Apollo Global Management Inc - FXDFR NT REDEEM 15/09/2053 USD 25

Strong momentum + record earnings across both core drivers (good/surprising) - FRE (fee-related earnings): $785M → +25% YoY, +8% QoQ (record). Management fees +23% YoY, +5% QoQ. - SRE (spread-related earnings): $877M → +11% YoY, +5% QoQ (record; on adjusted basis added about $76M at ~11%). - Total earnings / adjusted net income: $1.3B ($2.11/sh) → strong combined contribution from fees + spread.

Origination + capital formation flywheel is the core engine (opportunities + “how growth happens”) - Origination: $74B in Q2 → ~$50B more signed/announced in Q2 expected to benefit future quarters (they record when deals close). - Pipeline described as “never been stronger”; ~340 bps spread over Treasuries on average for BBB average rating IG, emphasizing excess return per unit of risk. - Capital formation: $60B inflows in Q2 (record) = $38B asset management + $22B Athene. - Management positions 2026 outlook for FRE and SRE as “on track.”

ACS / capital solutions fees appear durable; linked to scale and syndication (good, but investors will probe durability) - ACS earnings: $277M, 5th straight quarter >$200M; Martin emphasizes it’s increasingly durable and broad-based (not concentrated in 1–2 businesses) and supported by syndication network. - Origination fuels ACS; they’re also seeing fees recognized over multiple quarters/years (e.g., Broadcom drawdown structure—fee recognition weighted toward later 2026/early 2027), which changes timing but supports multi-quarter earnings patterns. - Outlook framing: they believe origination + market structure changes create upside beyond the run-rate, while remaining disciplined to build a base they can “invest against.”