Apollo Global Management, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
APO$116.75-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001858681-25-000139
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001858681-26-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 472 previous paragraphs and 408 current paragraphs.
264 unchanged; 109 reworded; 35 added; 89 removed; 10 previous and 0 current paragraphs rearranged.
Tables are not compared: 35 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
Private credit, which represents an estimated $40 trillion primarily investment-grade market, has experienced heightened focus, generating industry inquiries around liquidity, valuation methodologies, global wealth access and technology-related portfolio allocations. We believe such inquiries are natural to an evolving asset class that is experiencing strong overall growth. However, the magnified focus has corresponded to increased redemption requests within perpetual non-traded business development company structures across the industry, resulting in lower growth for these products.
Current report
While investor demand for perpetual non-traded business development company structures may experience variability, we believe that the long-term investor opportunity to provide investors with access to private credit, both investment-grade and sub investment-grade, will remain compelling across cycles.
Current report
Other Income (Loss)
Current report
Revenues were $1,011 million in 2026, a decrease of $35 million from $1,046 million in 2025, primarily driven by lower investment income (loss), partially offset by higher management fees, advisory and transaction fees, net, and incentive fees.
Current report
The performance allocation losses from Fund VIII in 2026 were primarily driven by the depreciation of the fund’s investments in the (i) media, cable and leisure, (ii) financial and business services and (iii) manufacturing and industrial sectors.
Current report
Other Income (Loss)
Current report
Other income (loss) was $(97) million in 2026, a decrease of $72 million from $(25) million in 2025, primarily driven by a decrease in net gains (losses) from investment activities of consolidated VIEs of $226 million and a decrease in net gains (losses) from investment activities of $94 million, respectively, partially offset by an increase in other income (loss), net of $248 million.
Current report
The decrease in net gains (losses) from investment activities of consolidated VIEs of $226 million was primarily driven by a significant portfolio company valuation increase in 2025 related to the sale of the consolidated VIE’s primary holding. The decrease in net gains (losses) from investment activities of$94 million was primarily driven by losses on the sale of certain investments held by the asset manager.
Current report
Premiums were $217 million in 2026, an increase of $90 million from $127 million in 2025, primarily driven by an increase in payout annuity premiums related to the issuance of structured settlements and life renewal premiums from the Sony Life Insurance Co., Ltd. (“Sony”) block reinsurance transaction executed in the fourth quarter of 2025.
Current report
Retirement Services expenses were $3.5 billion in 2026, an increase of $223 million from $3.2 billion in 2025. The increase was primarily driven by an increase in future policy and other policy benefits, an increase in interest sensitive contract benefits, an increase in policy and other operating expenses and an increase in the amortization of DAC, DSI and VOBA, partially offset by a decrease in market risk benefits remeasurement (gains) losses.
Current report
Future policy and other policy benefits were $639 million in 2026, an increase of $98 million from $541 million in 2025, primarily driven by an increase in payout annuity reserves, as well as life reserves related to renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025.
Current report
Capital solutions fees earned in 2026 were primarily attributable to fees earned from our opportunistic credit, direct origination, multi-credit, and infrastructure and clean transition equity strategies.
Current report
The increase in fee-related performance fees in 2026 was primarily driven by growth across global wealth products, Bridge funds, and perpetual capital vehicles.
Current report
•Net flows of $91.2 billion primarily attributable to:
Current report
•an $84.9 billion increase related to the funds we manage in our credit strategy primarily consisting of (i) $65.3 billion of inorganic inflows from Athora’s acquisition of PIC; (ii) $15.3 billion of subscriptions mostly related to multi-credit, direct origination, clients of ISGI and opportunistic credit funds; and (iii) $4.3 billion related to the growth of our retirement services client assets; and
Current report
•Market activity of $4.4 billion, primarily attributable to:
Current report
•$3.3 billion related to the funds we manage in our credit strategy primarily consisting of $4.4 billion driven by our retirement services clients; partially offset by (i) $0.6 billion related to asset-backed finance funds; and (ii) $0.4 billion related to direct origination funds; and
Current report
•$1.2 billion related to the funds we manage in our equity strategy.
Current report
•Realizations of $(7.7) billion primarily attributable to:
Current report
Total Fee-Generating AUM was $835.9 billion at March 31, 2026, an increase of $126.7 billion, or 17.9%, compared to $709.1 billion at December 31, 2025. The net increase was primarily driven by Athora’s acquisition of PIC, subscriptions across the platform, growth of our retirement services client assets and market activity primarily in our credit strategy, partially offset by realizations. More specifically, the net increase was due to:
Current report
•Net flows of $127.6 billion attributable to the funds we manage in our credit strategy primarily consisting of (i) $65.3 billion of inorganic inflows from Athora’s acquisition of PIC; (ii) $41.6 billion primarily due to a fee basis adjustment related to Redding Ridge; (iii) $4.9 billion of subscriptions primarily related to multi-credit and direct origination funds; and (iv) $4.3 billion related to the growth of our retirement services client assets, partially offset by $(2.5) billion of redemptions.
Current report
•Market activity of $3.7 billion attributable to the funds we manage in our credit strategy primarily consisting of $4.4 billion related to our retirement services clients, partially offset by (i) $0.4 billion related to asset-backed finance funds; and (ii) $0.4 billion related to clients of ISGI.
Current report
Spread Related Earnings
Current report
Cost of funds was $2.8 billion in 2026, an increase of $597 million from $2.2 billion in 2025, primarily driven by significant growth in deferred annuity and funding agreement business and higher rates on new business, as well as runoff of lower rate business, compared to existing blocks. The increase in cost of funds was also driven by an increase in the amortization of DAC, DSI and VOBA and additional policy acquisition expenses related to significant growth. These impacts were partially offset by lower rates on floating rate funding agreements.
Current report
AP Grange
Current report
During the second quarter of 2026, AP Grange called its outstanding ABS debt and as a result, Athene will recognize a gain of $673 million in GAAP income. Additionally, within our non-GAAP results for the second quarter of 2026, we will recognize a non-operating gain of $458 million, net of the ACRA non-controlling interests.
Current report
PII was $75 million in 2026, an increase of $61 million, as compared to $14 million in 2025. This increase was primarily attributable to increases in realized performance fees and realized investment income of $167 million and $18 million, respectively, partially offset by an increase in principal investing compensation expense of $125 million.
Current report
The increase in realized performance fees of $167 million in 2026 was primarily driven by an increase in realized performance fees generated from a portfolio company sale and Fund X, partially offset by a decrease in realized performance fees earned from HVF II and Fund IX.
Current report
The increase in realized investment income of $18 million in 2026 was primarily attributable to gains realized in connection with a portfolio company sale and the recovery of a previously impaired loan receivable related to Bridge, partially offset by realized loss on disposition of investments.
Current report
AAM and its subsidiaries had equity commitments outstanding to Athora of up to $57 million as of March 31, 2026.
Current report
As of December 31, 2025 and December 31, 2024, Athene’s U.S. RBC ratio was 436% and 419%, respectively, its Bermuda RBC ratio was 454% and 450%, respectively, and its consolidated RBC ratio was 441% and 430%, respectively. The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Bermuda Capital, as used in the calculation of Bermuda RBC, represents the capital of Athene’s non-U.S. reinsurance subsidiaries as reported in the Bermuda statutory financial statements, adjusted to exclude deferred tax assets related to Bermuda CIT. Bermuda statutory financial statements apply U.S. statutory accounting principles for policyholder reserve liabilities, which Athene also subjects to U.S. cash flow testing requirements. There are certain differences between Bermuda statutory and U.S. statutory frameworks that result in Consolidated RBC being approximately 20 RBC points higher as of December 31, 2025. The primary driver of this difference is that Bermuda statutory financial statements require that assets assumed as part of a reinsurance transaction and any assets sold are recorded at their market value, without posting an interest maintenance reserve. Athene expects this difference to reduce over time, and to decline to immaterial levels over the next five years.
