $ 1,039,083 Total Assets (2) $ 2,660,333 $ 2,772,296 $ 226,273 $ 5,658,902 (1) Included in unrealized carried interest income (loss) from related parties for the nine months ended September 30, 2017 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses, other income and total assets for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses, total consolidated other income (loss) and total assets. For the Nine Months Ended September 30, 2016 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 242,981 $ 445,149 $ 42,921 $ 731,051 Advisory and transaction fees from related parties, net 87,615 10,058 5,476 103,149 Carried interest income (loss) from related parties: Unrealized (1) 136,529 150,720 (4,151 ) 283,098 Realized 10,110 105,698 11,938 127,746 Total carried interest income from related parties 146,639 256,418 7,787 410,844 Total Revenues (2) 477,235 711,625 56,184 1,245,044 Expenses: Compensation and benefits: Salary, bonus and benefits 96,170 151,464 26,062 273,696 Equity-based compensation 20,795 25,694 2,107 48,596 Profit sharing expense: Unrealized 29,403 61,626 (1,400 ) 89,629 Realized 7,398 62,764 8,240 78,402 Total profit sharing expense 36,801 124,390 6,840 168,031 Total compensation and benefits 153,766 301,548 35,009 490,323 Non-compensation expenses: General, administrative and other 54,400 95,193 16,239 165,832 Placement fees 2,409 2,113 21 4,543 Total non-compensation expenses 56,809 97,306 16,260 170,375 Total Expenses (2) 210,575 398,854 51,269 660,698 Other Income (Loss): Income from equity method investments 40,311 21,824 1,631 63,766 Net gains from investment activities 3,542 45,819 — 49,361 Net interest loss (9,868 ) (14,542 ) (2,895 ) (27,305 ) Other income (loss), net 320 (5,512 ) (14 ) (5,206 ) Total Other Income (Loss) (2) 34,305 47,589 (1,278 ) 80,616 Non-Controlling Interests — (5,070 ) — (5,070 ) Economic Income (2) $ 300,965 $ 355,290 $ 3,637 $ 659,892 (1) Included in unrealized carried interest income (loss) from related parties for the nine months ended September 30, 2016 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses and other income for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses and total consolidated other income (loss). The following tables present financial data for Apollo’s reportable segments as of and for the three months ended September 30, 2017 and 2016 . Prior period financial data has been updated to conform to the current presentation. As of and for the Three Months Ended September 30, 2017 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 76,079 $ 187,885 $ 18,470 $ 282,434 Advisory and transaction fees from related parties, net 10,572 4,219 1,418 16,209 Carried interest income (loss) from related parties: Unrealized (1) 286,589 4,179 (5,169 ) 285,599 Realized 21,859 32,131 6,985 60,975 Total carried interest income from related parties 308,448 36,310 1,816 346,574 Total Revenues (2) 395,099 228,414 21,704 645,217 Expenses: Compensation and benefits: Salary, bonus and benefits 31,467 59,027 10,513 101,007 Equity-based compensation 6,335 9,925 798 17,058 Profit sharing expense: Unrealized 96,992 2,266 (4,812 ) 94,446 Realized 17,394 14,643 3,636 35,673 Realized: Equity-based (3) 808 518 — 1,326 Total profit sharing expense 115,194 17,427 (1,176 ) 131,445 Total compensation and benefits 152,996 86,379 10,135 249,510 Non-compensation expenses: General, administrative and other 19,699 35,709 5,520 60,928 Placement fees 2,257 3,140 — 5,397 Total non-compensation expenses 21,956 38,849 5,520 66,325 Total Expenses (2) 174,952 125,228 15,655 315,835 Other Income: Income (loss) from equity method investments 39,875 8,222 (83 ) 48,014 Net gains from investment activities 7,959 60,570 — 68,529 Net interest loss (4,374 ) (5,972 ) (1,163 ) (11,509 ) Other income, net 7,344 16,318 2,044 25,706 Total Other Income (2) 50,804 79,138 798 130,740 Non-Controlling Interests — (1,751 ) — (1,751 ) Economic Income (2) $ 270,951 $ 180,573 $ 6,847 $ 458,371 Total Assets (2) $ 2,660,333 $ 2,772,296 $ 226,273 $ 5,658,902 (1) Included in unrealized carried interest income (loss) from related parties for three months ended September 30, 2017 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses, other income and total assets for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses, total consolidated other income and total assets. (3) Relates to amortization of restricted share awards granted under certain profit sharing arrangements (see note 2 ). The following table presents the related unamortized deferred equity-based compensation recorded in other assets, as well as liabilities for restricted share awards expected to be granted recorded in other liabilities, both within the condensed consolidated statements of financial condition: As of As of Unamortized deferred equity-based compensation $ 90,289 $ 42,619 Liabilities for restricted share awards expected to be granted 80,283 40,472 For the Three Months Ended September 30, 2016 Private Equity Segment Credit Segment Real Assets Segment Total Reportable Segments Revenues: Management fees from related parties $ 91,545 $ 151,386 $ 15,554 $ 258,485 Advisory and transaction fees from related parties, net 26,601 2,612 1,038 30,251 Carried interest income from related parties: Unrealized (1) 75,019 91,502 963 167,484 Realized 9,844 20,500 5,499 35,843 Total carried interest income from related parties 84,863 112,002 6,462 203,327 Total Revenues (2) 203,009 266,000 23,054 492,063 Expenses: Compensation and benefits: Salary, bonus and benefits 32,532 45,143 9,129 86,804 Equity-based compensation 6,645 8,834 675 16,154 Profit sharing expense: Unrealized 19,234 36,809 432 56,475 Realized 7,266 8,988 4,062 20,316 Total profit sharing expense 26,500 45,797 4,494 76,791 Total compensation and benefits 65,677 99,774 14,298 179,749 Non-compensation expenses: General, administrative and other 18,118 29,161 4,674 51,953 Placement fees 330 723 — 1,053 Total non-compensation expenses 18,448 29,884 4,674 53,006 Total Expenses (2) 84,125 129,658 18,972 232,755 Other Income (Loss): Income from equity method investments 14,384 8,036 499 22,919 Net gains from investment activities 1,191 16,171 — 17,362 Net interest loss (4,188 ) (6,172 ) (1,168 ) (11,528 ) Other income (loss), net 103 (4,977 ) (29 ) (4,903 ) Total Other Income (Loss) (2) 11,490 13,058 (698 ) 23,850 Non-Controlling Interests — (510 ) — (510 ) Economic Income (2) 130,374 148,890 3,384 282,648 (1) Included in unrealized carried interest income from related parties for the three months ended September 30, 2016 was a reversal of previously realized carried interest income due to the general partner obligation to return previously distributed carried interest income. See note 13 for further details regarding the general partner obligation. (2) Refer below for a reconciliation of total revenues, total expenses and other income for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses and total consolidated other income. |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The table below summarizes the reduction of Class A shares to be issued to employees in connection with net share settlements under the 2007 Equity Plan and issuances of Class A shares in settlement of vested RSUs and share options for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Reduction of Class A shares issued (1) 1,196,549 2,407,275 Class A shares issued 2,097,249 4,246,760 Gross value of shares (2) $ 76,803 $ 96,437 (1) Cash paid for tax liabilities associated with net share settlement was $28.0 million and $35.3 million for the nine months ended September 30, 2017 and 2016 , respectively. (2) Based on the closing price of a Class A share at the time of issuance. The following table presents the related unamortized deferred equity-based compensation recorded in other assets, as well as liabilities for restricted share awards expected to be granted recorded in other liabilities, both within the condensed consolidated statements of financial condition: As of As of Unamortized deferred equity-based compensation $ 90,289 $ 42,619 Liabilities for restricted share awards expected to be granted 80,283 40,472 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles total consolidated revenues to total revenues for Apollo’s reportable segments for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Total Consolidated Revenues $ 1,740,655 $ 1,285,004 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (53,234 ) (51,275 ) Adjustments related to consolidated funds and VIEs (1) 2,725 2,800 Other (1) — 8,515 Total Reportable Segments Revenues $ 1,690,146 $ 1,245,044 (1) Represents advisory fees, management fees and carried interest income earned from consolidated VIEs which are eliminated in consolidation. Includes non-cash revenues related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative related expense reimbursements. The following table reconciles total consolidated expenses to total expenses for Apollo’s reportable segments for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Total Consolidated Expenses $ 967,997 $ 767,554 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (53,234 ) (52,980 ) Transaction-related compensation charges (1) (6,409 ) (16,799 ) Reclassification of interest expenses (39,496 ) (30,505 ) Amortization of transaction-related intangibles (1) (4,381 ) (6,608 ) Other (1) (5 ) 36 Total Reportable Segments Expenses $ 864,472 $ 660,698 (1) Represents the addition of expenses of consolidated funds and VIEs, transaction-related charges, non-cash expenses related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative expenses. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. The following table reconciles total consolidated other income to total other income for Apollo’s reportable segments for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Total Consolidated Other Income $ 264,603 $ 121,018 Reclassification of interest expense (39,496 ) (30,505 ) Adjustments related to consolidated funds and VIEs (1) (8,433 ) (2,077 ) Other (21 ) (7,820 ) Total Reportable Segments Other Income $ 216,653 $ 80,616 (1) Represents the addition of other income of consolidated funds and VIEs. The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Economic Income for the nine months ended September 30, 2017 and 2016 : For the Nine Months Ended September 30, 2017 2016 Income before income tax provision $ 1,037,261 $ 638,468 Adjustments: Net income attributable to Non-Controlling Interests in consolidated entities (8,967 ) (3,891 ) Transaction-related charges, net (1) 10,789 25,315 Total consolidation adjustments and other 1,822 21,424 Economic Income $ 1,039,083 $ 659,892 (1) Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. Equity-based compensation adjustment includes non-cash revenues and expenses related to equity awards granted by unconsolidated related parties to employees of the Company. The following table reconciles total consolidated revenues to total revenues for Apollo’s reportable segments for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Total Consolidated Revenues $ 664,232 $ 503,731 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (19,832 ) (18,217 ) Adjustments related to consolidated funds and VIEs (1) 817 937 Other (1) — 5,612 Total Reportable Segments Revenues $ 645,217 $ 492,063 (1) Represents advisory fees, management fees and carried interest income earned from consolidated VIEs which are eliminated in consolidation. Includes non-cash revenues related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative related expense reimbursements. The following table reconciles total consolidated expenses to total expenses for Apollo’s reportable segments for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Total Consolidated Expenses $ 357,483 $ 282,257 Equity awards granted by unconsolidated related parties and reimbursable expenses (1) (19,832 ) (19,688 ) Transaction-related compensation charges (1) (7,543 ) (14,276 ) Reclassification of interest expenses (13,302 ) (12,832 ) Amortization of transaction-related intangibles (1) (971 ) (2,212 ) Other (1) — (494 ) Total Reportable Segments Expenses $ 315,835 $ 232,755 (1) Represents the addition of expenses of consolidated funds and VIEs, transaction-related charges, non-cash expenses related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative expenses. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. The following table reconciles total consolidated other income to total other income for Apollo’s reportable segments for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Total Consolidated Other Income $ 144,156 $ 42,911 Reclassification of interest expense (13,302 ) (12,832 ) Adjustments related to consolidated funds and VIEs (1) (227 ) (533 ) Other 113 (5,696 ) Total Reportable Segments Other Income $ 130,740 $ 23,850 (1) Represents the addition of other income of consolidated funds and VIEs. The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Economic Income for the three months ended September 30, 2017 and 2016 : For the Three Months Ended September 30, 2017 2016 Income before income tax provision $ 450,905 $ 264,385 Adjustments: Net (income) loss attributable to Non-Controlling Interests in consolidated entities (1,048 ) 222 Transaction-related charges, net (1) 8,514 18,041 Total consolidation adjustments and other 7,466 18,263 Economic Income $ 458,371 $ 282,648 (1) Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions. Equity-based compensation adjustment includes non-cash revenues and expenses related to equity awards granted by unconsolidated related parties to employees of the Company. |
Reconciliation of Assets from Segment to Consolidated | The following table presents the reconciliation of Apollo’s total reportable segment assets to total assets as of September 30, 2017 and December 31, 2016 : As of As of Total reportable segment assets $ 5,658,902 $ 4,694,643 Adjustments (1) 1,201,452 934,910 Total assets $ 6,860,354 $ 5,629,553 (1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments. |
ORGANIZATION (Detail)
ORGANIZATION (Detail) | 9 Months Ended | |
Sep. 30, 2017holding_companySegment | Dec. 31, 2016 | |
Entity Information [Line Items] | ||
Number of segments | Segment | 3 | |
Number of holding company | holding_company | 6 | |
Economic interest | 2.30% | 2.30% |
Consolidated Entity Excluding Variable Interest Entities (VIE) | ||
Entity Information [Line Items] | ||
Economic interest | 48.10% | |
Subsidiaries | ||
Entity Information [Line Items] | ||
Economic interest | 51.90% |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Percent of returns (as much as) | 20.00% | |
Percent of eligible employee contributions | 50.00% | |
Percent of the eligible employees’ compensation | 3.00% | |
Service period | 3 years | |
Cumulative effect adjustment | $ (22,901) | |
Retained Earnings | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Cumulative effect adjustment | (22,901) | |
Accounting Standards Update 2016-09 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Deferred tax assets | 22,900 | |
Accounting Standards Update 2016-09 | Retained Earnings | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Cumulative effect adjustment | $ 22,900 | |
Level I | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Money market funds and U.S. treasury securities | $ 428,100 |
INVESTMENTS - Apollo's Investme
INVESTMENTS - Apollo's Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Investments, at fair value | $ 852,350 | $ 708,080 |
Equity method investments | 855,714 | 786,664 |
Total Investments | $ 1,708,064 | $ 1,494,744 |
INVESTMENTS - Summary of realiz
INVESTMENTS - Summary of realized and net change in unrealized gains on investments, at fair value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Realized gains on sales of investments | $ 162 | $ 472 | $ 14 | $ 375 |
Net change in unrealized gains (losses) due to changes in fair value | 68,770 | 17,274 | 102,922 | 49,912 |
Net gains from investment activities | $ 68,932 | $ 17,746 | $ 102,936 | $ 50,287 |
INVESTMENTS - Summary of Equity
INVESTMENTS - Summary of Equity Method Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 855,714 | $ 786,664 |
Private Equity Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 495,409 | 428,581 |
Private Equity Segment | Fund Eight Investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 340,300 | $ 260,900 |
% of Ownership | 2.20% | 2.20% |
Private Equity Segment | AP Alternative Assets, L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 51,800 | $ 66,800 |
Value of company's investment | 51,900 | 64,900 |
Credit Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 330,918 | 327,012 |
Credit Funds | Midcap Investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 79,900 | $ 79,500 |
% of Ownership | 4.30% | 4.30% |
Credit Funds | Apollo Investment Corporation | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 56,600 | $ 58,600 |
Value of company's investment | 54,300 | 52,100 |
Real Assets Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 29,387 | $ 31,071 |
INVESTMENTS - Equity Method Inv
INVESTMENTS - Equity Method Investment Income for Athene Holdings (Detail) - Investment in Athene Holding - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 1,763 | $ 1,272 | $ 4,448 | $ 3,039 |
Expenses | 1,426 | 1,234 | 3,320 | 2,708 |
Income before income tax provision | 337 | 38 | 1,128 | 331 |
Income tax provision (benefit) | 11 | (88) | 54 | (73) |
Net income available to Athene common shareholders | $ 326 | $ 126 | $ 1,074 | $ 404 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of days trade is open with VIE | 60 days | |
Investment in CLO | $ 46.6 | $ 41.3 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Gain Loss On Investments Of Variable Interest Entities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net gains (losses) from investment activities | $ (272) | $ 9,466 | $ 9,244 | $ 7,341 |
Net gains (losses) from debt | 635 | (7,745) | 3,319 | (9,182) |
Interest and other income | 9,977 | 11,404 | 26,420 | 34,913 |
Interest and other expenses | (9,495) | (12,325) | (27,898) | (30,255) |
Net gains from investment activities of consolidated variable interest entities | $ 845 | $ 800 | $ 11,085 | $ 2,817 |
VARIABLE INTEREST ENTITIES - Pr
VARIABLE INTEREST ENTITIES - Principal Provisions of Debt (Detail) - Consolidated Variable Interest Entities - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 983,811 | $ 792,770 |
Debt, at fair value | 972,632 | 786,545 |
VIE assets | 1,278,500 | 1,001,800 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 794,748 | $ 704,976 |
Weighted Average Interest Rate | 1.68% | 1.83% |
Weighted Average Remaining Maturity in Years | 12 years 4 months 24 days | 12 years 3 months 18 days |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 98,602 | $ 87,794 |
Weighted Average Remaining Maturity in Years | 22 years 8 months 12 days | 19 years 2 months 12 days |
Secured Borrowings | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 90,461 | $ 0 |
Weighted Average Interest Rate | 3.00% | |
Weighted Average Remaining Maturity in Years | 9 years 6 months |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Carrying Amounts of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Investments | $ 1,708,064 | $ 1,494,744 |
Variable Interest Entity, Not Primary Beneficiary | ||
Assets: | ||
Cash | 334,339 | 231,922 |
Investments | 7,389,027 | 7,253,872 |
Receivables | 68,390 | 37,541 |
Total Assets | 7,791,756 | 7,523,335 |
Liabilities: | ||
Debt and other payables | 3,089,584 | 2,818,459 |
Total Liabilities | 3,089,584 | 2,818,459 |
Apollo Exposure | 282,240 | 272,191 |
Cumulative revenues recognized if existing investments become worthless | $ 3,600,000 | $ 2,900,000 |
FAIR VALUE MEASUREMENTS OF FI48
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Narrative (Detail) - Investment in Athene Holding - Market Approach Valuation Technique - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Market price (in dollars per share) | $ 53.84 | $ 47.99 |
DLOM percent | 7.00% | 9.50% |
Holding period | 1 year 5 months 8 days | 23 months 9 days |
Weighted average price (in dollars per share) | $ 50.19 | $ 43.43 |
FAIR VALUE MEASUREMENTS OF FI49
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Valuation of Financial Assets and Liabilities by the Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
U.S. Treasury securities, at fair value | $ 198,900 | $ 0 |
Consolidated Variable Interest Entities | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 1,170,550 | 913,827 |
Total Assets | 1,278,500 | 1,001,800 |
Liabilities | ||
Liabilities of VIEs, at fair value | 972,632 | 786,545 |
Fair Value, Measurements, Recurring | ||
Assets | ||
U.S. Treasury securities, at fair value | 198,900 | |
Investments, at fair value: | ||
Derivative assets | 439 | 1,360 |
Total Assets | 2,222,239 | 1,623,267 |
Liabilities | ||
Derivative liabilities | 1,439 | 1,167 |
Total Liabilities | 1,074,404 | 905,049 |
Cost | 198,868 | |
Fair Value, Measurements, Recurring | Consolidated Variable Interest Entities | ||
Investments, at fair value: | ||
Investments of VIEs, at fair value | 1,165,176 | 908,641 |
Investments of VIEs, valued using NAV | 5,374 | 5,186 |
Total investments of VIEs, at fair value | 1,170,550 | 913,827 |
Liabilities | ||
Liabilities of VIEs, at fair value | 985,048 | 797,600 |
