Q1 2022 Apollo Global Management, Inc Earnings Call

May 5, 2022

Noah Gunn: Retail and capital solution. In origination, volume for Q1 was some $22 billion and run rating at $100 billion. Recall that our five-year target is to push that on a run rate basis to $150 billion. We completed acquisitions in the quarter of Pace, Foundation, and Newfi. These are platforms, platforms you should think of as permanent origination. In our industry, we spend a lot of time talking about permanent capital. Permanent origination is just as important as permanent capital. We've positioned ourselves as a scaled solutions provider, executing deals with speed and certainty. Two that I'd like to mention for the quarter: Aldar, a $1.4 billion commitment. It's one of the largest foreign direct investments in Abu Dhabi's private sector, investment grade primarily. SoftBank, some $5.1 billion, investment grade.

Marc Rowan: Retail and capital solution. In origination, volume for Q1 was some $22 billion and run rating at $100 billion. Recall that our five-year target is to push that on a run rate basis to $150 billion. We completed acquisitions in the quarter of Pace, Foundation, and Newfi. These are platforms, platforms you should think of as permanent origination. In our industry, we spend a lot of time talking about permanent capital. Permanent origination is just as important as permanent capital. We've positioned ourselves as a scaled solutions provider, executing deals with speed and certainty. Two that I'd like to mention for the quarter: Aldar, a $1.4 billion commitment. It's one of the largest foreign direct investments in Abu Dhabi's private sector, investment grade primarily. SoftBank, some $5.1 billion, investment grade.

retail, and capital solutions.

Capital solution.

In origination volume for Q1, with some 22 billion in run rating at a $100 billion recall that our five year target is to push that on a run rate basis to $150 billion.

In origination, volume Q1 was some $22 billion and run rating at $100 billion. Recall that our five-year target is to push that on a run rate basis to $150 billion.

We completed acquisitions in the quarter of pace Foundation and New Fi. These are platforms platforms, you should think of as permanent origination in our industry. We spend a lot of time talking about permanent capital permanent origination is just as important as permanent capital.

We completed acquisitions in the quarter of Pace, Foundation, and NuFi. These are platforms, platforms you should think of as permanent origination. In our industry, we spend a lot of time talking about permanent capital. Permanent origination is just as important as permanent capital.

We positioned ourselves as a scaled solutions provider, executing deals with speed and certain...

We positioned ourselves as a scaled solutions provider executing deals with speed and certainty.

Two that I'd like to mention for the quarter, Aldar, a $1.4 billion commitment, it's one of the largest foreign direct investments in Abu Dhabi's private sector, investment grade primarily. SoftBank.

Two that I'd like to mention for the quarter Aldar, a one $4 billion commitment. It's one of the largest foreign direct investments in Abu Dhabi as private sector investment grade primarily.

Softbank, some $5 1 billion.

Noah Gunn: These are the kinds of transactions in the originated marketplace that allow us to provide our balance sheet and our clients excess return per unit of risk, even against the backdrop of a volatile market. Let me turn to Capital Solutions next. Capital Solutions had a pretty good quarter, even against the backdrop of market volatility. We are well positioned to deliver on the 2022 growth targets, notwithstanding what's happened in Q1. The Q2 pipeline is incredibly strong and very encouraging. As you know, we announced the strategic partnership with Mubadala to capitalize on these origination activities, augmenting the volume of origination and syndication activity we can now execute. Again, a very good start for the year, and I expect we will meet or exceed the targets we have in Capital Solutions.

These are the kinds of transactions in the originated marketplace that allow us to provide our balance sheet and our clients excess return per unit of risk, even against the backdrop of a volatile market. Let me turn to Capital Solutions next. Capital Solutions had a pretty good quarter, even against the backdrop of market volatility. We are well positioned to deliver on the 2022 growth targets, notwithstanding what's happened in Q1. The Q2 pipeline is incredibly strong and very encouraging. As you know, we announced the strategic partnership with Mubadala to capitalize on these origination activities, augmenting the volume of origination and syndication activity we can now execute. Again, a very good start for the year, and I expect we will meet or exceed the targets we have in Capital Solutions.

investment grade. These are the kinds of transactions in the Originated Marketplace that allow us to provide our balance sheet.

Investment grade these are the kinds of transactions in the originated marketplace that allow us to provide our.

Our balance sheet.

and our clients excess return per unit of risk, even against the backdrop of a volatile market.

And our clients excess return per unit of risk even against the backdrop of a volatile market.

Let me turn to capital solutions next.

Capital solutions had a pretty good quarter, even against the backdrop of market volatility, we are well positioned to deliver on the 2022 growth targets.

Capital Solutions had a pretty good quarter, even against the backdrop of market volatility. We are well-positioned to deliver on the 2022 growth targets, notwithstanding what's happened

Notwithstanding what's happened in the first quarter.

The Q2 pipeline is incredibly strong and very encouraging. As you know, we announced the strategic partnership with Mubadala to capitalize on these origination activities.

The Q2 pipeline is incredibly strong and very encouraging as you know we announced the strategic partnership with <unk> to capitalize on these origination activities augmenting the volume of origination and syndication activity, we can now execute.

augmenting the volume of origination and syndication activity we can now...

Again, a very good start for the year, and I expect we will meet or exceed the targets we have in capital.

Again, a very good start for the year and I expect that we will meet or exceed the targets. We have in capital solutions again recall in our five year plan that we've projected $500 million of revenues over the five year period or I should say at the end of the five year period.

Noah Gunn: Again, recall in our five-year plan that we've projected $500 million of revenues over the five-year period, or I should say at the end of the five-year period. Let me turn to global wealth. Judging by the reporting coming out of the earnings season for the Alternatives peer group, what's happening in global wealth seems to be of interest to the analyst community and to the marketplace, and it should be. We made meaningful progress against global wealth and our objectives in Q1. We added 125 dedicated employees, bringing our total employment in global wealth to 145, I believe to be the second largest global wealth team amongst alternative peers. Team alone is not going to define success. Here, the acquisition of Griffin, which will be completed in all facets in Q2, is an incredibly exciting partnership.

Again, recall in our five-year plan that we've projected $500 million of revenues over the five-year period, or I should say at the end of the five-year period. Let me turn to global wealth. Judging by the reporting coming out of the earnings season for the Alternatives peer group, what's happening in global wealth seems to be of interest to the analyst community and to the marketplace, and it should be. We made meaningful progress against global wealth and our objectives in Q1. We added 125 dedicated employees, bringing our total employment in global wealth to 145, I believe to be the second largest global wealth team amongst alternative peers. Team alone is not going to define success. Here, the acquisition of Griffin, which will be completed in all facets in Q2, is an incredibly exciting partnership.

Again, recall in our five-year plan that we've projected $500 million of revenues over the five-year period, or I should say at the end of the five-year period.

Let me turn to global wealth.

Judging by the reporting coming out of the earnings season for the alternatives peer group, what's happening in global wealth seems to be of interest to the analyst community and to the marketplace.

Judging by the reporting coming out of the earnings season for the Alternatives Peer Group, what's happening in global wealth seems to be of interest to the analyst community and to the marketplace.

And it should be.

We made meaningful progress against global wealth and our objectives in Q1.

We added 125 dedicated employees, bringing our total employment in global wealth to a 145 I believe to be the second largest global wealth team amongst alternative peers.

We added 125 dedicated employees, bringing our total employment in global wealth to 145. I believe to be the second largest global wealth team amongst alternative peers. Team alone is not going to define success.

Team alone is not going to define success here.

The acquisition of Griffin.

will be completed in all facets in the second quarter. It's an incredibly exciting partnership. We're off to a very good start and we expect to see

Which will be completed in all facets in the second quarter is an incredibly exciting partnership we're off to a very good start and we expect to see significant progress.

Noah Gunn: We're off to a very good start, and we expect to see significant progress. Apollo Debt Solutions, our private BDC, continues to enjoy fundraising traction, and we expect to expand and internationalize distribution over the year and the quarters as we continue to deploy, and we see strong demand across a variety of wealth channels, particularly our IAs. Let me spend a minute and talk about how we see the global wealth market. First, I think I need to back up, and I need to define what we believe to be an alternative. An alternative to us is simply an alternative to publicly traded stocks and bonds. That definition encompasses an incredibly large marketplace versus a definition historically that where alternatives have been thought of as private equity and a variety of very opportunistic products. We like those products.

We're off to a very good start, and we expect to see significant progress. Apollo Debt Solutions, our private BDC, continues to enjoy fundraising traction, and we expect to expand and internationalize distribution over the year and the quarters as we continue to deploy, and we see strong demand across a variety of wealth channels, particularly our IAs. Let me spend a minute and talk about how we see the global wealth market. First, I think I need to back up, and I need to define what we believe to be an alternative. An alternative to us is simply an alternative to publicly traded stocks and bonds. That definition encompasses an incredibly large marketplace versus a definition historically that where alternatives have been thought of as private equity and a variety of very opportunistic products. We like those products.

Apollo Debt Solutions, our private BDC, continues to enjoy fundraising traction and we expect to expand and internationalize distribution over the year and the quarters as we continue to deploy and we see strong demand across a variety of wealth channels.

Apollo debt solutions, our private BDC continues to enjoy fundraising traction and we expect to expand and internationalize distribution over the year and the quarters as we continue to deploy and we see strong demand across a variety of wealth channels.

Particularly our eyes.

Let me spend a minute and talk about how we see the global wealth.

Let me spend a minute and talk about how we see the global wealth market.

First I think I need to back up and I need to define what we believe to be an alternative.

First, I think I need to back up, and I need to define what we believe to be an alternative. An alternative to us.

An alternative to us.

It's simply an alternative to publicly traded stocks and bonds.

That definition encompasses an incredibly large market.

That definition encompasses an incredibly large marketplace.

Versus a definition historically that were alternatives have been thought of as private equity and a variety of very opportunistic products. We like those products. Those products are the foundation of our business but.

versus a definition historically that where alternatives have been thought of as private equity and a variety of very opportunistic products.

Noah Gunn: Those products are the foundation of our business, but the market for alternatives is broader than perhaps we even imagined. I believe you will see the global wealth market develop along two lines over the coming years. One will be against the backdrop of traditional definitions of alternatives. Think of that as private funds. Think of that as BDCs. Think of that as REITs. In many instances, these products have been in the marketplace for decades, but for the first time are being offered to clients at institutional fee scales and with ease of access through technologically augmented implementation and with a much better understanding at the end client of the purpose and of the value behind these products. Needless to say, clients really like them. We've seen tremendous take-up of alternatives using that definition over the past few years.

Those products are the foundation of our business, but the market for alternatives is broader than perhaps we even imagined. I believe you will see the global wealth market develop along two lines over the coming years. One will be against the backdrop of traditional definitions of alternatives. Think of that as private funds. Think of that as BDCs. Think of that as REITs. In many instances, these products have been in the marketplace for decades, but for the first time are being offered to clients at institutional fee scales and with ease of access through technologically augmented implementation and with a much better understanding at the end client of the purpose and of the value behind these products. Needless to say, clients really like them. We've seen tremendous take-up of alternatives using that definition over the past few years.

We like those products. Those products are the foundation of our business.

But the market for alternatives is broader than perhaps we even.

But the market for alternatives is broader than perhaps we even imagined.

I believe you will see the global wealth market develop along two lines over the coming years, one will be against the backdrop of traditional definitions of alternatives.

I believe you will see the global wealth market develop along two lines.

over the coming years. One will be against the backdrop of traditional definitions of alternative.

Think of that as private funds, think of that as BDCs, think of that as...

Of that as private funds think of that as Bdcs think of that as rights in many instances.

In many instances, these products have been in the marketplace for decades, but for the first time are being offered to clients at institutional fee scales and with ease of access through technologically augmented implementation.

Since as these products have been in the marketplace for decades.

But for the first time are being offered to clients institutional fee scales.

And with ease of access through technologically augmented implementation.

with a much better understanding at the end client of the purpose and of the value behind these products. And needless to say...

And with a much better understanding at the end client of the purpose of the value behind these products and needless to say clients really like them, we've seen tremendous take up of alternatives using that definition over the past few years.

We've seen tremendous take up of alternatives using that definition over the past few years.

Noah Gunn: But I believe that there's a broader market, and the broader market really will help clients deal with what I would say is their traditional portfolios. To the extent a high-net-worth client might have been following a 40/60 portfolio or a traditional, I believe that they will struggle in the coming years with volatility in rates, indexation in markets, volatility of equity to meet their retirement needs. You will see us focus on the next generation of products later this year. We intend to launch the first of a generation of products specifically created for this marketplace. We're focused not just on alternatives, but on equity replacement. I could see a day in the not-too-distant future when a client's portfolio is not 10% or 15% alternatives, but is 50% alternatives. Alternatives under the definition of an alternative to publicly traded stocks and bonds.

But I believe that there's a broader market, and the broader market really will help clients deal with what I would say is their traditional portfolios. To the extent a high-net-worth client might have been following a 40/60 portfolio or a traditional, I believe that they will struggle in the coming years with volatility in rates, indexation in markets, volatility of equity to meet their retirement needs. You will see us focus on the next generation of products later this year. We intend to launch the first of a generation of products specifically created for this marketplace. We're focused not just on alternatives, but on equity replacement. I could see a day in the not-too-distant future when a client's portfolio is not 10% or 15% alternatives, but is 50% alternatives. Alternatives under the definition of an alternative to publicly traded stocks and bonds.

But I believe that there is a broader market and.

And the broader market really will help clients deal with what I would say is their traditional portfolios. To the extent a high net worth client might have been following a 40-60 portfolio or a traditional portfolio.

In the broader market really will help clients deal with what I would say is their traditional portfolios to the extent of high net worth client might've been following a 40 60 portfolio or a traditional.

I believe that they will struggle in the coming years with volatility in rates, indexation in markets, volatility of equity.

I believe that they will struggle in the coming years with volatility in rates indexation in markets volatility of equity to meet their retirement needs.

You will see us focus on the next generation of products later this year.

We intend to launch the first of a generation of products specifically created for this marketplace.

first of a generation of products specifically created for this marketplace.

We're focused not just on alternatives, but on equity replacement.

focused not just on alternatives but on equity replacement. I could see a day in the not-too-distant future when a client's portfolio is not 10 or 15 percent alternatives but is 50

I could see a day.

In the not too distant future when a clients portfolio.

Not 10, or 15% alternatives, but it's 50% alternatives.

Alternatives under the definition of an alternative is the publicly traded stocks and bonds.

Noah Gunn: We believe that alternatives exist from AA to equity, and our job is to bring those products to market and offer clients excess return per unit of risk. Most clients can afford to take some amount of liquidity risk across their portfolio. The product set that we envision is large and scalable and coming soon. Culturally, this has been an amazing quarter. What we're doing, what we're saying is resonating in the professional services marketplace. This is incredibly critical to attract and retain talent. For Q1, we hired 185 new Apollo employees. Turnover is down. Satisfaction is up. To close, the optionality in our business is huge. We've made meaningful progress on our strategic growth initiatives in a relatively short amount of time, and we have some exciting developments in capitalizing on white space opportunities in front of us.

We believe that alternatives exist from AA to equity, and our job is to bring those products to market and offer clients excess return per unit of risk. Most clients can afford to take some amount of liquidity risk across their portfolio. The product set that we envision is large and scalable and coming soon. Culturally, this has been an amazing quarter. What we're doing, what we're saying is resonating in the professional services marketplace. This is incredibly critical to attract and retain talent. For Q1, we hired 185 new Apollo employees. Turnover is down. Satisfaction is up. To close, the optionality in our business is huge. We've made meaningful progress on our strategic growth initiatives in a relatively short amount of time, and we have some exciting developments in capitalizing on white space opportunities in front of us.

We believe that alternatives exist from AA to equity. And our job is to bring those products to market and offer clients excess return per unit of risk.

We believe that alternatives exist from double AA.

To equity.

And our job is to bring those products to market and offer clients excess return per unit of risk.

Most clients can afford to take some amount of liquidity risk across their portfolio.

The product set that we envision is large and scalable and coming soon.

Culturally.

This has been an amazing quarter.

What we're doing what we're saying is resonating in the professional services marketplace. This is incredibly critical to attract and retain talent.

What we're doing, what we're saying is resonating in the professional services marketplace, this is incredibly critical to attract and retain talent.

For the first quarter, we hired 185 new Apollo employees. Turnover is down.

For the first quarter, we hired a 185, new Apollo employees turnover is down.

<unk> fashion is up.

To close, the optionality in our business is huge. We've made meaningful progress on our strategic growth initiatives in a relatively short amount of time, and we have some exciting developments in capitalizing on white space opportunities.

To close the Optionality in our business is huge we've made meaningful progress on our strategic growth initiatives in a relatively short amount of time and we have exciting some exciting developments in capitalizing on white space opportunities in front of us.

Noah Gunn: I will now turn the call over to Scott to provide you with some detail on these developments and also cover key drivers of our Q1 results.

I will now turn the call over to Scott to provide you with some detail on these developments and also cover key drivers of our Q1 results.

I will now turn the call over to Scott to provide you with some detail on these developments and also cover key drivers of our Q1.

Martin Kelly: Thanks, Mark. Our business is built to withstand and even thrive in times of macro volatility and market disruption. This was most clearly demonstrated by our strong first quarter investment performance, which is underpinned by purchase price discipline and downside protection, as well as a focus on investments in companies with strong cash flow generation. As Mark mentioned, our overall private equity portfolio outperformed the S&P 500 by 12% in the first quarter, and our long-term track record remains very strong across our flagship strategies. Fund Nine appreciated 15% during the quarter, which was substantially all driven by EBITDA growth. Similarly, on a life-to-date basis, approximately 90% of the value creation achieved by Fund Nine has been from EBITDA growth.

Scott Kleinman: Thanks, Mark. Our business is built to withstand and even thrive in times of macro volatility and market disruption. This was most clearly demonstrated by our strong first quarter investment performance, which is underpinned by purchase price discipline and downside protection, as well as a focus on investments in companies with strong cash flow generation. As Mark mentioned, our overall private equity portfolio outperformed the S&P 500 by 12% in the first quarter, and our long-term track record remains very strong across our flagship strategies. Fund Nine appreciated 15% during the quarter, which was substantially all driven by EBITDA growth. Similarly, on a life-to-date basis, approximately 90% of the value creation achieved by Fund Nine has been from EBITDA growth.

Thanks, Mark. Our business is built to withstand and even thrive in times of macro volatility and market disruption.

Thanks, Mark our business is built to withstand and even thrive in times of macro volatility and market disruption. This was most clearly demonstrated by our strong first quarter investment performance, which is underpinned by purchase price discipline and downside protection as well as our focus on investments in companies with strong cash flow generation.

This was most clearly demonstrated by our strong first quarter investment performance, which is underpinned by purchase price discipline and downside protection, as well as a focus on investments in companies with strong cash flow generation.

As Mark mentioned, our overall private equity portfolio outperformed the S&P 500 by 12% in the first quarter. And our long-term track record remains very strong across our flagship strategy.

As Mark mentioned, our overall private equity portfolio outperformed the S&P 500 by 12% in the first quarter and our long term track record remains very strong across our flagship strategies.

Fund 9 appreciated 15% during the quarter, which was substantially all driven by EBITDA growth.

One nine appreciated 15% during the quarter, which was substantially all driven by EBITDA growth.

Similarly, on a life-to-date basis, approximately 90% of the value creation achieved by Fund9 has been from EBITDA growth.

Similarly on a life to date basis, approximately 90% of the value creation achieved by fund nine has been from EBITDA growth.

Martin Kelly: As of quarter end, Fund Nine's inception-to-date performance is a stellar gross IRR of 52% and 34% net, showcasing the significant alpha we're capable of generating for our clients. As it relates to Fund Ten fundraising, we continue to feel very confident in meeting our $25 billion target. Despite some congestion in the private equity fundraising market others have cited, as well as the impact of the denominator effect on LP appetite for additional private equity exposure, we're still seeing solid support from our existing LP base and new commitments from an array of investors, including the global wealth community. We believe our differentiated strategy and strong investment performance are setting us apart in this current volatile market backdrop.

As of quarter end, Fund Nine's inception-to-date performance is a stellar gross IRR of 52% and 34% net, showcasing the significant alpha we're capable of generating for our clients. As it relates to Fund Ten fundraising, we continue to feel very confident in meeting our $25 billion target. Despite some congestion in the private equity fundraising market others have cited, as well as the impact of the denominator effect on LP appetite for additional private equity exposure, we're still seeing solid support from our existing LP base and new commitments from an array of investors, including the global wealth community. We believe our differentiated strategy and strong investment performance are setting us apart in this current volatile market backdrop.

As of quarter end, Fund9's inception-to-date performance is a stellar gross IRR of 52% and 34% net, showcasing the significant alpha we're capable of generating for our clients.

As of quarter end <unk> inception to date performance is a stellar gross IRR of 52% and 34% net showcasing the significant alpha we're able we're capable of generating for our clients.

As it relates to fund 10 fundraising we continue to feel very confident in meeting our $25 billion target.

As it relates to Fund 10 fundraising, we continue to feel very confident in meeting our $25 billion target.

Despite some congestion in the private equity fundraising market, others have cited, as well as the impact of the denominator effect on LP appetite for additional private equity exposure, we're still seeing solid support from our existing LP base and new commitments from an array of investors, including the global wealth community.

Despite some congestion in the private equity fundraising market other subsided as well as the impact of the denominator effect on LP appetite for additional private equity exposure, we are still seeing solid support from our existing LP base and new commitments from an array of investors, including the global wealth community.

We believe our differentiated strategy and strong investment performance are setting us apart in this current volatile market backdrop.

Martin Kelly: Additionally, yield strategies held up very well during the quarter amid higher rates and wider credit spreads, with direct origination and corporate credit strategies outperforming their benchmark indices by 350 basis points and 70 basis points respectively. This outperformance was driven by both higher allocation to floating-rate securities as well as superior individual credit selection. We continue to believe the yield-oriented funds we manage are well positioned for a sustained period of higher interest rates. We apply the same discipline, excuse me, the same emphasis on price discipline, downside protection, and excess return generation in managing Athene's investment portfolio. Our ability to produce excess spread comes from moving out the liquidity spectrum, not taking incremental credit risk. As evidence of our focus on underwriting and credit quality, it's worth noting that Athene's historical credit losses have only amounted to 7 basis points over the last 5 years.

Additionally, yield strategies held up very well during the quarter amid higher rates and wider credit spreads, with direct origination and corporate credit strategies outperforming their benchmark indices by 350 basis points and 70 basis points respectively. This outperformance was driven by both higher allocation to floating-rate securities as well as superior individual credit selection. We continue to believe the yield-oriented funds we manage are well positioned for a sustained period of higher interest rates. We apply the same discipline, excuse me, the same emphasis on price discipline, downside protection, and excess return generation in managing Athene's investment portfolio. Our ability to produce excess spread comes from moving out the liquidity spectrum, not taking incremental credit risk. As evidence of our focus on underwriting and credit quality, it's worth noting that Athene's historical credit losses have only amounted to 7 basis points over the last 5 years.

Additionally, yield strategy has held up very well during the quarter amid higher rates and wider credit spreads with direct origination and corporate credit strategies outperforming their benchmark indices by 350 basis points and 70 basis points respectively.

This outperformance was driven by both higher allocation to floating rate securities as well as superior individual credit selection. We continue to believe the yield-oriented funds we manage are well positioned for a sustained period of higher interest rates.

This outperformance was driven by both higher allocations of floating rate securities as well as superior individual credit selection. We continue to believe the yield oriented funds, we manage are well positioned for a sustained period of higher interest rates.

We apply the same emphasis on price discipline, downside protection, and excess return generation in managing a themes investment portfolio. Our ability to produce excess bread comes from moving out the liquidity spectrum, not taking incremental credit risk.

We apply the same discipline excuse me the same emphasis on price discipline downside protection and excess return generation and managing Athene investment portfolio our.

Our ability to produce excess spread comes from moving out the liquidity spectrum, not taking incremental credit risk.

As evidence of our focus on underwriting and credit quality, it's worth noting that Athene's historical credit losses have only amounted to seven basis points over the last five years.

As evidence of our focus on underwriting and credit quality, it's worth noting that of themes historical credit losses have only amounted to seven basis points over the last five years.

Martin Kelly: Additionally, 95% of Athene's fixed income portfolio is invested in investment-grade securities. During Q1, we remained active in deploying Athene's balance sheet cash into attractive investments, with the weighted average yield on total fixed income purchases exceeding the BBB corporate bond index. Recall that we benefit from a structurally low cost of fund, given that we built Athene's business during a decade of historically low rates. The assets supporting these funds are generally matched from day one, allowing us to lock in attractive spreads. We've allocated a portion of these assets to floating-rate investments that will benefit from rising interest rates, as Martin will discuss later. Additionally, we've constructed a differentiated alternatives portfolio comprising 6% of Athene's assets.

Additionally, 95% of Athene's fixed income portfolio is invested in investment-grade securities. During Q1, we remained active in deploying Athene's balance sheet cash into attractive investments, with the weighted average yield on total fixed income purchases exceeding the BBB corporate bond index. Recall that we benefit from a structurally low cost of fund, given that we built Athene's business during a decade of historically low rates. The assets supporting these funds are generally matched from day one, allowing us to lock in attractive spreads. We've allocated a portion of these assets to floating-rate investments that will benefit from rising interest rates, as Martin will discuss later. Additionally, we've constructed a differentiated alternatives portfolio comprising 6% of Athene's assets.

Additionally, 95% of Athene fixed income portfolio is invested in investment grade Securities <unk>.

Additionally, 95% of Athene's fixed income portfolio is invested in investment-grade security.

During the first quarter, we remained active in deploying Athene's balance sheet cash into attractive investments with the weighted average yield on total fixed income purchases exceeding the BBB corporate bond index.

During the first quarter, we remained active in deploying Athena balance sheet cash into attractive investments with a weighted average yield on total fixed income purchases exceeding the triple B corporate bond index.

Recall that we benefit from a structurally low cost of funds given that we built the themes business during a decade of historically low rates.

Recall that we benefit from a structurally low cost of funds given that we built Athene's business during a decade of historically low rates.

The assets supporting these funds are generally matched from day one, allowing us to lock in attractive spreads.

The asset supporting these funds are generally matched from day, one, allowing us to lock in attractive spreads.

We've allocated a portion of these assets to floating rate investments that will benefit from rising interest rates, as Martin will discuss later.

We've allocated a portion of these assets to floating rate investments that will benefit from rising interest rates as Martin will discuss later.

Additionally, we've constructed a differentiated alternatives portfolio comprising 6% of Athene's assets.

Additionally, we've constructed a differentiated alternatives portfolio comprising 6% of the themes assets.

Martin Kelly: In the market environment we saw in Q1, with equity market volatility, rising rates, and inflation, Athene's limited exposure to public equities and sizable allocation to strategic asset origination and retirement services platforms, as well as diversified credit, real estate, and natural resource investments, drove meaningful outperformance. In particular, we expect Athene's investments in origination platforms to increase in value in a rising rate environment coupled with tighter liquidity conditions. Switching to deployment, periods of dislocation and volatility also provide opportunity to put capital to work, and our low cost of capital allows us the flexibility to be responsive and opportunistic in our deployment activity. With equity valuations normalizing and borrowing rates rising, we're engaging in an increasing amount of strategic dialogues with companies looking for ways to fund their growth via creative capital solutions.

In the market environment we saw in Q1, with equity market volatility, rising rates, and inflation, Athene's limited exposure to public equities and sizable allocation to strategic asset origination and retirement services platforms, as well as diversified credit, real estate, and natural resource investments, drove meaningful outperformance. In particular, we expect Athene's investments in origination platforms to increase in value in a rising rate environment coupled with tighter liquidity conditions. Switching to deployment, periods of dislocation and volatility also provide opportunity to put capital to work, and our low cost of capital allows us the flexibility to be responsive and opportunistic in our deployment activity. With equity valuations normalizing and borrowing rates rising, we're engaging in an increasing amount of strategic dialogues with companies looking for ways to fund their growth via creative capital solutions.

In the market environment we saw in the first quarter, with equity market volatility, rising rates and inflation, Athene's limited exposure to public equities and sizable allocation to strategic asset origination and retirement services platforms, as well as diversified credit, real estate, and natural resource investments, drove meaningful outperformance.

And the market environment, we saw in the first quarter with equity market volatility rising rates and inflation of themes limited exposure to public equities and sizable allocations of strategic asset origination and retirement services platforms as well as diversified credit real estate and natural resource investments drove means.

For outperformance in particular, we expect the themes investments in origination platforms to increase in value in a rising rate environment, coupled with tighter liquidity conditions.

In particular, we expect the themes, investments, and origination platforms to increase in value in a rising rate environment coupled with tighter liquidity conditions.

Switching to deployment periods of dislocation and volatility also provide opportunity to put capital to work and our low cost of capital allows us the flexibility to be responsive and opportunistic in our deployment activity.

Switching to deployment, periods of dislocation and volatility also provide opportunity to put capital to work, and our low cost of capital allows us the flexibility to be responsive and opportunistic in our deployment activities.

With equity valuations normalizing and borrowing rates rising, we're engaging in an increasing amount of strategic dialogue with companies looking for ways to fund their growth via creative capital solutions.

With equity valuations normalizing and borrowing rates rising we're engaging in an increasing amount of strategic dialogues with companies looking for ways to fund their growth via creative capital solutions.

Martin Kelly: We're also seeing opportunities arise from liquidity-driven dislocations, particularly in leverage finance and the convertible bond market. Total gross deployment, which is a measure of our aggregate investing activity, totaled $48 billion in Q1, which included $6 billion from drawdown deployment. Following a quieter Q4, we were active in making new commitments for Fund Nine, including our pending investments in Tenneco, Novolex, and Ingenico, to name a few. At the end of March, Fund Nine was 90% committed or invested. We have $2 to 3 billion of dry powder left to deploy from Fund Nine before we would need to commence the investment period for Fund Ten. Origination activity, as Marc mentioned, represents the alpha-generating investments we source across our debt business.

We're also seeing opportunities arise from liquidity-driven dislocations, particularly in leverage finance and the convertible bond market. Total gross deployment, which is a measure of our aggregate investing activity, totaled $48 billion in Q1, which included $6 billion from drawdown deployment. Following a quieter Q4, we were active in making new commitments for Fund Nine, including our pending investments in Tenneco, Novolex, and Ingenico, to name a few. At the end of March, Fund Nine was 90% committed or invested. We have $2 to 3 billion of dry powder left to deploy from Fund Nine before we would need to commence the investment period for Fund Ten. Origination activity, as Marc mentioned, represents the alpha-generating investments we source across our debt business.

We're also seeing opportunities arise from liquidity-driven dislocations, particularly in leveraged finance and the convertible bond market.

