Apollo’s AUM Hits $938bn as Earnings Rise – FT Analysis

Apollo Global Management reported a strong finish to 2025, with assets under management (AUM) reaching a record $938 billion, driven by nearly $30 billion in net inflows during the fourth quarter. While earnings beat expectations on the strength of its asset management business, net income declined compared to the prior year.

The New York-based firm’s fee-related earnings rose 25% year-over-year to $690 million, exceeding Wall Street estimates. This increase was fueled by a 27% jump in management fees and a 41% rise in fees generated from deal origination and syndication within its capital markets arm. Apollo’s ability to deploy capital also reached a record level during the quarter, further bolstering its revenue streams.

“Apollo’s fourth-quarter results capped a year of exceptional execution,” said Apollo Chief Executive Marc Rowan in a statement. He highlighted the firm’s role in “financing the industrial renaissance, advancing retirement solutions or enabling new buyers to access private markets at scale.”

However, net income fell 55% to $660 million, or $1.07 per share, falling short of analyst forecasts. Despite this decline, the company’s board authorized a $4 billion share buyback program, signaling confidence in its future prospects.

Apollo’s Athene insurance unit, a key driver of its growth, saw a moderation in annuity sales to individual investors. Retail annuity sales totaled $34 billion for the year, including $7.3 billion in the fourth quarter, down from $36 billion in 2024. In response, Athene has increasingly turned to the funding agreement market to secure relatively inexpensive capital for investment in credit markets.

Capital raised through funding agreements reached $35.4 billion in 2025, including $2.8 billion in the fourth quarter, up from $29 billion in 2024. The spread income earned from managing insurance assets also improved, rising 3% to $865 million during the quarter.

Investors are keenly awaiting further insights from Rowan regarding Apollo’s exposure to the software industry, which has experienced a broad-based sell-off in recent months. The Financial Times previously reported that Apollo had reduced its exposure to software loans, expressing concerns about the sector’s outlook amid the rapid advancement of artificial intelligence. Rowan stated on a previous earnings call that the firm was in “risk reduction mode” regarding this sector.

Year-to-date, shares of Apollo Global have fallen 8%, underperforming the benchmark S&P 500 index but outperforming competitors such as Ares Management, Blackstone, Blue Owl, and KKR.

Looking ahead, Apollo’s success will likely hinge on its ability to continue attracting capital, particularly in its high-margin asset management and insurance businesses. The firm’s focus on areas like AI infrastructure, energy transition, and climate projects positions it to capitalize on long-term growth trends, but navigating potential headwinds in sectors like software will be crucial. The company’s AUM climbed to $840 billion as of June 30, 2025, according to data released in August, and fee-earnings AUM increased 22.2% year-over-year to $638 billion.

Apollo’s ability to generate strong returns in a challenging macroeconomic environment will be a key factor for investors as they assess the firm’s long-term prospects. The company’s diversified business model, encompassing asset management, insurance, and credit investing, provides a degree of resilience, but external factors such as interest rate movements and economic growth will inevitably play a role.