Current report
Bermuda Corporate Income Tax
Current report
On January 5, 2026, the OECD issued guidance exempting U.S.-parented groups from the IIR or UTPR taxes under the Pillar Two regime. The U.K. government has publicly announced its intention to enact this guidance into law. While the precise timing of such enactment is subject to the U.K. government’s legislative process, once enacted, the Company expects that Athene and ACRA entities would be exempt from the IIR and UTPR taxes in the U.K. In light of these developments, and the Company’s expectation that maintaining alignment between the Bermuda CIT and Pillar Two tax groups would no longer be beneficial, in January 2026, the Company revoked ACRA’s election to be subject to the Bermuda CIT.
Current report
Although the Company believes such an outcome would be unlikely, if the U.K. government does not enact the announced legislation, or subsequently amends its legislation in a manner that does not conform to the OECD guidance, the Company expects to re-elect ACRA into the Bermuda CIT regime at that time and utilize the Bermuda deferred tax assets to offset any resulting Bermuda CIT or Pillar Two cash tax obligations.
Current report
As a result of the foregoing, in the first quarter of 2026, the Company recorded a full valuation allowance against its Bermuda deferred tax assets, as the Company no longer expects Athene or ACRA to incur Bermuda CIT or Pillar Two tax expense against which such deferred tax assets could be utilized. This resulted in a reduction to other assets and a corresponding increase to income tax provision, resulting in a reduction to equity, equal to the net amount of the Bermuda deferred tax assets of $1.7 billion. Notwithstanding this near-term impact on these financial metrics, and without assurance as to future results, the Company believes that these developments, including the revocation of ACRA’s election to be subject to the Bermuda CIT, will have favorable implications for the Company’s overall tax position over the longer term.
Removed paragraphs (89)
Previous report
The diagram below depicts our current organizational structure:
Previous report
Note: The organizational structure chart above depicts a simplified version of the Apollo structure. It does not include all legal entities in the structure.
Previous report
(1)Includes direct and indirect ownership by AGM.
Previous report
Revenues were $1,487 million in 2025, an increase of $565 million from $922 million in 2024, primarily driven by higher investment income, advisory and transaction fees, net and management fees.
Previous report
The performance allocations earned from Fund IX in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) leisure and (ii) financial services sectors.
Previous report
The performance allocations earned from Accord+ II in 2025 were primarily driven by the net income generated by the fund’s investments.
Previous report
Management fees increased by $130 million to $606 million in 2025 from $476 million in 2024. The increase in management fees was primarily attributable to management fees earned from Atlas, Bridge funds, ADS and AIOF III of $30 million, $20 million, $20 million and $9 million, respectively, partially offset by decreases in management fees earned from Fund IX and Fund VIII of $7 million and $4 million, respectively. Management fees in 2025 also benefited from increased management fees earned from certain strategic separately managed accounts. The increase in management fees earned from Atlas, ADS and AIOF III was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities, an increase in subscriptions, and catch-up management fees for additional closes, respectively. Additionally, management fees increased due to the Bridge acquisition. The decrease in management fees earned from Fund IX and Fund VIII were correlated with the fee rate step-down of Fund IX and the expiration of Fund VIII’s fee-paying period, respectively.
Previous report
General, administrative and other expenses were $409 million in 2025, an increase of $83 million from $326 million in 2024. The increase in 2025 was primarily driven by increases in travel and entertainment expenses, depreciation and amortization expenses, higher recruitment fees, professional fees, and placement fees.
Previous report
Other income (loss) was $146 million in 2025, an increase of $17 million from income of $129 million in 2024. This increase was primarily driven by an increase in net gains (losses) from investment activities of $63 million, partially offset by a decrease in other income (loss), net of $37 million, respectively.
Previous report
Retirement Services revenues were $8.3 billion in 2025, an increase of $1.5 billion from $6.9 billion in 2024. The increase was primarily driven by an increase in net investment income, an increase in investment related gains (losses) and an increase in revenues of consolidated VIEs, partially offset by a decrease in premiums.
Previous report
2024, as well as runoff of the underlying investments within Athene’s funds withheld asset, partially offset by credit spread tightening in 2025 compared to 2024.
Previous report
Revenues of consolidated VIEs were $654 million in 2025, an increase of $102 million from $552 million in 2024, primarily driven by growth and investment performance within AAA related to favorable returns on the underlying assets.
Previous report
Premiums were $117 million in 2025, a decrease of $272 million from $389 million in 2024, primarily driven by a $294 million decrease in pension group annuity premiums compared to 2024.
Previous report
Retirement Services expenses were $5.8 billion in 2025, an increase of $1.0 billion from $4.8 billion in 2024. The increase was primarily driven by an increase in interest sensitive contract benefits and an increase in the amortization of DAC, DSI and VOBA, partially offset by a decrease in market risk benefits remeasurement (gains) losses, a decrease in future policy and other policy benefits and a decrease in policy and other operating expenses. Athene’s annual unlocking of assumptions resulted in a decrease in total benefits and expenses of $55 million compared to an increase of $31 million in 2024. The 2025 unlocking was driven by a decrease of $90 million in interest sensitive contract benefits and a decrease of $59 million in market risk benefits, partially offset by an increase of $53 million related to DAC, DSI and VOBA amortization and an increase of $41 million in future policy and other policy benefits. The 2024 unlocking was driven by an increase of $62 million in market risk benefits, an increase of $21 million related to DAC, DSI and VOBA amortization and an increase of $8 million in interest sensitive contract benefits, partially offset by a decrease of $60 million in future policy and other policy benefits.
Previous report
Interest sensitive contract benefits were $4.2 billion in 2025, an increase of $1.6 billion from $2.6 billion in 2024, primarily driven by an increase in the change in FIA reserves, significant growth in Athene’s deferred annuity and funding agreement blocks of business and higher rates on new deferred annuity and funding agreement issuances, as well as runoff of lower rate business, in comparison to its existing blocks of business. These impacts were partially offset by lower rates on floating rate funding agreements and a favorable change in unlocking. The change in Athene’s FIA reserves includes the impact from changes in the fair value of FIA embedded derivatives. The increase in the change in fair value of FIA embedded derivatives of $985 million was primarily due to the performance of the equity indices to which Athene’s FIA policies are linked. The largest percentage of Athene’s FIA policies are linked to the S&P 500 Index, which increased 7.8% in 2025, compared to an increase of 5.5% in 2024. The change in fair value of FIA embedded derivatives was also driven by an unfavorable impact of rates on policyholder projected benefits in comparison to 2024. These impacts were partially offset by a favorable change in discount rates used in Athene’s embedded derivative calculations as 2025 experienced a smaller decrease in discount rates compared to 2024. The fair value of FIA embedded derivative and investment contract provision unlocking in 2025 was $79 million favorable primarily due to changes to projected interest crediting, partially offset by changes in policyholder behavior and mortality assumptions, while 2024 unlocking was $67 million unfavorable primarily due to changes to projected interest crediting. The negative VOBA unlocking related to Athene’s interest sensitive contract liabilities in 2025 was $11 million favorable mainly due to changes in policyholder behavior, partially offset by updated economic assumptions, while 2024 unlocking was $59 million favorable mainly due to updated economic assumptions and changes in policyholder behavior.
Previous report
Market risk benefits remeasurement (gains) losses were $131 million in 2025, a decrease of $393 million from $524 million in 2024. The lower losses in 2025 compared to 2024 were primarily driven by a favorable change in the fair value of market risk benefits and a favorable change in unlocking. The change in fair value of market risk benefits was$205 million favorable due to a smaller decrease in risk-free discount rates across the long end of the curve compared to 2024, which are used in the fair value measurement of the liability for market risk benefits, and $72 million favorable related to more favorable equity market performance compared to 2024. The market risk benefits unlocking in 2025 was $59 million favorable primarily due to changes in policyholder behavior and updated mortality assumptions, partially offset by changes in projected interest crediting, while 2024 unlocking was $62 million unfavorable primarily due to changes in policyholder behavior, partially offset by updated economic assumptions.
