Apollo Global Management (APO) reported strong financial performance for Q3 2024, with total revenues reaching $7.8 billion, a significant increase from $2.6 billion in Q3 2023. This growth was primarily driven by the Retirement Services segment, which contributed $6.9 billion in revenues, up from $1.7 billion in the prior year. The Asset Management segment, however, saw a slight decline in revenues, decreasing to $922 million from $929 million in Q3 2023, due to lower investment income despite higher advisory and transaction fees.

Net income attributable to Apollo Global Management, Inc. common stockholders increased to $787 million in Q3 2024, compared to $660 million in Q3 2023. This improvement was supported by higher realized performance fees and net investment income, partially offset by increased compensation expenses and higher costs of funds. Earnings per share (EPS) for common stockholders rose to $1.30 (basic) and $1.29 (diluted), compared to $1.10 in the prior year.

Fee Related Earnings (FRE) for the Asset Management segment grew by 12.5% year-over-year, reaching $531 million in Q3 2024, compared to $472 million in Q3 2023. This growth was driven by higher management fees, particularly in the Credit segment, which saw a 20.2% increase in fees, and improved fee-related performance fees. However, equity management fees declined by 11.5% due to lower activity in that area.

Assets Under Management (AUM) reached $733.2 billion as of September 30, 2024, up from $650.8 billion at the beginning of the year. This growth was driven by $119.5 billion in inflows, partially offset by $46.5 billion in outflows and $17.0 billion in realizations. Fee-Generating AUM also increased to $551.0 billion, reflecting strong net flows and market activity.

Net investment income in the Retirement Services segment surged to $4.1 billion in Q3 2024, compared to $3.2 billion in Q3 2023. This increase was attributed to higher rates on new deployments, growth in Athene’s average net invested assets, and favorable performance in strategic origination platforms. However, alternative net investment income saw a slight decline due to underperformance in private equity and retirement services platforms.

Apollo's operating cash flow for the nine months ended September 30, 2024, was $3.3 billion, down from $4.3 billion in the same period in 2023. This decline was primarily due to higher policy acquisition costs and other operating expenses. Investing activities used $45.6 billion in cash, reflecting significant purchases of investments, while financing activities provided $42.2 billion, driven by strong inflows from funding agreements and debt issuances.

Apollo's cost of funds increased significantly in Q3 2024, driven by higher rates on new deferred annuity issuances and institutional business. This increase was partially offset by favorable changes in unlocking assumptions and pension group annuity balances. Interest and other financing costs also rose due to debt issuances in late 2023 and early 2024.

Realized performance fees in the Principal Investing segment increased by $199 million in Q3 2024, primarily due to strong contributions from Fund IX and Freedom Parent Holdings. However, this was partially offset by higher principal investing compensation expenses, which rose by $134 million due to increased profit-sharing expenses.

Apollo's share repurchase program was active during the nine months ended September 30, 2024, with 7.3 million shares repurchased for $788 million. This program aims to reduce share count and offset dilution from equity incentive plans. Additionally, Apollo issued 4.8 million shares for equity-based awards during the same period.

The macroeconomic environment in Q3 2024 was favorable for Apollo's business, with strong equity market performance and positive credit market conditions. The S&P 500 Index rose by 5.5%, and the BofAML HY Master II Index increased by 5.3%. U.S. GDP grew at an annualized rate of 2.8%, supporting Apollo's investment activities and AUM growth.