Apollo Global Management (APO) kicked off 2025 with a standout first quarter, delivering record fee-related earnings (FRE) of $559 million, up 21% year-over-year, and showcasing the strength of its diversified model across asset management and retirement services. Adjusted net income reached $1.1 billion, or $1.82 per share, while spread-related earnings (SRE) came in at $826 million (excluding notable items). The firm increased its quarterly dividend by 10% to $0.51 per share, underlining its confidence in future cash generation.

Assets under management climbed to $785.2 billion as of March 31, representing 4.5% growth since year-end 2024 and a 17% increase year-over-year. Fee-generating AUM also rose to $595.2 billion, supported by record inflows of $43 billion during the quarter—$26 billion of which came from Athene. Net flows totaled $26.4 billion, driven by strong demand across credit ($17.6 billion) and equity ($8.8 billion) strategies, alongside origination volumes of $56 billion, marking nearly 30% year-over-year growth.

In the Asset Management segment, revenues edged higher to $1.05 billion, with management fees climbing to $770 million, reflecting solid contributions from credit ($569 million, up 23%) and equity ($201 million, up 6%). Capital solutions fees rose 9% to $154 million, and fee-related performance fees increased 17% to $54 million, contributing to an approximately 200 basis point expansion in FRE margin. This was supported by higher fee revenue from strategies like Athene, ADS, and S3, as well as disciplined cost control.

Athene, Apollo’s Retirement Services arm, posted its highest-ever organic inflows at $20 billion, with net invested assets up 15% year-over-year. The business delivered $826 million in SRE, with a net spread of 129 basis points, modestly down 8 bps sequentially due to market-driven headwinds. Its funding mix remained balanced, including $10 billion from retail, $11 billion from funding agreements, and $5 billion from reinsurance flows, reinforcing Athene’s diversified funding base.

By strategy, Apollo’s credit AUM totaled $641.3 billion, while equity AUM reached $143.8 billion. Performance-fee eligible AUM stood at $234.9 billion, split between $141.3 billion in credit and $93.6 billion in equity. Market activity contributed $11.1 billion positively to AUM, while realizations were $(3.5) billion, mostly from equity and credit distributions.

Management emphasized Apollo’s patient approach to deployment, guided by origination discipline and a focus on “fat pitch” opportunities rather than market timing. The firm highlighted the strong investment performance of Private Equity Fund X, which delivered a 19% net IRR, outpacing industry benchmarks. Several newer strategies—such as ADS, S3, and Accord—have rapidly scaled, each surpassing $8–20 billion in AUM within just a few years.

Fundraising momentum was particularly strong in the global wealth channel, which brought in a record $5 billion in Q1, up 85% year-over-year. Management also sees substantial runway in the institutional space, especially as insurance and traditional asset managers continue allocating to private markets.

Looking ahead, Apollo remains optimistic. The firm reaffirmed guidance for FRE growth and expects mid-single-digit SRE growth in 2025, with potential upside if spreads widen and deployment accelerates. In Q1 alone, $700 million was used for share repurchases, bringing total capital returned to shareholders to $1.7 billion over the last 12 months. Additionally, the recently announced $1.5 billion acquisition of Bridge Investment Group is set to close in Q3, bolstering Apollo’s real estate capabilities.

With $64 billion in dry powder, a well-diversified fundraising engine, and a disciplined, scalable platform, Apollo enters the remainder of 2025 positioned to capitalize on both secular and cyclical tailwinds in private markets and retirement solutions. While challenges such as lower rates, elevated prepayments, and market volatility persist, management sees these as opportunities given Apollo’s long-term focus and origination strengths.