Previous report
Future policy and other policy benefits were $613 million in 2025, a decrease of $180 million from $793 million in 2024, primarily driven by a $294 million decrease in pension group annuity obligations compared to 2024, partially offset by an unfavorable change in unlocking. Unlocking in 2025 was $41 million unfavorable, consisting of $77 million of unfavorable future policy benefit reserve unlocking, partially offset by $36 million of favorable negative VOBA and deferred profit liability unlocking. The unfavorable unlocking primarily related to updated mortality assumptions and changes in policyholder behavior, partially offset by updated economic assumptions. Unlocking in 2024 was $60 million favorable, consisting of $104 million of favorable future policy benefit reserve unlocking, partially offset by $44 million of unfavorable negative VOBA and deferred profit liability unlocking. The favorable unlocking primarily related to updated mortality assumptions, partially offset by changes in policyholder behavior.
Previous report
Policy and other operating expenses were $573 million in 2025, a decrease of $97 million from $670 million in 2024, primarily driven by the recognition of $172 million of expense related to estimated guaranty association assessments levied against Athene in connection with the Bankers Life Insurance Company (“BLIC”) and Colorado Bankers Life Insurance Company (“CBLIC”) insolvencies in 2024, partially offset by an increase in interest expense and policy acquisition expenses related to significant growth. The increase in interest expense was primarily due to interest on additional issuances of long-term debt in the fourth quarter of 2024 and the second quarter of 2025 as well as an increase in host accretion on business ceded to Catalina.
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Revenues were $3,640 million in 2025, an increase of $629 million from $3,011 million in 2024, primarily driven by an increase in management fees and advisory and transaction fees, net.
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Advisory and transaction fees increased by $233 million to $850 million in 2025 from $617 million in 2024. Advisory and transaction fees earned during 2025 were primarily attributable to advisory and transaction fees earned from companies in the (i) financial services, (ii) manufacturing and industrial, (iii) media, telecom and technology, (iv) natural resources and (v) leisure sectors.
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Incentive fees increased by $41 million to $149 million in 2025 from $108 million in 2024, primarily attributable to sustained growth across a variety of perpetual capital vehicles.
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Investment income increased $26 million in 2025 to $936 million compared to $910 million in 2024. The increase in investment income in 2025 was primarily driven by an increase in performance allocations of $36 million.
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Significant drivers for performance allocations in 2025 were performance allocations primarily earned from Fund X, Credit Strategies, HVF II, Redding Ridge Holdings, Freedom Parent Holdings, and Accord+ II of $315 million, $108 million, $98 million, $70 million, $58 million and $39 million, respectively, partially offset by performance allocation losses from Athora and Fund IX of $56 million and $53 million, respectively.
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The performance allocations earned from Fund X in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) manufacturing and industrial, (ii) consumer and retail and (iii) consumer services sectors.
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The performance allocations earned from Accord+ II in 2025 were primarily driven by the net income generated by the fund’s investments.
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The performance allocation losses from Athora in 2025 were primarily driven by a reduced profits interest.
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Expenses were $3,379 million in 2025, an increase of $459 million from $2,920 million in 2024 primarily due to increases in total compensation and benefits, general, administrative and other, and interest expense.
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Other income (loss) was a loss of $130 million in 2025, a decrease of $301 million from income of $171 million in 2024. This decrease was primarily driven by decreases in net gains (losses) from investment activities and other income (loss), net of $241 million and $240 million, respectively, offset by an increase in net gains (losses) from investment activities of consolidated variable interest entities of $180 million.
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The decrease in net gains (losses) from investment activities of$241 million was primarily driven by an impairment loss on an equity investment triggered by the initial public offering of the equity security which resulted in an observable transaction price below the Company’s carrying amount, as well as the depreciation in the Company’s investments in Global Business Travel Group, Inc. The decrease in other income (loss), net of $240 million was primarily driven by the expense related to the issuance of common stock to the Apollo DAF, derivative losses primarily on forward contracts, and losses from changes in the tax receivable agreement liability, partially offset by a decrease in the earnout expense associated with a previous acquisition.
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The increase in net gains (losses) from investment activities of consolidated VIEs of $180 million was primarily driven by the appreciation of a consolidated VIE’s underlying investment valuation.
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Net investment income was $14.1 billion in 2025, an increase of $2.6 billion from $11.5 billion in 2024, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows during the previous twelve months, higher rates on new deployment in comparison to Athene’s existing portfolio related to the higher interest rate environment and earlier deployment into assets during the year compared to 2024. These impacts were partially offset by lower floating rate income.
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Investment related gains (losses) were $1.4 billion in 2025, a decrease of $1.7 billion from $3.1 billion in 2024, primarily driven by unfavorable net foreign exchange impacts and an unfavorable change in fair value of FIA hedging derivatives and reinsurance assets, partially offset by a favorable change in fair value of mortgage loans and trading securities. The unfavorable net foreign exchange impacts were primarily related to the weakening of the U.S. dollar against foreign currencies in 2025 compared to 2024, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The change in fair value of FIA hedging derivatives decreased $781 million, primarily driven by less favorable performance of the equity indices upon which Athene’s call options are based. The largest percentage of Athene’s call options are based on the S&P 500 Index, which increased 13.7% in 2025, compared to an increase of 20.8% in 2024. The change in fair value of reinsurance assets decreased $212 million, primarily related to runoff of the underlying investments within Athene’s funds withheld asset and an unfavorable change in credit spreads compared to 2024, partially offset by a larger decrease in U.S. Treasury rates in 2025 compared to 2024. The change in fair value of mortgage loans increased $437 million and the change in fair value of trading securities increased $133 million primarily driven by a larger decrease in U.S. Treasury rates in 2025 compared to 2024.
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Premiums were $351 million in 2025, a decrease of $812 million from $1.2 billion in 2024, primarily driven by an $866 million decrease in pension group annuity premiums, partially offset by an increase in payout premiums compared to 2024.
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Retirement Services expenses were $13.8 billion in 2025, an increase of $1.4 billion from $12.4 billion in 2024. The increase was primarily driven by an increase in interest sensitive contract benefits, an increase in the amortization of DAC, DSI and VOBA, an increase in policy and other operating expenses and an increase in market risk benefits remeasurement (gains) losses, partially offset by a decrease in future policy and other policy benefits. Athene’s annual unlocking of assumptions resulted in a decrease in total benefits and expenses of $55 million compared to an increase of $31 million in 2024. The 2025 unlocking was driven by a decrease of $90 million in interest sensitive contract benefits and a decrease of $59 million in market risk benefits, partially offset by an increase of $53 million related to DAC, DSI and VOBA amortization and an increase of $41 million in future policy and other policy benefits. The 2024 unlocking was driven by an increase of $62 million in market risk benefits, an increase of $21 million related to DAC, DSI and VOBA amortization and an increase of $8 million in interest sensitive contract benefits, partially offset by a decrease of $60 million in future policy and other policy benefits.
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Amortization of DAC, DSI and VOBA was $914 million in 2025, an increase of $236 million from $678 million in 2024, primarily driven by an increase in acquisition costs that are deferred and amortized due to strong growth in Athene’s deferred annuity business as well as an unfavorable change in unlocking. Unlocking in 2025 was $53 million unfavorable mainly related to changes in policyholder behavior and projected interest crediting as well as updated economic and mortality assumptions, while unlocking in 2024 was$21 million unfavorable mainly related to changes to projected interest crediting and policyholder behavior.
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Future policy and other policy benefits were $1.7 billion in 2025, a decrease of $750 million from $2.4 billion in 2024, primarily driven by an $866 million decrease in pension group annuity obligations compared to 2024, partially offset by an unfavorable change in unlocking. Unlocking in 2025 was $41 million unfavorable, consisting of $77 million of unfavorable future policy benefit reserve unlocking, partially offset by $36 million of favorable negative VOBA and deferred profit liability unlocking. The unfavorable unlocking primarily related to updated mortality assumptions and changes in policyholder behavior, partially offset by updated economic assumptions. Unlocking in 2024 was $60 million favorable, consisting of $104 million of favorable future policy benefit reserve unlocking, partially offset by $44 million of unfavorable negative VOBA and deferred profit liability unlocking. The favorable unlocking primarily related to updated mortality assumptions, partially offset by changes in policyholder behavior.
