0001411494-17-000035.txt : 20170809 0001411494-17-000035.hdr.sgml : 20170809 20170808174326 ACCESSION NUMBER: 0001411494-17-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170808 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170809 DATE AS OF CHANGE: 20170808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Apollo Global Management LLC CENTRAL INDEX KEY: 0001411494 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] IRS NUMBER: 208880053 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35107 FILM NUMBER: 171015860 BUSINESS ADDRESS: STREET 1: 9 West 57th Str CITY: new York STATE: ny ZIP: 10019 BUSINESS PHONE: 212-515-3200 MAIL ADDRESS: STREET 1: 9 West 57th Str CITY: new York STATE: ny ZIP: 10019 8-K 1 agmdebt8-k2q17.htm 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
August 8, 2017
Date of Report (Date of earliest event reported)
 
 
Apollo Global Management, LLC
(Exact name of registrant as specified in its charter)
 
 
Delaware
 
001-35107
 
20-8880053
(State of Incorporation)
 
(Commission File Number)
 
(IRS Employer
 
 
 
 
Identification Number)
 
 
9 West 57th Street, 43rd Floor
 
 
 
 
New York, New York 10019
 
 
 
 
(Address of principal executive offices) (Zip Code)
 
 
 
(212) 515-3200
(Registrant's telephone number, including area code)
 
N/A
(Former Name or Former Address, if Changed Since Last Report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




Item 7.01     Regulation FD Disclosure.

On August 8, 2017, Apollo Global Management, LLC (the “Company”) filed its quarterly report on Form 10-Q as of and for the three and six month period ended June 30, 2017. Pursuant to that certain indenture, dated as of May 30, 2014, as supplemented, among Apollo Management Holdings, L.P. (“AMH”), the guarantors party thereto (collectively with AMH, the “Credit Parties”) and Wells Fargo Bank, National Association, as trustee, attached as Exhibit 99.1 is a copy of the unaudited reconciliation indicating the differences between the financial information of the Company and the financial information of the Credit Parties and their subsidiaries on a combined and consolidated basis, taken as a whole.

The information included in this Current Report on Form 8-K (including the exhibit hereto) is being furnished under Item 7.01, “Regulation FD Disclosure” and Item 9.01 “Financial Statements and Exhibits” of Form 8-K. As such, the information (including the exhibit) herein shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.



Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.
Description
99.1
Unaudited reconciliation of financial data.







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
APOLLO GLOBAL MANAGEMENT, LLC
Date: August 8, 2017
By:
/s/ Martin Kelly
 
 
Martin Kelly
 
 
Chief Financial Officer





EXHIBIT INDEX

Exhibit No.
Description
Exhibit 99.1
Unaudited reconciliation of financial data.




 EX-99.1 2 agmdebt8-k2q17exhibit991.htm EXHIBIT 99.1 Exhibit


EXHIBIT 99.1

UNAUDITED RECONCILIATION OF FINANCIAL DATA

The following tables present the historical unaudited financial information for the Apollo Operating Group as of and for the three and six months ended June 30, 2017. The Apollo Operating Group does not report audited or unaudited financial information on a stand-alone basis. Accordingly, the financial data presented herein for the Apollo Operating Group has been reconciled to Apollo Global Management, LLC’s financial statements for the relevant periods.
 
As of June 30, 2017
 
Total Apollo Operating Group Consolidated
 
VIE & Consolidated Funds
 
Other (1)
 
Total Apollo Global Management, LLC Consolidated
Statement of Financial Data
(dollars in thousands)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,066,200

 
$
—

 
$
4,605

 
$
1,070,805

Cash and cash equivalents held at consolidated funds
—

 
9,672

 
—

 
9,672

Restricted cash
5,023

 
—

 
—

 
5,023

Investments
1,655,812

 
2,124

 
(81,097
)
 
1,576,839

Assets of consolidated variable interest entities:
 
 
 
 
 
 
 
Cash and cash equivalents
—

 
44,726

 
—

 
44,726

Investments, at fair value
—

 
1,049,836

 
(307
)
 
1,049,529

Other assets
—

 
55,810

 
—

 
55,810

Carried interest receivable
1,272,488

 
—

 
(2,177
)
 
1,270,311

Due from related parties
559,805

 
—

 
(277,303
)
 
282,502

Deferred tax assets
8,745

 
—

 
589,652

 
598,397

Other assets
149,270

 
433

 
(3
)
 
149,700

Goodwill
88,852

 
—

 
—

 
88,852

Intangible assets, net
19,754

 
—

 
—

 
19,754

Total Assets
$
4,825,949

 
$
1,162,601

 
$
233,370

 
$
6,221,920

 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Accounts payable and accrued expenses
$
60,089

 
$
—

 
$
5

 
$
60,094

Accrued compensation and benefits
97,515

 
—

 
—

 
97,515

Deferred revenue
116,095

 
—

 
—

 
116,095

Due to related parties
94,287

 
—

 
518,485

 
612,772

Profit sharing payable
581,854

 
—

 
—

 
581,854

Debt
1,358,444

 
—

 
—

 
1,358,444

Liabilities of consolidated variable interest entities:
 
 
 
 
 
 
 
Debt, at fair value
—

 
929,658

 
(44,897
)
 
884,761

Other liabilities
—

 
61,877

 
(110
)
 
61,767

Due to related parties
—

 
2,904

 
(2,904
)
 
—

Other liabilities
94,658

 
772

 
—

 
95,430

Total Liabilities
2,402,942

 
995,211

 
470,579

 
3,868,732

 
 
 
 
 
 
 
 
Shareholders’ Equity:
 
 
 
 
 
 
 
Apollo Global Management, LLC shareholders' equity:
 
 
 
 
 
 
 
