Apollo Global Management, LLC (NYSE:APO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 10:00 am ET


Apollo Global Management, LLC (NYSE:APO) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to Apollo Global Management's Second Quarter 2020 Earnings Conference Call. [Operator Instructions] This call may include forward-looking statements and projections, which do not guarantee future events or performance. Please refer to Apollo's most recent SEC filings, including the 8-K Apollo filed this morning for risk factors related to these statements. Apollo will be discussing certain non-GAAP measures on this call, which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's website. Also note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase any interest in Apollo Fund.

I would now like to turn the call over to Gary Stein, Head of Investor Relations.

Gary Stein

Welcome to our second quarter 2020 earnings call. We hope you and your families are doing well in these challenging times. Joining me this morning are Leon Black, Founder, Chairman and Chief Executive Officer; Josh Harris, Co-Founder; and Martin Kelly, Chief Financial Officer and Co-Chief Operating Officer. Gary Parr, Senior Managing Director, is also on the line and will be available during the Q&A session. Earlier this morning, we reported distributable earnings of $0.46 per common share, pretax fee-related earnings or FRE of $0.59 per share and a cash dividend of $0.49 per share for the second quarter.

With that, I'll turn the call over to Leon Black.

Leon Black

Thanks, Gary, and thank you all for joining us. I'd like to express my wishes to everyone listening that this finds you and your families healthy and safe. And to our employees who have continued to work tirelessly on behalf of our clients and our shareholders, I'd like to convey my appreciation and gratitude. We are not working under typical circumstances to say the least, and you have all continued to go above and beyond to drive the strong results that we are reporting today. I think this speaks to the tenacity and spirit of our employees as well as the collaborative and inventive culture we have at Apollo. Globally, companies continue to operate in incredibly challenging circumstances as we face what started as a health crisis but has progressed into an economic crisis as well. Across the firm, we have responded quickly to this changing landscape with a focus on engagement and operations across our investment professionals, client and product solutions team and enterprise solutions group, which has helped us transition into a work-from-home environment smoothly. This quarter marks the achievement of a significant milestone as Apollo's AUM grew by approximately $100 billion to surpass $400 billion for the first time in our history. This growth was driven by Athene, Athora and strong inflows during the quarter and represents 33% growth year-over-year. With $414 billion of AUM as of June 30, we are well on our way towards the $600 billion goal that we provided at Investor Day this past November. We continue to see robust