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Income Tax (Provision) Benefit
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The increase in management fees was primarily attributable to management fees earned from Athene, Bridge funds, ADS and AIOF III of $70 million, $20 million, $17 million and $9 million, respectively, partially offset by decreases in management fees earned from Fund IX of $7 million. The increase in management fees earned from Athene was primarily driven by increases in fee-generating AUM as a result of strong organic growth at Athene. Additionally, management fees increased due to the Bridge acquisition. The increase in management fees earned from ADS and AIOF III was primarily driven by increased subscriptions and catch-up management fees for additional closes in 2025, respectively. The decrease in management fees earned from Fund IX was correlated with the fee rate step-down of Fund IX.
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Capital solutions fees earned in 2025 were primarily attributable to fees earned from companies in the (i) manufacturing and industrial, (ii) leisure, (iii) financial services and (iv) natural resources sectors. Capital solutions fees and other, net also included property management and other fees of $10 million net of certain compensation expense of $4 million and non-compensation expense of $2 million.
Previous report
The increase in fee-related performance fees in 2025 was primarily driven by the sustained growth across a variety of perpetual capital vehicles.
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Reworded paragraphs (109)
Previous wording
The following discussion should be read in conjunction with Apollo Global Management, Inc.’s condensed consolidated financial statements and the related notes within this quarterly report. This discussion contains forward-looking statements that are subject to known and unknown risks and uncertainties. Actual results and the timing of events may differ significantly from those expressed or implied in such forward-looking statements due to a number of factors, including those included in the section entitled “Item 1A. Risk Factors” in the 2024 Annual Report. The highlights listed below have had significant effects on many items within our condensed consolidated financial statements and affect the comparison of the current period’s activity with those of prior periods.
Current wording
The following discussion should be read in conjunction with Apollo Global Management, Inc.’s condensed consolidated financial statements and the related notes within this quarterly report. This discussion contains forward-looking statements that are subject to known and unknown risks and uncertainties. Actual results and the timing of events may differ significantly from those expressed or implied in such forward-looking statements due to a number of factors, including those included in the section entitled “Item 1A. Risk Factors” in our 2025 Annual Report. The highlights listed below have had significant effects on many items within our condensed consolidated financial statements and affect the comparison of the current period’s activity with those of prior periods.
Previous wording
Founded in 1990, Apollo is a high-growth, global alternative asset manager and a retirement services provider. Apollo conducts its business primarily in the United States through the following three reportable segments: Asset Management, Retirement Services and Principal Investing. These business segments are differentiated based on the investment services they provide as well as varying investing strategies. As of September 30, 2025, Apollo had a team of 6,104 employees, including 1,997 employees of Athene and 609 employees of Bridge.
Current wording
Founded in 1990, Apollo is a high-growth, global alternative asset manager and a retirement services provider. Apollo conducts its business primarily in the U.S. through the following three reportable segments: Asset Management, Retirement Services and Principal Investing. These business segments are differentiated based on the investment services they provide as well as varying investing strategies.
Previous wording
Our Asset Management segment focuses on credit and equity investing strategies. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company’s capital structure. We raise, invest and manage funds, accounts and other vehicles on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. As of September 30, 2025, we had total AUM of $908 billion.
Current wording
Our Asset Management segment focuses on credit and equity investing strategies. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company’s capital structure. We raise, invest and manage funds, accounts and other vehicles on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. As of March 31, 2026, we had total AUM of $1.03 trillion.
Previous wording
Credit is our largest asset management strategy with $723 billion of AUM as of September 30, 2025. Our credit strategy spans third-party strategies and Apollo’s retirement services business across four main investment pillars: direct origination, asset-backed, multi credit and opportunistic credit. Our credit strategy provides flexible, scaled and diverse capital solutions across the entire credit risk-return spectrum, with a focus on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the investors in the funds we manage.
Current wording
Credit is our largest asset management strategy with $834 billion of AUM as of March 31, 2026. Our credit strategy spans third-party strategies and Apollo’s retirement services business across four main investment pillars: direct origination, asset-backed, multi credit and opportunistic credit. Our credit strategy provides flexible, scaled and diverse capital solutions across the entire credit risk-return spectrum, with a focus on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the investors in the funds we manage.
Previous wording
Our equity strategy managed $185 billion of AUM as of September 30, 2025. Across our equity strategy, we maintain our focus on creative structuring and sourcing while working with the management teams of the portfolio companies of the Apollo-managed funds to help transform and grow their businesses. Our flexible mandate and purchase price discipline allow us to embrace complexity and seek attractive outcomes for our stakeholders. Apollo’s equity team has experience across sectors, industries, and geographies spanning its private equity, hybrid value, secondaries equity, AAA, real estate equity, impact investing, infrastructure and clean transition equity strategies. We have consistently produced attractive long-term investment returns in the traditional private equity funds we manage, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through September 30, 2025.
Current wording
Our equity strategy managed $192 billion of AUM as of March 31, 2026. Across our equity strategy, we maintain our focus on creative structuring and sourcing while working with the management teams of the portfolio companies of the Apollo-managed funds to help transform and grow their businesses. Our flexible mandate and purchase price discipline allow us to embrace complexity and seek attractive outcomes for our stakeholders. Apollo’s equity team has experience across sectors, industries, and geographies spanning its private equity, hybrid value, secondaries equity, AAA, real estate equity, infrastructure and clean transition equity strategies. We have consistently produced attractive long-term investment returns in the traditional private equity funds we manage, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through March 31, 2026.
Previous wording
Our retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene’s primary product line is annuities, which include fixed, payout and group annuities issued in conjunction with pension group annuity transactions and defined contribution plans. Athene also offers funding agreements and guaranteed investment contracts issued in connection with defined contribution plans. Funding agreements are comprised of funding agreements issued under its FABN program, secured and other funding agreements, which include Athene’s FABR program and direct funding agreements, funding agreements issued to the FHLB and repurchase agreements with an original maturity exceeding one year. Our asset management business provides a full suite of services for Athene’s investment portfolio, including direct investment management, asset allocation, mergers and acquisitions asset diligence, and certain operational support services including investment compliance, tax, legal and risk management support.
Current wording
Our retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene’s primary product line is annuities, which include fixed rate, indexed, payout and group annuities issued in connection with pension group annuity transactions and benefit plans. Athene also offers funding agreements and guaranteed investment contracts issued in connection with defined contribution plans. Funding agreements are comprised of funding agreements issued under its FABN program, secured and other funding agreements, which include Athene’s FABR program and direct funding agreements, funding agreements issued to the FHLB and repurchase agreements with an original maturity exceeding one year. Guaranteed investment contracts support stable value investment options within defined contribution plans and allow the contract holder to earn a guaranteed return of principal plus interest. Our asset management business provides a full suite of services for Athene’s investment portfolio, including direct investment management, asset allocation, mergers and acquisitions asset diligence, and certain operational support services including investment compliance, tax, legal and risk management support.
Previous wording
Our Principal Investing segment is comprised of our realized performance fee income, realized investment income from our balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company. The Principal Investing segment also includes our growth capital and liquidity resources at AGM. Over time, we may deploy capital into strategic investments that will help accelerate the growth of our Asset Management segment, by broadening our investment management and/or product distribution capabilities or increasing the efficiency of our operations. We believe these investments may translate into greater compounded annual growth of Fee Related Earnings.
Current wording
Our Principal Investing segment is comprised of our realized performance fee income, realized investment income earned from our balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company. The Principal Investing segment also includes our growth capital and liquidity resources at AGM. Over time, we may deploy capital into strategic investments that will help accelerate the growth of our Asset Management segment, by broadening our investment management and/or product distribution capabilities or increasing the scalability and/or efficiency of our existing operations. We believe these investments may translate into greater compounded annual growth of Fee Related Earnings.
Previous wording
Given the cyclical nature of performance fees, earnings from our Principal Investing segment, or PII, are inherently more volatile in nature than earnings from the Asset Management and Retirement Services segments. We earn fees based on the investment performance of the funds we manage and compensate our employees, primarily investment professionals, with a meaningful portion of these proceeds to align our team with the investors in the funds we manage and incentivize them to deliver strong investment performance over time. To enhance this alignment, we have increased the proportion of performance fee income we pay to our employees over the last few years.
