Sunday, 28 December 2014
Last updated 6 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.