Private Market Infrastructure and Market Structure Change
Q: Alex Blostein of Goldman Sachs asked if the ecosystem can evolve fast enough for Apollo to earn a return on its private market structure and platform investments.
A: Marc Rowan and James Zelter answered that products like AMAPS show immense demand, reaching $40 billion, proving that investors want liquid public structures backed by private credit.
Capital Solutions Fees and Origination Pipeline
Q: Steven Chubak of Wolfe Research asked about framing the Capital Solutions fee outlook and pipeline.
A: James Zelter answered that breadth across more than 100 transactions and diverse sectors provides robust durability and ongoing growth for the capital solutions business.
Retirement Services Spread and Deployment
Q: Glenn Schorr of Evercore asked about deployment timing, caution, and fourth-quarter SRE growth expectations at Athene.
A: Martin Kelly and Marc Rowan answered that late-in-quarter asset deployment in September will fully quarterize in the fourth quarter to support an expected SRE of approximately $1 billion.
Investment Spend and Margin Impact
Q: Bill Katz of TD Cowen asked if the $350 million investment spend signals a top-line expansion story at the expense of margins.
A: Marc Rowan and James Zelter answered that management expects to hold margins steady through operating leverage and increased capacity while opening up new revenue streams.
AI Financing and Credit Risk
Q: Michael Brown of UBS asked about the corporate solutions origination funnel in digital infrastructure and asset placement.
A: James Zelter and Marc Rowan answered that Apollo focuses on secure, fully amortizing, investment-grade guaranteed financing to maintain strict risk-reward discipline.
Q: Benjamin Budish of Barclays asked about broader category exposure limits to the AI industry and third-party insurance impacts.
A: James Zelter and Marc Rowan answered that total exposure remains around 2.5% to 3% and that focusing on secured structures reduces risk compared to unsecured public debt.
European Credit Platform Expansion
Q: Patrick Davitt of Autonomous Research asked how the new European credit platform impacts results and if it signals a ramp in high-grade private ABS allocations in Europe.
A: James Zelter answered that the platform brings a complete solution provider approach combining investment grade, asset-based, and direct lending, offering substantial upside.
Athene Liability Costs and Product Innovation
Q: Craig Siegenthaler of Bank of America asked how to think about Athene's liability costs and growth outside the U.S., U.K., and Japan.
A: Marc Rowan and Martin Kelly answered that rising liability costs reflect rising interest rates and that growth will come from product simplification and accessing new markets.
Q: Michael Cyprys of Morgan Stanley asked about product innovation opportunities for guaranteed retirement income over the next 5 to 10 years.
A: Marc Rowan and James Zelter answered that packaging insurance benefits with tax deferrals and guarantees into user-friendly solutions will drive future growth.
Q: Brennan Hawken of BMO Capital Markets asked how to treat the 2027 SRE growth base and philosophy around alternatives returns.
A: Marc Rowan and Martin Kelly answered that 2027 SRE growth of 10% is off the higher 2026 base and that alternatives continue to meet long-term expectations when balanced with originated credit outperformance.
Athene Actuarial Assumptions and Regulatory Outlook
Q: Kenneth Worthington of JPMorgan asked for details regarding the $65 million unfavorable actuarial review impact at Athene and the frequency of such reviews.
A: Marc Rowan and Martin Kelly answered that actuarial reviews occur annually in the third quarter, representing a minor adjustment on a nearly $400 billion balance sheet.
Q: Wilma Burdis of Raymond James asked what gives confidence in a favorable regulatory environment for annuity capital requirements.
A: Marc Rowan answered that recent NAIC memos address regulatory arbitrage and advocate for equal capital for equal risk across jurisdictions.
Private Asset Trading and Tokenization
Q: Brian Bedell of Deutsche Bank asked about daily pricing solving private credit liquidity, tokenization, and ACS fee contributions.
A: James Zelter answered that daily pricing and transparency will build investor confidence, though trading is not yet a massive contributor to ACS fees.
Strategic Investments and Guidance
Q: Bart Dziarski of RBC Capital Markets asked about the strategic investment benefits in Mubadala Capital (MCAM).
A: James Zelter answered that the investment builds on a decade-long partnership in the UAE and offers compelling economics and long-term collaboration.
Q: Dan Fannon of Jefferies asked for more details on the 2027 FRE and management fee guidance and ACS margins.
A: Martin Kelly answered that 20% plus FRE and 15% plus management fee growth includes the Fund X to XI transition, with credit weighted more heavily than equity.
Q: Crispin Love of Piper Sandler asked how to measure the success of the $350 million planned expense investment over the long term.
A: Marc Rowan answered that success will be measured by the creation of new businesses and above-average growth enabled by a modern services ecosystem.