We're also seeing opportunities arise from liquidity, driven dislocations, particularly in leveraged finance on the convertible bond market.

Total gross deployment, which is a measure of our aggregate investing activity totaled 48 billion in the first quarter, which included $6 billion from drawdown deployment.

Total gross deployment, which is a measure of our aggregate investing activity, totaled $48 billion in the first quarter, which included $6 billion from drawdown deployment.

Following a quieter fourth quarter, we were active in making new commitments for Fund 9, including our pending investments in Tenneco, Novalex, and Ingenico, to name a few.

Following acquired or fourth quarter, we were active in making new commitments for fund nine including our pending investments in Tenneco, <unk> and <unk> to name a few.

At the end of March, Fund 9 was 90% committed or invested. We have $2 to $3 billion of dry powder left to deploy from Fund 9 before we would need to commence the investment period for Fund 10.

At the end of March <unk> was 90% committed or invested we have $2 billion to $3 billion of dry powder left to deploy from fund nine before we would need to commence the investment period for fund 10.

Origination activity as Mark mentioned represents the alpha generating investments, we source across our debt business.

Origination activity, as Mark mentioned, represents the alpha generating investments we source across our debt business.

Martin Kelly: Strength in the first quarter origination volume was driven by more traditional origination activity, such as commercial real estate debt lending and CLO debt. This was complemented by origination activity from platforms, including our scaled middle market direct lending business and more recent additions such as Wheels Donlen and Newfi. In terms of capital raising, inflows of $31 billion in the first quarter were robust and diversified, bringing our total inflows over the last 12 months to $91 billion. Inflows from asset management totaling $19 billion in the first quarter included $12 billion from broad-based fundraising activities in several strategies, including Accord V, Total Return, Apollo Debt Solutions, Hybrid Value, and our new capital markets partnership, among several others. Inflows from retirement services totaled approximately $12 billion in the first quarter, the second highest quarter of organic inflows Athene has generated to date.

Strength in the first quarter origination volume was driven by more traditional origination activity, such as commercial real estate debt lending and CLO debt. This was complemented by origination activity from platforms, including our scaled middle market direct lending business and more recent additions such as Wheels Donlen and Newfi. In terms of capital raising, inflows of $31 billion in the first quarter were robust and diversified, bringing our total inflows over the last 12 months to $91 billion. Inflows from asset management totaling $19 billion in the first quarter included $12 billion from broad-based fundraising activities in several strategies, including Accord V, Total Return, Apollo Debt Solutions, Hybrid Value, and our new capital markets partnership, among several others. Inflows from retirement services totaled approximately $12 billion in the first quarter, the second highest quarter of organic inflows Athene has generated to date.

Strength in the first quarter origination volume was driven by more traditional origination activity such as commercial real estate debt lending and CLO debt.

Strength in the first quarter origination volume was driven by more traditional origination activity such as commercial real estate debt lending in CLO debt.

This was complemented by origination activity from platforms, including our scaled middle market direct lending business and more recent additions such as Wheels Donlin and NuFi.

This was complemented by origination activity from platforms, including our scaled middle market direct lending business and more recent additions such as wheels, Donlin and <unk>.

In terms of capital raising inflows of $31 billion in the first quarter were robust robust and diversified bringing our total inflows over the last 12 months to 91 billion.

In terms of capital raising, inflows of $31 billion in the first quarter were robust and diversified, bringing our total inflows over the last 12 months to $91 billion.

Inflows from asset management totaling $19 billion in the first quarter included $12 billion from broad-based fundraising activities and several strategies, including Accord 5, Total Return, Apollo Debt Solutions, Hybrid Value, and our new Capital Markets Partnership, among several others.

Inflows from asset management totaling 19 billion in the first quarter included 12 billion from broad based fund raising activities in several strategies, including a cord five total return Apollo debt solutions hybrid value and our new capital markets partnership among several others.

Inflows from retirement services totaled approximately $12 billion in the first quarter, the second highest quarter of organic inflows that DEAN has generated to date.

Inflows from retirement services totaled approximately $12 billion in the first quarter, the second highest quarter of organic inflows Athene has generated to date.

Martin Kelly: The business continues to source attractive, profitable growth that has the dual benefit of growing fee and spread-related earnings. It's worth highlighting that we now have raised over $7 billion of AUM for high-grade alpha-managed accounts, the underlying clients of which are third-party insurance companies, which we believe validates the alpha-generating strategy we employ for Athene on a day-to-day basis. Based on our strong first quarter fundraising results, we feel comfortable meeting or exceeding our previously communicated $80 billion organic inflow guidance for 2022. Importantly, inflows from our global wealth platform accounted for more than 10% of asset management fundraising in the quarter, double our historic average. As Marc alluded to, we're building a tailored product suite across the risk-reward spectrum that is purposely designed for this market and expect to launch one to two new retail products every quarter over the next 18 to 24 months.

The business continues to source attractive, profitable growth that has the dual benefit of growing fee and spread-related earnings. It's worth highlighting that we now have raised over $7 billion of AUM for high-grade alpha-managed accounts, the underlying clients of which are third-party insurance companies, which we believe validates the alpha-generating strategy we employ for Athene on a day-to-day basis. Based on our strong first quarter fundraising results, we feel comfortable meeting or exceeding our previously communicated $80 billion organic inflow guidance for 2022. Importantly, inflows from our global wealth platform accounted for more than 10% of asset management fundraising in the quarter, double our historic average. As Marc alluded to, we're building a tailored product suite across the risk-reward spectrum that is purposely designed for this market and expect to launch one to two new retail products every quarter over the next 18 to 24 months.

The business continues to source attractive, profitable growth that has the dual benefit of growing fee- and spread-related earnings.

The business continues to source attractive profitable growth that has the dual benefit of growing fee and spread related earnings.

It's worth highlighting that we now have raised over $7 billion of AUM, or high-grade alpha-managed accounts, the underlying clients of which are third-party insurance companies, which we believe validates the alpha-generating strategy we employ for Athene on a day-to-day basis.

It's worth highlighting that we now have raised over 7 billion of AUM for high grade Alpha managed accounts, the underlying clients of which our third party insurance companies, which we believe validates the alpha generating strategy, we employed for Athene on a day to day basis.

Based on our strong first-quarter fundraising results, we feel comfortable meeting or exceeding our previously communicated $80 billion organic inflow guidance for 2022.

Based on our strong first quarter fund raising results, we feel comfortable meeting or exceeding our previously communicated 80 billion organic inflow guidance for 2022.

Importantly, inflows from our global wealth platform accounted for more than 10% of asset management fundraising in the quarter, double our historic average. As Mark alluded to, we're building a tailored product suite across the risk-reward spectrum that is purposely designed for this market and expect to launch one to two new retail products every quarter over the next 18 to 24 months.

Importantly, inflows from our global wealth platform accounted for more than 10% of asset management fund raising in the quarter double our historic average.

As Mark alluded to we are building a tailored product suite across the risk reward spectrum that is purposely purposefully designed for this market and expect to launch one to two new retail products every quarter over the next 18 to 24 months.

Martin Kelly: This includes our non-traded direct real estate income vehicle, Apollo Realty Income Solutions, or ARIS, which publicly filed a registration statement with the SEC in April. We're also seeing significant institutional overlap with products that were designed for the global wealth market, which we believe could drive upside to our fundraising targets this year. As Mark mentioned, we're seeing momentum in several of our newer and scaling strategies, including Total Return, Credit Secondaries, Apollo Debt Solutions, as well as our third-party insurance business. As these initiatives trend favorably, we're also continuing to invest in several growth opportunities and bring in outside talent and resources where appropriate in order to capture the white space opportunities around our core capabilities. These adjacencies will seek to expand our product set, where we believe we have a competitive edge and could drive meaningful upside to our long-term growth trajectory.

This includes our non-traded direct real estate income vehicle, Apollo Realty Income Solutions, or ARIS, which publicly filed a registration statement with the SEC in April. We're also seeing significant institutional overlap with products that were designed for the global wealth market, which we believe could drive upside to our fundraising targets this year. As Mark mentioned, we're seeing momentum in several of our newer and scaling strategies, including Total Return, Credit Secondaries, Apollo Debt Solutions, as well as our third-party insurance business. As these initiatives trend favorably, we're also continuing to invest in several growth opportunities and bring in outside talent and resources where appropriate in order to capture the white space opportunities around our core capabilities. These adjacencies will seek to expand our product set, where we believe we have a competitive edge and could drive meaningful upside to our long-term growth trajectory.

This includes our non-traded direct real estate income vehicle, Apollo Realty Income Solutions, or ARIS, which publicly filed a registration statement with the SEC in April .

This includes our non traded direct real estate income vehicle Apollo Realty income solutions, where arris, which publicly filed a registration statement with the SEC in April .

We're also seeing significant institutional overlap with products that were designed for the global wealth market, which we believe could drive upside to our fundraising targets this year.

We're also seeing significant institutional overlap with products that were designed for the global wealth market, which we believe could drive upside to our fund raising targets this year.

As Marc mentioned, we're seeing momentum in several of our newer and scaling strategies, including total return credit secondaries Apollo debt solutions as well as our third party insurance business.

As Mark mentioned, we're seeing momentum in several of our newer and scaling strategies, including total return, credit secondaries, Apollo debt solutions, as well as our third-party insurance business.

As these initiatives trend favorably, we're also continuing to invest in several growth opportunities and bring in outside talent and resources where appropriate in order to capture the white space opportunities around our core capabilities.

As these initiatives trend favorably, we're also continuing to invest in several growth opportunities and bringing in outside talent and resources, where appropriate in order to capture the white space opportunities around our core capabilities.

These adjacencies will seek to expand our product set, where we believe we have a competitive edge and could drive meaningful upside to our long-term growth.

These adjacencies will seek to expand our product set where we believe we have a competitive edge and could drive meaningful upside to our long term growth trajectory.

Martin Kelly: During Q1, we announced the launch of a comprehensive sustainable investing platform focused on financing and investing in global energy transition. We view the energy transition opportunity as a cross-platform endeavor, harnessing the talent of investment professionals not only from our equity platform, but across our yield, hybrid, infrastructure, and natural resource franchises. Our platform is targeting to deploy $50 billion in clean energy and climate capital over the next 5 years, with the opportunity to deploy over $100 billion by 2030. While these figures may seem large, it's really only a drop in the bucket. By comparison, we expect financing the decarbonization of industry to require approximately $5 trillion per year in capital investment over the next 20 years. To advance these goals, we're planning on raising dedicated capital vehicles.

During Q1, we announced the launch of a comprehensive sustainable investing platform focused on financing and investing in global energy transition. We view the energy transition opportunity as a cross-platform endeavor, harnessing the talent of investment professionals not only from our equity platform, but across our yield, hybrid, infrastructure, and natural resource franchises. Our platform is targeting to deploy $50 billion in clean energy and climate capital over the next 5 years, with the opportunity to deploy over $100 billion by 2030. While these figures may seem large, it's really only a drop in the bucket. By comparison, we expect financing the decarbonization of industry to require approximately $5 trillion per year in capital investment over the next 20 years. To advance these goals, we're planning on raising dedicated capital vehicles.

During the first quarter, we announced the launch of a comprehensive sustainable investing platform focused on financing and investing in global energy transition.

During the first quarter, we announced the launch of our comprehensive sustainable investing platform focused on financing and investing in global energy transition.

We view the energy transition opportunity as a cross-platform endeavor, harnessing the talent of investment professionals not only from our equity platform, but across our yield, hybrid, infrastructure, and natural resource franchises.

We view the energy transition opportunity as a cross platform endeavor harnessing the talent of investment professionals, not only from our equity platform, but across our yield hybrid infrastructure and natural resource franchises.

Our platform is targeting to deploy $50 billion in clean energy and climate capital over the next five years, with the opportunity to deploy over $100 billion by 2030.

Our platform is targeting to deploy $50 billion in clean energy and climate capital over the next five years with the opportunity to deploy over $100 billion by 2030.

While these figures may seem large, it's really only a drop in the bucket. By comparison, we expect financing the decarbonization of industry to require approximately $5 trillion per year in capital investment over the next 20 years.

While these figures may seem large it's really only a drop in the bucket by comparison, we expect financing the de carbonization of industry to acquire approximately five trillion per year and capital investment over the next 20 years.

To advance these goals, we're planning on raising dedicated capital vehicles. We're in the process of marketing a climate finance fund and expect to launch an energy transition equity vehicle later this year.

To advance these goals, we're planning on raising dedicated capital vehicles. We're in the process of marketing a climate Finance fund and expect to launch an energy transition equity vehicle later this year.

Martin Kelly: We're in the process of marketing a climate finance fund and expect to launch an energy transition equity vehicle later this year. Expanding and broadening our secondaries platform is another one of our strategic priorities, given the scalability of the business and large growing opportunity set. The ecosystem we're targeting is broad and dynamic, and extends beyond the traditional definition of LP secondaries. We're building out a comprehensive toolkit, including continuation vehicles, GP and fund financing, as well as credit secondaries to address the needs of this market holistically. We're focused on adding talent and scale to these newer initiatives and have recently made strategic hires with experience in the equity secondaries market to augment our existing talent and capabilities. Given the progress we've made so far, you'll begin to see us raising and deploying significant amounts of capital across this platform in new and non-traditional ways.

We're in the process of marketing a climate finance fund and expect to launch an energy transition equity vehicle later this year. Expanding and broadening our secondaries platform is another one of our strategic priorities, given the scalability of the business and large growing opportunity set. The ecosystem we're targeting is broad and dynamic, and extends beyond the traditional definition of LP secondaries. We're building out a comprehensive toolkit, including continuation vehicles, GP and fund financing, as well as credit secondaries to address the needs of this market holistically. We're focused on adding talent and scale to these newer initiatives and have recently made strategic hires with experience in the equity secondaries market to augment our existing talent and capabilities. Given the progress we've made so far, you'll begin to see us raising and deploying significant amounts of capital across this platform in new and non-traditional ways.

Expanding and broadening our secondaries platform is another one of our strategic priorities given the scalability of the business and large growing opportunity set.

The ecosystem we're targeting is broad and dynamic and extends beyond the traditional definition of LP secondary.

The ecosystem, we're targeting is broad and dynamic and extends beyond the traditional definition of Lp's secondaries.

We're building out a comprehensive toolkit, including continuation vehicles, GP and fund financing, as well as credit secondaries to address the needs of this market holistically.

We're building out a comprehensive toolkit, including continuation vehicles, GP and fund financing as well as credit secondaries to address the needs of this market Holistically, we're focused on adding talent and scale to these newer initiatives and have recently made strategic hires with experiencing the equity secondaries market to augment our existing Tam.

We're focused on adding talent and scale to these newer initiatives and have recently made strategic hires with experience in the equity secondaries market to augment our existing talent and capabilities.

<unk> capabilities given.

Given the progress we've made so far youll begin to see us raising and deploying significant amounts of capital across this platform and new in non traditional ways.

Given the progress we've made so far, you'll begin to see us raising and deploying significant amounts of capital across this platform in new and nontraditional ways.

Martin Kelly: In Asia, we continue to see massive untapped potential to bring our yield and hybrid strategies to this market, particularly in Japan, Australia, and India. One of our most seasoned senior colleagues is leading our expansion into Asia, and we're also hiring talent on the ground. Our leadership team is increasingly engaged with insurance companies, banks, and pension plans across the region. We're interested in our retirement service solutions and fixed income replacement capabilities. And lastly, as I mentioned at Investor Day, we see significant white space opportunities from bringing together the broader Apollo platform with best-in-class sector expertise in areas where we don't have a historic footprint, particularly as we enter what we expect to be a period of extended market volatility.

In Asia, we continue to see massive untapped potential to bring our yield and hybrid strategies to this market, particularly in Japan, Australia, and India. One of our most seasoned senior colleagues is leading our expansion into Asia, and we're also hiring talent on the ground. Our leadership team is increasingly engaged with insurance companies, banks, and pension plans across the region. We're interested in our retirement service solutions and fixed income replacement capabilities. And lastly, as I mentioned at Investor Day, we see significant white space opportunities from bringing together the broader Apollo platform with best-in-class sector expertise in areas where we don't have a historic footprint, particularly as we enter what we expect to be a period of extended market volatility.

In Asia, we continue to see massive untapped potential to bring our yield and hybrid strategies to this market, particularly in Japan, Australia and India.

In Asia, we continue to see massive untapped potential to bring our yield and hybrid strategies to this market, particularly in Japan, Australia, and India.

One of our most seasoned senior colleagues is leading our expansion into Asia, and we're also hiring talent on the ground.

One of our most seasoned senior colleagues is leading our expansion into Asia and we're also hiring talent on the ground.

Our leadership team is increasingly engaged with insurance companies, banks, and pension plans across the region who are interested in our retirement service solutions and fixed income replacement capabilities.

Our leadership team is increasingly engage with insurance companies banks and pension plans across the region. We're interested in our retirement service solutions and fixed income replacement capabilities.

And lastly, as I mentioned at Investor Day, we see significant white space opportunities from bringing together the broader Apollo platform with best-in-class sector expertise in areas where we don't have a historic footprint, particularly as we enter what we expect to be a period of extended market volatility.

And lastly, as I mentioned at Investor Day, we see significant white space opportunities from bringing together the broader Apollo platform with best in class sector expertise in areas, where we don't have a historic footprint, particularly as we enter what we expect to be a period of extended market volatility.

Martin Kelly: As always, we approach all new opportunities with a Purchase Price Matters mentality and believe adding specialized intellectual capital across our yield, hybrid, and equity strategies will bring new capabilities to the broader Apollo ecosystem. We're beginning to partner with leading high-quality companies possessing these capabilities that will be accretive across the platform. By way of example, as you saw with our investment in Motive last year, we chose to partner with them due to their fintech expertise to explore investment opportunities and potential new capabilities that we otherwise would not have pursued. We've been working on a number of exciting things and expect to announce several partnerships in the coming months in areas such as life science, software, and hard tech. With that, I'll turn the call over to Martin, who will discuss our financial results in detail. Great. Thanks, Scott.

As always, we approach all new opportunities with a Purchase Price Matters mentality and believe adding specialized intellectual capital across our yield, hybrid, and equity strategies will bring new capabilities to the broader Apollo ecosystem. We're beginning to partner with leading high-quality companies possessing these capabilities that will be accretive across the platform. By way of example, as you saw with our investment in Motive last year, we chose to partner with them due to their fintech expertise to explore investment opportunities and potential new capabilities that we otherwise would not have pursued. We've been working on a number of exciting things and expect to announce several partnerships in the coming months in areas such as life science, software, and hard tech. With that, I'll turn the call over to Martin, who will discuss our financial results in detail.

As always, we approach all new opportunities with the Purchase Price Matters mentality and believe adding specialized intellectual capital across our yield, hybrid, and equity strategies will bring new capabilities to the broader Apollo ecosystem.

As always we approach all new opportunities with a purchase price matters mentality and believe adding specialized intellectual capital across our yield hybrid and equity strategies will bring new capabilities to the broader Apollo ecosystem.

We're beginning to partner with leading high-quality companies possessing these capabilities that will be accretive across the platform.

We're beginning to partner with leading high quality companies possessing these capabilities that will be accretive across the platform.

By way of example, as you saw with our investment in Motiv last year, we chose to partner with them due to their fintech expertise to explore investment opportunities and potential new capabilities that we otherwise would not have pursued.

By way of example, as you saw with our investment in motive last year, we chose to partner with them due to their fintech expertise to explore investment opportunities and potential new capabilities that we otherwise would not have pursued.

We've been working on a number of exciting things and expect to announce several partnerships in the coming months in areas such as life science, software, and hard tech. With that, I'll turn the call over to Martin who will discuss our financial results in detail.

We've been working on a number of exciting things and expect to announce several partnerships in the coming months in areas such as life Science software at hard Tech with that I will turn the call over to Martin who will discuss our financial results in detail.

Martin Kelly: Great. Thanks, Scott.

Martin Kelly: Our Q1 results represent a really solid foundation for our next chapter as a large and more profitable one of Apollo. Following our merger with Athene, our earnings power is greatly enhanced. The durable and recurring nature of fee and spread-related earnings is a powerful and highly valuable combination that we believe will be increasingly appreciated as we execute on the attractive financial plan we presented last October. For the Q1, we reported fee-related earnings of $310 million, or $0.52 per share, which increased modestly year-over-year, reflecting higher revenues and increased costs associated with investing in our business for growth, as both Marc and Scott mentioned. Importantly, fee-related revenues from perpetual capital represent over 50% of our total fee revenue, providing enhanced durability and compounding growth potential of this valuable earnings stream.

Our Q1 results represent a really solid foundation for our next chapter as a large and more profitable one of Apollo. Following our merger with Athene, our earnings power is greatly enhanced. The durable and recurring nature of fee and spread-related earnings is a powerful and highly valuable combination that we believe will be increasingly appreciated as we execute on the attractive financial plan we presented last October. For the Q1, we reported fee-related earnings of $310 million, or $0.52 per share, which increased modestly year-over-year, reflecting higher revenues and increased costs associated with investing in our business for growth, as both Marc and Scott mentioned. Importantly, fee-related revenues from perpetual capital represent over 50% of our total fee revenue, providing enhanced durability and compounding growth potential of this valuable earnings stream.

Great. Thanks, Scott. Our first quarter results represent a really solid foundation for our next chapter as a large and more profitable Monopolo.

Great. Thanks, Scott our first quarter results represent a really solid foundation for our next chapter as a large and more profitable Monopolar <unk>.

Following our merger with Athene, our earnings power is greatly enhanced.

Following our merger with attained our earnings power is greatly enhanced.

The durable and recurring nature of fee and spread related earnings is a powerful and highly valuable combination that we believe will be increasingly appreciated as we execute on the attractive financial plan we presented last October .

For the first quarter, we reported fee-related earnings of $310 million, or $0.52 per share, which increased modestly year-over-year, reflecting higher revenues and increased costs associated with investing in our business for growth, as both Mark and Scott mentioned.

For the first quarter, we reported fee related earnings of $310 million or <unk> 52 per share, which increased modestly year over year, reflecting higher revenues and increased costs associated with investing in our business for growth.

Both Mark and Scott mentioned.

Importantly, fee-related revenues from perpetual capital represents over 50% of our total fee revenue, providing enhanced durability and compounding growth potential of this valuable earning stream.

Importantly fee related revenues from perpetual capital represents over 50% of our total fee revenue, providing enhanced durability and compounding growth potential of this valuable earnings stream.

Martin Kelly: Management fees increased 11% year-over-year, driven by robust and broad-based inflows from retirement services, institutional, and retail clients, as well as strong deployment activity in funds that earn management fees on invested capital. While the quarter included some catch-up fees in yield, we expect further management fee growth for our yield strategies over 2022, driven by our focus on origination of differentiated assets through our platforms. We held the final close for our Griffin acquisition last week, which adds two interval funds totaling approximately $6.5 billion of fee-generating AUM. Griffin has continued to see growth in total sales from its real estate and credit funds since the acquisition was signed last December. First-quarter advisory and transaction fees of $64 million increased 16% year-over-year, though faced some sequential pressure from lower overall capital markets activity in the first quarter, as Marc mentioned.

Management fees increased 11% year-over-year, driven by robust and broad-based inflows from retirement services, institutional, and retail clients, as well as strong deployment activity in funds that earn management fees on invested capital. While the quarter included some catch-up fees in yield, we expect further management fee growth for our yield strategies over 2022, driven by our focus on origination of differentiated assets through our platforms. We held the final close for our Griffin acquisition last week, which adds two interval funds totaling approximately $6.5 billion of fee-generating AUM. Griffin has continued to see growth in total sales from its real estate and credit funds since the acquisition was signed last December. First-quarter advisory and transaction fees of $64 million increased 16% year-over-year, though faced some sequential pressure from lower overall capital markets activity in the first quarter, as Marc mentioned.

Management fees increased 11% year over year, driven by robust and broad based inflows from retirement services institutional and retail clients.

Management fees increased 11% year-over-year, driven by robust and broad-based inflows from retirement services, institutional and retail clients.

as well as strong deployment activity in funds that earn management fees on invested capital.

As well as strong deployment activity in funds that earn management fees on invested capital.

While the quarter included some catch-up fees and yield, we expect further management fee growth for our yield strategies over 2022, driven by our focus on origination of differentiated assets through our platform.

While the quarter included some catch up fees and yields we expect further management fee growth for our yield strategies over 2022, driven by our focus on origination of differentiated assets through our platforms.

We held the final close for our Griffin acquisition last week, which adds two interval funds totaling approximately $6 5 billion.

We held the final close for our Griffin acquisition last week, which adds two interval funds totaling approximately $6.5 billion of fee-generating AUM.

Fee generating AUM.

Griffin has continued to see growth in total sales from its real estate and credit funds since the acquisition was signed last December .

Griffin has continued to see growth in total sales from its real estate and credit funds. Since the acquisition was signed last December .

First quarter advisory and transaction fees of $64 million increased 16% year over year.

First quarter, advisory and transaction fees of $64 million increased 16% year-over-year, though faced some sequential pressure from lower overall capital markets activity in the first quarter, as Mark Rancho.

Some sequential pressure from lower overall capital markets activity in the first quarter as Mark mentioned.

Martin Kelly: Capital Solutions activity has picked up so far in Q2, with transaction fees running at a run-rate at a higher level compared to Q1. Turning to fee-related expenses, the year-over-year increase reflects our continued investment in talent and the previously communicated rebasing of our non-compensation cost structure in 2022, following the expansion of our global team and including higher occupancy and technology costs necessary to support the firm's next leg of growth. We expect to continue growing into a higher run rate expense level as we progress throughout the year, consistent with the trends we outlined at our Investor Day. With that said, we expect to generate positive operating leverage as we enter 2023, as the pace of expense growth slows.

Capital Solutions activity has picked up so far in Q2, with transaction fees running at a run-rate at a higher level compared to Q1. Turning to fee-related expenses, the year-over-year increase reflects our continued investment in talent and the previously communicated rebasing of our non-compensation cost structure in 2022, following the expansion of our global team and including higher occupancy and technology costs necessary to support the firm's next leg of growth. We expect to continue growing into a higher run rate expense level as we progress throughout the year, consistent with the trends we outlined at our Investor Day. With that said, we expect to generate positive operating leverage as we enter 2023, as the pace of expense growth slows.

Capital Solutions activity has picked up so far in the second quarter with transaction fees running run rating at a higher level compared to the first quarter.

Capital solutions activity has picked up so far in the second quarter with transaction fees running run rating at a higher level compared to the first quarter.

Turning to fee related expenses the year over year increase reflects our continued investment in talent and the previously communicated <unk> of our non compensation cost structure in 2022.

Turning to fee-related expanses, the year-over-year increase reflects our continued investment in talent and the previously communicated rebasing of our non-compensation cost structure in 2022, following the expansion of our global team and including higher occupancy and technology costs necessary to support the firm's next leg of growth.

Following the expansion of our global team and including higher occupancy and technology costs necessary to support the firm's next level next leg of growth.

We expect to continue growing into a higher run rate expense level as we progress throughout the year, consistent with the trends we outlined in our investigation.

We expect to continue growing into a higher run rate expense level as we progress throughout the year consistent with the with the trends we outlined at our Investor day.

With that said, we expect to generate positive operating leverage as we enter 2023 as the pace of expense growth slows.

Martin Kelly: Moving to our retirement services segment, we generated spread-related earnings of $670 million in Q1, or $1.12 per share, driven by a net investment spread of 186 basis points and translating to a net spread of 148 basis points. Our SRE reflects the impact of purchase accounting, whereby we were required to mark to market the assets and liabilities on Athene's balance sheet at the date of the merger close. This resulted in a rebasing of our fixed income investment yield, cost of funds, and financing costs. The net one-time impact to our net investment spread was a two basis point benefit in the quarter. The primary driver of our particularly strong SRE results was an elevated asset yield and specifically the portion derived from alternative investment income.

Moving to our retirement services segment, we generated spread-related earnings of $670 million in Q1, or $1.12 per share, driven by a net investment spread of 186 basis points and translating to a net spread of 148 basis points. Our SRE reflects the impact of purchase accounting, whereby we were required to mark to market the assets and liabilities on Athene's balance sheet at the date of the merger close. This resulted in a rebasing of our fixed income investment yield, cost of funds, and financing costs. The net one-time impact to our net investment spread was a two basis point benefit in the quarter. The primary driver of our particularly strong SRE results was an elevated asset yield and specifically the portion derived from alternative investment income.

Moving to our retirement services segment, we generated spread-related earnings of $670 million in the first quarter, or $1.12 per share.

Moving to our retirement services segment, we generated spread related earnings of $670 million in the first quarter or $1 12 per share.

driven by a net investment spread of 186 basis points and translating to a net spread of 148 basis points.

Driven by our net investment spread of 196 basis points and translating to a net spread of 148 basis points.

Our <unk> reflects the impact of purchase accounting, whereby we were required to mark to market the assets and liabilities on a same balance sheet appetite of the merger close.

Our SRE reflects the impact of purchase accounting, whereby we were required to mark to market the assets and liabilities on a Fein's balance sheet at the date of the merger closing.

This result resulted in a <unk> of our fixed income investment yield cost of funds and financing costs.

This resulted in a rebasing of our fixed income investment yield, cost of funds, and financing costs.

The net one-time impact to our net investment spread was a two basis point benefit in the quarter.

Net onetime impact to our net investment spread was a two basis point benefit in the quarter.

The primary driver of our particularly strong SRE results was an elevated asset yield and specifically the portion derived from alternative investment income.

The primary driver of our particularly strong <unk> results was an elevated asset yield and specifically the portion derived from alternative investment income.

Martin Kelly: 94% of Athene's investment portfolio is invested in fixed income securities, and our SRE includes the effective yield on these assets. The remaining 6% of Athene's portfolio is comprised of differentiated, downside-protected alternative investments, which are marked on a quarterly basis. In Q1, income generated from these alternative investments was above the long-term trend of 12%, producing an annualized return of 17%. Recall that the construction of this portfolio is strategic origination and retirement services platforms, as well as Apollo Fund investments, principally equity and hybrid. Since the vast majority of this portfolio is not tied to public equities or technology specifically, it's not surprising to see outperformance relative to the public equity markets. You can see the high-level composition of the portfolio on page 15 within our earnings presentation.

94% of Athene's investment portfolio is invested in fixed income securities, and our SRE includes the effective yield on these assets. The remaining 6% of Athene's portfolio is comprised of differentiated, downside-protected alternative investments, which are marked on a quarterly basis. In Q1, income generated from these alternative investments was above the long-term trend of 12%, producing an annualized return of 17%. Recall that the construction of this portfolio is strategic origination and retirement services platforms, as well as Apollo Fund investments, principally equity and hybrid. Since the vast majority of this portfolio is not tied to public equities or technology specifically, it's not surprising to see outperformance relative to the public equity markets. You can see the high-level composition of the portfolio on page 15 within our earnings presentation.

