Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35107 | |
Entity Registrant Name | APOLLO ASSET MANAGEMENT, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8880053 | |
Entity Address, Address Line One | 9 West 57th Street, | |
Entity Address, Address Line Two | 42nd Floor | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 515-3200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0001411494 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
6.375% Series A Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.375% Series A Preferred Stock | |
Trading Symbol | AAM.PR A | |
Security Exchange Name | NYSE | |
6.375% Series B Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.375% Series B Preferred Stock | |
Trading Symbol | AAM.PR B | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 1,118,305 | $ 917,183 |
Restricted cash and cash equivalents | 696,712 | 707,885 |
Investments (includes performance allocations of $2,502,446 and $2,731,733 as of September 30, 2022 and December 31, 2021, respectively) | 6,090,938 | 11,353,580 |
Assets of consolidated variable interest entities: | ||
Other assets | 1,084,421 | 585,901 |
Due from related parties | 687,687 | 493,826 |
Deferred tax assets, net | 659,662 | 424,132 |
Other assets | 1,084,421 | 585,901 |
Lease assets | 596,487 | 450,531 |
Goodwill | 263,744 | 116,958 |
Total Assets | 12,318,082 | 30,501,894 |
Liabilities: | ||
Accounts payable and accrued expenses | 126,603 | 145,054 |
Accrued compensation and benefits | 262,804 | 130,107 |
Deferred revenue | 134,949 | 119,688 |
Due to related parties | 1,681,013 | 1,222,402 |
Profit sharing payable | 1,497,780 | 1,444,652 |
Debt | 2,810,055 | 3,134,396 |
Liabilities of consolidated variable interest entities: | ||
Other liabilities | 305,210 | 500,980 |
Other liabilities | 305,210 | 500,980 |
Lease liabilities | 669,081 | 505,206 |
Total Liabilities | 8,145,121 | 18,537,494 |
Commitments and Contingencies (see note 15) | ||
Redeemable non-controlling interests: | ||
Redeemable non-controlling interests | 1,023,707 | 1,770,034 |
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid in capital | 1,242,618 | 2,096,403 |
Retained earnings (accumulated deficit) | (3,901) | 1,143,899 |
Accumulated other comprehensive loss | (9,906) | (5,374) |
Total Apollo Asset Management, Inc. Stockholders’ Equity | 1,783,024 | 3,789,141 |
Total Stockholders’ Equity | 3,149,254 | 10,194,366 |
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity | 12,318,082 | 30,501,894 |
Consolidated Variable Interest Entities | ||
Assets: | ||
Cash and cash equivalents | 84,132 | |
Assets of consolidated variable interest entities: | ||
Cash and cash equivalents | 84,132 | 463,266 |
Investments, at fair value | 1,016,819 | 14,737,051 |
Other assets | 19,175 | 251,581 |
Other assets | 19,175 | 251,581 |
Liabilities of consolidated variable interest entities: | ||
Debt, at fair value | 0 | 7,942,508 |
Notes payable | 49,990 | 2,611,019 |
Other liabilities | 607,636 | 781,482 |
Other liabilities | 607,636 | 781,482 |
Consolidated Entities Excluding VIE | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Non-controlling interests | 371,439 | 3,813,885 |
Series A Preferred Stock | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Preferred stock | 264,398 | 264,398 |
Series B Preferred Stock | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Preferred stock | 289,815 | 289,815 |
Class A Common Stock | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Class C Common Stock | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Apollo Operating Group | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||
Non-controlling interests | $ 994,791 | $ 2,591,340 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Performance allocations | $ 2,502,446 | $ 2,731,733 |
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 40,000,000 | 0 |
Common stock, shares issued (in shares) | 1,000 | 0 |
Common stock, shares outstanding (in shares) | 1,000 | 0 |
Series A Preferred Stock | ||
Preferred stock, shares issued (in shares) | 11,000,000 | 11,000,000 |
Preferred stock, shares outstanding (in shares) | 11,000,000 | 11,000,000 |
Series B Preferred Stock | ||
Preferred stock, shares issued (in shares) | 12,000,000 | 12,000,000 |
Preferred stock, shares outstanding (in shares) | 12,000,000 | 12,000,000 |
Class A Common Stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 0 | 90,000,000,000 |
Common stock, shares issued (in shares) | 0 | 248,896,649 |
Common stock, shares outstanding (in shares) | 0 | 248,896,649 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 0 | 999,999,999 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Class C Common Stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 0 | 1 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Investment income (loss) | $ (29,248) | $ 536,494 | $ 480,889 | $ 3,125,371 |
Total Revenues | 672,845 | 1,079,298 | 2,450,009 | 4,756,323 |
Expenses: | ||||
Compensation and benefits | 386,146 | 501,668 | 1,429,155 | 1,983,770 |
Interest expense | 32,219 | 34,820 | 96,644 | 104,433 |
General, administrative and other | 161,208 | 112,419 | 452,292 | 329,235 |
Total Expenses | 579,573 | 648,907 | 1,978,091 | 2,417,438 |
Other Income: | ||||
Net gains (losses) from investment activities | (16,148) | 172,798 | 901,168 | 1,439,343 |
Net gains from investment activities of consolidated variable interest entities | 11,387 | 142,455 | 327,459 | 400,452 |
Interest income | 15,377 | 2,114 | 23,999 | 3,557 |
Other income (loss), net | 3,533 | (14,907) | (9,480) | (28,126) |
Total Other Income | 14,149 | 302,460 | 1,243,146 | 1,815,226 |
Income before income tax provision | 107,421 | 732,851 | 1,715,064 | 4,154,111 |
Income tax provision | (22,069) | (101,434) | (163,870) | (498,731) |
Net Income | 85,352 | 631,417 | 1,551,194 | 3,655,380 |
Net income attributable to non-controlling interests | (61,922) | (373,095) | (862,675) | (2,060,441) |
Net Income Attributable to Apollo Asset Management, Inc. | 23,430 | 258,322 | 688,519 | 1,594,939 |
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders | 14,266 | 249,158 | 661,026 | 1,567,447 |
Series A Preferred Stock Dividends | ||||
Other Income: | ||||
Preferred Stock Dividends | (4,383) | (4,382) | (13,149) | (13,148) |
Series B Preferred Stock Dividends | ||||
Other Income: | ||||
Preferred Stock Dividends | (4,781) | (4,782) | (14,344) | (14,344) |
Management fees | ||||
Revenues: | ||||
Revenues | 582,665 | 474,537 | 1,665,611 | 1,401,814 |
Advisory and transaction fees, net | ||||
Revenues: | ||||
Revenues | 110,141 | 62,831 | 286,419 | 205,530 |
Incentive fees | ||||
Revenues: | ||||
Revenues | $ 9,287 | $ 5,436 | $ 17,090 | $ 23,608 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 85,352 | $ 631,417 | $ 1,551,194 | $ 3,655,380 |
Other Comprehensive Loss, net of tax: | ||||
Currency translation adjustments, net of tax | (34,098) | (10,712) | (70,510) | (22,148) |
Net gain from change in fair value of cash flow hedge instruments | 0 | 49 | 1,976 | 151 |
Net gain (loss) on available-for-sale securities | (232) | 21 | (2,131) | 691 |
Total Other Comprehensive Loss, net of tax | (34,330) | (10,642) | (70,665) | (21,306) |
Comprehensive Income | 51,022 | 620,775 | 1,480,529 | 3,634,074 |
Comprehensive income attributable to non-controlling interests | (29,642) | (363,013) | (796,542) | (2,040,166) |
Comprehensive Income Attributable to Apollo Asset Management, Inc. | $ 21,380 | $ 257,762 | $ 683,987 | $ 1,593,908 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Common Stock Class C Common Stock | Preferred Stock Series A Preferred Stock | Preferred Stock Series B Preferred Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Apollo Asset Management, Inc. Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non- Controlling Interests in Apollo Operating Group |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 228,873,449 | 1 | 1 | ||||||||||
Balance, beginning of period at Dec. 31, 2020 | $ 5,513,263 | $ 264,398 | $ 289,815 | $ 877,173 | $ 0 | $ (2,071) | $ 1,429,315 | $ 2,275,728 | $ 1,808,220 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Consolidation/ deconsolidation of VIEs | (147,920) | (147,920) | |||||||||||
Accretion of redeemable non-controlling interests | (49,554) | (49,554) | (49,554) | ||||||||||
Issuance of Class A Common Stock related to equity transactions (in shares) | 361,037 | ||||||||||||
Issuance of Class A Common Stock related to equity transactions | 22,150 | 22,150 | 22,150 | ||||||||||
Dilution impact of issuance of Class A Common Stock | (7,994) | (7,994) | (7,994) | ||||||||||
Capital increase related to equity-based compensation | 131,889 | 131,889 | 131,889 | ||||||||||
Capital contributions | 1,189,296 | 1,189,296 | |||||||||||
Dividends/ Distributions | (1,597,750) | (13,148) | (14,344) | (389,661) | (417,153) | (778,529) | (402,068) | ||||||
Payments related to issuances of Class A Common Stock for equity-based awards (in shares) | 2,981,780 | ||||||||||||
Payments related to issuances of Class A Common Stock for equity-based awards | (62,491) | 36,439 | (98,930) | (62,491) | |||||||||
Repurchase of Class A Common Stock (in shares) | (3,444,713) | ||||||||||||
Repurchase of Class A Common Stock | (200,605) | (200,605) | (200,605) | ||||||||||
Exchange of AOG Units for Class A Common Stock (in shares) | 16,621,639 | ||||||||||||
Exchange of AOG Units for Class A Common Stock | 49,687 | 208,441 | 208,441 | (158,754) | |||||||||
Net Income | 3,655,380 | 13,148 | 14,344 | 1,567,447 | 1,594,939 | 299,423 | 1,761,018 | ||||||
Currency translation adjustments, net of tax | (22,148) | (1,527) | (1,527) | (19,151) | (1,470) | ||||||||
Net gain from change in fair value of cash flow hedge instruments | 151 | 82 | 82 | 69 | |||||||||
Net income (Loss) on available-for-sale securities | 691 | 414 | 414 | 277 | |||||||||
Balance, end of period (in shares) at Sep. 30, 2021 | 245,393,192 | 1 | 1 | ||||||||||
Balance, end of period at Sep. 30, 2021 | 8,474,045 | 264,398 | 289,815 | 1,017,939 | 1,078,856 | (3,102) | 2,647,906 | 2,818,847 | 3,007,292 | ||||
Balance, beginning of period (in shares) at Jun. 30, 2021 | 231,366,321 | 1 | 1 | ||||||||||
Balance, beginning of period at Jun. 30, 2021 | 8,212,435 | 264,398 | 289,815 | 822,612 | 990,798 | (2,542) | 2,365,081 | 2,838,121 | 3,009,233 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Consolidation/ deconsolidation of VIEs | (22,705) | (22,705) | |||||||||||
Accretion of redeemable non-controlling interests | (6,911) | (6,911) | (6,911) | ||||||||||
Issuance of Class A Common Stock related to equity transactions (in shares) | 361,037 | ||||||||||||
Issuance of Class A Common Stock related to equity transactions | 22,150 | 22,150 | 22,150 | ||||||||||
Dilution impact of issuance of Class A Common Stock | (6,699) | (6,699) | (6,699) | ||||||||||
Capital increase related to equity-based compensation | 45,631 | 45,631 | 45,631 | ||||||||||
Capital contributions | 176,878 | 176,878 | |||||||||||
Dividends/ Distributions | (530,012) | (4,382) | (4,782) | 0 | (125,843) | (135,007) | (276,561) | (118,444) | |||||
Payments related to issuances of Class A Common Stock for equity-based awards (in shares) | 1,164,390 | ||||||||||||
Payments related to issuances of Class A Common Stock for equity-based awards | (2,032) | 33,225 | (35,257) | (2,032) | |||||||||
Repurchase of Class A Common Stock (in shares) | (1,300,000) | ||||||||||||
Repurchase of Class A Common Stock | (77,902) | (77,902) | (77,902) | ||||||||||
Exchange of AOG Units for Class A Common Stock (in shares) | 13,801,444 | ||||||||||||
Exchange of AOG Units for Class A Common Stock | 42,437 | 185,833 | 185,833 | (143,396) | |||||||||
Net Income | 631,417 | 4,382 | 4,782 | 249,158 | 258,322 | 112,569 | 260,526 | ||||||
Currency translation adjustments, net of tax | (10,712) | (599) | (599) | (9,455) | (658) | ||||||||
Net gain from change in fair value of cash flow hedge instruments | 49 | 27 | 27 | 22 | |||||||||
Net income (Loss) on available-for-sale securities | 21 | 12 | 12 | 9 | |||||||||
Balance, end of period (in shares) at Sep. 30, 2021 | 245,393,192 | 1 | 1 | ||||||||||
Balance, end of period at Sep. 30, 2021 | 8,474,045 | 264,398 | 289,815 | 1,017,939 | 1,078,856 | (3,102) | 2,647,906 | 2,818,847 | 3,007,292 | ||||
Balance, beginning of period (in shares) at Dec. 31, 2021 | 248,896,649 | ||||||||||||
Balance, beginning of period at Dec. 31, 2021 | 10,194,366 | 264,398 | 289,815 | 2,096,403 | 1,143,899 | (5,374) | 3,789,141 | 3,813,885 | 2,591,340 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Reverse stock split (in shares) | (248,895,649) | ||||||||||||
Consolidation/ deconsolidation of VIEs | (4,356,218) | 7,741 | (6,865) | 876 | (4,357,094) | ||||||||
Accretion of redeemable non-controlling interests | (58,989) | (58,989) | (58,989) | ||||||||||
Capital contributions | 2,317,122 | 819,341 | 819,341 | 1,497,781 | |||||||||
Dividends/ Distributions | (6,450,142) | (13,149) | (14,344) | (1,644,464) | (1,801,961) | (3,473,918) | (802,153) | (2,174,071) | |||||
Transactions between entities under common control | 22,586 | 22,586 | 22,586 | ||||||||||
Net Income | 1,551,194 | 13,149 | 14,344 | 661,026 | 688,519 | 276,984 | 585,691 | ||||||
Currency translation adjustments, net of tax | (70,510) | (3,901) | (3,901) | (57,964) | (8,645) | ||||||||
Net gain from change in fair value of cash flow hedge instruments | 1,976 | 882 | 882 | 1,094 | |||||||||
Net income (Loss) on available-for-sale securities | (2,131) | (1,513) | (1,513) | (618) | |||||||||
Balance, end of period (in shares) at Sep. 30, 2022 | 1,000 | ||||||||||||
Balance, end of period at Sep. 30, 2022 | 3,149,254 | 264,398 | 289,815 | 1,242,618 | (3,901) | (9,906) | 1,783,024 | 371,439 | 994,791 | ||||
Balance, beginning of period (in shares) at Jun. 30, 2022 | 1,000 | ||||||||||||
Balance, beginning of period at Jun. 30, 2022 | 3,260,969 | 264,398 | 289,815 | 1,378,038 | 0 | (7,856) | 1,924,395 | 381,697 | 954,877 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Consolidation/ deconsolidation of VIEs | 296,936 | 296,936 | |||||||||||
Accretion of redeemable non-controlling interests | (10,402) | (10,402) | (10,402) | ||||||||||
Capital contributions | 91,273 | 90,549 | 90,549 | 724 | |||||||||
Dividends/ Distributions | (563,130) | (4,383) | (4,781) | (238,153) | (18,167) | (265,484) | (297,646) | 0 | |||||
Transactions between entities under common control | 22,586 | 22,586 | 22,586 | ||||||||||
Net Income | 85,352 | 4,383 | 4,781 | 14,266 | 23,430 | 17,795 | 44,127 | ||||||
Currency translation adjustments, net of tax | (34,098) | (1,917) | (1,917) | (28,067) | (4,114) | ||||||||
Net gain from change in fair value of cash flow hedge instruments | 0 | ||||||||||||
Net income (Loss) on available-for-sale securities | (232) | (133) | (133) | (99) | |||||||||
Balance, end of period (in shares) at Sep. 30, 2022 | 1,000 | ||||||||||||
Balance, end of period at Sep. 30, 2022 | $ 3,149,254 | $ 264,398 | $ 289,815 | $ 1,242,618 | $ (3,901) | $ (9,906) | $ 1,783,024 | $ 371,439 | $ 994,791 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,551,194 | $ 3,655,380 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Equity-based compensation | 372,922 | 165,664 |
Depreciation and amortization | 57,867 | 19,895 |
Unrealized (gains) losses from investment activities | 130,901 | (1,403,617) |
Net investment income | (480,889) | (3,125,371) |
Deferred taxes, net | (239,902) | 357,212 |
Other non-cash amounts included in net income (loss), net | 33,748 | 29,995 |
Changes in operating assets and liabilities: | ||
Due from related parties | (71,710) | (11,784) |
Accounts payable and accrued expenses | (18,600) | 89,330 |
Accrued compensation and benefits | 135,341 | 156,899 |
Deferred revenue | 15,262 | 144,835 |
Due to related parties | 2,784 | (15,260) |
Profit sharing payable | 76,028 | 537,572 |
Lease liability | (46,207) | (21,017) |
Other assets and other liabilities, net | (899,127) | 95,686 |
Earnings from net investment income | 840,193 | 1,717,972 |
Satisfaction of contingent obligations | (13,259) | (20,609) |
Apollo Funds and VIE related: | ||
Net cash provided by (used in) operating activities | (499,684) | 2,136,995 |
Cash Flows from Investing Activities: | ||
Purchases of fixed assets | (152,559) | (27,729) |
Proceeds from sale of investments | 39,106 | 88,595 |
Purchase of investments | (340,983) | (369,716) |
Purchase of U.S. Treasury securities | (2,650,907) | 0 |
Proceeds from maturities of U.S. Treasury securities | 2,154,352 | 0 |
Cash contributions to principal investments | (160,981) | (255,495) |
Cash distributions from principal investments | 60,954 | 247,798 |
Related party inflows (Repayments) | 19,839 | 96,308 |
Related party outflows (Issuances) | (17,087) | (121,605) |
Other investing activities, net | 0 | (1,387) |
Net cash used in investing activities | (230,069) | (343,604) |
Cash Flows from Financing Activities: | ||
Dividends to Preferred Stockholders | (27,493) | (27,492) |
Satisfaction of tax receivable agreement | (51,032) | (39,884) |
Distributions related to AGM’s repurchase of Common Stock | 0 | (200,605) |
Distributions related to deliveries of AGM’s Common Stock for RSUs | (165,194) | (98,930) |
Dividends / Distributions | (720,377) | (389,661) |
Distributions paid to non-controlling interests in Apollo Operating Group | 0 | (402,068) |
AOG Unit Payment | (175,267) | 0 |
Due to parent, net | 667,942 | 0 |
Other financing activities, net | (2,772) | (3,118) |
Apollo Funds and VIE related: | ||
Net cash provided by (used in) financing activities | 540,568 | (444,324) |
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs | (189,185) | 1,349,067 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs, Beginning of Period | 2,088,334 | 2,466,531 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs, End of Period | 1,899,149 | 3,815,598 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 84,222 | 95,912 |
Interest paid by consolidated variable interest entities | 171,857 | 321,520 |
Income taxes paid | 103,902 | 79,071 |
Supplemental Disclosure of Non-Cash Investing Activities: | ||
Contributions to principal investments | 0 | 57,911 |
Distributions from principal investments | 5,870 | 92,402 |
Purchases of other investments, at fair value | 21,531 | 0 |
Sales of other investments, at fair value | 115,813 | 0 |
Capital increases related to equity-based compensation | 321,460 | 131,889 |
Contributions | 334,919 | 0 |
Issuance of restricted shares | 33,460 | 36,439 |
Other non-cash financing activities | 0 | (7,994) |
Investments, at fair value | (15,996,073) | (244,675) |
Other assets | (97,925) | 0 |
Debt at Fair Value | 9,350,540 | 36,857 |
Notes payable | 2,611,019 | 107,500 |
Other liabilities | 528,595 | 22,704 |
Non-controlling interest | 4,396,682 | 125,215 |
Deferred tax assets | 0 | 292,844 |
Due to related parties | 0 | (243,157) |
Additional paid in capital | 0 | (49,687) |
Non-controlling interest in Apollo Operating Group | 0 | 158,754 |
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Consolidated Statements of Financial Condition: | ||
Cash and cash equivalents | 1,118,305 | 2,090,197 |
Restricted cash and cash equivalents | 696,712 | 1,052,782 |
Total Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities | 1,899,149 | 3,815,598 |
Consolidated Variable Interest Entities | ||
Apollo Funds and VIE related: | ||
Net realized and unrealized gains from investing activities and debt | (115,445) | (444,064) |
Change in consolidation | (792,838) | (47,601) |
Purchases of investments | (4,819,793) | (2,886,717) |
Proceeds from sale of investments | 3,106,215 | 3,188,133 |
Changes in other assets and other liabilities, net | 675,631 | (45,538) |
Cash Flows from Investing Activities: | ||
Purchase of U.S. Treasury securities | (1,508,782) | (1,634,259) |
Proceeds from maturities of U.S. Treasury securities | 2,326,979 | 1,633,886 |
Apollo Funds and VIE related: | ||
Issuance of debt | 1,760,996 | 842,299 |
Principal repayment of debt | (668,362) | (1,539,457) |
Distributions paid to non-controlling interests in consolidated entities | (798,458) | (774,876) |
Contributions from non-controlling interests in consolidated entities | 1,496,857 | 1,188,691 |
Distributions to redeemable non-controlling interests | (776,272) | 0 |
Payment of underwriting discounts | 0 | (34,223) |
Proceeds from issuance of Class A Units of a SPAC | 0 | 1,035,000 |
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Consolidated Statements of Financial Condition: | ||
Cash and cash equivalents | $ 84,132 | $ 672,619 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Apollo Asset Management, Inc. (“AAM”, together with its consolidated subsidiaries, the “Company” or “Apollo”) is a high-growth, global alternative asset manager whose predecessor was founded in 1990. Its primary business is to raise, invest and manage funds 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, incentive fees and performance allocations related to the performance of the respective funds that it manages. As of September 30, 2022, Apollo had two primary business segments: • Asset Management — focuses on three investing strategies: yield, hybrid and equity; yield focuses on generating excess returns through high quality credit underwriting and origination of safe-yielding assets; hybrid focuses across debt and equity to offer a differentiated risk-adjusted return with an emphasis on structured downside protected opportunities across asset classes; and within equity, controlled transactions are principally buyouts, corporate carveouts and distressed investments, while our real estate funds generally focus on single asset, portfolio and platform acquisitions; • Principal Investing — primarily includes our general partner investments in the funds we manage, where we earn realized performance fee income based on the investment performance of these funds. Principal investing also includes our growth capital and liquidity resources, and seeks to deploy capital into strategic investments over time to help accelerate the growth of the asset management segment. Organization of the Company As of September 30, 2022, the Company owned 57.4% of the economic interests of, and operated and controlled all of the businesses and affairs of, the Apollo Operating Group. The remaining 42.6% of the economic interests of the Apollo Operating Group are owned by Apollo Global Management, Inc. (“AGM”). Apollo and Athene Merger On January 1, 2022, Apollo and Athene Holding Ltd. (“Athene”) completed the previously announced merger transactions pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) by and among AAM, Tango Holdings, Inc., a Delaware corporation and a then wholly-owned subsidiary of AAM (“HoldCo”), Blue Merger Sub, Ltd., a Bermuda exempted company and a direct wholly-owned subsidiary of HoldCo (“AHL Merger Sub”), and Green Merger Sub, Inc., a Delaware corporation and a direct wholly-owned subsidiary of HoldCo (“AAM Merger Sub”). At the closing of the transactions, AHL Merger Sub merged with and into AHL (the “AHL Merger”), with AHL as the surviving entity in the AHL Merger and a subsidiary of HoldCo, and AAM Merger Sub merged with and into AAM (the “AAM Merger” and, together with the AHL Merger, the “Mergers”) with AAM as the surviving entity in the AAM Merger and a subsidiary of HoldCo. In connection with the closing of the Mergers, HoldCo was renamed “Apollo Global Management, Inc.” Following the closing of the Mergers, all of the common shares of AHL and AAM are owned by AGM. In connection with the closing of the Mergers, the Company completed a corporate recapitalization (the “Corporate Recapitalization”) which resulted in the recapitalization of AGM from an umbrella partnership C corporation (“up-C”) structure to a corporation with a single class of common stock with one vote per share. Griffin Capital Contributions On March 1, 2022, AGM, the parent company of AAM, completed the acquisition of Griffin Capital’s U.S. wealth distribution business. On May 3, 2022, AGM completed the acquisition of Griffin Capital’s U.S. asset management business. On the dates of each acquisition, AGM concurrently executed agreements pursuant to which AGM contributed its interests in the respective Griffin Capital businesses to subsidiaries of AAM. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
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. generally accepted accounting principles (“U.S. GAAP”). These condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the 2021 Annual Report. Certain disclosures included in the annual financial statements have been condensed or omitted as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. 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. The results of the Company and its subsidiaries are presented on a consolidated basis. Any ownership interest other than the Company’s interest in its subsidiaries is reflected as a non-controlling interest. Intercompany accounts and transactions have been eliminated. 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 any estimates made are reasonable and prudent. Certain reclassifications have been made to previously reported amounts to conform to the current period’s presentation. Consolidation When an entity is consolidated, the accounts of the consolidated entity, including its assets, liabilities, revenues, expenses and cash flows, are presented on a gross basis. Consolidation does not have an effect on the amounts of net income reported. The Company consolidates entities where it has a controlling financial interest unless there is a specific scope exception that prevents consolidation. The types of entities with which the Company is involved generally include, but are not limited to: • Subsidiaries, including management companies and general partners of funds that the Company manages • Entities that have attributes of an investment company (e.g., funds) • Special purpose acquisition companies (“SPACs”) • Securitization vehicles (e.g., collateralized loan obligations (“CLOs”)) Each of these entities is assessed for consolidation depending on the specific facts and circumstances surrounding that entity. In determining whether to consolidate an entity, the Company first evaluates whether the entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”) and applies the appropriate consolidation model as discussed below. If an entity is not consolidated, then the Company’s investment is generally accounted for under the equity method of accounting or as a financial instrument as discussed in the related policy discussions below. Investment Companies Judgment is required to evaluate whether an entity has the necessary characteristics to be accounted for as an investment company. Funds we manage that meet the investment company criteria are generally not required to consolidate operating companies and generally reflect their investments in operating companies and other investment companies at fair value. The Company has retained this specialized accounting for investment companies in consolidation. Variable Interest Entities All entities are first considered under the VIE model. VIEs are entities that i) do not have sufficient equity at risk to finance its activities without additional subordinated financial support or ii) have equity investors that do not have the ability to make significant decisions related to the entity’s operations, absorb expected losses, or receive expected residual returns. The Company consolidates a VIE if it is the primary beneficiary of the entity. The Company is deemed 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 (“primary beneficiary power”) and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (“significant variable interest”). The Company performs the VIE and primary beneficiary assessment at inception of its involvement with a VIE and on an ongoing basis if facts and circumstances change. To assess whether the Company has the primary beneficiary power under the VIE consolidation model, it considers the design of the entity as well as ongoing rights and responsibilities. In general, the parties that can make the most significant decisions regarding asset management have control over servicing, liquidation rights or the unilateral right to remove the decision-makers. To assess whether the Company has a significant variable interest, the Company considers all its economic interests that are considered variable interests in the entity including interests held through related parties. This assessment requires judgment in considering whether those interests are significant. Assets and liabilities of the consolidated VIEs, other than SPACs, 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 primarily 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 notes 6 and 14. Voting Interest Entities For entities that are not determined to be VIEs, the entities are generally considered VOEs. Under the VOE 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. Use of Estimates The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts in the financial statements and the related footnotes. Apollo’s most significant estimates include goodwill, intangible assets, income taxes, performance allocations, incentive fees, contingent consideration obligations related to an acquisition, non-cash compensation, and fair value of investments and debt. While such impact may change considerably over time, the estimates and assumptions affecting the Company’s condensed consolidated financial statements are based on the best available information as of September 30, 2022. Actual results could differ materially from those estimates. Cash and Cash Equivalents Apollo considers all highly liquid short-term investments, including money market funds and U.S. Treasury securities, with original maturities of three months or less when purchased to be cash equivalents. Restricted cash and cash equivalents are reported separately as discussed below. 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 represent their fair values due to their short-term nature. Substantially all of the Company’s cash on deposit is in interest bearing accounts with major financial institutions and exceed insured limits. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents represent balances that are restricted as to withdrawal or usage. Restricted cash and cash equivalents of Apollo Strategic Growth Capital II (“APSG II”), a consolidated SPAC, is held in trust accounts and includes money market funds and U.S. Treasury bills with original maturities of three months or less, that were purchased with funds raised through the respective initial public offering of the consolidated entity. The $694.5 million in funds for APSG II as of September 30, 2022 is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in APSG II’s trust agreement. Refer to note 14 for further detail. 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 within investments in the condensed consolidated statements of financial condition. 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 (losses) from investment activities in the condensed consolidated statements of operations. Securities are generally recognized on a trade date basis. U.S. Treasury securities, at fair value of Acropolis Infrastructure Acquisition Corp. (“Acropolis”), a consolidated SPAC, is held in a trust account and consists of U.S Treasury bills that were purchased with funds raised through the initial public offering of the consolidated entity. The $347.2 million in funds as of September 30, 2022 are restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement. 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 in an orderly transaction. Changes in the fair value of financial instruments are recorded and presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statement of operations. Financial instruments are generally recorded at fair value or at carrying values that approximate fair value. 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. Fair Value Option Entities are permitted to elect the fair value option (“FVO”) to carry at fair value certain financial assets and financial liabilities. The FVO election is irrevocable and can be applied to eligible financial instruments on an individual basis at initial recognition or at eligible remeasurement events. The Company has elected the FVO for financial instruments held by its consolidated CLOs, which includes investments in loans and corporate bonds, as well as debt obligations and contingent obligations. Certain consolidated VIEs have applied the FVO for investments in private debt securities that otherwise would not have been carried at fair value with gains and losses in net income. The Company has also elected the FVO for certain investments otherwise accounted for under the equity method of accounting. Refer to note 4 for additional information and other instances of when the Company has elected the FVO. 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 equity and hybrid 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 external pricing services. 