Apollo Earnings: Shares Rebound After Alternative Asset Manager Rout

Key Morningstar Metrics for Apollo Global Management

• Fair Value Estimate: $150.00
• Morningstar Rating: ★★★
• Morningstar Economic Moat Rating: Narrow
• Morningstar Uncertainty Rating: High

What We Thought of Apollo Global Management’s Earnings

Apollo Global Management APO ended December with $709 billion in fee-earning assets, up 3.5% sequentially and 24.7% year over year. Fee-related earnings increased 24.5% year over year to $690 million in the fourth quarter, and adjusted net income increased 13.2% to $1.5 billion.

Why it matters: Apollo continues to generate solid inflows. Its mix of alternative products is benefiting from the demand for non-traditional investment products.

• Apollo picked up $42 billion from fundraising efforts during the fourth quarter. While this was below its quarterly run rate of $47 billion over the previous eight calendar quarters, the firm raised $232 billion in new capital during 2025, compared with $154 billion in 2024.
• Apollo also deployed $38 billion during the fourth quarter, by our calculations, above its quarterly run rate of $28 billion over the past two years. This brought full-year deployments to $189 billion, compared with $129 billion in 2024.
• The firm’s dry powder (excluding uncalled commitments) was $73 billion at year-end, including $57 billion of dry powder with future management fee potential, of which 70% was in private credit.

The bottom line: We reiterate our $150 fair value estimate for narrow-moat-rated Apollo and view the shares as slightly undervalued.

• Increased uncertainty about the equity and credit markets tied to fiscal, tariff, and monetary policies and economic growth and increased concerns about the private credit market (and more recently, the segment’s ties with the artificial intelligence boom) have pressured the share prices of most of the alternative-asset managers.
• Other private-credit-heavy alternative asset managers, like Ares (66% of fee-earning assets under management and 65% of base management fees) and Blue Owl (53% and 61%), were hit hard the past six months. Apollo (86% and 72%) held up better despite its greater exposure, likely due to the perceived stability of the perpetual capital in its insurance operations.