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Apollo Global Management, LLC Reports Second Quarter 2013 Results

APOLLO GLOBAL MANAGEMENT, LLC CARRIED INTEREST RECEIVABLE AND CARRIED INTEREST INCOME (LOSS) SUMMARY (UNAUDITED)

The table below presents an analysis of our (i) carried interest receivable and (ii) realized and unrealized carried interest income (loss) for our combined segments incentive business as of and for the three and six months ended June 30, 2013:

 

 

 

As of June 30, 2013

For the Three Months Ended June 30, 2013   For the Six Months Ended June 30, 2013
Carried

Interest

Receivable

Unrealized

Carried

Interest

Income

(Loss)

  Realized

Carried

Interest

Income

  Total

Carried

Interest

Income

(Loss)

Unrealized

Carried

Interest

Income

(Loss)

  Realized Carried Interest Income   Total Carried Interest Income

(Loss)

(in millions)
Private Equity Funds:
Fund VII $ 854.5 $ (138.5 ) $ 360.9 $ 222.4 $ (49.8 ) $ 585.2 $ 535.4
Fund VI 560.7 (285.2 ) 297.8 12.6 290.3 366.9 657.2
Fund V 67.5 (82.0 ) 79.5 (2.5 ) (66.8 ) 79.5 12.7
Fund IV 10.5 (1.3 ) (1.3 ) (0.4 ) (0.4 )
AAA/Other (1) 108.1   (2.7 )   (2.7 ) 14.6     14.6  
Total Private Equity Funds 1,601.3   (509.7 ) 738.2   228.5   187.9   1,031.6   1,219.5  
Credit Funds:
U.S. Performing Credit 210.4 (59.7 ) 56.8 (2.9 ) (36.3 ) 104.9 68.6
Opportunistic Credit 49.5 (3.7 ) 8.7 5.0 35.8 8.8 44.6
Structured Credit 37.4 9.4 1.1 10.5 18.7 1.1 19.8
European Credit 17.2 2.6 2.5 5.1 3.9 5.8 9.7
Non-Performing Loans 94.3   (7.4 ) 33.0   25.6   (7.7 ) 33.0   25.3  
Total Credit Funds 408.8   (58.8 ) 102.1   43.3   14.4   153.6   168.0  
Real Estate Funds:
CPI Funds 4.6   (6.4 ) 0.2   (6.2 ) (5.8 ) 0.5   (5.3 )
Total Real Estate Funds 4.6   (6.4 ) 0.2   (6.2 ) (5.8 ) 0.5   (5.3 )
Total $ 2,014.7   (2) $ (574.9 ) $ 840.5   $ 265.6   $ 196.5   $ 1,185.7   $ 1,382.2  
 
      (1)     Includes certain strategic investment accounts.
(2) There was a corresponding profit sharing payable of $908.2 million million as of June 30, 2013 that resulted in a net carried interest receivable amount of $1,106.5 million million as of June 30, 2013. Included within profit sharing payable are contingent consideration obligations of $107.3 million.

The following table summarizes the fair value gains on investments and income to reverse the general partner obligation to return previously distributed carried interest income based on the current fair value of the underlying funds’ investments as of June 30, 2013:

 
Fund   General Partner

Obligation (1)

 

Net Asset Value as of June 30, 2013

  Fair Value Gain on

Investments and Income

to Reverse General

Partner Obligation (2)

(in millions)
Apollo Asia Private Credit Fund, L.P. $ 0.3 $ 32.2 $ 1.0
      (1)     Based upon a hypothetical liquidation as of June 30, 2013, Apollo has recorded a general partner obligation to return previously distributed carried interest income, which represents amounts due to this fund. The actual determination and any required payment of a general partner obligation would not take place until the final disposition of the fund’s investments based on contractual termination of the fund.
(2) The fair value gain on investments and income to reverse the general partner obligation is based on the life-to-date activity of the entire fund and assumes a hypothetical liquidation of the fund as of June 30, 2013.

APOLLO GLOBAL MANAGEMENT, LLC SUPPLEMENTAL SHARE INFORMATION (UNAUDITED)

The table below presents Non-GAAP weighted average diluted shares outstanding for the three and six months ended June 30, 2013 and 2012:

 

 

  For the Three Months Ended June 30,     For the Six Months Ended June 30,
2013   2012 2013   2012
Total GAAP Weighted Average Outstanding Class A Shares:
Basic 137,289,147 126,457,443 134,285,776 125,863,348
Non-GAAP Adjustments:
AOG units 235,470,768 240,000,000 237,722,872 240,000,000
Vested RSUs (1) 20,948,076   19,564,430   20,894,686   18,961,618
Non-GAAP Weighted Average Diluted Shares Outstanding 393,707,991   386,021,873   392,903,334   384,824,966
 
      (1)     Vested RSUs presented have not yet been issued in the form of Class A shares. As a result, the amount of vested RSUs indicated has been excluded from the outstanding Class A share basic and diluted amounts.

The table below presents Non-GAAP diluted shares outstanding as of June 30, 2013 and 2012:

As of June 30,
2013   2012
Total GAAP Outstanding Class A Shares:
Basic 141,722,471 126,460,740
Non-GAAP Adjustments:
AOG units 231,230,636 240,000,000
Vested RSUs (1) 22,518,436   20,943,567
Non-GAAP Diluted Shares Outstanding 395,471,543   387,404,307
      (1)     Vested RSUs presented have not yet been issued in the form of Class A shares. As a result, the amount of vested RSUs indicated has been excluded from the outstanding Class A share basic and diluted amounts.

Note: In addition to fully diluted shares outstanding above, there were approximately 4.2 million and 5.4 million unvested RSUs that participate in distributions as of June 30, 2013 and 2012, respectively.

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