Apollo Global Management, Inc.

Apollo said Q2 2026 fee-related earnings were a record $785 million, up 25% year over year and 8% sequentially, and spread-related earnings were a record $877 million, up 11% year over year on an adjusted basis and 5% quarter over quarter. Adjusted net income was $1.3 billion, or $2.11 per share. FRE margin was 58.5%, up about 120 basis points year over year, and Athene gross invested assets were $414 billion, up 14% year over year. Origination totaled $74 billion, capital formation was a record $60 billion of organic inflows, and Athene posted $22 billion of inflows. For the full year, management reiterated 20%+ FRE growth, about 100 basis points of FRE margin expansion, $85 billion of Athene inflows, and 10% SRE growth, assuming an 11% alternatives return.

Marc Rowan framed the quarter as a story of momentum across origination, capital formation, and earnings. He argued that Apollo is benefiting from a broader shift in private markets toward investment-grade credit, daily pricing, market making, and greater transparency, which he believes will open the asset class to more investor types. His tone was highly confident and strategic, emphasizing that Apollo is trying to meet new buyers where they are rather than forcing them into old private-fund structures.

Martin Kelly highlighted that the quarter’s earnings strength was driven by management fees and capital solutions fees, with management fees up 23% year over year and capital solutions fees reaching $277 million. He said Apollo has $82 billion of dry powder, including $62 billion of future management-fee potential, and estimated that capital could support about $400 million of annual management fee income once deployed. He also said fee-related expenses rose 19% year over year, FRE margin was 58.5%, and year-to-date margin expansion of about 90 basis points is tracking toward roughly 100 basis points for full-year 2026. On capital return, he noted about $100 million of share repurchases in the quarter and $1.6 billion returned to shareholders over the last 12 months through dividends and buybacks.

Analysts focused on the durability of ACS fees, the M&A outlook, the benefits of daily NAV pricing, competitive pressure in retail annuities, and whether Apollo can keep expanding margins while investing in technology and distribution. Management said ACS is becoming more durable because origination now feeds management fees, Athene spread earnings, and ACS fees, with Broadcom cited as an example of a large, multi-quarter fee stream. On M&A, Marc Rowan said Apollo is not a big believer in buying more asset managers and would rather expand into adjacent businesses. On competition and regulation in annuities, Rowan said Cayman-style regulatory arbitrage is pressuring the industry but that new NAIC proposals could make competition more rational; he also said Apollo remains focused on earning spread and can adjust volumes if conditions worsen.