Apollo Projects $10 Billion of Annual Earnings in Five Years
(Bloomberg) -- Apollo Global Management Inc. expects to generate $10 billion of annual earnings across its asset management and retirement businesses by 2029, driven by investor demand for private credit and annuities.
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Fee-related earnings are forecast to grow 20% on average annually for the next five years, while earnings at its Athene insurance arm will increase 10%, Apollo said Tuesday in an investor presentation.
Apollo Chief Executive Officer Marc Rowan touted retirement, wealth and infrastructure — including the transition to renewable energy — as the new tailwinds that will drive the firm’s growth.
“At the end of the day, private will win over public,” Rowan said at the firm’s investor day, referring to faster growth in private markets versus public markets and banks.
The firm expects adjusted net income of $15 a share in five years, while annual origination volume is anticipated to increase to at least $275 billion, up from $164 billion over the 12 months ended June 30.
Apollo forecasts assets under management to increase to $1.5 trillion by 2029 and remains on track to reach its prior goal of $1 trillion by 2026. The firm oversaw $696 billion as of June 30.
The alternative asset manager was founded as a private equity firm in 1990 and over the years has expanded into credit, insurance, capital solutions and wealth management. Rowan has identified origination — the business of structuring private credit investments to sell to Athene and other investors — as the firm’s most important driver of growth. Apollo has roughly 4,000 employees across its 16 origination businesses, which include MidCap Financial and Atlas SP.
The firm expects to raise at least $150 billion for its global wealth business by 2029. It sees a $150 trillion market opportunity in individual investors, with about 50% of that coming from family offices and 2% from high-net-worth people.
Organic annual inflows into the firm will top $150 billion within five years, according to New York-based Apollo’s targets.
(Updates with CEO’s comments starting in third paragraph.)
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