Fair Value, Measurements, Recurring | Contingent Consideration Obligations | ||
Liabilities | ||
Contingent consideration obligations | 87,300 | 106,282 |
Fair Value, Measurements, Recurring | Liabilities of Consolidated Apollo Funds | ||
Liabilities | ||
Liabilities of consolidated Apollo funds | 617 | |
Fair Value, Measurements, Recurring | Investments held by Apollo Senior Loan Fund | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 1,978 | 5,378 |
Liabilities | ||
Cost | 1,827 | 5,463 |
Fair Value, Measurements, Recurring | Other Investments | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 64,726 | 45,154 |
Liabilities | ||
Cost | 62,464 | 47,690 |
Fair Value, Measurements, Recurring | Investment in Athene Holding | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 785,646 | 657,548 |
Liabilities | ||
Cost | 387,526 | 387,526 |
Fair Value, Measurements, Recurring | Total investments, at fair value | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 852,350 | 708,080 |
Liabilities | ||
Cost | 451,817 | 440,679 |
Fair Value, Measurements, Recurring | Level I | ||
Assets | ||
U.S. Treasury securities, at fair value | 198,900 | |
Investments, at fair value: | ||
Derivative assets | 0 | 0 |
Total Assets | 199,977 | 3,336 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total Liabilities | 21 | 0 |
Fair Value, Measurements, Recurring | Level I | Consolidated Variable Interest Entities | ||
Investments, at fair value: | ||
Investments of VIEs, at fair value | 0 | 0 |
Investments of VIEs, valued using NAV | 0 | 0 |
Total investments of VIEs, at fair value | 0 | 0 |
Liabilities | ||
Liabilities of VIEs, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Contingent Consideration Obligations | ||
Liabilities | ||
Contingent consideration obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Liabilities of Consolidated Apollo Funds | ||
Liabilities | ||
Liabilities of consolidated Apollo funds | 21 | |
Fair Value, Measurements, Recurring | Level I | Investments held by Apollo Senior Loan Fund | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 1,077 | 3,336 |
Fair Value, Measurements, Recurring | Level I | Other Investments | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Investment in Athene Holding | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Total investments, at fair value | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 1,077 | 3,336 |
Fair Value, Measurements, Recurring | Level II | ||
Assets | ||
U.S. Treasury securities, at fair value | 0 | |
Investments, at fair value: | ||
Derivative assets | 439 | 1,360 |
Total Assets | 1,815,921 | 1,476,550 |
Liabilities | ||
Derivative liabilities | 1,439 | 1,167 |
Total Liabilities | 974,667 | 787,712 |
Fair Value, Measurements, Recurring | Level II | Consolidated Variable Interest Entities | ||
Investments, at fair value: | ||
Investments of VIEs, at fair value | 1,029,599 | 816,167 |
Investments of VIEs, valued using NAV | 0 | 0 |
Total investments of VIEs, at fair value | 1,029,599 | 816,167 |
Liabilities | ||
Liabilities of VIEs, at fair value | 972,632 | 786,545 |
Fair Value, Measurements, Recurring | Level II | Contingent Consideration Obligations | ||
Liabilities | ||
Contingent consideration obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | Liabilities of Consolidated Apollo Funds | ||
Liabilities | ||
Liabilities of consolidated Apollo funds | 596 | |
Fair Value, Measurements, Recurring | Level II | Investments held by Apollo Senior Loan Fund | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 237 | 1,475 |
Fair Value, Measurements, Recurring | Level II | Other Investments | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | Investment in Athene Holding | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 785,646 | 657,548 |
Fair Value, Measurements, Recurring | Level II | Total investments, at fair value | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 785,883 | 659,023 |
Fair Value, Measurements, Recurring | Level III | ||
Assets | ||
U.S. Treasury securities, at fair value | 0 | |
Investments, at fair value: | ||
Derivative assets | 0 | 0 |
Total Assets | 200,967 | 138,195 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total Liabilities | 99,716 | 117,337 |
Fair Value, Measurements, Recurring | Level III | Consolidated Variable Interest Entities | ||
Investments, at fair value: | ||
Investments of VIEs, at fair value | 135,577 | 92,474 |
Investments of VIEs, valued using NAV | 0 | 0 |
Total investments of VIEs, at fair value | 135,577 | 92,474 |
Liabilities | ||
Liabilities of VIEs, at fair value | 12,416 | 11,055 |
Fair Value, Measurements, Recurring | Level III | Contingent Consideration Obligations | ||
Liabilities | ||
Contingent consideration obligations | 87,300 | 106,282 |
Fair Value, Measurements, Recurring | Level III | Liabilities of Consolidated Apollo Funds | ||
Liabilities | ||
Liabilities of consolidated Apollo funds | 0 | |
Fair Value, Measurements, Recurring | Level III | Investments held by Apollo Senior Loan Fund | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 567 | |
Fair Value, Measurements, Recurring | Level III | Investments held by Apollo Senior Loan Fund | Third Party Pricing | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 664 | |
Fair Value, Measurements, Recurring | Level III | Other Investments | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 45,154 | |
Fair Value, Measurements, Recurring | Level III | Other Investments | Third Party Pricing | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 64,726 | |
Fair Value, Measurements, Recurring | Level III | Investment in Athene Holding | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 0 | |
Fair Value, Measurements, Recurring | Level III | Investment in Athene Holding | Cost Approach Valuation Technique | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | 0 | |
Fair Value, Measurements, Recurring | Level III | Total investments, at fair value | ||
Investments, at fair value: | ||
Total investments of VIEs, at fair value | $ 65,390 | $ 45,721 |
FAIR VALUE MEASUREMENTS OF FI50
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Changes in Fair Value in Financial Assets (Detail) - Level III - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | $ 224,388 | $ 702,733 | $ 138,195 | $ 613,108 |
Purchases | 31,804 | 11,374 | 122,743 | 106,744 |
Sales of investments/distributions | (21,119) | (12,565) | (53,928) | (56,299) |
Net realized gains | 154 | 101 | 326 | 3,036 |
Changes in net unrealized gains (losses) | 1,849 | 17,223 | 9,273 | 46,853 |
Cumulative translation adjustment | 4,680 | 1,210 | 15,518 | 3,209 |
Transfer into Level III | 0 | 8,755 | 9,629 | 31,668 |
Transfer out of Level III | (40,789) | (16,915) | (40,789) | (36,403) |
Balance, End of Period | 200,967 | 711,916 | 200,967 | 711,916 |
Gains on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 58 | 17,382 | (341) | 49,314 |
Unrealized gains (losses) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 9,351 | |||
Consolidated Variable Interest Entities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 170,666 | 112,690 | 92,474 | 100,941 |
Purchases | 21,729 | 11,040 | 107,969 | 60,832 |
Sales of investments/distributions | (21,119) | (11,204) | (53,920) | (54,496) |
Net realized gains | 154 | 86 | 340 | 3,132 |
Changes in net unrealized gains (losses) | 1,791 | (215) | 9,600 | (2,629) |
Cumulative translation adjustment | 3,145 | 1,004 | 10,334 | 2,469 |
Transfer into Level III | 0 | 8,755 | 9,569 | 30,173 |
Transfer out of Level III | (40,789) | (15,622) | (40,789) | (33,888) |
Balance, End of Period | 135,577 | 106,534 | 135,577 | 106,534 |
Consolidated Variable Interest Entities | Gains on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 0 | 0 | 0 | 0 |
Consolidated Variable Interest Entities | Unrealized gains (losses) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 1,330 | (358) | 9,351 | 441 |
Investments held by Apollo Senior Loan Fund | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 624 | 2,853 | 567 | 1,634 |
Purchases | 0 | 0 | 1,382 | |
Sales of investments/distributions | 0 | (1,361) | (8) | (1,803) |
Net realized gains | 15 | (14) | (96) | |
Changes in net unrealized gains (losses) | 40 | 107 | 59 | 224 |
Cumulative translation adjustment | 0 | 0 | 0 | 0 |
Transfer into Level III | 0 | 60 | 1,495 | |
Transfer out of Level III | 0 | (1,293) | (2,515) | |
Balance, End of Period | 664 | 321 | 664 | 321 |
Investments held by Apollo Senior Loan Fund | Gains on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 40 | 51 | 45 | 56 |
Investments held by Apollo Senior Loan Fund | Consolidated Variable Interest Entities | Unrealized gains (losses) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 53,098 | 44,753 | 45,154 | 434 |
Purchases | 10,075 | 334 | 14,774 | 44,530 |
Sales of investments/distributions | 0 | 0 | 0 | 0 |
Net realized gains | 0 | 0 | 0 | 0 |
Changes in net unrealized gains (losses) | 18 | 939 | (386) | 528 |
Cumulative translation adjustment | 1,535 | 206 | 5,184 | 740 |
Transfer into Level III | 0 | 0 | 0 | 0 |
Transfer out of Level III | 0 | 0 | 0 | |
Balance, End of Period | 64,726 | 46,232 | 64,726 | 46,232 |
Other Investments | Gains on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 18 | 939 | (386) | 528 |
Other Investments | Consolidated Variable Interest Entities | Unrealized gains (losses) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | $ 0 | 0 | 0 | 0 |
Investment in Athene Holding | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 542,437 | 510,099 | ||
Purchases | 0 | 0 | ||
Sales of investments/distributions | 0 | 0 | ||
Net realized gains | 0 | 0 | ||
Changes in net unrealized gains (losses) | 16,392 | 48,730 | ||
Cumulative translation adjustment | 0 | 0 | ||
Transfer into Level III | 0 | 0 | ||
Transfer out of Level III | 0 | 0 | ||
Balance, End of Period | 558,829 | 558,829 | ||
Investment in Athene Holding | Gains on investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 16,392 | 48,730 | ||
Investment in Athene Holding | Consolidated Variable Interest Entities | Unrealized gains (losses) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | $ 0 | $ 0 | ||
Third Party Pricing | Investments held by Apollo Senior Loan Fund | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 567 | |||
Transfer out of Level III | 0 | |||
Third Party Pricing | Other Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 45,154 | |||
Other Valuation Technique | Other Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Transfer out of Level III | $ 0 |
FAIR VALUE MEASUREMENTS OF FI51
