By Chibuike Oguh
(Reuters) - Apollo Global Management (NYSE:APO) Inc said on Thursday its first-quarter earnings jumped more than three times thanks to strong growth in income from management fees and profit from its retirement services business.
This was the first financial quarter reported by Apollo since completing its $11 billion all-stock merger with annuities provider Athene Holdings Ltd in January.
Apollo said its adjusted net income reached $915.1 million in the first quarter, up from $294.1 million a year earlier. Its adjusted net income per share rose to $1.52 per share from 66 cents per share last year.
Apollo's adjusted net income and adjusted net income per share exceeded the average analyst estimates of $645.33 million and $1.03 per share, respectively, according to financial data provider Refinitiv.
That was in line with peers Blackstone Group (NYSE:BX) Inc, KKR & Co (NYSE:KKR) Inc, Carlyle Group (NASDAQ:CG) Inc and Ares Management (NYSE:ARES) Inc, which all posted bumper profits despite market turbulence from soaring inflation, rising interest rates and Russia's invasion of Ukraine.
Apollo said its fee-related earnings rose 3% to $310 million from $302 million last year. Its income generated from investing Athene's capital stood at $670.2 million.
The New York-based firm said it invested $48 billion during the quarter across its credit, private equity, and debt and equity investment portfolios. That includes $22 billion spent to finance loans to middle-market companies, commercial real estate and collateralized loan obligations.
Apollo said its private equity portfolio appreciated by 8% in the first quarter. The private equity funds of Blackstone and Carlyle rose by 2.8% and 7%, respectively, while those of KKR fell 5% in the same period.
Under generally accepted accounting principles, Apollo posted a net loss of $870 million compared with a net income of $670 million last year, owing to the booking of liabilities generated from insurance policies underwritten by Athene.
Apollo's assets under management rose to $513 billion, up from $497.6 billion reported in the previous quarter, driven by capital inflows from Athene and strong fundraising that was partly offset by asset divestments. Unspent capital stood at $48 billion.
Apollo declared a dividend of 40 cents per share, down from 50 cents declared a year earlier.