EFTA02373977

From: Richard Kahn Sent: Wednesday, November 1, 2017 1:48 PM To: jeffrey E. Subject: Fwd: Apollo Global Management LLC: Fund VIII Performance Drives the EPS Beat Richard Kahn HBRK Associates Inc. 575 =exington Avenue 4th Floor New York, NY 10022 Begin forwarded message: From: =/b>"Morgan Stanley" <[email protected]> Subject: =/b>Apollo Global =anagement LLC: Fund VIII Performance Drives the EPS Beat Date: =/b>November 1, 2017 at 9:46:48 AM =DT To: =/b> Reply-To: =/b><[email protected]> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Wealth =anagement <http://www.morganstanley.com/> <http://www.morganstanley.com/img/cs/spacer.gif> Apollo Global =anagement LLC: Fund VIII Performance Drives the EPS =eat <http://www.morganstanley.com/imecs/spacer.gif> EFTA_R1_01380424 EFTA02373977 Michael J. Cyprys, =FA, CPA — Morgan Stanley November =, 2017 1:45 PM GMT Strong quarter with APO =asily beating estimates by 35c with $1.07 EPS print vs MSe 72c and cons =1c. Beat driven by 7.3% appreciation of their private equity portfolio =ith Fund VIII marked at 1.46x cost vs 1.34x. Net accrued performance =ee receivable balance grew 26% q/q to $870m; this will likely support =he stock this morning. APO had among the strongest PE performance and =ccrued carry balance growth vs peers so far during 3Q.Looking through =he 35c headline EPS beat, we see a core beat closer to 16c. Tax rate a =it lower benefited EPS by 6c and other income was 13c beat for a total =f 19c worth of items that some may discount; thus a clean beat was =loser to 16c. Also notable? Compensation ratio on realized cash =erformance fees was 61% vs MSe 40%.Fee related earnings of $162m beat =Se of 5132m; with about 2/3 of the beat from a one-time $19m lease =ermination. Cash earnings of $185m was slightly better than MSe of =182m resulting in a 39c dividend about 3c above MSe of 36c and cons =7c. Cash earnings benefited from the $19m lease termination worth about =c/share. Ex that one-time item, cash earnings and the dividend would =ave missed expectations. Fundraising of $7.8b was better than our $3.8b =st with AUM growing 4% q/q to $241.6b. Net inflows to fee paying AUM =as $4.4b for about 10.8% annualized organic growth and fee-paying AUM =rew 3% q/q to $166b. This alert is sent from: Andrew Atlas, You received this because you requested =hat you receive content and reports from: APOLLO =LOBAL MANAGEMENT, LLC Please =ontact your FA if you want to unsubscribe from the alerts. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Disclosures: Please see =he full report for risks, disclosures and other important =nformation. Important disclosures regarding the =elationship between the companies that are referenced in Morgan Stanley =esearch and Morgan Stanley Wealth Management research are available on =he Morgan Stanley Wealth Management disclosure website at https://www.morganstanley.com/online/researchdisclosures. Morgan Stanley Wealth Management Not Acting as Municipal =dvisor Morgan Stanley Wealth Management is not acting as a municipal =dvisor to any municipal entity or obligated person within the meaning =f Section 158 of the Securities Exchange Act (the "Municipal Advisor =ule") and the opinions or views contained herein are not intended to =e, and do not constitute, advice within the meaning of the Municipal =dvisor Rule. Copyright 2 EFTA_R1_01380425 EFTA02373978 The =opyright in materials provided by Morgan Stanley is owned by Morgan =tanley & Co. LLC. Morgan Stanley Wealth Management is the trade =ame of Morgan Stanley Smith Barney LLC, a registered broker-dealer in =he United States. © 2017 Morgan Stanley Smith Barney LLC. Member =IPC. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> chttp://www.morganstanley.com/imecs/spacergif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> 3 EFTA_R1_01380426 EFTA02373979