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Changes in Fair Value in Financial Liabilities (Detail) - Level III - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | $ 98,907 | $ 82,638 | $ 117,337 | $ 90,990 |
Additions | 0 | 0 | 97 | 0 |
Payments/extinguishment | (6,776) | (3,109) | (23,691) | (10,096) |
Net realized gains | (10) | 0 | ||
Changes in net unrealized (gains) losses | 7,585 | 13,497 | 5,983 | 12,132 |
Balance, End of Period | 99,716 | 93,026 | 99,716 | 93,026 |
Contingent Consideration Obligations | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 86,900 | 70,967 | 106,282 | 79,579 |
Additions | 0 | 0 | 0 | 0 |
Payments/extinguishment | (6,776) | (3,109) | (23,597) | (10,096) |
Net realized gains | 0 | 0 | ||
Changes in net unrealized (gains) losses | 7,176 | 13,361 | 4,615 | 11,736 |
Balance, End of Period | 87,300 | 81,219 | 87,300 | 81,219 |
Unrealized gains (losses) | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized (gains) losses | 409 | 136 | 1,361 | 396 |
Unrealized gains (losses) | Contingent Consideration Obligations | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized (gains) losses | 0 | 0 | 0 | 0 |
Consolidated Variable Interest Entities | Liabilities of Consolidated VIEs | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 12,007 | 11,671 | 11,055 | 11,411 |
Additions | 0 | 0 | 0 | 0 |
Payments/extinguishment | 0 | 0 | 0 | 0 |
Net realized gains | 0 | 0 | ||
Changes in net unrealized (gains) losses | 409 | 136 | 1,361 | 396 |
Balance, End of Period | 12,416 | 11,807 | 12,416 | 11,807 |
Consolidated Variable Interest Entities | Unrealized gains (losses) | Liabilities of Consolidated VIEs | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized (gains) losses | $ 409 | $ 136 | 1,361 | $ 396 |
Liabilities of Consolidated Apollo Funds | Liabilities of Consolidated VIEs | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 0 | |||
Additions | 97 | |||
Payments/extinguishment | (94) | |||
Net realized gains | (10) | |||
Changes in net unrealized (gains) losses | $ 7 |
FAIR VALUE MEASUREMENTS OF FI52
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Quantitative Inputs and Assumptions used for Financial Assets and Liabilities Categories (Detail) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Contingent Consideration Obligations | Income Approach Valuation Technique | ||||||
Fair Value Inputs, Quantitative Information [Abstract] | ||||||
Discount rate | 17.30% | |||||
Contingent Consideration Obligations | Minimum | Income Approach Valuation Technique | ||||||
Fair Value Inputs, Quantitative Information [Abstract] | ||||||
Discount rate | 13.00% | |||||
Contingent Consideration Obligations | Maximum | Income Approach Valuation Technique | ||||||
Fair Value Inputs, Quantitative Information [Abstract] | ||||||
Discount rate | 17.30% | |||||
Consolidated Variable Interest Entities | ||||||
Financial Assets | ||||||
Investments, at fair value | $ 1,170,550 | $ 913,827 | ||||
Fair Value, Measurements, Recurring | Investments held by Apollo Senior Loan Fund | ||||||
Financial Assets | ||||||
Investments, at fair value | 1,978 | 5,378 | ||||
Fair Value, Measurements, Recurring | Consolidated Variable Interest Entities | ||||||
Financial Assets | ||||||
Investments, at fair value | 1,170,550 | 913,827 | ||||
Level III | ||||||
Financial Assets | ||||||
Assets | 200,967 | 138,195 | $ 224,388 | $ 711,916 | $ 702,733 | $ 613,108 |
Financial Liabilities | ||||||
Liabilities | 99,716 | 117,337 | 98,907 | 93,026 | 82,638 | 90,990 |
Level III | Contingent Consideration Obligations | ||||||
Financial Liabilities | ||||||
Liabilities | 87,300 | 106,282 | 86,900 | 81,219 | 70,967 | 79,579 |
Level III | Contingent Consideration Obligations | Income Approach Valuation Technique | ||||||
Financial Liabilities | ||||||
Liabilities | $ 87,300 | $ 106,282 | ||||
Level III | Contingent Consideration Obligations | Weighted Average | Income Approach Valuation Technique | ||||||
Fair Value Inputs, Quantitative Information [Abstract] | ||||||
Discount rate | 17.30% | 17.20% | ||||
Level III | Investments held by Apollo Senior Loan Fund | ||||||
Financial Assets | ||||||
Assets | $ 664 | $ 567 | 624 | 321 | 2,853 | 1,634 |
Level III | Investments held by Apollo Senior Loan Fund | Third Party Pricing | ||||||
Financial Assets | ||||||
Assets | 567 | |||||
Level III | Consolidated Variable Interest Entities | ||||||
Financial Assets | ||||||
Assets | 135,577 | 92,474 | 170,666 | 106,534 | 112,690 | 100,941 |
Level III | Consolidated Variable Interest Entities | Liabilities of consolidated VIEs | ||||||
Financial Liabilities | ||||||
Liabilities | 12,416 | 11,055 | $ 12,007 | $ 11,807 | $ 11,671 | $ 11,411 |
Level III | Consolidated Variable Interest Entities | Liabilities of consolidated VIEs | Other Valuation Technique | ||||||
Financial Liabilities | ||||||
Liabilities | 12,416 | 11,055 | ||||
Level III | Consolidated Variable Interest Entities | Bank Debt Term Loans | Third Party Pricing | ||||||
Financial Assets | ||||||
Assets | 4,701 | |||||
Level III | Consolidated Variable Interest Entities | Corporate Loans/Bonds | Third Party Pricing | ||||||
Financial Assets | ||||||
Assets | 13,548 | 15,496 | ||||
Level III | Consolidated Variable Interest Entities | Common Stock | Book Value Multiple | ||||||
Financial Assets | ||||||
Assets | $ 122,029 | |||||
Level III | Consolidated Variable Interest Entities | Common Stock | Income Approach Valuation Technique | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Book value multiple | 0.80 | |||||
Financial Assets | ||||||
Assets | 72,277 | |||||
Fair Value Inputs, Quantitative Information [Abstract] | ||||||
Discount rate | 12.80% | |||||
Level III | Consolidated Variable Interest Entities | Common Stock | Weighted Average | Income Approach Valuation Technique | ||||||
Fair Value Inputs, Quantitative Information [Abstract] | ||||||
Discount rate | 12.80% | |||||
Level III | Fair Value, Measurements, Recurring | Investments held by Apollo Senior Loan Fund | ||||||
Financial Assets | ||||||
Investments, at fair value | 567 | |||||
Level III | Fair Value, Measurements, Recurring | Investments held by Apollo Senior Loan Fund | Third Party Pricing | ||||||
Financial Assets | ||||||
Investments, at fair value | $ 664 | |||||
Level III | Fair Value, Measurements, Recurring | Other Investments | Third Party Pricing | ||||||
Financial Assets | ||||||
Investments, at fair value | 47,602 | |||||
Level III | Fair Value, Measurements, Recurring | Other Investments | Other Valuation Technique | ||||||
Financial Assets | ||||||
Investments, at fair value | 17,124 | |||||
Level III | Fair Value, Measurements, Recurring | Consolidated Variable Interest Entities | ||||||
Financial Assets | ||||||
Investments, at fair value | $ 135,577 | $ 92,474 |
CARRIED INTEREST RECEIVABLE - C
CARRIED INTEREST RECEIVABLE - Carried Interest Receivable from Private Equity and Capital Markets Funds (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Line Items] | ||
Total carried interest receivable | $ 1,577,984 | $ 1,257,105 |
Private Equity | ||
Receivables [Line Items] | ||
Total carried interest receivable | 1,128,460 | 798,465 |
Credit | ||
Receivables [Line Items] | ||
Total carried interest receivable | 413,990 | 426,114 |
Real Assets | ||
Receivables [Line Items] | ||
Total carried interest receivable | $ 35,534 | $ 32,526 |
CARRIED INTEREST RECEIVABLE -54
CARRIED INTEREST RECEIVABLE - Carried Interest Receivable Balance (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Carried Interest Receivables [Roll Forward] | |
Carried interest receivable, beginning balance | $ 1,257,105 |
Change in fair value of funds | 828,380 |
Fund distributions to the Company | (507,501) |
Carried interest receivable, ending balance | 1,577,984 |
Private Equity | |
Carried Interest Receivables [Roll Forward] | |
Carried interest receivable, beginning balance | 798,465 |
Change in fair value of funds | 651,808 |
Fund distributions to the Company | (321,813) |
Carried interest receivable, ending balance | 1,128,460 |
Credit | |
Carried Interest Receivables [Roll Forward] | |
Carried interest receivable, beginning balance | 426,114 |
Change in fair value of funds | 165,987 |
Fund distributions to the Company | (178,111) |
Carried interest receivable, ending balance | 413,990 |
Real Assets | |
Carried Interest Receivables [Roll Forward] | |
Carried interest receivable, beginning balance | 32,526 |
Change in fair value of funds | 10,585 |
Fund distributions to the Company | (7,577) |
Carried interest receivable, ending balance | $ 35,534 |
PROFIT SHARING PAYABLE - Summar
PROFIT SHARING PAYABLE - Summary of Profit Sharing (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Profit Sharing Payable Summary [Line Items] | ||
Profit sharing payable | $ 710,873 | $ 550,148 |
Private Equity | ||
Profit Sharing Payable Summary [Line Items] | ||
Profit sharing payable | 427,456 | 268,170 |
Credit | ||
Profit Sharing Payable Summary [Line Items] | ||
Profit sharing payable | 269,233 | 268,855 |
Real Assets | ||
Profit Sharing Payable Summary [Line Items] | ||
Profit sharing payable | $ 14,184 | $ 13,123 |
PROFIT SHARING PAYABLE - Rollfo
PROFIT SHARING PAYABLE - Rollforward Summary of Profit Sharing (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Profit Sharing Payable Rollforward [Roll Forward] | ||
Beginning balance | $ 550,148 | |
Profit sharing expense | 344,470 | |
Payments/other | (183,745) | |
Ending balance | 710,873 | |
Loans due upon liquidation of fund | 43,900 | $ 39,300 |
Private Equity | ||
Profit Sharing Payable Rollforward [Roll Forward] | ||
Beginning balance | 268,170 | |
Profit sharing expense | 266,881 | |
Payments/other | (107,595) | |
Ending balance | 427,456 | |
Credit | ||
Profit Sharing Payable Rollforward [Roll Forward] | ||
Beginning balance | 268,855 | |
Profit sharing expense | 73,909 | |
Payments/other | (73,531) | |
Ending balance | 269,233 | |
Real Assets | ||
Profit Sharing Payable Rollforward [Roll Forward] | ||
Beginning balance | 13,123 | |
Profit sharing expense | 3,680 | |
Payments/other | (2,619) | |
Ending balance | $ 14,184 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Income tax (provision) benefit | $ 16,542,000 | $ 29,667,000 | $ 54,926,000 | $ 62,508,000 |
Effective tax rate | 3.70% | 11.20% | 5.30% | 9.80% |
Unrecognized tax benefits | $ 0 | $ 0 | ||
Period of recognition for tax intangibles | 15 years | |||
Common Class A Shares | ||||
Class of Stock [Line Items] | ||||
Exchange agreement conversion ratio | 1 |
INCOME TAXES - Change in Deferr
INCOME TAXES - Change in Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Increase in Deferred Tax Asset | $ 46,539 | $ 1,807 |
Increase in Tax Receivable Agreement Liability | 35,946 | 1,519 |