Current wording
Given the cyclical nature of realized performance fees, earnings from our Principal Investing segment, or PII, are inherently more volatile in nature than earnings from the Asset Management and Retirement Services segments. We earn fees based on the investment performance of the funds, partnerships and accounts we manage and compensate our employees, primarily investment professionals, with a meaningful portion of these proceeds to align our team with investors whose capital we manage and incentivize them to deliver strong investment performance over time. To enhance this alignment, we have increased the proportion of performance fee income we pay to our employees over time.
Previous wording
Adverse economic conditions may result from domestic and global economic and political developments, including plateauing or decreasing economic growth and business activity, changes to U.S. and foreign tariff policies, civil unrest, geopolitical tensions or military action, such as the armed conflicts in the Middle East and between Ukraine and Russia, and corresponding sanctions imposed on Russia by the United States and other countries, and new or evolving legal and regulatory requirements on business investment, hiring, migration, labor supply and global supply chains.
Current wording
Adverse economic conditions may result from domestic and global economic and political developments, including plateauing or decreasing economic growth and business activity, changes to U.S. and foreign tariff policies, civil unrest, geopolitical tensions or military action, such as the armed conflicts in the Middle East, including with Iran, and between Ukraine and Russia, and corresponding sanctions, new or evolving legal and regulatory requirements on business investment, hiring, migration, labor supply and global supply chains, and disruptions to the global energy market and supply chains.
Previous wording
The ongoing uncertainty regarding trade policy poses a downside risk to the current economic outlook, with lower growth and higher inflationary pressures increasing the risk of a stagflationary environment. Tariffs, which are inflationary in nature, remain in place and may have a negative impact on GDP growth. The potential impact of tariffs on corporate earnings remains uncertain and will depend on the duration and outcome of related trade negotiations.
Current wording
The ongoing uncertainty regarding U.S. trade policy, the conflict with Iran and continued inflationary pressures pose a downside risk to the current economic outlook. However, solid growth in the U.S. has resulted in the risk of a recession remaining modest. Tariffs, which are inflationary in nature, remain in place and may have a negative impact on GDP growth. The potential impact of tariffs on corporate earnings remains uncertain and will depend on the duration and outcome of related trade negotiations, as well as the legal and regulatory framework governing tariff implementation, which continues to evolve.
Previous wording
We carefully monitor economic and market conditions that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives, which include global inflation. U.S. inflation remains elevated with the U.S. Bureau of Labor Statistics reporting the annual U.S. inflation rate at 3.0% as of September 30, 2025, compared to 2.7% as of June 30, 2025. The U.S. Federal Reserve has a current benchmark interest rate target range of 3.75% to 4.00%, following a rate cut of 25 basis points at both its September and October meetings.
Current wording
We carefully monitor economic and market conditions, including global inflation, that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives. U.S. inflation remains elevated, with the U.S. Bureau of Labor Statistics reporting the annual U.S. inflation rate increased to 3.3% as of March 31, 2026, compared to 2.7% as of December 31, 2025. The U.S. Federal Reserve has a current benchmark interest rate target range of 3.50% to 3.75%, unchanged from its December 2025 meeting.
Previous wording
Equity market performance was strong during the third quarter of 2025. In the U.S., the S&P 500 Index increased by 7.8% during the third quarter of 2025, following an increase of 10.6% in the second quarter of 2025. Global equity markets increased during the quarter, with the MSCI All Country World ex USA Index increasing by 5.4%, following an increase of 12.3% in the second quarter of 2025.
Current wording
Equity market performance declined during the first quarter of 2026. In the U.S., the S&P 500 Index decreased by 4.6% during the first quarter of 2026, following an increase of 2.3% in the fourth quarter of 2025. Global equity markets decreased during the quarter, with the MSCI All Country World ex USA Index decreasing by 0.8%, following an increase of 5.3% in the fourth quarter of 2025.
Previous wording
Conditions in the credit markets also have a significant impact on our business. Credit markets were positive in the third quarter of 2025, with the BofAML HY Master II Index increasing by 2.4%, while the Morningstar/LSTA Leveraged Loan Index increased by 2.0%.
Current wording
Conditions in the credit markets may have a significant impact on our business. Credit fundamentals are improving: default rates in both high yield and leveraged loans are declining, distressed exchanges are easing, and at this time a broad credit cycle deterioration does not appear likely. Credit markets experienced slight decreases in the first quarter of 2026, with the BofAML HY Master II Index decreasing by 0.5%, while the Morningstar/LSTA Leveraged Loan Index decreased by 0.8%.
Previous wording
In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP increased 3.8% in the second quarter of 2025, the latest date this data is available. As of October 2025, the International Monetary Fund estimated the U.S. economy will expand by 2.0% in 2025 and 2.1% in 2026. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate increased to 4.3% as of August 31, 2025, the latest date this data is available.
Current wording
In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP increased at an annual rate of 2.0% in the first quarter of 2026, following an increase of 0.5% in the fourth quarter of 2025. As of April 2026, the International Monetary Fund estimated the U.S. economy will expand by 2.3% in 2026 and 2.1% in 2027. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate decreased to 4.3% as of March 31, 2026.
Previous wording
Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. The U.S. dollar strengthened in the third quarter of 2025 compared to the euro and the British pound. Relative to the U.S. dollar, the euro depreciated 0.5% during the third quarter of 2025, after appreciating 9.0% in the second quarter of 2025, while the British pound depreciated 2.1% during the third quarter of 2025, after appreciating 6.3% in the second quarter of 2025. Oil finished the third quarter of 2025 down 4.2% from the second quarter of 2025.
Current wording
Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. Strong foreign demand for U.S. assets remains an important support for the U.S. dollar. The U.S. dollar strengthened in the first quarter of 2026 compared to the euro and the British pound. Relative to the U.S. dollar, the euro depreciated 1.6% during the first quarter of 2026, after appreciating 0.1% in the fourth quarter of 2025, while the British pound depreciated 1.8% during the first quarter of 2026, after appreciating 0.2% in the fourth quarter of 2025. Oil finished the first quarter of 2026 up 76.6% from the fourth quarter of 2025, primarily related to the ongoing conflict with Iran.
Previous wording
We are actively monitoring the developments in Ukraine resulting from the Russia/Ukraine conflict and the economic sanctions and restrictions imposed against Russia, Belarus, and certain Russian and Belarussian entities and individuals. The Company continues to (i) identify and assess any exposure to designated persons or entities across the Company’s business; (ii) ensure existing surveillance and controls are calibrated to the evolving sanctions; and (iii) ensure appropriate levels of communication across the Company, and with other relevant market participants, as appropriate.
Current wording
We are actively monitoring the developments in Ukraine resulting from the Russia/Ukraine conflict and the economic sanctions and restrictions imposed against Russia, Belarus, and certain Russian and Belarusian entities and individuals. The Company continues to (i) identify and assess any exposure to designated persons or entities across the Company’s business; (ii) ensure existing surveillance and controls are calibrated to the evolving sanctions; and (iii) ensure appropriate levels of communication across the Company, and with other relevant market participants, as appropriate.
Previous wording
Institutional investors continue to allocate capital towards alternative investment managers in search of more attractive returns, and we believe the business environment remains generally accommodative to raise larger successor funds, launch new products, and pursue attractive strategic growth opportunities.
Current wording
Institutional investors continue to allocate capital towards alternative investment managers in search of more attractive returns, and we believe the business environment remains generally accommodative to raise larger successor funds, launch new products, and pursue attractive strategic growth opportunities and addressable markets.
Previous wording
Medium and long-term rates decreased during the third quarter of 2025 with the U.S. 10-year Treasury yield at 4.16% as of September 30, 2025, compared to 4.24% as of June 30, 2025. Short-term rates decreased during the third quarter of 2025, with the 3-month secured overnight financing rate at 3.98% as of September 30, 2025 compared to 4.29% as of June 30, 2025.
Current wording
Medium and long-term rates increased during the first quarter of 2026, with the U.S. 10-year Treasury yield at 4.30% as of March 31, 2026, compared to 4.18% as of December 31, 2025. Short-term rates increased during the first quarter of 2026, with the 3-month secured overnight financing rate at 3.68% as of March 31, 2026, compared to 3.65% as of December 31, 2025.
