Apollo Global Management reported record fees from its lending and insurance businesses in the second quarter of 2026, though asset sales underperformed due to a tougher market environment, causing a decline in its stock price. The company's adjusted net income of $2.11 per share was 10% higher year-over-year but missed analyst forecasts of $2.17 per share. Shares dipped by about 1% on the day and were down around 11% for the year, consistent with other alternative asset managers.
Fee-related earnings saw a 25% increase to $785 million, and spread earnings rose 7% to $877 million, both setting new quarterly records. However, principal investing income, which reflects divestment profits and is highly volatile, was crimped because asset sales were "prudently delayed" due to unaccommodating market conditions. As a result, realized performance fees dropped 41% from the prior year to $130 million. This contrasts with peers like KKR and Blackstone, which reported strong quarters for sales and listings.
Despite the short-term monetization challenges, Apollo's President Jim Zelter expressed confidence in long-term monetization, noting the firm raised $12 billion for its latest flagship private equity fund through July. Apollo's total assets under management reached $1.05 trillion by the end of June. CEO Marc Rowan also pledged to enhance transparency and liquidity for private assets, aiming to offer daily pricing in funds by October to attract new customers, including retirement plans and individual investors. Apollo's asset management arm attracted $38 billion in fresh capital, driven partly by multi-asset securitization strategies and credit products for institutional investors.