94% of the <unk> investment portfolio is invested in fixed income securities.

94% of a thing's investment portfolio is invested in fixed income securities and our SRE includes the effective yield on these assets

Sorry includes the effective yield on these assets.

The remaining 6% of Athene's portfolio is comprised of differentiated downside protected alternative investments, which are marked on a quarterly basis.

The remaining 6% of things portfolio is comprised of differentiated downside protected alternative investments, which are March on a quarterly basis.

In the first quarter, income generated from these alternative investments was above the long-term trend of 12%, producing an annualized return of 17%.

In the first quarter income generated from these alternative investments was above long term trend of 12% producing an annualized return of 17%.

Recall that the construction of this portfolio is strategic origination and retirement services platforms, as well as Apollo Fund investments, principally equity and hybrid.

Recall that the construction of this portfolio is strategic origination and retirement services platforms as well as Apollo fund investments principally equity and hybrid.

Since the vast majority of this portfolio is not tied to public equities or technology, specifically, it's not surprising to see outperformance relative to the public equity markets.

Since the vast majority of this portfolio is not tied to public equities or technology specifically, it's not surprising to see outperformance relative to the public equity market.

You can see the high-level composition of the portfolio on page 15 within our earnings presentation.

You can see the high level composition of the portfolio on page 15 within our earnings presentation.

Martin Kelly: Within this portfolio, performance from strategic origination platforms was particularly strong and generated an 11% annualized return. These businesses have spread-based characteristics and, as Scott mentioned, benefit from a rising rate environment. As we've been emphasizing, proprietary and recurring asset origination is an extremely important differentiator for us. We hold these investments in these origination vehicles through Athene, which provides a capital-efficient structure, attractive returning assets for Athene's investment portfolio, and frees up capital at the holding company level for other strategic growth investments. Strategic investments in other retirement services businesses also performed well. These are also typically spread-based businesses that generally benefit in a rising rate environment and include investments such as Athora, Venerable, Challenger, and FWD. These investments generated a 17% annualized return during Q1.

Within this portfolio, performance from strategic origination platforms was particularly strong and generated an 11% annualized return. These businesses have spread-based characteristics and, as Scott mentioned, benefit from a rising rate environment. As we've been emphasizing, proprietary and recurring asset origination is an extremely important differentiator for us. We hold these investments in these origination vehicles through Athene, which provides a capital-efficient structure, attractive returning assets for Athene's investment portfolio, and frees up capital at the holding company level for other strategic growth investments. Strategic investments in other retirement services businesses also performed well. These are also typically spread-based businesses that generally benefit in a rising rate environment and include investments such as Athora, Venerable, Challenger, and FWD. These investments generated a 17% annualized return during Q1.

Within this portfolio, performance from strategic origination platforms was particularly strong and generated an 11% annualized return.

Within this portfolio performance from strategic origination platforms was particularly strong and generated an 11% annualized return.

These businesses have spread based characteristics and as Scott mentioned benefit from a rising rate environment.

These businesses have spread-based characteristics and, as Scott mentioned, benefit from a rising rate environment.

As we've been emphasizing, proprietary and recurring asset origination is an extremely important differentiator for us.

As we've been emphasizing proprietary and recurring asset origination is an extremely important differentiator for us.

We hold these investments in these origination vehicles through Athene, which provides a capital-efficient structure, attractive returning assets for Athene's investment portfolio, and frees up capital at the holding company level for other strategic growth investments.

We hold these investments in these origination vehicles through ethane, which provides a capital efficient structure attractive returning assets for <unk> investment portfolio.

Frees up capital at the holding company level for other strategic growth investments.

Strategic investments and other assignment services businesses also performed well. These are also typically spread based businesses that generally benefit in a rising rate environment and include investments such as a thorough venerable challenger and FWD.

Strategic investments in other retirement services businesses also performed well. These are also typically spread-based businesses that generally benefit in a rising rate environment and include investments such as Athora, Venerable, Challenger, and FWD.

These investments generated a 17% annualized return during the first quarter.

Martin Kelly: And lastly, the performance of investments in Apollo and other managed funds was the largest source of strength, generating a 19% return for the quarter. Every sub-asset class component of the fund investments contributed to the result, with real estate outperforming amid inflationary trends and complemented by appreciation in private equity and natural resources funds. Given the typical quarterly fluctuations in Athene's alternative returns, we also present normalized SRE, assuming a constant return of 11%, slightly below Athene's long-term average of 12%. We also normalize for certain notable items generally related to adjustments to long-term liability assumptions, which can vary favorably or unfavorably from period to period. We do not recognize these items as recurring income until it's clear they're becoming a trend.

And lastly, the performance of investments in Apollo and other managed funds was the largest source of strength, generating a 19% return for the quarter. Every sub-asset class component of the fund investments contributed to the result, with real estate outperforming amid inflationary trends and complemented by appreciation in private equity and natural resources funds. Given the typical quarterly fluctuations in Athene's alternative returns, we also present normalized SRE, assuming a constant return of 11%, slightly below Athene's long-term average of 12%. We also normalize for certain notable items generally related to adjustments to long-term liability assumptions, which can vary favorably or unfavorably from period to period. We do not recognize these items as recurring income until it's clear they're becoming a trend.

And lastly, the performance of investments in Apollo and other managed funds was the largest source of strength, generating a 19% return for the quarter.

And lastly, the performance of investments in Apollo and other managed funds was was the largest source of strength generating a 19% return for the quarter.

Every sub-asset class component of the fund investments contributed to the result with real estate outperforming amid inflationary trends and complemented by appreciation in private equity and natural resources.

Every sub asset class component of the fund investments contributed to the result, with real estate outperforming amid inflationary trends and complemented by appreciation in private equity and natural resources funds.

Given the typical quarterly fluctuations in Athene's alternative returns, we also present normalized SRE, assuming a constant return of 11%, slightly below Athene's long-term average of 12%.

Given the typical quarterly fluctuations in a things alternative returns. We also present normalized FRE, assuming a constant return of 11% slightly below of things long term average of 12%.

We also normalized for certain notable items generally generally related to adjustments to long term liability assumptions, which can vary favorably or unfavorably from period to period.

We also normalized for certain notable items generally related to adjustments to long-term liability assumptions.

which can vary favorably or unfavorably from period to period.

We do not recognize these items as recurring income until it's clear they are becoming a trend.

We do not recognize these items recurring income until it is clear they are becoming a trend.

Martin Kelly: Assuming normalized alternative returns of 11% and reducing for certain notable items, SRE would have been $488 million in Q1, translating to a normalized net spread of 108 basis points on a net basis. As Scott mentioned, our earnings benefit from rising rates, given that Athene is invested in $37 billion of floating rate securities and only has $11 billion of floating rate liabilities. Approximately 60% of the net floating rate exposure is tied to three-month LIBOR, with the remainder split between one month and other bases. Due to the timing of resets relative to the timing of rising spot rates, we experienced only a modest earnings benefit from higher short-term rates in Q1. In dollar terms, we expect every 25 basis point parallel shift in the curve to drive an additional $30 to $40 million of annual SRE.

Assuming normalized alternative returns of 11% and reducing for certain notable items, SRE would have been $488 million in Q1, translating to a normalized net spread of 108 basis points on a net basis. As Scott mentioned, our earnings benefit from rising rates, given that Athene is invested in $37 billion of floating rate securities and only has $11 billion of floating rate liabilities. Approximately 60% of the net floating rate exposure is tied to three-month LIBOR, with the remainder split between one month and other bases. Due to the timing of resets relative to the timing of rising spot rates, we experienced only a modest earnings benefit from higher short-term rates in Q1. In dollar terms, we expect every 25 basis point parallel shift in the curve to drive an additional $30 to $40 million of annual SRE.

Assuming normalized alternative returns of 11% and reducing for certain notable items, SRE would have been $488 million in the first quarter, translating to a normalized net spread of 108 basis points on a net basis.

Assuming normalized alternative returns of 11% and reducing for certain notable items.

Murray would have been $488 million in the first quarter.

Translating to a normalized net spread of 180 108 basis points on a net basis.

As Scott mentioned, our earnings benefit from rising rates given that Athene has invested in 37 billion of floating rate fixed floating rate securities.

As Scott mentioned, our earnings benefit from rising rates given that Athene has invested in $37 billion of floating rate securities and only has $11 billion of floating rate liabilities.

It only has $11 billion of floating rate liabilities.

Approximately 60% of the net floating rate exposure is tied to 3-month LIBOR, with the remainder split between 1-month and other basis.

Approximately 60% of the net floating rate exposure as tight as tied to three month LIBOR with the remainder split between one month and other bases.

Due to the timing of resets relative to the timing of rising spot rates, we experienced only a modest earnings benefit from higher short-term rates in the first quarter.

Due to the timing of resets relative to the timing of rising spot rates, we experienced only a modest earnings benefit from higher short term rates in the first quarter.

In dollar terms, we expect every 25 basis point parallel shift in the curve to drive an additional $30 to $40 million of annual SRA.

In dollar terms, we expect every 25 basis point parallel shift in the curve to drive an additional $30 million to $40 million of.

Martin Kelly: If the forward curve materializes as of April 30, we see approximately $0.30 per share of upside to SRE in 2022, specific to a benefit from higher rates. Our retirement services business creates a locked-in liability cost other than relatively small reserve adjustments for changes in expected behavior at the tail end of the contracts. For GAAP reporting, we are required to recognize the interest rate and credit spread changes on assets supporting reinsurance contracts, but we are not permitted to recognize similar changes on the associated liabilities. Our reported GAAP loss in the first quarter was driven by interest rate-driven unrealized investment losses on fixed income securities held through reinsurance. For comparability and consistency, our SRE metric adjusts for this specific treatment on reinsured assets. Lastly, moving to our principal investing segment, we reported principal investing income of $187 million in the first quarter, or $0.31 per share.

If the forward curve materializes as of April 30, we see approximately $0.30 per share of upside to SRE in 2022, specific to a benefit from higher rates. Our retirement services business creates a locked-in liability cost other than relatively small reserve adjustments for changes in expected behavior at the tail end of the contracts. For GAAP reporting, we are required to recognize the interest rate and credit spread changes on assets supporting reinsurance contracts, but we are not permitted to recognize similar changes on the associated liabilities. Our reported GAAP loss in the first quarter was driven by interest rate-driven unrealized investment losses on fixed income securities held through reinsurance. For comparability and consistency, our SRE metric adjusts for this specific treatment on reinsured assets. Lastly, moving to our principal investing segment, we reported principal investing income of $187 million in the first quarter, or $0.31 per share.

Oh, sorry.

If the forward curve materializes as of April 30, we see approximately <unk> <unk> per share of upside sorry in 2022 specific to a benefit from higher rates.

If the forward curve materializes as of April 30, we see approximately $0.30 per share of upside to SRE in 2022, specific to a benefit from higher rates.

Our retirement services business creates a locked-in liability cost other than relatively small reserve adjustments for changes in expected behavior at the tail end of the contract.

Our assignment services business creates a locked in liability costs other than relatively small reserve adjustments for changes in expected behavior at the tail end of the contracts.

For GAAP reporting, we are required to recognize the interest rate and credit spread changes on assets supporting reinsurance contracts, but we are not permitted to recognize similar changes on the associated liability.

For GAAP reporting we are required to recognize the interest rate and credit spread changes on assets supporting reinsurance contracts, but we are not permitted to recognize similar changes on the associated liabilities.

Our reported GAAP loss in the first quarter was driven by interest rate driven unrealized investment losses on fixed income securities held through reinsurance for.

Our reported gap loss in the first quarter was driven by interest rate-driven, unrealized investment losses on fixed-income securities held through reinsurance.

For comparability and consistency, our SRE metric adjusts for this specific treatment on reinsured assets.

For comparability and consistency our SRT metric adjusts for this specific treatment on reinsured assets.

Lastly, moving to our principal investing segment, we reported principal investing income of $187 million in the first quarter, or $0.31 per share.

Lastly, moving to our principal investing segment, we reported principal investing income of $187 million in the first quarter or <unk> 31 per share.

Martin Kelly: Realized performance fee generation was relatively light in the quarter in view of turbulent markets. Our current two flagship private equity funds, Funds 8 and 9, remain primed to monetize their portfolios when we feel the market backdrop is opportune to harvest. Realized investment income included $206 million from realized gains on the transfer of the majority of Apollo's GP investments. This portfolio was transferred to Athene in the first quarter, and we expect will soon be transferred to a fund managed by Apollo, including third-party capital, to support fundraising in a new strategy. We note that we are now presenting wholesale and other financing costs as a separate line item on our income statement outside PII. We estimate that PII in 2022 will align with our multi-year forecast of approximately $1 per share on average, excluding interest and financing costs over the next five years.

Realized performance fee generation was relatively light in the quarter in view of turbulent markets. Our current two flagship private equity funds, Funds 8 and 9, remain primed to monetize their portfolios when we feel the market backdrop is opportune to harvest. Realized investment income included $206 million from realized gains on the transfer of the majority of Apollo's GP investments. This portfolio was transferred to Athene in the first quarter, and we expect will soon be transferred to a fund managed by Apollo, including third-party capital, to support fundraising in a new strategy. We note that we are now presenting wholesale and other financing costs as a separate line item on our income statement outside PII. We estimate that PII in 2022 will align with our multi-year forecast of approximately $1 per share on average, excluding interest and financing costs over the next five years.

realized performance regeneration was relatively light in the quarter in view of turbulent markets.

Realized performance fee generation was relatively light in the quarter and view of turbulent markets are.

Our current two flagship private equity funds, Funds 8 and 9, remain primed to monetize their portfolios when we feel the market backdrop is opportune to harvest.

Our current through flagship private equity funds funds eight or nine remained primed to monetize their portfolios. When we feel the market drop backdrop is opportune to harvest.

Realized investment income included $206 million from realized gains on the transfer of the majority of Apollo's GP investment.

Realized investment income included $206 million from realized gains on the transfer of the majority of Apollo's GP investments.

This portfolio was transferred to Athene in the first quarter and we expect will soon be transferred to a fund managed by Apollo, including third party capital, to support fundraising in a new strategy.

This portfolio was transferred to Athene in the first quarter and we expect will soon be transferred to a fund managed by Apollo, including third party capital to support fund raising and a new strategy.

We note that we are now presenting holdco and other financing costs as a separate line item on our income statement outside.

We note that we are now presenting Holco and other financing costs as a separate line item on our income statement outside PII.

We estimate that in 2022 will align with our multi year forecast of approximately $1 per share on average excluding interest and financing costs over the next five years.

We estimate the PII in 2022 will align with our multi-year forecast of approximately $1 per share on average, excluding interest and financing costs over the next five years.

Martin Kelly: Now turning to capital, we spent $325 million in the quarter to repurchase shares to offset dilution with respect to employee share deliveries, in line with our plan to immunize our share count from equity-based compensation. Given the recent dislocation in our stock, we are actively evaluating opportunistic share repurchases as part of our announced share repurchase program, while continuing to balance investing in interesting investments that should accelerate our growth profile over the long term. We utilized approximately $150 million of capital from the holding company on strategic investments in Q1, primarily for our investment in CAIS. Athene ended the quarter in a strong capital position with $7.3 billion of deployable capital, including $3.3 billion of excess equity capital, $2.9 billion of untapped debt capacity, and $1.1 billion of dry powder in the ADIP sidecar.

Now turning to capital, we spent $325 million in the quarter to repurchase shares to offset dilution with respect to employee share deliveries, in line with our plan to immunize our share count from equity-based compensation. Given the recent dislocation in our stock, we are actively evaluating opportunistic share repurchases as part of our announced share repurchase program, while continuing to balance investing in interesting investments that should accelerate our growth profile over the long term. We utilized approximately $150 million of capital from the holding company on strategic investments in Q1, primarily for our investment in CAIS. Athene ended the quarter in a strong capital position with $7.3 billion of deployable capital, including $3.3 billion of excess equity capital, $2.9 billion of untapped debt capacity, and $1.1 billion of dry powder in the ADIP sidecar.

Now turning to capital, we spent $325 million in the quarter to repurchase shares to offset dilution with respect to employee shareholders in line without plants immunize, our share count from equity based compensation.

Given the recent dislocation in our stock, we are actively evaluating opportunistic share repurchases as part of our analysis.

Given the recent dislocation in our stock we are actively evaluating opportunistic share repurchases as part of our announced.

Share repurchase program.

share recursion program while continuing to balance investing in interesting investments that should accelerate our growth profile over the long term.

While continuing to balance investing in interesting investments that should accelerate our growth profile over the long term.

We utilized approximately $150 million of capital from the holding company on strategic investments in the first quarter, primarily for our investment in CASE.

We utilized approximately $150 million of capital from the holding company on strategic investments in the first quarter, primarily for our investment in case.

Thien ended the quarter in a strong capital position with $7.3 billion of deployable capital, including $3.3 billion of excess equity capital, $2.9 billion of untapped debt capacity, and $1.1 billion of dry powder in the ADIP sidecar.

<unk> ended the quarter in a strong capital position was $7 3 billion of deployable capital, including $3 $3 billion of excess equity capital $2 $9 billion of untapped untapped debt capacity and $1 $1 billion of dry powder in the Afib sika.

Martin Kelly: At the end of the first quarter, our net balance sheet value was $2.5 billion, or $4.22 per share, which included cash and equivalents of $2.2 billion. In line with our fixed dividend policy, we declared a dividend of $0.40 per share in the first quarter. So to wrap up and to echo Marc, our first quarter results set us up very well for a strong year of growth. We're excited to share the progress we continue to make executing our long-term strategic plan in the coming quarters. And with that, I'll turn the call back to the operator for Q&A. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from the line of Glenn Schorr from Evercore ISI.

At the end of the first quarter, our net balance sheet value was $2.5 billion, or $4.22 per share, which included cash and equivalents of $2.2 billion. In line with our fixed dividend policy, we declared a dividend of $0.40 per share in the first quarter. So to wrap up and to echo Marc, our first quarter results set us up very well for a strong year of growth. We're excited to share the progress we continue to make executing our long-term strategic plan in the coming quarters. And with that, I'll turn the call back to the operator for Q&A.

At the end of the first quarter, our net balance sheet value was $2.5 billion, or $4.22 per share, which included cash and equivalents of $2.2 billion.

At the end of the first quarter, our net balance sheet value was $2 5 billion or $4 22 per share, which included cash and equivalents of $2 2 billion.

In line with a fixed dividend policy, we declared a dividend of <unk> 40 per share in the first quarter.

In line with our fixed dividend policy, we declared a dividend of $0.40 per share in the first quarter.

So to wrap up and to Echo Mark our first quarter results set us up very well for a strong year of growth.

So to wrap up and to echo Mark, our first quarter results set us up very well for a strong year of growth.

We're excited to share the progress we continue to make executing our long-term strategic plan in the coming quarters. And with that, I'll turn the call back to the

We're excited to share the progress we continue to make executing our long term strategic plan in the coming quarters.

And with that I will turn the call back to the operator for Q&A.

Operator: As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from the line of Glenn Schorr from Evercore ISI.

Yeah.

As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster.

As a reminder to ask a question you will need to press star one on your telephone.

Your question press the pound key please standby, while we compile the Q&A roster.

Our first question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Our first question comes from the line of Glenn Shor from Evercore ISI. Your line is now open.

Martin Kelly: Your line is now open.

Your line is now open.

Glenn Schorr: Hi, thank you. I just want to touch on one of the last things you mentioned and get the big picture. I just need a little more color to fully understand it. The big picture of what you're moving, the $5 billion from Apollo Balance to Athene to funds, what that's happening, and what does that do for you at the highest level?

Hi, Thank you I just wanted to touch on one of the last things you mentioned and get the Big picture.

Hi, thank you. I just want to touch on one of the last things you mentioned and get the big picture. I just need a little more color to fully understand it. The big picture of.

Need a little more color to fully understand that the big picture of.

What you are moving in the $5 billion of Apollo from Palo bouncing to Athene two funds.

what you're moving in the five billion from Powell Balanchine to Athene to fund.

what that's happening and what does that do for you at the highest.

What that's happening and what does that do for you at the highest level.

Scott Kleinman: So Glenn, it's not $5 billion. It's much less than that. It's a portion of the existing GP investments. You'll notice that the balance sheet went down significantly. Most of that drop is related to the merger. The investment we had in Athene obviously goes away on consummation of the merger. So what we are moving is a majority of the GP stakes that we own in funds that we manage, and they're moving to a vehicle, which we expect will occur in Q2 to support a third-party capital-raising initiative.

So, Glenn, it's Martin, it's not $5 billion, it's much less than that, it's a portion of the existing GP investments. You'll notice that the balance sheet...

So Glenn.

Glenn It's Martin.

$5 billion, it's much it's much less than that it's a portion of the existing GP investments.

Youll notice that the balance sheet went down significantly most of that drop is the is related to the merger.

went down significantly. Most of that drop is related to the merger. The investment we had in Athene obviously goes away on consummation of the merger. So what we are moving is a majority of the

Investment we had in Athene, obviously goes away on consummation of the merger so.

So what we are moving is a majority of the GP Stakes that we are in funds that we manage.

GP stakes that we are in, in funds that we manage, and then moving to a vehicle which we expect will occur in the second quarter to support a third-party capital rate.

And then moving to a vehicle.

Which we expect will occur in the second quarter two to support a third party capital raising initiatives.

Martin Kelly: Thank you. Our next question comes from the line of Finian O'Shea from WFF. Your line is now open.

Operator: Thank you. Our next question comes from the line of Finian O'Shea from WFF. Your line is now open.

Thank you. Our next question comes from the line of Finian O'shea W. Anthony Your line is now open.

Thank you. Our next question comes from the line of Finian O'Shea from WFS. Your line is now open.

[Analyst] (Wells Fargo): Hi everyone. Good morning. Can you talk a bit about how rising interest rates is impacting the outlook for high-grade origination?

Finian O'Shea: Hi everyone. Good morning. Can you talk a bit about how rising interest rates is impacting the outlook for high-grade origination?

Hi everyone. Good morning. Can you talk a bit about how rising interest rates is impacting the outlook for high-grade origination?

Hey, everyone. Good morning.

Can you talk a bit about how the.

How rising interest rates is impacting the outlook for high grade origination.

Marc Rowan: Look, it's Marc. I'll start with the balance sheet, and then we'll talk about origination. So as Scott mentioned in the call, when Athene, or quite frankly, any other retirement services company, assumes a liability, it matches it with assets, and we so-called ALM matching. There is a portion of that that needs to be reinvested over a period of time representing the profit on the contract. When people talk about ALM matching, they're talking about matching an asset and a liability, but profit to some extent is unhedged. And therefore, if you are putting assets on the books in a rate environment that are higher than the rate environment when you assume the liability, that is generally a positive. In addition, what we've seen is a benefit from floating rate.

Yes.

Look, it's Mark. I'll start with the balance sheet and then we'll talk about origination. So, as Scott mentioned in the call, when Athene, or quite frankly any other retirement services company, assumes a liability, it matches it with assets.

It's mark I'll start with the balance sheet and then we'll talk about origination so as Scott mentioned in the call when athene or quite frankly, any other retirement services company.

Assumes the liability it matches it with assets and we so called <unk> matching.

There is a portion of that that needs to be reinvested over a period of time, representing the profit on the contract. When people talk about ALM matching, they're talking about matching an asset and a liability, but profit to some extent is unhedged, and therefore, if you are putting assets on the books in a rate environment that are higher than the rate environment when you assume the liability, that is generally a positive. In addition,

There is a portion of that.

That needs to be reinvested over a period of time, representing the profit on the contract when people talk about elan matching theyre talking about matching an asset and a liability but profit to some extent is unhedged and therefore, if you are putting assets on the books in a rate environment that are higher than the rate environment. When you assumed the liability that is generally a positive.

In addition, what we've seen is.

benefit from floating rate. Now your specific question as it relates to origination, generally what we have seen is the newly underwritten product is being underwritten in the context of higher rates and yet our funding

Marc Rowan: Now, your specific question as it relates to origination, generally what we have seen is the newly underwritten product is being underwritten in the context of higher rates, and yet our funding costs on these platforms are relatively sticky. So we've seen expanding margins across the platform. To the extent rising rates, and just to give you a sense, through, I guess, last week, the investment-grade market was off 17%. It's made people gun-shy, and we've seen this across most public credit markets. To the extent there is dislocation in public credit markets, we are a better, more secure, more definite source of capital. All of those things benefit. On average, we are better off with rising rates.

Now, your specific question as it relates to origination, generally what we have seen is the newly underwritten product is being underwritten in the context of higher rates, and yet our funding costs on these platforms are relatively sticky. So we've seen expanding margins across the platform. To the extent rising rates, and just to give you a sense, through, I guess, last week, the investment-grade market was off 17%. It's made people gun-shy, and we've seen this across most public credit markets. To the extent there is dislocation in public credit markets, we are a better, more secure, more definite source of capital. All of those things benefit. On average, we are better off with rising rates.

Benefit from floating rate now your specific question as it relates to origination.

Generally what we have seen is the at the newly underwritten product is being underwritten in the context of higher rates and yet our funding costs. On these platforms are relatively sticky. So we've seen expanding margins across the platform to the extent rising rates and just to give you a sense.

on these platforms are relatively sticky, so we've seen expanding margins across the platform.

To the extent, rising rates, and just to give you a sense, through, I guess, last week, the investment-grade market was off 17%.

Through I guess, the last week the investment grade market was off 17%.

It's made people gun-shy and we've seen this across most public credit markets to the extent there is dislocation in public credit markets.

It's made people gun-shy, and we've seen this across most public credit markets. To the extent there is dislocation in public credit markets, we are a better, more secure, more definite source of capital.

We are a better.

More secure more definite source of capital all of those things benefit.

On average we are better off with rising rates.

[Analyst] (Wells Fargo): Yeah, I would just chime in that, yeah, as Marc said, the origination teams are as busy as they've ever been. So the rising rate environment, the tightening of the liquidity environment is making things even more attractive.

Scott Kleinman: Yeah, I would just chime in that, yeah, as Marc said, the origination teams are as busy as they've ever been. So the rising rate environment, the tightening of the liquidity environment is making things even more attractive.

I would just chime in that, yeah, as Mark said, the origination teams are as busy as they've ever been. So the rising rate environment, the tightening of the liquidity environment is making things even more challenging.

Yes, I would just chime in that yes, as Mark said the the origination teams are as busy as they've ever been so the rising rate environment that tightening of the liquidity environment.

Is making things even more attractive.

Scott Kleinman: Right, with further benefits at Athene with the floating rate assets and higher rates increases the origination of an annuity product. It's a benefit around the whole system.

Martin Kelly: Right, with further benefits at Athene with the floating rate assets and higher rates increases the origination of an annuity product. It's a benefit around the whole system.

Right, with further benefits of ethane with the floating rate assets and higher rates increases the origination of annuity product.

Right with further benefits of the thing with the floating rate assets and higher rates increases the origination this revenue annuity product. So it's a benefit around the whole system.

Martin Kelly: Thank you. Our next question comes from the line of Alexander Blostein from Goldman Sachs. Your line is now open.

Operator: Thank you. Our next question comes from the line of Alexander Blostein from Goldman Sachs. Your line is now open.

Thank you. Our next question comes from the line of Alexander <unk> from Goldman Sachs. Your line is now open.

Thank you. Our next question comes from the line of Alexander Gloskin from Goldman Sachs. Your line is now open.

[Company Representative] (Apollo Global Management): Hey, good morning, guys. Thanks for the question. Also, maybe a little bit of a bigger picture question around just capital allocation priorities here. The stock's been under considerable pressure here relative to kind of either the insurance comp set or the asset management comp set. You guys are generating a substantial amount of capital and have lots of excess capital. I heard both Marc and Scott talk also about different kind of new investment opportunities and, I guess, sounds like acquisitions maybe on the asset management side or on the origination side. I guess, how do you weigh those inorganic opportunities against the buyback at these share prices?

Alexander Blostein: Hey, good morning, guys. Thanks for the question. Also, maybe a little bit of a bigger picture question around just capital allocation priorities here. The stock's been under considerable pressure here relative to kind of either the insurance comp set or the asset management comp set. You guys are generating a substantial amount of capital and have lots of excess capital. I heard both Marc and Scott talk also about different kind of new investment opportunities and, I guess, sounds like acquisitions maybe on the asset management side or on the origination side. I guess, how do you weigh those inorganic opportunities against the buyback at these share prices?

Hey, good morning, guys. Thanks for the question.

Hey, good morning, guys. Thanks for the question. Also, maybe a little bit of a bigger picture question around just capital allocation priorities here.

So maybe a little bit of a bigger picture question around just capital allocation priorities here.

The stock's been under considerable pressure here relative to either the insurance comp set or the asset management comp set. You guys are generating a substantial amount of capital and have lots of excess capital. I heard both Mark and Scott talk also about different kind of new investment opportunities and I guess sounds like acquisitions may be on the asset management side or on the origination side. I guess how do you weigh those inorganic opportunities against the buyback of these share prices?

The stock has been under considerable pressure here relative to kind of either of the insurance content or the asset management content.

You guys are generating substantial amount of capital and have lots of excess capital or heard both mark and Scott talk also about different kind of new investment opportunities and I guess it sounds like acquisitions, maybe on the asset management side or on the origination side.

How do you weigh those inorganic opportunities against the buyback could be share prices.

Marc Rowan: Look, let's do it at the highest level. Just to give you the context, Mark, by the way, context from an investor day, we said at investor day that we expect to generate $15 billion of excess capital over the next five years. $5 billion to support what we'll call the base dividend, $5 billion for investment in the business, and $5 billion that we would use opportunistically either to invest or for buybacks or for dividends. I think Martin said it best. Given where the stock is, we expect to use a portion of that to buyback stock. The stock is very attractive from our point of view. Now, one needs to actually generate the $5 billion to be able to spend it, but one can argue that probably the highest and best use of our excess capital is our own stock.

Let's do it at the highest level, and just to give you the context from an investor day. We set an investor day that we expect to generate $15 billion of excess capital over the next five years, $5 billion to support what we'll call the

Let's do it at the highest level in just to give you the smart by the way context from an Investor Day, We said at Investor Day that we expect to generate 15 billion of excess capital over the next five years.

$5 billion to support what we'll call the base dividend 5 billion for investment in the business and $5 billion that we would use opportunistically either to invest or for buybacks or for dividends.

$5 billion that we would use opportunistically either to invest or for buybacks or for

I think Martin said it best, given where the stock is.

Martin said, it best given where the stock is.

We expect to use a portion of that to buy back stock. The stock is very attractive from our point of view now one needs to actually generate the $5 billion to be able to spend it.

portion of that to buy back stock. The stock is very attractive from.

now one needs to actually generate the five billion to be able to spend it

One can argue that.

probably the highest and best use of our excess capital is our own stock.