Increase to Additional Paid In Capital | $ 10,593 | $ 288 |
DEBT - Summary of Debt (Detail)
DEBT - Summary of Debt (Detail) € in Thousands, $ in Thousands | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 1,361,044 | $ 1,352,447 | |
Fair Value | 1,399,267 | 1,357,290 | |
2013 AMH Credit Facilities - Term Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 299,627 | 299,543 | |
Fair Value | $ 298,875 | $ 298,500 | |
Annualized Weighted Average Interest Rate | 2.28% | 2.28% | 1.82% |
Unamortized debt issuance cost | $ 373 | $ 457 | |
2024 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 495,697 | 495,208 | |
Fair Value | $ 510,604 | $ 498,336 | |
Annualized Weighted Average Interest Rate | 4.00% | 4.00% | 4.00% |
Unamortized debt issuance cost | $ 3,637 | $ 4,051 | |
2026 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 495,550 | 495,165 | |
Fair Value | $ 519,618 | $ 497,923 | |
Annualized Weighted Average Interest Rate | 4.40% | 4.40% | 4.40% |
Unamortized debt issuance cost | $ 4,069 | $ 4,420 | |
2014 AMI Term Facility I | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 16,199 | 14,449 | |
Fair Value | $ 16,199 | $ 14,449 | |
Annualized Weighted Average Interest Rate | 2.00% | 2.00% | 2.00% |
Credit facility borrowing capacity | € | € 13,686 | ||
2014 AMI Term Facility II | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 18,283 | $ 16,306 | |
Fair Value | $ 18,283 | $ 16,306 | |
Annualized Weighted Average Interest Rate | 1.75% | 1.75% | 1.75% |
Credit facility borrowing capacity | € | € 15,475 | ||
2016 AMI Term Facility I | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 20,050 | $ 17,852 | |
Fair Value | $ 20,050 | $ 17,852 | |
Annualized Weighted Average Interest Rate | 1.75% | 1.75% | 1.75% |
Credit facility borrowing capacity | € | € 16,970 | ||
2016 AMI Term Facility II | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 15,638 | $ 13,924 | |
Fair Value | $ 15,638 | $ 13,924 | |
Annualized Weighted Average Interest Rate | 2.00% | 2.00% | 2.00% |
Credit facility borrowing capacity | € | € 13,236 |
DEBT - Narrative (Detail)
DEBT - Narrative (Detail) | Mar. 11, 2016 | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | May 27, 2016USD ($) | May 30, 2014USD ($) | Dec. 18, 2013USD ($) |
Debt Instrument [Line Items] | |||||||
Debt | $ 1,361,044,000 | $ 1,352,447,000 | |||||
Principal payments on debt | 30,000 | $ 200,000,000 | |||||
2013 AMH Credit Facilities - Term Facility | |||||||
Debt Instrument [Line Items] | |||||||
Minimum carrying amount of assets under management | $ 40,000,000,000 | ||||||
Leverage ratio | 4 | ||||||
Term Loan | 2013 AMH Credit Facilities - Term Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt | $ 750,000,000 | ||||||
Term Loan held by affiliate | 2013 AMH Credit Facilities - Term Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 271,700,000 | ||||||
Debt face amount | $ 300,000,000 | ||||||
Debt interest rate | 2.45% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt | $ 500,000,000 | ||||||
Leverage ratio | 3.75 | ||||||
Revolving Credit Facility | 2013 AMH Credit Facilities - Term Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt | $ 500,000,000 | ||||||
Extension of debt | 2 years | ||||||
Commitment fee percent | 0.125% | ||||||
Line of Credit | 2013 AMH Credit Facilities - Term Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt | $ 299,627,000 | 299,543,000 | |||||
Principal payments on debt | 250,000,000 | ||||||
Senior Notes | 2026 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt | 495,550,000 | 495,165,000 | |||||
Principal payments on debt | 200,000,000 | ||||||
Debt face amount | $ 500,000,000 | ||||||
Debt interest rate | 4.40% | ||||||
Debt issuance price percent | 99.912% | ||||||
Senior Notes | 2024 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt | $ 495,697,000 | $ 495,208,000 | |||||
Debt face amount | $ 500,000,000 | ||||||
Debt interest rate | 4.00% | ||||||
Debt issuance price percent | 99.722% |
DEBT - Debt Expense (Detail)
DEBT - Debt Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 13,303 | $ 12,832 | $ 39,497 | $ 30,505 |
Line of Credit | 2013 AMH Term Facility | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 2,150 | 1,696 | 6,109 | 6,408 |
Line of Credit | AMI Term Facilities | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 362 | 314 | 1,014 | 781 |
Senior Notes | 2024 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 5,163 | 5,192 | 15,489 | 15,572 |
Senior Notes | 2026 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 5,628 | $ 5,630 | $ 16,885 | $ 7,744 |
NET INCOME PER CLASS A SHARE -
NET INCOME PER CLASS A SHARE - Basic and Diluted Net Income (Loss) Per Class A Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income attributable to Apollo Global Management, LLC Class A Shareholders | $ 198,569 | $ 94,619 | $ 430,673 | $ 235,883 |
Distributions declared on Class A shares | (100,641) | (68,356) | (279,307) | (165,802) |
Distributions on participating securities | (3,265) | (2,404) | (9,419) | (6,293) |
Earnings allocable to participating securities | (3,218) | (849) | (5,129) | (2,637) |
Undistributed income attributable to Class A shareholders: Basic and Diluted | $ 91,445 | $ 23,010 | $ 136,818 | $ 61,151 |
Denominator: | ||||
Weighted average number of Class A shares outstanding: Basic and Diluted (in shares) | 192,882,082 | 184,438,515 | 190,014,240 | 183,602,982 |
Net Income per Class A Share: Basic and Diluted | ||||
Distributed Income (in USD per share) | $ 0.52 | $ 0.37 | $ 1.46 | $ 0.90 |
Undistributed Income (in USD per share) | 0.48 | 0.13 | 0.73 | 0.34 |
Net Income per Class A Share: Basic and Diluted (in USD per share) | $ 1 | $ 0.50 | $ 2.19 | $ 1.24 |
NET INCOME PER CLASS A SHARE 63
NET INCOME PER CLASS A SHARE - Weighted Average Shares Issued (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted average vested/unvested RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average vested units (in shares) | 210,642 | 873,973 | 554,881 | 1,780,166 |
Weighted average unvested units (in shares) | 6,196,601 | 5,867,075 | 6,334,220 | 6,054,283 |
Weighted average unexercised options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average unexercised options (in shares) | 210,420 | 222,920 | 214,587 | 222,920 |
Weighted average AOG Units outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average unvested units (in shares) | 209,522,593 | 215,869,166 | 212,224,998 | 216,034,309 |
Weighted average unvested restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average unvested units (in shares) | 400,606 | 67,101 | 240,411 | 85,388 |
NET INCOME PER CLASS A SHARE 64
NET INCOME PER CLASS A SHARE - Narrative (Detail) | 9 Months Ended | ||
Sep. 30, 2017USD ($)voteshares | Sep. 30, 2016 | Dec. 31, 2016shares | |
Common Class A Shares | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion ratio of AOG units (in shares) | 1 | ||
Shares outstanding (in shares) | 193,540,853 | 185,460,294 | |
Common Class B Shares | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion ratio of AOG units (in shares) | 1 | ||
Shares outstanding (in shares) | 1 | 1 | |
Number of votes (in votes) | vote | 1 | ||
Class B share net income (loss) | $ | $ 0 | ||
Class B share distribution or liquidation rights (in shares) | 0 | ||
Class B voting power, percent of voting rights | 54.30% | 60.70% |
EQUITY-BASED COMPENSATION - Wei
EQUITY-BASED COMPENSATION - Weighted Average Discounts (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
2007 Omnibus Equity Incentive Plan, Plan Grants | ||||
Class of Stock [Line Items] | ||||
Discount for the lack of distributions until vested | 12.90% | 8.20% | 12.00% | 10.10% |
Marketability discount for transfer restrictions | 4.00% | 5.80% | 3.50% | 5.80% |
2007 Omnibus Equity Incentive Plan, Bonus Grants | ||||
Class of Stock [Line Items] | ||||
Marketability discount for transfer restrictions | 2.30% | 3.00% | 2.30% | 3.40% |
EQUITY-BASED COMPENSATION - Sch
EQUITY-BASED COMPENSATION - Schedule or Description of Forfeiture Rate and Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 24,485 | $ 26,163 | $ 70,332 | $ 74,203 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Actual forfeiture rate | 2.30% | 2.70% | 9.30% | 6.60% |
Equity-based compensation | $ 17,106 | $ 16,724 | $ 50,807 | $ 52,564 |
Athene Holding | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Actual forfeiture rate | 0.00% | 0.40% | 0.00% | 0.80% |
Equity-based compensation | $ 3,528 | $ 4,093 | $ 6,983 | $ 9,441 |
Management Fees | $ 2,393 | $ 4,015 | $ 4,531 | $ 9,179 |
EQUITY-BASED COMPENSATION - Uni
EQUITY-BASED COMPENSATION - Units and Award Activity (Detail) - RSUs | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Unvested | |
Beginning balance (in shares) | 9,391,566 |
Granted (in shares) | 1,519,021 |
Forfeited (in shares) | (1,016,156) |
Vested (in shares) | (859,553) |
Ending balance (in shares) | 9,034,878 |
Weighted Average Grant Date Fair Value | |
Beginning of period (in USD per share) | $ / shares | $ 15.80 |
Granted (in USD per share) | $ / shares | 21.29 |
Forfeited (in USD per share) | $ / shares | 17.80 |
Issued (in USD per share) | $ / shares | 18.29 |
Vested (in USD per share) | $ / shares | 17.29 |
End of period (in USD per share) | $ / shares | $ 16.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 12,144,021 |
Granted (in shares) | 1,519,021 |
Forfeited (in shares) | (1,016,156) |
Issued (in shares) | (3,285,664) |
Vested (in shares) | 859,553 |
Ending balance (in shares) | 9,361,222 |
Vesting period | 2 years 1 month 6 days |
Vested | |
Unvested | |
Vested (in shares) | (859,553) |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | 2,752,455 |
Issued (in shares) | (3,285,664) |
Vested (in shares) | 859,553 |
Ending balance (in shares) | 326,344 |
EQUITY-BASED COMPENSATION - Rec
EQUITY-BASED COMPENSATION - Reconciliation of Equity-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 24,485 | $ 26,163 | $ 70,332 | $ 74,203 |
Non-Controlling Interests in Apollo Operating Group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 8,009 | 10,220 | ||
Less other equity-based compensation awards | (8,009) | (10,220) | ||
Capital increase related to equity-based compensation | 0 | 0 | ||
Total Apollo Global Management, LLC Shareholders’ Equity | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 62,323 | 63,983 | ||
Less other equity-based compensation awards | (9,881) | (10,073) | ||
Capital increase related to equity-based compensation | 52,442 | 53,910 | ||
RSUs, share options and restricted share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 54,901 | $ 55,260 | ||
