Investments (Tables)

6 Months Ended

Jun. 30, 2013

The following table represents Apollo’s investments:


	June 30, 2013		December 31, 2012
Investments, at fair value	$	1,736,703	$	1,744,412
Other investments		397,358		393,684

Total Investments	$	2,134,061	$	2,138,096

Investments, at Fair Value

The following investments, except the investment in HFA and Other Investments, are presented as a percentage of net assets of the consolidated funds:


	June 30, 2013											December 31, 2012
	Fair Value											Fair Value
Investments, at Fair Value – Affiliates	Private Equity		Credit		Total		Cost		% of Net Assets of Consolidated Funds			Private Equity		Credit		Total		Cost		% of Net Assets of Consolidated Funds
Investments held by:

AAA	$	1,659,093	$	—	$	1,659,093	$	1,498,965		98.6	%	$	1,666,448	$	—	$	1,666,448	$	1,561,154		98.5	%
Apollo Senior Loan Fund		—		27,218		27,218		27,131		1.6			—		27,653		27,653		27,296		1.5
HFA		—		48,658		48,658		59,472		N/A			—		48,723		48,723		57,815		N/A
Other Investments		1,734		—		1,734		3,272		N/A			1,588		—		1,588		3,563		N/A

Total	$	1,660,827	$	75,876	$	1,736,703	$	1,588,840		100.2	%	$	1,668,036	$	76,376	$	1,744,412	$	1,649,828		100.0	%

Investments of AAA (Excluding VIEs)

The following tables represent each investment of AAA Investments constituting more than five percent of the net assets of the funds that the Company consolidates (excluding VIEs) as of the aforementioned dates:


	June 30, 2013									December 31, 2012
	Instrument Type		Fair Value		Cost		% of Net Assets of Consolidated Funds			Instrument Type		Fair Value		Cost		% of Net Assets of Consolidated Funds
Athene Holding Ltd.⁽¹⁾		Equity	$	1,617,445	$	1,276,366		96.1	%		Equity	$	1,578,954	$	1,276,366		93.4	%

(1)	Two subsidiaries of AAA Investments, AAA Guarantor-Athene, L.P. and Apollo Life Re Ltd., own the majority of the equity of Athene Holding Ltd.

Net Gains from Investment Activities

The following tables present Apollo’s net gains (losses) from investment activities for the three and six months ended June 30, 2013 and 2012:


	For the Three Months Ended June 30, 2013
	Private Equity		Credit			Total
Realized gains on sales of investments	$	—	$	167		$	167
Change in net unrealized gains (losses) due to changes in fair values		7,064		(6,115	)		949

Net Gains (Losses) from Investment Activities	$	7,064	$	(5,948	)	$	1,116


	For the Three Months Ended June 30, 2012
	Private Equity			Credit			Total
Realized gains on sales of investments	$	—		$	45		$	45
Change in net unrealized losses due to changes in fair values		(15,149	)		(13,110	)		(28,259	)

Net Losses from Investment Activities	$	(15,149	)	$	(13,065	)	$	(28,214	)


	For the Six Months Ended June 30, 2013
	Private Equity		Credit			Total
Realized gains on sales of investments	$	—	$	408		$	408
Change in net unrealized gains (losses) due to changes in fair values		54,833		(1,992	)		52,841

Net Gains (losses) from Investment Activities	$	54,833	$	(1,584	)	$	53,249


	For the Six Months Ended June 30, 2012
	Private Equity		Credit			Total
Realized gains on sales of investments	$	—	$	136		$	136
Change in net unrealized gains (losses) due to changes in fair values		138,543		(9,185	)		129,358