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. 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. Equity Method Investments For equity investments in entities where the Company exercises significant influence but does not meet the requirements for consolidation and has not elected the fair value option, the Company uses the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities adjusted for distributions. The Company’s share of the underlying net income or loss of such entities is recorded in Investment income (loss) 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. Generally, the underlying entities that the Company manages and invests in are primarily investment companies, and the carrying value of the Company’s equity method investments approximates fair value. Financial Instruments held by Consolidated VIEs Under a measurement alternative permissible for consolidated collateralized financing entities, the Company measures both the financial assets and financial liabilities of consolidated CLOs in its condensed consolidated financial statements using the fair value of the financial assets or financial liabilities, whichever are more observable. Where financial assets are more observable, 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 nonfinancial 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. Where financial liabilities are more observable, the financial liabilities of the consolidated CLOs are measured at fair value and the financial assets are measured in consolidation as: (i) the sum of the fair value of the financial liabilities, and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CLOs less (ii) the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs. The resulting amount is allocated to the individual financial assets using a reasonable and consistent methodology. Net income attributable to Apollo Asset Management, Inc. 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. Deferred Revenue Apollo records deferred revenue, which is a type of contract liability, when consideration is received in advance of management services provided. Apollo also earns management fees subject to the Management Fee Offset (described below). 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 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. There was $109.7 million of revenue recognized during the nine months ended September 30, 2022 that was previously deferred as of January 1, 2022. 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 cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract, and amortized over the life of the customer contract. Capitalized placement fees are recorded within other assets in the condensed consolidated statements of financial condition, while amortization is recorded within placement fees in the condensed consolidated statements of operations. 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. Redeemable non-controlling interests Redeemable non-controlling interests are attributable to VIEs and primarily represent the shares issued by the Company’s consolidated SPACs that are redeemable for cash by the respective public shareholders in connection with the applicable SPAC’s failure to complete a business combination or its tender offer/stockholder approval provisions. The redeemable non-controlling interests are initially recorded at their original issue price, net of issuance costs and the initial fair value of separately traded warrants. The carrying amount is accreted to its redemption value over the period from the date of issuance to the earliest redemption date of the instrument. The accretion to redemption value is generally recorded against additional paid-in capital. Refer to note 14 for further detail. Revenues The Company’s revenues include (i) management fees; (ii) advisory and transaction fees, net; (iii) investment income, which is comprised of performance allocations and principal investment income; and (iv) incentive fees. The Company is required to 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, the Company may recognize variable consideration only to the extent that it is probable to not be significantly reversed. The Company is also required to disclose the nature, amount, timing, and uncertainty of revenue that is recognized. Performance allocations are accounted for as equity method investments. The Company recognizes performance allocations within investment income along with the related principal investment income (as further described below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition. Refer to disclosures below for additional information on each of the Company’s revenue streams. Management Fees Management fees are recognized over time during the periods in which the related services are performed in accordance with the contractual terms of the related agreement. Management fees are generally based on (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, Net Advisory fees, including management consulting fees and directors’ fees, are generally recognized over time as the underlying services are provided in accordance with the contractual terms of the related agreement. The Company receives such fees in exchange for ongoing management consulting services provided to portfolio companies of funds it manages. Transaction fees, including structuring fees and arranging fees related to the Company’s funds, portfolio companies of funds and third parties are generally recognized at a point in time when the underlying services rendered are complete. The amounts due from fund portfolio companies are recorded in due from related parties on the condensed consolidated statements of financial condition, which is discussed further in note 14. 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 are presented net of the Management Fee Offset in the condensed consolidated statements of operations. Underwriting fees, which are also included within advisory and transaction fees, net, include gains, losses and fees, arising from securities offerings in which one of the Company’s subsidiaries participates in the underwriter syndicate. Underwriting fees are recognized at a point in time when the underwriting is completed. Underwriting fees recognized but not received are recorded in other assets on the condensed consolidated statements of financial condition. 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. 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. Investment Income Investment income is comprised of performance allocations and principal investment income. Performance Allocations Performance allocations are a type of performance revenue (i.e., income earned based on the extent to which an entity’s performance exceeds predetermined thresholds). Performance allocations are generally structured from a legal standpoint as an allocation of capital in which the Company’s capital account receives allocations of the returns of an entity when those returns exceed predetermined thresholds. The determination of which performance revenues are considered performance allocations is primarily based on the terms of an agreement with the entity. The Company recognizes performance allocations within investment income along with the related principal investment income (as described further below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition. When applicable, the Company may record a general partner obligation to return previously distributed performance allocations. The general partner obligation is based upon an assumed liquidation of a fund’s net assets as of the reporting date and is reported within due to related parties on the condensed consolidated statements of financial condition. 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 or other governing document of the fund. Principal Investment Income Principal investment income includes the Company’s income or loss from equity method investments and certain other investments in entities in which the Company is generally eligible to receive performance allocations. Income from equity method investments includes the Company’s share of net income or loss generated from its investments, which are not consolidated, but in which the Company exerts significant influence. Incentive Fees Incentive fees are a type of performance revenue. Incentive fees differ from performance allocations in that incentive fees do not represent an allocation of capital but rather a contractual fee arrangement with the entity. Incentive fees are considered a form of variable consideration as they are subject to clawback or reversal and therefore must be deferred until the fees are probable to not be significantly reversed. Accrued but unpaid incentive fees are reported within incentive fees receivable in the Company’s condensed consolidated statements of financial condition. The Company’s incentive fees primarily relate to the yield investing strategy and are generally received from CLOs, managed accounts and MFIC. Compensation and Benefits Salaries, Bonus and Benefits Salaries, bonus and benefits include base salaries, discretionary and non-discretionary bonuses, severance and employee benefits. Bonuses are generally accrued over the related service period. Equity-Based Compensation Equity-based awards granted to employees and non-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. In addition, certain restricted share units (“RSUs”) granted by AGM vest based on both continued service and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation expense. In accordance with U.S. GAAP, equity-based compensation expense for such awards, if and when granted, will be recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. The Company accounts for forfeitures of equity-based awards when they occur. Profit Sharing Profit sharing expense and profit sharing payable primarily consist of a portion of |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL In connection with the completion of the Mergers, the Company undertook a strategic review of its operating structure and business segments to assess the performance of its businesses and the allocation of resources. As a result, the Company reorganized into two reportable segments, asset management and principal investing. The Company conducted interim impairment testing immediately prior and subsequent to the reorganization and determined there to be no impairment of historical goodwill. The following table presents Apollo’s goodwill by segment: As of As of Asset Management $ 231,562 $ 84,776 Principal Investing 32,182 32,182 Total Goodwill $ 263,744 $ 116,958 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS The following table presents Apollo’s investments: As of As of Investments, at fair value $ 1,131,409 $ 5,588,992 Equity method investments 1,085,035 1,345,750 Performance allocations 2,502,446 2,731,733 U.S. Treasury Securities, at fair value 1,372,048 1,687,105 Total Investments $ 6,090,938 $ 11,353,580 Investments, at Fair Value Investments, at fair value, consist of investments for which the fair value option has been elected and primarily include the Company’s investment in Athora, investments in debt of unconsolidated CLOs and, as of December 31, 2021, included the Company’s investment in Athene Holding. Changes in the fair value related to these investments are presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statements of operations. Prior to the Mergers, the Company’s equity investment in Athene Holding, for which the fair value option was elected, met the significance criteria as defined by the SEC as of September 30, 2021. During the first quarter of 2022, the Company’s investment in Athene Holding was distributed to AGM. As such, the following tables present summarized financial information of Athene Holding: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Statements of Operations Revenues $ — $ 8,724 $ (269) $ 19,538 Benefits and expenses — 8,004 2,504 16,689 Income (loss) before income taxes — 720 (2,773) 2,849 Income tax expense (benefit) — (50) (407) 196 Net income (loss) — 770 (2,366) 2,653 Less: Net income (loss) attributable to non-controlling interests — 37 (883) (111) Net income (loss) available to Athene Holding Ltd. shareholders $ — $ 733 $ (1,483) $ 2,764 Less: Preferred stock dividends — 35 35 106 Net income (loss) available to Athene Holding Ltd. common shareholders $ — $ 698 $ (1,518) $ 2,658 Net Gains (Losses) from Investment Activities The following table presents the realized and net change in unrealized gains reported in net gains (losses) from investment activities: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Realized gains (losses) on sales of investments, net $ (984) $ (197) $ 206,547 $ 996 Net change in unrealized gains due to changes in fair value (15,164) 172,995 694,621 1,438,347 Net gains (losses) from investment activities $ (16,148) $ 172,798 $ 901,168 $ 1,439,343 Performance Allocations Performance allocations receivable is recorded within investments in the condensed consolidated statements of financial condition. The table below provides a roll forward of the performance allocations balance: Total Performance allocations, January 1, 2022 $ 2,731,733 Change in fair value of funds 314,800 Fund distributions to the Company (544,087) Performance allocations, September 30, 2022 $ 2,502,446 The change in fair value of funds excludes the general partner obligation to return previously distributed performance allocations, which is recorded in due to related parties in the condensed consolidated statements of financial condition. See note 14 for further disclosure regarding the general partner obligation. |
PROFIT SHARING PAYABLE
PROFIT SHARING PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
Profit Sharing Payable [Abstract] | |
PROFIT SHARING PAYABLE | PROFIT SHARING PAYABLE Profit sharing payable was $1.5 billion and $1.4 billion as of September 30, 2022 and December 31, 2021, respectively. The table below provides a roll forward of the profit sharing payable balance: Total Profit sharing payable, January 1, 2022 $ 1,444,652 Profit sharing expense 366,812 Payments/other (313,684) Profit sharing payable, September 30, 2022 $ 1,497,780 Profit sharing expense includes (i) changes in amounts payable to employees and former employees entitled to a share of performance revenues in funds managed by Apollo and (ii) changes to the fair value of the contingent consideration obligations recognized in connection with certain Apollo acquisitions. Profit sharing expense excludes the potential return of profit sharing distributions that would be due if certain funds were liquidated, which is recorded in due from related parties in the condensed consolidated statements of financial condition. See note 14 for further disclosure regarding the potential return of profit sharing distributions. As discussed in note 2, under certain profit sharing arrangements, the Company requires that a portion of certain of the performance revenues distributed to its employees be used to purchase restricted shares of AGM’s common stock issued under AGM’s Equity Plan. Prior to distribution of the performance revenues, the Company records the value of the equity-based awards expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. See note 8 for further disclosure regarding deferred equity-based compensation. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A variable interest in a VIE is an investment or other interest that will absorb portions of the VIE’s expected losses and/or receive expected residual returns. Refer to note 2 for more detail about the Company’s VIE assessment and consolidation policy. Variable interests in consolidated VIEs and unconsolidated VIEs are discussed separately below. Consolidated Variable Interest Entities Consolidated VIEs include consolidated SPACs as well as certain CLOs and funds managed by the Company. The financial information for these consolidated SPACs are disclosed in note 14. The assets of consolidated VIEs are not available to creditors of the Company, and the investors in these consolidated VIEs have no recourse against the assets of the Company. Similarly, there is no recourse to the Company for the consolidated VIEs’ liabilities. Other assets include interest receivables, receivables from affiliates and due from brokers. Other liabilities include payables for securities purchased, which represent open trades within the consolidated CLOs and primarily relate to corporate loans that are expected to settle within 60 days, debt held at amortized cost and short-term payables. Included within liabilities of the consolidated VIEs are notes payable related to certain funds managed by the Company. Each series of notes in a respective consolidated VIE participates in distributions from the VIE, including principal and interest from underlying investments. Amounts allocated to the noteholders reflect amounts that would be distributed if the VIE’s assets were liquidated for cash equal to their respective carrying values, its liabilities satisfied in accordance with their terms, and all the remaining amounts distributed to the noteholders. The respective VIEs that issue the notes payable are marked at their prevailing net asset value, which approximates fair value. Results from certain funds managed by the Company are reported on a three month lag based upon the availability of financial information. 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 Months Ended For the Nine Months Ended 2022 (1) 2021 (1) 2022 (1) 2021 (1) Net gains from investment activities $ 7,740 $ 104,885 $ 105,091 $ 460,459 Net gains (losses) from debt — (4,210) 10,138 (15,737) Interest and other income 13,971 162,815 218,596 525,573 Interest and other expenses (10,324) (121,035) (6,366) (569,843) Net gains from investment activities of consolidated variable interest entities $ 11,387 $ 142,455 $ 327,459 $ 400,452 (1) Amounts reflect consolidation eliminations. Senior Secured Notes, Subordinated Notes, Subscription Lines and Secured Borrowings Included within debt, at fair value, notes payable, and other liabilities are amounts due to third-party institutions by the consolidated VIEs. The following table summarizes the principal provisions of those amounts. As of September 30, 2022 As of December 31, 2021 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) $ — N/A N/A $ 7,431,467 3.16 % 15.5 Subordinated Notes (2) — N/A N/A 613,192 N/A (1) 14.5 Subscription Lines (2) 651,491 4.87 % 0.14 — N/A N/A Secured Borrowings (2)(3) — N/A N/A 18,149 2.33 % 0.4 Total $ 651,491 $ 8,062,808 (1) The principal outstanding balance of the subordinated notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the VIEs. (2) The notes, subscription lines and borrowings of the consolidated VIEs are collateralized by assets held by each respective vehicle and assets of one vehicle may not be used to satisfy the liabilities of another vehicle. (3) As of December 31, 2021, secured borrowings consist of consolidated VIEs’ obligations through a repurchase agreement redeemable at maturity with third party lenders. The fair value of the secured borrowings as of December 31, 2021 approximates principal outstanding due to the short term nature of the borrowings. These secured borrowings are classified as a Level III liability within the fair value hierarchy. Unconsolidated Variable Interest Entities 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 maximum exposure to losses relating to these VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary. As of (2) As of (2) Apollo Exposure (1) $ 287,976 $ 240,871 (1) Represents Apollo’s direct investment in those entities in which Apollo holds a significant variable interest and certain other investments. Additionally, cumulative performance allocations are subject to reversal in the event of future losses, as discussed in note 15. (2) Some amounts included are a quarter in arrears. |
FAIR VALUE MEASUREMENTS OF FINA
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Level I Level II Level III NAV Total Assets Cash and cash equivalents (1) $ 1,118,305 $ — $ — $ — $ 1,118,305 Restricted cash and cash equivalents (2) 696,712 — — — 696,712 Cash and cash equivalents of VIEs 84,132 — — — 84,132 U.S. Treasury securities (3) 1,372,048 — — — 1,372,048 Investments, at fair value 147,061 35,615 939,742 (4) 8,991 1,131,409 Investments of VIEs, at fair value 17,185 1,412 935,396 62,826 1,016,819 Due from related parties (5) — — 41,911 — 41,911 Derivative assets (6) — 40,806 7,891 — 48,697 Total Assets $ 3,435,443 $ 77,833 $ 1,924,940 $ 71,817 $ 5,510,033 Liabilities Other liabilities of VIEs, at fair value — 2,032 — — 2,032 Contingent consideration obligations (7) — — 103,002 — 103,002 Other liabilities (8) 1,518 — — — 1,518 Total Liabilities $ 1,518 $ 2,032 $ 103,002 $ — $ 106,552 As of December 31, 2021 Level I Level II Level III NAV Total Assets Cash and cash equivalents (1) $ 917,183 $ — $ — $ — $ 917,183 Restricted cash and cash equivalents (2) 707,885 — — — 707,885 Cash and cash equivalents of VIEs 463,266 — — — 463,266 U.S. Treasury securities (3) 1,687,105 — — — 1,687,105 Investments Investment in Athene Holding 4,548,048 — — — 4,548,048 Other investments 48,493 46,267 946,184 (4) — 1,040,944 Total investments 4,596,541 46,267 946,184 — 5,588,992 Investments of VIEs, at fair value 6,232 1,055,421 13,187,803 487,595 14,737,051 Due from related parties (5) — — 47,835 — 47,835 Derivative assets (6) — 7,436 — — 7,436 Total Assets $ 8,378,212 $ 1,109,124 $ 14,181,822 $ 487,595 $ 24,156,753 Liabilities Debt of VIEs, at fair value $ — $ 446,029 $ 7,496,479 $ — $ 7,942,508 Other liabilities of VIEs, at fair value — 3,111 31,090 557 34,758 Contingent consideration obligations (7) — — 125,901 — 125,901 Other liabilities (8) 47,961 — — — 47,961 Derivative liabilities (6) — 1,520 — — 1,520 Total Liabilities $ 47,961 $ 450,660 $ 7,653,470 $ 557 $ 8,152,648 (1) Cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $0.6 million and $1.8 million, respectively, of cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information. (2) Restricted cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $694.6 million and $690.2 million, respectively, of restricted cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information. (3) U.S. Treasury securities as of September 30, 2022 and December 31, 2021 includes $347.2 million and $1.2 billion, respectively, of U.S. Treasury securities held by consolidated SPACs. Refer to note 14 for further information. (4) Investments as of September 30, 2022 and December 31, 2021 excludes $178.1 million and $175.8 million, respectively, of performance allocations classified as Level III related to certain investments for which the Company has elected the fair value option. The Company’s policy is to account for performance allocations as investments. (5) Due from related parties represents a receivable from a fund. (6) Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the condensed consolidated statements of financial condition. (7) Profit sharing payable includes contingent obligations classified as Level III. (8) Other liabilities as of September 30, 2022 includes the publicly traded warrants of APSG II. Other liabilities as of December 31, 2021 includes the publicly traded warrants of APSG I and APSG II. 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, 2022 Investments and Derivative Assets Investments of Consolidated VIEs Total Balance, Beginning of Period $ 1,079,778 $ 843,266 $ 1,923,044 Purchases 10,115 973,126 983,241 Sales of investments/distributions (116,986) (863,413) (980,399) Net realized gains (losses) 51,653 (1,296) 50,357 Changes in net unrealized gains (losses) (35,848) (16,287) (52,135) Cumulative translation adjustment (41,079) — (41,079) Balance, End of Period $ 947,633 $ 935,396 $ 1,883,029 Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date $ 11,894 $ — $ 11,894 Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — (2,169) (2,169) For the Three Months Ended September 30, 2021 Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 389,787 $ 11,877,952 $ 12,267,739 Transfer out due to deconsolidation — (924) (924) Purchases 204,587 284,605 489,192 Sale of investments/distributions — (344,659) (344,659) Net realized gains (losses) 16,488 16,616 33,104 Changes in net unrealized gains (losses) 19,766 79,212 98,978 Cumulative translation adjustment (1,873) (10,166) (12,039) Transfer into Level III (1) — 31,444 31,444 Transfer out of Level III (1) (2,422) (194,955) (197,377) Balance, End of Period $ 626,333 $ 11,739,125 $ 12,365,458 Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date $ 19,766 $ — $ 19,766 Change in net unrealized gains included in net gains (losses) from investment activities of consolidated VIEs related to investments still held at reporting date — 79,514 79,514 (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 external pricing services. For the Nine Months Ended September 30, 2022 Investments and Derivative Assets Investments of Consolidated VIEs Total Balance, Beginning of Period $ 946,184 $ 13,187,803 $ 14,133,987 Net transfer in (out) due to consolidation (deconsolidation) 21,710 (14,190,236) (14,168,526) Purchases 115,817 4,444,308 4,560,125 Sale of investments/distributions (121,118) (2,702,495) (2,823,613) Net realized gains (losses) 48,687 19,861 68,548 Changes in net unrealized gains (losses) 23,240 160,094 183,334 Cumulative translation adjustment (87,891) (10,808) (98,699) Transfer into Level III (1) 1,004 29,803 30,807 Transfer out of Level III (1) — (2,934) (2,934) Balance, End of Period $ 947,633 $ 935,396 $ 1,883,029 Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date $ 72,254 $ — $ 72,254 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — 6,613 6,613 For the Nine Months Ended September 30, 2021 Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 369,772 $ 10,962,980 $ 11,332,752 Transfer out due to consolidation — (230,641) (230,641) Purchases 204,587 1,967,028 2,171,615 Sale of investments/distributions (3,235) (1,150,592) (1,153,827) Net realized gains (losses) 17,556 29,591 47,147 Changes in net unrealized gains (losses) 48,882 411,359 460,241 Cumulative translation adjustment (9,513) (24,414) (33,927) Transfer into Level III (1) 706 41,329 42,035 Transfer out of Level III (1) (2,422) (267,515) (269,937) Balance, End of Period $ 626,333 $ 11,739,125 $ 12,365,458 Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date $ 48,882 $ — $ 48,882 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — 278,471 278,471 (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 external pricing services. The following tables summarize 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, 2022 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 104,202 $ — $ 104,202 Changes in net unrealized (gains) losses (1) (1,200) — (1,200) Balance, End of Period $ 103,002 $ — $ 103,002 For the Three Months Ended September 30, 2021 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 128,984 $ 7,206,174 $ 7,335,158 Issuances — 15,980 15,980 Repayments (7,495) (29,510) (37,005) Net realized (gains) losses — (1,681) (1,681) Changes in net unrealized (gains) losses (1) (1,902) 13,859 11,957 Cumulative translation adjustment — (10,293) (10,293) Transfers into Level III (2) — 256 256 Balance, End of Period $ 119,587 $ 7,194,785 $ 7,314,372 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date $ — $ 4,672 $ 4,672 For the Nine Months Ended September 30, 2022 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 125,901 $ 7,527,569 $ 7,653,470 Transfer out due to deconsolidation — (8,626,153) (8,626,153) Issuances — 1,645,025 1,645,025 Payments (13,259) (518,773) (532,032) Net realized (gains) losses — (480) (480) Changes in net unrealized (gains) losses (1) (9,640) (16,368) (26,008) Cumulative translation adjustment — (10,820) (10,820) Balance, End of Period $ 103,002 $ — $ 103,002 For the Nine Months Ended September 30, 2021 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 119,788 $ 7,100,620 $ 7,220,408 Issuances — 327,388 327,388 Payments (20,609) (301,414) (322,023) Net realized (gains) losses — 9,049 9,049 Changes in net unrealized (gains) losses (1) 20,408 83,005 103,413 Cumulative translation adjustment — (24,316) (24,316) Transfers into Level III (2) — 453 453 Balance, End of Period $ 119,587 $ 7,194,785 $ 7,314,372 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date $ — $ 93,743 $ 93,743 (1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations. (2) 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 quantitative inputs and assumptions used for financial assets and liabilities categorized as Level III under the fair value hierarchy: As of September 30, 2022 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (1) Financial Assets Investments $ 512,207 Embedded value N/A N/A N/A 121,666 Discounted cash flow Discount rate 8.9% - 52.8% 29.4% 305,869 Adjusted transaction value N/A N/A N/A Due from related parties 41,911 Discounted cash flow Discount rate 15.0% 15.0% Derivative assets 7,891 Option model Volatility rate 38.8% - 40.0% 39.7% Investments of consolidated VIEs: Bank loans 491,893 Adjusted transaction value N/A N/A N/A Discounted cash flow Discount rate 7.1% - 32.7% 7.6% Equity securities 411,320 Dividend discount model Discount rate 13.9% 13.9% Bonds 32,035 Discounted cash flow Discount rate 7.9% 7.9% Adjusted transaction value N/A N/A N/A Warrants 148 Discounted cash flow Discount rate 15.4% 15.4% Total Financial Assets $ 1,924,940 Financial Liabilities Contingent Consideration Obligation 103,002 Discounted cash flow Discount rate 19.0% 19.0% Total Financial Liabilities $ 103,002 As of December 31, 2021 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (1) Financial Assets Other investments $ 516,221 Embedded value N/A N/A N/A 169,625 Discounted cash flow Discount rate 14.0% - 52.8% 26.4% 260,338 Adjusted transaction value N/A N/A N/A Due from related parties 47,835 Discounted cash flow Discount rate 16.0% 16.0% Investments of consolidated VIEs: Equity securities 4,144,661 Discounted cash flow Discount rate 3.0% - 19.0% 10.4% Dividend discount model Discount rate 13.7% 13.7% Market comparable companies NTAV multiple 1.25x 1.25x Adjusted transaction value Purchase multiple 1.25x 1.25x Adjusted transaction value N/A N/A N/A Bank loans 4,569,873 Discounted cash flow Discount rate 1.8% - 15.6% 4.3% Adjusted transaction value N/A N/A N/A Profit participating notes 2,849,150 Discounted cash flow Discount rate 8.7% - 12.5% 12.4% Adjusted transaction value N/A N/A N/A Real estate 511,648 Discounted cash flow Capitalization rate 4.0% - 5.8% 5.3% Discounted cash flow Discount rate 5.0% - 12.5% 7.3% Discounted cash flow Terminal capitalization rate 8.3% 8.3% Direct capitalization Capitalization rate 5.5% - 8.5% 6.2% Direct capitalization Terminal capitalization rate 6.0% - 12.0% 6.9% Bonds 50,885 Discounted cash flow Discount rate 4.0% - 7.0% 6.1% Third party pricing N/A N/A N/A Other equity investments 1,061,586 Discounted cash flow Discount rate 11.8% -12.5% 12.1% Adjusted transaction value N/A N/A N/A Total Investments of Consolidated VIEs 13,187,803 Total Financial Assets $ 14,181,822 Financial Liabilities Liabilities of Consolidated VIEs: Secured loans $ 4,311,348 Discounted cash flow Discount rate 1.4% - 10.0% 2.8% Subordinated notes 3,164,491 Discounted cash flow Discount rate 4.5% - 11.9% 5.8% Participating equity 20,640 Discounted cash flow Discount rate 15.0% 15.0% Other liabilities 31,090 Discounted cash flow Discount rate 3.7% - 9.3% 6.3% Total Liabilities of Consolidated VIEs 7,527,569 Contingent Consideration Obligation 125,901 Discounted cash flow Discount rate 18.5% 18.5% Total Financial Liabilities $ 7,653,470 N/A Not applicable EBITDA Earnings before interest, taxes, depreciation, and amortization NTAV Net tangible asset value (1) Unobservable inputs were weighted based on the fair value of the investments included in the range. Fair Value Measurement of Investment in Athene Holding At December 31, 2021, the fair value of Apollo’s Level I investment in Athene Holding was estimated using the closing market price of Athene Holding shares of $83.33. Following the Mergers, AAM no longer holds an interest in AHL as further described in note 14. Discounted Cash Flow Model 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 and the contingent consideration obligations; conversely decreases in the discount rate can significantly increase the fair value of an investment and the contingent consideration obligations. Consolidated VIEs’ Investments The significant unobservable inputs used in the fair value measurement of the equity securities include the discount rate applied, purchase multiple and net tangible asset value in the valuation models. These unobservable inputs in isolation can cause significant increases or decreases in fair value. