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SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Financial Data for Reportable Segments

The following tables present financial data for Apollo’s reportable segments.


	As of and for the Three Months Ended September 30, 2020
	Credit Segment		Private Equity Segment		Real Assets Segment		Total Reportable Segments
Management fees	$	246,159	$	128,446	$	51,847	426,452
Advisory and transaction fees, net	51,376		20,108		878		72,362
Performance fees(1)	2,204		—		—		2,204
Fee Related Revenues	299,739		148,554		52,725		501,018
Salary, bonus and benefits	(61,975)		(53,451)		(29,513)		(144,939)
General, administrative and other	(40,367)		(25,099)		(11,869)		(77,335)
Placement fees	(425)		(188)		—		(613)
Fee Related Expenses	(102,767)		(78,738)		(41,382)		(222,887)
Other income (loss), net of Non-Controlling Interest	(780)		23		59		(698)
Fee Related Earnings	196,192		69,839		11,402		277,433
Realized performance fees	7,614		2,025		7,806		17,445
Realized profit sharing expense	(7,614)		(2,025)		(7,806)		(17,445)
Net Realized Performance Fees	—		—		—		—
Realized principal investment income, net(2)	928		1,598		356		2,882
Net interest loss and other	(14,010)		(14,580)		(6,216)		(34,806)
Segment Distributable Earnings(3)	$	183,110	$	56,857	$	5,542	$	245,509
Total Assets(3)	$	4,314,160	$	2,873,066	$	833,780	$	8,021,006

(1)Represents certain performance fees related to business development companies, Redding Ridge Holdings and MidCap.

(2)Realized principal investment income, net includes dividends from our permanent capital vehicles, net of such amounts used to compensate employees.

(3)Refer below for a reconciliation of total revenues, total expenses, other loss and total assets for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses, total consolidated other income (loss) and total assets.


	For the Three Months Ended September 30, 2019
	Credit Segment		Private Equity Segment		Real Assets Segment		Total Reportable Segments
Management fees	$	198,867	$	131,643	$	47,862	$	378,372
Advisory and transaction fees, net	5,530		10,655		377		16,562
Performance fees(1)	6,449		—		—		6,449
Fee Related Revenues	210,846		142,298		48,239		401,383
Salary, bonus and benefits	(51,746)		(45,807)		(19,306)		(116,859)
General, administrative and other	(33,403)		(26,603)		(10,734)		(70,740)
Placement fees	(190)		(65)		(1)		(256)
Fee Related Expenses	(85,339)		(72,475)		(30,041)		(187,855)
Other loss, net of Non-Controlling Interest	(597)		(135)		(6)		(738)
Fee Related Earnings	124,910		69,688		18,192		212,790
Realized performance fees	3,530		63,742		162		67,434
Realized profit sharing expense	(1,674)		(22,084)		(65)		(23,823)
Net Realized Performance Fees	1,856		41,658		97		43,611
Realized principal investment income, net(2)	5,845		8,114		415		14,374
Net interest loss and other	(6,106)		(8,911)		(3,234)		(18,251)
Segment Distributable Earnings (3)	$	126,505	$	110,549	$	15,470	$	252,524

(1)Represents certain performance fees related to business development companies, Redding Ridge Holdings and MidCap.

(2)Realized principal investment income, net includes dividends from our permanent capital vehicles, net of such amounts used to compensate employees.

(3)Refer below for a reconciliation of total revenues, total expenses and other income (loss) for Apollo’s total reportable segments to total consolidated revenues, total consolidated expenses and total consolidated other income (loss) and total assets.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table reconciles total consolidated revenues to total revenues for Apollo’s reportable segments:


	For the Three Months Ended September 30,
	2020		2019
Total Consolidated Revenues	$	1,018,274	$	702,721
Equity awards granted by unconsolidated related parties, reimbursable expenses and other(1)	(27,479)		(19,990)
Adjustments related to consolidated funds and VIEs(1)	22,084		4,079
Performance fees(2)	(457,754)		(250,642)
Principal investment income	(54,107)		(34,785)
Total Fee Related Revenues	501,018		401,383
Realized performance fees	17,445		67,434
Realized principal investment income, net and other	1,198		13,532
Total Segment Revenues	$	519,661	$	482,349

(1)Represents advisory fees, management fees and performance fees earned from consolidated VIEs which are eliminated in consolidation. Includes non-cash revenues related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative related expense reimbursements.

(2)Excludes certain performance fees related to business development companies, Redding Ridge Holdings and MidCap.