Previous wording
Athene addresses interest rate risk through managing the duration of the liabilities it sources with assets it acquires through asset liability management (“ALM”) modeling. As part of its investment strategy, Athene purchases floating rate investments, which are expected to perform well in a rising interest rate environment and are expected to underperform in a declining rate environment. Athene manages its interest rate risk in a declining rate environment through hedging activity or the issuance of additional floating rate liabilities to lower its overall net floating rate position. As of September 30, 2025, Athene’s net invested asset portfolio included $49.8 billion of floating rate investments, or 17% of its net invested assets, and its net reserve liabilities included $43.8 billion of floating rate liabilities at notional, or 15% of its net invested assets, resulting in $6.0 billion of net floating rate assets, or 2% of its net invested assets.
Current wording
Athene addresses interest rate risk through managing the duration of the liabilities it sources with assets it acquires through asset liability management (“ALM”) modeling. As part of its investment strategy, Athene purchases floating rate investments, which are expected to perform well in a rising interest rate environment and are expected to underperform in a declining rate environment. Athene manages its interest rate risk in a declining rate environment through hedging activity or the issuance of additional floating rate liabilities to lower its overall net floating rate position. As of March 31, 2026, Athene’s net invested asset portfolio included $53.1 billion of floating rate investments, or 18% of its net invested assets, and its net reserve liabilities included $49.8 billion of floating rate liabilities at notional, or 17% of its net invested assets, resulting in $3.3 billion of net floating rate assets, or 1% of its net invested assets.
Previous wording
If prevailing interest rates were to rise, we believe Athene’s products would be more attractive to consumers and its sales would likely increase. If prevailing interest rates were to decline, it is likely that Athene’s products would be less attractive to consumers and its sales would likely decrease. In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent that Athene is unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions. A significant majority of Athene’s deferred annuity products have crediting rates that it may reset annually upon renewal, following the expiration of the current guaranteed period. While Athene has the contractual ability to lower these crediting rates to the guaranteed minimum levels at renewal, its willingness to do so may be limited by competitive pressures. Athene’s funding agreements and other investment-type products, the latter of which is comprised of immediate annuities without significant mortality risk (including pension group annuities without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks, provide little to no discretionary ability to change the rates of interest that determine the amounts payable to the respective policyholder or institution.
Current wording
If prevailing interest rates were to rise, we believe Athene’s products would be more attractive to consumers and its sales would likely increase. If prevailing interest rates were to decline, it is likely that Athene’s products would be less attractive to consumers and its sales would likely decrease. In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent Athene is unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions. A significant majority of Athene’s deferred annuity products have crediting rates that it may reset annually upon renewal, following the expiration of the current guaranteed period. While Athene has the contractual ability to lower these crediting rates to the guaranteed minimum levels at renewal, its willingness to do so may be limited by competitive pressures. Athene’s funding agreements and other investment-type products provide little to no discretionary ability to change the rates of interest that determine the amounts payable to the respective policyholder or institution. Other investment-type products include immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.
Previous wording
As of September 30, 2025, approximately 39% of the value of the investments of the funds we manage, on a gross basis, was determined using market-based valuation methods (i.e., reliance on broker or listed exchange quotes) and the remaining 61% was determined primarily by comparable company and industry multiples or discounted cash flow models. See “Item 1A. Risk Factors—Risks Relating to Our Asset Management Business—The performance of the funds we manage, and our performance, may be adversely affected by the financial performance of portfolio companies of the funds we manage and the industries in which the funds we manage invest” in the 2024 Annual Report for discussion regarding certain industry-specific risks that could affect the fair value of certain of the portfolio company investments of the funds we manage.
Current wording
As of March 31, 2026, approximately 32% of the value of the investments of the funds we manage, on a gross basis, was determined using market-based valuation methods (i.e., reliance on broker or listed exchange quotes) and the remaining 68% was determined primarily by comparable company and industry multiples or discounted cash flow models. See “Item 1A. Risk Factors—Risks Relating to Our Asset Management Business—The performance of the funds we manage, and our performance, may be adversely affected by the financial performance of portfolio companies of the funds we manage and the industries in which the funds we manage invest” in our 2025 Annual Report for discussion regarding certain industry-specific risks that could affect the fair value of certain of the portfolio company investments of the funds we manage.
Previous wording
Universal life-type policies and investment contracts include traditional deferred annuities; indexed annuities consisting of fixed indexed, index-linked variable annuities in the accumulation phase, and assumed indexed universal life without significant mortality risk; funding agreements; immediate annuities without significant mortality risk (which include pension group annuities without life contingencies); universal life insurance; and other investment contracts inclusive of assumed endowments without significant mortality risk. Liabilities for traditional deferred annuities, indexed annuities, funding agreements and universal life insurance are carried at the account balances without reduction for potential surrender or withdrawal charges, except for a block of universal life business ceded to Global Atlantic Financial Group Limited (together with its subsidiaries, “Global Atlantic”), which is carried at fair value. Fixed indexed annuity, index-linked variable annuity and indexed universal life insurance contracts contain an embedded derivative. Benefit reserves for these contracts are reported as the sum of the fair value of the embedded derivative and the host (or guaranteed) component of the contracts. The fair value of the embedded derivatives represents the present value of cash flows attributable to the indexed strategies. The host contract is established at contract inception as the initial account value less the initial fair value of the embedded derivative and accreted over the policy’s life. Liabilities for immediate annuities without significant mortality risk are calculated as the present value of future liability cash flows and policy maintenance expenses discounted at contractual interest rates. Certain contracts are offered with additional contract features that meet the definition of a market risk benefit. See “—Market risk benefits remeasurement (gains) losses” below for further information.
Current wording
Interest sensitive contract liabilities are typically associated with universal life-type policies and investment contracts. Universal life-type policies and investment contracts include traditional deferred annuities (which include individual and group deferred annuities); indexed annuities consisting of fixed indexed, index-linked variable annuities in the accumulation phase, and assumed indexed universal life without significant mortality risk; funding agreements; immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies); universal life insurance; and other investment contracts inclusive of guaranteed investment contracts and assumed endowments without significant mortality risk. Liabilities for traditional deferred annuities, indexed annuities and universal life insurance are carried at the account balances without reduction for potential surrender or withdrawal charges, except for a block of universal life business ceded to Global Atlantic Financial Group Limited (together with its subsidiaries, “Global Atlantic”), which is carried at fair value. Fixed indexed annuity, index-linked variable annuity and indexed universal life insurance contracts contain an embedded derivative. Benefit reserves for these contracts are reported as the sum of the fair value of the embedded derivative and the host (or guaranteed) component of the contracts. The fair value of the embedded derivatives represents the present value of cash flows attributable to the indexed strategies. The host contract is established at contract inception as the initial account value less the initial fair value of the embedded derivative and accreted over the policy’s life. Liabilities for immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), funding agreements, assumed endowments without significant mortality risk and guaranteed investment contracts are calculated as the present value of future liability cash flows and policy maintenance expenses, if any, discounted at contractual interest rates. Certain contracts are offered with additional contract features that meet the definition of a market risk benefit. See “—Market risk benefits remeasurement (gains) losses” below for further information.
Previous wording
Athene issues or reinsures contracts classified as long-duration, which include term and whole life, accident and health, disability, and deferred and immediate annuities with life contingencies (which include pension group annuities with life contingencies).
Current wording
Athene issues or reinsures contracts classified as long-duration, which include term and whole life, accident and health, disability, and deferred and immediate annuities with life contingencies (which include pension group annuities and structured settlements with life contingencies).
Previous wording
Changes in fair value of market risk benefits are recorded in market risk benefits remeasurement (gains) losses on the condensed consolidated statements of operations, excluding portions attributed to changes in instrument-specific credit risk, which are recorded in OCI on the condensed consolidated statements of comprehensive income (loss). Ceded market risk benefits are measured at fair value and recorded within reinsurance recoverable on the condensed consolidated statements of financial condition.
Current wording
Changes in the fair value of market risk benefits are recorded in market risk benefits remeasurement (gains) losses on the condensed consolidated statements of operations, excluding portions attributed to changes in instrument-specific credit risk, which are recorded in OCI on the condensed consolidated statements of comprehensive income (loss). Ceded market risk benefits are measured at fair value and recorded within reinsurance recoverable on the condensed consolidated statements of financial condition.