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks. The significant unobservable inputs used in the fair value measurement of bank loans, bonds, profit participating notes, warrants and other equity investments are discount rates. Significant increases (decreases) in discount rates would result in significantly lower (higher) fair value measurements. The significant unobservable inputs used in the fair value measurement of real estate are discount rates and capitalization rates. Significant increases (decreases) in any discount rates or capitalization rates in isolation would result in significantly lower (higher) fair value measurements. Certain investments of VIEs are valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determine an independent fair value. Consolidated VIEs’ Liabilities The debt obligations of certain consolidated VIEs, that are CLOs, were measured on the basis of the fair value of the financial assets of those CLOs as the financial assets were determined to be more observable and, as a result, categorized as Level II in the fair value hierarchy. The significant unobservable inputs used in the fair value measurement of the Company’s liabilities of consolidated VIEs are discount rates. Significant increases (decreases) in discount rates would result in a significantly lower (higher) fair value measurement. Certain liabilities of VIEs are valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determine an independent fair value. 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. The discount rate was based on the hypothetical cost of equity in connection with the acquisition of Stone Tower. See note 15 for further discussion of the contingent consideration obligations. Valuation of Underlying Investments As discussed previously, the underlying entities that the Company manages and invests in are primarily investment companies which account for their investments at estimated fair value. 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 external 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 external 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. Yield Investments Yield investments are generally valued based on third party vendor prices and/or quoted market prices and valuation models. Valuations using quoted market prices are 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 determining 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, if available, and (iii) validates the valuation levels with Apollo’s pricing team and traders. Debt 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 income approach, as described below. The valuation approaches used consider, as applicable, market risks, credit risks, counterparty risks and foreign currency risks. Equity and Hybrid Investments The majority of illiquid equity and hybrid investments are valued using the market approach and/or the income approach, as described below. Market Approach The market approach is driven 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 any of the following factors: (1) the subject company’s historical and projected financial data; (2) valuations given to comparable companies; (3) the size and scope of the subject company’s operations; (4) the subject company’s individual strengths and weaknesses; (5) expectations relating to the market’s receptivity to an offering of the subject company’s securities; (6) applicable restrictions on transfer; (7) industry and market information; (8) general economic and market conditions; and (9) other factors deemed relevant. Market approach valuation models typically employ a multiple that is based on one or more of the factors described above. Enterprise value as a multiple of EBITDA is common and relevant for most companies and industries, however, other industry specific multiples are employed where available and appropriate. Sources for gaining additional knowledge related to comparable companies include public filings, annual reports, analyst research reports and press releases. Once a comparable company set is determined, Apollo reviews certain aspects of the subject company’s performance and determines how its performance compares to the group and to certain individuals in the group. Apollo compares certain measurements such as EBITDA margins, revenue growth over certain time periods, leverage ratios and growth opportunities. In addition, Apollo compares the entry multiple and its relation to the comparable set at the time of acquisition to understand its relation to the comparable set on each measurement date. Income Approach 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 for the income approach is a discounted cash flow method. Inherent in the discounted cash flow method are significant assumptions related to the subject company’s expected results, the determination of a terminal value and a calculated discount rate, which is normally based on the subject company’s weighted average cost of capital, or “WACC.” The WACC represents the required rate of return on total capitalization, which is comprised of a required rate of return on equity, plus the current tax-effected rate of return on debt, weighted by the relative percentages of equity and debt that are typical in the industry. The most critical step in determining the appropriate WACC for each subject company is to select companies that are comparable in nature to the subject company and the credit quality of the subject company. Sources for gaining additional knowledge about the comparable companies include public filings, annual reports, analyst research reports and press releases. The general formula then used for calculating the WACC considers the after-tax rate of return on debt capital and the rate of return on common equity capital, which further considers the risk-free rate of return, market beta, market risk premium and small stock premium, if applicable. The variables used in the WACC formula are inferred from the comparable market data obtained. The Company evaluates the comparable companies selected and concludes on WACC inputs based on the most comparable company or analyzes the range of data for the investment. The value of liquid investments, 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. Certain of the funds Apollo manages 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 the 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. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consisted of the following: As of As of Fixed assets $ 403,095 $ 256,252 Less: Accumulated depreciation and amortization (148,699) (130,072) Fixed assets, net 254,396 126,180 Deferred equity-based compensation (1) 240,759 282,900 Intangible assets, net (2) 185,146 14,846 Commitment asset (3) 154,563 — Prepaid expenses 60,486 57,765 Tax receivables 55,040 30,334 Other 134,031 73,876 Total Other Assets $ 1,084,421 $ 585,901 (1) Deferred equity-based compensation relates to the value of equity-based awards that have been or are expected to be granted in connection with the settlement of certain profit sharing arrangements. A corresponding amount for awards expected to be granted of $181.1 million and $210.6 million, as of September 30, 2022 and December 31, 2021, respectively, is included in other liabilities on the condensed consolidated statements of financial condition. (2) Includes intangible assets from the acquisition of Griffin Capital's U.S. asset management business. (3) Represents a commitment from an institutional investor as part of a strategic transaction. Depreciation expense was $8.3 million and $4.8 million for the three months ended September 30, 2022 and 2021, respectively, and $22.2 million and $13.1 million for the nine months ended September 30, 2022 and 2021, respectively, and is presented as a component of general, administrative and other expense in the condensed consolidated statements of operations. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES Apollo has operating leases for office space, data centers, and certain equipment under various lease agreements. The table below presents operating lease expenses recorded in general, administrative and other in the condensed consolidated statements of operations. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 18,002 $ 10,916 $ 51,283 $ 33,930 The following table presents supplemental cash flow information related to operating leases: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Operating cash flows for operating leases $ 14,285 $ 10,971 $ 32,851 $ 23,465 As of September 30, 2022, the Company’s total lease payments by maturity are presented in the following table: Operating Lease Payments Remaining 2022 $ 15,523 2023 67,832 2024 67,981 2025 67,244 2026 62,739 Thereafter 511,882 Total lease payments $ 793,201 Less imputed interest (124,120) Present value of lease payments $ 669,081 The Company has undiscounted future operating lease payments of $127.3 million related to leases that have not commenced that were entered into as of September 30, 2022. Such lease payments are not yet included in the table above or the Company’s condensed consolidated statements of financial condition as lease assets and lease liabilities. These operating leases are anticipated to commence in 2023 or later with lease terms of approximately 12 to 14 years. Supplemental information related to leases is as follows: As of As of Weighted average remaining lease term (in years) 12.5 13.3 Weighted average discount rate 2.7 % 2.9 % |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company’s income tax provision totaled $22.1 million and $101.4 million for the three months ended September 30, 2022, and 2021, respectively, and $163.9 million and $498.7 million for the nine months ended September 30, 2022 and 2021, respectively. The Company’s effective tax rate was 20.5% and 13.8% for the three months ended September 30, 2022 and 2021, respectively, and 9.6% and 12.0% for the nine months ended September 30, 2022 and 2021, respectively. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “IRA”). The IRA contains a number of tax-related provisions including a 15% minimum corporate income tax on certain large corporations as well as an excise tax on stock repurchases. It is unclear how the IRA will be implemented by the U.S. Department of the Treasury through regulation. The Company is evaluating the impact of the IRA on its tax liability, which tax liability could also be affected by how the provisions of the IRA are implemented through such regulation. The Company will continue to evaluate the IRA’s impact as further information becomes available. 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 resolution of any related appeals or litigation processes, based on the technical merits of the position. The Company recorded $15.7 million of unrecognized tax benefits as of September 30, 2022, for uncertain tax positions. Approximately all of the unrecognized tax benefits, if recognized, would affect the effective tax rate. The Company does not anticipate a material change to its unrecognized tax benefits over the next twelve months. The primary jurisdictions in which the Company operates and incurs income taxes are the United States and the United Kingdom. There are no unremitted earnings with respect to the United Kingdom and other foreign jurisdictions. In the normal course of business, the Company is subject to examination by federal, state, local and foreign tax authorities. As of September 30, 2022, the Company’s U.S. federal, state, local and foreign income tax returns for the years 2018 through 2020 are open under the general statute of limitations provisions and therefore subject to examination. Currently, the Internal Revenue Service is examining the tax returns of the Company and certain subsidiaries for the 2019 and 2020 tax years. The State and City of New York are examining certain subsidiaries’ tax returns for tax years 2011 to 2020. The United Kingdom authorities are currently examining certain subsidiaries’ tax returns for tax year 2017. There are other examinations ongoing in other foreign jurisdictions, which the Company operates. No provisions with respect to these examinations have been recorded, other than the unrecognized tax benefits discussed above. The Company has historically recorded deferred tax assets resulting from the step-up in the tax basis of assets, including intangibles resulting from exchanges of AOG Units for Class A shares by the Former Managing Partners and Contributing Partners. A related liability has historically been 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 the Company, the Former Managing Partners, the Contributing Partners, and other parties thereto (as amended, the “tax receivable agreement”) (see note 14). The benefit the Company has historically obtained from the difference in the tax asset recognized and the related liability resulted in an increase to additional paid in capital. The amortization period for the portion of the increase in tax basis related to intangibles is 15 years. The realization of the remaining portion of the increase in tax basis relates to the disposition of the underlying assets to which the step-up is attributed. The associated deferred tax assets reverse at the time of the corresponding asset disposition. After the Mergers, the Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the tax receivable agreement during the nine months ended September 30, 2022. 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 for the nine months ended September 30, 2021. Exchange of AOG Units Increase in Deferred Tax Asset Increase in Tax Receivable Agreement Liability Increase to Additional Paid In Capital For the Nine Months Ended September 30, 2021 $ 292,844 $ 243,157 $ 49,687 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following: As of September 30, 2022 As of December 31, 2021 Maturity Date Outstanding Fair Value Outstanding Fair Value 4.00% 2024 Senior Notes (1)(2) May 30, 2024 $ 498,959 $ 486,201 (4) $ 498,469 $ 530,052 (4) 4.40% 2026 Senior Notes (1)(2) May 27, 2026 498,114 474,335 (4) 497,730 553,055 (4) 4.87% 2029 Senior Notes (1)(2) February 15, 2029 674,809 629,825 (4) 674,786 777,703 (4) 2.65% 2030 Senior Notes (1)(2) June 5, 2030 495,375 395,079 (4) 494,928 506,094 (4) 4.77% 2039 Senior Secured Guaranteed Notes (1)(2) — — (6) 317,985 369,041 (5) 5.00% 2048 Senior Notes (1)(2) March 15, 2048 296,899 263,572 (4) 296,757 397,191 (4) 4.95% 2050 Subordinated Notes (1)(2) January 14, 2050 296,714 256,913 (4) 296,675 308,687 (4) 1.70% Secured Borrowing II (1) April 15, 2032 16,663 15,708 (3) 19,334 19,239 (3) 1.30% 2016 AMI Term Facility I (1) January 15, 2025 16,536 16,536 (3) 19,186 19,186 (3) 1.40% 2016 AMI Term Facility II (1) July 23, 2023 15,986 15,986 (3) 18,546 18,546 (3) Total Debt $ 2,810,055 $ 2,554,155 $ 3,134,396 $ 3,498,794 (1) Interest rate is calculated as weighted average annualized. (2) Includes amortization of note discount, as applicable, totaling $16.3 million and $25.1 million as of September 30, 2022 and December 31, 2021, respectively. Outstanding balance is presented net of unamortized debt issuance costs. (3) Fair value is based on obtained broker quotes. These notes are 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 external 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. These notes are 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 external pricing services. (5) Fair value is based on a discounted cash flow method. These notes are classified as a Level III liability within the fair value hierarchy. (6) There is no outstanding balance as of September 30, 2022. These notes were transferred to a VIE consolidated by Athene during the three months ended March 31, 2022. As of September 30, 2022, the indentures governing the 2024 Senior Notes, the 2026 Senior Notes, the 2029 Senior Notes, the 2030 Senior Notes, the 2048 Senior Notes and the 2050 Subordinated Notes (the “Indentures”) include covenants that restrict the ability of AMH and, as applicable, the guarantors of the notes under the Indentures 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. Apollo’s debt obligations contain various customary loan covenants. As of September 30, 2022, 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. Credit Facilities The following table represents the Company’s credit facilities as of September 30, 2022: Instrument/Facility Borrowing Date Maturity Date Administrative Agent Key terms AMH credit facility 1 November 23, 2020 November 23, 2025 Citibank, N.A. The commitment fee on the $750 million undrawn AMH credit facility as of September 30, 2022 was 0.09%. 1 Refer below for details regarding the AMH credit facility refinancing, which occurred during the fourth quarter of 2022. Borrowings under the AMH credit facility may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions. As of September 30, 2022, AMH, the borrower under the facility, could incur incremental facilities in an aggregate amount not to exceed $250 million plus additional amounts so long as AMH was in compliance with a net leverage ratio not to exceed 4.00 to 1.00. As of September 30, 2022, there were no amounts outstanding under the AMH credit facility and the Company was in compliance with all covenants under the facility. On October 12, 2022 (“Closing Date”), AMH, as borrower, entered into a new $1.0 billion revolving credit facility with Citibank, N.A., as administrative agent, which matures on October 12, 2027 (“2022 AMH credit facility”). In addition, AMH may incur incremental facilities in respect of the 2022 AMH credit facility in an aggregate amount not to exceed $250 million plus additional amounts so long as AMH is in compliance with a net leverage ratio not to exceed 4.00 to 1.00. The 2022 AMH credit facility refinanced the existing AMH credit facility dated as of November 23, 2020. As of the Closing Date, the existing AMH credit facility was undrawn and the facility and all related loan documents were terminated. Borrowings under the 2022 AMH credit facility may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions. The 2022 AMH credit facility contains various standard affirmative and negative covenants with which AMH and its subsidiaries must comply, including maintaining minimum fee-generating assets under management of not less than $150 billion and a maximum total net leverage ratio not to exceed 4.00 to 1.00. The interest rate on the 2022 AMH credit facility as of the Closing Date was based on adjusted Term SOFR and the applicable margin was 0.875%. The undrawn revolving commitment fee was 0.08% as of the Closing Date. As of November 8, 2022, there were no amounts outstanding under the 2022 AMH credit facility. The following table presents the interest expense incurred related to the Company’s debt: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Total Interest Expense (1) $ 32,219 $ 34,820 $ 96,644 $ 104,433 (1) Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Under AGM’s Equity Plan, AGM is permitted to grant equity awards representing ownership interests in AGM common stock to employees of AAM. Equity-based awards granted to employees and non-employees as compensation are measured based on the grant date fair value of the award, which considers the public share price of AGM’s common stock subject to certain discounts, as applicable. AGM gr ants both service and performance-based awards. The estimated total grant date fair value for service-based awards is charged to compensation expense on a straight-line basis over the vesting period, which is generally one or is delivered in the form of R SUs, which are granted under AGM’s Equity Plan. Performance-based awards vest subject to continued employment and AGM’s achievement of specified performance goals. In accordance with U.S. GAAP, equity-based compensation expense for performance grants are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. Equity-based awards that do not require future service (i.e., vested awards) are expensed immediately. For the three months ended September 30, 2022 and September 30, 2021, AAM recorded equity-based compensation expense of $104.2 million and $56.2 million, respectively. For the nine months ended September 30, 2022 and September 30, 2021, AAM recorded equity-based compensation expense of $372.9 million and $165.7 million, respectively. As of September 30, 2022, there was $706.7 million of estimated unrecognized compensation expense related to unvested RSU awards. This cost is expected to be recognized over a weighted-average period of 2.9 years. Service-Based Awards During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded service-based grants of 3.6 million RSUs and 2.3 million RSUs with a grant date fair value of $219.8 million and $117.3 million, respectively. During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on service-based awards of $49.3 million and $24.3 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on service-based awards of $155.5 million and $66.5 million, respectively. Performance-Based Awards During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded performance-based grants of 2.9 million and 2.1 million RSUs to certain employees with a grant date fair value of $167.4 million and $97.6 million, respectively, which primarily vest subject to continued employment and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation. During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on performance-based awards of $39.1 million and $21.1 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on performance-based awards of $163.1 million and $65.0 million, respectively. In December 2021, the Company awarded one-time grants to the Co-Presidents of 6 million RSUs which vest on a cliff basis subject to continued employment over five years, with 2 million of those RSUs also subject to AGM’s achievement of certain fee related earnings and spread related earnings per share metrics. During the three and nine months ended September 30, 2022, the Company recorded equity-based compensation expense of $13.9 million and $41.7 million, respectively, for service-based awards and $5.9 million and $17.6 million, respectively, for performance-based awards, each related to these one-time grants. Restricted Stock Awards During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded 0.5 million and 0.6 million restricted stock awards from profit sharing arrangements with a grant date fair value of $33.5 million and $36.4 million, respectively. During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on restricted stock from profit sharing arrangements of $13.2 million and $8.3 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on restricted stock from profit sharing arrangements of $46.1 million and $19.2 million, respectively. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock The Company has 11,000,000 Series A Preferred shares and 12,000,000 Series B Preferred shares issued and outstanding as of September 30, 2022. Dividends on the Preferred shares are discretionary and non-cumulative. During 2022, quarterly cash dividends were $0.398438 per Series A Preferred share and Series B Preferred share. Subject to certain exceptions, unless dividends have been declared and paid or declared and set apart for payment on the Preferred shares for a quarterly dividend period, during the remainder of that dividend period Apollo may not declare or pay or set apart payment for dividends on any shares of common stock or any other equity securities that the Company may issue in the future ranking, as to the payment of dividends, junior to the Preferred shares (“Junior Stock”) and Apollo may not repurchase any Junior Stock. The Series A Preferred shares and the Series B Preferred shares may be redeemed at Apollo’s option, in whole or in part, at any time on or after March 15, 2022 and March 15, 2023, respectively, at a price of $25.00 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. Holders of the Preferred shares 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, 2023 for the Series B Preferred shares, the Series B 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 share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. If a certain rating agency event occurs prior to March 15, 2023, the Series B 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 rating agency event, at a price of $25.50 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. If (i) a change of control event occurs 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 dividend 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 common stock and have no voting rights, except in limited circumstances as provided in the Company’s certificate of incorporation. 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, 2022 2021 2022 2021 Net income attributable to non-controlling interests in consolidated entities: Interest in management companies and a co-investment vehicle (1) $ 267 $ 1,866 $ 3,157 $ 4,464 Other consolidated entities 17,528 110,703 273,827 294,959 Net income attributable to non-controlling interests in consolidated entities $ 17,795 $ 112,569 $ 276,984 $ 299,423 Net income attributable to non-controlling interests in the Apollo Operating Group: Net income $ 85,352 $ 631,417 $ 1,551,194 $ 3,655,380 Net income attributable to non-controlling interests in consolidated entities (17,795) (112,569) (276,984) (299,423) Net income after non-controlling interests in consolidated entities 67,557 518,848 1,274,210 3,355,957 Adjustments: Income tax provision (2) 22,069 101,434 163,870 498,731 NYC UBT and foreign tax benefit (3) (19,083) (11,213) (36,414) (24,694) Net income in non-Apollo Operating Group entities 9,414 1,099 30,845 1,103 Series A Preferred share dividends (4,383) (4,382) (13,149) (13,148) Series B Preferred share dividends (4,781) (4,782) (14,344) (14,344) Total adjustments 3,236 82,156 130,808 447,648 Net income after adjustments 70,793 601,004 1,405,018 3,803,605 Weighted average ownership percentage of Apollo Operating Group 42.6 % 44.1 % 42.6 % 45.8 % Net income attributable to non-controlling interests in Apollo Operating Group $ 44,127 $ 260,526 $ 585,691 $ 1,761,018 Net income attributable to non-controlling interests $ 61,922 $ 373,095 $ 862,675 $ 2,060,441 Other comprehensive loss attributable to non-controlling interests (32,280) (10,082) (66,133) (20,275) Comprehensive income attributable to non-controlling interests $ 29,642 $ 363,013 $ 796,542 $ 2,040,166 (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 AAM and its subsidiaries 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. Redeemable Non-Controlling Interests As discussed in note 2, redeemable non-controlling interests primarily represent the shares issued by the Company’s consolidated SPACs. The table below presents the activities associated with the redeemable non-controlling interests. For the Nine Months Ended September 30, 2022 2021 Balance at beginning of period $ 1,770,034 $ 782,702 Redemption of non-controlling interests (776,272) — Deconsolidation of SPAC (39,588) — Net issuances of redeemable non-controlling interests 10,544 907,590 Accretion of redeemable non-controlling interests 58,989 59,762 Balance at end of period $ 1,023,707 $ 1,750,054 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES | 9 Months Ended |
Sep. 30, 2022 | |
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. Other related party transactions include loans to employees, periodic sales of ownership interests in Apollo funds to employees, and receivables from and payables to AGM. Due from related parties and due to related parties are comprised of the following: As of As of Due from Related Parties: Due from funds (1) $ 484,498 $ 315,875 Due from employees and former employees 94,139 106,755 Due from portfolio companies 61,493 66,960 Due from parent 37,483 — Incentive fees receivable 10,074 4,236 Total Due from Related Parties $ 687,687 $ 493,826 Due to Related Parties: Due to Former Managing Partners and Contributing Partners (2) $ 906,157 $ 1,118,272 Due to parent 657,941 — Due to funds 116,915 104,130 Total Due to Related Parties $ 1,681,013 $ 1,222,402 (1) Includes $41.9 million and $47.8 million as of September 30, 2022 and December 31, 2021, respectively, related to a receivable from a fund in connection with the Company’s sale of a platform investment to such fund. The amount is payable to the Company over five years and is held at fair value. (2) Includes $394.4 million and $569.6 million as of September 30, 2022 and December 31, 2021, respectively, related to the purchase of limited partnership interests, payable in equal installments through December 31, 2024. Tax Receivable Agreement On January 1, 2022, Apollo acquired Athene and merged operations into a newly established HoldCo, later renamed Apollo Global Management, Inc. Pursuant to the Merger Agreement executed by AGM, the Former Managing Partners and Contributing Partners, all AOG Units beneficially owned by each holder of AOG Units were converted to shares of AGM common stock following the consummation of the Mergers. Prior to the Mergers, each of the Former Managing Partners and Contributing Partners had the right to exchange vested AOG Units for Class A shares, subject to certain restrictions. All Apollo Operating Group entities have made, or will make, an election under Section 754 of the U.S. Internal Revenue Code, which will result in an adjustment to the tax basis of the assets owned by the Apollo Operating Group entities at the time an exchange was made. The election results in an increase to the tax basis of underlying assets which will reduce the amount of gain and associated tax that the Company and its subsidiaries will otherwise be required to pay in the future. The tax receivable agreement (“TRA”) provides for payment to the Former 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 Apollo realizes as a result of the increases in tax basis of assets that resulted from transactions and other exchanges of AOG Units for Class A shares that occurred in prior years. AGM and its subsidiaries retain the benefit from the remaining 15% of actual cash tax savings. In May 2022, Apollo waived its early termination right, which had provided it the right to early terminate the tax receivable agreement at any time by payment of an early termination payment to all holders. If the Company does not make the required annual payment on a timely basis as outlined in the TRA, interest is accrued on the balance until the payment date. Following the closing of the Mergers, the Former Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the TRA during the nine months ended September 30, 2022. As a result of the exchanges of AOG Units for Class A shares during the nine months ended September 30, 2021, a $243.2 million liability was recorded to estimate the amount of the future payments to be made by the Company and its subsidiaries to the Former Managing Partners and Contributing Partners pursuant to the TRA. AOG Unit Payment On December 31, 2021, holders of AOG Units (other than Athene and the Company) sold and transferred a portion of such AOG Units to APO Corp., a wholly-owned consolidated subsidiary of the Company, in exchange for an amount equal to $3.66 multiplied by the total number of AOG Units held by such holders immediately prior to such transaction (such payment, the “AOG Unit Payment”). The remainder of the AOG Units held by such holders were exchanged for shares of AGM common stock concurrently with the consummation of the Mergers on January 1, 2022. As of September 30, 2022, the outstanding payable amount to Former Managing Partners and Contributing Partners was $394.4 million, which is payable in equal installments through December 31, 2024. Due from Employees and Former Employees As of September 30, 2022 and December 31, 2021, due from employees and former employees includes various amounts due to the Company including employee loans and return of profit sharing distributions. As of September 30, 2022 and December 31, 2021, the balance included interest-bearing employee loans receivable of $15.8 million and $17.5 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 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, 2022 and December 31, 2021 of $65.8 million and $64.5 million, respectively. Indemnity Performance revenues from certain funds can be distributed to the Company on a current basis, but are subject to repayment by the subsidiaries of the Apollo Operating Group that act as general partners of the funds in the event that certain specified return thresholds are not ultimately achieved. The Former Managing Partners, Contributing Partners and certain other investment professionals have personally guaranteed, subject to certain limitations, the obligations of these subsidiaries in respect of this general partner obligation. Such guarantees are several and not joint and are limited to a particular Former Managing Partners’ or Contributing Partner’s distributions. The Company has agreed to indemnify each of the Company’s Former 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 Former Managing Partners and Contributing Partners contributed or sold to the Apollo Operating Group. The Company recorded an indemnification liability in respect of this indemnification obligation of $13.3 million and $13.2 million as of September 30, 2022 and December 31, 