Net Gains (Losses) from Investment Activities	$	138,543	$	(9,049	)	$	129,494

Income (Loss) from Equity Method Investments

The following table presents income (loss) from equity method investments for the three and six months ended June 30, 2013 and 2012:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
Investments:
Private Equity Funds:
AAA Investments	$	6		$	(1	)	$	33		$	83
Apollo Investment Fund IV, L.P. (“Fund IV”)		—			(2	)		—			(2	)
Apollo Investment Fund V, L.P. (“Fund V”)		(1	)		24			6			29
Apollo Investment Fund VI, L.P. (“Fund VI”)		(5	)		(64	)		1,073			2,548
Apollo Investment Fund VII, L.P. (“Fund VII”)		11,064			(858	)		31,477			23,223
Apollo Natural Resources Partners, L.P. (“ANRP”)		152			137			163			174
AION Capital Partners Limited (“AION”)		369			—			553			—
Apollo Asia Private Credit Fund, L.P. (“APC”)		2			—			3			—
Credit Funds:
Apollo Special Opportunities Managed Account, L.P. (“SOMA”)		30			(30	)		414			666
Apollo Value Investment Fund, L.P. (“VIF”)		(1	)		(4	)		6			15
Apollo Strategic Value Fund, L.P. (“SVF”)		(2	)		(3	)		1			12
Apollo Credit Liquidity Fund, L.P. (“ACLF”)		(36	)		78			668			1,966
Apollo/Artus Investors 2007-I, L.P. (“Artus”)		(2	)		(104	)		(2	)		291
Apollo Credit Opportunity Fund I, L.P. (“COF I”)		563			(1,851	)		4,137			7,168
Apollo Credit Opportunity Fund II, L.P. (“COF II”)		(304	)		522			584			2,955
Apollo Credit Opportunity Fund III, L.P. (“COF III”)		(11	)		—			(11	)		—
Apollo European Principal Finance Fund, L.P. (“EPF I”)		3,079			150			2,748			794
Apollo Investment Europe II, L.P. (“AIE II”)		349			(400	)		406			503
Apollo Palmetto Strategic Partnership, L.P. (“Palmetto”)		259			38			842			549
Apollo Senior Floating Rate Fund Inc. (“AFT”)		(3	)		1			5			11
Apollo Residential Mortgage, Inc. (“AMTG”)		22	⁽¹⁾		403	⁽²⁾		508	⁽¹⁾		555	⁽²⁾
Apollo European Credit, L.P. (“AEC”)		71			(8	)		147			27
Apollo European Strategic Investments, L.P. (“AESI”)		106			(31	)		258			162
Apollo Centre Street Partnership, L.P. (“ACSP”)		108			(67	)		289			(67	)
Apollo Investment Corporation (“AINV”)		2,037	⁽¹⁾		—			1,410			—
Apollo European Principal Finance Fund II, L.P. (“EPF II”)		23			316			86			316
Apollo SK Strategic Investments, L.P. (“SK”)		23			—			49			—
Apollo SPN Investments I, L.P.		501			—			88			—
Apollo Tactical Income Fund Inc. (“AIF”)		(10	)		—			(5	)		—
Apollo Franklin Partnership, L.P.		(7	)		—			(7	)		—
Real Estate:
Apollo Commercial Real Estate Finance, Inc. (“ARI”)		93	⁽¹⁾		268	⁽²⁾		316	⁽¹⁾		516	⁽²⁾
AGRE U.S. Real Estate Fund, L.P.		227			(33	)		241			(86	)
CPI Capital Partners North America LP		16			(10	)		74			(31	)
CPI Capital Partners Asia Pacific, L.P.		(6	)		32			(4	)		37
Apollo GSS Holding (Cayman), L.P.		(1	)		—			(5	)		—
BEA/AGRE China Real Estate Fund, L.P.		(8	)		—			(8	)		—
Other Equity Method Investments:
VC Holdings, L.P. Series A (“Vantium A/B”)		—			(1	)		13			(306	)
VC Holdings, L.P. Series C (“Vantium C”)		1,333			17			1,325			(133	)
VC Holdings, L.P. Series D (“Vantium D”)		46			190			(1	)		432
Other		8			452			—			5

Total Income (Loss) from Equity Method Investments	$	20,090		$	(839	)	$	47,880		$	42,412

(1)	Amounts are as of March 31, 2013.

(2)	Amounts are as of March 31, 2012.

Other Investments

Other investments as of June 30, 2013 and December 31, 2012 consisted of the following:


	Equity Held as of
	June 30, 2013			% of Ownership			December 31, 2012			% of Ownership
Investments:
Private Equity Funds:
AAA Investments	$	997			0.058	%	$	998			0.057	%
Fund IV		9			0.015			9			0.015
Fund V		113			0.017			173			0.014
Fund VI		8,746			0.094			9,814			0.094
Fund VII		158,104			1.280			164,773			1.316
ANRP		2,782			0.832			2,355			0.903
AION		1,178			10.000			625			10.000
APC		19			0.059			17			0.058
Credit Funds:
SOMA		6,298			0.826			5,887			0.643
VIF		148			0.105			141			0.093
SVF		23			0.078			137			0.076
ACLF		9,723			2.573			9,281			2.579
Artus		665			6.156			667			6.156
COF I		30,210			1.918			39,416			1.924
COF II		10,362			1.404			19,654			1.429
COF III		526			2.439			—			—
EPF I		21,520			1.363			18,329			1.363
AIE II		6,734			2.269			7,207			2.205
Palmetto		14,491			1.186			13,614			1.186
AFT		103			0.034			98			0.034
AMTG⁽³⁾		4,527	⁽¹⁾		0.623	⁽¹⁾		4,380	⁽²⁾		0.811	⁽²⁾
AEC		2,070			1.061			1,604			1.079
AESI		3,368			1.006			3,076			0.991
ACSP		7,484			2.456			5,327			2.457
AINV⁽⁴⁾		53,172	⁽¹⁾		3.095			51,761			2.955
EPF II		11,764			2.268			5,337			1.316
SK		1,449			0.992			1,002			0.988
Apollo SPN Investments I, L.P.		2,611			0.845			90			0.083
CION Investment Corporation		1,000			2.900			1,000			22.207
AIF		95			0.036			—			—
Apollo Franklin Partnership, L.P.		4,993			9.099			—			—
Real Estate:
ARI⁽³⁾		11,737	⁽¹⁾		1.500	⁽¹⁾		11,469	⁽²⁾		2.729	⁽²⁾
AGRE U.S. Real Estate Fund, L.P.		10,873			1.845			5,210			1.845
CPI Capital Partners North America		334			0.414			455			0.413
CPI Capital Partners Europe		5			0.001			5			0.001
CPI Capital Partners Asia Pacific		171			0.039			186			0.039
Apollo GSS Holding (Cayman), L.P.		3,013			4.946			2,428			4.621
BEA/AGRE China Real Estate Fund, L.P.		72			1.031			—
Other Equity Method Investments:
Vantium A/B		67			6.450			54			6.450
Vantium C		3,870			2.071			5,172			2.071
Vantium D		1,932			6.345			1,933			6.345

