Wednesday, 27 July 2016
Last updated 26 min ago
Aug 7 2014 | 4:59pm ET
Apollo Global Management’s second-quarter profit rose—but not as much as analysts expected for a firm selling “everything that’s not nailed down.”
While other private-equity firms rode frothy markets to big gains, Apollo disappointed Wall Street with its 22% increase in profits. The firm said it earned $71.7 million in the second quarter, compared to $58.7 million in the year-earlier period.
But Apollo’s economic net income fell to $207.5 million from $220.1 million, badly missing analysts’ estimates. And its realized carried interest dropped dramatically, from $840.5 million to $241.7 million.
Apollo also paid out more to employees, with profit-sharing rising from $127.2 million to $160.8 million. “We don’t expect that to continue,” Apollo co-founder Joshua Harris said.