2021, respectively. Due to Funds Based upon an assumed liquidation of certain of the funds the Company manages, the Company has recorded a general partner obligation to return previously distributed performance allocations, which represents amounts due to these funds. The general partner obligation is recognized based upon an assumed 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 governing document of the fund. The Company recorded general partner obligations to return previously distributed performance allocations related to certain funds of $88.6 million and $81.2 million as of September 30, 2022 and December 31, 2021, respectively. Athene Fee Arrangement 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. On March 31, 2022, Athene and Apollo agreed to revise the existing fee arrangements (the “amended fee agreement”) between Athene and Apollo. The Company began recording fees pursuant to the amended fee agreement on January 1, 2022. The amended fee agreement provides for sub-allocation fees which vary based on portfolio allocation differentiation, as described below. The amended fee agreement provides for a monthly fee to be payable by Athene to the Company in arrears, with retroactive effect to the month beginning on January 1, 2022, in an amount equal to the following, to the extent not otherwise payable to the Company pursuant to any one or more investment management or sub-advisory agreements or arrangements: (i) The Company, through its consolidated subsidiary Apollo Insurance Solutions Group LP, or ISG, earns a base management fee of 0.225% per year on the aggregate book value of substantially all of the assets in substantially all of the accounts of or relating to Athene (collectively, the “Athene Accounts”) up to $103.4 billion (the “Backbook Value”) and 0.150% per year on all assets in excess of $103.4 billion (the “Incremental Value”), respectively; plus (ii) with respect to each asset in an Athene Account, subject to certain exceptions, that is managed by the Company and that belongs to a specified asset class tier (“core,” “core plus,” “yield,” and “high alpha”), a sub-allocation fee as follows: As of Sub-Allocation Fees: Core Assets (1) 0.065 % Core Plus Assets (2) 0.130 % Yield Assets (3) 0.375 % High Alpha Assets (4) 0.700 % Other Assets (5) — % (1) Core assets include public investment grade corporate bonds, municipal securities, agency residential or commercial mortgage backed securities and obligations of any governmental agency or government sponsored entity that is not expressly backed by the U.S. government. (2) Core plus assets include private investment grade corporate bonds, fixed rate first lien commercial mortgage loans and obligations issued or assumed by a financial institution (such an institution, a “financial issuer”) and determined by Apollo to be “Tier 2 Capital” under the Basel III recommendations developed by the Basel Committee on Banking Supervision (or any successor to such recommendations). (3) Yield assets include non-agency residential mortgage-backed securities, investment grade collateralized loan obligations, certain asset-backed securities, commercial mortgage-backed securities, emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial issuer, as rated preferred equity, residential mortgage loans, bank loans, investment grade infrastructure debt and certain floating rate commercial mortgage loans. (4) High alpha assets include subordinated commercial mortgage loans, below investment grade collateralized loan obligations, unrated preferred equity, debt obligations originated by MidCap, below investment grade infrastructure debt, certain loans originated directly by Apollo and agency mortgage derivatives. (5) Other Assets include cash, treasuries, equities and alternatives. With respect to equities and alternatives, Apollo earns performance revenues of 0% to 20%. Merger Agreement On March 8, 2021, the Company entered into the Merger Agreement with AHL, HoldCo, AHL Merger Sub, and AAM Merger Sub. As of December 31, 2021, the Company held a 28.4% ownership interest in AHL’s Class A common shares. On January 1, 2022, Apollo and Athene completed the previously announced Mergers. Following the closing of the Mergers, all of the common stock of AAM and AHL is owned by AGM and both AAM and AHL became consolidated subsidiaries of AGM. Subsequent to the closing of the Mergers, the Company distributed its interest in AHL’s Class A common shares to AGM. Subsequent to the closing of the Mergers, the Company transferred the 2039 Senior Secured Guaranteed Notes to a VIE consolidated by Athene. Similarly, certain of Apollo’s general partner fund co-investments were transferred to Athene, which were subsequently transferred to AAA. Athora The Company, through ISGI, provides investment advisory services to certain portfolio companies of funds managed by Apollo and Athora, a strategic platform that acquires or reinsures blocks of insurance business in the European life insurance market (collectively, the “Athora Accounts”). The Company had equity commitments outstanding of up to $401.9 million as of September 30, 2022, subject to certain conditions. Athora Sub-Advised The Company, through ISGI, provides sub-advisory services with respect to a portion of the assets in certain portfolio companies of Apollo funds and the Athora Accounts. The Company broadly refers to “Athora Sub-Advised” assets as those assets in the Athora Accounts which the Company explicitly sub-advises as well as those assets in the Athora Accounts which are invested directly in funds and investment vehicles Apollo manages. The Company earns a base management fee on the aggregate market value of substantially all of the investment accounts of or relating to Athora and also a sub-advisory fee on the Athora Sub-Advised assets, which varies depending on the specific asset class. On December 15, 2021, the Company executed an amended and restated fee agreement with Athora. The new fee agreement revised the base fee paid to the Company for managing certain assets on behalf of Athora and removed Athora’s previous reimbursement of certain costs incurred by Apollo. These changes had retroactive effect to January 1, 2021. The following table presents the revenues earned in aggregate from Athene and Athora: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Revenues earned in aggregate from Athene and Athora, net (1) $ 341,888 $ 284,254 $ 959,261 $ 828,045 (1) Consisting of management fees, sub-advisory fees, and performance revenues from Athene and Athora, as applicable. Regulated Entities and Affiliated Service Providers 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, 2022. From time to time, AGS, as well as other Apollo affiliates provide services to related parties of Apollo, including Apollo funds and their portfolio companies, whereby the Company or its affiliates earn fees for providing such services. Griffin Capital Securities, LLC (“GCS”) 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. GCS was in compliance with these requirements as of September 30, 2022. Due to parent Following the merger with Athene, the Company has a revolving loan agreement with AGM, its parent company, to manage cash balances and to fund liquidity for general corporate use. The balance outstanding on this loan to AGM was $657.9 million as of September 30, 2022. Investment in SPACs In October 2020, APSG I, a SPAC, completed an initial public offering, ultimately raising total gross proceeds of $816.8 million, including the underwriters’ subsequent partial exercise of their over-allotment option. In a private placement concurrent with the initial public offering, APSG I sold warrants to APSG Sponsor, L.P., a subsidiary of Apollo, for total gross proceeds of $18.3 million. APSG Sponsor, L.P. previously held Class B ordinary shares of APSG I. In May 2022, APSG I completed a business combination with American Express Global Business Travel. As a result of the business combination, Apollo no longer consolidates APSG I as a VIE. The deconsolidation resulted in an unrealized gain of $162.0 million, which includes $81.5 million of unrealized gains related to previously held Class B ordinary shares, which converted to Class A shares of the newly merged entity (“GBTG”), for the nine months ended September 30, 2022 and is presented in Net gains from investment activities within Other income in the condensed consolidated statements of operations. Apollo continues to hold a non-controlling interest in GBTG at fair value, presented within Investments in the condensed consolidated statements of financial condition. Apollo has significant influence in the retained investment, and has elected the fair value option for subsequent measurement. On February 12, 2021, APSG II, a SPAC, completed an initial public offering, raising total gross proceeds of $690.0 million, including the underwriters’ exercise in full of their over-allotment option. In a private placement concurrent with the initial public offering, APSG II sold warrants to APSG Sponsor II, L.P., a subsidiary of Apollo, for total gross proceeds of $15.6 million. APSG Sponsor II, L.P. also holds Class B ordinary shares of APSG II. Apollo currently consolidates APSG II as a VIE, and thus all private placement warrants and Class B ordinary shares are eliminated in consolidation. On July 13, 2021, Acropolis, a SPAC, completed an initial public offering, ultimately raising total gross proceeds of $345.0 million, including the underwriters’ subsequent exercise in full of their over-allotment option. In a private placement concurrent with the initial public offering, Acropolis sold warrants to Acropolis Infrastructure Acquisition Sponsor, L.P., a subsidiary of Apollo, for total gross proceeds of $8.8 million. Acropolis Infrastructure Acquisition Sponsor, L.P. also holds Class B common stock of Acropolis. Apollo currently consolidates Acropolis as a VIE, and thus all private placement warrants and Class B common stock are eliminated in consolidation. As described in note 2, the Company consolidates entities that are VIEs for which the Company has been designated as the primary beneficiary. Through its interests in the respective sponsors, the Company has the power to direct the activities that most significantly impact the economic performance of these SPACs. In addition, the Company’s combined interests in these VIEs are significant. Assets and liabilities of the consolidated SPACs are shown within the respective line items of the condensed consolidated financial statements, as outlined below. The tables below present the financial information of these SPACs in aggregate: As of As of Assets: Cash and cash equivalents $ 579 $ 1,796 Restricted cash and cash equivalents 694,582 690,205 U.S. Treasury securities, at fair value 347,170 1,162,299 Other assets 926 2,627 Total Assets $ 1,043,257 $ 1,856,927 Liabilities, Redeemable non-controlling interests and Stockholders’ Equity Liabilities: Accounts payable and accrued expenses $ 3,250 $ 2,361 Due to related parties 8,300 20,146 Other liabilities 41,519 143,778 Total Liabilities 53,069 166,285 Redeemable non-controlling interests: Redeemable non-controlling interests 1,008,679 1,762,282 Stockholders’ Equity: Additional paid in capital (63,909) (98,369) Retained earnings 45,418 26,729 Total Stockholders’ Equity (18,491) (71,640) Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity $ 1,043,257 $ 1,856,927 For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Expenses: Interest expense $ 7 $ 3 $ 16 5 General, administrative and other 685 3,824 6,426 13,369 Total Expenses 692 3,827 6,442 13,374 Other Income: Net gains from investment activities 3,513 29,185 20,297 27,684 Interest income 4,949 131 6,710 392 Other income (loss), net (100) (146) (300) (370) Total Other Income 8,362 29,170 26,707 27,706 Income before income tax provision 7,670 25,343 20,265 14,332 Income tax provision (179) — (179) — Net Income Attributable to Apollo Asset Management, Inc. 7,491 25,343 20,086 14,332 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and December 31, 2021 of $0.5 billion and $1.0 billion, respectively. Litigation and Regulatory Matters 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. On August 3, 2017, a complaint was filed in the United States District Court for the Middle District of Florida against AAM, a senior partner of Apollo and a former principal of Apollo by Michael McEvoy on behalf of a purported class of employees of subsidiaries of CEVA Group, LLC (“CEVA Group”) who purchased shares in CEVA Investment Limited (“CIL”), the former parent company of CEVA Group. The complaint alleged that the defendants breached fiduciary duties to and defrauded the plaintiffs by inducing them to purchase shares in CIL and subsequently participating in a debt restructuring of CEVA Group in which shareholders of CIL did not receive a recovery. McEvoy subsequently revised his complaint to attempt to assert claims that do not belong to CIL. The amended complaint no longer named any individual defendants, but Apollo Management VI, L.P. and CEVA Group were added as defendants. The amended complaint sought damages of approximately €30 million and asserts, among other things, claims for violations of the Investment Advisers Act of 1940, breach of fiduciary duties, and breach of contract. On December 7, 2018, McEvoy filed his amended complaint in the District Court for the Middle District of Florida. On January 6, 2020, the Florida court granted in part Apollo’s motion to dismiss, dismissing McEvoy’s Investment Advisers Act claim with prejudice, and denying without prejudice Apollo’s motion with respect to the remaining claims, and directing the parties to conduct limited discovery, and submit new briefing, solely with respect to the statute of limitations. On July 30, 2020, Apollo and CEVA filed a joint motion for summary judgment on statute of limitations grounds. On June 29, 2021, the district court issued a decision denying the defendants’ joint motion for summary judgment on statute of limitations grounds, and set deadlines on July 23, 2021 for the plaintiff to file an amended complaint and August 20, 2021 for defendants to answer or move to dismiss the amended complaint. Plaintiff filed his second amended complaint on July 23, 2021 which added alleged grounds for tolling the statute of limitations. Also on July 23, 2021, the defendants filed a joint motion for reconsideration with respect to aspects of the district court’s June 29, 2021 decision. On March 10, 2022, the court granted defendants’ motion for reconsideration and granted Apollo’s motion for summary judgment. On April 7, 2022, Plaintiff filed a motion to alter or amend the court’s order of March 10. The defendants, including Apollo, opposed that motion on April 28, 2022. The court denied Plaintiff’s motion on May 26, 2022. Plaintiff has appealed the court’s decisions to the Eleventh Circuit. Apollo believes that Plaintiff’s appeal is without merit. No reasonable estimate of possible loss, if any, can be made at this time. On December 21, 2017, several entities referred to collectively as “Harbinger” commenced an action in New York Supreme Court captioned Harbinger Capital Partners II LP et al. v. Apollo Global Management LLC, et al. (No. 657515/2017). The complaint named as defendants AAM, and funds managed by Apollo that invested in SkyTerra Communications, Inc. (“SkyTerra”), among others. The complaint alleged that during the period of Harbinger’s various equity and debt investments in SkyTerra from 2004 to 2010, the defendants concealed from Harbinger material defects in SkyTerra technology. The complaint further alleged that Harbinger would not have made investments in SkyTerra totaling approximately $1.9 billion had it known of the defects, and that the public disclosure of these defects ultimately led to SkyTerra filing for bankruptcy in 2012 (after it had been renamed LightSquared). The complaint sought $1.9 billion in damages, as well as punitive damages, interest, costs, and fees. On June 12, 2019, Harbinger voluntarily discontinued the state action without prejudice. On June 8, 2020, Harbinger refiled its litigation in New York Supreme Court, captioned Harbinger Capital Partners II, LP et al. v. Apollo Global Management, LLC et al. (No. 652342/2020). The complaint adds eight new defendants and three new claims relating to Harbinger’s contention that the new defendants induced Harbinger to buy CCTV One Four Holdings, LLC (“CCTV”) to support SkyTerra’s network even though they allegedly knew that the network had material defects. On November 23, 2020, Defendants refiled a bankruptcy motion, and on November 24, 2020, filed in the state court a motion to stay the state court proceedings pending a ruling by the bankruptcy court on the bankruptcy motion. On February 1, 2021, the bankruptcy court denied the bankruptcy motion. On March 31, 2021, Defendants filed their motions to dismiss the New York Supreme Court action. Hearings were held on the motions to dismiss on February 15, 2022 and February 18, 2022, and the motions remain pending. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time. On November 1, 2019, plaintiff Benjamin Fongers filed a putative class action in Illinois Circuit Court, Cook County, against CareerBuilder, LLC (“CareerBuilder”) and AAM. Plaintiff alleges that in March 2019, CareerBuilder changed its compensation plan so that sales representatives such as Fongers would (i) receive reduced commissions; and (ii) only be able to receive commissions for accounts they originated that were not reassigned to anyone else, a departure from the earlier plan. Plaintiff also claims that the plan applied retroactively to deprive sales representatives of commissions to which they were earlier entitled. Plaintiff alleges that AAM exercises complete control over CareerBuilder and thus, CareerBuilder acts as AAM’s agent. Based on these allegations, Plaintiff alleges claims against both defendants for breach of written contract, breach of implied contract, unjust enrichment, violation of the Illinois Sales Representative Act, and violation of the Illinois Wage and Payment Collection Act. The defendants removed the action to the Northern District of Illinois on December 5, 2019, and Plaintiff moved to remand on January 6, 2020. On October 21, 2020, the district court granted the motion to remand. On January 11, 2021, the district court ordered the clerk of court to take the necessary steps to transfer the case back to Illinois Circuit Court, Cook County. On March 8, 2021, Plaintiff filed a motion under 28 U.S.C. § 1447(c) to recover attorneys’ fees of approximately $35,000 for the remand briefing. Defendants filed their opposition on March 31, 2021, and Plaintiff replied on April 14, 2021. Defendants filed motions to dismiss the complaint in the Illinois Circuit Court, Cook County on June 11, which were fully briefed on August 13, 2021. CareerBuilder has also filed a Motion for a Protective Order and to Stay Discovery pending the outcome of the motions to dismiss. On February 7, 2022, the court held a hearing on the motions to dismiss and the request to stay discovery. At the hearing, the court took the motions to dismiss under advisement and granted CareerBuilder’s motion to stay discovery. On March 11, 2022, the parties filed a Notice of Settlement notifying the court that the parties have reached an agreement to resolve the case in full, and the court has granted preliminary approval of the settlement. The final approval hearing for the settlement is scheduled for November 17, 2022. In March 2020, Frank Funds, which claims to be a former shareholder of MPM Holdings, Inc. (“MPM”), commenced an action in the Delaware Court of Chancery, captioned Frank Funds v. Apollo Global Management, Inc., et al. , C.A. No. 2020-0130, against AAM, certain former MPM directors (including three Apollo officers and employees), and members of the consortium that acquired MPM in a May 2019 merger. The complaint asserts, on behalf of a putative class of former MPM shareholders, a claim against Apollo for breach of its fiduciary duties as MPM’s alleged controlling shareholder in connection with the May 2019 merger. Frank Funds seeks unspecified compensatory damages. On July 23, 2019, a group of former MPM shareholders filed an appraisal petition in Delaware Chancery Court seeking the fair value of their MPM shares that were purchased through MPM’s May 15, 2019 merger, in an action captioned In re Appraisal of MPM Holdings, Inc. , C.A. No. 2019-0519 (Del. Ch.). On June 3, 2020, petitioners moved for leave to file a verified amended appraisal petition and class-action complaint that included claims for breach of fiduciary duty and/or aiding and abetting breaches of fiduciary duty against AAM, the Apollo-affiliated fund that owned MPM’s shares before the merger, certain former MPM directors (including three Apollo employees), and members of the consortium that acquired MPM, based on alleged actions related to the May 2019 merger. The petitioners also sought to consolidate their appraisal proceeding with the Frank Funds action. On November 13, 2020, the Chancery Court granted the parties’ stipulated order to consolidate the two matters, and on December 21, 2020, the Chancery Court granted petitioners’ motion for leave to file the proposed amended complaint. This new consolidated action is captioned In Re MPM Holdings Inc. Appraisal and Stockholder Litigation , C.A. No. 2019-0519 (Del Ch.). On January 13, 2022, the Chancery Court denied Apollo’s motion to dismiss. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time. On August 4, 2020, a putative class action complaint was filed in the United States District Court for the District of Nevada against PlayAGS Inc. (“PlayAGS”), all of the members of PlayAGS’s board of directors (including three directors who are affiliated with Apollo), certain underwriters of PlayAGS (including Apollo Global Securities, LLC), as well as AAM, Apollo Investment Fund VIII, L.P., Apollo Gaming Holdings, L.P., and Apollo Gaming Voteco, LLC (these last four parties, together, the “Apollo Defendants”). The complaint asserts claims against all defendants arising under the Securities Act of 1933 in connection with certain secondary offerings of PlayAGS stock conducted in August 2018 and March 2019, alleging that the registration statements issued in connection with those offerings did not fully disclose certain business challenges facing PlayAGS. The complaint further asserts a control person claim under Section 20(a) of the Exchange Act against the Apollo Defendants and the director defendants (including the directors affiliated with Apollo), alleging such defendants were responsible for certain misstatements and omissions by PlayAGS about its business. Plaintiffs filed amended complaints on January 11, 2021 and again on March 25, 2021. On May 24, 2021, the Apollo Defendants filed a motion to dismiss the complaint, which motion remains pending. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time. On or around October 19, 2021, a purported stockholder of AAM filed a complaint against AAM in the Court of Chancery of the State of Delaware seeking the disclosure of certain additional documents pursuant to Section 220 of the Delaware General Corporation Law. The complaint alleges that the stockholder seeks to investigate (a) whether wrongdoing or mismanagement occurred in connection with the decision of the AAM board of directors to pay, in connection with the elimination of the AAM Up-C structure, the partners of AP Professional Holdings, L.P. (including the Former Managing Partners) a payment of cash equal to $3.66 per AOG Unit held, which the complaint characterizes as providing $640 million for “Tax Receivable Agreement” assets (which the stockholder alleges are worth nothing); (b) the independence and disinterestedness of AAM directors and/or officers; and (c) potential damages relating thereto. Apollo and the stockholder subsequently resolved the Section 220 action through the production of supplemental documents, and, on September 29, 2022, the Section 220 action was voluntarily dismissed. It is possible that the stockholder later pursues a plenary action challenging the substantive issues that are the subject of the stockholder’s investigation. Certain of Apollo’s investment adviser subsidiaries have received a request for information and documents from the SEC in connection with an investigation concerning compliance with record retention requirements relating to business communications sent or received via electronic messaging channels. As has been publicly reported, the SEC is conducting similar investigations of other investment advisers. Commitments and Contingencies Other long-term obligations relate to payments with respect to certain consulting agreements entered into by Apollo Investment Consulting LLC, a subsidiary of Apollo, as well as long-term service contracts. A significant portion of these costs are reimbursable by funds or portfolio companies. As of September 30, 2022, fixed and determinable payments due in connection with these obligations were as follows: Remaining 2022 2023 - 2024 2025 - 2026 2027 and Thereafter Total Other long-term obligations $ 15,966 $ 17,403 $ 249 $ — $ 33,618 Contingent Obligations Performance allocations with respect to certain funds are subject to reversal in the event of future losses to the extent of the cumulative revenues recognized in income to date. If all of the existing investments became worthless, the amount of cumulative revenues that have been recognized by Apollo through September 30, 2022 and that would be reversed approximates $4.3 billion. Management views the possibility of all of the investments becoming worthless as remote. Performance allocations are affected by changes in the fair values of the underlying investments in the funds that Apollo manages. Valuations, on an unrealized basis, can be significantly affected by a variety of external factors including, but not limited to, bond yields and industry trading multiples. Movements in these items can affect valuations quarter to quarter even if the underlying business fundamentals remain stable. Additionally, at the end of the life of certain funds that the Company manages, there could be a payment due to a fund by the Company if the Company, as general partner, has received more performance allocations than was ultimately earned. The general partner obligation amount, if any, will depend on final realized values of investments at the end of the life of each fund or as otherwise set forth in the respective limited partnership agreement of the fund. See note 14 to our condensed consolidated financial statements for further details regarding the general partner obligation. Certain funds may not generate performance allocations as a result of unrealized and realized losses that are recognized in the current and prior reporting period. In certain cases, performance allocations will not be generated until additional unrealized and realized gains occur. Any appreciation would first cover the deductions for invested capital, unreturned organizational expenses, operating expenses, management fees and priority returns based on the terms of the respective fund agreements. One of the Company’s subsidiaries, AGS, provides underwriting commitments in connection with securities offerings of related parties of Apollo, including portfolio companies of the funds Apollo manages, as well as third parties. As of September 30, 2022 and December 31, 2021, there were no open underwriting commitments. The Company and Athene, together with a third-party institutional investor, have committed to provide financing to a consolidated VIE that invests across Apollo’s capital markets platform (such VIE, the “Apollo Capital Markets Partnership”). Pursuant to these arrangements, the Company and Athene have committed equity financing to the Apollo Capital Markets Partnership. The Apollo Capital Markets Partnership also has a revolving credit facility with Sumitomo Mitsui Banking Corporation, as lead arranger, administrative agent and letter of credit issuer, Mizuho Bank Ltd., and other lenders party thereto, pursuant to which it may borrow up to $2.25 billion. The revolving credit facility, which has a final maturity date of April 1, 2025, is non-recourse to the Company and Athene, except that the Company and Athene provided customary comfort letters with respect to their capital contributions to the Apollo Capital Markets Partnership. As of September 30, 2022, the Apollo Capital Markets Partnership had funded commitments of $511 million to transactions across Apollo’s capital markets platform, all of which were funded through the revolving credit facility, and no capital had been funded by the Company or Athene to the Apollo Capital Markets Partnership pursuant to their commitments. Whether the commitments of the Apollo Capital Markets Partnership are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. It is expected that between the time the Apollo Capital Markets Partnership makes a commitment and funding of such commitment, efforts will be made to syndicate such commitment to, among others, third parties, which should reduce its risk when committing to certain transactions. The Apollo Capital Markets Partnership may also, with respect to a particular transaction, enter into other arrangements with third parties which reduce its commitment risk. Contingent Consideration In connection with the acquisition of Stone Tower in April 2012, the Company agreed to pay the former owners of Stone Tower a specified percentage of any future performance revenues earned from certain of the Stone Tower funds, CLOs, and strategic investment accounts. This contingent consideration liability was determined based on the present value of estimated future performance revenue payments, and is recorded in profit sharing payable in the condensed consolidated statements of financial condition. The fair value of the remaining contingent obligation was $103.0 million and $125.9 million as of September 30, 2022 and December 31, 2021, respectively. The contingent consideration obligations will be remeasured to fair value at each reporting period until the obligations are satisfied and are characterized as Level III liabilities. The changes in the fair value of the contingent consideration obligations is reflected in profit sharing expense in the condensed consolidated statements of operations. See note 7 for further information regarding fair value measurements. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Apollo conducts its business primarily in the United States through two reportable segments: (i) asset management and (ii) principal investing. Segment information is utilized by our chief operating decision makers to assess performance and to allocate resources. The performance is measured by the Company’s chief operating decision makers 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. Segment Reporting Changes In connection with the completion of the Mergers, Apollo undertook a strategic review of its operating structure and business segments to assess the performance of its businesses and the allocation of resources. As a result, for periods following the Mergers, Apollo reports results through two reportable segments called asset management and principal investing. In connection with these changes, all prior periods have been recast to conform to the new presentation. Consequently, this information will be different from the historical segment financial results previously reported by Apollo in its reports filed with the SEC. Adjusted Segment Income Adjusted Segment Income is the key performance measure used by management in evaluating the performance of the asset management and principal investing segments. Management uses Adjusted Segment Income to make 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; • decisions related to expenses, such as determining annual discretionary bonuses and compensation to employees. With respect to compensation, management seeks to align the interests of certain professionals and selected other individuals with those of the investors in the funds and those of Apollo’s stockholders by providing such individuals a profit sharing interest in the performance fees earned in relation to the funds. To achieve that objective, a certain amount of compensation is based on Apollo’s performance and growth for the year. Adjusted Segment Income is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. Adjusted Segment Income represents the amount of Apollo’s net realized earnings, excluding the effects of the consolidation of any of the related funds and SPACs, interest and preferred dividends paid to Preferred shareholders, taxes and related payables, transaction-related charges and any acquisitions. Transaction-related charges includes equity-based compensation charges, the amortization of intangible assets, contingent consideration, and certain other charges associated with acquisitions, and restructuring charges. In addition, Adjusted Segment Income 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 variable interest entities that are included in the condensed consolidated financial statements. Adjusted Segment Income also excludes impacts of the remeasurement of the tax receivable agreement liability recorded in other income, which arises from changes in the associated deferred tax balance. Adjusted Segment Income may not be comparable to similarly titled measures used by other companies and is not a measure of performance calculated in accordance with U.S. GAAP. We use Adjusted Segment Income as a measure of operating performance, not as a measure of liquidity. Adjusted Segment Income should not be considered in isolation or as a substitute for net income or other income data prepared in accordance with U.S. GAAP. The use of Adjusted Segment Income without consideration of related U.S. GAAP measures is not adequate due to the adjustments described above. Management compensates for these limitations by using Adjusted Segment Income as a supplemental measure to U.S. GAAP results, to provide a more complete understanding of our performance as management measures it. A reconciliation of Adjusted Segment Income to its most directly comparable U.S. GAAP measure of income (loss) before income tax provision can be found in this footnote. Fee Related Earnings Fee Related Earnings (“FRE”) is a component of Adjusted Segment Income that is used to assess the performance of the asset management segment. FRE is the sum of (i) management fees, (ii) advisory and transaction fees, (iii) fee-related performance fees from indefinite term vehicles, that are measured and received on a recurring basis and not dependent on realization events of the underlying investments and (iv) other income, net, less (a) fee-related compensation, excluding equity-based compensation, (b) non-compensation expenses incurred in the normal course of business, (c) placement fees and (d) non-controlling interests in the management companies of certain funds the Company manages. Principal Investing Income Principal Investing Income (“PII”) is a component of Adjusted Segment Income that is used to assess the performance of the principal investing segment. For the principal investing segment, PII is the sum of (i) realized performance fees, excluding realizations received in the form of shares, (ii) realized investment income, less (x) realized principal investing compensation expense, excluding expense related to equity-based compensation, and (y) certain corporate compensation and non-compensation expenses. The following tables present financial data for the Company’s reportable segments. For the Three Months Ended For the Nine Months Ended 2022 2021 2022 2021 Asset Management Management Fees $ 545,924 $ 472,483 $ 1,573,197 $ 1,395,200 Advisory and transaction fees, net 104,532 65,077 271,781 203,807 Fee-related performance fees 19,989 19,856 45,866 36,702 Fee related compensation (193,793) (160,689) (556,389) (476,663) Other operating expenses (112,005) (76,601) (318,716) (218,316) Fee Related Earnings (FRE) 364,647 320,126 1,015,739 940,730 Principal Investing Realized performance fees 92,993 608,130 371,044 1,183,640 Realized investment income 61,410 295,225 537,776 397,610 Principal investing compensation (87,580) (309,016) (398,566) (631,382) Other operating expenses (7,214) (12,014) (19,250) (34,149) Principal Investing Income (PII) 59,609 582,325 491,004 915,719 Adjusted Segment Income 424,256 902,451 1,506,743 1,856,449 Segment Assets: Asset Management $ 1,936,252 Principal Investing 8,379,698 Total Assets (1) $ 10,315,950 (1) Refer below for a reconciliation of total assets for Apollo’s total reportable segments to total consolidated assets. The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Adjusted Segment Income: For the Three Months Ended For the Nine Months Ended 2022 2021 2022 2021 Income before income tax provision $ 107,421 $ 732,851 $ 1,715,064 $ 4,154,111 Equity-based profit sharing expense and other (1) 55,728 31,731 219,454 93,595 Equity-based compensation 45,183 19,538 138,584 55,187 Transaction-related charges (2) 8,028 (954) 5,928 27,028 Merger-related transaction and integration costs (3) 12,150 14,647 48,637 38,331 (Gains) losses from changes in tax receivable agreement liability — — 14,184 (1,941) Net income attributable to non-controlling interests in consolidated entities (17,795) (112,569) (276,984) (299,423) Unrealized performance fees 66,202 159,044 109,083 (1,411,205) Unrealized profit sharing expense (18,609) (40,991) (15,909) 646,142 Net interest expense 21,236 32,552 78,007 100,365 Unrealized principal investment income (loss) 127,488 218,816 137,784 (153,577) Unrealized net (gains) losses from investment activities and other 17,224 (152,214) (667,089) (1,392,164) Adjusted Segment Income $ 424,256 $ 902,451 $ 1,506,743 $ 1,856,449 (1) Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are required to be used by employees of Apollo to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under AGM’s Equity Plan. Equity-based profit sharing expense and other also includes performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense. (2) Transaction-related charges include contingent consideration, equity-based compensation charges and the amortization of intangible assets and certain other charges associated with acquisitions, and restructuring charges. (3) Merger-related transaction and integration costs includes advisory services, technology integration, equity-based compensation charges and other costs associated with the Mergers. The following table presents the reconciliation of the Company’s total reportable segment assets to total assets: As of As of Total reportable segment assets $ 10,315,950 $ 13,573,400 Adjustments (1) 2,002,132 16,928,494 Total assets $ 12,318,082 $ 30,501,894 (1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Dividends On November 2, 2022, the Company declared a cash dividend of $0.398438 per share of Series A Preferred shares and Series B Preferred shares, which will be paid on December 15, 2022 to holders of record at the close of business on December 1, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization of the Company | Organization of the Company As of September 30, 2022, the Company owned 57.4% of the economic interests of, and operated and controlled all of the businesses and affairs of, the Apollo Operating Group. The remaining 42.6% of the economic interests of the Apollo Operating Group are owned by Apollo Global Management, Inc. (“AGM”). |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the 2021 Annual Report. Certain disclosures included in the annual financial statements have been condensed or omitted as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. 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. The results of the Company and its subsidiaries are presented on a consolidated basis. Any ownership interest other than the Company’s interest in its subsidiaries is reflected as a non-controlling interest. Intercompany accounts and transactions have been eliminated. 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 any estimates made are reasonable and prudent. Certain reclassifications have been made to previously reported amounts to conform to the current period’s presentation. |
Consolidation | Consolidation When an entity is consolidated, the accounts of the consolidated entity, including its assets, liabilities, revenues, expenses and cash flows, are presented on a gross basis. Consolidation does not have an effect on the amounts of net income reported. The Company consolidates entities where it has a controlling financial interest unless there is a specific scope exception that prevents consolidation. The types of entities with which the Company is involved generally include, but are not limited to: • Subsidiaries, including management companies and general partners of funds that the Company manages • Entities that have attributes of an investment company (e.g., funds) • Special purpose acquisition companies (“SPACs”) • Securitization vehicles (e.g., collateralized loan obligations (“CLOs”)) Each of these entities is assessed for consolidation depending on the specific facts and circumstances surrounding that entity. In determining whether to consolidate an entity, the Company first evaluates whether the entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”) and applies the appropriate consolidation model as discussed below. If an entity is not consolidated, then the Company’s investment is generally accounted for under the equity method of accounting or as a financial instrument as discussed in the related policy discussions below. Investment Companies Judgment is required to evaluate whether an entity has the necessary characteristics to be accounted for as an investment company. Funds we manage that meet the investment company criteria are generally not required to consolidate operating companies and generally reflect their investments in operating companies and other investment companies at fair value. The Company has retained this specialized accounting for investment companies in consolidation. Variable Interest Entities All entities are first considered under the VIE model. VIEs are entities that i) do not have sufficient equity at risk to finance its activities without additional subordinated financial support or ii) have equity investors that do not have the ability to make significant decisions related to the entity’s operations, absorb expected losses, or receive expected residual returns. The Company consolidates a VIE if it is the primary beneficiary of the entity. The Company is deemed 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 (“primary beneficiary power”) and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (“significant variable interest”). The Company performs the VIE and primary beneficiary assessment at inception of its involvement with a VIE and on an ongoing basis if facts and circumstances change. To assess whether the Company has the primary beneficiary power under the VIE consolidation model, it considers the design of the entity as well as ongoing rights and responsibilities. In general, the parties that can make the most significant decisions regarding asset management have control over servicing, liquidation rights or the unilateral right to remove the decision-makers. To assess whether the Company has a significant variable interest, the Company considers all its economic interests that are considered variable interests in the entity including interests held through related parties. This assessment requires judgment in considering whether those interests are significant. Assets and liabilities of the consolidated VIEs, other than SPACs, 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 primarily 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 notes 6 and 14. Voting Interest Entities For entities that are not determined to be VIEs, the entities are generally considered VOEs. Under the VOE 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. |
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 in the financial statements and the related footnotes. Apollo’s most significant estimates include goodwill, intangible assets, income taxes, performance allocations, incentive fees, contingent consideration obligations related to an acquisition, non-cash compensation, and fair value of investments and debt. While such impact may change considerably over time, the estimates and assumptions affecting the Company’s condensed consolidated financial statements are based on the best available information as of September 30, 2022. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents / Restricted Cash and Cash Equivalents | Cash and Cash Equivalents Apollo considers all highly liquid short-term investments, including money market funds and U.S. Treasury securities, with original maturities of three months or less when purchased to be cash equivalents. Restricted cash and cash equivalents are reported separately as discussed below. 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 represent their fair values due to their short-term nature. Substantially all of the Company’s cash on deposit is in interest bearing accounts with major financial institutions and exceed insured limits. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents represent balances that are restricted as to withdrawal or usage. |
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 within investments in the condensed consolidated statements of financial condition. 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 (losses) from investment activities in the condensed consolidated statements of operations. Securities are generally recognized on a trade date basis. |
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 in an orderly transaction. Changes in the fair value of financial instruments are recorded and presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statement of operations. Financial instruments are generally recorded at fair value or at carrying values that approximate fair value. 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. Fair Value Option Entities are permitted to elect the fair value option (“FVO”) to carry at fair value certain financial assets and financial liabilities. The FVO election is irrevocable and can be applied to eligible financial instruments on an individual basis at initial recognition or at eligible remeasurement events. The Company has elected the FVO for financial instruments held by its consolidated CLOs, which includes investments in loans and corporate bonds, as well as debt obligations and contingent obligations. Certain consolidated VIEs have applied the FVO for investments in private debt securities that otherwise would not have been carried at fair value with gains and losses in net income. The Company has also elected the FVO for certain investments otherwise accounted for under the equity method of accounting. Refer to note 4 for additional information and other instances of when the Company has elected the FVO. 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 equity and hybrid 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 external pricing services. 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. 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. |
Equity Method Investments | Equity Method Investments For equity investments in entities where the Company exercises significant influence but does not meet the requirements for consolidation and has not elected the fair value option, the Company uses the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities adjusted for distributions. The Company’s share of the underlying net income or loss of such entities is recorded in Investment income (loss) 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. Generally, the underlying entities that the Company manages and invests in are primarily investment companies, and the carrying value of the Company’s equity method investments approximates fair value. |
Financial Instruments held by Consolidated VIEs | Financial Instruments held by Consolidated VIEs Under a measurement alternative permissible for consolidated collateralized financing entities, the Company measures both the financial assets and financial liabilities of consolidated CLOs in its condensed consolidated financial statements using the fair value of the financial assets or financial liabilities, whichever are more observable. Where financial assets are more observable, 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 nonfinancial 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. Where financial liabilities are more observable, the financial liabilities of the consolidated CLOs are measured at fair value and the financial assets are measured in consolidation as: (i) the sum of the fair value of the financial liabilities, and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CLOs less (ii) the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs. The resulting amount is allocated to the individual financial assets using a reasonable and consistent methodology. Net income attributable to Apollo Asset Management, Inc. 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. |
Deferred Revenue and Revenues | Deferred Revenue Apollo records deferred revenue, which is a type of contract liability, when consideration is received in advance of management services provided. Apollo also earns management fees subject to the Management Fee Offset (described below). 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 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. There was $109.7 million of revenue recognized during the nine months ended September 30, 2022 that was previously deferred as of January 1, 2022. 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 cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract, and amortized over the life of the customer contract. Capitalized placement fees are recorded within other assets in the condensed consolidated statements of financial condition, while amortization is recorded within placement fees in the condensed consolidated statements of operations. 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. Revenues The Company’s revenues include (i) management fees; (ii) advisory and transaction fees, net; (iii) investment income, which is comprised of performance allocations and principal investment income; and (iv) incentive fees. The Company is required to 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, the Company may recognize variable consideration only to the extent that it is probable to not be significantly reversed. The Company is also required to disclose the nature, amount, timing, and uncertainty of revenue that is recognized. Performance allocations are accounted for as equity method investments. The Company recognizes performance allocations within investment income along with the related principal investment income (as further described below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition. |
Redeemable non-controlling interests | Redeemable non-controlling interestsRedeemable non-controlling interests are attributable to VIEs and primarily represent the shares issued by the Company’s consolidated SPACs that are redeemable for cash by the respective public shareholders in connection with the applicable SPAC’s failure to complete a business combination or its tender offer/stockholder approval provisions. The redeemable non-controlling interests are initially recorded at their original issue price, net of issuance costs and the initial fair value of separately traded warrants. The carrying amount is accreted to its redemption value over the period from the date of issuance to the earliest redemption date of the instrument. The accretion to redemption value is generally recorded against additional paid-in capital. |
Management Fees | Management Fees Management fees are recognized over time during the periods in which the related services are performed in accordance with the contractual terms of the related agreement. Management fees are generally based on (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, Net | Advisory and Transaction Fees, Net Advisory fees, including management consulting fees and directors’ fees, are generally recognized over time as the underlying services are provided in accordance with the contractual terms of the related agreement. The Company receives such fees in exchange for ongoing management consulting services provided to portfolio companies of funds it manages. Transaction fees, including structuring fees and arranging fees related to the Company’s funds, portfolio companies of funds and third parties are generally recognized at a point in time when the underlying services rendered are complete. The amounts due from fund portfolio companies are recorded in due from related parties on the condensed consolidated statements of financial condition, which is discussed further in note 14. 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 are presented net of the Management Fee Offset in the condensed consolidated statements of operations. Underwriting fees, which are also included within advisory and transaction fees, net, include gains, losses and fees, arising from securities offerings in which one of the Company’s subsidiaries participates in the underwriter syndicate. Underwriting fees are recognized at a point in time when the underwriting is completed. Underwriting fees recognized but not received are recorded in other assets on the condensed consolidated statements of financial condition. |
Investment Income | Investment Income Investment income is comprised of performance allocations and principal investment income. Performance Allocations Performance allocations are a type of performance revenue (i.e., income earned based on the extent to which an entity’s performance exceeds predetermined thresholds). Performance allocations are generally structured from a legal standpoint as an allocation of capital in which the Company’s capital account receives allocations of the returns of an entity when those returns exceed predetermined thresholds. The determination of which performance revenues are considered performance allocations is primarily based on the terms of an agreement with the entity. The Company recognizes performance allocations within investment income along with the related principal investment income (as described further below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition. When applicable, the Company may record a general partner obligation to return previously distributed performance allocations. The general partner obligation is based upon an assumed liquidation of a fund’s net assets as of the reporting date and is reported within due to related parties on the condensed consolidated statements of financial condition. 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 or other governing document of the fund. Principal Investment Income |
Incentive Fees | Incentive Fees Incentive fees are a type of performance revenue. Incentive fees differ from performance allocations in that incentive fees do not represent an allocation of capital but rather a contractual fee arrangement with the entity. |
Salaries, Bonus and Benefits | Salaries, Bonus and Benefits Salaries, bonus and benefits include base salaries, discretionary and non-discretionary bonuses, severance and employee benefits. Bonuses are generally accrued over the related service period. |
Equity-Based Compensation | Equity-Based Compensation Equity-based awards granted to employees and non-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. In addition, certain restricted share units (“RSUs”) granted by AGM vest based on both continued service and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation expense. In accordance with U.S. GAAP, equity-based compensation expense for such awards, if and when granted, will be recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. The Company accounts for forfeitures of equity-based awards when they occur. |
Profit Sharing | Profit Sharing Profit sharing expense and profit sharing payable primarily consist of a portion of performance revenues earned from certain funds that are allocated to employees and former employees. Profit sharing amounts are recognized as the related performance revenues are earned. Accordingly, profit sharing amounts can be reversed during periods when there is a decline in performance revenues that were previously recognized. Profit sharing amounts are generally not paid until the related performance revenue is distributed to the general partner upon realization of the fund’s investments. Under certain profit sharing arrangements, the Company requires that a portion of certain of the performance revenues distributed to its employees be used to purchase restricted common stock issued under AGM’s Equity Plan. Prior to distribution of the performance revenue, the Company records the value of the equity-based awards expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. Such equity-based awards are recorded as equity-based compensation expense over the relevant service period once granted. Additionally, profit sharing amounts previously distributed may be subject to clawback from employees and former employees. 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 and former employees 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 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 or other governing document of the fund. 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. |
401(k) Savings Plan | 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. 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. |
General, Administrative and Other | General, Administrative and OtherGeneral, administrative and other primarily includes professional fees, occupancy, depreciation and amortization, travel, information technology, administration expenses and placement fees. |
Income Taxes | Income Taxes The Company is a Delaware corporation and generally all of its income is subject to U.S. corporate income taxes. Certain entities within the legal entity structure of the Company operate as partnerships for U.S. income tax purposes and are subject to NYC UBT. Certain non-U.S. entities are also subject to non-U.S. corporate income taxes. The Company is included in the U.S. federal consolidated and certain state combined income tax returns with AGM and its other subsidiaries. For purposes of these separate company consolidated financial statements, the Company’s taxes were determined using the separate return method as if the Company had filed tax returns separate from AGM. As a result, the tax effects of certain activity and the tax treatment of certain transactions included in the condensed consolidated financial statements of AGM may not be the same in the Company’s separate company consolidated financial statements. Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties. The Company’s tax positions are reviewed and evaluated quarterly to determine whether the Company has uncertain tax positions that require financial statement recognition. The Company recognizes the tax benefit of uncertain tax positions only where the position is “more likely than not” to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If a tax position was not considered more likely than not to be sustained, then no benefits of the position would be recognized. Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial statement carrying amount of assets and liabilities and their respective tax bases using currently enacted tax rates in the period the temporary difference is expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period during which the change is enacted. Deferred tax assets are reduced by a valuation |
Non-Controlling Interests | Non-Controlling Interests For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the condensed consolidated financial statements. Prior to the Corporate Recapitalization, the non-controlling interests relating to AGM included the ownership interest in the Apollo Operating Group held by Former Managing Partners and Contributing Partners through their limited partner interests in Holdings. Additionally, Athene held non-controlling interests in the Apollo Operating Group. Subsequent to the closing of the Mergers, Athene’s interest in the Apollo Operating Group was distributed to AGM. Non-controlling interests also include ownership interests in certain consolidated funds and VIEs. Non-controlling interests are presented as a separate component of stockholders’ equity on the Company’s condensed consolidated statements of financial condition. The primary components of Non-controlling interests are separately presented in the Company’s condensed consolidated statements of changes in stockholders’ equity to clearly distinguish the interest in the Apollo Operating Group and other ownership interests in the consolidated entities. Net income includes the net income attributable to the holders of Non-controlling interests on the Company’s condensed consolidated statements of operations. Profits and losses are allocated to Non-controlling interests in proportion to their relative ownership interests regardless of their basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Fair Value Measurement — Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03) In June 2022, the FASB issued clarifying guidance that a restriction which is a characteristic of the holding entity rather than a characteristic of the equity security itself should not be considered in its fair value measurement. As a result, the Company is required to measure the fair value of equity securities subject to contractual restrictions attributable to the holding entity on the basis of the market price of the same equity security without those contractual restrictions. Companies are not permitted to recognize a contractual sale restriction attributable to the holding entity as a separate unit of account. The guidance also requires disclosures for these equity securities. The new guidance is mandatorily effective for the Company by January 1, 2024 with early adoption permitted. When adopted, the Company will apply the guidance on a prospective basis as an adjustment to current-period earnings with the adoption impact disclosed in the period of adoption. The Company is currently evaluating the new guidance and its impact on the consolidated financial statements. Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08) In October 2021, the FASB issued guidance to add contract assets and contract liabilities from contracts with customers acquired in a business combination to the list of exceptions to the fair value recognition and measurement principles that apply to business combinations, and instead require them to be accounted for in accordance with revenue recognition guidance. The new guidance is mandatorily effective for the Company on January 1, 2023 and applied prospectively, with early adoption permitted. All entities except those that qualify as an investment company under Topic 946 are required to apply the amendments prospectively with any adjustments from adoption recorded in current period earnings and amounts disclosed. |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents Apollo’s goodwill by segment: As of As of Asset Management $ 231,562 $ 84,776 Principal Investing 32,182 32,182 Total Goodwill $ 263,744 $ 116,958 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Investments | The following table presents Apollo’s investments: As of As of Investments, at fair value $ 1,131,409 $ 5,588,992 Equity method investments 1,085,035 1,345,750 Performance allocations 2,502,446 2,731,733 U.S. Treasury Securities, at fair value 1,372,048 1,687,105 Total Investments $ 6,090,938 $ 11,353,580 |
Summary of Equity Method Investments | As such, the following tables present summarized financial information of Athene Holding: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Statements of Operations Revenues $ — $ 8,724 $ (269) $ 19,538 Benefits and expenses — 8,004 2,504 16,689 Income (loss) before income taxes — 720 (2,773) 2,849 Income tax expense (benefit) — (50) (407) 196 Net income (loss) — 770 (2,366) 2,653 Less: Net income (loss) attributable to non-controlling interests — 37 (883) (111) Net income (loss) available to Athene Holding Ltd. shareholders $ — $ 733 $ (1,483) $ 2,764 Less: Preferred stock dividends — 35 35 106 Net income (loss) available to Athene Holding Ltd. common shareholders $ — $ 698 $ (1,518) $ 2,658 |
Summary of Realized and Net Change in Unrealized Gains (Losses) on Investments, at Fair Value | Net Gains (Losses) from Investment Activities The following table presents the realized and net change in unrealized gains reported in net gains (losses) from investment activities: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Realized gains (losses) on sales of investments, net $ (984) $ (197) $ 206,547 $ 996 Net change in unrealized gains due to changes in fair value (15,164) 172,995 694,621 1,438,347 Net gains (losses) from investment activities $ (16,148) $ 172,798 $ 901,168 $ 1,439,343 |
Summary of Performance Allocation | Performance allocations receivable is recorded within investments in the condensed consolidated statements of financial condition. The table below provides a roll forward of the performance allocations balance: Total Performance allocations, January 1, 2022 $ 2,731,733 Change in fair value of funds 314,800 Fund distributions to the Company (544,087) Performance allocations, September 30, 2022 $ 2,502,446 |
PROFIT SHARING PAYABLE (Tables)
PROFIT SHARING PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Profit Sharing Payable [Abstract] | |