Probably the highest and best use of our excess capital is our own stock.

Martin Kelly: Thank you. Our next question comes from the line of Michael Cyprys from Morgan Stanley. Your line is now open.

Operator: Thank you. Our next question comes from the line of Michael Cyprys from Morgan Stanley. Your line is now open.

Thank you. Our next question comes from the line of Michael Klein, France from Morgan Stanley . Your line is now open.

Thank you. Our next question comes from the line of Michael Cypress from Morgan Stanley . Your line is now open.

Alexander Blostein: Hey, good morning. It's Tuma here standing in for Michael. I just wanted to ask a quick question about getting an update on retail and getting updates on the resources you're deploying in the channel today, and how you anticipate those resources and headcount expanding from here. I know you talked about the folks that come across from Griffin, so how do you expect that to trend from here?

[Analyst] (Morgan Stanley): Hey, good morning. It's Tuma here standing in for Michael. I just wanted to ask a quick question about getting an update on retail and getting updates on the resources you're deploying in the channel today, and how you anticipate those resources and headcount expanding from here. I know you talked about the folks that come across from Griffin, so how do you expect that to trend from here?

Hey, good morning. It's Truman here, standing in for Michael. I just wanted to ask a quick question about getting an update on retail and get an update on the resources you're deploying in the channel today and how you anticipate those resources and headcount expanding from here. Maybe talk about the folks that come across from Griffin. So how do you expect that to trend from here?

Hey, Good morning. This is to me here standing in for Michael I, just wanted to ask a quick question about.

Kind of an update on retail.

We get an update on the resources Youre deploying in the channel today, and how you anticipate those resources and head count expanding from here, maybe I will start with folks that come across from Griffin.

I would expect that to trend from here.

Marc Rowan: Yeah, sure. Look, as Mark mentioned in his comments, we've seen over the last year headcount go from about 25 to about 145. That gives us a really strong footing for both our high-net-worth as well as RIA channels to be able to support that, as well as the product development capabilities. You heard Mark talk a bunch about the new products that we are going to be bringing. All of those things, right, the pipes, the product, and the technology are critical to being successful in the retail and global wealth channel. From here, we will continue to grow as appropriate. I think the rate of change will come down meaningfully, but there's still more ground to cover. As we're learning, there's always more ground to cover in the retail channel. But couldn't be more excited about where things are headed.

Scott Kleinman: Yeah, sure. Look, as Mark mentioned in his comments, we've seen over the last year headcount go from about 25 to about 145. That gives us a really strong footing for both our high-net-worth as well as RIA channels to be able to support that, as well as the product development capabilities. You heard Mark talk a bunch about the new products that we are going to be bringing. All of those things, right, the pipes, the product, and the technology are critical to being successful in the retail and global wealth channel. From here, we will continue to grow as appropriate. I think the rate of change will come down meaningfully, but there's still more ground to cover. As we're learning, there's always more ground to cover in the retail channel. But couldn't be more excited about where things are headed.

Yes sure.

Yes, sure. Look, as Mark mentioned in his comments, you know, we've seen over the last year, you know, headcount go from about 25 to about 145.

As Mark mentioned in his comments, we've seen over the last year head count go from about 25 to about 145.

That gives us a really strong footing for both our high net worth as well as, you know, RIA channels to be able to support that, as well as the product development capabilities. You heard Mark talk a bunch about the new product that we are going to be bringing. All of those things, right, the pipes, the product, and the technology are critical to being successful in the retail and global wealth channel.

That gives us a really strong footing for both our high net worth as well as RIAA channels to be able to support that as well as the product development capabilities, you heard Mark talked a bunch about the new products that we are going to be bringing.

All of those things right the pipes the product and the technology are critical to being successful.

In the retail and global wealth channel.

From here, we will continue to grow as appropriate. I think the rate of change will come down meaningfully, but there's still more ground to cover. As we're learning, there's always more ground to cover in the retail channel.

From here, we will continue to grow as appropriate I think the rate of change will come down meaningfully but.

There is still more ground to cover as we're learning there is always more ground to cover in the retail channel.

But couldnt be more excited about where things are headed and I would expect quarter after quarter youre going to see new product announcements from Apollo and the scale of capital raising continuing to ramp in that channel.

couldn't be more excited about where things are headed uh... and and i would expect quarter after quarter you're going to see uh... new product announcement from apollo uh... and the scale of capital raising continuing to ramp in that channel

Marc Rowan: I would expect quarter after quarter, you're going to see new product announcements from Apollo and the scale of capital raising continuing to ramp in that channel.

I would expect quarter after quarter, you're going to see new product announcements from Apollo and the scale of capital raising continuing to ramp in that channel.

Martin Kelly: Thank you. Our next question comes from the line of Patrick Davitt from Autonomous Research. Your line is now open.

Operator: Thank you. Our next question comes from the line of Patrick Davitt from Autonomous Research. Your line is now open.

Thank you. Our next question comes from the line of Patrick Davitt from Autonomous Research. Your line is now open.

Thank you. Our next question comes from the line of Patrick DeVit from Autonomous Research. Your line is now open.

[Analyst] (Wells Fargo): Morning, everyone. A follow-up on that, you said 1 to 2 products a quarter over the next 12 to 18 months. Should we take that to mean there's an expectation that these new products will have immediate distribution placement in wirehouses, etc., or should we expect the usual lag to getting those products placed?

Patrick Davitt: Morning, everyone. A follow-up on that, you said 1 to 2 products a quarter over the next 12 to 18 months. Should we take that to mean there's an expectation that these new products will have immediate distribution placement in wirehouses, etc., or should we expect the usual lag to getting those products placed?

Good morning, everyone I'll follow up on that you said one to two products quarter over next 12 to 18 months should we take that to mean there is an expectation that these new products will have immediate distribution placement and wire houses et cetera, or should we expect the usual lag to getting those products placed.

Morning, everyone. A follow-up on that. You said, you know, one to two products a quarter over the next 12 to 18 months. Should we take that to mean there's an expectation that these new products will have immediate distribution placement in wirehouses, et cetera, or should we expect the usual lag to getting those products placed?

Marc Rowan: Look, I think you're going to see the products that have immediate distribution placements. Some will be directly into wirehouses. Some will be directly to RIA. And I think the thing I want to make sure I communicate is a view that we view this as really the first inning. What's happened to date across the entirety of our industry has been the repurposing of existing products for this channel at institutional fees. The next phase of this is products created specifically for this marketplace that deal with the unique needs of this marketplace. Diversification, no J Curve, no double fees, no capital calls, semi-liquid, full alignment. That's where we believe this market is going. And again, I'll come back.

Look I think youre going to see the products that have immediate distribution placements.

Look, I think you're going to see the products that have immediate distribution.

Some will be directly into wirehouses. Some will be directly to RIA. And I think

<unk> will be directly into wire houses some will be directly to our IAA.

And I think the thing I want to make sure I communicate is a view that we are really we view this as really the first inning what's.

a view that we're really we view this as really the first.

What's happened to date across the entirety of our industry has been the repurposing of existing products for this channel.

What's happened to date across the entirety of our industry has been the repurposing of existing products for this channel at institutional fees.

The next phase of this is products created specifically for this marketplace that deal with the unique needs of...

The next phase of this is products created specifically for this marketplace that deal with the unique needs of this marketplace diversification no J curve no double fees no capital calls semi liquid full alignment.

diversification, no J-curve, no double fees, no capital calls, semi-liquid, full alignment.

That's where we believe this market is going. And again, I'll come back. We have, as alternative managers, often talked about our

And that's where we believe this market is going and again I'll come back we have as alternative managers often talked about our business in historical context, where we are in the small alternative bucket REIT private equity and a number of things like it at our Investor day, we sought to broaden that definition to show you that we view alternative.

Marc Rowan: We have, as alternative managers, often talked about our business in historical contexts where we are in the small alternative bucket, read private equity and a number of things like it. At our investor day, we sought to broaden that definition to show you that we view alternatives, particularly in the yield marketplace, to include investment grade. I believe the way we think about the product and the way we communicate the product is investors have had a relatively benign experience over the past decade against a backdrop of money printing, which has existed since 2008, and falling rates. On a go-forward basis, to the extent the market does not look like that, I believe that investors will be challenged and will be revisiting in wholesale the notion of a 60/40/40/60 portfolio. Our ambition is not to just serve a traditional alternatives bucket.

We have, as alternative managers, often talked about our business in historical contexts where we are in the small alternative bucket, read private equity and a number of things like it. At our investor day, we sought to broaden that definition to show you that we view alternatives, particularly in the yield marketplace, to include investment grade. I believe the way we think about the product and the way we communicate the product is investors have had a relatively benign experience over the past decade against a backdrop of money printing, which has existed since 2008, and falling rates. On a go-forward basis, to the extent the market does not look like that, I believe that investors will be challenged and will be revisiting in wholesale the notion of a 60/40/40/60 portfolio. Our ambition is not to just serve a traditional alternatives bucket.

in historical context where we are in the small alternative bucket, read private equity.

like it. At our Investor Day, we sought to broaden that definition to show you that we view alternatives, particularly in the yield marketplace, to include...

<unk>, particularly in the yield marketplace to include investment grade.

I believe the way we think about the product and the way we communicate the product is investors have had a relatively benign experience over the past decade against a backdrop of money printing, which has existed since 2008, and falling rates.

I believe the way, we should we think about the product and the way we communicate the product is investors have had a relatively benign experience over the past decade against the backdrop.

The money printing, which has existed since 2008.

And falling rates.

On a go forward basis to the extent the market does not look like that I believe that investors will be challenged and we will be revisiting in wholesale the notion of a 60 40 40 60 portfolio.

I believe that investors will be challenged and will be revisiting in wholesale the notion of a 60-40, 40-60.

Our ambition is not to just serve a traditional alternative.

Our ambition is not to just soft serve a traditional alternatives bucket. It is to serve stable value investment grade.

Marc Rowan: It is to serve stable value, investment grade, Total Return, opportunistic, REIT, BDC, hedge, and equity, and to offer a complete alternatives ecosystem guided by the notion of excess return per unit of risk.

It is to serve stable value, investment grade, Total Return, opportunistic, REIT, BDC, hedge, and equity, and to offer a complete alternatives ecosystem guided by the notion of excess return per unit of risk.

It is to serve stable value, investment grade, total return, opportunistic, REIT, BDC, hedge, and equity.

Total return.

Opportunistic.

Right.

<unk>.

And equity.

And to offer a complete alternatives ecosystem.

Guided by the notion of excess return per unit of risk.

Martin Kelly: Thank you. Our next question comes from the line of Robert Lee from Keefe, Bruyette & Woods. Your line is now open.

Operator: Thank you. Our next question comes from the line of Robert Lee from Keefe, Bruyette & Woods. Your line is now open.

Thank you. Our next question comes from the line of Robert A. Lee from Keith, Brewitt & Wohl. Your line is now open. Great. Good morning. Thanks for taking my questions. Maybe the first one, this is going to the alternative investment portfolio.

Thank you. Our next question comes from the line of Robert <unk> from Keefe Bruyette <unk>. Your line is now open.

[Analyst] (Morgan Stanley): Great. Good morning. Thanks for taking my questions. Maybe the first one is just going to the alternative investment portfolio. And just maybe digging a little bit deeper, with about 46% of the assets there being in some type of platform, whether it's the retirement services or origination platforms, is it reasonable to think of the SRE from those or the earnings from those platforms as being actually pretty stable quarter to quarter over time so that there's actually a pretty healthy kind of you always have a pretty healthy, stable base of revenues that are thrown off at least by that 46% allocation?

Robert Lee: Great. Good morning. Thanks for taking my questions. Maybe the first one is just going to the alternative investment portfolio. And just maybe digging a little bit deeper, with about 46% of the assets there being in some type of platform, whether it's the retirement services or origination platforms, is it reasonable to think of the SRE from those or the earnings from those platforms as being actually pretty stable quarter to quarter over time so that there's actually a pretty healthy kind of you always have a pretty healthy, stable base of revenues that are thrown off at least by that 46% allocation?

Great. Good morning, Thanks for taking my questions, maybe the first one.

This is going to the alternative investment portfolio. So.

And just maybe digging a little bit deeper, with about 46% of the assets there being in some type of platform, whether it's the retirement services or origination platforms, is it reasonable to think of the SRE from those or the earnings from those platforms as being...

Just maybe digging a little bit deeper.

46% of the assets they are being in some type of platform, whether it's the retirement services origination platforms.

Is it reasonable to think of the.

The SRA from those would be the.

Earnings from those platforms as being.

Actually pretty are pretty stable quarter to quarter over time. So that there is actually a pretty healthy kind of you always have a pretty healthy stable base of revenues.

actually pretty or pretty stable quarter to quarter over time so that there's actually a pretty healthy kind of you always have a pretty healthy stable base of revenues that you know are thrown off at least by that 46 percent allocation.

Thrown off by at least by that 46% allocation.

Marc Rowan: Yeah, that's exactly the point. These platforms are businesses that are producing origination flow for the underlying retirement services, fixed income portfolio. And then the equity of those platforms are what's in the alternatives portfolio. As those businesses continue to grow, as we continue to invest in those platforms, you're seeing just pretty stable scaling earnings growth in those platforms. You can see some of the trends we've highlighted for you on page 16 of the earnings slides.

Scott Kleinman: Yeah, that's exactly the point. These platforms are businesses that are producing origination flow for the underlying retirement services, fixed income portfolio. And then the equity of those platforms are what's in the alternatives portfolio. As those businesses continue to grow, as we continue to invest in those platforms, you're seeing just pretty stable scaling earnings growth in those platforms. You can see some of the trends we've highlighted for you on page 16 of the earnings slides.

Yeah.

Yeah, you know that that's exactly the point these platforms are businesses

That's exactly the point these platforms our business is that.

that are producing origination flow for the underlying retirement services, you know, fixed income portfolio, and then the equity of those platforms are what's in the alternatives portfolio. As those businesses continue to grow, as we continue to invest in those platforms.

That are producing origination flow for the for the.

Underlying retirement services fixed income portfolio.

And then the equity of those platforms are what's in the alternatives portfolio as as those businesses continue to grow as we continue to invest in those platforms Youre seeing just pretty stable scaling earnings growth in those platforms you can see.

You know, you're seeing just pretty stable scaling earnings growth, you know, in those platforms. You can see some of the trends we've, you know, we've highlighted for you on page 16 of the earnings slide.

Some of the trends we've.

We've highlighted for you on page 16 of the earnings slides.

Martin Kelly: Thank you. Our next question comes from the line of Rufus Hone from Bank of Montreal. Your line is now open.

Thank you. Our next question comes from the line of Rufus Hone from Bank of Montreal. Your line is now open.

Thank you. Our next question comes from the line of Rupert <unk> from Bank of Montreal. Your line is now open.

[Analyst] (Wells Fargo): Great. Good morning. Thanks for taking my question. I wanted to come back to the global wealth business. And it sounds like you expect a pretty meaningful inflection in the rate of growth there over the next, call it, two to three years. And with a lot of new product launches in the pipeline, will most of these be in the broader retail alts definition you mentioned, or will it be in the more traditional retail alts bucket where there's slightly more competition like private BDCs, private REITs, and so on? And do you expect this will primarily still be a high-net-worth market in three to five years, or do you think the market opens up more substantially over time? Thank you.

Rufus Hone: Great. Good morning. Thanks for taking my question. I wanted to come back to the global wealth business. And it sounds like you expect a pretty meaningful inflection in the rate of growth there over the next, call it, two to three years. And with a lot of new product launches in the pipeline, will most of these be in the broader retail alts definition you mentioned, or will it be in the more traditional retail alts bucket where there's slightly more competition like private BDCs, private REITs, and so on? And do you expect this will primarily still be a high-net-worth market in three to five years, or do you think the market opens up more substantially over time? Thank you.

Great. Good morning, Thanks for taking my question I wanted to come back to the global wealth business and it sounds like you expect a pretty meaningful inflection in the rate of growth there over the next.

Great. Good morning. Thanks for taking my question. I wanted to come back to the global wealth business, and it sounds like you expect a pretty meaningful inflection in the rate of growth there over the next

call it two to three years. And with a lot of new product launches in the pipeline, will most of these be in the broader retail holds definition you mentioned, or will it be in the more traditional retail holds bucket where there's slightly more competition, like private BDCs and private REITs and so on? And do you expect this will primarily still be a high net worth market in three to five years, or do you think the market opens up more substantially over time? Thank you.

Call. It two to three years and with a lot of new product launches in the pipeline, where most of these being the broader retail definition, you mentioned or will it be in the more traditional retail bucket or that slightly more competition like private bdcs and private Reits and so on.

And do you expect this will primarily still be a high net worth market in three to five years or do you think the market opens up more substantially over time.

Marc Rowan: So it's Marc. I'll start, and then I'll hand it to Scott. So all I can say is yes. I know that that's not clarity, but recall how in Investor Day how we based our business. We've set out a five-year plan, which includes raising a total of having total AUM of roughly $50 billion at retail over the five-year period. I believe that target is a very conservative target, and I am optimistic on our chances to be able to exceed that. How the market develops, I think we have to have some bit of humility in looking forward. Product launches are notoriously complicated, and we will seek broad market acceptance. If you ask us for opinion, I think the market will be, in the short term, high-net-worth. It will be balanced between the competing traditional definition of alternatives as well as newer definition of alternatives.

Thank you.

So it's Marc I'll start and then I'll hand, it to Scott all I can say is yes.

So it's Mark. I'll start and then I'll hand it to Scott. So all I can say is yes.

I know thats not clarity, but recall, how investor day, how we based our business. We've set out a five year plan, which includes raising a total of having total AUM of roughly $50 billion at retail over the five year period I believe that target is a <unk>.

I know that that's not clarity, but recall how investor day, how we based.

We've set out a five-year plan, which includes...

raising a total of, having total AUM of roughly $50 billion at retail over the five-year period. I believe that target

A conservative target and I am optimistic on our chances to be able to exceed that.

How the market develops I think we have to have some bit of humility and looking forward product launches.

How the market develops, I think we have to have some bit of humility in looking forward. Product launches are notoriously complicated, and we will seek broad market acceptance.

Are notoriously complicated.

And we will seek broad market acceptance if you ask us for opinion I think the market will be in the short term high net worth it will be balanced between or the competing traditional definition of alternatives as well as newer definition of alternatives.

If you ask us for opinion, I think the market will be, in the short term, high net worth. It will be balanced between...

or the competing traditional definition of alternatives as well as newer definition of alternatives.

Marc Rowan: And it is our job to differentiate our product from a competitive marketplace around the way we offer these products, the creativity with which we offer these products, the alignment that we will have with retail investors around these products. And as Scott mentioned, Purchase Price Matters. To the extent we have a vision of alternatives making up a much larger portion of a portfolio that will necessarily include the expanded definition of alternatives and consumers, be they high-net-worth or mass affluent or otherwise, will need to feel that they are making secure choices and not buying just volatility. Yeah, no, I would just add what Marc was alluding to, right? As this market develops, of course, it's going to start with the traditional definition of retail products that are truly institutional quality products but offered to retail in a more attractive fashion.

And it is our job to differentiate our product from a competitive marketplace around the way we offer these products, the creativity with which we offer these products, the alignment that we will have with retail investors around these products. And as Scott mentioned, Purchase Price Matters. To the extent we have a vision of alternatives making up a much larger portion of a portfolio that will necessarily include the expanded definition of alternatives and consumers, be they high-net-worth or mass affluent or otherwise, will need to feel that they are making secure choices and not buying just volatility.

And it is our job to differentiate our product from a competitive marketplace.

Round the way we offer these products the creativity with which we offer these products.

The alignment that we will have with retail investors.

These products and as Scott mentioned purchase price matters too.

To the extent, we have a vision of alternatives, making up a much larger portion.

To the extent we have a vision of alternatives, making up a much larger portion.

of a portfolio that will necessarily include the expanded definition of all.

On a portfolio that will that will necessarily include the expanded definition of alternatives and consumers be the high net worth or mass affluent or otherwise, we will need to feel that they are making secure choices and not buying just volatility.

consumers, be they high net worth or mass affluent or otherwise, will need to feel that they are making secure choices and not buying.

Scott Kleinman: Yeah, no, I would just add what Marc was alluding to, right? As this market develops, of course, it's going to start with the traditional definition of retail products that are truly institutional quality products but offered to retail in a more attractive fashion.

Yeah, no, I would just add what what what Mark was alluding to right, you know.

Yes, no I would just add what mark was alluding to.

As this market develops.

As this market develops, of course, it's going to start with the traditional definition of retail products that are truly institutional quality products, but offered to retail in a more attractive fashion.

<unk> is going to start with the traditional definition of of retail products that are truly institutional quality products, but offered to retail and are more in a more attractive fashion, but we have something that others don't have which is the combination of <unk>.

Marc Rowan: But we have something that others don't have, which is the combination of Apollo and Athene bringing together balance sheet and alignment, product development capabilities that are extremely suited to the retail environment. And those are the type of products that you're going to be seeing in the short to medium term, as well as some of the more traditional retail products. So I hate to repeat Marc, but the answer is yes. It's an all of the above answer.

But we have something that others don't have, which is the combination of Apollo and Athene bringing together balance sheet and alignment, product development capabilities that are extremely suited to the retail environment. And those are the type of products that you're going to be seeing in the short to medium term, as well as some of the more traditional retail products. So I hate to repeat Marc, but the answer is yes. It's an all of the above answer.

But we have something that others don't have, which is the combination of Apollo and Athene bring together balance sheet and alignment, product development capabilities that are extremely suited to the retail environment. And those are the type of products that you're going to be seeing in the short to medium term, as well as some of the more traditional retail products.

Pollo in Athene, bringing together.

Balance sheet and alignment product development capabilities that are extremely suited to the retail environment and those are the type of products that youre going to be seeing in the short to medium term as well as some of some of the more traditional retail products. So.

You know, I hate to repeat Mark, but the answer is yes, it's an all of the above answer.

I hate to repeat Mark, but the answer is yes, it's in all of the above answer.

Martin Kelly: Thank you. Our next question comes from the line of Gerald O'Hara from Jefferies. Your line is now open.

Thank you. Our next question comes from the line of Gerald O'hara from Jefferies. Your line is now open.

Thank you. Our next question comes from the line of Gerald O'Hara from Jeffries. Your line is now open.

Patrick Davitt: Great. Thanks. I think Martin actually touched on it a little bit within the SRE construct, but perhaps you can help us unpack a little of the kind of thematic drivers of the almost 8% private equity carrying value return in the quarter. Obviously, quite strong. And just would like to hear a little bit about how that came to be. Thank you.

Gerald O'Hara: Great. Thanks. I think Martin actually touched on it a little bit within the SRE construct, but perhaps you can help us unpack a little of the kind of thematic drivers of the almost 8% private equity carrying value return in the quarter. Obviously, quite strong. And just would like to hear a little bit about how that came to be. Thank you.

Great, thanks. I think Martin actually touched on it a little bit within the SRE construct, but perhaps you can help us unpack a little of the kind of thematic drivers of the almost 8% private equity carrying value return in the quarter, obviously quite strong, and just would like to hear a little bit about how that, you know, how that came to be. Thank you.

Great. Thanks.

I think Martin actually touched on a little bit within the SRU.

Constructive but perhaps.

You could help us unpack a little bit kind of thematic drivers of the <unk>.

Almost 8% private equity carrying value returned in the quarter, obviously quite strong.

Just would like to hear a little bit about how that.

How that came to be thank you.

Marc Rowan: Yeah. Yeah. Look, this goes back to Purchase Price Matters, right? Our PE business has built its portfolio along the lines of acquiring good cash-flowing businesses where we can drive real tangible value to those businesses through earnings growth, through cost savings, through cash flow. And so not really dependent on rising valuations to get out at meaningfully higher values than where you entered. So in Q1, we saw exactly that, notwithstanding inflation that is very real in the economy, wage inflation, materials inflation, and logistics inflation. The underlying strengths of the underlying businesses allowed for price increases to continue to offset that inflation and continue to grow output. So, I mean, that's the fundamental strategy that Apollo has been pursuing for the last decade.

Martin Kelly: Yeah. Yeah. Look, this goes back to Purchase Price Matters, right? Our PE business has built its portfolio along the lines of acquiring good cash-flowing businesses where we can drive real tangible value to those businesses through earnings growth, through cost savings, through cash flow. And so not really dependent on rising valuations to get out at meaningfully higher values than where you entered. So in Q1, we saw exactly that, notwithstanding inflation that is very real in the economy, wage inflation, materials inflation, and logistics inflation. The underlying strengths of the underlying businesses allowed for price increases to continue to offset that inflation and continue to grow output. So, I mean, that's the fundamental strategy that Apollo has been pursuing for the last decade.

Yeah, yeah, look, this goes back to Purchase Price Matters, right? You know, our PE business has built.

Yes, Yes look this goes back to purchase price matters right.

RPE business has built.

uh... it's portfolio along the lines of

Its portfolio along the lines of acquiring good cash flowing businesses, where we can drive real tangible value to those businesses through earnings growth through cost savings through cash flow.

acquiring good cash flowing businesses where we can drive real tangible value to those businesses through earnings growth, through cost savings, through cash flow.

Um, and so, uh, you know, and not really dependent on, um.

And so.

And not really dependent on.

you know, uh, rising valuations to, you know, get out at meaningfully higher values than where you entered.

Yeah.

Rising valuations to get out at meaningfully higher values than where you entered.

So, in Q1, we saw exactly that, notwithstanding inflation that is very real, you know, in the economy, wage inflation.

So in Q1, we saw exactly that notwithstanding.

Inflation that is very real.

Economy wage inflation and materials inflation logistics inflation.

The underlying strengths of.

The underlying business is allowed for price increases to continue to offset that inflation and continue to grow continue to grow output. So I mean, that's the fundamental strategy that Apollo has been pursuing for the last decade. It hasnt been sexy over the last decade, but certainly as we enter this.

That's the fundamental strategy that Apollo's been, you know, pursuing for the last decade. It hasn't been sexy over the last decade, but certainly as we enter this new economic regime change where you can't just rely on, you know, declining or zero percent rates to allow you to, you know, exit at ever-increasing multiples, this is, you know, exactly the type of performance I would expect to be seeing in this type of environment.

Marc Rowan: It hasn't been sexy over the last decade, but certainly as we enter this new economic regime change where you can't just rely on declining or 0% rates to allow you to exit at ever-increasing multiples, this is exactly the type of performance I would expect to be seeing in this type of environment.

It hasn't been sexy over the last decade, but certainly as we enter this new economic regime change where you can't just rely on declining or 0% rates to allow you to exit at ever-increasing multiples, this is exactly the type of performance I would expect to be seeing in this type of environment.

New economic regime change, where you can't just rely on declining or zero percent rates to allow you to exited ever increasing multiples. This is exactly the type of performance I would expect to be seeing in this type of environment.

you know, declining or 0% rates to allow you to, you know, exit at ever-increasing multiples, this is, you know, exactly the type of performance I would expect to be seeing in this type of environment.

Martin Kelly: Thank you. Our next question comes from the line of Chris Kotowski from Oppenheimer. Your line is now open.

Operator: Thank you. Our next question comes from the line of Chris Kotowski from Oppenheimer. Your line is now open.

Thank you. Our next question comes from the line of Chris Carter Wacky from Oppenheimer. Your line is now open.

Thank you. Our next question comes from the line of Chris Kotowalski from Oppenheimer. Your line is now open. Oh, good morning and thank you. I guess I wanted to go back to the retirement services and a multi-part question. I mean, first is what is the rationale for reporting on a normalized spread, you know, alternative income basis as opposed to

Robert Lee: Oh, good morning, and thank you. I guess I wanted to go back to the retirement services and a multi-part question. I mean, first is what is the rationale for reporting on a normalized spread alternative income basis as opposed to just letting the chips fall where they may? And then secondly, how should we think about the—to go all back to Robert's question—the return of the alternatives portfolio over time in that, I mean, you were up this quarter. A number of the other alternatives showed positive returns, so fine. So this quarter, it was not correlated to the broad markets, though when we look back at the first two quarters of 2020 when the public markets were negative, we also saw Athene's alternative portfolio negatively marked.

Chris Kotowski: Oh, good morning, and thank you. I guess I wanted to go back to the retirement services and a multi-part question. I mean, first is what is the rationale for reporting on a normalized spread alternative income basis as opposed to just letting the chips fall where they may? And then secondly, how should we think about the—to go all back to Robert's question—the return of the alternatives portfolio over time in that, I mean, you were up this quarter. A number of the other alternatives showed positive returns, so fine. So this quarter, it was not correlated to the broad markets, though when we look back at the first two quarters of 2020 when the public markets were negative, we also saw Athene's alternative portfolio negatively marked.

Good morning, and thank you.

I guess I wanted to go back to the retirement services and Multipart question. I mean first is what is the rationale for reporting.

On a normalized spread.

Alternative income basis as opposed to <unk>.

just letting the chips fall where they may uh... and then secondly uh...

Just letting the chips fall where they may.

And then the <unk>.

Secondly.

Yeah.

You know, how should we think about, to go back to Robert's question, the return of the...

How should we think about the.

To go back to Robert's question.

The return of the.

alternatives portfolio over time, in that, you know, I mean, you were up this quarter, you know, a number of the other alternatives showed positive returns, so fine. So, this quarter, it was not correlated to the broad markets, though, when we look, you know, back at the first two quarters of 2020, when the public markets were negative.

Alternatives portfolio over time and that you were up this quarter a number of the other alternatives showed positive returns. So fine. So this quarter. It was not correlated to the broad markets, though when we look back at the first two quarters of 2020, when the public markets were negative we also saw.

We also saw, you know, Athene's alternative portfolio, you know, negatively marked.

Athena alternatives portfolio.

Robert Lee: So we have this situation where sometimes the returns seem to be correlated or at least related to the public market comps, and other times they're not. So how should we think about the underlying returns of the alt portfolio over time?

So we have this situation where sometimes the returns seem to be correlated or at least related to the public market comps, and other times they're not. So how should we think about the underlying returns of the alt portfolio over time?

Negatively marked so we have this situation where sometimes the returns are seem to be correlated.

So we have this situation where sometimes the returns seem to be correlated or at least related to the public market comps and other times they're not.

Or at least related to the public market comps and other times, they're not so how should we think about the underlying returns of the portfolio over time.

So how should we think about the underlying returns of the alt portfolio over time?

