Apollo Posts Profit as Investments Outpace Broader Market

Apollo Global Management reported a first-quarter profit Tuesday as the value of its investments soared.

The New York firm posted net income of $678.9 million, or $2.81 a share. That compares with a loss of $996.2 million, or $4.47 a share, a year earlier when the coronavirus-fueled market downturn hit the value of its investments.

Apollo’s private-equity portfolio appreciated 22% during the quarter, beating out rivals and easily topping the S&P 500, which climbed 5.8% during the period. The gains were broad-based and came as the firm’s value-oriented investment strategy began to pay off.

In the latest example of that strategy, which often involves polishing up underperforming assets and accelerating their growth, the firm announced a deal Monday to buy Yahoo and AOL from Verizon Communications Inc. for $5 billion.

Apollo also posted record fee-related earnings of $286.7 million in the first quarter, up 26% from a year earlier.

Source: Wall Street Journal