RSUs, share options and restricted share awards | Non-Controlling Interests in Apollo Operating Group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-Controlling Interest % in Apollo Operating Group | 0.00% | 0.00% | ||
Equity-based compensation | $ 0 | $ 0 | ||
RSUs, share options and restricted share awards | Total Apollo Global Management, LLC Shareholders’ Equity | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 54,901 | 55,260 | ||
AHL Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 6,983 | $ 9,441 | ||
AHL Awards | Non-Controlling Interests in Apollo Operating Group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-Controlling Interest % in Apollo Operating Group | 51.90% | 53.90% | ||
Equity-based compensation | $ 3,624 | $ 5,093 | ||
AHL Awards | Total Apollo Global Management, LLC Shareholders’ Equity | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | 3,359 | 4,348 | ||
Other equity-based compensation awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 8,448 | $ 9,502 | ||
Other equity-based compensation awards | Non-Controlling Interests in Apollo Operating Group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-Controlling Interest % in Apollo Operating Group | 51.90% | 53.90% | ||
Equity-based compensation | $ 4,385 | $ 5,127 | ||
Other equity-based compensation awards | Total Apollo Global Management, LLC Shareholders’ Equity | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation | $ 4,063 | $ 4,375 |
EQUITY-BASED COMPENSATION - Nar
EQUITY-BASED COMPENSATION - Narrative (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years 1 month 6 days | ||
Fair value of grants | $ 32,300 | $ 2,800 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of grants | $ 90,289 | $ 42,619 | |
2007 Omnibus Equity Incentive Plan, Plan Grants | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 6 years | ||
2007 Omnibus Equity Incentive Plan, Bonus Grants | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Vesting | 2007 Omnibus Equity Incentive Plan, Plan Grants | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Minimum | Athene Holding | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum | Athene Holding | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) | Aug. 02, 2017 | Mar. 07, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Feb. 29, 2016 |
Class of Stock [Line Items] | ||||||||
Authorized shares for repurchase (up to) | $ 250,000,000 | |||||||
Repurchases and canceled amount | $ 6,903,000 | $ 12,902,000 | ||||||
Number of shares issued (in shares) | 11,000,000 | 11,000,000 | 0 | |||||
Issuance of Preferred shares (net of issuance costs) | $ 264,398,000 | 0 | ||||||
Distribution paid | $ (4,383,000) | $ 0 | $ (9,155,000) | $ 0 | ||||
Common Class A Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Authorized shares for repurchase (up to) | 150,000,000 | |||||||
Authorized shares to be repurchased to satisfy obligations (up to) | $ 100,000,000 | |||||||
Repurchase and canceled (in shares) | 233,248 | 954,447 | ||||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued (in shares) | 11,000,000 | |||||||
Distribution rate per annum | 6.375% | |||||||
Issuance of Preferred shares (net of issuance costs) | $ 275,000,000 | |||||||
Increase to distribution rate | 5.00% | |||||||
Dividends declared (in dollars per share) | $ 0.398438 | |||||||
Additional Paid in Capital | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchases and canceled amount | $ 6,903,000 | $ 12,902,000 | ||||||
Equity, Redemption, Period Two | Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Redemption price (in dollars per share) | $ 25 | |||||||
Equity, Redemption, Period One | Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Redemption price (in dollars per share) | $ 25.25 | |||||||
Required days notice | 30 days | |||||||
Number of days within occurrence | 60 days |
EQUITY - Disclosure of Share-ba
EQUITY - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Class of Stock [Line Items] | ||
Cash paid for settlement | $ 28,000 | $ 35,300 |
RSUs | ||
Class of Stock [Line Items] | ||
Reduction of Class A shares issued (in shares) | 1,196,549.4990689 | 2,407,275 |
Class A shares issued (in shares) | 2,097,249 | 4,246,760 |
Gross value of shares | $ 76,803 | $ 96,437 |
EQUITY - Schedule of Distributi
EQUITY - Schedule of Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 31, 2017 | Aug. 02, 2017 | May 31, 2017 | Apr. 28, 2017 | Apr. 13, 2017 | Feb. 28, 2017 | Feb. 03, 2017 | Nov. 30, 2016 | Oct. 28, 2016 | Aug. 31, 2016 | Aug. 03, 2016 | May 31, 2016 | May 06, 2016 | Feb. 29, 2016 | Feb. 03, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||||||||||||||||||||
Distribution per Class A Share (USD per share) | $ 0.52 | $ 0.37 | $ 1.46 | $ 0.90 | ||||||||||||||||
Distributions | $ 209.4 | $ 197.4 | $ 20.5 | $ 181.2 | $ 140.3 | $ 148.3 | $ 100 | $ 111.9 | $ 608.5 | $ 500.5 | ||||||||||
Distribution made (in dollars per share) | $ 0.10 | |||||||||||||||||||
Common Class A Shares | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Distribution per Class A Share (USD per share) | $ 0.52 | $ 0.49 | $ 0 | $ 0.45 | $ 0.35 | $ 0.37 | $ 0.25 | $ 0.28 | $ 1.46 | $ 1.25 | ||||||||||
Distributions | 100.6 | 94.5 | $ 0 | 84.2 | 64.9 | 68.4 | 46 | 51.4 | $ 279.3 | $ 230.7 | ||||||||||
Participating Security | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Distributions | 3.2 | 3.3 | 0 | 2.9 | 2.1 | 2.4 | 1.8 | 2.1 | 9.4 | 8.4 | ||||||||||
Noncontrolling Interest | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Distribution to Non-Controlling Interest Holders in the Apollo Operating Group | $ 108.8 | $ 102.9 | $ 20.5 | $ 97 | $ 75.4 | $ 79.9 | $ 54 | $ 60.5 | $ 329.2 | $ 269.8 |
EQUITY - Interests in Consolida
EQUITY - Interests in Consolidated Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) attributable to Non-Controlling Interests in consolidated entities: | ||||
Net Income attributable to Non-Controlling Interests | $ 231,411 | $ 140,099 | $ 542,507 | $ 340,077 |
Net income attributable to Non-Controlling Interests in the Apollo Operating Group: | ||||
Net income | 434,363 | 234,718 | 982,335 | 575,960 |
Net income after Non-Controlling Interests in consolidated entities | (202,952) | (94,619) | (439,828) | (235,883) |
Adjustments: | ||||
Income tax provision | 16,542 | 29,667 | 54,926 | 62,508 |
NYC UBT and foreign tax benefit | (2,595) | (4,419) | (7,014) | (11,715) |
Net income attributable to Preferred Shareholders | (4,383) | 0 | (9,155) | 0 |
Total adjustments | 9,580 | 25,314 | 38,775 | 50,878 |
Other comprehensive income attributable to Non-Controlling Interests | 4,999 | 545 | 8,188 | 1,462 |
Comprehensive Income Attributable to Non-Controlling Interests | 236,410 | 140,644 | 550,695 | 341,539 |
Interest in management companies and co-investment vehicle | ||||
Net income (loss) attributable to Non-Controlling Interests in consolidated entities: | ||||
Net Income attributable to Non-Controlling Interests | 1,637 | 260 | 3,264 | 4,804 |
Other consolidated entities | ||||
Net income (loss) attributable to Non-Controlling Interests in consolidated entities: | ||||
Net Income attributable to Non-Controlling Interests | (589) | (482) | 5,703 | (913) |
Consolidated Entities | ||||
Net income (loss) attributable to Non-Controlling Interests in consolidated entities: | ||||
Net Income attributable to Non-Controlling Interests | 1,048 | (222) | 8,967 | 3,891 |
Net income attributable to Non-Controlling Interests in the Apollo Operating Group: | ||||
Net income | 442,895 | 260,254 | 1,012,143 | 622,947 |
Net income after Non-Controlling Interests in consolidated entities | (433,315) | (234,940) | (973,368) | (572,069) |
Apollo Operating Group | ||||
Net income (loss) attributable to Non-Controlling Interests in consolidated entities: | ||||
Net Income attributable to Non-Controlling Interests | 230,363 | 140,321 | 533,540 | 336,186 |
Net income attributable to Non-Controlling Interests in the Apollo Operating Group: | ||||
Net income after Non-Controlling Interests in consolidated entities | $ 16 | $ 66 | $ 18 | $ 85 |
Adjustments: | ||||
Weighted average ownership percentage of Apollo Operating Group | 52.00% | 53.90% | 52.70% | 54.00% |
RELATED PARTY TRANSACTIONS AN74
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due from and Due to Affiliates (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Due from Related Parties: | ||
Due from related parties | $ 287,352 | $ 254,853 |
Due to Related Parties: | ||
Due to related parties | 643,401 | 638,126 |
Due from/to private equity funds | ||
Due from Related Parties: | ||
Due from related parties | 17,883 | 19,089 |
Due to Related Parties: | ||
Due to related parties | 43,059 | 56,880 |
Due from portfolio companies | ||
Due from Related Parties: | ||
Due from related parties | 40,028 | 34,339 |
Due from/to credit funds | ||
Due from Related Parties: | ||
Due from related parties | 136,856 | 112,516 |
Due to Related Parties: | ||
Due to related parties | 75,463 | 66,859 |
Due from/to Contributing Partners, employees and former employees | ||
Due from Related Parties: | ||
Due from related parties | 66,344 | 72,305 |
Due to Related Parties: | ||
Due to related parties | 0 | 7,564 |
Due from/to real assets funds | ||
Due from Related Parties: | ||
Due from related parties | 26,241 | 16,604 |
Due to Related Parties: | ||
Due to related parties | 286 | 281 |
Due to Managing Partners and Contributing Partners | ||
Due to Related Parties: | ||
Due to related parties | $ 524,593 | $ 506,542 |
RELATED PARTY TRANSACTIONS AN75
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Narrative (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2017 | Apr. 30, 2015 | Apr. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||||||
Percentage of amount of cash savings | 15.00% | ||||||
Period of payments pursuant to tax receivable agreement | 15 years | ||||||
Payments for tax receivable agreement | $ 17,895 | $ 0 | |||||
Loans to related party | $ 15,300 | 15,300 | $ 26,100 | ||||
Loans due upon liquidation of fund | 43,900 | 43,900 | 39,300 | ||||
Indemnity liability | 10,200 | 10,200 | 5,900 | ||||
Management fee rate | 0.40% | ||||||
Asset threshold | 6,860,354 | $ 6,860,354 | 5,629,553 | ||||
Carried interest payable rate | 20.00% | ||||||
Private Equity Fund | |||||||
Related Party Transaction [Line Items] | |||||||
General partner obligation | 42,200 | $ 42,200 | 56,000 | ||||
Credit | |||||||
Related Party Transaction [Line Items] | |||||||
General partner obligation | 69,300 | 69,300 | 60,600 | ||||
AAA Investment Credit Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum advance | $ 10,000 | ||||||
Commitment fee on advance | 0.125% | ||||||
Advances to affiliate | 4,000 | $ 4,000 | 4,000 | ||||
