By Isla Binnie and Arasu Kannagi Basil
NEW YORK, Aug 4 (Reuters) – Apollo Global Management posted a rise in earnings from fees and its insurance business in the second quarter, but cashed in less on its own investments in a tougher environment for asset sales, the company said on Tuesday.
The New York-based company posted adjusted net income of $2.11 per share, 10% higher than the same period last year but below estimates of $2.17 per share drawn from an LSEG poll of analysts.
Apollo started as a private equity firm in 1990 and has since pushed hard into credit and insurance, helping swell its total assets under management to $1.05 trillion at end-June.
CEO Marc Rowan has pledged to increase transparency and liquidity for private assets as valuations have come under scrutiny, with funds struggling to sell equity stakes and investors worrying about lending standards outside traditional banks.
Fee-related earnings from managing assets and arranging debt and equity deals rose 25% to $785 million, while the spread earned on insurance assets rose 7% to $877 million.
Apollo said those metrics broke quarterly records, as did fees from a unit which offers direct loans and asset-backed finance.
Principal investing income, which reflects profits from divestments, dipped to $16 million from $75 million in the previous quarter and $47 million in the same period of 2025.
Sales of assets from certain funds had been “prudently delayed”, Apollo said, adding that some fees and income were lower “while market conditions are less accommodative for monetization activity”.
Rising interest rates have weighed on so-called exit deals in private equity in recent years, although buyout pioneer KKR last week reported a brisk quarter for such deals.
Apollo’s asset management arm brought in $38 billion in fresh capital in the second quarter.
The company said that was driven in part by multi-asset securitization strategies, which include new vehicles pulling together different types of debt. The firm is marketing those vehicles, dubbed AMAPS, as a replacement for collateralized loan obligations.
Credit products for institutional investors and its latest flagship private equity fund also attracted inflows.
Wealthy individuals who have been staging a retreat from private credit this year pitched in $3 billion during the quarter, down from $4 billion in the previous three months.
(Reporting by Isla Binnie in New York and Arasu Kannagi Basil in Bengaluru; Editing by Devika Syamnath)
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