Apollo Global Management’s first quarter net income dropped by eight percent year-on-year, failing to meet expectations, as the increase in management fees and investment income could not soften the blow of the drop in asset sales, said Apollo on Tuesday.
Apollo’s earnings were affected by the shortage in dealmaking during the quarter, as it was challenging to cash out of its private equity holdings for top dollar, but the problem was soften by asset management and retirement businesses.
Apollo’s adjusted net income decreased by $845 million the previous year, which resulted in adjusted net income per share of $1.42, bellow predictions of $1.47, its income from performance fees also fell by 96 percent, Apollo said.
Apollo generated nearly $400 million in fee-related earnings, a quarterly record that was up 28 percent from the previous year, driven by strong growth in management fees as it amassed more assets.
Its earnings from investing the assets of Athene increased by two percent, which was boosted by the increase in interest rates.