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: Total Profit sharing payable, January 1, 2022 $ 1,444,652 Profit sharing expense 366,812 Payments/other (313,684) Profit sharing payable, September 30, 2022 $ 1,497,780 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Gain on Investments of Variable Interest Entities | The following table presents net gains from investment activities of the consolidated VIEs: For the Three Months Ended For the Nine Months Ended 2022 (1) 2021 (1) 2022 (1) 2021 (1) Net gains from investment activities $ 7,740 $ 104,885 $ 105,091 $ 460,459 Net gains (losses) from debt — (4,210) 10,138 (15,737) Interest and other income 13,971 162,815 218,596 525,573 Interest and other expenses (10,324) (121,035) (6,366) (569,843) Net gains from investment activities of consolidated variable interest entities $ 11,387 $ 142,455 $ 327,459 $ 400,452 (1) Amounts reflect consolidation eliminations. |
Principal Provisions of Debt | The following table summarizes the principal provisions of those amounts. As of September 30, 2022 As of December 31, 2021 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) $ — N/A N/A $ 7,431,467 3.16 % 15.5 Subordinated Notes (2) — N/A N/A 613,192 N/A (1) 14.5 Subscription Lines (2) 651,491 4.87 % 0.14 — N/A N/A Secured Borrowings (2)(3) — N/A N/A 18,149 2.33 % 0.4 Total $ 651,491 $ 8,062,808 (1) The principal outstanding balance of the subordinated notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the VIEs. (2) The notes, subscription lines and borrowings of the consolidated VIEs are collateralized by assets held by each respective vehicle and assets of one vehicle may not be used to satisfy the liabilities of another vehicle. (3) As of December 31, 2021, secured borrowings consist of consolidated VIEs’ obligations through a repurchase agreement redeemable at maturity with third party lenders. The fair value of the secured borrowings as of December 31, 2021 approximates principal outstanding due to the short term nature of the borrowings. These secured borrowings are classified as a Level III liability within the fair value hierarchy. |
Carrying Amounts of Assets and Liabilities | The following table presents the maximum exposure to losses relating to these VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary. As of (2) As of (2) Apollo Exposure (1) $ 287,976 $ 240,871 (1) Represents Apollo’s direct investment in those entities in which Apollo holds a significant variable interest and certain other investments. Additionally, cumulative performance allocations are subject to reversal in the event of future losses, as discussed in note 15. (2) Some amounts included are a quarter in arrears. |
FAIR VALUE MEASUREMENTS OF FI_2
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Level I Level II Level III NAV Total Assets Cash and cash equivalents (1) $ 1,118,305 $ — $ — $ — $ 1,118,305 Restricted cash and cash equivalents (2) 696,712 — — — 696,712 Cash and cash equivalents of VIEs 84,132 — — — 84,132 U.S. Treasury securities (3) 1,372,048 — — — 1,372,048 Investments, at fair value 147,061 35,615 939,742 (4) 8,991 1,131,409 Investments of VIEs, at fair value 17,185 1,412 935,396 62,826 1,016,819 Due from related parties (5) — — 41,911 — 41,911 Derivative assets (6) — 40,806 7,891 — 48,697 Total Assets $ 3,435,443 $ 77,833 $ 1,924,940 $ 71,817 $ 5,510,033 Liabilities Other liabilities of VIEs, at fair value — 2,032 — — 2,032 Contingent consideration obligations (7) — — 103,002 — 103,002 Other liabilities (8) 1,518 — — — 1,518 Total Liabilities $ 1,518 $ 2,032 $ 103,002 $ — $ 106,552 As of December 31, 2021 Level I Level II Level III NAV Total Assets Cash and cash equivalents (1) $ 917,183 $ — $ — $ — $ 917,183 Restricted cash and cash equivalents (2) 707,885 — — — 707,885 Cash and cash equivalents of VIEs 463,266 — — — 463,266 U.S. Treasury securities (3) 1,687,105 — — — 1,687,105 Investments Investment in Athene Holding 4,548,048 — — — 4,548,048 Other investments 48,493 46,267 946,184 (4) — 1,040,944 Total investments 4,596,541 46,267 946,184 — 5,588,992 Investments of VIEs, at fair value 6,232 1,055,421 13,187,803 487,595 14,737,051 Due from related parties (5) — — 47,835 — 47,835 Derivative assets (6) — 7,436 — — 7,436 Total Assets $ 8,378,212 $ 1,109,124 $ 14,181,822 $ 487,595 $ 24,156,753 Liabilities Debt of VIEs, at fair value $ — $ 446,029 $ 7,496,479 $ — $ 7,942,508 Other liabilities of VIEs, at fair value — 3,111 31,090 557 34,758 Contingent consideration obligations (7) — — 125,901 — 125,901 Other liabilities (8) 47,961 — — — 47,961 Derivative liabilities (6) — 1,520 — — 1,520 Total Liabilities $ 47,961 $ 450,660 $ 7,653,470 $ 557 $ 8,152,648 (1) Cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $0.6 million and $1.8 million, respectively, of cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information. (2) Restricted cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $694.6 million and $690.2 million, respectively, of restricted cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information. (3) U.S. Treasury securities as of September 30, 2022 and December 31, 2021 includes $347.2 million and $1.2 billion, respectively, of U.S. Treasury securities held by consolidated SPACs. Refer to note 14 for further information. (4) Investments as of September 30, 2022 and December 31, 2021 excludes $178.1 million and $175.8 million, respectively, of performance allocations classified as Level III related to certain investments for which the Company has elected the fair value option. The Company’s policy is to account for performance allocations as investments. (5) Due from related parties represents a receivable from a fund. (6) Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the condensed consolidated statements of financial condition. (7) Profit sharing payable includes contingent obligations classified as Level III. (8) Other liabilities as of September 30, 2022 includes the publicly traded warrants of APSG II. Other liabilities as of December 31, 2021 includes the publicly traded warrants of APSG I and APSG II. |
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, 2022 Investments and Derivative Assets Investments of Consolidated VIEs Total Balance, Beginning of Period $ 1,079,778 $ 843,266 $ 1,923,044 Purchases 10,115 973,126 983,241 Sales of investments/distributions (116,986) (863,413) (980,399) Net realized gains (losses) 51,653 (1,296) 50,357 Changes in net unrealized gains (losses) (35,848) (16,287) (52,135) Cumulative translation adjustment (41,079) — (41,079) Balance, End of Period $ 947,633 $ 935,396 $ 1,883,029 Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date $ 11,894 $ — $ 11,894 Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — (2,169) (2,169) For the Three Months Ended September 30, 2021 Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 389,787 $ 11,877,952 $ 12,267,739 Transfer out due to deconsolidation — (924) (924) Purchases 204,587 284,605 489,192 Sale of investments/distributions — (344,659) (344,659) Net realized gains (losses) 16,488 16,616 33,104 Changes in net unrealized gains (losses) 19,766 79,212 98,978 Cumulative translation adjustment (1,873) (10,166) (12,039) Transfer into Level III (1) — 31,444 31,444 Transfer out of Level III (1) (2,422) (194,955) (197,377) Balance, End of Period $ 626,333 $ 11,739,125 $ 12,365,458 Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date $ 19,766 $ — $ 19,766 Change in net unrealized gains included in net gains (losses) from investment activities of consolidated VIEs related to investments still held at reporting date — 79,514 79,514 (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 external pricing services. For the Nine Months Ended September 30, 2022 Investments and Derivative Assets Investments of Consolidated VIEs Total Balance, Beginning of Period $ 946,184 $ 13,187,803 $ 14,133,987 Net transfer in (out) due to consolidation (deconsolidation) 21,710 (14,190,236) (14,168,526) Purchases 115,817 4,444,308 4,560,125 Sale of investments/distributions (121,118) (2,702,495) (2,823,613) Net realized gains (losses) 48,687 19,861 68,548 Changes in net unrealized gains (losses) 23,240 160,094 183,334 Cumulative translation adjustment (87,891) (10,808) (98,699) Transfer into Level III (1) 1,004 29,803 30,807 Transfer out of Level III (1) — (2,934) (2,934) Balance, End of Period $ 947,633 $ 935,396 $ 1,883,029 Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date $ 72,254 $ — $ 72,254 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — 6,613 6,613 For the Nine Months Ended September 30, 2021 Other Investments Investments of Consolidated VIEs Total Balance, Beginning of Period $ 369,772 $ 10,962,980 $ 11,332,752 Transfer out due to consolidation — (230,641) (230,641) Purchases 204,587 1,967,028 2,171,615 Sale of investments/distributions (3,235) (1,150,592) (1,153,827) Net realized gains (losses) 17,556 29,591 47,147 Changes in net unrealized gains (losses) 48,882 411,359 460,241 Cumulative translation adjustment (9,513) (24,414) (33,927) Transfer into Level III (1) 706 41,329 42,035 Transfer out of Level III (1) (2,422) (267,515) (269,937) Balance, End of Period $ 626,333 $ 11,739,125 $ 12,365,458 Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date $ 48,882 $ — $ 48,882 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date — 278,471 278,471 (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 external pricing services. |
Changes in Fair Value in Financial Liabilities, Measured at Fair Value and Characterized as Level III Liabilities | The following tables summarize 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, 2022 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 104,202 $ — $ 104,202 Changes in net unrealized (gains) losses (1) (1,200) — (1,200) Balance, End of Period $ 103,002 $ — $ 103,002 For the Three Months Ended September 30, 2021 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 128,984 $ 7,206,174 $ 7,335,158 Issuances — 15,980 15,980 Repayments (7,495) (29,510) (37,005) Net realized (gains) losses — (1,681) (1,681) Changes in net unrealized (gains) losses (1) (1,902) 13,859 11,957 Cumulative translation adjustment — (10,293) (10,293) Transfers into Level III (2) — 256 256 Balance, End of Period $ 119,587 $ 7,194,785 $ 7,314,372 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date $ — $ 4,672 $ 4,672 For the Nine Months Ended September 30, 2022 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 125,901 $ 7,527,569 $ 7,653,470 Transfer out due to deconsolidation — (8,626,153) (8,626,153) Issuances — 1,645,025 1,645,025 Payments (13,259) (518,773) (532,032) Net realized (gains) losses — (480) (480) Changes in net unrealized (gains) losses (1) (9,640) (16,368) (26,008) Cumulative translation adjustment — (10,820) (10,820) Balance, End of Period $ 103,002 $ — $ 103,002 For the Nine Months Ended September 30, 2021 Contingent Consideration Obligations Debt and Other Liabilities of Consolidated VIEs Total Balance, Beginning of Period $ 119,788 $ 7,100,620 $ 7,220,408 Issuances — 327,388 327,388 Payments (20,609) (301,414) (322,023) Net realized (gains) losses — 9,049 9,049 Changes in net unrealized (gains) losses (1) 20,408 83,005 103,413 Cumulative translation adjustment — (24,316) (24,316) Transfers into Level III (2) — 453 453 Balance, End of Period $ 119,587 $ 7,194,785 $ 7,314,372 Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date $ — $ 93,743 $ 93,743 (1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations. (2) 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. |
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, 2022 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (1) Financial Assets Investments $ 512,207 Embedded value N/A N/A N/A 121,666 Discounted cash flow Discount rate 8.9% - 52.8% 29.4% 305,869 Adjusted transaction value N/A N/A N/A Due from related parties 41,911 Discounted cash flow Discount rate 15.0% 15.0% Derivative assets 7,891 Option model Volatility rate 38.8% - 40.0% 39.7% Investments of consolidated VIEs: Bank loans 491,893 Adjusted transaction value N/A N/A N/A Discounted cash flow Discount rate 7.1% - 32.7% 7.6% Equity securities 411,320 Dividend discount model Discount rate 13.9% 13.9% Bonds 32,035 Discounted cash flow Discount rate 7.9% 7.9% Adjusted transaction value N/A N/A N/A Warrants 148 Discounted cash flow Discount rate 15.4% 15.4% Total Financial Assets $ 1,924,940 Financial Liabilities Contingent Consideration Obligation 103,002 Discounted cash flow Discount rate 19.0% 19.0% Total Financial Liabilities $ 103,002 As of December 31, 2021 Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (1) Financial Assets Other investments $ 516,221 Embedded value N/A N/A N/A 169,625 Discounted cash flow Discount rate 14.0% - 52.8% 26.4% 260,338 Adjusted transaction value N/A N/A N/A Due from related parties 47,835 Discounted cash flow Discount rate 16.0% 16.0% Investments of consolidated VIEs: Equity securities 4,144,661 Discounted cash flow Discount rate 3.0% - 19.0% 10.4% Dividend discount model Discount rate 13.7% 13.7% Market comparable companies NTAV multiple 1.25x 1.25x Adjusted transaction value Purchase multiple 1.25x 1.25x Adjusted transaction value N/A N/A N/A Bank loans 4,569,873 Discounted cash flow Discount rate 1.8% - 15.6% 4.3% Adjusted transaction value N/A N/A N/A Profit participating notes 2,849,150 Discounted cash flow Discount rate 8.7% - 12.5% 12.4% Adjusted transaction value N/A N/A N/A Real estate 511,648 Discounted cash flow Capitalization rate 4.0% - 5.8% 5.3% Discounted cash flow Discount rate 5.0% - 12.5% 7.3% Discounted cash flow Terminal capitalization rate 8.3% 8.3% Direct capitalization Capitalization rate 5.5% - 8.5% 6.2% Direct capitalization Terminal capitalization rate 6.0% - 12.0% 6.9% Bonds 50,885 Discounted cash flow Discount rate 4.0% - 7.0% 6.1% Third party pricing N/A N/A N/A Other equity investments 1,061,586 Discounted cash flow Discount rate 11.8% -12.5% 12.1% Adjusted transaction value N/A N/A N/A Total Investments of Consolidated VIEs 13,187,803 Total Financial Assets $ 14,181,822 Financial Liabilities Liabilities of Consolidated VIEs: Secured loans $ 4,311,348 Discounted cash flow Discount rate 1.4% - 10.0% 2.8% Subordinated notes 3,164,491 Discounted cash flow Discount rate 4.5% - 11.9% 5.8% Participating equity 20,640 Discounted cash flow Discount rate 15.0% 15.0% Other liabilities 31,090 Discounted cash flow Discount rate 3.7% - 9.3% 6.3% Total Liabilities of Consolidated VIEs 7,527,569 Contingent Consideration Obligation 125,901 Discounted cash flow Discount rate 18.5% 18.5% Total Financial Liabilities $ 7,653,470 N/A Not applicable EBITDA Earnings before interest, taxes, depreciation, and amortization NTAV Net tangible asset value (1) Unobservable inputs were weighted based on the fair value of the investments included in the range. |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following: As of As of Fixed assets $ 403,095 $ 256,252 Less: Accumulated depreciation and amortization (148,699) (130,072) Fixed assets, net 254,396 126,180 Deferred equity-based compensation (1) 240,759 282,900 Intangible assets, net (2) 185,146 14,846 Commitment asset (3) 154,563 — Prepaid expenses 60,486 57,765 Tax receivables 55,040 30,334 Other 134,031 73,876 Total Other Assets $ 1,084,421 $ 585,901 (1) Deferred equity-based compensation relates to the value of equity-based awards that have been or are expected to be granted in connection with the settlement of certain profit sharing arrangements. A corresponding amount for awards expected to be granted of $181.1 million and $210.6 million, as of September 30, 2022 and December 31, 2021, respectively, is included in other liabilities on the condensed consolidated statements of financial condition. (2) Includes intangible assets from the acquisition of Griffin Capital's U.S. asset management business. (3) Represents a commitment from an institutional investor as part of a strategic transaction. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease Expense, Supplemental Cash Flow Information and Maturities of Lease Liabilities | The table below presents operating lease expenses recorded in general, administrative and other in the condensed consolidated statements of operations. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 18,002 $ 10,916 $ 51,283 $ 33,930 The following table presents supplemental cash flow information related to operating leases: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Operating cash flows for operating leases $ 14,285 $ 10,971 $ 32,851 $ 23,465 Supplemental information related to leases is as follows: As of As of Weighted average remaining lease term (in years) 12.5 13.3 Weighted average discount rate 2.7 % 2.9 % |
Lease Payments by Maturity | As of September 30, 2022, the Company’s total lease payments by maturity are presented in the following table: Operating Lease Payments Remaining 2022 $ 15,523 2023 67,832 2024 67,981 2025 67,244 2026 62,739 Thereafter 511,882 Total lease payments $ 793,201 Less imputed interest (124,120) Present value of lease payments $ 669,081 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Impact to the Deferred Tax Asset, Tax Receivable Agreement Liability and Additional Paid in Capital | After the Mergers, the Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the tax receivable agreement during the nine months ended September 30, 2022. 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 for the nine months ended September 30, 2021. Exchange of AOG Units Increase in Deferred Tax Asset Increase in Tax Receivable Agreement Liability Increase to Additional Paid In Capital For the Nine Months Ended September 30, 2021 $ 292,844 $ 243,157 $ 49,687 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt consisted of the following: As of September 30, 2022 As of December 31, 2021 Maturity Date Outstanding Fair Value Outstanding Fair Value 4.00% 2024 Senior Notes (1)(2) May 30, 2024 $ 498,959 $ 486,201 (4) $ 498,469 $ 530,052 (4) 4.40% 2026 Senior Notes (1)(2) May 27, 2026 498,114 474,335 (4) 497,730 553,055 (4) 4.87% 2029 Senior Notes (1)(2) February 15, 2029 674,809 629,825 (4) 674,786 777,703 (4) 2.65% 2030 Senior Notes (1)(2) June 5, 2030 495,375 395,079 (4) 494,928 506,094 (4) 4.77% 2039 Senior Secured Guaranteed Notes (1)(2) — — (6) 317,985 369,041 (5) 5.00% 2048 Senior Notes (1)(2) March 15, 2048 296,899 263,572 (4) 296,757 397,191 (4) 4.95% 2050 Subordinated Notes (1)(2) January 14, 2050 296,714 256,913 (4) 296,675 308,687 (4) 1.70% Secured Borrowing II (1) April 15, 2032 16,663 15,708 (3) 19,334 19,239 (3) 1.30% 2016 AMI Term Facility I (1) January 15, 2025 16,536 16,536 (3) 19,186 19,186 (3) 1.40% 2016 AMI Term Facility II (1) July 23, 2023 15,986 15,986 (3) 18,546 18,546 (3) Total Debt $ 2,810,055 $ 2,554,155 $ 3,134,396 $ 3,498,794 (1) Interest rate is calculated as weighted average annualized. (2) Includes amortization of note discount, as applicable, totaling $16.3 million and $25.1 million as of September 30, 2022 and December 31, 2021, respectively. Outstanding balance is presented net of unamortized debt issuance costs. (3) Fair value is based on obtained broker quotes. These notes are 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 external 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. These notes are 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 external pricing services. (5) Fair value is based on a discounted cash flow method. These notes are classified as a Level III liability within the fair value hierarchy. (6) There is no outstanding balance as of September 30, 2022. These notes were transferred to a VIE consolidated by Athene during the three months ended March 31, 2022. |
Schedule of Credit Facilities | The following table represents the Company’s credit facilities as of September 30, 2022: Instrument/Facility Borrowing Date Maturity Date Administrative Agent Key terms AMH credit facility 1 November 23, 2020 November 23, 2025 Citibank, N.A. The commitment fee on the $750 million undrawn AMH credit facility as of September 30, 2022 was 0.09%. 1 Refer below for details regarding the AMH credit facility refinancing, which occurred during the fourth quarter of 2022. |
Schedule of Interest Expense | The following table presents the interest expense incurred related to the Company’s debt: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Total Interest Expense (1) $ 32,219 $ 34,820 $ 96,644 $ 104,433 (1) Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable. The following table presents the revenues earned in aggregate from Athene and Athora: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Revenues earned in aggregate from Athene and Athora, net (1) $ 341,888 $ 284,254 $ 959,261 $ 828,045 (1) Consisting of management fees, sub-advisory fees, and performance revenues from Athene and Athora, as applicable. |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
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, 2022 2021 2022 2021 Net income attributable to non-controlling interests in consolidated entities: Interest in management companies and a co-investment vehicle (1) $ 267 $ 1,866 $ 3,157 $ 4,464 Other consolidated entities 17,528 110,703 273,827 294,959 Net income attributable to non-controlling interests in consolidated entities $ 17,795 $ 112,569 $ 276,984 $ 299,423 Net income attributable to non-controlling interests in the Apollo Operating Group: Net income $ 85,352 $ 631,417 $ 1,551,194 $ 3,655,380 Net income attributable to non-controlling interests in consolidated entities (17,795) (112,569) (276,984) (299,423) Net income after non-controlling interests in consolidated entities 67,557 518,848 1,274,210 3,355,957 Adjustments: Income tax provision (2) 22,069 101,434 163,870 498,731 NYC UBT and foreign tax benefit (3) (19,083) (11,213) (36,414) (24,694) Net income in non-Apollo Operating Group entities 9,414 1,099 30,845 1,103 Series A Preferred share dividends (4,383) (4,382) (13,149) (13,148) Series B Preferred share dividends (4,781) (4,782) (14,344) (14,344) Total adjustments 3,236 82,156 130,808 447,648 Net income after adjustments 70,793 601,004 1,405,018 3,803,605 Weighted average ownership percentage of Apollo Operating Group 42.6 % 44.1 % 42.6 % 45.8 % Net income attributable to non-controlling interests in Apollo Operating Group $ 44,127 $ 260,526 $ 585,691 $ 1,761,018 Net income attributable to non-controlling interests $ 61,922 $ 373,095 $ 862,675 $ 2,060,441 Other comprehensive loss attributable to non-controlling interests (32,280) (10,082) (66,133) (20,275) Comprehensive income attributable to non-controlling interests $ 29,642 $ 363,013 $ 796,542 $ 2,040,166 (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 AAM and its subsidiaries 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. |
Activities Associated with Non-controlling Interests | The table below presents the activities associated with the redeemable non-controlling interests. For the Nine Months Ended September 30, 2022 2021 Balance at beginning of period $ 1,770,034 $ 782,702 Redemption of non-controlling interests (776,272) — Deconsolidation of SPAC (39,588) — Net issuances of redeemable non-controlling interests 10,544 907,590 Accretion of redeemable non-controlling interests 58,989 59,762 Balance at end of period $ 1,023,707 $ 1,750,054 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 funds (1) $ 484,498 $ 315,875 Due from employees and former employees 94,139 106,755 Due from portfolio companies 61,493 66,960 Due from parent 37,483 — Incentive fees receivable 10,074 4,236 Total Due from Related Parties $ 687,687 $ 493,826 Due to Related Parties: Due to Former Managing Partners and Contributing Partners (2) $ 906,157 $ 1,118,272 Due to parent 657,941 — Due to funds 116,915 104,130 Total Due to Related Parties $ 1,681,013 $ 1,222,402 (1) Includes $41.9 million and $47.8 million as of September 30, 2022 and December 31, 2021, respectively, related to a receivable from a fund in connection with the Company’s sale of a platform investment to such fund. The amount is payable to the Company over five years and is held at fair value. (2) Includes $394.4 million and $569.6 million as of September 30, 2022 and December 31, 2021, respectively, related to the purchase of limited partnership interests, payable in equal installments through December 31, 2024. |
Sub-Allocation Fees Schedule | The amended fee agreement provides for a monthly fee to be payable by Athene to the Company in arrears, with retroactive effect to the month beginning on January 1, 2022, in an amount equal to the following, to the extent not otherwise payable to the Company pursuant to any one or more investment management or sub-advisory agreements or arrangements: (i) The Company, through its consolidated subsidiary Apollo Insurance Solutions Group LP, or ISG, earns a base management fee of 0.225% per year on the aggregate book value of substantially all of the assets in substantially all of the accounts of or relating to Athene (collectively, the “Athene Accounts”) up to $103.4 billion (the “Backbook Value”) and 0.150% per year on all assets in excess of $103.4 billion (the “Incremental Value”), respectively; plus (ii) with respect to each asset in an Athene Account, subject to certain exceptions, that is managed by the Company and that belongs to a specified asset class tier (“core,” “core plus,” “yield,” and “high alpha”), a sub-allocation fee as follows: As of Sub-Allocation Fees: Core Assets (1) 0.065 % Core Plus Assets (2) 0.130 % Yield Assets (3) 0.375 % High Alpha Assets (4) 0.700 % Other Assets (5) — % (1) Core assets include public investment grade corporate bonds, municipal securities, agency residential or commercial mortgage backed securities and obligations of any governmental agency or government sponsored entity that is not expressly backed by the U.S. government. (2) Core plus assets include private investment grade corporate bonds, fixed rate first lien commercial mortgage loans and obligations issued or assumed by a financial institution (such an institution, a “financial issuer”) and determined by Apollo to be “Tier 2 Capital” under the Basel III recommendations developed by the Basel Committee on Banking Supervision (or any successor to such recommendations). (3) Yield assets include non-agency residential mortgage-backed securities, investment grade collateralized loan obligations, certain asset-backed securities, commercial mortgage-backed securities, emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial issuer, as rated preferred equity, residential mortgage loans, bank loans, investment grade infrastructure debt and certain floating rate commercial mortgage loans. (4) High alpha assets include subordinated commercial mortgage loans, below investment grade collateralized loan obligations, unrated preferred equity, debt obligations originated by MidCap, below investment grade infrastructure debt, certain loans originated directly by Apollo and agency mortgage derivatives. (5) Other Assets include cash, treasuries, equities and alternatives. With respect to equities and alternatives, Apollo earns performance revenues of 0% to 20%. |
Interest Income and Interest Expense | The following table presents the interest expense incurred related to the Company’s debt: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Total Interest Expense (1) $ 32,219 $ 34,820 $ 96,644 $ 104,433 (1) Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable. The following table presents the revenues earned in aggregate from Athene and Athora: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Revenues earned in aggregate from Athene and Athora, net (1) $ 341,888 $ 284,254 $ 959,261 $ 828,045 (1) Consisting of management fees, sub-advisory fees, and performance revenues from Athene and Athora, as applicable. |
Schedule of Financial Information of SPACs | The tables below present the financial information of these SPACs in aggregate: As of As of Assets: Cash and cash equivalents $ 579 $ 1,796 Restricted cash and cash equivalents 694,582 690,205 U.S. Treasury securities, at fair value 347,170 1,162,299 Other assets 926 2,627 Total Assets $ 1,043,257 $ 1,856,927 Liabilities, Redeemable non-controlling interests and Stockholders’ Equity Liabilities: Accounts payable and accrued expenses $ 3,250 $ 2,361 Due to related parties 8,300 20,146 Other liabilities 41,519 143,778 Total Liabilities 53,069 166,285 Redeemable non-controlling interests: Redeemable non-controlling interests 1,008,679 1,762,282 Stockholders’ Equity: Additional paid in capital (63,909) (98,369) Retained earnings 45,418 26,729 Total Stockholders’ Equity (18,491) (71,640) Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity $ 1,043,257 $ 1,856,927 For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Expenses: Interest expense $ 7 $ 3 $ 16 5 General, administrative and other 685 3,824 6,426 13,369 Total Expenses 692 3,827 6,442 13,374 Other Income: Net gains from investment activities 3,513 29,185 20,297 27,684 Interest income 4,949 131 6,710 392 Other income (loss), net (100) (146) (300) (370) Total Other Income 8,362 29,170 26,707 27,706 Income before income tax provision 7,670 25,343 20,265 14,332 Income tax provision (179) — (179) — Net Income Attributable to Apollo Asset Management, Inc. 7,491 25,343 20,086 14,332 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Fixed and Determinable Payments | As of September 30, 2022, fixed and determinable payments due in connection with these obligations were as follows: Remaining 2022 2023 - 2024 2025 - 2026 2027 and Thereafter Total Other long-term obligations $ 15,966 $ 17,403 $ 249 $ — $ 33,618 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data for Reportable Segments | The following tables present financial data for the Company’s reportable segments. For the Three Months Ended For the Nine Months Ended 2022 2021 2022 2021 Asset Management Management Fees $ 545,924 $ 472,483 $ 1,573,197 $ 1,395,200 Advisory and transaction fees, net 104,532 65,077 271,781 203,807 Fee-related performance fees 19,989 19,856 45,866 36,702 Fee related compensation (193,793) (160,689) (556,389) (476,663) Other operating expenses (112,005) (76,601) (318,716) (218,316) Fee Related Earnings (FRE) 364,647 320,126 1,015,739 940,730 Principal Investing Realized performance fees 92,993 608,130 371,044 1,183,640 Realized investment income 61,410 295,225 537,776 397,610 Principal investing compensation (87,580) (309,016) (398,566) (631,382) Other operating expenses (7,214) (12,014) (19,250) (34,149) Principal Investing Income (PII) 59,609 582,325 491,004 915,719 Adjusted Segment Income 424,256 902,451 1,506,743 1,856,449 Segment Assets: Asset Management $ 1,936,252 Principal Investing 8,379,698 Total Assets (1) $ 10,315,950 (1) Refer below for a reconciliation of total assets for Apollo’s total reportable segments to total consolidated assets. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Adjusted Segment Income: For the Three Months Ended For the Nine Months Ended 2022 2021 2022 2021 Income before income tax provision $ 107,421 $ 732,851 $ 1,715,064 $ 4,154,111 Equity-based profit sharing expense and other (1) 55,728 31,731 219,454 93,595 Equity-based compensation 45,183 19,538 138,584 55,187 Transaction-related charges (2) 8,028 (954) 5,928 27,028 Merger-related transaction and integration costs (3) 12,150 14,647 48,637 38,331 (Gains) losses from changes in tax receivable agreement liability — — 14,184 (1,941) Net income attributable to non-controlling interests in consolidated entities (17,795) (112,569) (276,984) (299,423) Unrealized performance fees 66,202 159,044 109,083 (1,411,205) Unrealized profit sharing expense (18,609) (40,991) (15,909) 646,142 Net interest expense 21,236 32,552 78,007 100,365 Unrealized principal investment income (loss) 127,488 218,816 137,784 (153,577) Unrealized net (gains) losses from investment activities and other 17,224 (152,214) (667,089) (1,392,164) Adjusted Segment Income $ 424,256 $ 902,451 $ 1,506,743 $ 1,856,449 (1) Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are required to be used by employees of Apollo to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under AGM’s Equity Plan. Equity-based profit sharing expense and other also includes performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense. (2) Transaction-related charges include contingent consideration, equity-based compensation charges and the amortization of intangible assets and certain other charges associated with acquisitions, and restructuring charges. (3) Merger-related transaction and integration costs includes advisory services, technology integration, equity-based compensation charges and other costs associated with the Mergers. |
Reconciliation of Assets from Segment to Consolidated | The following table presents the reconciliation of the Company’s total reportable segment assets to total assets: As of As of Total reportable segment assets $ 10,315,950 $ 13,573,400 Adjustments (1) 2,002,132 16,928,494 Total assets $ 12,318,082 $ 30,501,894 (1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments. |
ORGANIZATION (Details)
ORGANIZATION (Details) | 9 Months Ended | |
Jan. 01, 2022 vote | Sep. 30, 2022 investing_strategy segment | |
Entity Information [Line Items] | ||
Number of segments | segment | 2 | |
Number of investing strategies | investing_strategy | 3 | |
Number of votes | vote | 1 | |
Intermediate Holding Companies | ||
Entity Information [Line Items] | ||
Economic interest percentage | 57.40% | |
Apollo Global Management | ||
Entity Information [Line Items] | ||
Economic interest percentage | 42.60% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Initial Business Combination Or Redemption Of Public Shares, ASPG II Trust Agreement | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Restricted cash | $ 694.5 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - U.S. Treasury Securities, at Fair Value (Details) $ in Millions | Sep. 30, 2022 USD ($) |
U.S. Treasury securities, at fair value | Acropolis Infrastructure Acquisition Corp | |
Debt and Equity Securities, FV-NI [Line Items] | |
Restricted securities | $ 347.2 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Revenue (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Deferred revenue recognized | $ 109.7 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 401(k) Savings Plan (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Percent of eligible employee contributions | 50% |
Percent of the eligible employees’ compensation | 3% |
Service period | 3 years |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) | 2 Months Ended | 9 Months Ended | ||
May 03, 2022 USD ($) business_acquired | Sep. 30, 2022 USD ($) segment | Mar. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Goodwill [Line Items] | ||||
Number of segments | segment | 2 | |||
Goodwill impairment loss | $ 0 | |||
Goodwill | $ 263,744,000 | $ 116,958,000 | ||
Griffin Capital | ||||
Goodwill [Line Items] | ||||
Number of businesses acquired | business_acquired | 2 | |||
Goodwill | $ 133,600,000 | $ 13,100,000 |
GOODWILL - Apollo_s Goodwill by
GOODWILL - Apollo’s Goodwill by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 263,744 | $ 116,958 |
Asset Management | ||
Goodwill [Line Items] | ||
Goodwill | 231,562 | 84,776 |
Principal Investing | ||
Goodwill [Line Items] | ||
Goodwill | $ 32,182 | $ 32,182 |
INVESTMENTS - Apollo's Investme
INVESTMENTS - Apollo's Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Investments, at fair value | $ 1,131,409 | $ 5,588,992 |
Equity method investments | 1,085,035 | 1,345,750 |
Performance allocations | 2,502,446 | 2,731,733 |
U.S. Treasury securities, at fair value | 1,372,048 | 1,687,105 |
Total Investments | $ 6,090,938 | $ 11,353,580 |
INVESTMENTS - Summarized Financ
INVESTMENTS - Summarized Financial Information of Athene Holding (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Benefits and expenses | $ 579,573 | $ 648,907 | $ 1,978,091 | $ 2,417,438 |
Income before income tax provision | 107,421 | 732,851 | 1,715,064 | 4,154,111 |
Income tax expense (benefit) | 22,069 | 101,434 | 163,870 | 498,731 |
Net Income | 85,352 | 631,417 | 1,551,194 | 3,655,380 |
Less: Net income (loss) attributable to non-controlling interests | 61,922 | 373,095 | 862,675 | 2,060,441 |
Net Income Attributable to Apollo Asset Management, Inc. | 23,430 | 258,322 | 688,519 | 1,594,939 |
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders | 14,266 | 249,158 | 661,026 | 1,567,447 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 0 | 8,724,000 | (269,000) | 19,538,000 |
Benefits and expenses | 0 | 8,004,000 | 2,504,000 | 16,689,000 |
Income before income tax provision | 0 | 720,000 | (2,773,000) | 2,849,000 |
Income tax expense (benefit) | 0 | (50,000) | (407,000) | 196,000 |
Net Income | 0 | 770,000 | (2,366,000) | 2,653,000 |
Less: Net income (loss) attributable to non-controlling interests | 0 | 37,000 | (883,000) | (111,000) |
Net Income Attributable to Apollo Asset Management, Inc. | 0 | 733,000 | (1,483,000) | 2,764,000 |
Less: Preferred stock dividends | 0 | 35,000 | 35,000 | 106,000 |
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders | $ 0 | $ 698,000 | $ (1,518,000) | $ 2,658,000 |
INVESTMENTS - Summary of Net Ga
INVESTMENTS - Summary of Net Gains (Losses) from Investment Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Realized gains (losses) on sales of investments, net | $ (984) | $ (197) | $ 206,547 | $ 996 |
Net change in unrealized gains due to changes in fair value | (15,164) | 172,995 | 694,621 | 1,438,347 |
Net gains (losses) from investment activities | $ (16,148) | $ 172,798 | $ 901,168 | $ 1,439,343 |
INVESTMENTS - Performance Alloc
INVESTMENTS - Performance Allocations Rollforward (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Performance Allocation [Roll Forward] | |
Performance allocations beginning balance | $ 2,731,733 |
Change in fair value of funds | 314,800 |
Fund distributions to the Company | (544,087) |
Performance allocations ending balance | $ 2,502,446 |
PROFIT SHARING PAYABLE - Rollfo
PROFIT SHARING PAYABLE - Rollforward Summary of Profit Sharing (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Profit Sharing Payable Rollforward [Roll Forward] | |
Profit sharing payable, beginning balance | $ 1,444,652 |
Profit sharing expense | 366,812 |
Payments/other | (313,684) |
Profit sharing payable, ending balance | $ 1,497,780 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Instrument [Line Items] | |
Number of days trade is open with VIE | 60 days |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Net Gains from Investment Activities of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net gains from investment activities | $ 7,740 | $ 104,885 | $ 105,091 | $ 460,459 |
Net gains (losses) from debt | 0 | (4,210) | 10,138 | (15,737) |
Interest and other income | 13,971 | 162,815 | 218,596 | 525,573 |
Interest and other expenses | (10,324) | (121,035) | (6,366) | (569,843) |
Net gains from investment activities of consolidated variable interest entities | $ 11,387 | $ 142,455 | $ 327,459 | $ 400,452 |
VARIABLE INTEREST ENTITIES - Pr
VARIABLE INTEREST ENTITIES - Principal Provisions of Debt (Details) - Consolidated Variable Interest Entities - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 651,491 | $ 8,062,808 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 0 | $ 7,431,467 |
Weighted Average Interest Rate | 3.16% | |
Weighted Average Remaining Maturity in Years | 15 years 6 months | |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 0 | $ 613,192 |
Weighted Average Remaining Maturity in Years | 14 years 6 months | |
Subscription Lines | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 651,491 | $ 0 |
Weighted Average Interest Rate | 4.87% | |
Weighted Average Remaining Maturity in Years | 1 month 20 days | |
Secured Borrowings | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 0 | $ 18,149 |
Weighted Average Interest Rate | 2.33% | |
Weighted Average Remaining Maturity in Years | 4 months 24 days |
VARIABLE INTEREST ENTITIES - Va
VARIABLE INTEREST ENTITIES - Variable Interest Entities Which are Not Consolidated (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Apollo Exposure | $ 287,976 | $ 240,871 |
FAIR VALUE MEASUREMENTS OF FI_3
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Valuation of Financial Assets and Liabilities by the Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Assets | |||
Cash and cash equivalents | $ 1,118,305 | $ 917,183 | |
Restricted cash and cash equivalents | 696,712 | 707,885 | |
Investments | |||
Derivative assets | 48,697 | 7,436 | |
Total Assets | 5,510,033 | 24,156,753 | |
Liabilities | |||
Other liabilities of VIEs, at fair value | 1,518 | 47,961 | |
Derivative liabilities | 1,520 | ||
Total Liabilities | 106,552 | 8,152,648 | |
Cash and cash equivalents | 1,118,305 | 917,183 | $ 2,090,197 |
Restricted cash and cash equivalents | 696,712 | 707,885 | 1,052,782 |
U.S. Treasury securities, at fair value | 1,372,048 | 1,687,105 | |
Performance allocations | 2,502,446 | 2,731,733 | |
Sale of Investment | Due from/to credit funds | |||
Investments | |||
Due from related parties | 41,911 | 47,835 | |
VIE, Primary Beneficiary | |||
Assets | |||
Cash and cash equivalents | 84,132 | 463,266 | |
Investments | |||
Investments, at fair value | 1,016,819 | 14,737,051 | |
Investments of VIEs, at fair value | 14,737,051 | ||
Liabilities | |||
Debt of VIEs | 7,942,508 | ||
Other liabilities of VIEs, at fair value | 2,032 | 34,758 | |
Cash and cash equivalents | 84,132 | $ 672,619 | |
VIE, Primary Beneficiary | APSG I, APSGII and Acropolis | |||
Liabilities | |||
Cash and cash equivalents | 579 | 1,796 | |
Restricted cash and cash equivalents | 694,582 | 690,205 | |
U.S. Treasury securities, at fair value | 347,170 | 1,162,299 | |
U.S. Treasury securities, at fair value | |||
Assets | |||
U.S. Treasury securities | 1,372,048 | 1,687,105 | |
Investments, at fair value | |||
Investments | |||
Investments, at fair value | 1,131,409 | 4,548,048 | |
Investments of VIEs, at fair value and Other | |||
Investments | |||
Investments, at fair value | 1,040,944 | ||
Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary | |||
Investments | |||
Investments of VIEs, at fair value | 1,016,819 | ||
Total investments | |||
Investments | |||
Investments, at fair value | 5,588,992 | ||
Contingent Consideration Obligation | |||
Liabilities | |||
Contingent consideration obligations | 103,002 | 125,901 | |
Level I | |||
Assets | |||
Cash and cash equivalents | 1,118,305 | 917,183 | |
Restricted cash and cash equivalents | 696,712 | 707,885 | |
Investments | |||
Derivative assets | 0 | 0 | |
Total Assets | 3,435,443 | 8,378,212 | |
Liabilities | |||
Other liabilities of VIEs, at fair value | 1,518 | 47,961 | |
Derivative liabilities | 0 | ||
Total Liabilities | 1,518 | 47,961 | |
Level I | Sale of Investment | Due from/to credit funds | |||
Investments | |||
Due from related parties | 0 | 0 | |
Level I | VIE, Primary Beneficiary | |||
Assets | |||
Cash and cash equivalents | 84,132 | 463,266 | |
Investments | |||
Investments of VIEs, at fair value | 6,232 | ||
Liabilities | |||
Debt of VIEs | 0 | ||
Other liabilities of VIEs, at fair value | 0 | 0 | |
Level I | U.S. Treasury securities, at fair value | |||
Assets | |||
U.S. Treasury securities | 1,372,048 | 1,687,105 | |
Level I | Investments, at fair value | |||
Investments | |||
Investments, at fair value | 147,061 | 4,548,048 | |
Level I | Investments of VIEs, at fair value and Other | |||
Investments | |||
Investments, at fair value | 48,493 | ||
Level I | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary | |||
Investments | |||
Investments of VIEs, at fair value | 17,185 | ||
Level I | Total investments | |||
Investments | |||
Investments, at fair value | 4,596,541 | ||
Level I | Contingent Consideration Obligation | |||
Liabilities | |||
Contingent consideration obligations | 0 | 0 | |
Level II | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
Investments | |||
Derivative assets | 40,806 | 7,436 | |
Total Assets | 77,833 | 1,109,124 | |
Liabilities | |||
Other liabilities of VIEs, at fair value | 0 | 0 | |
Derivative liabilities | 1,520 | ||
Total Liabilities | 2,032 | 450,660 | |
Level II | Sale of Investment | Due from/to credit funds | |||
Investments | |||
Due from related parties | 0 | 0 | |
Level II | VIE, Primary Beneficiary | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investments | |||
Investments of VIEs, at fair value | 1,055,421 | ||
Liabilities | |||
Debt of VIEs | 446,029 | ||
Other liabilities of VIEs, at fair value | 2,032 | 3,111 | |
Level II | U.S. Treasury securities, at fair value | |||
Assets | |||
U.S. Treasury securities | 0 | 0 | |
Level II | Investments, at fair value | |||
Investments | |||
Investments, at fair value | 35,615 | 0 | |
Level II | Investments of VIEs, at fair value and Other | |||
Investments | |||
Investments, at fair value | 46,267 | ||
Level II | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary | |||
Investments | |||
Investments of VIEs, at fair value | 1,412 | ||
Level II | Total investments | |||
Investments | |||
Investments, at fair value | 46,267 | ||
Level II | Contingent Consideration Obligation | |||
Liabilities | |||
Contingent consideration obligations | 0 | 0 | |
Level III | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
Investments | |||
Derivative assets | 7,891 | 0 | |
Total Assets | 1,924,940 | 14,181,822 | |
Liabilities | |||
Other liabilities of VIEs, at fair value | 0 | 0 | |
Derivative liabilities | 0 | ||
Total Liabilities | 103,002 | 7,653,470 | |
Level III | Sale of Investment | Due from/to credit funds | |||
Investments | |||
Due from related parties | 41,911 | 47,835 | |
Level III | VIE, Primary Beneficiary | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investments | |||
Investments of VIEs, at fair value | 13,187,803 | ||
Liabilities | |||
Debt of VIEs | 7,496,479 | ||
Other liabilities of VIEs, at fair value | 0 | 31,090 | |
Level III | U.S. Treasury securities, at fair value | |||
Assets | |||
U.S. Treasury securities | 0 | 0 | |
Level III | Investments, at fair value | |||
Investments | |||
Investments, at fair value | 939,742 | 0 | |
Level III | Investments of VIEs, at fair value and Other | |||
Investments | |||
Investments, at fair value | 946,184 | ||
Liabilities | |||
Performance allocations | 178,100 | 175,800 | |
Level III | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary | |||
Investments | |||
Investments of VIEs, at fair value | 935,396 | ||
Level III | Total investments | |||
Investments | |||
Investments, at fair value | 946,184 | ||
Level III | Contingent Consideration Obligation | |||
Liabilities | |||
Contingent consideration obligations | 103,002 | 125,901 | |
NAV | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
U.S. Treasury securities | 0 | ||
Investments | |||
Derivative assets | 0 | 0 | |
Total Assets | 71,817 | 487,595 | |
Liabilities | |||
Other liabilities of VIEs, at fair value | 0 | 0 | |
Derivative liabilities | 0 | ||
Total Liabilities | 0 | 557 | |
NAV | Sale of Investment | Due from/to credit funds | |||
Investments | |||
Due from related parties | 0 | 0 | |
NAV | VIE, Primary Beneficiary | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investments | |||
Investments of VIEs, at fair value | 487,595 | ||
Liabilities | |||
Debt of VIEs | 0 | ||
Other liabilities of VIEs, at fair value | 0 | 557 | |
NAV | U.S. Treasury securities, at fair value | |||
Assets | |||
U.S. Treasury securities | 0 | ||
NAV | Investments, at fair value | |||
Investments | |||
Investments, at fair value | 8,991 | 0 | |
NAV | Investments of VIEs, at fair value and Other | |||
Investments | |||
Investments, at fair value | 0 | ||
NAV | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary | |||
Investments | |||
Investments of VIEs, at fair value | 62,826 | ||
NAV | Total investments | |||
Investments | |||
Investments, at fair value | 0 | ||
NAV | Contingent Consideration Obligation | |||
Liabilities | |||
Contingent consideration obligations | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS OF FI_4
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Changes in Fair Value in Financial Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | $ 1,923,044 | $ 12,267,739 | $ 14,133,987 | $ 11,332,752 |
Net transfer in (out) due to consolidation (deconsolidation) | (14,168,526) | |||
Transfer out due to consolidation | (924) | (230,641) | ||
Purchases | 983,241 | 489,192 | 4,560,125 | 2,171,615 |
Sale of investments/distributions | (980,399) | (344,659) | (2,823,613) | (1,153,827) |
Net realized gains (losses) | 50,357 | 33,104 | 68,548 | 47,147 |
Changes in net unrealized gains (losses) | (52,135) | 98,978 | 183,334 | 460,241 |
Cumulative translation adjustment | (41,079) | (12,039) | (98,699) | (33,927) |
Transfer into Level III | 31,444 | 30,807 | 42,035 | |
Transfer out of Level III | (197,377) | (2,934) | (269,937) | |
Balance, End of Period | 1,883,029 | 12,365,458 | 1,883,029 | 12,365,458 |
Consolidated Variable Interest Entities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 843,266 | 11,877,952 | 13,187,803 | 10,962,980 |
Net transfer in (out) due to consolidation (deconsolidation) | (14,190,236) | |||
Transfer out due to consolidation | (924) | (230,641) | ||
Purchases | 973,126 | 284,605 | 4,444,308 | 1,967,028 |
Sale of investments/distributions | (863,413) | (344,659) | (2,702,495) | (1,150,592) |
Net realized gains (losses) | (1,296) | 16,616 | 19,861 | 29,591 |
Changes in net unrealized gains (losses) | (16,287) | 79,212 | 160,094 | 411,359 |
Cumulative translation adjustment | 0 | (10,166) | (10,808) | (24,414) |
Transfer into Level III | 31,444 | 29,803 | 41,329 | |
Transfer out of Level III | (194,955) | (2,934) | (267,515) | |
Balance, End of Period | 935,396 | 11,739,125 | 935,396 | 11,739,125 |
Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 11,894 | 19,766 | 72,254 | 48,882 |
Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date | Consolidated Variable Interest Entities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 0 | 0 | 0 | 0 |
Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | (2,169) | 79,514 | 6,613 | 278,471 |
Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date | Consolidated Variable Interest Entities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | (2,169) | 79,514 | 6,613 | 278,471 |
Investments and Derivative Assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 1,079,778 | 946,184 | ||
Net transfer in (out) due to consolidation (deconsolidation) | 21,710 | |||
Purchases | 10,115 | 115,817 | ||
Sale of investments/distributions | (116,986) | (121,118) | ||
Net realized gains (losses) | 51,653 | 48,687 | ||
Changes in net unrealized gains (losses) | (35,848) | 23,240 | ||
Cumulative translation adjustment | (41,079) | (87,891) | ||
Transfer into Level III | 1,004 | |||
Transfer out of Level III | 0 | |||
Balance, End of Period | 947,633 | 947,633 | ||
Investments and Derivative Assets | Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 11,894 | 72,254 | ||
Investments and Derivative Assets | Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | $ 0 | $ 0 | ||
Investments of VIEs, at fair value and Other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 389,787 | 369,772 | ||
Transfer out due to consolidation | 0 | 0 | ||
Purchases | 204,587 | 204,587 | ||
Sale of investments/distributions | 0 | (3,235) | ||
Net realized gains (losses) | 16,488 | 17,556 | ||
Changes in net unrealized gains (losses) | 19,766 | 48,882 | ||
Cumulative translation adjustment | (1,873) | (9,513) | ||
Transfer into Level III | 0 | 706 | ||
Transfer out of Level III | (2,422) | (2,422) | ||
Balance, End of Period | 626,333 | 626,333 | ||
Investments of VIEs, at fair value and Other | Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | 19,766 | 48,882 | ||
Investments of VIEs, at fair value and Other | Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized gains (losses) | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS OF FI_5
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Changes in Fair Value in Financial Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | $ 104,202 | $ 7,335,158 | $ 7,653,470 | $ 7,220,408 |
Transfer out due to deconsolidation | (8,626,153) | |||
Issuances | 15,980 | 1,645,025 | 327,388 | |
Payments | (37,005) | (532,032) | (322,023) | |
Net realized (gains) losses | (1,681) | (480) | 9,049 | |
Changes in net unrealized (gains) losses | (1,200) | 11,957 | (26,008) | 103,413 |
Cumulative translation adjustment | (10,293) | (10,820) | (24,316) | |
Transfer into Level III | 256 | 453 | ||
Balance, End of Period | 103,002 | 7,314,372 | 103,002 | 7,314,372 |
Debt And Other Liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized (gains) losses | 4,672 | 93,743 | ||
Contingent Consideration Obligations | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 104,202 | 128,984 | 125,901 | 119,788 |
Transfer out due to deconsolidation | 0 | |||
Issuances | 0 | 0 | 0 | |
Payments | (7,495) | (13,259) | (20,609) | |
Net realized (gains) losses | 0 | 0 | 0 | |
Changes in net unrealized (gains) losses | (1,200) | (1,902) | (9,640) | 20,408 |
Cumulative translation adjustment | 0 | 0 | 0 | |
Transfer into Level III | 0 | 0 | ||
Balance, End of Period | 103,002 | 119,587 | 103,002 | 119,587 |
Contingent Consideration Obligations | Debt And Other Liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized (gains) losses | 0 | 0 | ||
Debt and Other Liabilities of Consolidated VIEs | Consolidated Variable Interest Entities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, Beginning of Period | 0 | 7,206,174 | 7,527,569 | 7,100,620 |
Transfer out due to deconsolidation | (8,626,153) | |||
Issuances | 15,980 | 1,645,025 | 327,388 | |
Payments | (29,510) | (518,773) | (301,414) | |
Net realized (gains) losses | (1,681) | (480) | 9,049 | |
Changes in net unrealized (gains) losses | 0 | 13,859 | (16,368) | 83,005 |
Cumulative translation adjustment | (10,293) | (10,820) | (24,316) | |
Transfer into Level III | 256 | 453 | ||
Balance, End of Period | $ 0 | 7,194,785 | $ 0 | 7,194,785 |
Debt and Other Liabilities of Consolidated VIEs | Consolidated Variable Interest Entities | Debt And Other Liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in net unrealized (gains) losses | $ 4,672 | $ 93,743 |
FAIR VALUE MEASUREMENTS OF FI_6
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Quantitative Inputs and Assumptions used for Financial Assets and Liabilities Categories (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Financial Assets | ||||||
Due from related parties | $ 687,687 | $ 493,826 | ||||
Derivative assets | 48,697 | 7,436 | ||||
Assets | 1,883,029 | $ 1,923,044 | 14,133,987 | $ 12,365,458 | $ 12,267,739 | $ 11,332,752 |
Financial Liabilities | ||||||
Liabilities | 103,002 | 104,202 | 7,653,470 | 7,314,372 | 7,335,158 | 7,220,408 |
Consolidated Variable Interest Entities | ||||||
Financial Assets | ||||||
Investments, at fair value | 1,016,819 | 14,737,051 | ||||
Assets | 935,396 | 843,266 | 13,187,803 | 11,739,125 | 11,877,952 | 10,962,980 |
Consolidated Variable Interest Entities | Secured loans | ||||||
Financial Liabilities | ||||||
Liabilities | 4,311,348 | |||||
Consolidated Variable Interest Entities | Subordinated notes | ||||||
Financial Liabilities | ||||||
Liabilities | 3,164,491 | |||||
Consolidated Variable Interest Entities | Participating equity | ||||||
Financial Liabilities | ||||||
Liabilities | 20,640 | |||||
Consolidated Variable Interest Entities | Other liabilities | ||||||
Financial Liabilities | ||||||
Liabilities | 31,090 | |||||
Debt and Other Liabilities of Consolidated VIEs | Consolidated Variable Interest Entities | ||||||
Financial Liabilities | ||||||
Liabilities | 0 | $ 0 | 7,527,569 | $ 7,194,785 | $ 7,206,174 | $ 7,100,620 |
Discounted cash flow | Contingent Consideration Obligation | ||||||
Financial Liabilities | ||||||
Liabilities | 103,002 | 125,901 | ||||
Level III | ||||||
Financial Assets | ||||||
Derivative assets | 7,891 | 0 | ||||
Assets | 1,924,940 | 14,181,822 | ||||
Financial Liabilities | ||||||
Liabilities | 103,002 | 7,653,470 | ||||
Level III | Consolidated Variable Interest Entities | ||||||
Financial Assets | ||||||
Equity securities | 411,320 | 4,144,661 | ||||
Level III | Consolidated Variable Interest Entities | Bank loans | ||||||
Financial Assets | ||||||
Assets | 491,893 | 4,569,873 | ||||
Level III | Consolidated Variable Interest Entities | Profit participating notes | ||||||
Financial Assets | ||||||
Assets | 2,849,150 | |||||
Level III | Consolidated Variable Interest Entities | Real Assets | ||||||
Financial Assets | ||||||
Assets | 511,648 | |||||
Level III | Consolidated Variable Interest Entities | Bonds | ||||||
Financial Assets | ||||||
Assets | 32,035 | 50,885 | ||||
Level III | Consolidated Variable Interest Entities | Warrants | ||||||
Financial Assets | ||||||
Assets | 148 | |||||
Level III | Consolidated Variable Interest Entities | Other equity investments | ||||||
Financial Assets | ||||||
Assets | 1,061,586 | |||||
Level III | Embedded value | ||||||
Financial Assets | ||||||
Investments, at fair value | 512,207 | |||||
Level III | Embedded value | Other investments | ||||||
Financial Assets | ||||||
Investments, at fair value | 516,221 | |||||
Level III | Discounted cash flow | ||||||
Financial Assets | ||||||
Investments, at fair value | 121,666 | |||||
Level III | Discounted cash flow | Other investments | ||||||
Financial Assets | ||||||
Investments, at fair value | 169,625 | |||||
Level III | Adjusted transaction value | ||||||
Financial Assets | ||||||
Investments, at fair value | 305,869 | |||||
Level III | Adjusted transaction value | Other investments | ||||||
Financial Assets | ||||||
Investments, at fair value | 260,338 | |||||
Level III | Option model | ||||||
Financial Assets | ||||||
Derivative assets | $ 7,891 | |||||
Level III | Discount rate | Consolidated Variable Interest Entities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 13.9 | |||||
Level III | Discount rate | Consolidated Variable Interest Entities | Bonds | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bonds, measurement input | 7.9 | |||||
Level III | Discount rate | Consolidated Variable Interest Entities | Warrants | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Warrants, measurement input | 0.154 | |||||
Level III | Discount rate | Discounted cash flow | ||||||
Financial Assets | ||||||
Due from related parties | $ 41,911 | $ 47,835 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Due from related parties | 15% | 16% | ||||
Level III | Discount rate | Discounted cash flow | Contingent Consideration Obligation | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Contingent consideration obligation, measurement input | 0.190 | |||||
Level III | Discount rate | Discounted cash flow | Minimum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Investments, measurement input | 0.089 | |||||
Level III | Discount rate | Discounted cash flow | Minimum | Other investments | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Other investments, measurement input | 14% | |||||
Level III | Discount rate | Discounted cash flow | Minimum | Bank loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bank loans, measurement input | 0.071 | |||||
Level III | Discount rate | Discounted cash flow | Maximum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Investments, measurement input | 0.528 | |||||
Level III | Discount rate | Discounted cash flow | Maximum | Other investments | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Other investments, measurement input | 52.80% | |||||
Level III | Discount rate | Discounted cash flow | Maximum | Bank loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bank loans, measurement input | 0.327 | |||||
Level III | Discount rate | Discounted cash flow | Weighted Average | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Investments, measurement input | 0.294 | |||||
Due from related parties | 15% | 16% | ||||
Level III | Discount rate | Discounted cash flow | Weighted Average | Other investments | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Other investments, measurement input | 26.40% | |||||
Level III | Discount rate | Discounted cash flow | Weighted Average | Contingent Consideration Obligation | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Contingent consideration obligation, measurement input | 0.190 | 0.185 | ||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Participating equity | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.150 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 0.030 | |||||
Other equity investments, measurement input | 0.118 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Bank loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bank loans, measurement input | 0.018 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Profit participating notes | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Profit participating notes, measurement input | 0.087 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.050 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Bonds | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bonds, measurement input | 0.040 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Secured loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.014 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Subordinated notes | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.045 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Other liabilities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.037 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 0.190 | |||||
Other equity investments, measurement input | 0.125 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Bank loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bank loans, measurement input | 0.156 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Profit participating notes | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Profit participating notes, measurement input | 0.125 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.125 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Bonds | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bonds, measurement input | 0.070 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Secured loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.100 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Subordinated notes | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.119 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Other liabilities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.093 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 0.139 | 0.104 | ||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Bank loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bank loans, measurement input | 0.076 | 0.043 | ||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Profit participating notes | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Profit participating notes, measurement input | 0.124 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.073 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Bonds | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Bonds, measurement input | 0.079 | 0.061 | ||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Warrants | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Warrants, measurement input | 0.154 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Other equity investments | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Other equity investments, measurement input | 0.121 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Secured loans | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.028 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Subordinated notes | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.058 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Participating equity | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.150 | |||||
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Other liabilities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Long-term debt, measurement input | 0.063 | |||||
Level III | Discount rate | Dividend discount model | Consolidated Variable Interest Entities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 13.7 | |||||
Level III | Discount rate | Dividend discount model | Consolidated Variable Interest Entities | Weighted Average | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 0.137 | |||||
Level III | Volatility rate | Option model | Minimum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Derivative assets, measurement input | 0.388 | |||||
Level III | Volatility rate | Option model | Maximum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Derivative assets, measurement input | 0.400 | |||||
Level III | Volatility rate | Option model | Weighted Average | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Derivative assets, measurement input | 0.397 | |||||
Level III | NTAV multiple | Market comparable companies | Consolidated Variable Interest Entities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 1.25 | |||||
Level III | NTAV multiple | Market comparable companies | Consolidated Variable Interest Entities | Weighted Average | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 1.25 | |||||
Level III | Purchase multiple | Adjusted transaction value | Consolidated Variable Interest Entities | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 1.25 | |||||
Level III | Purchase multiple | Adjusted transaction value | Consolidated Variable Interest Entities | Weighted Average | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Equity securities, measurement input | 1.25 | |||||
Level III | Capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.040 | |||||
Level III | Capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.058 | |||||
Level III | Capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.053 | |||||
Level III | Capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Minimum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.055 | |||||
Level III | Capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Maximum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.085 | |||||