Marc Rowan: So this is Marc. Why don't I start, and then I'll hand it to Martin? I hate to be somewhat financially oriented about this, but when Athene or any other retirement services company takes on a liability, it matches it with a portfolio of assets. 94%, 95% of those assets are fixed income, and 5%, 6% of those assets are alternatives in a nomenclature. We can debate whether they're actually alternative and which definition applies, but call them equity. As a quirk of accounting in the insurance industry, fixed income, certainly for regulatory purposes and otherwise, is generally held at market, excuse me, held at book, held at cost. The reason for that is simple. Movements in interest rates really affect assets and liabilities almost equally.

So this is Mark. Why don't I start, and then I'll hand it to Martin. And I hate to be somewhat financially oriented about this, but.

This is mark why don't I start and then I'll hand, it to Martin.

<unk>.

And I hate to be somewhat financially oriented about this but.

When Athene or any other retirement services company takes on a liability, it matches it with a portfolio of assets. Ninety-four, ninety-five percent of those assets are fixed income and five, six percent of those assets are alternatives in a nomenclature. We can debate whether they're actually alternative and which definition applies, but call them X.

When athene or any other retirement services company takes on a liability it matches it with a portfolio of assets, 94%, 95% of those assets are fixed income.

<unk>, 456% of those assets are alternatives in our nomenclature, we can debate whether they are actually alternative.

And which definition applies.

Call them equity.

as a quirk of accounting in the insurance industry.

As a quirk of accounting in the insurance industry fixed income for certainly for regulatory purposes, and otherwise is generally held at market excuse me. It held at book held at cost and.

fixed income, certainly for regulatory purposes and otherwise, is generally held at book, held at cost.

And the reason for that is simple. Movements in interest rates really affect assets and liabilities.

And the reason for that is simple movements in interest rates.

Really affect assets and liabilities almost equally.

Marc Rowan: And while in some instances you end up showing the mark, the economics and the substance of the underlying is you're putting an asset and a liability matched onto a book over an 8, 10, 12, 15-year period. What happens in any one quarter is actually not really all that relevant. We record it because that's what GAAP asks us to do. Equity is marked on a quarterly basis. So we show you both. We show you what actually happened, and then we show you what we think of on a normalized basis, which is how we underwrite. To make our spreads work, we assume that we will earn 11% over a very long period of time from this portfolio. And we provide you the metrics to judge whether or not we, in fact, are earning 11% over a long period of time against this portfolio.

And while in some instances you end up showing the mark, the economics and the substance of the underlying is you're putting an asset and a liability matched onto a book over an 8, 10, 12, 15-year period. What happens in any one quarter is actually not really all that relevant. We record it because that's what GAAP asks us to do. Equity is marked on a quarterly basis. So we show you both. We show you what actually happened, and then we show you what we think of on a normalized basis, which is how we underwrite. To make our spreads work, we assume that we will earn 11% over a very long period of time from this portfolio. And we provide you the metrics to judge whether or not we, in fact, are earning 11% over a long period of time against this portfolio.

And while in some instances, you end up showing the mark.

And while in some instances.

End up showing the mark.

economics and the substance of the underlying is you're putting an asset and a liability matched on to a book over an 8, 10, 12, 15 year period.

The economics and the substance of the underlying is you're putting an asset and a liability matched onto a book over an 810 12 15 year period.

What happens in any one quarter is actually not really all that relevant. We record it.

What happens in any one quarter is actually not really all that relevant.

We recorded because that's what GAAP assets to do equity is marked on a quarterly basis. So we show you. Both we show you what actually happened and then we show you what we think of on a normalized basis, which is how we underwrite.

Equity is marked on a quarterly basis. So we show you both. We show you what actually happens.

And then we show you what we think of on a normalized basis, which is how we underwrite.

To make our spreads work, we assume that we will earn 11 percent over a very long period of time.

To make our spreads work, we assume that we will earn 11% over a very long period of time.

from this portfolio, and we provide you the metrics to judge whether or not we in fact are earning 11% over a long period of time.

From this portfolio and we provide you the metrics to judge whether or not we in fact are earning 11% over a long period of time against this portfolio, but truly what happens on a quarterly basis is just not that relevant.

Marc Rowan: But truly, what happens on a quarterly basis is just not that relevant.

But truly, what happens on a quarterly basis is just not that relevant.

[Analyst] (Morgan Stanley): I would only add that this is common practice in the retirement services business, and we're being pretty explicit in showing the math to get to a normalized metric. But as Marc said, we're showing both. And I think the chart on 16 is actually pretty instructive in the sense of it's not a volatile portfolio. Look at the Sharpe ratio and look at the deviation relative to the comps that we're showing. It really proves out that it's a very durable portfolio over time, thus supporting a durable spread-based earnings stream.

Scott Kleinman: I would only add that this is common practice in the retirement services business, and we're being pretty explicit in showing the math to get to a normalized metric. But as Marc said, we're showing both. And I think the chart on 16 is actually pretty instructive in the sense of it's not a volatile portfolio. Look at the Sharpe ratio and look at the deviation relative to the comps that we're showing. It really proves out that it's a very durable portfolio over time, thus supporting a durable spread-based earnings stream.

I would only add that this is this is common practice in the retirement services.

I would only add that this is common practice in the retirement services business, and we're being pretty explicit.

Business.

Bank pretty explicit and showing the math to get to a normalized metric but.

showing the math to get to a normalized metric. But as Mark said, we're showing both. And I think the chart on 16 is actually pretty instructive. And in the sense of, it's not a volatile portfolio. Look at the Sharpe ratio and look at the deviation relative.

<unk> said, we're showing we're showing both.

And I think I think the chart on on <unk> is actually pretty instructive in in the sense of it is not a volatile portfolio look at the shop ratio and look at the deviation relative to the comps that we're showing it really proves out that it's a very durable portfolio overtime.

comps that we've shown. It really proves out that it's a very durable portfolio over time, thus supporting a durable spread based earnings.

Thus.

<unk>, a durable spread based earnings.

Yes.

Martin Kelly: Thank you. Our next question comes from the line of Brian McKenna from JMP Securities. Your line is now open.

Operator: Thank you. Our next question comes from the line of Brian McKenna from JMP Securities. Your line is now open.

Thank you. Our next question comes from the line of Brian Mckenna from JMP Securities. Your line is now open.

Thank you. Our next question comes from the line of Brian McKenna from JMP Securities. Your line is now open.

Glenn Schorr: Thanks. Most questions have been asked, but with respect to private equity Fund IX, there's clearly been a lot of value created, and returns are impressive. But the fund is still only about four years old, so how should we think about the trajectory of realizations for this fund throughout the remainder of the year and into 2023? And then do you have any expectation around the mix of monetizations as it relates to public markets versus strategic sales?

Brian McKenna: Thanks. Most questions have been asked, but with respect to private equity Fund IX, there's clearly been a lot of value created, and returns are impressive. But the fund is still only about four years old, so how should we think about the trajectory of realizations for this fund throughout the remainder of the year and into 2023? And then do you have any expectation around the mix of monetizations as it relates to public markets versus strategic sales?

Thanks. Most questions have been asked, but with respect to private equity fund nine, there's clearly been a lot of value created and returns are impressive, but the fund is still only about four years old. So how should we think about the trajectory of realizations for this fund throughout the remainder of the year and into 2023? And then do you have any expectation around the mix of monetizations as it relates to public markets versus strategic sales?

Thanks, most questions have been asked but with respect to private equity fund nine.

Clearly been a lot of value created and returns are impressive but the fund is still only about four years old. So how should we think about the trajectory of realizations for this for this fund throughout the remainder of the year and into 2023, and then do you have any expectation around the mix of monetization as it relates to public markets versus strategic strategic sales.

Marc Rowan: Yeah, sure. So as we look at, we are actively monetizing fund nine and funding, quite frankly. The Q2 monetizations, given some of the volatility, will probably look a lot like Q1. But based on some sale processes, some signed sale agreements, some signed dividend recap and distribution agreements, expect to see it stepping up in the back half of the year. And as these investments progress, 2023 and 2024 are the big harvest years for this fund. So that's what the timeline looks like. Obviously, as you get out into those years, market conditions will apply. Is it going to skew more towards public or private exits? But you can see by the returns, value is creating incredibly nicely in that portfolio. Again, not dependent on big multiple uplift, but on real earnings growth. So feel quite good about that over the next couple of years.

Scott Kleinman: Yeah, sure. So as we look at, we are actively monetizing fund nine and funding, quite frankly. The Q2 monetizations, given some of the volatility, will probably look a lot like Q1. But based on some sale processes, some signed sale agreements, some signed dividend recap and distribution agreements, expect to see it stepping up in the back half of the year. And as these investments progress, 2023 and 2024 are the big harvest years for this fund. So that's what the timeline looks like. Obviously, as you get out into those years, market conditions will apply. Is it going to skew more towards public or private exits? But you can see by the returns, value is creating incredibly nicely in that portfolio. Again, not dependent on big multiple uplift, but on real earnings growth. So feel quite good about that over the next couple of years.

Yes, yes sure.

So, as we look at, you know, we are actively monetizing Fund9 and Fund8, quite frankly.

So as we look at we are actively monetizing fund nine and funding and quite frankly the.

Q2 monetization given some of the volatility.

Q2 modernizations get given some of the volatility.

will probably look a lot like Q1, but based on some sale processes, some signed sale agreements, some signed dividend recap and distribution agreements.

We'll probably look a lot like Q1, but based on some <unk>.

Sale processes, some signs sale agreements signed.

Dividend recap and distribution agreements and expect to see it stepping up in the back half of the year.

Expect to see it stepping up in the back half of the year.

And as these investments for grass 23, and 24 are the big harvest years for this fund so that's what the timeline looks like obviously.

And, you know, as these investments progress, you know, 23 and 24 are the big harvest years.

you know, for this fund. So that's what the timeline looks like. Obviously, you know, as you get out into those years, market conditions will apply. Is it going to skew more towards public or private exits?

As you get out into those years market conditions will apply is it going to skew more towards public or private exits but.

You can see by the returns, you know, value is creating incredibly nicely in that portfolio. Again, not dependent on big multiple uplifts.

You can see by the returns value is creating incredibly nicely in that portfolio.

Again, not dependent on big multiple uplift, but on real earnings growth. So.

but on real earnings growth, so feel quite good about that over the next couple of years.

We feel quite good about that over the next couple of years.

Martin Kelly: Thank you. Our next question comes from the line of Adam Beatty from UBS. Your line is now open.

Operator: Thank you. Our next question comes from the line of Adam Beatty from UBS. Your line is now open.

Thank you. Our next question comes from the line of Adam Beatty from UBS. Your line is now open.

Scott Kleinman: Hi, good morning. Thank you. I want to follow up on the portfolio companies. Appreciate Scott's comments earlier about inflation and the resiliency of the cash flow there. So I just wanted to ask about the other piece of that, the rising rates, and how the portfolio companies are positioned. Some other firms have mentioned having rate hedges and other things in place at the portfolio company level. So any details you could provide there would be great. Thanks a lot.

Adam Beatty: Hi, good morning. Thank you. I want to follow up on the portfolio companies. Appreciate Scott's comments earlier about inflation and the resiliency of the cash flow there. So I just wanted to ask about the other piece of that, the rising rates, and how the portfolio companies are positioned. Some other firms have mentioned having rate hedges and other things in place at the portfolio company level. So any details you could provide there would be great. Thanks a lot.

Hi, good morning, Thank you.

Good morning. Thank you. One follow-up on the portfolio companies. I appreciate Scott's comments earlier about inflation and the resiliency of the cash flow there. So I just wanted to ask about the other piece of that, the rising rates and how the portfolio companies are positioned. Some other firms have mentioned having rate hedges and other things in place at the portfolio company level. So any details you could provide there would be great. Thanks a lot.

One follow up on the portfolio of companies I appreciate Scott's comments earlier about inflation and the resiliency of the cash flow. There. So I just wanted to ask about the other piece of that rising rates and how the portfolio of companies are positioned.

Some other firms have mentioned having rate hedges and other things in place at the portfolio company level.

So you could provide there would be great. Thanks, a lot.

Marc Rowan: Yeah. Yeah. Look, interest rates and interest costs are just less relevant to our portfolio than to many of our peers. Remember, we created Fund IX at an average EBITDA multiple of about 6.5x, right? That's the leverage level for many of our peers. The average leverage level is somewhere a little under 4x. So rising rates are interesting, but they're not super impactful to the return performance of the portfolio. On average, we're about 50/50 fixed and floating across the portfolio. We're starting to move a little more fixed. But again, like I said, in the five things that our deal teams think about, interest rates are number seven. It's just not particularly relevant to the total returns.

Scott Kleinman: Yeah. Yeah. Look, interest rates and interest costs are just less relevant to our portfolio than to many of our peers. Remember, we created Fund IX at an average EBITDA multiple of about 6.5x, right? That's the leverage level for many of our peers. The average leverage level is somewhere a little under 4x. So rising rates are interesting, but they're not super impactful to the return performance of the portfolio. On average, we're about 50/50 fixed and floating across the portfolio. We're starting to move a little more fixed. But again, like I said, in the five things that our deal teams think about, interest rates are number seven. It's just not particularly relevant to the total returns.

Yeah, Yeah look.

Interest rate, interest costs are just less relevant to our portfolio than to many of our peers. Remember, we created Fund 9 at an average, even a multiple of about six and a half times. That's the leverage level for many of our peers. The average leverage level is somewhere a little under four times.

Interest rate interest costs are just less relevant to our portfolio than many of our peers remember we created fund nine at an average EBITDA multiple of about six five times right. That's the leverage level for many of our peers.

The average.

Our leverage level is somewhere a little under four times so.

Rising rates are interesting, but they're not super impactful to the return performance of the portfolio. On average, we're about 50-50 fixed and floating across the portfolio. We're starting to move a little more fixed, but again, like I said, in the five-year timeframe,

Rising rates are interesting, but they're not super impactful to the return performance of the portfolio.

On average, we're about 50 50 fixed and floating across the portfolio.

Starting to move a little more a little more fixed but again like I said in the five.

You know, the five things, you know, that, you know, our deal teams think about, interest rates are number seven. It's just not particularly relevant, you know, to the total return.

The five things you know that.

Our deal teams think about interest rates our number seven.

It is not particularly relevant.

So the total returns.

Martin Kelly: Thank you. Our next question comes from the line of Michael Cyprys from Morgan Stanley. Your line is now open.

Operator: Thank you. Our next question comes from the line of Michael Cyprys from Morgan Stanley. Your line is now open.

Thank you. Our next question comes from the line of Michael <unk> from Morgan Stanley . Your line is now open.

Thank you. Our next question comes from the line of Michael Cyprus from Morgan Stanley . Your line is now open.

Scott Kleinman: Hi, thank you very much for taking the follow-up here. I just wanted to see if you could talk a little bit about your underwriting criteria in the current environment. You've obviously spoken a lot about how purchase price is always massive for you guys, but I'm just curious how you're flexing your underwriting criteria just in the current environment we're in. Thank you.

Michael Cyprys: Hi, thank you very much for taking the follow-up here. I just wanted to see if you could talk a little bit about your underwriting criteria in the current environment. You've obviously spoken a lot about how purchase price is always massive for you guys, but I'm just curious how you're flexing your underwriting criteria just in the current environment we're in. Thank you.

Hi, thank you very much for taking the follow-up here. I just wanted to talk a little bit about the underwriting criteria in the current environment. You've obviously spoken a lot about how purchase price is always massive for you guys, but I'm just curious how you're flexing the underwriting criteria just in the current environment we're in. Thank you.

Alright. Thank you very much for taking the follow up here I just wondered if you could talk a little bit about your underwriting criteria in the current environment, you've obviously spoken a lot about how pushes prices always message for you guys, but I'm just curious how how you're flexing your underwriting criteria.

The current environment room. Thank you.

Marc Rowan: Yeah. So look, that's been the topic of a lot of conversation over the last few months, quite frankly, not just in our equity portfolio, but across the entire platform. Back in March 2020, we did something. We created what we call the common lens, where we created a series of scenarios that we asked all our businesses, from our equity businesses, our hybrid businesses, our yield businesses, our retirement service platforms, to really model their businesses across these various scenarios so that we can start taking a collective look at the risk and opportunities in our business. We've, again, recently done so with some of the recent economic changes that we've all been talking about. And that scenario does show, obviously, rising rates for sure, but then how does that end? What type of either economic slowdowns or actual recessions we're modeling in?

Scott Kleinman: Yeah. So look, that's been the topic of a lot of conversation over the last few months, quite frankly, not just in our equity portfolio, but across the entire platform. Back in March 2020, we did something. We created what we call the common lens, where we created a series of scenarios that we asked all our businesses, from our equity businesses, our hybrid businesses, our yield businesses, our retirement service platforms, to really model their businesses across these various scenarios so that we can start taking a collective look at the risk and opportunities in our business. We've, again, recently done so with some of the recent economic changes that we've all been talking about. And that scenario does show, obviously, rising rates for sure, but then how does that end? What type of either economic slowdowns or actual recessions we're modeling in?

Yes, so look that's been the topic of a lot of conversation over the last few months.

Yes, so look that that's been the topic of a lot of conversation over the last few months But frankly not just in our in our equity portfolio, but across the across the entire platform

Quite frankly, not just in our in our equity portfolio, but across the across.

Across the entire platform.

You know, back in March of 2020, we did something, we created what we called a common lens, where we created a series of scenarios that we asked all our businesses, from our equity businesses, our hybrid businesses, our yield businesses, our retirement service platforms, to really model their businesses across these various scenarios.

Back in March of 2020.

We did something we created what we call the common lens, where we created.

A series of scenarios that we asked all our business is from our equity businesses, our hybrid businesses, our yield businesses, our retirement service platforms to really model their businesses across these various scenarios. So that we can start taking a.

you know, we can start taking a collective look.

Collective look.

at, you know, the risk and opportunities, you know, in our business.

At the risk and opportunities in our business we.

We have, again, recently done so with some of the recent economic changes that we've all been talking about. And that scenario does show, obviously, rising rates for sure, but then how does that end? What type of...

We have again recently done so.

With.

With some of the recent economic changes that we've all been talking about.

And that scenario does.

So obviously rising rates for sure, but then how does that and what type of.

either economic slowdowns or actual recessions we're modeling in. So, you know, the firm is looking at those scenarios and modeling on a, you know, very conservative footing when it comes to the course of 22 and into 23.

Either economic slowdowns or actual recessions were modeling in so.

Marc Rowan: The firm is looking at those scenarios and modeling on a very conservative footing when it comes to the course of 2022 and into 2023.

The firm is looking at those scenarios and modeling on a very conservative footing when it comes to the course of 2022 and into 2023.

The firm is looking at those scenarios and modeling on a very conservative footing. When it comes to when it comes to the course of 'twenty two and into 'twenty three.

Martin Kelly: Thank you. Our next question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Operator: Thank you. Our next question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Thank you. Our next question comes from the line of Glenn Shore from Evercore ISI. Your line is now open. Hi, thank you.

Thank you. Our next question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Glenn Schorr: Hi, thank you. So look, I think you've had next to no credit losses, but it's been a great backdrop. But some people are nervous that higher rates and inflation bring recession or other credit issues. You can't do the whole balance sheet recap here, but you do a stress test for us every six months or so. Can you talk at a high level on the positioning of where you on the credit you own across the platform, where you're in the capital stack, how subordination helps, how floating rate helps, and why just the overall message on why people maybe should be running to Apollo in this backdrop, not running away from Apollo in this backdrop?

Hi, Thank you.

So.

I think you've had next to no credit losses, but it's been a great backdrop. But some people are nervous that higher rates and inflation bring recession or other credit issues.

Look I think <unk> had next to no credit losses, but it's been a great backdrop, but some.

Some people are nervous that higher rates of inflation bring recession or other credit issues.

We can't do the whole balance sheet recap here, but you do a stress test for us every six months or so. Can you talk at a high level on the position of where you, on the credit you own across the platform, where you're in the cap effect, how subordination helps, how floating rate helps and why, just the overall message on why people maybe should be running to Apollo in this backdrop, not running away from Apollo.

You can't do the whole balance sheet recap here, but you do have a stress test for US is every six months or so can you talk at a high level on the positioning of where are you on.

On the credit you own across the platform, where you are in the capital stack, how subordination helps how floating rate helps and why just the overall message on why people maybe should be running to Apollo this backdrop not running away from Apollo in the spectrum.

Marc Rowan: So Glenn, it's Mark. I'll start at a high level. First, I will tell you we intend to announce a day in the near future where we will do a complete balance sheet tutorial for people across Athene and the broader credit business so that those newer to the story can understand exactly how we proceed. We start with the notion that we generally want to be top of the capital structure and Investment Grade. When we started Athene back in 2008, 2009, it was relatively easy to source that in the marketplace. The markets were chaotic. Recall things like TALF and TARP and other nice initials. Very quickly, as the markets healed themselves, it became clear to us that we needed to be an originator of credit. We have referred to our business as fixed income replacement. We are generally a replacement for investment-grade fixed income.

So, Glenn, it's Mark. I'll start at a high level. First, I will tell you, we intend to announce a day in the near future where we will do a complete balance sheet tutorial for people across Athena and the broader credit

So Glenn it's Mark I'll start at a high level first I will tell you we intend to announce today in the near future, where we will do a complete balance sheet tutorial.

For people across Athena in the broader credit business.

so that those newer to the story can understand exactly how we proceed.

So that those new to the newer to the story can understand exactly how we proceed.

We start with the notion that.

We generally wanna be top of the capital structure and invest.

We generally want to be top of the capital structure and investment grade.

When we started Athene back in 2008-2009, it was relatively easy to source that in the marketplace. The markets were chaotic, recall things like TALF and TARP and other.

When we started athene back in 2008 2009, it was relatively easy to source that in the marketplace and the markets were chaotic recall things like <unk> and tarpon and other nice initials very quickly as the markets heal themselves. It became clear to us that we needed to be an originator of credit.

Very quickly as the markets healed themselves, it became clear to us that we needed to be an originator.

We have we have referred to our business as fixed income replacement we are generally.

We have referred to our business as fixed income replacement.

We are generally a replacement for investment grade fixed income. We are generally top of the cap.

A replacement for investment grade fixed income.

Marc Rowan: We are generally top of the capital structure. We are generally senior secured. We do not think a retirement services business or a fixed income replacement portfolio of an institution is a place to take credit risk or equity risk. The risk we seek to take is liquidity risk or structure risk. We can afford to be less liquid because our liabilities are less liquid and the liabilities of sovereign wealth funds, pension funds, and otherwise. And so I step back and I think about the marketplace today, and I look at the various alternatives and think about where I would want to be if I were negatively biased. I generally want to be in floating rate. Boy, we have a lot of that. I generally want to be top of the capital structure with good spread. We have a lot of that.

We are generally top of the capital structure. We are generally senior secured. We do not think a retirement services business or a fixed income replacement portfolio of an institution is a place to take credit risk or equity risk. The risk we seek to take is liquidity risk or structure risk. We can afford to be less liquid because our liabilities are less liquid and the liabilities of sovereign wealth funds, pension funds, and otherwise. And so I step back and I think about the marketplace today, and I look at the various alternatives and think about where I would want to be if I were negatively biased. I generally want to be in floating rate. Boy, we have a lot of that. I generally want to be top of the capital structure with good spread. We have a lot of that.

We are generally top of the capital structure, we are generally senior secured.

We do not think a retirement services business or a fixed income replacement portfolio of an institution is a place to take credit risk or equity risk. The risk we seek to take is liquidity.

We do not think a retirement services business or a fixed income replacement portfolio of an institution as a place to take credit risk for equity risk the risk we seek to take is liquidity risk our structure risk.

We can afford to be less liquid because our liabilities are less liquid, and the liabilities of sovereign wealth funds, pension funds, and otherwise.

We can afford to be less liquid because our liabilities are less liquid and liabilities of sovereign wealth funds pension funds and otherwise.

So I step back and I think about the marketplace today.

and I look at the various alternatives and think about where I would want to be if I were negatively biased.

And I look at the various alternatives and think about where I would want to be if I were negatively biased generally want to be in floating rate.

Boy, we have a lot of that. I generally want to be top of the capital structure with good spread. We have a lot of that. I would probably not want to be subordinated and fixed.

Although we have a lot of that.

Generally we want to be top of the capital structure with good spread we have a lot of that.

Marc Rowan: I would probably not want to be subordinated and fixed rate. That's not where we are. The business that we have built is a fixed income replacement business. That is not to say there are not other good businesses, but it is a very different business than our peer set, for better or worse. In some markets, peers may perform better. In a market like this, purchase price matters. Being the top of the capital structure matters. Being senior secured matters. And I think we will fare very well. The stress test, which, as you know, our industry does not publish, we run the Fed CCAR. We publish it. We run our risk appetite. We publish it. We run Lehman. We publish it. We will do our best to educate the investor universe that the risk we are taking is liquidity risk, structure risk, and not credit risk.

I would probably not want to be subordinated and fixed rate. That's not where we are. The business that we have built is a fixed income replacement business. That is not to say there are not other good businesses, but it is a very different business than our peer set, for better or worse. In some markets, peers may perform better. In a market like this, purchase price matters. Being the top of the capital structure matters. Being senior secured matters. And I think we will fare very well. The stress test, which, as you know, our industry does not publish, we run the Fed CCAR. We publish it. We run our risk appetite. We publish it. We run Lehman. We publish it. We will do our best to educate the investor universe that the risk we are taking is liquidity risk, structure risk, and not credit risk.

I would probably not want to be subordinated and fixed rate.

That's not where we are.

The business that we have built is a fixed income replacement business that is not to say there are not other good businesses, but it is a very different business.

The business that we have built is a fixed income replacement business. That is not to say there are not other good businesses, but it is a very different business.

Then our peer set.

For better or worse.

In some markets, peers may perform better. In a market like this...

In some markets peers may perform better in a market like this.

Purchase price matters, being the top of the capital structure matters, being senior secured

Price matters being the top of the capital structure matters being senior secured matters.

And I think we will fare very well. The stress test, which, as you know, our industry does not publish. We run the Fed's CCAR. We publish it. We run our risk appetite. We publish it. We run Lehman. We publish it.

And I think we will fare very well.

Stress tests, which as you know our industry does not publish we run the fed's CCAR, we publish it we run our risk appetite, we publish it we run Lehman we publish it.

We will do our best to educate the investor universe that the risk we are taking is...

We will do our best to educate the Investor Universe.

The risk we are taking as liquidity risk and.

And structure risk and not credit risk.

Martin Kelly: Thank you. We have reached our allotted time for Q&A. I will now turn the floor to Noah Gunn for any additional or closing remarks.

Operator: Thank you. We have reached our allotted time for Q&A. I will now turn the floor to Noah Gunn for any additional or closing remarks.

Thank you we have reached our allotted time for Q&A I will now turn the floor to nelligan for any additional or closing remarks.

Thank you. We have reached our allotted time for Q&A. I will now turn the floor to Noah Gunn for any additional or closing remarks.

Noah Gunn: Thanks, everyone, for joining us this morning and for your continued interest in Apollo. And perhaps the operator can exit you from the call from the same way it began with some more entertaining hold music and memorializing this milestone quarter for us with some tracks from The Beatles and others. Thanks again for joining this morning.

Thanks, everyone, for joining us this morning and for your continued interest in Apollo. And perhaps the operator can exit you from the call from the same way it began with some more entertaining hold music and memorializing this milestone quarter for us, some tracks from the Beatles and others. Thanks again for joining us. Thank you.

Thanks, everyone for joining us this morning and for your continued interest in Apollo and perhaps the operator can exit you from the call from the same way it began with some more entertaining hold music in memorialized this milestone quarter for us.

Subtract from the Beatles and others.

Again for joining us this morning.

Martin Kelly: This concludes today's conference call. Thank you for participating. You may now disconnect.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

This concludes today's conference call. Thank you for participating you may now disconnect.

This concludes today's conference call. Thanks for participating. You may now disconnect.

Okay.

Love is a burning thing, and it makes a fiery ring, bound by wild desire. I fell into a burning ring of fire, I went down, down, down, and the flames went higher, and it burns, burns, burns.

Okay.

Patrick Davitt: Love is a burning thing, and it makes a fiery ring. Bound by wild desire, I fell into a ring of fire. I fell into a burning ring of fire. I went down, down, down, and the flames went higher. And it burns, burns. Good morning and welcome to Apollo Global Management's Q1 2022 Earnings Conference Call. During today's discussion, all callers will be placed in listen-only mode, and following management's prepared remarks, the conference call will be open for questions. Please limit yourself to one question and then rejoin the queue. This conference call is being recorded. This call may include forward-looking statements and projections, which do not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements.

Love is a burning thing, and it makes a fiery ring. Bound by wild desire, I fell into a ring of fire. I fell into a burning ring of fire. I went down, down, down, and the flames went higher. And it burns, burns.

Okay.

Love It.

Earnings.

Okay.

And it makes sense.

Okay.

Thanks.

Well.

But while desire.

Thanks.

I fell into a ring.

Thank you.

Hi.

Sure Vernon.

Buyer.

Yeah.

And the blades as well as higher earnings burn.

Good morning and welcome to Apollo Global Management's Q1 2022 Earnings Conference Call. During today's discussion, all callers will be placed in listen-only mode, and following management's prepared remarks, the conference call will be open for questions. Please limit yourself to one question and then rejoin the queue. This conference call is being recorded. This call may include forward-looking statements and projections, which do not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements.

[music].

Good morning, and welcome to Apollo Global management's first quarter 2022 earnings conference call.

Good morning and welcome to Apollo Global Management's first quarter 2022 earnings conference call.

During today's discussion, all callers will be placed in listen-only mode, and following management's prepared remarks, the conference call will be open for questions.

During todays discussion all callers will be placed in listen only mode and following management's prepared remarks. The conference call will be opened for a question.

Please limit yourself to one question and then rejoin the queue. This conference call is being recorded.

Please limit yourself to one question and then rejoin the queue. This conference call is being recorded. This call may include forward looking statements and projections, which do not guarantee future events or performance. Please refer to apollo's. Most recent S E SEC filings for risk factors related to.

This call may include forward-looking statements and projections, which do not guarantee future events or performance.

Please refer to Apollo's most recent SEC filings for risk factors related to these statements.

Patrick Davitt: Apollo will also be discussing certain non-GAAP measures on this call, which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's website. Also note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Apollo fund. I would now like to turn the call over to Noah Gunn, Global Head of Investor Relations. Thanks, Operator, and welcome again to our call this morning. Earlier today, we published our new earnings release and financial supplement on the investor relations portion of our website. We will also post a financial supplement on the Athene Investor Relations website in the coming days, which provides historically disclosed information on Athene's balance sheet and investment portfolio.

Apollo will also be discussing certain non-GAAP measures on this call, which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's website. Also note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Apollo fund. I would now like to turn the call over to Noah Gunn, Global Head of Investor Relations.

These statements.

Apollo will also be discussing certain non-GAAP measures on this call, which management believes are relevant in assessing the financial performance of the business.

