Apollo's assets reach $1.07 trillion as demand for alternatives grows

what happened

According to Reuters, Apollo Global Management took in $53 billion of inflows in the third quarter, pushing its assets under management to $1.07 trillion. Fee-related earnings rose 23% to a record, helped by higher fee revenue and wider margins. AUM was up 18% from a year earlier, and adjusted net income excluding notable items came to $2.15 per share, against $2.14 a year earlier.

Gross capital deployment rose about 18% in the quarter, and origination reached $114 billion, up 52% from the year-ago period. On a GAAP basis, however, the company reported a $1.06 billion loss, driven by unrealized mark-to-market losses as interest rates stayed elevated. Apollo shares are down 17.5% so far in 2026.

Questions about liquidity and the pace of dealmaking remain. CEO Marc Rowan has pledged to improve transparency and liquidity for private assets, whose valuations have drawn growing scrutiny across the sector.

why it matters

The inflows suggest investors still look to private markets for higher returns, which supports fee income for managers. However, doubts about valuations and the earlier private credit selloff, tied to fund withdrawals, continue to weigh on sector stocks.

market impact

Apollo and alternative asset managers: fee growth supports, markdowns and private credit outflows weigh

• ↔Apollo shares mixed — record fees and capital inflows offset by a GAAP loss from mark-to-market losses
• ↔Alternative asset manager stocks mixed — the sector stays sensitive to private credit outflows and valuation doubts

tags

instruments