Level III | Capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Weighted Average | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.062 | |||||
Level III | Terminal capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.083 | |||||
Level III | Terminal capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.083 | |||||
Level III | Terminal capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Minimum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.060 | |||||
Level III | Terminal capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Maximum | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.12 | |||||
Level III | Terminal capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Weighted Average | Real Assets | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Real estate, measurement input | 0.069 |
FAIR VALUE MEASUREMENTS OF FI_7
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Narrative (Details) | Dec. 31, 2021 $ / shares |
Investments, at fair value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Market price (in USD per share) | $ 83.33 |
OTHER ASSETS - Schedule of Othe
OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fixed assets | $ 403,095 | $ 256,252 |
Less: Accumulated depreciation and amortization | (148,699) | (130,072) |
Fixed assets, net | 254,396 | 126,180 |
Deferred equity-based compensation | 240,759 | 282,900 |
Intangible assets, net | 185,146 | 14,846 |
Commitment asset | 154,563 | 0 |
Prepaid expenses | 60,486 | 57,765 |
Tax receivables | 55,040 | 30,334 |
Other | 134,031 | 73,876 |
Total Other Assets | 1,084,421 | 585,901 |
Other liabilities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of grants | $ 181,100 | $ 210,600 |
OTHER ASSETS - Narrative (Detai
OTHER ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Depreciation | $ 8.3 | $ 4.8 | $ 22.2 | $ 13.1 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 18,002 | $ 10,916 | $ 51,283 | $ 33,930 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating cash flows for operating leases | $ 14,285 | $ 10,971 | $ 32,851 | $ 23,465 |
LEASES - Lease Payments by Matu
LEASES - Lease Payments by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Lease Payments | ||
Remaining 2022 | $ 15,523 | |
2023 | 67,832 | |
2024 | 67,981 | |
2025 | 67,244 | |
2026 | 62,739 | |
Thereafter | 511,882 | |
Total lease payments | 793,201 | |
Less imputed interest | (124,120) | |
Present value of lease payments | $ 669,081 | $ 505,206 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Lease not yet commenced, amount | $ 127.3 |
LEASES - Supplemental Informati
LEASES - Supplemental Information Related to Lease (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 12 years 6 months | 13 years 3 months 18 days |
Weighted average discount rate | 2.70% | 2.90% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 22,069,000 | $ 101,434,000 | $ 163,870,000 | $ 498,731,000 |
Effective tax rate | 20.50% | 13.80% | 9.60% | 12% |
Unrecognized tax benefits | $ 15,700,000 | $ 15,700,000 | ||
Unremitted foreign earnings | $ 0 | $ 0 | ||
Period of recognition for tax intangibles | 15 years |
INCOME TAXES - Impact of Exchan
INCOME TAXES - Impact of Exchange of AOG Units (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Income Tax Contingency [Line Items] | |
Increase in Tax Receivable Agreement Liability | $ 243,200 |
Class A Common Stock | |
Income Tax Contingency [Line Items] | |
Increase (Decrease) in Deferred Tax Asset for Conversion of Convertible Units | 292,844 |
Increase in Tax Receivable Agreement Liability | 243,157 |
Increase to Additional Paid In Capital | $ 49,687 |
DEBT - Summary of Debt (Details
DEBT - Summary of Debt (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 2,810,055,000 | $ 3,134,396,000 |
Fair Value | 2,554,155,000 | 3,498,794,000 |
Debt issuance costs | 16,300,000 | 25,100,000 |
Senior Notes | 4.00% 2024 Senior Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 498,959,000 | 498,469,000 |
Fair Value | $ 486,201,000 | $ 530,052,000 |
Interest Rate | 4% | 4% |
Senior Notes | 4.40% 2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 498,114,000 | $ 497,730,000 |
Fair Value | $ 474,335,000 | $ 553,055,000 |
Interest Rate | 4.40% | 4.40% |
Senior Notes | 4.87% 2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 674,809,000 | $ 674,786,000 |
Fair Value | $ 629,825,000 | $ 777,703,000 |
Interest Rate | 4.87% | 4.87% |
Senior Notes | 2.65% 2030 Senior Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 495,375,000 | $ 494,928,000 |
Fair Value | $ 395,079,000 | $ 506,094,000 |
Interest Rate | 2.65% | 2.65% |
Senior Notes | 5.00% 2048 Senior Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 296,899,000 | $ 296,757,000 |
Fair Value | $ 263,572,000 | $ 397,191,000 |
Interest Rate | 5% | 5% |
Senior Secured Notes | 4.77% 2039 Senior Secured Guaranteed Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 0 | $ 317,985,000 |
Fair Value | $ 0 | $ 369,041,000 |
Interest Rate | 4.77% | 4.77% |
Secured debt | $ 0 | |
Subordinated notes | 4.95% 2050 Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 296,714,000 | $ 296,675,000 |
Fair Value | $ 256,913,000 | $ 308,687,000 |
Interest Rate | 4.95% | 4.95% |
AMI Term Facility | 1.70% Secured Borrowing II | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 16,663,000 | $ 19,334,000 |
Fair Value | $ 15,708,000 | $ 19,239,000 |
Interest Rate | 1.70% | 1.70% |
AMI Term Facility | 1.30% 2016 AMI Term Facility I | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 16,536,000 | $ 19,186,000 |
Fair Value | $ 16,536,000 | $ 19,186,000 |
Interest Rate | 1.30% | 1.30% |
AMI Term Facility | 1.40% 2016 AMI Term Facility II | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 15,986,000 | $ 18,546,000 |
Fair Value | $ 15,986,000 | $ 18,546,000 |
Interest Rate | 1.40% | 1.40% |
DEBT - Credit Facilities (Detai
DEBT - Credit Facilities (Details) - Subscription Lines - AMH credit facility1 - USD ($) | 9 Months Ended | ||
Oct. 12, 2022 | Sep. 30, 2022 | Nov. 23, 2020 | |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 750,000,000 | ||
Commitment fee (as a percent) | 0.09% | ||
Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Commitment fee (as a percent) | 0.08% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - Subscription Lines - AMH credit facility1 | 9 Months Ended | |||
Oct. 12, 2022 USD ($) | Sep. 30, 2022 USD ($) | Nov. 08, 2022 USD ($) | Nov. 23, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||
Incremental facilities | $ 250,000,000 | |||
Leverage ratio | 4 | |||
Maximum borrowing capacity | $ 750,000,000 | |||
Commitment fee (as a percent) | 0.09% | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Incremental facilities | $ 250,000,000 | |||
Leverage ratio | 4 | |||
Outstanding amount | $ 0 | |||
Maximum borrowing capacity | $ 1,000,000,000 | |||
Line of credit facility, covenant compliance amount | $ 150,000,000,000 | |||
Commitment fee (as a percent) | 0.08% | |||
Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.875% |
DEBT - Interest Expense (Detail
DEBT - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Total Interest Expense | $ 32,219 | $ 34,820 | $ 96,644 | $ 104,433 |
EQUITY-BASED COMPENSATION - Nar
EQUITY-BASED COMPENSATION - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 104.2 | $ 56.2 | $ 372.9 | $ 165.7 | |
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized equity-based compensation expense | 706.7 | $ 706.7 | |||
Granted (in shares) | 3.6 | 2.3 | |||
Fair value of grants | $ 219.8 | $ 117.3 | |||
RSUs | Certain Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 2.9 | 2.1 | |||
Fair value of grants | $ 167.4 | $ 97.6 | |||
RSUs | President | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 6 | ||||
RSUs | Weighted Average | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized equity-based compensation expense, period of recognition | 2 years 10 months 24 days | ||||
RSUs | Plan Grants | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
RSUs | Plan Grants | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 6 years | ||||
Service-based awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | 49.3 | 24.3 | $ 155.5 | 66.5 | |
Service-based awards | President | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | 13.9 | 41.7 | |||
Award requisite service period | 5 years | ||||
Performance-based awards | Certain Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | 39.1 | 21.1 | 163.1 | 65 | |
Performance-based awards | President | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | 5.9 | 17.6 | |||
Granted (in shares) | 2 | ||||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 13.2 | $ 8.3 | $ 46.1 | $ 19.2 | |
Granted (in shares) | 0.5 | 0.6 | |||
Fair value of grants | $ 33.5 | $ 36.4 |
EQUITY - Preferred Stock Issuan
EQUITY - Preferred Stock Issuance, Narrative (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Preferred Stock | |||
Class of Stock [Line Items] | |||
Increase to distribution rate (as a percent) | 5% | ||
Preferred Stock | Equity, Redemption, Period Two | |||
Class of Stock [Line Items] | |||
Redemption price (in USD per share) | $ 25 | $ 25 | |
Preferred Stock | Equity, Redemption, Period One | |||
Class of Stock [Line Items] | |||
Redemption price (in USD per share) | $ 25.25 | $ 25.25 | |
Required days notice | 30 days | ||
Number of days within occurrence | 60 days | ||
6.375% Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 11,000,000 | 11,000,000 | 11,000,000 |
Preferred stock, shares outstanding (in shares) | 11,000,000 | 11,000,000 | 11,000,000 |
Dividends declared per share (in USD per share) | $ 0.398438 | ||
6.375% Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 12,000,000 | 12,000,000 | 12,000,000 |
Preferred stock, shares outstanding (in shares) | 12,000,000 | 12,000,000 | 12,000,000 |
Dividends declared per share (in USD per share) | $ 0.398438 | ||
6.375% Series B Preferred Stock | Equity, Redemption, Period One | |||
Class of Stock [Line Items] | |||
Redemption price (in USD per share) | $ 25.50 | $ 25.50 | |
Required days notice | 30 days | ||
Number of days within occurrence | 60 days |
EQUITY - Interests in Consolida
EQUITY - Interests in Consolidated Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income attributable to non-controlling interests in consolidated entities: | ||||
Net income attributable to non-controlling interests | $ 61,922 | $ 373,095 | $ 862,675 | $ 2,060,441 |
Net income attributable to non-controlling interests in the Apollo Operating Group: | ||||
Net Income | 85,352 | 631,417 | 1,551,194 | 3,655,380 |
Net income attributable to non-controlling interests in consolidated entities | (61,922) | (373,095) | (862,675) | (2,060,441) |
Net Income Attributable to Apollo Asset Management, Inc. | 23,430 | 258,322 | 688,519 | 1,594,939 |
Adjustments: | ||||
Income tax provision | 22,069 | 101,434 | 163,870 | 498,731 |
NYC UBT and foreign tax benefit | (19,083) | (11,213) | (36,414) | (24,694) |
Net income in non-Apollo Operating Group entities | (23,430) | (258,322) | (688,519) | (1,594,939) |
Total adjustments | 3,236 | 82,156 | 130,808 | 447,648 |
Other comprehensive loss attributable to non-controlling interests | (32,280) | (10,082) | (66,133) | (20,275) |
Comprehensive income attributable to non-controlling interests | 29,642 | 363,013 | 796,542 | 2,040,166 |
Series A Preferred Stock | ||||
Adjustments: | ||||
Preferred Stock Dividends | (4,383) | (4,382) | (13,149) | (13,148) |
Series B Preferred Stock | ||||
Adjustments: | ||||
Preferred Stock Dividends | (4,781) | (4,782) | (14,344) | (14,344) |
Other consolidated entities | ||||
Net income attributable to non-controlling interests in consolidated entities: | ||||
Net income attributable to non-controlling interests | 17,528 | 110,703 | 273,827 | 294,959 |
Net income attributable to non-controlling interests in the Apollo Operating Group: | ||||
Net income attributable to non-controlling interests in consolidated entities | (17,528) | (110,703) | (273,827) | (294,959) |
Consolidated entities | ||||
Net income attributable to non-controlling interests in consolidated entities: | ||||
Net income attributable to non-controlling interests | 17,795 | 112,569 | 276,984 | 299,423 |
Net income attributable to non-controlling interests in the Apollo Operating Group: | ||||
Net income attributable to non-controlling interests in consolidated entities | (17,795) | (112,569) | (276,984) | (299,423) |
Net Income Attributable to Apollo Asset Management, Inc. | 67,557 | 518,848 | 1,274,210 | 3,355,957 |
Adjustments: | ||||
Net income in non-Apollo Operating Group entities | (67,557) | (518,848) | (1,274,210) | (3,355,957) |
Net income after adjustments | 70,793 | 601,004 | 1,405,018 | 3,803,605 |
Interest in management companies and a co-investment vehicle | ||||
Net income attributable to non-controlling interests in consolidated entities: | ||||
Net income attributable to non-controlling interests | 267 | 1,866 | 3,157 | 4,464 |
Net income attributable to non-controlling interests in the Apollo Operating Group: | ||||
Net income attributable to non-controlling interests in consolidated entities | (267) | (1,866) | (3,157) | (4,464) |
Apollo Operating Group | ||||
Net income attributable to non-controlling interests in consolidated entities: | ||||
Net income attributable to non-controlling interests | 44,127 | 260,526 | 585,691 | 1,761,018 |
Net income attributable to non-controlling interests in the Apollo Operating Group: | ||||
Net income attributable to non-controlling interests in consolidated entities | (44,127) | (260,526) | (585,691) | (1,761,018) |
Net Income Attributable to Apollo Asset Management, Inc. | (9,414) | (1,099) | (30,845) | (1,103) |
Adjustments: | ||||
Net income in non-Apollo Operating Group entities | $ 9,414 | $ 1,099 | $ 30,845 | $ 1,103 |
Weighted average ownership percentage of Apollo Operating Group | 42.60% | 44.10% | 42.60% | 45.80% |
EQUITY - Redeemable Non-Control
EQUITY - Redeemable Non-Controlling Interests (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Redeemable Non-Controlling Interests [Roll Forward] | ||
Balance at beginning of period | $ 1,770,034 | $ 782,702 |
Redemption of non-controlling interests | (776,272) | 0 |
Deconsolidation of SPAC | (39,588) | 0 |
Net issuances of redeemable non-controlling interests | 10,544 | 907,590 |
Accretion of redeemable non-controlling interests | 58,989 | 59,762 |
Balance at end of period | $ 1,023,707 | $ 1,750,054 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due from and Due to Affiliates (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Due from Related Parties: | ||
Total Due from Related Parties | $ 687,687 | $ 493,826 |
Due to Related Parties: | ||
Total Due to Related Parties | 1,681,013 | 1,222,402 |
Due from employees and former employees | ||
Due from Related Parties: | ||
Total Due from Related Parties | 94,139 | 106,755 |
Due from portfolio companies | ||
Due from Related Parties: | ||
Total Due from Related Parties | 61,493 | 66,960 |
Incentive fees receivable | ||
Due from Related Parties: | ||
Total Due from Related Parties | 10,074 | 4,236 |
Due to Former Managing Partners and Contributing Partners | ||
Due to Related Parties: | ||
Total Due to Related Parties | 906,157 | 1,118,272 |
Due to Former Managing Partners and Contributing Partners | Purchase of Limited Partnership Interests | ||
Due to Related Parties: | ||
Total Due to Related Parties | 394,400 | 569,600 |
Due to parent | ||
Due from Related Parties: | ||
Total Due from Related Parties | 37,483 | 0 |
Due to Related Parties: | ||
Total Due to Related Parties | 657,941 | 0 |
Due to funds | ||
Due from Related Parties: | ||
Total Due from Related Parties | 484,498 | 315,875 |
Due to Related Parties: | ||
Total Due to Related Parties | 116,915 | 104,130 |
Capital Markets | Sale of Investment | ||
Due to Related Parties: | ||
Total Due to Related Parties | $ 41,900 | $ 47,800 |
Due from related parties, repayment period | 5 years |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Tax Receivable Agreement (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Percentage of amount of cash savings | 15% | ||
Recorded liability | $ 243,200,000 | ||
Cash payment, multiplier by outstanding units | $ 3.66 | ||
Due to related parties | $ 1,681,013,000 | 1,222,402,000 | |
Due to Former Managing Partners and Contributing Partners | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 906,157,000 | 1,118,272,000 | |
Purchase of Limited Partnership Interests | Due to Former Managing Partners and Contributing Partners | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 394,400,000 | $ 569,600,000 | |
Due to Former Managing Partners and Contributing Partners | |||
Related Party Transaction [Line Items] | |||
Percentage of amount of cash savings | 85% |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due from Employees and Former Employees (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Loans to related party | $ 15.8 | $ 17.5 |
Loans due upon liquidation of fund | $ 65.8 | $ 64.5 |
RELATED PARTY TRANSACTIONS AN_6
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Indemnity (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Indemnity liability | $ 13.3 | $ 13.2 |
RELATED PARTY TRANSACTIONS AN_7
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due to Funds (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
General partner obligation | $ 88.6 | $ 81.2 |
RELATED PARTY TRANSACTIONS AN_8
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Athene (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 20, 2018 | Sep. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Asset threshold | $ 12,318,082 | $ 30,501,894 | |
Athene Holding | |||
Related Party Transaction [Line Items] | |||
Management fee rate | 0.225% | ||
Revised Fee Agreement | Athene Holding | |||
Related Party Transaction [Line Items] | |||
Management fee rate | 0.15% | ||
Asset threshold | $ 103,400,000 | ||
Amended Fee Agreement | Athene Holding | |||
Related Party Transaction [Line Items] | |||
Investment management agreement, subsequent period before termination election | 2 years |
RELATED PARTY TRANSACTIONS AN_9
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Sub-Allocation Fee Schedule (Details) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Athene Holding | Athene Holding | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 28.40% | |
Core Assets | ||
Related Party Transaction [Line Items] | ||
Sub-Allocation Fees | 0.065% | |
Core Plus Assets | ||
Related Party Transaction [Line Items] | ||
Sub-Allocation Fees | 0.13% | |
Yield Assets | ||
Related Party Transaction [Line Items] | ||
Sub-Allocation Fees | 0.375% | |
High Alpha Assets | ||
Related Party Transaction [Line Items] | ||
Sub-Allocation Fees | 0.70% | |
Other Assets | ||
Related Party Transaction [Line Items] | ||
Sub-Allocation Fees | 0% | |
Other Assets | Minimum | ||
Related Party Transaction [Line Items] | ||
Performance revenue, percentages | 0% | |
Other Assets | Maximum | ||
Related Party Transaction [Line Items] | ||
Performance revenue, percentages | 20% |
RELATED PARTY TRANSACTIONS A_10
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Athora (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Athora | Equity Investments | Advisory Services | Affiliated Entity | |
Related Party Transaction [Line Items] | |
Other commitment | $ 401.9 |
RELATED PARTY TRANSACTIONS A_11
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Performance Allocations and Revenues Earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Athene, Athora and AAA Investments | ||||
Related Party Transaction [Line Items] | ||||
Revenues earned in aggregate from Athene and Athora, net | $ 341,888 | $ 284,254 | $ 959,261 | $ 828,045 |
RELATED PARTY TRANSACTIONS A_12
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due to Parent (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 1,681,013 | $ 1,222,402 |
Due to parent | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 657,941 | $ 0 |
RELATED PARTY TRANSACTIONS A_13
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Investment in SPACs (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 13, 2021 | Feb. 12, 2021 | Oct. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |||||||
Net change in unrealized gains due to changes in fair value | $ (15,164) | $ 172,995 | $ 694,621 | $ 1,438,347 | |||
Apollo Strategic Growth Capital (ASPG I) | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Unrealized gain on deconsolidation | 162,000 | ||||||
Net change in unrealized gains due to changes in fair value | $ 81,500 | ||||||
Apollo Strategic Growth Capital (ASPG I) | Affiliated Entity | IPO | APSG I | |||||||
Related Party Transaction [Line Items] | |||||||
Sale of stock, capital from third party investors | $ 816,800 | ||||||
Apollo Strategic Growth Capital (ASPG I) | Affiliated Entity | Private Placement | APSG I | |||||||
Related Party Transaction [Line Items] | |||||||
Sale of stock, capital from third party investors | $ 18,300 | ||||||
APSG II | Affiliated Entity | IPO | |||||||
Related Party Transaction [Line Items] | |||||||
Sale of stock, capital from third party investors | $ 690,000 | ||||||
Proceeds from sale of warrants | $ 15,600 | ||||||
Acropolis | Affiliated Entity | IPO | |||||||
Related Party Transaction [Line Items] | |||||||
Sale of stock, capital from third party investors | $ 345,000 | ||||||
Proceeds from sale of warrants | $ 8,800 |
RELATED PARTY TRANSACTIONS A_14
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Financial Information of SPACs in Aggregate (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||||||
Cash and cash equivalents | $ 1,118,305 | $ 917,183 | $ 2,090,197 | |||
Restricted cash and cash equivalents | 696,712 | 707,885 | 1,052,782 | |||
U.S. Treasury securities, at fair value | 1,372,048 | 1,687,105 | ||||
Other assets | 1,084,421 | 585,901 | ||||
Total Assets | 12,318,082 | 30,501,894 | ||||
Liabilities: | ||||||
Accounts payable and accrued expenses | 126,603 | 145,054 | ||||
Due to related parties | 1,681,013 | 1,222,402 | ||||
Other liabilities | 305,210 | 500,980 | ||||
Total Liabilities | 8,145,121 | 18,537,494 | ||||
Redeemable non-controlling interests: | ||||||
Redeemable non-controlling interests | 1,023,707 | 1,770,034 | 1,750,054 | $ 782,702 | ||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||||||
Additional paid in capital | 1,242,618 | 2,096,403 | ||||
Retained earnings (accumulated deficit) | (3,901) | 1,143,899 | ||||
Total Stockholders’ Equity | 3,149,254 | $ 3,260,969 | 10,194,366 | 8,474,045 | $ 8,212,435 | $ 5,513,263 |
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity | 12,318,082 | 30,501,894 | ||||
Consolidated Variable Interest Entities | ||||||
Assets: | ||||||
Cash and cash equivalents | 84,132 | $ 672,619 | ||||
Other assets | 19,175 | 251,581 | ||||
Liabilities: | ||||||
Other liabilities | 607,636 | 781,482 | ||||
Consolidated Variable Interest Entities | APSG I, APSGII and Acropolis | ||||||
Assets: | ||||||
Cash and cash equivalents | 579 | 1,796 | ||||
Restricted cash and cash equivalents | 694,582 | 690,205 | ||||
U.S. Treasury securities, at fair value | 347,170 | 1,162,299 | ||||
Other assets | 926 | 2,627 | ||||
Total Assets | 1,043,257 | 1,856,927 | ||||
Liabilities: | ||||||
Accounts payable and accrued expenses | 3,250 | 2,361 | ||||
Due to related parties | 8,300 | 20,146 | ||||
Other liabilities | 41,519 | 143,778 | ||||
Total Liabilities | 53,069 | 166,285 | ||||
Redeemable non-controlling interests: | ||||||
Redeemable non-controlling interests | 1,008,679 | 1,762,282 | ||||
Apollo Asset Management, Inc. Stockholders’ Equity: | ||||||
Additional paid in capital | (63,909) | (98,369) | ||||
Retained earnings (accumulated deficit) | 45,418 | 26,729 | ||||
Total Stockholders’ Equity | (18,491) | (71,640) | ||||
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity | $ 1,043,257 | $ 1,856,927 |
RELATED PARTY TRANSACTIONS A_15
RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Financial Information of SPACs in Aggregate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Expenses: | ||||
Interest expense | $ 32,219 | $ 34,820 | $ 96,644 | $ 104,433 |
General, administrative and other | 161,208 | 112,419 | 452,292 | 329,235 |
Total Expenses | 579,573 | 648,907 | 1,978,091 | 2,417,438 |
Other Income: | ||||
Net gains from investment activities | (16,148) | 172,798 | 901,168 | 1,439,343 |
Interest income | 15,377 | 2,114 | 23,999 | 3,557 |
Other income (loss), net | 3,533 | (14,907) | (9,480) | (28,126) |
Total Other Income | 14,149 | 302,460 | 1,243,146 | 1,815,226 |
Income before income tax provision | 107,421 | 732,851 | 1,715,064 | 4,154,111 |
Income tax provision | (22,069) | (101,434) | (163,870) | (498,731) |
Net Income Attributable to Apollo Asset Management, Inc. | 23,430 | 258,322 | 688,519 | 1,594,939 |
APSG I, APSGII and Acropolis | Consolidated Variable Interest Entities | ||||
Expenses: | ||||
Interest expense | 7 | 3 | 16 | 5 |
General, administrative and other | 685 | 3,824 | 6,426 | 13,369 |
Total Expenses | 692 | 3,827 | 6,442 | 13,374 |
Other Income: | ||||
Net gains from investment activities | 3,513 | 29,185 | 20,297 | 27,684 |
Interest income | 4,949 | 131 | 6,710 | 392 |
Other income (loss), net | (100) | (146) | (300) | (370) |
Total Other Income | 8,362 | 29,170 | 26,707 | 27,706 |
Income before income tax provision | 7,670 | 25,343 | 20,265 | 14,332 |
Income tax provision | (179) | 0 | (179) | 0 |
Net Income Attributable to Apollo Asset Management, Inc. | $ 7,491 | $ 25,343 | $ 20,086 | $ 14,332 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Investment Commitments (Details) - USD ($) $ in Billions | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded capital commitments | $ 0.5 | $ 1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Litigation and Regulatory Matters (Details) $ / shares in Units, $ in Thousands, € in Millions | 1 Months Ended | |||||
Oct. 19, 2021 USD ($) $ / shares | Mar. 08, 2021 USD ($) | Jun. 08, 2020 defendant claim | Dec. 21, 2017 USD ($) | Aug. 03, 2017 EUR (€) | Mar. 31, 2020 defendant | |
United States District Court Middle District Of Florida Against AGM | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Damages sought | € | € 30 | |||||
Harbinger Capital Partners II LP et al. v. Apollo Global Management Inc, et al. (No. 657515/2017) | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Damages sought | $ 1,900,000 | |||||
Number of suits (in litigation) | claim | 3 | |||||
Harbinger Capital Partners II LP et al. v. Apollo Global Management Inc, et al. (No. 657515/2017) | SkyTerra | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Number of defendants | defendant | 8 | |||||
Benjamin Fongers Against CareerBuilder, LLC And AGM Inc. | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Damages sought | $ 35,000 | |||||
Frank Funds v. Apollo Global Management | Officers and Employees | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Number of defendants | defendant | 3 | |||||
Stockholder Of AGM Vs. AGM Complaint | Director | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Payment of cash per AOG unit held (in dollars per unit) | $ / shares | $ 3.66 | |||||
Funds provided for tax receivable agreement | $ 640,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Summary of Fixed and Determinable Payments (Details) - Other long-term obligations $ in Thousands | Sep. 30, 2022 USD ($) |
Other Commitments [Line Items] | |
Remaining 2022 | $ 15,966 |
2023 - 2024 | 17,403 |
2025 - 2026 | 249 |
2027 and Thereafter | 0 |
Total | $ 33,618 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Contingent Obligations (Details) | Sep. 30, 2022 USD ($) subsidiary | Dec. 31, 2021 USD ($) |
Variable Interest Entity [Line Items] | ||
Unfunded contingent commitments | $ 500,000,000 | $ 1,000,000,000 |
Apollo Capital Markets Partnership | Sumitomo Mitsui Banking Corp | ||
Variable Interest Entity [Line Items] | ||
Maximum borrowing capacity | 2,250,000,000 | |
Outstanding amount | $ 511,000,000 | |
Underwriting Commitments | AGS | ||
Variable Interest Entity [Line Items] | ||
Number of subsidiaries | subsidiary | 1 | |
Commitment To Purchase Underlying Portfolio Investment | AGS | ||
Variable Interest Entity [Line Items] | ||
Unfunded contingent commitments | $ 0 | $ 0 |
Consolidated Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Cumulative revenues recognized if existing investments become worthless | $ 4,300,000,000 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Contingent Consideration (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of the contingent obligation | $ 103 | $ 125.9 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Total Assets | $ 12,318,082 | $ 12,318,082 | $ 30,501,894 | ||
Management fees | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 582,665 | $ 474,537 | 1,665,611 | $ 1,401,814 | |
Advisory and transaction fees, net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 110,141 | 62,831 | 286,419 | 205,530 | |
Total reportable segment assets | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted Segment Income | 424,256 | 902,451 | 1,506,743 | 1,856,449 | |
Total Assets | 10,315,950 | 10,315,950 | $ 13,573,400 | ||
Total reportable segment assets | Asset Management | |||||
Segment Reporting Information [Line Items] | |||||
Fee-related performance fees | 19,989 | 19,856 | 45,866 | 36,702 | |
Fee related compensation | (193,793) | (160,689) | (556,389) | (476,663) | |
Other operating expenses | (112,005) | (76,601) | (318,716) | (218,316) | |
Adjusted Segment Income | 364,647 | 320,126 | 1,015,739 | 940,730 | |
Total Assets | 1,936,252 | 1,936,252 | |||
Total reportable segment assets | Asset Management | Management fees | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 545,924 | 472,483 | 1,573,197 | 1,395,200 | |
Total reportable segment assets | Asset Management | Advisory and transaction fees, net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 104,532 | 65,077 | 271,781 | 203,807 | |
Total reportable segment assets | Principal Investing | |||||
Segment Reporting Information [Line Items] | |||||
Other operating expenses | (7,214) | (12,014) | (19,250) | (34,149) | |
Adjusted Segment Income | 59,609 | 582,325 | 491,004 | 915,719 | |
Realized performance fees | 92,993 | 608,130 | 371,044 | 1,183,640 | |
Realized investment income | 61,410 | 295,225 | 537,776 | 397,610 | |
Principal investing compensation | (87,580) | $ (309,016) | (398,566) | $ (631,382) | |
Total Assets | $ 8,379,698 | $ 8,379,698 |
SEGMENT REPORTING - Reconcili_2
SEGMENT REPORTING - Reconciliation of Income (Loss) Before Income Tax Provision to Economic Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Income before income tax provision | $ 107,421 | $ 732,851 | $ 1,715,064 | $ 4,154,111 |
Net income attributable to non-controlling interests in consolidated entities | (61,922) | (373,095) | (862,675) | (2,060,441) |
Unrealized net (gains) losses from investment activities and other | 15,164 | (172,995) | (694,621) | (1,438,347) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Equity-based profit sharing expense and other | 55,728 | 31,731 | 219,454 | 93,595 |
Equity-based compensation | 45,183 | 19,538 | 138,584 | 55,187 |
Transaction-related charges | 8,028 | (954) | 5,928 | 27,028 |
Merger-related transaction and integration costs | 12,150 | 14,647 | 48,637 | 38,331 |
(Gains) losses from changes in tax receivable agreement liability | 0 | 0 | 14,184 | (1,941) |
Net income attributable to non-controlling interests in consolidated entities | (17,795) | (112,569) | (276,984) | (299,423) |
Unrealized performance fees | 66,202 | 159,044 | 109,083 | (1,411,205) |
Unrealized profit sharing expense | (18,609) | (40,991) | (15,909) | 646,142 |
Net interest expense | 21,236 | 32,552 | 78,007 | 100,365 |
Unrealized principal investment income (loss) | 127,488 | 218,816 | 137,784 | (153,577) |
Unrealized net (gains) losses from investment activities and other | 17,224 | (152,214) | (667,089) | (1,392,164) |
Total Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted Segment Income | $ 424,256 | $ 902,451 | $ 1,506,743 | $ 1,856,449 |
SEGMENT REPORTING - Reconcili_3
SEGMENT REPORTING - Reconciliation of Reportable Segments to Total Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 12,318,082 | $ 30,501,894 |
Total reportable segment assets | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,315,950 | 13,573,400 |
Adjustments | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,002,132 | $ 16,928,494 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | 3 Months Ended | |
Nov. 02, 2022 | Sep. 30, 2022 | |
Series A Preferred Stock | ||
Subsequent Event [Line Items] | ||
Dividends declared per share (in USD per share) | $ 0.398438 | |
Series B Preferred Stock | ||
Subsequent Event [Line Items] | ||
Dividends declared per share (in USD per share) | $ 0.398438 | |
Subsequent Event | Series A Preferred Stock | ||
Subsequent Event [Line Items] | ||
Dividends declared per share (in USD per share) | $ 0.398438 | |
Subsequent Event | Series B Preferred Stock | ||
Subsequent Event [Line Items] | ||
Dividends declared per share (in USD per share) | $ 0.398438 |