These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's website.

Also note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Apollo fund. I would now like to turn the call over to Noah Gunn, Global Head of Investor Relations.

Also note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Apollo funds I would now like to turn the call over to Noah Gunn Global head of Investor Relations.

Noah Gunn: Thanks, Operator, and welcome again to our call this morning. Earlier today, we published our new earnings release and financial supplement on the investor relations portion of our website. We will also post a financial supplement on the Athene Investor Relations website in the coming days, which provides historically disclosed information on Athene's balance sheet and investment portfolio.

Thanks, Operator, and welcome again to our call this morning. Earlier today, we published our new earnings release and financial supplement on the Investor Relations portion of our website.

Thanks, Operator, and welcome again to our call. This morning earlier today, we published our new earnings release and financial supplement on the Investor Relations portion of our website. We will also post a financial supplement on the Athene Investor Relations website in the coming days, which provides historically disclosed information on <unk> balance sheet and invest in port.

We will also post a financial supplement on the Athene Investor Relations website in the coming days, which provides historically disclosed information on Athene's balance sheet and investment portfolio.

Patrick Davitt: Additionally, we plan on publishing a new quarterly investor presentation on our website in the near future. As you can see, our Q1 results reflect our post-merger financial construction, illustrating the strong combined earnings power of Apollo and Athene. For Q1, we reported fee-related earnings of $310 million or $0.52 per share and spread-related earnings of $670 million or $1.12 per share. These two earnings streams combined to total $980 million in Q1 or $1.63 per share, as the business demonstrated strength and resilience amid a period of macro volatility. We also reported normalized spread-related earnings of $488 million or $0.81 per share to provide a supplemental view of this important and valuable earnings stream.

Additionally, we plan on publishing a new quarterly investor presentation on our website in the near future. As you can see, our Q1 results reflect our post-merger financial construction, illustrating the strong combined earnings power of Apollo and Athene. For Q1, we reported fee-related earnings of $310 million or $0.52 per share and spread-related earnings of $670 million or $1.12 per share. These two earnings streams combined to total $980 million in Q1 or $1.63 per share, as the business demonstrated strength and resilience amid a period of macro volatility. We also reported normalized spread-related earnings of $488 million or $0.81 per share to provide a supplemental view of this important and valuable earnings stream.

Additionally, we plan on publishing a new quarterly investor presentation on our website in the near future.

Additionally, we plan on publishing a new quarterly investor presentation on our website.

As you can see, our first quarter results reflect our post-merger financial construction, illustrating the strong, combined earnings power of Apollo and its partners.

As you can see our first quarter results reflect our post merger financial construction illustrating the strong combined earnings power of Apollo and Athene.

For the first quarter, we reported fee related earnings of $310 million or <unk> 52 per share and spread related earnings of $670 million or $1 12 per share. These two earnings streams combined to total $980 million in the first quarter or $1 63 per share as the business demonstrated.

For the first quarter, we reported fee-related earnings of $310 million, or $0.52 per share, and spread-related earnings of $670 million, or $1.12.

These two earning streams combined to total $980 million in the first quarter, or $1 in

as the business demonstrated strength and resilience amid a period of macro volatility.

Strength and resilience amid a period of macro volatility.

We also reported normalized spread-related earnings of $488 million, or 81 cents per share, to provide a supplemental view of this important and valuable earnings

We also reported normalized spread related earnings of $488 million or <unk> 81 per share to provide a supplemental view of this important and valuable earning stream.

Patrick Davitt: As we move into a new era of financial reporting post-merger, we noted in a recent 8-K filing that we were going to rename our primary non-GAAP metric from distributable earnings to adjusted net income. This naming convention better aligns with our dividend policy as well as the broader financial services universe. This change had no impact on our historical financial results or construction of what has historically been DE. For Q1, we reported adjusted net income totaling $915 million or $1.52 per share. Joining me this morning to discuss our strong results in further detail are Marc Rowan, CEO, Scott Kleinman, co-president, and Martin Kelly, CFO.

As we move into a new era of financial reporting post-merger, we noted in a recent 8-K filing that we were going to rename our primary non-GAAP metric from distributable earnings to adjusted net income. This naming convention better aligns with our dividend policy as well as the broader financial services universe. This change had no impact on our historical financial results or construction of what has historically been DE. For Q1, we reported adjusted net income totaling $915 million or $1.52 per share. Joining me this morning to discuss our strong results in further detail are Marc Rowan, CEO, Scott Kleinman, Co-President, and Martin Kelly, CFO.

As we move into a new era of financial reporting post-merger, we noted in a recent 8K filing that we were going to rename our primary non-GAAP metric from Distributable Earnings to

As we move into a new era of financial reporting post merger. We noted in our recent 8-K filing that we were going to rename our primary non-GAAP metric from distributable earnings to adjusted net income just naming convention better aligns with our dividend policy as well as the broader financial services universe.

Disnaming Convention better aligns with our dividend policy as well as the broader financial services

This change had no impact on our historical financial results or construction of what has historically been.

This change had no impact on our historical financial results for construction of what has historically been DG.

For the first quarter, we reported adjusted net income totaling $915 million, or $1.52 per share.

For the first quarter, we reported adjusted net income totaling $915 million or $1 52 per share joining.

Joining me this morning to discuss our strong results in further detail are Mark Rowan, CEO , Scott Kleinman, Co-President, and Martin Kelly, CFO . Given that we published a new package for you this morning and our prepared remarks may run a bit longer, we will do our best to be as efficient with your time as possible and look forward to answering all your questions. With that, I'll now turn the call over to Mark.

Joining me this morning to discuss our strong results in further detail, our Marc Rowan CEO , Scott climate co President and Martin Kelly CFO , given that we published a new package for you. This morning, and our prepared remarks may run a bit longer we will do our best to be as efficient with your time as possible and look forward to answering all your questions with that.

Patrick Davitt: Given that we published a new package for you this morning and our prepared remarks may run a bit longer, we will do our best to be as efficient with your time as possible and look forward to answering all your questions. With that, I'll now turn the call over to Marc. Thank you, Noah, and good morning to all. Needless to say, we are pleased with the first quarter results. As you know, during the quarter, we completed the merger with Athene. In a period of great volatility, the merger proceeded seamlessly, as did the closing of the financial statements. As Noah mentioned, the first quarter results showcased the combined earnings power of the business.

Given that we published a new package for you this morning and our prepared remarks may run a bit longer, we will do our best to be as efficient with your time as possible and look forward to answering all your questions. With that, I'll now turn the call over to Marc.

Marc Rowan: Thank you, Noah, and good morning to all. Needless to say, we are pleased with the first quarter results. As you know, during the quarter, we completed the merger with Athene. In a period of great volatility, the merger proceeded seamlessly, as did the closing of the financial statements. As Noah mentioned, the first quarter results showcased the combined earnings power of the business.

I'll now turn the call over to Mark.

Thank you Darla and good morning to all.

Thank you, Noah, and good morning to all. Needless to say, we are pleased with the first quarter results.

Needless to say, we are pleased with the first quarter results.

As you know, during the quarter, we completed the merger with Athene. In a period of great volatility, the merger proceeded seamlessly, as did the closing of the financial year.

As you know during the quarter, we completed the merger with Athene.

In a period of great volatility the merger preceded seamlessly added as did the closing of the financial statements.

As Noah mentioned, the first quarter results showcase the combined earnings power of the business.

Patrick Davitt: The trends that we're seeing in the marketplace, specifically rates up and volatility, historically have been very good for our business, particularly as it relates to spread-related earnings, which is biased to the upside with rising rates, as I'm sure Martin will detail in his remarks. FRE, SRE, spread-related earnings, and robust inflows position us to meet or exceed our 2022 financial targets in the aggregate and each of the pieces. Martin, again, will take you through that in detail in his section. As I like to think about the strength of the alternatives business, the purpose of the alternatives business is to produce excess return per unit of risk. For us, purchase price matters as an investment philosophy permeates everything we do. Pricing and valuation are important for return generation, really for the first time in about 14 years.

The trends that we're seeing in the marketplace, specifically rates up and volatility, historically have been very good for our business, particularly as it relates to spread-related earnings, which is biased to the upside with rising rates, as I'm sure Martin will detail in his remarks. FRE, SRE, spread-related earnings, and robust inflows position us to meet or exceed our 2022 financial targets in the aggregate and each of the pieces. Martin, again, will take you through that in detail in his section. As I like to think about the strength of the alternatives business, the purpose of the alternatives business is to produce excess return per unit of risk. For us, purchase price matters as an investment philosophy permeates everything we do. Pricing and valuation are important for return generation, really for the first time in about 14 years.

The trends that we're seeing in the marketplace, specifically rates up in volatility.

The trends that we're seeing in the marketplace, specifically rates up and volatility.

historically have been very good for our business, particularly as it relates to spread-related earnings.

Historically have been very good for our business, particularly as it relates to spread related earnings which is biased to the upside with rising rates as I am sure Martin will detail in his remarks.

bias to the upside with rising rates, as I'm sure Martin will detail in his remarks.

FRE, SRE, spread-related earnings, and robust inflows position us to meet or exceed our 2022 financial targets in the aggregate and each of the pieces. Martin again will take you through.

FRE FRE.

Sorry spread related earnings and robust inflows position us to meet or exceed.

2022 financial targets in the aggregate.

And each of the pieces.

Martin again will take you through that in detail in his section.

So as I like to think about the strength of the alternatives business. The purpose of the alternatives business.

I like to think about the strength of the alternatives business, the purpose of the alternatives business is to produce excess return.

Is to produce excess return per unit of risk.

For us purchase price matters as an investment philosophy permeates everything we do pricing.

For us, Purchase Price Matters, as an investment philosophy, permeates everything we do. Pricing and valuation are important for return generation, really for the first time in about 14 years.

Pricing and valuation are important for return generation really for the first time in about 14 years.

Patrick Davitt: As you see in the results, our PE portfolio was up 8% versus -5% for the S&P 500 and -9% for the NASDAQ. The era of being able to achieve results on the back of declining rates and increasing liquidity, I believe, to be at an end, separating alpha from beta. Our approach on Purchase Price Matters is resonating with clients in this macro backdrop. Purchase Price Matters is not only a tool that we think about in the equity business. As I suggested, it permeates everything we do. In our hybrid business, by giving away a portion of the upside and protecting the downside, we express Purchase Price Matters. In our yield business, our yield business is primarily driven by senior secured, top-of-the-capital structure, investment grade, and floating rate. Purchase Price Matters even in the yield business.

As you see in the results, our PE portfolio was up 8% versus -5% for the S&P 500 and -9% for the NASDAQ. The era of being able to achieve results on the back of declining rates and increasing liquidity, I believe, to be at an end, separating alpha from beta. Our approach on Purchase Price Matters is resonating with clients in this macro backdrop. Purchase Price Matters is not only a tool that we think about in the equity business. As I suggested, it permeates everything we do. In our hybrid business, by giving away a portion of the upside and protecting the downside, we express Purchase Price Matters. In our yield business, our yield business is primarily driven by senior secured, top-of-the-capital structure, investment grade, and floating rate. Purchase Price Matters even in the yield business.

As you see in the results, our PE portfolio was up 8% versus minus 5 for the S&P 500 and minus 9 for the NAICS.

As you see in the results RPE portfolio was up 8% versus minus five for the S&P 500 minus nine for the NASDAQ.

The era of being able to achieve results on the back of declining rates and increasing liquidity I believe to be at an end.

The era of being able to achieve results on the back of declining rates and increasing liquidity I believe to be at an end separating alpha from data.

Our approach on purchase price matters is resonating with clients in this macro backdrop.

Our approach on Purchase Price Matters is resonating with clients in this macro vacuum.

Purchase Price Matters is not only a tool that we think about in the equity business. As I suggested, it permeates everything.

Purchase price matters is not only a tool that we think about in the equity business as I suggested it permeates everything we do.

Our hybrid business by giving away a portion of the upside and protecting the downside we.

By giving away a portion of the upside and protecting the downside, we...

We express purchase price matters.

In our yield business, our yield business is primarily driven by senior secured, top of the capital structure, investment grade, and floating rate.

In our yield business, our yield business is primarily driven by senior secured top of the capital structure investment grade and floating rate purchase price matters, even in the yield business.

Patrick Davitt: We begin 2022 with tangible progress against the three goals, three bets, essentially, that we've made to power the company over the next five years: origination, retail, and capital solution. In origination, volume for Q1 was some $22 billion and run rate at $100 billion. Recall that our five-year target is to push that on a run rate basis to $150 billion. We completed acquisitions in the quarter of PACE, Foundation, and Newfi. These are platforms, platforms you should think of as permanent origination. In our industry, we spend a lot of time talking about permanent capital. Permanent origination is just as important as permanent capital. We've positioned ourselves as a scaled solutions provider, executing deals with speed and certainty. Two that I'd like to mention for the quarter: Aldar, a $1.4 billion commitment. It's one of the largest foreign direct investments in Abu Dhabi's private sector, investment-grade primarily.

We begin 2022 with tangible progress against the three goals, three bets, essentially, that we've made to power the company over the next five years: origination, retail, and capital solution.

We begin 2022 with tangible progress against the three goals.

Three bets, essentially, that we've made to power the company over the next five.

<unk> essentially that we've made to power of the company over the next five years.

origination, retail, and capital solutions.

Origination.

Retail and capital solution.

In origination, volume for Q1 was some $22 billion and run rating at $100 billion. Recall that our five-year target is to push that on a run rate basis to $150 billion.

In origination volume for Q1, with some 22 billion in run rating at a 100 billion recall that our five year target is to push that on a run rate basis to 150 billion.

We completed acquisitions in the quarter of pace Foundation and New Fi. These are platforms platforms, you should think of as permanent origination.

Our industry, we spend a lot of time talking about permanent capital permanent origination is just as important as permanent capital.

We positioned ourselves as a scaled solutions provider, executing deals with speed in certain.

We positioned ourselves as a scaled solutions provider executing deals with speed and certainty.

Two that I'd like to mention for the quarter, Aldar, a $1.4 billion commitment, it's one of the largest foreign direct investments in Abu Dhabi's private sector, investment grade primarily. SoftBank.

Two that I'd like to mention for the quarter Aldar, a one $4 billion commitment. It's one of our largest foreign direct investments in Abu Dhabi as private sector investment grade primarily.

Patrick Davitt: SoftBank, some $5.1 billion, investment grade. These are the kinds of transactions in the originated marketplace that allow us to provide our balance sheet and our clients excess return per unit of risk, even against the backdrop of a volatile market. Let me turn to Capital Solutions next. Capital Solutions had a pretty good quarter, even against the backdrop of market volatility. We are well positioned to deliver on the 2022 growth targets, notwithstanding what's happened in the first quarter. The Q2 pipeline is incredibly strong and very encouraging. As you know, we announced the strategic partnership with Mubadala to capitalize on these origination activities, augmenting the volume of origination and syndication activity we can now execute. Again, a very good start for the year, and I expect we will meet or exceed the targets we have in Capital Solutions.

Softbank, some $5 1 billion.

Investment grade these are the kinds of transactions in the originated marketplace that allow us to provide our.

investment-grade. These are the kinds of transactions in the originated marketplace that allow us to provide our balance sheet

Our balance sheet.

and our clients excess return per unit of risk, even against the backdrop of a volatile market.

And our clients excess return per unit of risk even against the backdrop of a volatile market.

Let me turn to capital solutions next.

Capital solutions had a pretty good quarter, even against the backdrop of market volatility, we are well positioned to deliver on the 2022 growth targets.

Capital Solutions had a pretty good quarter, even against the backdrop of market volatility. We are well positioned to deliver on the 2022 growth targets, notwithstanding what's happened

Notwithstanding what's happened in the first quarter.

The Q2 pipeline is incredibly strong and very encouraging. As you know, we announced the strategic partnership with Mubadala to capitalize on these origination activities.

The Q2 pipeline is incredibly strong and very encouraging as you know we announced the strategic partnership with mobile up to capitalize on these origination activities.

Augmenting the volume of origination and syndication activity, we can now...

<unk> the volume of origination and syndication activity, we can now execute.

Again, a very good start for the year, and I expect we will meet or exceed the targets we have in capital.

Patrick Davitt: Again, recall in our five-year plan that we've projected $500 million of revenues over the five-year period, or I should say at the end of the five-year period. Let me turn to global wealth. Judging by the reporting coming out of the earnings season for the alternatives peer group, what's happening in global wealth seems to be of interest to the analyst community and to the marketplace, and it should be. We made meaningful progress against global wealth and our objectives in Q1. We added 125 dedicated employees, bringing our total employment in global wealth to 145, I believe to be the second largest global wealth team amongst alternative peers. Team alone is not going to define success. Here, the acquisition of Griffin, which will be completed in all facets in Q2, is an incredibly exciting partnership.

Again, recall in our five-year plan that we've projected $500 million of revenues over the five-year period, or I should say at the end of the five-year period.

Let me turn to global wealth.

Judging by the reporting coming out of the earnings season for the alternatives peer group, what's happening in global well seems to be of interest to the analyst community and to the marketplace.

Judging by the reporting coming out of the earnings season for the Alternatives Peer Group, what's happening in global wealth seems to be of interest to the analyst community and to the marketplace.

And it should be.

We made meaningful progress against global wealth and our objectives in Q1.

We added 125 dedicated employees, bringing our total employment in global wealth to a 145 I believe to be the second largest global wealth team amongst alternative peers.

Team alone is not going to define success here.

The acquisition of Griffin.

which will be completed in all facets in the second quarter. It's an incredibly exciting partnership. We're off to a very good start, and we expect to see.

Which will be completed in all facets in the second quarter is an incredibly exciting partnership we're off to a very good start and we expect to see significant progress.

Patrick Davitt: We're off to a very good start, and we expect to see significant progress. Apollo Debt Solutions, our private BDC, continues to enjoy fundraising traction, and we expect to expand and internationalize distribution over the year and the quarters as we continue to deploy, and we see strong demand across a variety of wealth channels, particularly RIAs. Let me spend a minute and talk about how we see the global wealth market. First, I think I need to back up, and I need to define what we believe to be an alternative. An alternative to us is simply an alternative to publicly traded stocks and bonds. That definition encompasses an incredibly large marketplace versus a definition historically that, where alternatives have been thought of as private equity and a variety of very opportunistic products. We like those products.

Apollo debt solutions, our private BDC continues to enjoy fundraising traction and we expect to expand and internationalize distribution over the year and the quarters as we continue to deploy now we see strong demand across a variety of wealth channels.

Particularly our eyes.

Let me spend a minute and talk about how we see the global wealth.

Let me spend a minute and talk about how we see the global wealth market.

First I think I need to back up and I need to define what we believe to be an alternative.

First, I think I need to back up, and I need to define what we believe to be an alternative. An alternative to us.

An alternative to us.

Is simply an alternative to publicly traded stocks and bonds.

That definition encompasses an incredibly large marketplace.

That definition encompasses an incredibly large market.

versus a definition historically that where alternatives have been thought of as private equity and a variety of very opportunistic products.

Patrick Davitt: Those products are the foundation of our business, but the market for alternatives is broader than perhaps we even imagined. I believe you will see the global wealth market develop along two lines over the coming years. One will be against the backdrop of traditional definitions of alternatives. Think of that as private funds. Think of that as BDCs. Think of that as REITs. In many instances, these products have been in the marketplace for decades, but for the first time are being offered to clients at institutional fee scales and with ease of access through technologically augmented implementation and with a much better understanding at the end client of the purpose and of the value behind these products. And needless to say, clients really like them. We've seen tremendous take-up of alternatives using that definition over the past few years.

We like those products. Those products are the foundation of our business.

But the market for alternatives is broader than perhaps we even.

But the market for alternatives is broader than perhaps we even imagined.

I believe you will see the global wealth market develop along two lines.

I believe you will see the global wealth market develop along two lines over the coming years, one will be against the backdrop of traditional definitions of alternatives think of that as private funds think of that as bdcs think of that as rights in many instances. These products have been in the marketplace for decades.

over the coming years. One will be against the backdrop of traditional definitions of alternative.

Think of that as private funds, think of that as BDCs, think of that as...

But for the first time are being offered to clients. It is institutional fee scales.

And with ease of access through technologically augmented implementation.

with a much better understanding at the end client of the purpose and of the value behind these products. And needless to say, clients really like it.

of alternatives using that definition over the past few years.

Patrick Davitt: But I believe that there's a broader market, and the broader market really will help clients deal with what I would say is their traditional portfolios. To the extent a high-net-worth client might have been following a 40/60 portfolio or a traditional, I believe that they will struggle in the coming years with volatility in rates, indexation in markets, volatility of equity to meet their retirement needs. You will see us focus on the next generation of products later this year. We intend to launch the first of a generation of products specifically created for this marketplace. We're focused not just on alternatives, but on equity replacement. I could see a day in the not-too-distant future when a client's portfolio is not 10% or 15% alternatives, but is 50% alternatives. Alternatives under the definition of an alternative to publicly traded stocks and bonds.

But I believe that there is a broader market and.

I believe that they will struggle in the coming years with volatility in rates, indexation in markets, volatility of equity.

I believe that they will struggle in the coming years with volatility in rates indexation in markets volatility of equity to meet their retirement needs.

You will see us focus on the next generation of products later this year.

We intend to launch the first of a.

generation of products specifically created for this marketplace.

Generation of products, specifically created for this marketplace.

focused not just on alternatives, but on equity replacement. I could see a day in the not too distant future when a client's portfolio is not 10% or 15% alternatives, but is 50% alternatives, alternatives under the definition of an alternative to publicly traded stocks and bonds. We believe that alternatives exist from AA to equity.

We're focused not just on alternatives, but on equity replacement.

I could see a day.

In the not too distant future when a clients portfolio.

Not 10, or 15% alternatives, but as 50% alternatives.

Alternatives under the definition of an alternative publicly traded stocks and bonds.

Patrick Davitt: We believe that alternatives exist from AA to equity, and our job is to bring those products to market and offer clients excess return per unit of risk. Most clients can afford to take some amount of liquidity risk across their portfolio. The product set that we envision is large, scalable, and coming soon. Culturally, this has been an amazing quarter. What we're doing, what we're saying is resonating in the professional services marketplace. This is incredibly critical to attract and retain talent. For Q1, we hired 185 new Apollo employees. Turnover is down. Satisfaction is up. To close, the optionality in our business is huge. We've made meaningful progress on our strategic growth initiatives in a relatively short amount of time, and we have some exciting developments in capitalizing on white space opportunities in front of us.

We believe that alternatives exist from double AA.

To equity.

And our job is to bring those products to market and offer clients excess return per unit of risk.

Most clients can afford to take some amount of liquidity risk.

Cross their portfolio.

The product set that we envision is large and scalable and coming soon.

The product set that we envision is large and scalable and.

And coming soon.

Okay.

Culturally.

This has been an amazing quarter.

What we're doing what we're saying is resonating in the professional services marketplace. This is incredibly critical to attract and retain talent.

What we're doing, what we're saying is resonating in the professional services marketplace. This is incredibly critical to attract and retain talent.

For the first quarter, we hired 185 new Apollo employees. Turnover is down. Satisfaction is up.

For the first quarter, we hired a 185, new Apollo employees turnover is down satisfaction is up.

Patrick Davitt: I will now turn the call over to Scott to provide you with some detail on these developments and also cover key drivers of our Q1 results. Thanks, Mark. Our business is built to withstand and even thrive in times of macro volatility and market disruption. This was most clearly demonstrated by our strong first quarter investment performance, which is underpinned by purchase price discipline and downside protection, as well as a focus on investments in companies with strong cash flow generation. As Mark mentioned, our overall private equity portfolio outperformed the S&P 500 by 12% in the first quarter, and our long-term track record remains very strong across our flagship strategies. Fund 9 appreciated 15% during the quarter, which was substantially all driven by EBITDA growth. Similarly, on a life-to-date basis, approximately 90% of the value creation achieved by Fund 9 has been from EBITDA growth.

In front of us.

I will now turn the call over to Scott to provide you with some detail on these developments and also cover key drivers of our Q1.

I'll now turn the call over to Scott to provide you with some detail on these developments and also cover key drivers of our Q1 results.

Thanks, Mark. Our business is built to withstand and even thrive in times of macro volatility and market disruption.

As Mark mentioned, our overall private equity portfolio outperformed the S&P 500 by 12% in the first quarter. And our long-term track record remains very strong across our flagship strategy.

As Mark mentioned, our overall private equity portfolio outperformed the S&P 500 by 12% in the first quarter and our long term track record remains very strong across our flagship strategies.

Fund 9 appreciated 15% during the quarter, which was substantially all driven by EBITDA growth.

<unk> nine appreciated 15% during the quarter, which was substantially all driven by EBITDA growth. Similarly.

Similarly, on a life-to-date basis, approximately 90% of the value creation achieved by Fund9 has been from EBITDA growth.

Similarly on a life to date basis, approximately 90% of the value creation achieved by fund nine has been from EBITDA growth.

Patrick Davitt: As of quarter end, Fund 9's inception-to-date performance is a stellar gross IRR of 52% and 34% net, showcasing the significant alpha we're capable of generating for our clients. As it relates to Fund 10 fundraising, we continue to feel very confident in meeting our $25 billion target. Despite some congestion in the private equity fundraising market, others have sided, as well as the impact of the denominator effect on LP appetite for additional private equity exposure. We're still seeing solid support from our existing LP base and new commitments from an array of investors, including the global wealth community. We believe our differentiated strategy and strong investment performance are setting us apart in this current volatile market backdrop.

As of quarter end, Fund9's inception-to-date performance is a stellar gross IRR of 52% and 34% net, showcasing the significant alpha we're capable of generating for our clients.

As of quarter end <unk> inception to date performance is a stellar gross IRR of 52% and 34% net showcasing the significant alpha we're able we're capable of generating for our clients.

As it relates to Fund 10 fundraising, we continue to feel very confident in meeting our $25 billion target.

As it relates to fund 10 fundraising we continue to feel very confident in meeting our $25 billion target.

We believe our differentiated strategy and strong investment performance are setting us apart in this current volatile market backdrop.

Patrick Davitt: Additionally, yield strategies held up very well during the quarter amid higher rates and wider credit spreads, with direct origination and corporate credit strategies outperforming their benchmark indices by 350 basis points and 70 basis points, respectively. This outperformance was driven by both higher allocation to floating-rate securities as well as superior individual credit selection. We continue to believe the yield-oriented funds we manage are well positioned for a sustained period of higher interest rates. We apply the same discipline, excuse me, the same emphasis on price discipline, downside protection, and excess return generation in managing Athene's investment portfolio. Our ability to produce excess spread comes from moving out the liquidity spectrum, not taking incremental credit risk. As evidence of our focus on underwriting and credit quality, it's worth noting that Athene's historical credit losses have only amounted to seven basis points over the last five years.

This outperformance was driven by both higher allocations of floating rate securities as well as superior individual credit selection. We continue to believe the yield-oriented funds we manage are well-positioned for a sustained period of higher interest rates.

We apply the same discipline excuse me the same emphasis on price discipline downside protection and excess return generation and managing our scenes investment portfolio our.

We apply the same emphasis on price discipline, downside protection, and excess return generation in managing a themes investment portfolio. Our ability to produce excess spread comes from moving out the liquidity spectrum, not taking incremental credit risk.

Our ability to produce excess spread comes from moving out the liquidity spectrum, not taking incremental credit risk.

As evidence of our focus on underwriting and credit quality, it's worth noting that Athene's historical credit losses have only amounted to seven basis points over the last five years.

As evidence of our focus on underwriting and credit quality, it's worth noting that athene historical credit losses have only amounted to seven basis points over the last five years.

Patrick Davitt: Additionally, 95% of Athene's fixed income portfolio is invested in investment-grade securities. During Q1, we remained active in deploying Athene's balance sheet cash into attractive investments, with the weighted average yield on total fixed income purchases exceeding the BBB corporate bond index. Recall that we benefit from a structurally low cost of funds, given that we built Athene's business during a decade of historically low rates. The assets supporting these funds are generally matched from day one, allowing us to lock in attractive spreads. We've allocated a portion of these assets to floating-rate investments that will benefit from rising interest rates, as Martin will discuss later. Additionally, we've constructed a differentiated alternatives portfolio comprising 6% of Athene's assets.

Additionally, 95% of Athene's fixed-income portfolio is invested in investment-grade security.

Additionally, 95% of Athene fixed income portfolio is invested in investment grade securities.

During the first quarter, we remained active in deploying athene is balance sheet cash into attractive investments with a weighted average yield on total fixed income purchases exceeding the triple B corporate bond index.

Recall that we benefit from a structurally low cost of funds given that we built the themes business during a decade of historically low rates.

Recall that we benefit from a structurally low cost of funds, given that we built Athene's business during a decade of historically low rates.

The assets supporting these funds are generally matched from day one, allowing us to lock in attractive spreads.

The asset supporting these funds are generally matched from day, one, allowing us to lock in attractive spreads.

We've allocated a portion of these assets to floating rate investments that will benefit from rising interest rates, as Martin will discuss later.

We've allocated a portion of these assets to floating rate investments that will benefit from rising interest rates as Martin will discuss later.

Additionally, we've constructed a differentiated alternatives portfolio comprising 6% of Athene's assets.

Additionally, we've constructed a differentiated alternatives portfolio comprising 6% of the themes assets.

Patrick Davitt: In the market environment we saw in Q1, with equity market volatility, rising rates, and inflation, Athene's limited exposure to public equities and sizable allocation to strategic asset origination and retirement services platforms, as well as diversified credit, real estate, and natural resource investments, drove meaningful outperformance. In particular, we expect Athene's investments in origination platforms to increase in value in a rising rate environment coupled with tighter liquidity conditions. Switching to deployment, periods of dislocation and volatility also provide opportunity to put capital to work, and our low cost of capital allows us the flexibility to be responsive and opportunistic in our deployment activity. With equity valuations normalizing and borrowing rates rising, we're engaging in an increasing amount of strategic dialogues with companies looking for ways to fund their growth via creative capital solutions.

And the market environment, we saw in the first quarter with equity market volatility rising rates and inflation Athene has limited exposure to public equities and sizeable allocation to strategic asset origination and retirement services platforms as well as diversified credit real estate and natural resource investments drove means.

For outperformance in particular, we expect the themes investments in origination platforms to increase in value in a rising rate environment, coupled with tighter liquidity conditions.

In particular, we expect the themes, investments, and origination platforms to increase in value in a rising rate environment coupled with tighter liquidity conditions.

With equity valuations normalizing and borrowing rates rising, we're engaging in an increasing amount of strategic dialogues with companies looking for ways to fund their growth via creative capital solutions.