Previous wording
Adjusted Net Income (“ANI”) represents Segment Income less HoldCo interest and other financing costs and estimated income taxes. For purposes of calculating the Adjusted Net Income tax rate, Segment Income is reduced by HoldCo interest and financing costs. Income taxes on FRE and PII represents the total current corporate, local, and non-U.S. taxes as well as the current payable under Apollo’s tax receivable agreement. Income taxes on FRE and PII excludes the impacts of deferred taxes and the remeasurement of the tax receivable agreement, which arise from changes in estimated future tax rates. Certain assumptions and methodologies that impact the implied FRE and PII income tax provision are similar to those used under U.S. GAAP. Specifically, certain deductions considered in the income tax provision under U.S. GAAP relating to transaction-related costs, equity-based compensation, charitable contributions and tax deductible interest expense are taken into account for the implied tax provision. Income Taxes on SRE represent the total current and deferred tax expense or benefit on income before taxes adjusted to eliminate the impact of the tax expense or benefit associated with the non-operating adjustments. Management believes the methodologies used to compute income taxes on FRE, SRE, and PII are meaningful to each segment and increases comparability of income taxes between periods.
Current wording
Adjusted Net Income (“ANI”) represents Segment Income less HoldCo interest and other financing costs and estimated income taxes. For purposes of calculating the Adjusted Net Income tax rate, Segment Income is reduced by HoldCo interest and financing costs. Income taxes on FRE and PII represents the total current corporate, local, and non-U.S. taxes as well as the current amounts payable under Apollo’s tax receivable agreement. Income taxes on FRE and PII excludes the impacts of deferred taxes and the remeasurement of the tax receivable agreement, which arise from changes in estimated future tax rates. Certain assumptions and methodologies that impact the implied FRE and PII income tax provision are similar to those used under U.S. GAAP. Specifically, certain deductions considered in the income tax provision under U.S. GAAP relating to transaction-related costs, equity-based compensation, charitable contributions and tax deductible interest expense are taken into account for the implied tax provision. Income Taxes on SRE represent the total current and deferred tax expense or benefit on income before taxes adjusted to eliminate the impact of the tax expense or benefit associated with the non-operating adjustments. Management believes the methodologies used to compute income taxes on FRE, SRE, and PII are meaningful to each segment and increases comparability of income taxes between periods.
Previous wording
Spread Related Earnings, or “SRE”, is a component of Segment Income that is used to assess the performance of the Retirement Services segment, excluding certain market volatility, which consists of investment gains (losses), net of offsets and non-operating change in insurance liabilities and related derivatives, and certain expenses related to integration, restructuring, equity-based compensation, and other expenses.
Current wording
Spread Related Earnings, or “SRE”, is a component of Segment Income that is used to assess the performance of the Retirement Services segment, excluding certain market volatility, which consists of investment gains (losses), net of offsets and non-operating change in insurance liabilities and related derivatives, and certain expenses related to integration, restructuring, and equity-based compensation, as well as other items.
Previous wording
In managing its business, Athene analyzes net invested assets, which does not correspond to total Athene investments, including investments in related parties, as disclosed in the condensed consolidated statements of financial condition and notes thereto. Net invested assets represent the investments that directly back Athene’s net reserve liabilities, as well as surplus assets. Net invested assets is used in the computation of net investment earned rate, which is used to analyze the profitability of Athene’s investment portfolio. Net invested assets include (a) total investments on the condensed consolidated statements of financial condition with AFS securities, trading securities and mortgage loans at cost or amortized cost, excluding derivatives, (b) cash and cash equivalents and restricted cash, (c) investments in related parties, (d) accrued investment income, (e) VIE and VOE assets, liabilities and non-controlling interest adjustments, (f) net investment payables and receivables, (g) policy loans ceded (which offset the direct policy loans in total investments) and (h) an adjustment for the allowance for credit losses. Net invested assets exclude the derivative collateral offsetting the related cash positions. Athene includes the underlying investments supporting its assumed funds withheld and modco agreements and excludes the underlying investments related to ceded reinsurance transactions in its net invested assets calculation in order to match the assets with the income received. Athene believes the adjustments for reinsurance provide a view of the assets for which it has economic exposure. Net invested assets include Athene’s proportionate share of ACRA investments, based on its economic ownership, but do not include the proportionate share of investments associated with the non-controlling interests. Net invested assets are averaged over the number of quarters in the relevant period to compute a net investment earned rate for such period. While Athene believes net invested assets is a meaningful financial metric and enhances the understanding of the underlying drivers of its investment portfolio, it should not be used as a substitute for Athene’s total investments, including related parties, presented under U.S. GAAP.
Current wording
In managing its business, Athene analyzes net invested assets, which does not correspond to total Athene investments, including investments in related parties, as disclosed in the condensed consolidated statements of financial condition and notes thereto. Net invested assets represent the investments that directly back Athene’s net reserve liabilities, as well as surplus assets. Net invested assets is used in the computation of net investment earned rate, which is used to analyze the profitability of Athene’s investment portfolio. Net invested assets include (a) total investments on the condensed consolidated statements of financial condition with AFS securities, trading securities and mortgage loans at cost or amortized cost, excluding derivatives, (b) cash and cash equivalents and restricted cash, (c) investments in related parties, (d) accrued investment income, (e) VIE and VOE assets, liabilities and non-controlling interest adjustments, (f) net investment payables and receivables, (g) policy loans ceded (which offset the direct policy loans in total investments) and (h) an adjustment for the allowance for credit losses. Net invested assets exclude the derivative collateral offsetting the related cash positions. Athene includes the underlying investments supporting its assumed funds withheld and modco agreements and excludes the underlying investments related to ceded reinsurance transactions in its net invested assets calculation to match the assets with the income received. Athene believes the adjustments for reinsurance provide a view of the assets for which it has economic exposure. Net invested assets include Athene’s proportionate share of ACRA investments, based on its economic ownership, but do not include the proportionate share of investments associated with the non-controlling interests. Net invested assets are averaged over the number of quarters in the relevant period to compute a net investment earned rate for such period. While Athene believes net invested assets is a meaningful financial metric and enhances the understanding of the underlying drivers of its investment portfolio, it should not be used as a substitute for Athene’s total investments, including related parties, presented under U.S. GAAP.
Previous wording
Below is a discussion of our condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024. For additional analysis of the factors that affected our results at the segment level, see “—Segment Analysis” below:
Current wording
Below is a discussion of our condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025. For additional analysis of the factors that affected our results at the segment level, see “—Segment Analysis” below:
Previous wording
Investment income increased by $214 million in 2025 to $444 million compared to $230 million in 2024. The increase in investment income was primarily driven by an increase in performance allocations of $217 million.
Current wording
Investment income (loss) decreased by $380 million in 2026 to $(77) million compared to $303 million in 2025. The decrease in investment income (loss) was primarily driven by a decrease in performance allocations of $345 million.
Previous wording
Significant drivers for performance allocations in 2025 were performance allocations primarily earned from Fund X, Credit Strategies, HVF II, Fund IX, Redding Ridge Holdings and Accord+ II of $109 million, $62 million, $42 million, $37 million, $32 million and $23 million, respectively.
Current wording
Significant drivers for performance allocations in 2026 were performance allocation losses primarily from Fund VIII, Fund IX and AIOF II of $107 million, $61 million and $32 million, respectively, partially offset by performance allocations earned from Credit Strategies, HVF II, Fund X, Redding Ridge Holdings and Freedom Parent Holdings of $41 million, $33 million, $31 million, $21 million and $11 million, respectively.
Previous wording
The performance allocation losses from Fund IX in 2025 were primarily driven by the depreciation of the fund’s investments in the (i) consumer services, (ii) media, telecom and technology and (iii) manufacturing and industrial sectors.
Current wording
The performance allocation losses from Fund IX in 2026 were primarily driven by the depreciation of the fund’s investments in the (i) consumer services, (ii) consumer and retail and (iii) media, telecom and technology sectors.
Previous wording
The performance allocations earned from HVF II in 2025 were primarily driven by the appreciation and realization of the fund’s investments in private portfolio companies in the (i) consumer and retail, (ii) manufacturing and industrial, and (iii) transportation and logistics sectors.
