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Analyzing Apollo Global Management’s Balance Sheet

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Rise in total assets

Apollo Global Management’s (APO) total assets figure was $6.8 billion on September 30, 2017, compared to $5.6 billion on December 31, 2016. Apollo’s total investments also include equity method investments.

The company made total investments of $1.7 billion on September 30, 2017, compared to $1.4 billion on December 31, 2016.

Out of total investments of $1.7 billion, investments at fair value stood at $852.3 million while equity method investments stood at $855.7 million. The company carried interest receivables of $1.5 billion on September 30, 2017, compared to $1.2 billion on December 31, 2016.

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Liabilities, excluding equity

Total liabilities, excluding equity, of Apollo Global stood at $4.2 billion on September 30, 2017, compared to $3.7 billion on December 31, 2016. The company reported $643.4 million due to related parties as of September 30, 2017. Out of this, $524.5 million was due to contributing and managing partners.

Apollo Global had debt of $1.36 billion on September 30, 2017, compared to $1.35 billion on December 31, 2016. The company witnessed a rise in the other liabilities from $81.6 million on December 31, 2016, to $116.2 million on September 30, 2017.

On an LTM (last-12-months) basis, APO posted an EBITDA[1. earnings before interest, tax, depreciation, and amortization] margin of ~46.4%. Its peers (XLF) Ares Management (ARES), Oaktree Capital Group (OAK), and Ameriprise Financial (AMP) posted EBITDA margins of -13.4%, ~32.1%, and ~24.2%, respectively.

Let’s look at Apollo’s valuations in the next article of this series.

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