Nov 3 (Reuters) – Apollo Global Management reported $53 billion of inflows in the third quarter, lifting assets under management to $1.07 trillion, while fee-related earnings reached a record as investors continued to pour capital into alternative investments.
The inflows highlight continued appetite for alternative investments, as investors seek to diversify portfolios and tap private markets for higher returns despite market volatility, economic uncertainty and concerns over valuations.
Fee-related earnings grew 23% in the third quarter, driven by record quarterly fee-related revenue and margin expansion. AUM rose 18% from a year earlier.
The New York-based company posted adjusted net income excluding notable items of $2.15 per share, in the three months ended September 30 compared with $2.14 per share in the year earlier.
Apollo, which was founded as a private equity firm in 1990 and has since pushed hard into credit and insurance, said gross capital deployment climbed about 18% in the third quarter.
Origination, which is driven by the availability of attractive investment and lending opportunities, came in at $114 billion, up 52% from the year-ago period.
The steady flow of capital has helped major alternative asset managers expand their funds and assets under management, even as questions persist over liquidity and the pace of dealmaking.
Apollo CEO Marc Rowan has pledged to increase transparency and liquidity for private assets as valuations for typically illiquid assets have come under scrutiny across the sector.
On a GAAP basis, Apollo reported a loss of $1.06 billion in the third quarter, driven by unrealized mark-to-market losses as interest rates remained elevated.
Apollo shares are down 17.5% in 2026. Alternative asset manager stocks fell across Wall Street earlier this year as the private credit sector faced a selloff following a surge in investor withdrawals from funds.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
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