Apollo Projects Annual Profits of $10 Billion Within Five Years – BNN Bloomberg

(Bloomberg) — Apollo Global Management Inc. expects to generate $10 billion in annual profits by 2029 in its asset management and pensions business, driven by investor demand for private credit and annuities.

Fee earnings are projected to grow an average of 20% annually over the next five years, while profits at Athene’s insurance unit are expected to grow 10%, Apollo said Tuesday in a presentation to investors.

The company expects adjusted net income of $15 per share over five years, and annual initial issuance volume is expected to grow to at least $275 billion, up from $164 billion in the 12 months ended June 30.

Apollo projects assets under management to grow to $1.5 trillion by 2029 and remains on track to reach its previous goal of $1 trillion by 2026. As of June 30, the company had $696 billion under management.

The alternative asset management firm was founded in 1990 as a private equity firm and over the years has expanded into lending, insurance, capital solutions and wealth management services. CEO Marc Rowan identified origination – the activity of structuring private credit investments for sale to Athene and other investors – as the company’s most important growth driver. Apollo has approximately 4,000 employees across 16 initial companies, which include MidCap Financial and Atlas SP.

The company expects to raise at least $150 billion for its global wealth business by 2029. He sees a $150 trillion market opportunity in individual investors, about 50% of which comes from family offices and 2% from high-net-worth individuals.

According to New York-based Apollo’s goals, annual capital inflows into the company will exceed $150 billion within five years.