Wednesday, 27 August 2014
Last updated 4 hours ago
May 9 2014 | 1:48pm ET
It seems Leon Black has run out of things not nailed down to sell.
Black’s Apollo Global Management yesterday said its first-quarter profit fell by 71% to $219 million. The firm was hurt by a less frothy environment for investment exits, which helped buoy its returns at the beginning of last year.
Black said a year ago that Apollo was “selling everything that’s not nailed down,” leading to big profits for the firm in 2013. But 2014 opened with an 83% drop in economic net income for its private-equity business, as the firm’s carried interest dropped almost 90%. In addition, the firms funds rose just 2% in the first quarter, as opposed to 14% in the year-earlier period.
Apollo’s real-estate business suffered a larger loss on the quarter as well, of $3.5 million as opposed to $900,000 in the first quarter of 2013. And the firm’s assets under management fell slightly to $159.3 billion.
The numbers weren’t all so grim: Apollo’s growing credit business saw an 18% jump in economic net income.
“Our solid first-quarter results highlight Apollo’s continued success in building a truly global alternative investment management firm with an outstanding team and investment track record,” Black said.
The results also show a non-cash expense related to the exit of firm President Marc Spilker in March of $45.6 million.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...