By Isla Binnie and Arasu Kannagi Basil
NEW YORK, Aug 4 (Reuters) - Apollo Global Management recorded a rise in fees from its lending and insurance businesses in the second quarter, but cashed in less on its own investments in a tougher environment for asset sales, the company said on Tuesday.
The New York-based company posted adjusted net income of $2.11 per share, 10% higher than the same period last year but below a $2.17 per share forecast based on an LSEG analyst poll.
Apollo started as a private
equity firm in 1990 and has since pushed hard into credit and insurance, helping swell its total assets under management to $1.05 trillion at end-June.
More stable income streams from arranging deals and investing insurance premiums surpassed expectations, Piper Sandler analysts said. But the headline figure was weighed down by principal investing income, which reflects profits from divestments.
The latter was "the most volatile line item on a quarterly basis", the analysts said.
Sales of assets from certain funds had been "prudently delayed", Apollo said, adding that some fees and income were lower "while market conditions are less accommodative for monetization activity".
Rising interest rates have in recent years weighed on private equity firms' traditional model of buying companies and selling them for a profit, although buyout pioneer KKR and the world's largest alternative asset manager Blackstone last month reported brisk quarters for sales and listings.
Apollo's fee-related earnings rose 25% to $785 million, while the spread earned on insurance assets rose 7% to $877 million. It said those metrics broke quarterly records, boosted by fees from offering direct loans and asset-backed finance.
Principal investing income dipped to $16 million from $75 million in the previous quarter and $47 million in the same period of 2025.
CEO Marc Rowan has pledged to increase transparency and liquidity for private assets as valuations have come under scrutiny, with funds struggling to sell equity stakes and investors worrying about lending standards outside traditional banks.
Wealthy individuals, who have been staging a retreat from private credit this year, pitched in $3 billion during the quarter, down from $4 billion in the previous three months.
Overall, Apollo's asset management arm brought in $38 billion in fresh capital.
The company said that was driven in part by multi-asset securitization strategies, which include new vehicles pulling together different types of debt. The firm is marketing those vehicles, dubbed AMAPS, as a replacement for collateralized loan obligations.
Credit products for institutional investors and its latest flagship private equity fund also attracted inflows.
(Reporting by Isla Binnie in New York and Arasu Kannagi Basil in Bengaluru; Editing by Devika Syamnath)
