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NEW YORK (Reuters) – Apollo Global Management (NYSE:APO) Inc said on Thursday its fourth-quarter adjusted net income rose 77% owing to strong earnings from its retirement services business, although that was partly offset by a steep decline in its private equity portfolio.
The New York-based firm said adjusted net income rose to $853.2 million, up from $483 million a year earlier. That translated to adjusted net income per share of $1.42 per share, which was below the average analyst forecast of $1.50 per share, according to financial data provider Refinitiv.
The growth in Apollo’s earnings was largely the result of the $685.2 million income it generated from investing the capital of retirement services provider Athene Holdings. Apollo completed its merger with Athene last year.
Income from management fees rose 16% to $561.3 million as Apollo benefited from the fees stemming from acquiring U.S. asset management firm Griffin Capital, increased capital flows from Athene and strong fundraising. That helped fee-related earnings reach a record $394 million.
Like its peers, Apollo cashed out fewer investments during the quarter amid financial market volatility, inflation, recession worries and geopolitical tensions. That led to profits from its private equity portfolio falling 86% to $27.7 million. Blackstone (NYSE:BX) Inc, KKR & Co (NYSE:KKR) Inc, and Carlyle Group (NASDAQ:CG) Inc had also reported lower earnings because of slower asset sales.
Apollo said its private equity funds appreciated 5.4%, its corporate credit funds rose 2.6% and its hybrid value funds gained 3.9%. The private equity funds of Blackstone and Carlyle rose 3.8% and 1% respectively, while KKR said its private equity funds were flat.
Under generally accepted accounting principles (GAAP), Apollo’s net income more than doubled to $584 million, up from $244 million a year earlier owing to investment gains from Athene.
Apollo said its raised $28 billion of new capital, retained $51 billion of unspent capital, and had total assets under management of $548 billion. It declared a quarterly divided of 40 cents per share.