Current wording
The performance allocation losses from AIOF II in 2026 were primarily driven by the depreciation of the fund’s investments in the transportation and logistics sectors.
Previous wording
The performance allocations earned from HVF II in 2025 were primarily driven by the appreciation and realization of the fund’s investments in private portfolio companies in the (i) manufacturing and industrial, (ii) transportation and logistics and (iii) consumer and retail sectors.
Current wording
The performance allocations earned from HVF II in 2026 were primarily driven by the appreciation and realization of the fund’s investments in the (i) consumer and retail, (ii) manufacturing and industrial and (iii) transportation and logistics sectors.
Previous wording
The performance allocations earned from Fund X in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) manufacturing and industrial, (ii) consumer and retail and (iii) consumer services sectors.
Current wording
The performance allocations earned from Fund X in 2026 were primarily driven by the appreciation and realization of the fund’s investments in the (i) consumer services, (ii) manufacturing and industrial and (iii) consumer and retail sectors.
Previous wording
Management fees increased by $321 million to $1,697 million in 2025 from $1,376 million in 2024. The increase in management fees was primarily attributable to management fees earned from Atlas, ADS, Apollo S3 Equity and Hybrid Solutions Fund, L.P. (“S3 Equity and Hybrid Solutions”), Bridge funds and AIOF III of $97 million, $58 million, $44 million, $20 million and $20 million, respectively, partially offset by decreases in management fees earned from Fund IX and Fund VIII of $26 million and $13 million, respectively. Management fees in 2025 also benefited from increased management fees earned from certain strategic separately managed accounts. The increase in management fees earned from Atlas and ADS was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities and an increase in subscriptions, respectively. The increase in management fees earned from S3 Equity and Hybrid Solutions and AIOF III was driven by catch-up management fees on additional closes. Additionally, management fees increased due to the Bridge acquisition. The decrease in management fees earned from Fund IX and Fund VIII were correlated with the fee rate step-down of Fund IX and the expiration of Fund VIII’s fee-paying period, respectively.
Current wording
Management fees increased by $188 million to $696 million in 2026 from $508 million in 2025. The increase in management fees was primarily attributable to $129 million of aggregate management fees earned from Bridge funds, Atlas, ADS, Redding Ridge Holdings and Apollo Asset-Backed Finance Fund, L.P. (“ABF”), partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $9 million. Management fees in 2026 also benefited from increased management fees earned from certain strategic separately managed accounts. The increase in management fees earned from Bridge funds was due to the Bridge acquisition, while the increase from Atlas was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities. The increase in management fees earned from ADS and ABF was primarily driven by an increase in subscriptions. Further, the increase in management fees earned from Redding Ridge Holdings was primarily driven by a fee basis adjustment, resulting from a change to the fee calculation in 2026. The decrease in management fees earned from S3 Equity and Hybrid Solutions was primarily related to the catch-up management fees for additional closes in 2025.
Previous wording
Advisory and transaction fees, net increased by $197 million to $378 million in 2025 from $181 million in 2024. Advisory and transaction fees earned during 2025 were primarily attributable to advisory and transaction fees earned from companies in the (i) financial services, (ii) manufacturing and industrial, (iii) leisure and (iv) natural resources sectors.
Current wording
Advisory and transaction fees, net increased by $111 million to $306 million in 2026 from $195 million in 2025. Advisory and transaction fees earned during 2026 were primarily attributable to advisory and transaction fees earned from our opportunistic credit, direct origination, multi-credit, infrastructure and clean transition equity and private equity strategies.
Previous wording
Incentive fees increased by $16 million to $51 million in 2025 from $35 million in 2024, primarily attributable to sustained growth across a variety of perpetual capital vehicles.
Current wording
Incentive fees increased by $24 million to $64 million in 2026 from $40 million in 2025, primarily attributable to sustained growth across a variety of perpetual capital vehicles.
Previous wording
Expenses were $1,234 million in 2025, an increase of $248 million from $986 million in 2024, primarily due to increases in total compensation and benefits, general, administrative and other, and interest expense.
Current wording
Expenses were $1.2 billion in 2026, an increase of $114 million from $1.1 billion in 2025, primarily due to increases in general, administrative and other and interest expense, partially offset by a decrease in total compensation and benefits.
Previous wording
General, administrative and other expenses were $1,087 million in 2025, an increase of $202 million from $885 million in 2024. The increase in 2025 was primarily driven by increases in professional fees, depreciation and amortization expenses, higher placement fees, travel and entertainment expenses, and recruitment fees.
Current wording
General, administrative and other expenses were $439 million in 2026, an increase of $131 million from $308 million in 2025. The increase in 2026 was primarily driven by increases in professional fees, depreciation and amortization expenses, technology expenses and travel and entertainment expenses.
Previous wording
Interest expense was $184 million in 2025, an increase of $25 million from $159 million in 2024. The increase in 2025 was primarily driven by higher interest rates from additional debt issuances in 2025 and the fourth quarter of 2024, partially offset by debt repayments.
Current wording
Interest expense was $77 million in 2026, an increase of $17 million from $60 million in 2025. The increase in 2026 was primarily driven by higher interest rates from additional debt issuances in the full year 2025, partially offset by debt repayments.
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Previous report — wording carried elsewhere
See below for details on the respective performance allocations in 2025.
Previous report — wording carried elsewhere
The performance allocations earned from Credit Strategies in 2025 were primarily driven by the net income generated by the fund’s investments.
Previous report — wording carried elsewhere
The performance allocations earned from Redding Ridge Holdings in 2025 were primarily driven by existing and new CLO issuances, resets, accumulation of warehouse assets, the acquisition of Irradiant Partners LP, new consulting contracts and the net income generated by the vehicle’s strategic investments.
Previous report — wording carried elsewhere
Total compensation and benefits were $2,108 million in 2025, an increase of $232 million from $1,876 million in 2024, primarily due to an increase in salary, bonus and benefits and equity-based compensation of $181 million and $46 million, respectively. The increase in salary, bonus and benefits of $181 million was primarily driven by the growth in revenues and increased headcount in 2025. The increase in equity-based compensation of $46 million was primarily due to the issuance of restricted stock awards that did not require future service in connection with the Bridge acquisition. Equity-based compensation expense, in any given period, is generally comprised of: (i) performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and (ii) the impact of the 2021 one-time grants awarded to the then Co-Presidents of AAM, all of which vest on a cliff basis subject to continued employment over five years, and a portion of which also vest on the Company’s achievement of FRE and SRE per share metrics.
Previous report — wording carried elsewhere
The Company’s income tax provision was $684 million and $1 billion in 2025 and 2024, respectively. The change to the provision was primarily related to the decline in pretax income subject to tax. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 13.9% and 17.5% for 2025 and 2024, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) foreign, state and local income taxes, including NYC UBT, (ii) income attributable to non-controlling interests, (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m), and (iv) Bermuda CIT. See note 11 to the condensed consolidated financial statements for further details regarding the Company’s income tax provision.
Previous report — wording carried elsewhere
FRE was $1,838 million in 2025, an increase of $329 million compared to $1,509 million in 2024. This increase was primarily attributable to growth in fee related revenues, including management fees, capital solutions fees and other, net and fee-related performance fees.
Previous report — wording carried elsewhere
The growth in fee related revenues was offset, in part, by higher fee-related compensation expense and non-compensation expenses. Higher fee-related compensation expense in 2025 was driven by strong growth in fee related revenues and increased headcount as a result of our investment in the next phase of our growth. The increase in non-compensation expenses in 2025 was primarily driven by increases in professional fees, placement fees and consulting fees.
Previous report — wording carried elsewhere
•$(4.9) billion related to the funds we manage in our credit strategy, largely driven by distributions from the direct origination and asset-backed finance funds.
Previous report — wording carried elsewhere
•Realizations of $(6.0) billion across the credit and equity strategies.
Previous report — wording carried elsewhere
Net investment spread was 1.61% in 2025, a decrease of 15 basis points compared to 1.76% in 2024, primarily driven by higher cost of funds, partially offset by a higher net investment earned rate.