LIBOR | AAA Investment Credit Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Spread on advance | 1.50% | ||||||
Tax Receivable Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Payments for tax receivable agreement | $ 17,900 | ||||||
Pro rata distribution | $ 20,500 | ||||||
Distribution per AOG Unit (in dollars per share) | $ 0.10 | ||||||
CLO Collateral Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Other income | $ 6,200 | ||||||
Athene Holding | Revised Fee Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee rate | 0.30% | ||||||
Asset threshold | $ 65,846,000 | ||||||
Athene Holding | Amended Sub-Advisory Fee Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee rate | 0.35% | ||||||
Subsidiary of Common Parent | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee rate | 0.10% | ||||||
Managing Partners | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of amount of cash savings | 85.00% |
RELATED PARTY TRANSACTIONS AN76
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Sub-Advisory Fee Schedule (Detail) - USD ($) | Jan. 01, 2017 | Sep. 30, 2017 |
Related Party Transaction [Line Items] | ||
Management fee rate | 0.40% | |
Carried interest payable rate | 20.00% | |
Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Management fee rate | 0.35% | |
Minimum | ||
Related Party Transaction [Line Items] | ||
Carried interest payable rate | 0.00% | |
Athene Assets Directly Invested | 0.00% | |
Maximum | ||
Related Party Transaction [Line Items] | ||
Carried interest payable rate | 20.00% | |
Athene Assets Directly Invested | 1.75% | |
Assets up to $10.0 billion | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Management fee rate | 0.40% | |
Assets explicitly sub-advised | $ 10,000,000,000 | |
Assets between $10.0 billion to $12.4 billion | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Management fee rate | 0.35% | |
Assets between $10.0 billion to $12.4 billion | Minimum | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Assets explicitly sub-advised | $ 10,000,000,000 | |
Assets between $10.0 billion to $12.4 billion | Maximum | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Assets explicitly sub-advised | $ 12,400,000,000 | |
Assets between $12.4 billion to $16.0 billion | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Management fee rate | 0.40% | |
Assets between $12.4 billion to $16.0 billion | Minimum | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Assets explicitly sub-advised | $ 12,400,000,000 | |
Assets between $12.4 billion to $16.0 billion | Maximum | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Assets explicitly sub-advised | $ 16,000,000,000 | |
Assets in excess of $16.0 billion | Athene Holding | Amended Sub-Advisory Fee Agreement | ||
Related Party Transaction [Line Items] | ||
Management fee rate | 0.35% | |
Assets explicitly sub-advised | $ 16,000,000,000 |
RELATED PARTY TRANSACTIONS AN77
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Interest Income and Interest Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Carried interest income from AAA Investments | $ 14,500 | $ 5,500 | $ 27,000 | $ 16,500 | |
Carried interest receivable | 187,106 | 187,106 | $ 229,829 | ||
Profit sharing payable | 53,689 | 53,689 | $ 80,579 | ||
Athene and Athene Life Re Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Revenues earned in aggregate from Athene | $ 181,000 | $ 111,700 | $ 434,200 | $ 322,600 |
RELATED PARTY TRANSACTIONS AN78
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Schedule of Economic Ownership Interests (Detail) | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Economic interest | 2.30% | 2.30% |
AAA and AAA Guarantor - Athene L.P. | ||
Related Party Transaction [Line Items] | ||
% of Ownership | 2.20% | 2.20% |
Athene Holding | ||
Related Party Transaction [Line Items] | ||
% of Ownership | 0.50% | 0.90% |
Economic interest | 8.80% | 8.90% |
Private Placement | ||
Related Party Transaction [Line Items] | ||
Economic interest | 26.20% | 39.40% |
Parent Company | Athene Holding | ||
Related Party Transaction [Line Items] | ||
% of Ownership | 8.30% | 8.00% |
Athene and Athene Life Re Ltd. | ||
Related Party Transaction [Line Items] | ||
Economic interest | 0.10% | 0.10% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Detail) $ / shares in Units, $ in Thousands, € in Millions | Aug. 03, 2017EUR (€) | Jun. 20, 2016EUR (€) | May 06, 2016litigation | Jul. 21, 2015defendant | Jan. 12, 2015plaintiff | Jan. 21, 2014litigation | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)litigation | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 12, 2016USD ($) | Oct. 04, 2016 | Apr. 12, 2016$ / shares | Apr. 11, 2016$ / shares | Sep. 03, 2014USD ($) |
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Unfunded capital commitments | $ 1,500,000 | $ 1,500,000 | $ 600,000 | |||||||||||||
Number of suits (in litigation) | litigation | 4 | 2 | ||||||||||||||
Amount of loans | 1,361,044 | $ 1,361,044 | 1,352,447 | |||||||||||||
Proceeds received from early lease termination | 19,000 | |||||||||||||||
Expenses related to non-cancellable contractual obligations | 8,500 | $ 10,000 | 28,300 | $ 30,100 | ||||||||||||
Fair value of the contingent obligation | 87,300 | 87,300 | 106,300 | |||||||||||||
re: Caesars Entertainment Operating Company, Inc. bankruptcy proceedings, No. 15-10047 and No. 15-01145 | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Number of plaintiffs (in plaintiff) | plaintiff | 3 | |||||||||||||||
In Re Apollo Residential Mortgage, Inc. Shareholder Litigation, Case No.: 24-C-16-002610 | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Number of suits (in litigation) | litigation | 3 | |||||||||||||||
In re Apollo Education Group, Inc. Shareholder Litigation, Lead Case No. CV2016-001905 (Ariz. Super. Ct.) | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Price per share (in dollars per share) | $ / shares | $ 10 | $ 9.50 | ||||||||||||||
United States District Court Middle District Of Florida, AGM, Gareth Turner And Mark Beith | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Damages sought | € | € 14 | |||||||||||||||
Caesars Entertainment Corp | Wilmington Trust, National Association v. Caesars Entertainment Corp., No. 15-cv-08280 | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Percent in dollar amount | 90.00% | |||||||||||||||
Caesars Entertainment Corp | Meehancombs Global Credit Opportunities Master Fund, L.P., et al. v. Caesars Entertainment Corp., et al., No. 14-cv-7091 | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
CEOC debt | $ 137,000 | |||||||||||||||
Director | CEC Entertainment, Inc. Stockholder Litigation, Case No. 14C57 | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Number of defendants | defendant | 2 | |||||||||||||||
Sale of Insurance Business | Court of Genoa (Italy) (No. 8965/2016) | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Damages sought | € | € 450 | |||||||||||||||
Other Losses | Court of Genoa (Italy) (No. 8965/2016) | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Damages sought | € | € 800 | |||||||||||||||
Unfunded Loan Commitment | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Unfunded capital commitments | $ 29,800 | $ 29,800 | ||||||||||||||
Notes due 2016 10.75% [Member] | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Percent in dollar amount | 10.75% | 10.75% | ||||||||||||||
Loan Agreements 2011 | Core Litigation Trust v. Apollo Global Management, LLC, et al., Case No. BC 643732 | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Amount of loans | $ 360,000 | |||||||||||||||
Consolidated Variable Interest Entities | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Outstanding secured borrowings | $ 983,811 | $ 983,811 | 792,770 | |||||||||||||
Consolidated Variable Interest Entities | Secured Borrowings | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Guarantee percent | 20.00% | 20.00% | ||||||||||||||
Outstanding secured borrowings | $ 90,461 | $ 90,461 | 0 | |||||||||||||
Amount guaranteed | 18,100 | 18,100 | ||||||||||||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||||||
Cumulative revenues recognized if existing investments become worthless | $ 3,600,000 | $ 3,600,000 | $ 2,900,000 |
COMMITMENTS AND CONTINGENCIES80
COMMITMENTS AND CONTINGENCIES - Summary of Approximate Aggregate Minimum Future Payments Required for Operating Leases (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2,017 | $ 9,266 |
2,018 | 34,643 |
2,019 | 33,702 |
2,020 | 15,563 |
2,021 | 6,055 |
Thereafter | 13,313 |
Total | $ 112,542 |
COMMITMENTS AND CONTINGENCIES81
COMMITMENTS AND CONTINGENCIES - Summary of Fixed and Determinable Payments (Detail) - Management and Consulting Payable $ in Thousands | Sep. 30, 2017USD ($) |
Other Commitments [Line Items] | |
Remaining 2,017 | $ 8,291 |
2,018 | 12,413 |
2,019 | 3,525 |
2,020 | 1,956 |
2,021 | 1,956 |
Thereafter | 1,611 |
Total | $ 29,752 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Revenues: | |||||
Management fees from related parties | $ 301,443 | $ 274,313 | $ 852,291 | $ 775,171 | |
Advisory and transaction fees from related parties, net | 16,209 | 29,801 | 54,905 | 102,699 | |
Carried interest income (loss) from related parties: | |||||
Total carried interest income from related parties | 346,580 | 199,617 | 833,459 | 407,134 | |
Total Revenues | 664,232 | 503,731 | 1,740,655 | 1,285,004 | |
Compensation and benefits: | |||||
Salary, bonus and benefits | 108,853 | 92,591 | 316,011 | 290,013 | |
Equity-based compensation | 24,485 | 26,163 | 70,332 | 74,203 | |
Profit sharing expense: | |||||
Total profit sharing expense | 137,296 | 90,152 | 339,679 | 179,767 | |
Total Compensation and Benefits | 270,634 | 208,906 | 726,022 | 543,983 | |
Non-compensation expenses: | |||||
General, administrative and other | 68,149 | 58,566 | 189,918 | 187,285 | |
Placement fees | 5,397 | 1,953 | 12,560 | 5,781 | |
Total Expenses | 357,483 | 282,257 | 967,997 | 767,554 | |
Other Income (Loss): | |||||
Income (loss) from equity method investments | 47,488 | 23,213 | 102,877 | 64,356 | |
Net gains from investment activities | 68,932 | 17,746 | 102,936 | 50,287 | |
Other income (loss), net | 25,387 | (40) | 44,776 | 485 | |
Total Other Income | 144,156 | 42,911 | 264,603 | 121,018 | |
Economic Income (Loss) | 1,039,083 | 659,892 | |||
Total Assets | 6,860,354 | 6,860,354 | $ 5,629,553 | ||
Total Reportable Segments | |||||
Revenues: | |||||
Management fees from related parties | 282,434 | 258,485 | 801,395 | 731,051 | |
Advisory and transaction fees from related parties, net | 16,209 | 30,251 | 54,905 | 103,149 | |
Carried interest income (loss) from related parties: | |||||
Unrealized | 285,599 | 167,484 | 387,619 | 283,098 | |