The following table reconciles total consolidated expenses to total expenses for Apollo’s reportable segments:


	For the Three Months Ended September 30,
	2020		2019
Total Consolidated Expenses	$	531,055	$	371,372
Equity awards granted by unconsolidated related parties, reimbursable expenses and other(1)	(26,339)		(20,563)
Reclassification of interest expenses	(34,889)		(27,833)
Transaction-related charges, net(1)	(10,835)		(5,201)
Charges associated with corporate conversion(2)	(2,829)		(6,994)
Equity-based compensation	(17,962)		(15,802)
Total profit sharing expense(3)	(213,494)		(107,124)
Dividend-related compensation expense	(1,820)		—
Total Fee Related Expenses	222,887		187,855
Realized profit sharing expense	17,445		23,823
Total Segment Expenses	$	240,332	$	211,678

(1)Represents the addition of expenses of consolidated funds and VIEs, transaction-related charges, non-cash expenses related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative expenses. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions, and restructuring charges.

(2)Represents expenses incurred in relation to the Conversion, as described in note 1.

(3)Includes unrealized profit sharing expense, realized profit sharing expense and equity based profit sharing expense and other.

The following table reconciles total consolidated other income (loss) to total other loss for Apollo’s reportable segments:


	For the Three Months Ended September 30,
	2020		2019
Total Consolidated Other Income (Loss)	$	278,237	$	(42,151)
Adjustments related to consolidated funds and VIEs(1)	(121,425)		(10,338)
Loss from change in tax receivable agreement liability	—		38,575
Net (gains) losses from investment activities	(144,839)		19,783
Interest income and other, net of Non-Controlling Interest	(12,671)		(6,607)
Other Loss, net of Non-Controlling Interest	(698)		(738)
Net interest loss and other	(33,122)		(17,409)
Total Segment Other Loss	$	(33,820)	$	(18,147)

(1)Represents the addition of other income of consolidated funds and VIEs.

The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Segment Distributable Earnings:


	For the Three Months Ended September 30,
	2020		2019
Income before income tax provision	$	765,456	$	289,198
Transaction-related charges(1)	10,835		5,201
Charges associated with corporate conversion(2)	2,829		6,994
Loss from change in tax receivable agreement liability	—		38,575
Net income attributable to Non-Controlling Interests in consolidated entities	(100,021)		(7,083)
Unrealized performance fees	(440,310)		(183,208)
Unrealized profit sharing expense	168,368		61,098
Equity-based profit sharing expense and other(3)	27,681		22,203
Equity-based compensation	17,962		15,802
Unrealized principal investment income	(49,406)		(20,411)
Unrealized net (gains) losses from investment activities and other	(157,885)		24,155
Segment Distributable Earnings	$	245,509	$	252,524

(1) Transaction-related charges include equity-based compensation charges, the amortization of intangible assets, contingent consideration and certain other charges associated with acquisitions, and restructuring charges.

(2) Represents expenses incurred in relation to the Conversion, as described in note 1.

(3) Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are allocated by issuance of equity-based awards, rather than cash, to employees of Apollo. Equity-based profit sharing expense and other also includes non-cash expenses related to equity awards granted by unconsolidated related parties to employees of Apollo.

Reconciliation of Assets from Segment to Consolidated


	As of and for the Nine Months Ended September 30, 2020
	Credit Segment		Private Equity Segment		Real Assets Segment		Total Reportable Segments
Management fees	$	679,109	$	381,306	$	150,227	1,210,642
Advisory and transaction fees, net	80,399		85,253		5,191		170,843
Performance fees(1)	8,048		—		—		8,048
Fee Related Revenues	767,556		466,559		155,418		1,389,533
Salary, bonus and benefits	(171,789)		(149,133)		(83,037)		(403,959)
General, administrative and other	(112,991)		(68,863)		(35,637)		(217,491)
Placement fees	(1,089)		(295)		—		(1,384)
Fee Related Expenses	(285,869)		(218,291)		(118,674)		(622,834)
Other income (loss), net of Non-Controlling Interest	(2,167)		48		154		(1,965)
Fee Related Earnings	479,520		248,316		36,898		764,734
Realized performance fees	37,834		6,717		49,477		94,028
Realized profit sharing expense	(37,530)		(7,021)		(49,477)		(94,028)
Net Realized Performance Fees	304		(304)		—		—
Realized principal investment income, net(2)	4,112		5,544		4,028		13,684
Net interest loss and other	(42,981)		(41,940)		(16,069)		(100,990)
Segment Distributable Earnings(3)	$	440,955	$	211,616	$	24,857	$	677,428
Total Assets(3)	$	4,314,160	$	2,873,066	$	833,780	$	8,021,006

(1)Represents certain performance fees related to business development companies, Redding Ridge Holdings and MidCap.

(2)Realized principal investment income, net includes dividends from our permanent capital vehicles, net of such amounts used to compensate employees.


