Apollo Global said it was well positioned to capitalize on the growing demand for private investments after the alternative asset manager reported a 5% jump in first-quarter profit on Friday.
"I am very bullish on the demand for private assets and most days I wake up concerned more about the supply," CEO Marc Rowan said.
Investors seeking diversification beyond the traditional stocks and bonds have increasingly turned to private assets in the last few years.
Relatively insulated from volatility, these investments can offer a measure of stability during times of turbulence, such as the current stretch driven by U.S. President Donald Trump's tariffs.
Apollo has recently sought to expand its reach in this market. It debuted a private credit exchange-traded fund developed in partnership with State Street Global Advisors in February, giving retail investors access to a space traditionally dominated by institutions.
Globally, private assets under management are expected to grow to $24.1 trillion by 2029, from $18.7 trillion at the end of 2024, according to a report by PitchBook.
Fee strength
While market volatility can make it tougher for asset managers to exit investments, firms like Apollo earn millions in management fees from the portfolio of assets they manage, providing a key source of stability.
Advising and assisting companies with capital markets activities - such as raising debt and equity - can also yield significant fees.
Apollo's fee-related earnings rose 21% to a record $559 million. It took in $43 billion of inflows, helping assets under management grow 17% to $785 billion.
The company has set targets of managing $1 trillion by 2026 and $1.5 trillion by 2029.
However, spread-related earnings, which assess the performance of its retirement services unit, dipped 1.6% to $804 million.
Apollo's shares fell 1.4%. They have dropped 16.5% so far this year. Peers Blackstone and KKR have fallen 22.6% each, while Carlyle is down 22.4% in the same period.
But Apollo had $64 billion of unspent capital at the end of the quarter, which could position it to capitalize on the current uncertainty and snap up assets at a bargain.
Rowan said the company was poised to navigate the "volatility and dislocation" thanks to a robust pipeline and the capital it has available for investments.
Its adjusted net income was $1.12 billion or $1.82 per share for the three months ended March 31, compared with $1.06 billion or $1.72 per share a year earlier.
It also reported $56 billion in origination volume. The business is expected to be a core growth driver in the company's next phase.
