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A Look at Apollo’s Private Equity Segment

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May. 9 2018, Published 7:56 a.m. ET

Private Equity segment

On May 3, Apollo Global Management (APO) released its earnings report for 1Q18. Its Private Equity segment saw economic income amounting to -$151.5 million in 1Q18 compared to $270.5 million in 1Q17 and $381.6 million in 4Q17. 

The segment’s funds witnessed depreciation of 2.7% in 1Q18, while over the last 12 months, they appreciated 16.1%.

In 1Q18, the carrying value of Blackstone Group’s (BX) Corporate Private Equity division rose 6.4%. During the same period, the carry funds of Carlyle Group’s (CG) Corporate Private Equity segment rose 4%. 

Apollo Global’s Private Equity segment saw revenue amounting to -$101.9 million in 1Q18, while in 4Q17, it generated $579.2 million. The segment’s performance fees amounted to -$166.1 million in 1Q18, while they amounted to $410.4 million in 4Q17.

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Realizations, total AUM

Apollo Global’s Private Equity segment witnessed realizations of $1.5 billion in 1Q18, whereas over the last 12 months, it witnessed realizations of $5 billion. In 1Q18, the segment saw deployments amounting to $1.3 billion. Over the last 12 months, its deployments amounted to $4.8 billion.

Apollo’s Private Equity segment ended 1Q18 with total AUM (assets under management) of $69 billion. AUM is affected by factors such as appreciation in holdings and fundraising. Higher fundraising provides a boost to the segment’s total AUM.

Notably, Apollo Global’s competitor (XLF) KKR & Company (KKR) had total AUM of $102.2 billion in its Private Equity segment in 1Q18. Apollo’s Private Equity segment had total capital of $34 billion available for further investment at the end of 1Q18.

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