	For the Nine Months Ended September 30, 2019
	Credit Segment		Private Equity Segment		Real Assets Segment		Total Reportable Segments
Management fees	$	571,884	$	391,777	$	139,645	$	1,103,306
Advisory and transaction fees, net	13,888		47,048		5,748		66,684
Performance fees(1)	16,371		—		—		16,371
Fee Related Revenues	602,143		438,825		145,393		1,186,361
Salary, bonus and benefits	(146,515)		(129,307)		(57,031)		(332,853)
General, administrative and other	(92,546)		(75,427)		(28,956)		(196,929)
Placement fees	(42)		(548)		(1)		(591)
Fee Related Expenses	(239,103)		(205,282)		(85,988)		(530,373)
Other income, net of Non-Controlling Interest	967		4,024		88		5,079
Fee Related Earnings	364,007		237,567		59,493		661,067
Realized performance fees	24,887		136,429		3,242		164,558
Realized profit sharing expense	(13,069)		(63,900)		(1,299)		(78,268)
Net Realized Performance Fees	11,818		72,529		1,943		86,290
Realized principal investment income, net(2)	16,803		18,079		2,209		37,091
Net interest loss and other	(15,148)		(22,694)		(8,115)		(45,957)
Segment Distributable Earnings(3)	$	377,480	$	305,481	$	55,530	$	738,491

(1)Represents certain performance fees related to business development companies, Redding Ridge Holdings and MidCap.

(2)Realized principal investment income, net includes dividends from our permanent capital vehicles, net of such amounts used to compensate employees.

The following table reconciles total consolidated revenues to total revenues for Apollo’s reportable segments:


	For the Nine Months Ended September 30,
	2020		2019
Total Consolidated Revenues	$	1,057,523	$	2,017,077
Equity awards granted by unconsolidated related parties, reimbursable expenses and other(1)	(88,167)		(72,966)
Adjustments related to consolidated funds and VIEs(1)	36,798		5,801
Performance fees(2)	358,188		(661,828)
Principal investment (income) loss	25,191		(101,723)
Total Fee Related Revenues	1,389,533		1,186,361
Realized performance fees	94,028		164,558
Realized principal investment income, net and other	10,315		34,564
Total Segment Revenues	$	1,493,876	$	1,385,483

(2)Excludes certain performance fees related to business development companies, Redding Ridge Holdings and MidCap.

The following table reconciles total consolidated expenses to total expenses for Apollo’s reportable segments:


	For the Nine Months Ended September 30,
	2020		2019
Total Consolidated Expenses	$	905,398	$	1,091,914
Equity awards granted by unconsolidated related parties, reimbursable expenses and other(1)	(80,212)		(73,270)
Reclassification of interest expenses	(98,422)		(70,243)
Transaction-related charges, net(1)	(21,546)		(28,799)
Charges associated with corporate conversion(2)	(3,893)		(17,000)
Equity-based compensation	(49,779)		(52,462)
Total profit sharing expense(3)	(22,532)		(319,767)
Dividend-related compensation expense	(6,180)		—
Total Fee Related Expenses	622,834		530,373
Realized profit sharing expense	94,028		78,268
Total Segment Expenses	$	716,862	$	608,641

(2)Represents expenses incurred in relation to the Conversion, as described in note 1.

(3)Includes unrealized profit sharing expense, realized profit sharing expense and equity based profit sharing expense and other.

The following table reconciles total consolidated other income (loss) to total other loss for Apollo’s reportable segments:


	For the Nine Months Ended September 30,
	2020		2019
Total Consolidated Other Income (Loss)	$	(826,957)	$	58,314
Adjustments related to consolidated funds and VIEs(1)	(11,157)		(23,839)
Loss from change in tax receivable agreement liability	—		38,575
Net (gains) losses from investment activities	849,293		(44,095)
Interest income and other, net of Non-Controlling Interest	(13,144)		(23,876)
Other Income (Loss), net of Non-Controlling Interest	(1,965)		5,079
Net interest loss and other	(97,621)		(43,430)
Total Segment Other Loss	$	(99,586)	$	(38,351)

(1)Represents the addition of other income of consolidated funds and VIEs.

The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Segment Distributable Earnings:


	For the Nine Months Ended September 30,
	2020		2019
Income (Loss) before income tax (provision) benefit	$	(674,832)	$	983,477
Transaction-related charges(1)	21,546		28,799
Charges associated with corporate conversion(2)	3,893		17,000
Loss from change in tax receivable agreement liability	—		38,575
Net (income) loss attributable to Non-Controlling Interests in consolidated entities	23,320		(20,888)
Unrealized performance fees	452,215		(497,270)
Unrealized profit sharing expense	(172,128)		177,659
Equity-based profit sharing expense and other(3)	100,632		63,840
Equity-based compensation	49,779		52,462
Unrealized principal investment (income) loss	45,054		(64,632)
Unrealized net (gains) losses from investment activities and other	827,949		(40,531)
Segment Distributable Earnings	$	677,428	$	738,491

(2) Represents expenses incurred in relation to the Conversion, as described in note 1.

The following table presents the reconciliation of Apollo’s total reportable segment assets to total assets:


	As of September 30, 2020		As of December 31, 2019
Total reportable segment assets	$	8,021,006	$	7,337,517
Adjustments(1)	10,606,864		1,204,600
Total assets	$	18,627,870	$	8,542,117

(1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments