Monday, 30 March 2015
Last updated 2 days 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.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…