NEW YORK, July 30 (Reuters) - Buyout firm Apollo Global Management Inc said on Thursday its second-quarter distributable earnings fell 11% on-year, weighed down by slower asset sales in its private equity and real estate businesses.
Apollo said distributable earnings (DE) - the cash available for paying dividends to shareholders - fell to $205.2 million from $230.8 million a year earlier. This translated to DE per share of 46 cents, less than the Wall Street analyst consensus of 48 cents, according to data from Refinitiv.
The New York-based company said the value of its funds rebounded in the second quarter following the rally in U.S. public markets from the coronavirus-induced downturn, leading to a 180% year-on-year rise in net income to $437.2 million under generally accepted accounting principles (GAAP).
The buyout firm said its credit funds appreciated by 7.4% in aggregate in the second quarter, its private equity portfolio rose by 11.7%, while its real estate, principal finance and infrastructure funds climbed 1.4% in aggregate.
Apollo’s peers also reported a similar appreciation in their funds. Blackstone Group Inc said last week its private equity portfolio grew 12.8% in the second quarter, while Carlyle Group Inc reported that its corporate private equity and credit funds rose by 13% and 8%, respectively.
Apollo said its assets under management (AUM) rose by nearly $100 billion during the second quarter to $413 billion. The steep rise was largely driven by strong fundraising and the closing of two deals by its insurance affiliates that boosted its credit assets.
In April, Apollo’s European insurance business, Athora Holdings, closed its acquisition of life insurer VIVAT from China’s Anbang Group Holdings Co, which contributed about $45 billion in AUM.
Last month, Athene Holdings Ltd agreed to reinsure most of the liabilities of U.S. annuities provider Jackson National Life Co, a subsidiary of British insurer Prudential Plc , a deal that increased Apollo’s AUM by about $28 billion. Apollo is the investment manager of Athene’s entire assets.
Apollo’s fee-related earnings rose to $259 million from $239 million in the second quarter, driven by the addition of AUM in Apollo’s credit business. Apollo declared a quarterly dividend of 49 cents per share. (Reporting by Chibuike Oguh in New York, Editing by Sherry Jacob-Phillips)