Total Other Investments	$	397,358					$	393,684

(1)	Amounts are as of March 31, 2013.

(2)	Amounts are as of September 30, 2012.

(3)	Investment value includes the fair value of RSUs granted to the Company as of the grant date. These amounts are not considered in the percentage of ownership until the RSUs are vested, at which point the RSUs are converted to common stock and delivered to the Company.

(4)	The value of the Company’s investment in AINV was $49,767 and $51,351 based on the quoted market price as of June 30, 2013 and December 31, 2012, respectively.

Summary of Investments in Fair Value Hierarchy Levels

The following table summarizes the valuation of Apollo’s investments in fair value hierarchy levels as of June 30, 2013 and December 31, 2012:


	Level I				Level II				Level III				Totals
	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Assets, at fair value:
Investment in AAA Investments	$	—	$	—	$	—	$	—	$	1,659,093	$	1,666,448	$	1,659,093	$	1,666,448
Investments held by Apollo Senior Loan Fund		—		—		26,781		27,063		437		590		27,218		27,653
Investments in HFA and Other		—		—		—		—		50,392		50,311		50,392		50,311

Total	$	—	$	—	$	26,781	$	27,063	$	1,709,922	$	1,717,349	$	1,736,703	$	1,744,412

Level III Investments

The following table summarizes a look-through of the Company’s Level III investments by valuation methodology of the underlying securities held by AAA Investments:


	Private Equity
	June 30, 2013						December 31, 2012
				% of Investment of AAA					% of Investment of AAA
Approximate values based on net asset value of the underlying funds, which are based on the funds underlying investments that are valued using the following:
Discounted cash flow models	$	1,617,445			97.1	%	$	1,581,975		98.6	%
Listed quotes		48,579			2.9			22,029		1.4

Total Investments		1,666,024			100	%		1,604,004		100	%

Other net (liabilities) assets⁽¹⁾		(6,931	)					62,444

Total Net Assets	$	1,659,093					$	1,666,448

(1)

Balances include other assets, liabilities and general partner interests of AAA Investments. Balance at June 30, 2013 and December 31, 2012 is primarily comprised of $51.3 million and $113.3 million in notes receivable from an affiliate, respectively, less the obligation to the general partner. Carrying values approximate fair value for other assets and liabilities and, accordingly, extended valuation procedures are not required.

HFA and Other Investments [Member]

Changes in Investments

The following table summarizes the changes in the investments in HFA and Other Investments, which are measured at fair value and characterized as Level III investments:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
Balance, Beginning of Period	$	55,407		$	52,571		$	50,311		$	47,757
Acquisition of consolidated fund		—			46,147			—			46,147
Purchases		833			2,809			2,268			3,959
Sale of Investments		—			—			(902	)		—
Change in unrealized losses, net		(5,848	)		(13,688	)		(1,285	)		(10,024	)

Balance, End of Period	$	50,392		$	87,839		$	50,392		$	87,839

AAA Investments [Member]

Changes in Investments

The following table summarizes the changes in AAA Investments, which are measured at fair value and characterized as Level III investments:


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2013		2012			2013			2012
Balance, Beginning of Period	$	1,652,029	$	1,581,773		$	1,666,448		$	1,480,152
Distributions		—		(49,724	)		(62,188	)		(101,795	)
Change in unrealized gains (losses), net		7,064		(15,150	)		54,833			138,542

Balance, End of Period	$	1,659,093	$	1,516,899		$	1,659,093		$	1,516,899

Senior Loan Fund [Member]

Changes in Investments

The following table summarizes the changes in the investments in the investments in the Apollo Senior Loan Fund, which are measured at fair value and characterized as Level III investments for the three and six months ended June 30, 2013 and 2012:


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2013		2012			2013			2012
Balance, Beginning of Period	$	—	$	484		$	590		$	456
Purchases of investments		—		—			22			—
Sale of investments		—		(2	)		—			(461	)
Realized gains		—		—			—			9
Change in unrealized gains (losses), net		—		(1	)		9			(6	)
Transfers into Level III		437		—			437			483
Transfers out of Level III		—		(481	)		(621	)		(481	)

Balance, End of Period	$	437	$	—		$	437		$	—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

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