Business Context and Reporting Period
Apollo Global Management, Inc. furnished an Item 7.01 Regulation FD disclosure on January 14, 2022. The filing announces an updated presentation of historical financial information following Apollo’s planned merger with Athene Holding Ltd. and the related changes to Apollo’s operating and reportable segments.
Financial Metrics and Reporting Changes
- Beginning with the quarter ending March 31, 2022, Apollo plans to report three operating and reportable segments: Asset Management, Retirement Services, and Principal Investing.
- The primary performance measures for those segments will be Fee Related Earnings (FRE), Spread Related Earnings (SRE), and Principal Investing Income (PII), respectively.
- Apollo has realigned its Asset Management strategies from Credit, Private Equity, and Real Assets into Yield, Hybrid, and Equity.
- The filing states that the segment changes will not affect U.S. GAAP financial results or the prior calculation of Distributable Earnings (DE).
- No specific revenue, profit, cash flow, margin, debt, liquidity, or other quantitative financial metrics are provided in the filing text.
Material Changes Versus the Prior Presentation
The updated presentation is intended to reflect Apollo’s post-Athene business structure and to better represent the range of investment capabilities based on relative risk and return. Apollo stated that historical information had been updated to reflect the revised segments.
Guidance, Outlook, Risks, and Unusual Items
- Apollo intends to use the revised financial information presentation for Non-GAAP results beginning in the first quarter of 2022.
- The filing does not provide earnings guidance, forecasts, contingency disclosures, or specific risk factors.
- The information was furnished under Regulation FD and is not deemed filed for purposes of Section 18 of the Exchange Act, except where expressly incorporated by reference.
Investor Verification Items
- Verify the updated presentation and historical segment information on Apollo’s Stockholders website.
- Assess how the revised segment definitions affect comparability of FRE, SRE, PII, and other Non-GAAP measures beginning in the quarter ending March 31, 2022.
- Confirm that U.S. GAAP results and Distributable Earnings calculations remain unchanged, as stated in the filing.
- Review subsequent quarterly filings for the implementation of the new reporting structure and any accompanying reconciliation disclosures.