Realized | 60,975 | 35,843 | 446,227 | 127,746 | |
Total carried interest income from related parties | 346,574 | 203,327 | 833,846 | 410,844 | |
Total Revenues | 645,217 | 492,063 | 1,690,146 | 1,245,044 | |
Compensation and benefits: | |||||
Salary, bonus and benefits | 101,007 | 86,804 | 294,288 | 273,696 | |
Equity-based compensation | 17,058 | 16,154 | 51,369 | 48,596 | |
Profit sharing expense: | |||||
Unrealized | 94,446 | 56,475 | 131,585 | 89,629 | |
Realized | 35,673 | 20,316 | 203,479 | 78,402 | |
Realized: Equity-based | 1,326 | 2,657 | |||
Total profit sharing expense | 131,445 | 76,791 | 337,721 | 168,031 | |
Total Compensation and Benefits | 249,510 | 179,749 | 683,378 | 490,323 | |
Non-compensation expenses: | |||||
General, administrative and other | 60,928 | 51,953 | 168,534 | 165,832 | |
Placement fees | 5,397 | 1,053 | 12,560 | 4,543 | |
Total non-compensation expenses | 66,325 | 53,006 | 181,094 | 170,375 | |
Total Expenses | 315,835 | 232,755 | 864,472 | 660,698 | |
Other Income (Loss): | |||||
Income (loss) from equity method investments | 48,014 | 22,919 | 104,447 | 63,766 | |
Net gains from investment activities | 68,529 | 17,362 | 102,620 | 49,361 | |
Net interest expense | (11,509) | (11,528) | (35,564) | (27,305) | |
Other income (loss), net | 25,706 | (4,903) | 45,150 | (5,206) | |
Total Other Income | 130,740 | 23,850 | 216,653 | 80,616 | |
Non-Controlling Interests | (1,751) | (510) | (3,244) | (5,070) | |
Economic Income (Loss) | 458,371 | 282,648 | |||
Total Assets | 5,658,902 | 5,658,902 | $ 4,694,643 | ||
Total Reportable Segments | Private Equity Segment | |||||
Revenues: | |||||
Management fees from related parties | 76,079 | 91,545 | 230,752 | 242,981 | |
Advisory and transaction fees from related parties, net | 10,572 | 26,601 | 41,646 | 87,615 | |
Carried interest income (loss) from related parties: | |||||
Unrealized | 286,589 | 75,019 | 351,836 | 136,529 | |
Realized | 21,859 | 9,844 | 313,817 | 10,110 | |
Total carried interest income from related parties | 308,448 | 84,863 | 665,653 | 146,639 | |
Total Revenues | 395,099 | 203,009 | 938,051 | 477,235 | |
Compensation and benefits: | |||||
Salary, bonus and benefits | 31,467 | 32,532 | 93,230 | 96,170 | |
Equity-based compensation | 6,335 | 6,645 | 21,134 | 20,795 | |
Profit sharing expense: | |||||
Unrealized | 96,992 | 19,234 | 117,025 | 29,403 | |
Realized | 17,394 | 7,266 | 145,783 | 7,398 | |
Realized: Equity-based | 808 | 1,270 | |||
Total profit sharing expense | 115,194 | 26,500 | 264,078 | 36,801 | |
Total Compensation and Benefits | 152,996 | 65,677 | 378,442 | 153,766 | |
Non-compensation expenses: | |||||
General, administrative and other | 19,699 | 18,118 | 53,676 | 54,400 | |
Placement fees | 2,257 | 330 | 3,732 | 2,409 | |
Total non-compensation expenses | 21,956 | 18,448 | 57,408 | 56,809 | |
Total Expenses | 174,952 | 84,125 | 435,850 | 210,575 | |
Other Income (Loss): | |||||
Income (loss) from equity method investments | 39,875 | 14,384 | 81,951 | 320 | |
Net gains from investment activities | 7,959 | 1,191 | 11,255 | (9,868) | |
Net interest expense | (4,374) | (4,188) | (12,952) | 40,311 | |
Other income (loss), net | 7,344 | 103 | 25,915 | 3,542 | |
Total Other Income | 50,804 | 11,490 | 106,169 | 34,305 | |
Non-Controlling Interests | 0 | 0 | 0 | 0 | |
Economic Income (Loss) | 270,951 | 130,374 | 608,370 | 300,965 | |
Total Assets | 2,660,333 | 2,660,333 | |||
Total Reportable Segments | Credit Segment | |||||
Revenues: | |||||
Management fees from related parties | 187,885 | 151,386 | 516,083 | 445,149 | |
Advisory and transaction fees from related parties, net | 4,219 | 2,612 | 10,484 | 10,058 | |
Carried interest income (loss) from related parties: | |||||
Unrealized | 4,179 | 91,502 | 37,422 | 150,720 | |
Realized | 32,131 | 20,500 | 120,186 | 105,698 | |
Total carried interest income from related parties | 36,310 | 112,002 | 157,608 | 256,418 | |
Total Revenues | 228,414 | 266,000 | 684,175 | 711,625 | |
Compensation and benefits: | |||||
Salary, bonus and benefits | 59,027 | 45,143 | 173,153 | 151,464 | |
Equity-based compensation | 9,925 | 8,834 | 28,255 | 25,694 | |
Profit sharing expense: | |||||
Unrealized | 2,266 | 36,809 | 17,408 | 61,626 | |
Realized | 14,643 | 8,988 | 51,168 | 62,764 | |
Realized: Equity-based | 518 | 1,387 | |||
Total profit sharing expense | 17,427 | 45,797 | 69,963 | 124,390 | |
Total Compensation and Benefits | 86,379 | 99,774 | 271,371 | 301,548 | |
Non-compensation expenses: | |||||
General, administrative and other | 35,709 | 29,161 | 99,559 | 95,193 | |
Placement fees | 3,140 | 723 | 8,828 | 2,113 | |
Total non-compensation expenses | 38,849 | 29,884 | 108,387 | 97,306 | |
Total Expenses | 125,228 | 129,658 | 379,758 | 398,854 | |
Other Income (Loss): | |||||
Income (loss) from equity method investments | 8,222 | 8,036 | 20,561 | 21,824 | |
Net gains from investment activities | 60,570 | 16,171 | 91,365 | 45,819 | |
Net interest expense | (5,972) | (6,172) | (18,978) | (14,542) | |
Other income (loss), net | 16,318 | (4,977) | 16,888 | (5,512) | |
Total Other Income | 79,138 | 13,058 | 109,836 | 47,589 | |
Non-Controlling Interests | (1,751) | (510) | (3,244) | (5,070) | |
Economic Income (Loss) | 180,573 | 148,890 | 411,009 | 355,290 | |
Total Assets | 2,772,296 | 2,772,296 | |||
Total Reportable Segments | Real Assets Segment | |||||
Revenues: | |||||
Management fees from related parties | 18,470 | 15,554 | 54,560 | 42,921 | |
Advisory and transaction fees from related parties, net | 1,418 | 1,038 | 2,775 | 5,476 | |
Carried interest income (loss) from related parties: | |||||
Unrealized | (5,169) | 963 | (1,639) | (4,151) | |
Realized | 6,985 | 5,499 | 12,224 | 11,938 | |
Total carried interest income from related parties | 1,816 | 6,462 | 10,585 | 7,787 | |
Total Revenues | 21,704 | 23,054 | 67,920 | 56,184 | |
Compensation and benefits: | |||||
Salary, bonus and benefits | 10,513 | 9,129 | 27,905 | 26,062 | |
Equity-based compensation | 798 | 675 | 1,980 | 2,107 | |
Profit sharing expense: | |||||
Unrealized | (4,812) | 432 | (2,848) | (1,400) | |
Realized | 3,636 | 4,062 | 6,528 | 8,240 | |
Realized: Equity-based | 0 | 0 | |||
Total profit sharing expense | (1,176) | 4,494 | 3,680 | 6,840 | |
Total Compensation and Benefits | 10,135 | 14,298 | 33,565 | 35,009 | |
Non-compensation expenses: | |||||
General, administrative and other | 5,520 | 4,674 | 15,299 | 16,239 | |
Placement fees | 0 | 0 | 0 | 21 | |
Total non-compensation expenses | 5,520 | 4,674 | 15,299 | 16,260 | |
Total Expenses | 15,655 | 18,972 | 48,864 | 51,269 | |
Other Income (Loss): | |||||
Income (loss) from equity method investments | (83) | 499 | 1,935 | 1,631 | |
Net gains from investment activities | 0 | 0 | 0 | 0 | |
Net interest expense | (1,163) | (1,168) | (3,634) | (2,895) | |
Other income (loss), net | 2,044 | (29) | 2,347 | (14) | |
Total Other Income | 798 | (698) | 648 | (1,278) | |
Non-Controlling Interests | 0 | 0 | 0 | 0 | |
Economic Income (Loss) | 6,847 | $ 3,384 | 19,704 | $ 3,637 | |
Total Assets | $ 226,273 | $ 226,273 |
SEGMENT REPORTING - Disclosure
SEGMENT REPORTING - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) - Restricted Stock - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Deferred equity based compensation | $ 90,289 | $ 42,619 |
Other Liabilities | ||
Segment Reporting Information [Line Items] | ||
Deferred equity based compensation | $ 80,283 | $ 40,472 |
SEGMENT REPORTING - Table Footn
SEGMENT REPORTING - Table Footnotes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 664,232 | $ 503,731 | $ 1,740,655 | $ 1,285,004 | |
Total expenses | 357,483 | 282,257 | 967,997 | 767,554 | |
Total Other Income | 144,156 | 42,911 | 264,603 | 121,018 | |
Income before income tax provision | 450,905 | 264,385 | 1,037,261 | 638,468 | |
Net (income) loss attributable to Non-Controlling Interests in consolidated entities | (231,411) | (140,099) | (542,507) | (340,077) | |
Economic Income | 1,039,083 | 659,892 | |||
Assets | 6,860,354 | 6,860,354 | $ 5,629,553 | ||
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, Equity awards granted by unconsolidated related parties and reimbursable expenses | (19,832) | (18,217) | (53,234) | (51,275) | |
Revenues, Adjustments related to consolidated funds and VIEs | 817 | 937 | 2,725 | 2,800 | |
Revenues, Other | 0 | 5,612 | 0 | 8,515 | |
Equity awards granted by unconsolidated related parties and reimbursable expenses | (19,832) | (19,688) | (53,234) | (52,980) | |
Transaction-related compensation charges | (7,543) | (14,276) | (6,409) | (16,799) | |
Reclassification of interest expenses | (13,302) | (12,832) | (39,496) | (30,505) | |
Amortization of transaction-related intangibles | (971) | (2,212) | (4,381) | (6,608) | |
Expenses, Other | 0 | (494) | (5) | 36 | |
Reclassification of interest expense | (13,302) | (12,832) | (39,496) | (30,505) | |
Adjustments related to consolidated funds and VIEs | (227) | (533) | (8,433) | (2,077) | |
Other | 113 | (5,696) | (21) | (7,820) | |
Total Reportable Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 645,217 | 492,063 | 1,690,146 | 1,245,044 | |
Total expenses | 315,835 | 232,755 | 864,472 | 660,698 | |
Total Other Income | 130,740 | 23,850 | 216,653 | 80,616 | |
Economic Income | 458,371 | 282,648 | |||
Assets | 5,658,902 | 5,658,902 | 4,694,643 | ||
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 1,201,452 | 1,201,452 | $ 934,910 | ||
Parent Company | |||||
Segment Reporting Information [Line Items] | |||||
Total Other Income | 7,466 | 18,263 | 1,822 | 21,424 | |
Net (income) loss attributable to Non-Controlling Interests in consolidated entities | (1,048) | 222 | (8,967) | (3,891) | |
Transaction-related charges, net | $ 8,514 | $ 18,041 | $ 10,789 | $ 25,315 |
SUBSEQUENT EVENTS (Detail)
SUBSEQUENT EVENTS (Detail) - $ / shares | Nov. 01, 2017 | Aug. 02, 2017 | Apr. 28, 2017 | Apr. 13, 2017 | Feb. 03, 2017 | Oct. 28, 2016 | Aug. 03, 2016 | May 06, 2016 | Feb. 03, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||||||||||||
Distributions declared per Class A Share (USD per share) | $ 0.52 | $ 0.37 | $ 1.46 | $ 0.90 | ||||||||||
Common Class A Shares | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Distributions declared per Class A Share (USD per share) | $ 0.52 | $ 0.49 | $ 0 | $ 0.45 | $ 0.35 | $ 0.37 | $ 0.25 | $ 0.28 | $ 1.46 | $ 1.25 | ||||
Common Class A Shares | Subsequent Event | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Distributions declared per Class A Share (USD per share) | $ 0.39 | |||||||||||||
Series A Preferred Stock | Subsequent Event | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Distributions declared per Class A Share (USD per share) | $ 0.3984375 |