Fall in total revenue
Apollo Global Management’s (APO) real asset division saw its total revenue fall from $23.1 million in 3Q16 to $21.7 million in 3Q17, mainly due to its carried interest income falling from $6.5 million to $1.8 million.
The division’s advisory and transaction fees rose from $1 million in 3Q16 to $1.4 million in 3Q17. It managed to deploy $712 million in 3Q17 and witnessed realizations of $335 million.
Over the last 12 months, Apollo has returned 22.3% on its assets, whereas peers (XLF) Ares Management (ARES), Fortress Investment Group (FIG), and Oaktree Capital (OAK) have returned 2.1%, 17.4%, and 9.6%, respectively.
Total expenses fall
Apollo’s real asset division saw its total expenses fall from $18.9 million in 3Q16 to $15.6 million in 3Q17, mainly because of its compensation and benefit expenses falling from $14.3 million to $10.1 million. That fall was primarily due to lower profit sharing expenses, which fell along with the division’s carried interest income. The division’s general, administrative, and other expenses rose from $4.7 million in 3Q16 to $5.5 million in 3Q17, mainly due to higher professional fees.