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What Led to Rise in Apollo’s Total Revenues in 2017?

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Substantial rise

Apollo Global Management (APO) generated total revenues of $2.6 billion in 2017 compared to $1.9 billion in 2016, a 32.5% rise. This rise was mainly due to a substantial YoY rise in the company’s carried interest income. However, the company witnessed a rise of 10.7% in management fees in 2017 compared to 2016 mainly due to management fees generated from FCI III (Financial Credit Investment), EPF III (European Principal Finance Fund), and Athene.

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Apollo Global witnessed a decline in net advisory and transaction fees from $146.6 million in 2016 to $117.6 million in 2017. This decline was mainly due to lesser net advisory and transaction fees generated from the companies present in the Fund VIII portfolio. However, higher net advisory and transaction fees were generated from FCI III in 2017 compared to 2016.

Carried interest income

Apollo Global generated carried interest income of $1.3 billion in 2017 compared to $780.2 million in 2016, reflecting a rise of 71.4%. This rise was witnessed mainly because of the higher carried interest income generated in regards to private equity funds.

However, the rise in carried interest income was negatively impacted by the lesser carried interest income generated in regards to the credit funds.

While Apollo generated revenues of $0.86 billion in 4Q17, peers (XLF) Carlyle Group (CG), KKR & Company (KKR), and Blackstone Group (BX) generated $0.97 billion, $0.40 billion, and $1.9 billion, respectively, in 4Q17.

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