Patrick Davitt: We're also seeing opportunities arise from liquidity-driven dislocations, particularly in leverage finance and the convertible bond market. Total gross deployment, which is a measure of our aggregate investing activity, totaled $48 billion in Q1, which included $6 billion from drawdown deployment. Following a quieter Q4, we were active in making new commitments for Fund 9, including our pending investments in Tenneco, Novolex, and Ingenico, to name a few. At the end of March, Fund 9 was 90% committed or invested. We have $2 to 3 billion of dry powder left to deploy from Fund 9 before we would need to commence the investment period for Fund 10. Origination activity, as Mark mentioned, represents the alpha-generating investments we source across our debt business. Strength in Q1 origination volume was driven by more traditional origination activity, such as commercial real estate debt lending and CLO debt.

We're also seeing opportunities arise from liquidity-driven dislocations, particularly in leveraged finance and the convertible bond market.

We're also seeing opportunities arise from liquidity, driven dislocations, particularly in leveraged finance and the convertible bond market.

Total gross deployment, which is a measure of our aggregate investing activity, totaled $48 billion in the first quarter, which included $6 billion from drawdown deployment.

Total gross deployment, which is a measure of our aggregate investing activity totaled 48 billion in the first quarter, which included 6 billion from drawdown deployment.

Following a quieter fourth quarter, we were active in making new commitments for Fund 9, including our pending investments in Tenneco, Novalex, and Ingenico, to name a few.

Following a quieter fourth quarter, we were active in making new commitments for fund nine, including our pending investments in Tenneco, <unk> and <unk> to name a few.

At the end of March, Fund 9 was 90% committed or invested. We have $2 to $3 billion of dry powder left to deploy from Fund 9 before we would need to commence the investment period for Fund 10.

At the end of March <unk>, with 90% committed or invested we have $2 billion to $3 billion of dry powder left to deploy from fund nine before we would need to commence the investment period for fund 10.

Origination activity, as Mark mentioned, represents the alpha generating investments we source across our debt business.

Origination activity as Mark mentioned represents the alpha generating investments, we source across our debt business strength in the first quarter origination volume was driven by more traditional origination activity such as commercial real estate debt lending in CLO debt.

Strength in the first quarter origination volume was driven by more traditional origination activity such as commercial real estate debt lending and CLO debt.

Patrick Davitt: This was complemented by origination activity from platforms, including our scaled middle market direct lending business and more recent additions such as Wheels Donlen and Newfi. In terms of capital raising, inflows of $31 billion in the first quarter were robust and diversified, bringing our total inflows over the last 12 months to $91 billion. Inflows from asset management totaling $19 billion in the first quarter included $12 billion from broad-based fundraising activities in several strategies, including Accord V, Total Return, Apollo Debt Solutions, Hybrid Value, and our new capital markets partnership, among several others. Inflows from retirement services totaled approximately $12 billion in the first quarter, the second highest quarter of organic inflows Athene has generated to date. The business continues to source attractive, profitable growth that has the dual benefit of growing fee and spread-related earnings.

This was complemented by origination activity from platforms, including our scaled middle market direct lending business and more recent additions such as wheels, Donlin and <unk>.

This was complemented by origination activity from platforms, including our scaled middle market direct lending business and more recent additions such as Wheels Donlin and NuFi.

In terms of capital raising, inflows of $31 billion in the first quarter were robust and diversified, bringing our total inflows over the last 12 months to $91 billion.

In terms of capital raising inflows of $31 billion in the first quarter were robust robust and diversified bringing our total inflows over the last 12 months to 91 billion in.

Inflows from asset management totaling $19 billion in the first quarter included $12 billion from broad-based fundraising activities and several strategies, including Accord 5, Total Return, Apollo Debt Solutions, Hybrid Value, and our New Capital Markets Partnership, among several others.

Inflows from asset management totaling $19 billion in the first quarter included 12 billion from broad based fund raising activities in several strategies, including our core five total return Apollo debt solutions hybrid value and our new capital markets partnership among several others.

Inflows from retirement services totaled approximately $12 billion in the first quarter, the second highest quarter of organic inflows that Dean has generated to date.

Inflows from retirement services totaled approximately 12 billion in the first quarter, the second highest quarter of organic inflows Athene has generated to date.

The business continues to source attractive, profitable growth that has the dual benefit of growing fee- and spread-related earnings.

The business continues to source attractive profitable growth that has the dual benefit of growing fee and spread related earnings.

Patrick Davitt: It's worth highlighting that we now have raised over $7 billion of AUM for high-grade alpha-managed accounts, the underlying clients of which are third-party insurance companies, which we believe validates the alpha-generating strategy we employ for Athene on a day-to-day basis. Based on our strong Q1 fundraising results, we feel comfortable meeting or exceeding our previously communicated $80 billion organic inflow guidance for 2022. Importantly, inflows from our global wealth platform accounted for more than 10% of asset management fundraising in the quarter, double our historic average. As Marc alluded to, we're building a tailored product suite across the risk-reward spectrum that is purposely designed for this market and expect to launch 1 to 2 new retail products every quarter over the next 18 to 24 months.

It's worth highlighting that we now have raised over $7 billion of AUM for high-grade alpha-managed accounts, the underlying clients of which are third-party insurance companies, which we believe validates the alpha-generating strategy we employ for Athene on a day-to-day basis.

Based on our strong first quarter fundraising results, we feel comfortable meeting or exceeding our previously communicated $80 billion organic inflow guidance for 2022.

Based on our strong first quarter fund raising results, we feel comfortable meeting or exceeding our previously communicated 80 billion organic inflow guidance for 2022.

Importantly, inflows from our global wealth platform accounted for more than 10% of asset management fund raising in the quarter double our historic average as Mark alluded to we are building a tailored product suite across the risk reward spectrum that is purposely purposefully designed for this market and expect to launch one to two new <unk>.

Retail products every quarter over the next 18 to 24 months.

Patrick Davitt: This includes our non-traded direct real estate income vehicle, Apollo Realty Income Solutions, or ARIS, which publicly filed a registration statement with the SEC in April. We're also seeing significant institutional overlap with products that were designed for the global wealth market, which we believe could drive upside to our fundraising targets this year. As Mark mentioned, we're seeing momentum in several of our newer and scaling strategies, including Total Return, Credit Secondaries, Apollo Debt Solutions, as well as our third-party insurance business. As these initiatives trend favorably, we're also continuing to invest in several growth opportunities and bring in outside talent and resources where appropriate in order to capture the white space opportunities around our core capabilities. These adjacencies will seek to expand our product set, where we believe we have a competitive edge and could drive meaningful upside to our long-term growth trajectory.

This includes our non-traded direct real estate income vehicle, Apollo Realty Income Solutions, or ARIS, which publicly filed a registration statement with the SEC in April .

This includes our non traded direct real estate income vehicle Apollo Realty income solutions, where arris, which publicly filed a registration statement with the SEC in April .

We're also seeing significant institutional overlap with products that were designed for the global wealth market, which we believe could drive upside to our fundraising targets this year.

We're also seeing significant institutional overlap with products that were designed for the global wealth market, which we believe could drive upside to our fund raising targets this year.

As Marc mentioned, we're seeing momentum in several of our newer and scaling strategies, including total return credit secondaries Apollo debt solutions as well as our third party insurance business.

These adjacencies will seek to expand our product set, where we believe we have a competitive edge and could drive meaningful upside to our long-term growth.

These adjacencies will seek to expand our product set where we believe we have a competitive edge and could drive meaningful upside to our long term growth trajectory.

Patrick Davitt: During Q1, we announced the launch of a comprehensive sustainable investing platform focused on financing and investing in global energy transition. We view the energy transition opportunity as a cross-platform endeavor, harnessing the talent of investment professionals not only from our equity platform, but across our yield, hybrid, infrastructure, and natural resource franchises. Our platform is targeting to deploy $50 billion in clean energy and climate capital over the next five years, with the opportunity to deploy over $100 billion by 2030. While these figures may seem large, it's really only a drop in the bucket. By comparison, we expect financing the decarbonization of industry to require approximately $5 trillion per year in capital investment over the next 20 years. To advance these goals, we're planning on raising dedicated capital vehicles.

During the first quarter, we announced the launch of a comprehensive sustainable investing platform focused on financing and investing in global energy transition.

During the first quarter, we announced the launch of our comprehensive sustainable investing platform focused on financing and investing in global energy transition.

We view the energy transition opportunity as a cross-platform endeavor, harnessing the talent of investment professionals, not only from our equity platform, but across our yield, hybrid, infrastructure, and natural resource franchises.

Our platform is targeting to deploy $50 billion in clean energy and climate capital over the next five years, with the opportunity to deploy over $100 billion by 2030.

Our platform is targeting to deploy 50 billion in clean energy and climate capital over the next five years with the opportunity to deploy over $100 billion by 2030.

Patrick Davitt: We're in the process of marketing a climate finance fund and expect to launch an energy transition equity vehicle later this year. Expanding and broadening our secondaries platform is another one of our strategic priorities, given the scalability of the business and large growing opportunity set. The ecosystem we're targeting is broad and dynamic and extends beyond the traditional definition of LP secondaries. We're building out a comprehensive toolkit, including continuation vehicles, GP and fund financing, as well as credit secondaries to address the needs of this market holistically. We're focused on adding talent and scale to these newer initiatives and have recently made strategic hires with experience in the equity secondaries market to augment our existing talent and capabilities. Given the progress we've made so far, you'll begin to see us raising and deploying significant amounts of capital across this platform in new and non-traditional ways.

Expanding and broadening our secondaries platform is another one of our strategic priorities given the scalability of the business and large growing opportunity set.

The ecosystem we're targeting is broad and dynamic and extends beyond the traditional definition of LP secondary.

The ecosystem, we're targeting is broad and dynamic and extends beyond the traditional definition of Lp's secondaries.

We're building out a comprehensive toolkit, including continuation vehicles, GP and fund financing, as well as credit secondaries to address the needs of this market holistically.

We're building out a comprehensive toolkit, including continuation vehicles, GP and fund financing as well as credit secondaries to address the needs of this market holistically.

We're focused on adding talent and scale to these newer initiatives and have recently made strategic hires with experiencing the equity secondaries market to augment our existing talent and capabilities.

Given the progress we've made so far, you'll begin to see us raising and deploying significant amounts of capital across this platform in new and nontraditional ways.

Given the progress we've made so far youll begin to see us raising and deploying significant amounts of capital across this platform and new in non traditional ways.

Patrick Davitt: In Asia, we continue to see massive untapped potential to bring our yield and hybrid strategies to this market, particularly in Japan, Australia, and India. One of our most seasoned senior colleagues is leading our expansion into Asia, and we're also hiring talent on the ground. Our leadership team is increasingly engaged with insurance companies, banks, and pension plans across the region who are interested in our retirement service solutions and fixed income replacement capabilities. And lastly, as I mentioned at Investor Day, we see significant white space opportunities from bringing together the broader Apollo platform with best-in-class sector expertise in areas where we don't have a historic footprint, particularly as we enter what we expect to be a period of extended market volatility.

In Asia, we continue to see massive untapped potential to bring our yield and hybrid strategies to this market, particularly in Japan, Australia and India.

In Asia, we continue to see massive untapped potential to bring our yield and hybrid strategies to this market, particularly in Japan, Australia, and India.

One of our most seasoned senior colleagues is leading our expansion into Asia, and we're also hiring talent on the ground.

One of our most seasoned senior colleagues is leading our expansion into Asia and we're also hiring talent on the ground.

Patrick Davitt: As always, we approach all new opportunities with a Purchase Price Matters mentality and believe adding specialized intellectual capital across our yield, hybrid, and equity strategies will bring new capabilities to the broader Apollo ecosystem. We're beginning to partner with leading high-quality companies possessing these capabilities that will be accretive across the platform. By way of example, as you saw with our investment in Motive last year, we chose to partner with them due to their fintech expertise to explore investment opportunities and potential new capabilities that we otherwise would not have pursued. We've been working on a number of exciting things and expect to announce several partnerships in the coming months in areas such as life science, software, and hard tech. With that, I'll turn the call over to Martin, who will discuss our financial results in detail. Great. Thanks, Scott.

We're beginning to partner with leading high-quality companies possessing these capabilities that will be accretive across the platform.

We're beginning to partner with leading high quality companies possessing these capabilities that will be accretive across the platform.

Way of example, as you saw with our investment in motive last year, we chose to partner with them due to their fintech expertise to explore investment opportunities and potential new capabilities that we otherwise would not have pursued.

Great, thanks Scott. Our first quarter results represent a really solid foundation for our next chapter as a large and more profitable monopolar.

Patrick Davitt: Our first quarter results represent a really solid foundation for our next chapter as a large and more profitable arm of Apollo. Following our merger with Athene, our earnings power is greatly enhanced. The durable and recurring nature of fee and spread-related earnings is a powerful and highly valuable combination that we believe will be increasingly appreciated as we execute on the attractive financial plan we presented last October. For the first quarter, we reported fee-related earnings of $310 million, or $0.52 per share, which increased modestly year-over-year, reflecting higher revenues, and increased costs associated with investing in our business for growth, as both Marc and Scott mentioned. Importantly, fee-related revenues from perpetual capital represent over 50% of our total fee revenue, providing enhanced durability and compounding growth potential of this valuable earnings stream.

Great. Thanks, Scott.

Our first quarter results represent a really solid foundation for our next chapter as a large and more profitable monopolar.

Following our merger with Athene, our earnings power is greatly enhanced.

Following our merger with attained our earnings power is greatly enhanced.

Both Mark and Scott mentioned.

Importantly, fee-related revenues from perpetual capital represents over 50 percent of our total fee revenue, providing enhanced durability and compounding growth potential of this valuable earning stream.

Importantly fee related revenues from perpetual capital represents over 50% of our total fee revenue, providing enhanced durability and compounding growth potential of this valuable earnings stream.

Patrick Davitt: Management fees increased 11% year-over-year, driven by robust and broad-based inflows from retirement services, institutional, and retail clients, as well as strong deployment activity in funds that earn management fees on invested capital. While the quarter included some catch-up fees in yield, we expect further management fee growth for our yield strategies over 2022, driven by our focus on origination of differentiated assets through our platforms. We held the final close for our Griffin acquisition last week, which adds two interval funds totaling approximately $6.5 billion of fee-generating AUM. Griffin has continued to see growth in total sales from its real estate and credit funds since the acquisition was signed last December. Q1 advisory and transaction fees of $64 million increased 16% year-over-year, though faced some sequential pressure from lower overall capital markets activity in Q1, as Mark mentioned.

Management fees increased 11% year over year, driven by robust and broad based inflows from assignment services institutional and retail clients.

As well as strong deployment activity in funds management fees on invested capital.

We held the final close for our Griffin acquisition last week, which adds two interval funds totaling approximately $6 5 billion of fee generating AUM.

Griffin has continued to see growth in total sales from its real estate and credit funds. Since the acquisition was signed last December .

First quarter advisory and transaction fees of $64 million increased 16% year over year.

<unk> faced some sequential pressure from lower overall capital markets activity in the first quarter as Mark mentioned.

Patrick Davitt: Capital Solutions activity has picked up so far in Q2, with transaction fees running at a run-rate at a higher level compared to Q1. Turning to fee-related expenses, the year-over-year increase reflects our continued investment in talent and the previously communicated rebasing of our non-compensation cost structure in 2022, following the expansion of our global team and including higher occupancy and technology costs necessary to support the firm's next leg of growth. We expect to continue growing into a higher run-rate expense level as we progress throughout the year, consistent with the trends we outlined at our Investor Day. With that said, we expect to generate positive operating leverage as we enter 2023, as the pace of expense growth slows.

Capital solutions activity has picked up so far in the second quarter with transaction fees running run rating at a higher level compared to the first quarter.

Turning to fee related expenses the year over year increase reflects our continued investment in talent and the previously communicated rebating of our non compensation cost structure in 2022.

Following the expansion of our global team and including higher occupancy and technology costs necessary to support the firm's next level next leg of growth.

We expect to continue growing into a higher run rate expense level as we progress throughout the year consistent with the with the trends we outlined at our Investor day.

With that said, we expect to generate positive operating leverage as we enter 2023 as the pace of expense growth slows.

Patrick Davitt: Moving to our retirement services segment, we generated spread-related earnings of $670 million in Q1, or $1.12 per share, driven by a net investment spread of 186 basis points and translating to a net spread of 148 basis points. Our SRE reflects the impact of purchase accounting, whereby we were required to mark to market the assets and liabilities on Athene's balance sheet at the date of the merger close. This resulted in a rebasing of our fixed income investment yield, cost of funds, and financing costs. The net one-time impact to our net investment spread was a two basis point benefit in the quarter. The primary driver of our particularly strong SRE results was an elevated asset yield, and specifically the portion derived from alternative investment income. 94% of Athene's investment portfolio is invested in fixed income securities, and our SRE includes the effective yield on these assets.

Moving to our retirement services segment, we generated spread related earnings of $670 million in the first quarter or $1 12 per share.

Driven by our net investment spread of 196 basis points and translating to a net spread of 148 basis points.

Our <unk> reflects the impact of purchase accounting, whereby we were required to mark to market the assets and liabilities on our <unk> balance sheet at the date of the merger close.

This result resulted in a rebase of our fixed income investment yield cost of funds and financing costs.

Net onetime impact to our net investment spread was a two basis point benefit in the quarter.

The primary driver of our particularly strong <unk> results was an elevated asset yield and specifically the portion derived from alternative investment income.

94% of <unk> investment portfolio is invested in fixed income securities.

Sorry includes the effective yield on these assets.

Patrick Davitt: The remaining 6% of Athene's portfolio is comprised of differentiated, downside-protected alternative investments, which are marked on a quarterly basis. In Q1, income generated from these alternative investments was above the long-term trend of 12%, producing an annualized return of 17%. Recall that the construction of this portfolio is strategic origination and retirement services platforms, as well as Apollo Fund investments, principally equity and hybrid. Since the vast majority of this portfolio is not tied to public equities or technology specifically, it's not surprising to see outperformance relative to the public equity markets. You can see the high-level composition of the portfolio on page 15 within our earnings presentation. Within this portfolio, performance from strategic origination platforms was particularly strong and generated an 11% annualized return. These businesses have spread-based characteristics and, as Scott mentioned, benefit from a rising rate environment.

The remaining 6% of things portfolio is comprised of differentiated downside protected alternative investments, which are March on a quarterly basis.

In the first quarter income generated from these alternative investments was above the long term trend of 12% producing an annualized return of 17%.

Recall that the construction of this portfolio is strategic origination and retirement services platforms as well as Apollo fund investments principally equity and hybrid.

Since the vast majority of this portfolio is not tied to public equities or technology, specifically, it's not surprising to see outperformance relative to the public equity markets.

You can see the high level composition of the portfolio on page 15 within our earnings presentation.

Within this portfolio performance from strategic origination platforms was particularly strong and generated an 11% annualized return.

These businesses have spread based characteristics and as Scott mentioned benefit from a rising rate environment.

Patrick Davitt: As we've been emphasizing, proprietary and recurring asset origination is an extremely important differentiator for us. We hold these investments in these origination vehicles through Athene, which provides a capital-efficient structure, attractive returning assets for Athene's investment portfolio, and frees up capital at the holding company level for other strategic growth investments. Strategic investments in other retirement services businesses also performed well. These are also typically spread-based businesses that generally benefit in a rising rate environment and include investments such as Athora, Venerable, Challenger, and FWD. These investments generated a 17% annualized return during Q1. And lastly, the performance of investments in Apollo and other managed funds was the largest source of strength, generating a 19% return for the quarter.

As we've been emphasizing proprietary and recurring asset origination is an extremely important differentiator for us.

We hold these investments in these origination vehicles through ethane, which provides a capital efficient structure attractive returning assets for things investment portfolio and frees up capital at the holding company level for other strategic growth investments.

These investments generated a 17% annualized return during the first quarter.

And lastly, the performance of investments in Apollo and other managed funds was was the largest source of strength generating a 19% for the quarter.

Patrick Davitt: Every sub-asset class component of the fund investments contributed to the result, with real estate outperforming amid inflationary trends and complemented by appreciation in private equity and natural resources funds. Given the typical quarterly fluctuations in Athene's alternative returns, we also present normalized SRE, assuming a constant return of 11%, slightly below Athene's long-term average of 12%. We also normalize for certain notable items generally related to adjustments to long-term liability assumptions, which can vary favorably or unfavorably from period to period. We do not recognize these items as recurring income until it's clear they're becoming a trend. Assuming normalized alternative returns of 11% and reducing for certain notable items, SRE would have been $488 million in Q1, translating to a normalized net spread of 108 basis points on a net basis.

Given the typical quarterly fluctuations in our <unk> alternative returns. We also present normalized FRE, assuming a constant return of 11% slightly below of things long term average of 12%.

We also normalized for certain notable items generally generally related to adjustments to long term liability assumptions, which can vary favorably or unfavorably from period to period.

We do not recognize these items as recurring income until it is clear they are becoming a trend.

Assuming normalized alternative returns of 11% and reducing for certain notable items.

<unk> would have been $488 million in the first quarter translating to a normalized net spread of 180 108 basis points on a net basis.

Patrick Davitt: As Scott mentioned, our earnings benefit from rising rates, given that Athene is invested in $37 billion of floating rate securities and only has $11 billion of floating rate liabilities. Approximately 60% of the net floating rate exposure is tied to three-month Libor, with the remainder split between one month, and other bases. Due to the timing of resets relative to the timing of rising spot rates, we experienced only a modest earnings benefit from higher short-term rates in Q1. In dollar terms, we expect every 25 basis points parallel shift in the curve to drive an additional $30 to $40 million of annual SRE. If the forward curve materializes as of April 30, we see approximately $0.30 per share of upside to SRE in 2022, specific to a benefit from higher rates.

As Scott mentioned, our earnings benefit from rising rates, given that Athene has invested in $37 billion of floating rate fixed and floating rate securities.

Not only has $11 billion of floating rate liabilities.

Approximately 60% of the net floating rate exposure is tight is tied to three month LIBOR with the remainder split between one month and other bases.

Due to the timing of resets relative to the timing of rising spot rates, we experienced only a modest earnings benefit from higher short term rates in the first quarter.

In dollar terms, we expect every 25 basis point parallel shift in the curve to drive an additional $30 million to $40 million of annual FRE.

If the forward curve materializes as of April 30, we see approximately <unk> <unk> per share of upside sorry in 2022 specific to a benefit from higher rates.

Patrick Davitt: Our retirement services business creates a locked-in liability cost other than relatively small reserve adjustments for changes in expected behavior at the tail end of the contracts. For gap reporting, we are required to recognize the interest rate and credit spread changes on assets supporting reinsurance contracts, but we are not permitted to recognize similar changes on the associated liabilities. Our reported gap loss in Q1 was driven by interest rate-driven unrealized investment losses on fixed income securities held through reinsurance. For comparability and consistency, our SRE metric adjusts for this specific treatment on reinsured assets. Lastly, moving to our principal investing segment, we reported principal investing income of $187 million in Q1, or $0.31 per share. Realized performance fee generation was relatively light in the quarter in view of turbulent markets.

Our assignment services business creates a locked in liability costs other than relatively small reserve adjustments for changes in expected behavior at the tail end of the contracts.

For GAAP reporting we are required to recognize the interest rate and credit spread changes on asset supporting reinsurance contracts, but we are not permitted to recognize similar changes on the associated liabilities.

Our reported GAAP loss in the first quarter was driven by interest rate driven unrealized investment losses on fixed income securities held through reinsurance.

Comparability and consistency our SRT metric adjusts for this specific treatment on reinsured assets.

Lastly, moving to our principal investing segment, we reported principal investing income of $187 million in the first quarter or <unk> 31 per share.

<unk> performance fee generation was relatively light in the quarter and view of turbulent markets.

Patrick Davitt: Our current two flagship private equity funds, funds 8 and 9, remain primed to monetize their portfolios when we feel the market backdrop is opportune to harvest. Realized investment income included $206 million from realized gains on the transfer of the majority of Apollo's GP investments. This portfolio was transferred to Athene in Q1, and we expect will soon be transferred to a fund managed by Apollo, including third-party capital, to support fundraising in a new strategy. We note that we are now presenting whole loan and other financing costs as a separate line item on our income statement outside PII. We estimate that PII in 2022 will align with our multi-year forecast of approximately $1 per share on average, excluding interest and financing costs over the next five years.

Our current two flagship private equity funds of funds eight or nine remained primed to monetize their portfolios. When we feel the market dropped a backdrop is opportune to harvest.

Realized investment income included $206 million from realized gains on the transfer of the majority of Apollo's GP investments.

We note that we are now presenting holdco and other financing costs as a separate line item on our income statement outside <unk>.

We estimate that in 2022 will align with our multi year forecast of approximately $1 per share on average excluding interest and financing costs over the next five years.

Patrick Davitt: Now, turning to capital, we spent $325 million in the quarter to repurchase shares to offset dilution with respect to employee share deliveries, in line with our plan to immunize our share count from equity-based compensation. Given the recent dislocation in our stock, we are actively evaluating opportunistic share repurchases as part of our announced share repurchase program, while continuing to balance investing in interesting investments that should accelerate our growth profile over the long term. We utilized approximately $150 million of capital from the holding company on strategic investments in the first quarter, primarily for our investment in CAIS. Athene ended the quarter in a strong capital position with $7.3 billion of deployable capital, including $3.3 billion of excess equity capital, $2.9 billion of untapped debt capacity, and $1.1 billion of dry powder in the ADIP sidecar.

Now turning to capital, we spent $325 million in the quarter to repurchase shares to offset dilution with respect to employee shareholder is in line without plants immunized, our share count from equity based compensation.

Given the recent dislocation in our stock we are actively evaluating opportunistic share repurchases as part of our announced.

Share repurchase program, while continuing to balance investing in interesting investments that should accelerate our growth profile over the long term.

We utilized approximately $150 million of capital from the holding company on strategic investments in the first quarter, primarily for our investment in case.

<unk> ended the quarter in a strong capital position with seven $3 billion of deployable capital, including $3 $3 billion of excess equity capital $2 $9 billion of untapped untapped debt capacity and $1 $1 billion of dry powder in the <unk>.

Patrick Davitt: At the end of Q1, our net balance sheet value was $2.5 billion, or $4.22 per share, which included cash and equivalents of $2.2 billion. In line with our fixed dividend policy, we declared a dividend of $0.40 per share in Q1. So, to wrap up and to echo Mark, our Q1 results set us up very well for a strong year of growth. We're excited to share the progress we continue to make executing our long-term strategic plan in the coming quarters. With that, I'll turn the call back to the operator for Q&A.

At the end of the first quarter, our net balance sheet value was $2 5 billion or $4 22 per share, which included cash and equivalents of $2 2 billion.

In line with a fixed dividend policy, we declared a dividend of <unk> 40 per share in the first quarter.

So to wrap up and to Echo Mark our first quarter results set us up very well for a strong year of growth.

We're excited to share the progress we continue to make executing our long term strategic plan in the coming quarters.

And with that I'll turn the call back to the operator for Q&A.

Noah Gunn: As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Okay.

As a reminder to ask a question you will need to press star one on your telephone.

Kelly Your question press the bounty please standby, while we compile the Q&A roster.

Our first question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Glenn Schorr: Hi, thank you. I just want to touch on one of the last things you mentioned and get the big picture. I just need a little more color to fully understand it. The big picture of what you're moving, the $5 billion from Apollo Balance to Athene funds, what that's happening and what does that do for you at the highest level?

Hi, Thank you.

To touch on.

One of the last things you mentioned and get the Big picture Im just need a little more color to fully understand that the big picture of.

What you are moving in the $5 billion of Apollo from Palo bouncing to Athene two funds.

What what that's happening and what does that do for you at the highest level.

Scott Kleinman: So, Glenn, it's not $5 billion. It's much less than that. It's a portion of the existing GP investments. You'll notice that the balance sheet went down significantly. Most of that drop is related to the merger. The investment we had in Athene obviously goes away on consummation of the merger. So, what we are moving is a majority of the GP stakes that we own in funds that we manage, and they're moving to a vehicle, which we expect will occur in Q2 to support a third-party capital-raising initiative.

So.

But it's.

It's about $5 billion, it's much it's much less than that it's a portion of the existing GP investments youll.

You'll notice that the balance sheet went down significantly most of that drop is the.

As related to the merger the investment we had in ethane obviously goes away on consummation of the merger. So so what we are moving is a majority of the GP Stakes that we are in funds that we manage.

And then moving to a vehicle.

Which we expect will occur in the second quarter two to support a third party capital raising initiatives.

Noah Gunn: Thank you. Our next question comes from the line of Finian O'Shea from Wells Fargo Securities. Your line is now open.

Thank you. Our next question comes from the line of Finian O'shea from W. Baird. Your line is now open.

[Analyst] (Wells Fargo): Hey, everyone. Good morning. Can you talk a bit about how rising interest rates is impacting the outlook for high-grade origination?

Hey, everyone. Good morning.

Can you talk a bit about how the.

How rising interest rates is impacting.

The outlook for high grade origination.

Marc Rowan: Look, it's Marc. I'll start with the balance sheet, and then we'll talk about origination. So, as Scott mentioned in the call, when Athene, or quite frankly, any other retirement services company, assumes a liability, it matches it with assets, and we so-called ALM matching. There is a portion of that that needs to be reinvested over a period of time representing the profit on the contract. When people talk about ALM matching, they're talking about matching an asset and a liability, but profit, to some extent, is unhedged. And therefore, if you are putting assets on the books in a rate environment that are higher than the rate environment when you assume the liability, that is generally a positive. In addition, what we've seen is a benefit from floating rate.

It's mark I'll start with the balance sheet and then we'll talk about origination so as Scott mentioned in the call when I.

Seen or quite frankly, any other retirement services company.

<unk> assumes the liability it matches it with assets and we so called <unk> matching.

There is a portion of that that needs to be reinvested over a period of time, representing the profit on the contract when people talk about AOS matching theyre talking about matching an asset and a liability but profit to some extent is unhedged and therefore, if you are putting assets on the books in a rate environment that are higher than the rate environment.

When you assumed the liability that is generally a positive.

In addition, what we've seen is.

Marc Rowan: Now, your specific question as it relates to origination, generally, what we have seen is the newly underwritten product is being underwritten in the context of higher rates, and yet our funding costs on these platforms are relatively sticky. So, we've seen expanding margins across the platform. To the extent rising rates, and just to give you a sense, through, I guess, last week, the investment-grade market was off 17%. It's made people gun-shy, and we've seen this across most public credit markets. To the extent there is dislocation in public credit markets, we are a better, more secure, more definite source of capital. All of those things benefit. On average, we are better off with rising rates.

Benefit from floating rate now your specific question as it relates to origination.

Generally what we have seen is the at the newly underwritten product is being underwritten in the context of higher rates and yet our funding costs on these platforms are relatively sticky so we've seen expanding margins across the platform.

