Apollo debt deal fees and insurance earnings rise, asset sales drag

Apollo started as a private equity firm in 1990 and has since pushed hard into credit and insurance, helping swell its total assets under management to $1.05 trillion at end-June.

More stable income streams from arranging deals and investing insurance premiums surpassed expectations, Piper Sandler analysts said. But the headline figure was weighed down by principal investing income, which reflects profits from divestments.

Apollo's fee-related earnings rose 25% to $785 million, while the spread earned on insurance assets rose 7% to $877 million. It said those metrics broke quarterly records, boosted by fees from offering direct loans and asset-backed finance.