By Pritam Biswas
Nov 3 (Reuters) – Apollo Global Management reported $53 billion in third-quarter inflows on Tuesday, pushing its assets under management to $1.07 trillion, as demand for private credit, insurance and other alternative investments helped drive record fee-related earnings.
Shares of the New York-based asset manager were down 3.5% in early trading. The company posted a GAAP loss of $1.06 billion, driven by unrealized mark-to-market losses as interest rates remained elevated.
The losses do not reflect the underlying performance of its business, as they are non-cash accounting adjustments that can fluctuate with changes in market conditions.
Fee-related earnings (FRE) grew 23% in the third quarter, driven by record quarterly fee-related revenue and margin expansion. AUM rose 18% from a year earlier.
Adjusted net income excluding notable items was $2.15 per share for the three months ended September 30, compared with $2.14 per share a year earlier.
The results underscored investors’ continued appetite for alternative assets, as they look to diversify portfolios and access private markets for potentially higher returns despite market volatility, economic uncertainty and concerns over valuations.
Apollo, founded as a private equity firm in 1990, has significantly expanded into credit and insurance. It reported gross capital deployment climbed about 18% in the third quarter.
Origination, which is driven by the availability of attractive investment and lending opportunities, came in at $114 billion, up 52% from the year-ago period.
“We’re also seeing historic capital investment across infrastructure, and energy, defense, manufacturing, and compute,” said Jim Zelter, President at Apollo Global.
“Companies are investing enormous amounts of capital and that is creating tremendous opportunity for our broad origination businesses,” he added.
This steady capital flow has enabled major alternative asset managers to expand their funds and assets, even as questions persist over liquidity and the pace of dealmaking.
Apollo CEO Marc Rowan has pledged to increase transparency and liquidity for private assets as valuations for typically illiquid assets have come under scrutiny across the sector.
Apollo shares are down 17.5% in 2026, but have performed better than stocks of peers such as Blackstone, Ares Management and KKR, as of last close.
Alternative asset manager stocks fell across Wall Street earlier this year as the private credit sector faced a selloff following a surge in investor withdrawals from funds.
“We thought it was a mixed or hybrid quarter with FRE coming in a little better, spread related earnings a little worse, and a number of KPIs split on each side of the aisle,” analysts at Evercore ISI led by Glenn Schorr said in a note.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
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