To the extent rising rates and just to give you a sense in the through I guess, the last week the investment grade market was up 17%.

It's made people gunshot and we've seen this across most public credit markets to the extent there is dislocation in public credit markets.

We are a better.

More secure more definite source of capital all of those things benefit.

On average we are better off with rising rates.

[Company Representative] (Apollo Global Management): Yeah, I would just chime in that, yeah, as Mark said, the origination teams are as busy as they've ever been. So, the rising rate environment, the tightening of the liquidity environment is making things even more attractive.

Yes, I would just chime in that yes, as Mark said the the origination teams are as busy as they've ever been so the rising rate environment that tightening of the liquidity environment.

Is making things even more attractive.

Scott Kleinman: Right, with further benefits of Athene with the floating rate assets and higher rates increases the origination of an annuity product. So, it's a benefit around the whole system.

Right with further benefits of the thing with the floating rate assets and higher rates increases the origination this revenue annuity product. So it's a benefit around the whole system.

Noah Gunn: Thank you. Our next question comes from the line of Alexander Blostein from Goldman Sachs. Your line is now open.

Okay.

Thank you. Our next question comes from the line of Alexander <unk> Jain from Goldman Sachs. Your line is now open.

Hey, good morning, guys. Thanks for the question.

Also maybe a little bit of a bigger picture question around just capital allocation priorities here.

The stock has been under considerable pressure here relative to kind of either of the insurance comsat or the asset management comsat.

You guys are generating substantial amount of capital and have lots of excess capital or heard Gulf market. Scott talk also about different kind of new investment opportunities and I guess it sounds like acquisitions, maybe on the asset management side or on the origination side.

How do you weigh those inorganic opportunities against the buyback could be share prices.

Marc Rowan: Look, let's do it at the highest level. Just to give you the context, Marc, by the way, context from an Investor Day. We said at Investor Day that we expect to generate $15 billion of excess capital over the next 5 years. $5 billion to support what we'll call the base dividend, $5 billion for investment in the business, and $5 billion that we would use opportunistically either to invest, or for buybacks, or for dividends. I think Martin said it best. Given where the stock is, we expect to use a portion of that to buyback stock. The stock is very attractive from our point of view. Now, one needs to actually generate the $5 billion to be able to spend it, but one can argue that probably the highest and best use of our excess capital is our own stock.

Let's do it at the highest level in just to give you the comments Marc by the way context from an Investor Day, We said at Investor day that we expect to generate $15 billion of excess capital over the next five years.

$5 billion to support what we'll call the base dividend 5 billion for investment in the business and $5 billion that we would use opportunistically either to invest or for buybacks or for dividends.

Martin said, it best given where the stock is.

We expect to use a portion of that to buy back stock. The stock is very attractive from our point of view now one needs to actually generate the $5 billion to be able to spend it.

But one can argue that.

Probably the highest and best use of our excess capital is our own stock.

Noah Gunn: Thank you. Our next question comes from the line of Michael Cyprys from Morgan Stanley. Your line is now open.

Thank you. Our next question comes from the line of Michael <unk> from Morgan Stanley . Your line is now open.

Hey, Good morning. This is to me here stepping in for Michael I, just wanted to ask a quick question.

<unk>.

Kind of an update on retail.

Updates on the resources Youre deploying in the channel today, and how you anticipate those resources and head count expanding from here, maybe I will start with folks that come across from Griffin.

How do you expect that to trend from here.

Marc Rowan: Yeah, sure. Look, as Marc mentioned in his comments, we've seen over the last year headcount go from about 25 to about 145. That gives us a really strong footing for both our high net worth as well as RIA channels to be able to support that, as well as the product development capabilities. You heard Marc talk a bunch about the new products that we are going to be bringing. All of those things, right, the pipes, the product, and the technology are critical to being successful in the retail and global wealth channel. From here, we will continue to grow as appropriate. I think the rate of change will come down meaningfully, but there's still more ground to cover. As we're learning, there's always more ground to cover in the retail channel. But couldn't be more excited about where things are headed.

Yes, sure look as Mark mentioned in his comments.

<unk> seen over the last year.

Count go from about 25 to about 145.

That gives us a really strong footing.

For both our high net worth as well as RIAA channels to be able to support that as well as the product.

Development capabilities, you heard Mark talk a bunch about the new products that we are going to be bringing.

All of those things right the pipes the product and the technology are critical to being successful.

In the retail and global wealth channel.

From here.

We will continue to grow as appropriate I think the rate of change will come down.

<unk>, but.

There is still more ground to cover as we're learning there is always more ground to cover in the retail channel.

But couldnt couldnt be more excited about where things are headed and I would expect quarter after quarter youre going to see new product announcements from Apollo and the scale of capital raising continuing to ramp in that channel.

Marc Rowan: I would expect quarter after quarter, you're going to see new product announcements from Apollo and the scale of capital raising continuing to ramp in that channel.

Noah Gunn: Thank you. Our next question comes from the line of Patrick Davitt from Autonomous Research. Your line is now open.

Thank you. Our next question comes from the line of Patrick Davitt from Autonomous Research. Your line is now open.

Patrick Davitt: Morning, everyone. A follow-up on that. You said 1 to 2 products a quarter over the next 12 to 18 months. Should we take that to mean there's an expectation that these new products will have immediate distribution placement in wirehouses, etc., or should we expect the usual lag to getting those products placed?

Good morning, everyone I'll follow up on that you said one to two products a quarter over next 12 months to 18 months should we take that to mean there is an expectation that these new products will have immediate distribution placement and wire houses et cetera, or should we expect the usual lag to getting those products placed.

Marc Rowan: Look, I think you're going to see the products that have immediate distribution placements. Some will be directly into wirehouses. Some will be directly to RIA. And I think the thing I want to make sure I communicate is a view that we view this as really the first inning. What's happened to date across the entirety of our industry has been the repurposing of existing products for this channel at institutional fees. The next phase of this is products created specifically for this marketplace that deal with the unique needs of this marketplace: diversification, no J Curve, no double fees, no capital calls, semi-liquid, full alignment. That's where we believe this market is going. And again, I'll come back.

Look I think youre going to see the products that have immediate distribution placements some will be directly into wire houses some will be directly to our IAA.

And I think the thing I want to make sure I communicate is a view that we are really we view this as really the first inning.

What's happened to date across the entirety of our industry has been the repurposing of existing products.

For this channel at institutional fees.

And the next phase of this is products created specifically for this marketplace that deal with the unique needs of this marketplace diversification no J curve no double fees no capital calls semi liquid full alignment.

Marc Rowan: We have, as alternative managers, often talked about our business in historical contexts where we are in the small alternative bucket, be it private equity and a number of things like it. At our investor day, we sought to broaden that definition to show you that we view alternatives, particularly in the yield marketplace, to include Investment Grade. I believe the way we think about the product and the way we communicate the product is investors have had a relatively benign experience over the past decade against a backdrop of money printing, which has existed since 2008, and falling rates. On a go-forward basis, to the extent the market does not look like that, I believe that investors will be challenged and will be revisiting in wholesale the notion of a 60/40/40/60 portfolio. Our ambition is not to just serve a traditional alternatives bucket.

<unk>, particularly in the yield marketplace to include investment grade.

I believe the way, we should we think about the product and the way we communicate the product is investors have had a relatively benign experience over the past decade against the backdrop.

Money printing, which has existed since 2008 and.

Falling rates.

On a go forward basis to the extent the market does not look like that I believe that investors will be challenged and we will be revisiting in wholesale the notion of a 60 40 40 60 portfolio.

Our ambition is not to just soft serve a traditional alternatives bucket. It is to serve stable value investment grade.

Marc Rowan: It is to serve stable-value, investment-grade, Total Return, opportunistic, REIT, BDC, hedge, and equity, and to offer a complete alternatives ecosystem guided by the notion of excess return per unit of risk.

Total return.

Opportunistic.

Right.

<unk>.

And equity.

And to offer a complete alternatives ecosystem.

Guided by the notion of excess return per unit of risk.

Noah Gunn: Thank you. Our next question comes from the line of Robert Lee from Keefe, Bruyette & Woods. Your line is now open.

Thank you. Our next question comes from the line of Robert <unk> from Keefe Bruyette <unk>. Your line is now open.

Robert Lee: Great. Good morning. Thanks for taking my questions. Maybe the first one is just going to the alternative investment portfolio. So, and just maybe digging a little bit deeper, with about 46% of the assets there being in some type of platform, whether it's the retirement services or origination platforms, is it reasonable to think of the SRE from those or the earnings from those platforms as being actually pretty stable quarter to quarter over time so that there's actually a pretty healthy kind of you always have a pretty healthy, stable base of revenues that are thrown off at least by that 46% allocation?

Great. Good morning, Thanks for taking my questions, maybe the first one.

This is going to the alternative investment portfolio. So.

Just maybe digging a little bit deeper.

About 46% of the assets they are being in some type of platform, whether it's the retirement services origination platforms.

Is it reasonable to think of the.

The SRA from those of the original or the.

Earnings from those platforms as being.

Actually pretty are pretty stable quarter to quarter over time. So that there is actually a pretty healthy kind of you always have a pretty healthy stable base of revenues.

Thrown off at least by that 46% of the allocation.

Marc Rowan: Yeah, that's exactly the point. These platforms are businesses that are producing origination flow for the underlying retirement services, fixed income portfolio, and then the equity of those platforms are what's in the alternatives portfolio. As those businesses continue to grow, as we continue to invest in those platforms, you're seeing just pretty stable scaling earnings growth in those platforms. You can see some of the trends we've highlighted for you on page 16 of the earnings slides.

Yes.

That's exactly the point these platforms our business is that.

That are producing origination flow for the for the.

Underlying retirement services fixed income portfolio.

Some of the trends we've.

We've highlighted for you on page 16 of the earnings slides.

Noah Gunn: Thank you. Our next question comes from the line of Rufus Hone from Bank of Montreal. Your line is now open.

Thank you. Our next question comes from the line of Rubicon from Bank of Montreal. Your line is now open.

[Analyst] (Wells Fargo): Great. Good morning. Thanks for taking my question. I wanted to come back to the global wealth business, and it sounds like you expect a pretty meaningful inflection in the rate of growth there over the next, call it, 2 to 3 years. And with a lot of new product launches in the pipeline, will most of these be in the broader retail alt definition you mentioned, or will it be in the more traditional retail alt bucket where there's slightly more competition like private BDCs, private REITs, and so on? And do you expect this will primarily still be a high-net-worth market in 3 to 5 years, or do you think the market opens up more substantially over time? Thank you.

Call it two to three years and with a lot of new.

Product launches in the pipeline, where most of these being the broader retail definition, you mentioned or will it be in the more traditional retail bucket or that slightly more competition like private bdcs and private Reits and so on.

And do you expect this will primarily still be a high net worth market in three to five years or do you think the market opens up more substantially over time. Thank you.

Marc Rowan: So it's Marc. I'll start, and then I'll hand it to Scott. So all I can say is yes. I know that that's not clarity, but recall how in investor day how we based our business. We've set out a five-year plan, which includes raising a total of having total AUM of roughly $50 billion at retail over the five-year period. I believe that target is a very conservative target, and I am optimistic on our chances to be able to exceed that. How the market develops, I think we have to have some bit of humility in looking forward. Product launches are notoriously complicated, and we will seek broad market acceptance. If you ask us for opinion, I think the market will be, in the short term, high-net-worth. It will be balanced between the competing traditional definition of alternatives as well as newer definition of alternatives.

So it's Marc I'll start and then I'll hand, it to Scott. So all I can say is yes.

Very conservative target.

I am optimistic on our chances to be able to exceed that.

How the market develops I think we have to have some bit of humility and looking forward product launches.

Are notoriously complicated.

Marc Rowan: It is our job to differentiate our product from a competitive marketplace around the way we offer these products, the creativity with which we offer these products, the alignment that we will have with retail investors around these products. As Scott mentioned, purchase price matters. To the extent we have a vision of alternatives making up a much larger portion of a portfolio that will necessarily include the expanded definition of alternatives, and consumers, be they high-net-worth, mass affluent, or otherwise, will need to feel that they are making secure choices and not buying just volatility.

And it is our job to differentiate our product from a competitive marketplace around the way we offer these products the creativity with which we offer these products.

The alignment that we will have with retail investors.

These products and as Scott mentioned purchase price matters too.

To the extent, we have a vision of alternatives, making up a much larger portion.

Of our portfolio that will that will necessarily include the expanded definition of alternatives and consumers be the high net worth or mass affluent or otherwise, we will need to feel that they are making secure choices and not buying just volatility.

[Company Representative] (Apollo Global Management): Yeah. No, I would just add what Mark was alluding to, right? As this market develops, of course, it's going to start with the traditional definition of retail products that are truly institutional quality products but offered to retail in a more attractive fashion. But we have something that others don't have, which is the combination of Apollo and Athene bringing together balance sheet and alignment, product development capabilities that are extremely suited to the retail environment. And those are the type of products that you're going to be seeing in the short to medium term, as well as some of the more traditional retail products. So I hate to repeat Mark, but the answer is yes. It's an all of the above answer.

Yes, no I would just add what mark was alluding to right.

As this market develops.

Paulo, and Athene, bringing together.

I hate to repeat Mark, but the answer is yes, it's in all of the above answer.

Noah Gunn: Thank you. Our next question comes from the line of Gerald O'Hara from Jefferies. Your line is now open.

Thank you. Our next question comes from the line of Gerald O'hara from Jefferies. Your line is now open.

Glenn Schorr: Great. Thanks. I think Martin actually touched on it a little bit within the SRE construct, but perhaps you could help us unpack a little of the kind of thematic drivers of the almost 8% private equity carrying value return in the quarter. Obviously, quite strong. Just would like to hear a little bit about how that came to be. Thank you.

Great. Thanks.

I think Martin actually touched on a little bit within the SRU.

Construct but perhaps.

You could help us unpack, a little kind of thematic drivers of that.

Almost 8% private equity carrying value returned in the quarter, obviously quite strong.

Just would like to hear a little bit about how that.

How that candidate thank you.

[Company Representative] (Apollo Global Management): Yeah. Yeah. Look, this goes back to Purchase Price Matters, right? Our PE business has built its portfolio along the lines of acquiring good cash-flowing businesses where we can drive real tangible value to those businesses through earnings growth, through cost savings, through cash flow. And so not really dependent on rising valuations to get out at meaningfully higher values than where you entered. So in Q1, we saw exactly that, notwithstanding inflation that is very real in the economy, wage inflation, materials inflation, and logistics inflation. The underlying strengths of the underlying businesses allowed for price increases to continue to offset that inflation and continue to grow output. So, I mean, that's the fundamental strategy that Apollo has been pursuing for the last decade.

Yes, Yes look this goes back to purchase price matters right.

RPE business has built.

Portfolio, along the lines of acquiring good cash flowing businesses, where we can drive real tangible value to those businesses through earnings growth through cost savings through cash flow.

And so.

And not really dependent on.

Rising valuations to get out at meaningfully higher values than where you entered.

So in Q1, we saw exactly that notwithstanding.

Inflation that is very real.

Economy wage inflation and materials inflation logistics inflation.

The underlying strengths of.

[Company Representative] (Apollo Global Management): It hasn't been sexy over the last decade, but certainly as we enter this new economic regime change where you can't just rely on declining or 0% rates to allow you to exit at ever-increasing multiples, this is exactly the type of performance I would expect to be seeing in this type of environment.

New economic regime change, where you can't just rely on.

Declining or zero percent rage to allow you to exited ever increasing multiples. This is exactly the type of performance I would expect to be seeing in this type of environment.

Noah Gunn: Thank you. Our next question comes from the line of Chris Kotowski from Oppenheimer. Your line is now open.

Thank you. Our next question comes from the line of Chris Caso Wacky from Oppenheimer. Your line is now open.

Robert Lee: Oh, good morning, and thank you. I guess I wanted to go back to the retirement services and a multi-part question. I mean, first is what is the rationale for reporting on a normalized spread alternative income basis as opposed to just letting the chips fall where they may? And then secondly, how should we think about the—to go back to Robert's question—the return of the alternatives portfolio over time in that, I mean, you were up this quarter. A number of the other alternatives showed positive returns, so fine. So this quarter, it was not correlated to the broad markets, though when we look back at the first two quarters of 2020 when the public markets were negative, we also saw Athene's alternative portfolio negatively marked.

And thank you.

I guess I wanted to go back to the retirement services and multi part question I mean first is.

What is the rationale for reporting.

On a normalized spread.

Turning to the income basis as opposed to.

Just letting the chips fall where they may.

And then secondly.

Yeah.

How should we think about the to go back to Robert's question.

The return of the <unk>.

We also saw athene alternatives portfolio.

Negatively marked so we have the situation where sometimes the returns are seem to be correlated.

Or at least related to the public market comps and other times, they're not so how should we think about the underlying returns of the all of the.

Marc Rowan: So this is Marc. Why don't I start, and then I'll hand it to Martin? And I hate to be somewhat financially oriented about this, but when Athene or any other retirement services company takes on a liability, it matches it with a portfolio of assets. 94%, 95% of those assets are fixed income, and 5%, 6% of those assets are alternatives in a nomenclature. We can debate whether they're actually alternative and which definition applies, but call them equity. As a quirk of accounting in the insurance industry, fixed income, certainly for regulatory purposes and otherwise, is generally held at market, excuse me, held at book, held at cost. And the reason for that is simple. Movements in interest rates really affect assets and liabilities almost equally.

Portfolio over time.

So this is mark why don't I start and then I'll hand, it to Martin.

And I hate to be somewhat financially oriented about this but.

When athene or any other retirement services company takes on a liability it matches it with a portfolio of assets, 94%, 95% of those assets are fixed income.

And for 56% of those assets are alternatives in our nomenclature, we can debate whether they are actually alternative.

And which definition applies but call them equity.

A quirk of accounting in the insurance industry.

Fixed income for certainly for regulatory purposes, and otherwise is generally held at market excuse me. It held at book held at cost.

And the reason for that is simple movements in interest rates.

Really affect assets and liabilities almost equally.

Marc Rowan: And while in some instances you end up showing the mark, the economics and the substance of the underlying is you're putting an asset and a liability matched onto a book over an 8, 10, 12, 15-year period. What happens in any one quarter is actually not really all that relevant. We record it because that's what GAAP asks us to do. Equity is marked on a quarterly basis. So we show you both. We show you what actually happened, and then we show you what we think of on a normalized basis, which is how we underwrite. To make our spreads work, we assume that we will earn 11% over a very long period of time from this portfolio, and we provide you the metrics to judge whether or not we, in fact, are earning 11% over a long period of time against this portfolio.

And while in some instances.

End up showing the mark.

The economics and the substance of the underlying is you're putting an asset and a liability matched onto a book over an 810 12 15 year period, what happens in any one quarter is actually not really all that relevant.

To make our spreads work, we assume that we will earn 11% over a very long period of time.

Marc Rowan: Truly, what happens on a quarterly basis is just not that relevant.

Glenn Schorr: I would only add that this is common practice in the retirement services business, and we're being pretty explicit in showing the math to get to a normalized metric. But as Mark said, we're showing both. And I think the chart on 16 is actually pretty instructive in the sense of it's not a volatile portfolio. Look at the Sharpe ratio and look at the deviation relative to the comps that we're showing. It really proves out that it's a very durable portfolio over time, thus supporting a durable spread-based earnings stream.

I would only add that this is this is common practice in the retirement services.

Business.

Bank pretty explicit and showing the math to get to a normalized metric but is.

<unk> said, we're showing we're showing both.

Thus.

<unk>, a durable spread based earnings.

Yes.

Noah Gunn: Thank you. Our next question comes from the line of Brian McKenna from JMP Securities. Your line is now open.

Thank you. Our next question comes from the line of Brian Mckenna from JMP Securities. Your line is now open.

Marc Rowan: Thanks. Most questions have been asked, but with respect to private equity fund nine, there's clearly been a lot of value created, and returns are impressive. But the fund is still only about 4 years old, so how should we think about the trajectory of realizations for this fund throughout the remainder of the year and into 2023? And then do you have any expectation around the mix of monetizations as it relates to public markets versus strategic sales?

Thanks, most questions have been asked but with respect to private equity fund nine.

[Company Representative] (Apollo Global Management): Yeah, sure. So as we look at, we are actively monetizing fund nine and funding, quite frankly. The Q2 monetizations, given some of the volatility, will probably look a lot like Q1. But based on some sale processes, some signed sale agreements, some signed dividend recap and distribution agreements, expect to see it stepping up in the back half of the year. And as these investments progress, 2023 and 2024 are the big harvest years for this fund. So that's what the timeline looks like. Obviously, as you get out into those years, market conditions will apply. Is it going to skew more towards public or private exits? But you can see by the returns, value is creating incredibly nicely in that portfolio. Again, not dependent on big multiple uplift, but on real earnings growth. So feel quite good about that over the next couple of years.

Yes, yes sure.

So as we look at we are actively monetizing fund nine and funding and quite frankly the.

Q2 monetization given some of the volatility.

We'll probably look a lot like Q1, but based on some.

Sale processes, some sign sale agreements signed.

Dividend recap and distribution agreements and expect to see it stepping up in the back half of the year.

And as these investments for grass 23, and 24 are the big harvest years for this fund so that's what the timeline looks like obviously.

As you get out into those years market conditions will apply is it going to skew more towards public or private exits but.

You can see by the returns value is creating incredibly nicely in that portfolio.

Again, not dependent on big multiple uplift, but on real earnings growth. So.

We feel quite good about that over the next couple of years.

Noah Gunn: Thank you. Our next question comes from the line of Adam Beatty from UBS. Your line is now open.

Thank you. Our next question comes from the line of Adam Beatty from UBS. Your line is now open.

Scott Kleinman: Hi, good morning. Thank you. I want to follow up on the portfolio companies. Appreciate Scott's comments earlier about inflation and the resiliency of the cash flow there. So just wanted to ask about the other piece of that, the rising rates, and how the portfolio companies are positioned. Some other firms have mentioned having rate hedges and other things in place at the portfolio company level. So any details you could provide there would be great. Thanks a lot.

Hi, good morning, Thank you.

One follow up on the portfolio of companies I appreciate Scott's comments earlier about inflation and the resiliency of the cash flow. There. So I just wanted to ask about the other pieces that the rising rates and how the portfolio of companies are positioned.

Some other firms have mentioned having rate hedges and other things in place at the portfolio company level.

So you could provide there would be great. Thanks, a lot.

[Company Representative] (Apollo Global Management): Yeah. Yeah. Look, interest rate and interest costs are just less relevant to our portfolio than to many of our peers. Remember, we created fund 9 at an average, even a multiple of about 6.5x, right? That's the leverage level for many of our peers. The average leverage level is somewhere a little under 4x. So rising rates are interesting, but they're not super impactful to the return performance of the portfolio. On average, we're about 50/50 fixed and floating across the portfolio. We're starting to move a little more fixed. But again, like I said, in the 5 things that our deal teams think about, interest rates are number 7. It's just not particularly relevant to the total returns.

Yes look.

Interest rate interest costs are just less relevant to our portfolio than to many of our peers remember we created fund nine at an average EBITDA multiple of about six five times right. That's.

The leverage level for many of our peers.

The average.

Our leverage level is somewhere a little under four times so.

Rising rates are interesting, but they're not super impactful to the return performance of the portfolio.

On average, we're about 50 50 fixed and floating across the portfolio.

Starting to move a little more a little more fixed but again like I said in the five.

The five things.

<unk>.

Our deal teams think about interest rates, our number seven it's just not particularly relevant.

So the total returns.

Noah Gunn: Thank you. Our next question comes from the line of Michael Cyprys from Morgan Stanley. Your line is now open.

Thank you. Our next question comes from the line of Michael <unk> from Morgan Stanley . Your line is now open.

Scott Kleinman: Hi. Thank you very much for taking the follow-up here. I just wanted to talk a little bit about your underwriting criteria in the current environment. You've obviously spoken a lot about how purchase price is always massive for you guys, but I'm just curious how you're flexing your underwriting criteria just in the current environment we're in. Thank you.

Alright. Thank you very much for taking the follow up here I. Just wanted wondering if you could talk a little bit about your underwriting criteria in the current environment, you've obviously spoken a lot about how pushes prices always market for you guys, but I'm just curious how how you're flexing your underwriting criteria just in the current environment. Thank you.

[Company Representative] (Apollo Global Management): Yeah. So look, that's been the topic of a lot of conversation over the last few months, quite frankly, not just in our equity portfolio, but across the entire platform. Back in March 2020, we did something. We created what we call the common lens, where we created a series of scenarios that we asked all our businesses, from our equity businesses, our hybrid businesses, our yield businesses, our retirement service platforms, to really model their businesses across these various scenarios so that we can start taking a collective look at the risk and opportunities in our business. We've, again, recently done so with some of the recent economic changes that we've all been talking about. That scenario does show, obviously, rising rates for sure, but then how does that end? What type of either economic slowdowns or actual recessions we're modeling in?

Yes, so look thats been the topic of a lot of conversation over the last few months.

Quite frankly, not just in our in our equity portfolio, but across the across.

Across the entire platform.

Back in March of 2020.

We did something we created what we call the common lens, where we created.

Collective look.

At the risk and opportunities in our business we.

We have again recently done so.

Yes.

With some of the recent economic changes that we've all been talking about.

And that scenario does.

Obviously rising rates for sure, but then how does that and what type of.

Either economic slowdowns or actual recessions were modeling in so.

[Company Representative] (Apollo Global Management): So the firm is looking at those scenarios and modeling on a very conservative footing when it comes to the course of 2022 and into 2023.

The firm is looking at those scenarios and modeling on a very conservative footing. When it comes to when it comes to the course of 'twenty two and into 'twenty three.

Noah Gunn: Thank you. Our next question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Thank you. Our next question comes from the line of Glenn Schorr from Evercore ISI. Your line is now open.

Scott Kleinman: Hi. Thank you. So look, I think you've had next to no credit losses, but it's been a great backdrop. But some people are nervous that higher rates and inflation bring recession or other credit issues. You can't do the whole balance sheet recap here, but you do a stress test for us every six months or so. Can you talk at a high level on the positioning of where you on the credit you own across the platform, where you're in the capital stack, how subordination helps, how floating rate helps, and just the overall message on why people maybe should be running to Apollo in this backdrop, not running away from Apollo in this backdrop?

Hi, Thank you.

So.

Look I think <unk> had next to no credit losses, but it's been a great backdrop, but some.

Some people are nervous that higher rates and inflation bring recession or other credit issues.

You can't do the whole balance sheet recap here, but you do have a stress test for US is every six months or so can you talk at a high level on the positioning of where are you on.

Marc Rowan: So Glenn, it's Mark. I'll start at a high level. First, I will tell you we intend to announce a day in the near future where we will do a complete balance sheet tutorial for people across Athene and the broader credit business so that those newer to the story can understand exactly how we proceed. We start with the notion that we generally want to be top of the capital structure and investment grade. When we started Athene back in 2008, 2009, it was relatively easy to source that in the marketplace. The markets were chaotic. Recall things like TALF and TARP and other nice initials. Very quickly, as the markets healed themselves, it became clear to us that we needed to be an originator of credit. We have referred to our business as fixed income replacement. We are generally a replacement for investment-grade fixed income.

So Glenn it's Mark I'll start at a high level first I will tell you we intend to announce today in the near future, where we will do a complete balance sheet tutorial.

For people across Athene in the broader credit business.

So that those new to the newer to the story can understand exactly how we proceed.

We start with the notion that.

We generally want to be top of the capital structure and investment grade.

When we started athene back in 2008 2009, it was relatively easy to source that in the marketplace and the markets were chaotic recall things like <unk> and tarpon and other nice initials very quickly as the market healed themselves. It became clear to us that we needed to be an originator of credit.

We have we have referred to our business as fixed income replacement we are generally.

A replacement for investment grade fixed income.

Marc Rowan: We are generally top of the capital structure. We are generally senior secured. We do not think a retirement services business or a fixed income replacement portfolio of an institution is a place to take credit risk for equity risk. The risk we seek to take is liquidity risk or structure risk. We can afford to be less liquid because our liabilities are less liquid and the liabilities of sovereign wealth funds, pension funds, and otherwise. And so I step back and I think about the marketplace today, and I look at the various alternatives and think about where I would want to be if I were negatively biased. I generally want to be in floating rate. Boy, we have a lot of that. I generally want to be top of the capital structure with good spread. We have a lot of that.

We are generally top of the capital structure, we are generally senior secured.

We can afford to be less liquid because our liabilities are less liquid and liabilities of sovereign wealth funds pension funds and otherwise.

So I step back and I think about the marketplace today.

And I look at the various alternatives and think about where I would want to be if I were negatively biased generally want to be in floating rate.

Although we have a lot of that.

Generally we want to be top of the capital structure with good spread we have a lot of that.

Marc Rowan: I would probably not want to be subordinated in fixed rate. That's not where we are. The business that we have built is a fixed income replacement business. That is not to say there are not other good businesses, but it is a very different business than our peer set, for better or worse. In some markets, peers may perform better. In a market like this, purchase price matters. Being the top of the capital structure matters. Being senior secured matters. And I think we will fare very well. The stress test, which, as you know, our industry does not publish. We run the Fed CCAR. We publish it. We run our risk appetite. We publish it. We run Lehman. We publish it. We will do our best to educate the investor universe that the risk we are taking is liquidity risk, structure risk, and not credit risk.

I would probably not want to be subordinated and fixed rate.

That's not where we are.

The business that we have built is a fixed income replacement business that is not to say there are not other good businesses, but it is a very different business.

Then our peer set.

For better or worse.

In some markets peers may perform better in a market like this.

Price matters being the top of the capital structure matters being senior secured matters.

And I think we will fare very well.

Stress tests, which as you know our industry does not publish we run the fed's CCAR, we publish it we run our risk appetite, we publish it we run Lehman we publish it.

We will do our best to educate the Investor Universe.

The risk, we are taking as liquidity risk and structure risk and not credit risks.

Noah Gunn: Thank you. We have reached our allotted time for Q&A. I will now turn the floor to Noah Gunn for any additional or closing remarks.

Thank you we have reached our allotted time for Q&A I will now turn the floor to nelligan for any additional or closing remarks.

Alexander Blostein: Thanks, everyone, for joining us this morning and for your continued interest in Apollo. Perhaps the operator can exit you from the call from the same way it began with some more entertaining hold music and memorializing this milestone quarter for us with some tracks from the Beatles and others. Thanks again for joining this morning.

Subtract from the Beatles and others. Thanks again for joining us this morning.

Noah Gunn: This concludes today's conference call. Thanks for participating. You may now disconnect.

This.

Today's conference call. Thank you for participating you may now disconnect.

Q1 2022 Apollo Global Management, Inc Earnings Call

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