No RUSH, But APO's Growth Will Be In The Limelight Again

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Flash Note

Financials | Brokers, Banks & Asset Managers

August 04, 2026

Apollo Global Management, Inc.

APO | $129.81

Outperform | Target Price/Base Case: $142.00

Company Update

Glenn Schorr, CFA

John Dunn

Benjamin Rubin, CFA, CPA

Matthew Lyons, CFA

No RUSH, But APO's Growth Will Be In The Limelight Again

Evercore is advising easyJet plc in relation to a potential offer by Apollo Global Management X, L.P. (together with Apollo G lobal

Management, Inc. and its subsidiaries) on behalf of certain of its managed investment funds.

2Q26 adj’d net income/Unit of $2.11 vs. Our/Street of $2.11/$2.16: APO's 2Q results were in line with our ANI

estimates but below consensus on lower credit mgmt. fees, softer FRPR, and muted PII (performance fees), which

more than offset the higher ACS transaction fees (up 28% to a record $277mm) and ~23% total mgmt. fee growth.

Mgmt. attributed the lower monetizations to a less accommodative exit environment, while transaction fees might have

been helped by Broadcom's sizeable $35bn chip deal. All in, FRE rose ~25%, while SRE remained quiet at +7% y/y

as net spread trends appear to be stabilizing and retail flows had a nice resurgence, despite two lumpy outflows (the

ARI takeout and the Intel prepay).

Overall activity levels remained pretty good with $60bn in inflows ($38bn asset mgmt., $22bn retirement), $74bn in

originations and $111bn in gross capital deployment. So while the P&L was just fine and investors might have a pretty

meh reaction to the print, the Apollo flywheel is spinning, the story remains the same, and growth should improve

given mostly strong performance, 30% higher fee-eligible AUM, slightly wider spreads, $2.4bn in net accrued carry

and $82bn of dry powder.

Bottom Line: Stock has lagged the group QTD (+9% vs. 18% for the peer group), which has caught a bid as of late

on a renewed 2H outlook. While the gradual improvements in SRE and retail flows are nice to see, investors will likely

focus on the management fee miss and the lukewarm monetization commentary.

Positives in the Quarter:

1. FRE grew 25% y/y (+8% q/q) to $785mn ($1.26/share), coming in ~2.4% above the Street at $767mn, driven

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