Preferred shares (11,000,000 units issued and outstanding as of June 30, 2017)
264,398

 
—

 
—

 
264,398

Additional paid in capital
—

 
—

 
1,716,138

 
1,716,138

Accumulated deficit
1,161,795

 
16,626

 
(1,933,886
)
 
(755,465
)
Accumulated other comprehensive loss
(3,621
)
 
(1,399
)
 
1,998

 
(3,022
)
Total Apollo Global Management, LLC shareholders’ equity
1,422,572

 
15,227

 
(215,750
)
 
1,222,049

Non-Controlling Interests in consolidated entities
6,576

 
152,163

 
(21,459
)
 
137,280

Non-Controlling Interests in Apollo Operating Group
993,859

 
—

 
—

 
993,859

Total Shareholders’ Equity
2,423,007

 
167,390

 
(237,209
)
 
2,353,188

Total Liabilities and Shareholders’ Equity
$
4,825,949

 
$
1,162,601

 
$
233,370

 
$
6,221,920


(1) Includes eliminations for VIE and Fund consolidation and entities not included in the Apollo Operating Group.








 
For the Six Months Ended June 30, 2017
 
Total Apollo Operating Group Consolidated
 
VIE & Consolidated Funds
 
Other (1)
 
Total Apollo Global Management, LLC Consolidated
Statement of Operating Data
(dollars in thousands)
Revenues:
 
 
 
 
 
 
 
      Management fees from related parties
$
552,363

 
$
—

 
$
(1,515
)
 
$
550,848

      Advisory and transaction fees from related parties, net
38,696

 
—

 
—

 
38,696

      Carried interest income from related parties
487,271

 
—

 
(392
)
 
486,879

Total Revenues
1,078,330

 
—

 
(1,907
)
 
1,076,423

 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
Compensation and benefits:
 
 
 
 
 
 
 
Salary, bonus and benefits
207,158

 
—

 
—

 
207,158

Equity-based compensation
45,847

 
—

 
—

 
45,847

Profit sharing expense
202,383

 
—

 
—

 
202,383

Total Compensation and Benefits
455,388

 
—

 
—

 
455,388

Interest expense
26,194

 
—

 
—

 
26,194

General, administrative and other
121,762

 
5

 
2

 
121,769

Placement fees
7,163

 
—

 
—

 
7,163

Total Expenses
610,507

 
5

 
2

 
610,514

 
 
 
 
 
 
 
 
Other Income:
 
 
 
 
 
 
 
      Net gains (losses) from investment activities
34,091

 
(87
)
 
—

 
34,004

      Net gains from investment activities of consolidated variable interest entities
—

 
7,621

 
2,619

 
10,240

      Income from equity method investments
56,566

 
—

 
(1,177
)
 
55,389

      Interest income
2,184

 
(47
)
 
(712
)
 
1,425

      Other income, net
19,401

 
—

 
(12
)
 
19,389

Total Other Income
112,242

 
7,487

 
718

 
120,447

      Income before income tax (provision) benefit
580,065

 
7,482

 
(1,191
)
 
586,356

      Income tax provision
(4,419
)
 
—

 
(33,965
)
 
(38,384
)
Net Income
575,646

 
7,482

 
(35,156
)
 
547,972

      Net income attributable to Non-controlling Interests
(304,803
)
 
(6,293
)
 
—

 
(311,096
)
Net Income Attributable to Apollo Global Management, LLC
270,843

 
1,189

 
(35,156
)
 
236,876

      Net income attributable to Preferred Shareholders
(4,772
)
 
—

 
—

 
(4,772
)
Net Income Attributable to Apollo Global Management, LLC Class A Shareholders
$
266,071

 
$
1,189

 
$
(35,156
)
 
$
232,104


(1) Includes eliminations for VIE and Fund consolidation and entities not included in the Apollo Operating Group.





 
For the Three Months Ended June 30, 2017
 
Total Apollo Operating Group Consolidated
 
VIE & Consolidated Funds
 
Other (1)
 
Total Apollo Global Management, LLC Consolidated
Statement of Operating Data
(dollars in thousands)
Revenues:
 
 
 
 
 
 
 
      Management fees from related parties
$
282,087

 
$
—

 
$
(782
)
 
$
281,305

      Advisory and transaction fees from related parties, net
23,629

 
—

 
—

 
23,629

      Carried interest income from related parties
128,265

 
—

 
(327
)
 
127,938

Total Revenues
433,981

 
—

 
(1,109
)
 
432,872

 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
      Compensation and benefits:
 
 
 
 
 
 
 
    Salary, bonus and benefits
105,545

 
—

 
—

 
105,545

    Equity-based compensation
22,740

 
—

 
—

 
22,740

    Profit sharing expense
58,059

 
—

 
—

 
58,059

                           Total Compensation and Benefits
186,344

 
—

 
—

 
186,344

      Interest expense
13,195

 
—

 
—

 
13,195

      General, administrative and other
59,724

 
5

 
—

 
59,729

      Placement fees
5,258

 
—

 
—

 
5,258

Total Expenses
264,521

 
5

 
—

 
264,526

 
 
 
 
 
 
 
 
Other Income:
 
 
 
 
 
 
 
      Net loss from investment activities
(399
)
 
(114
)
 
—

 
(513
)
      Net gains from investment activities of consolidated variable interest entities
—

 
4,554

 
1,578

 
6,132

      Income from equity method investments
17,418

 
—

 
(582
)
 
16,836

      Interest income
1,153

 
(63
)
 
(468
)
 
622

      Other income, net
756

 
—

 
(14
)
 
742

Total Other Income
18,928

 
4,377

 
514

 
23,819

      Income before income tax (provision) benefit
188,388

 
4,372

 
(595
)
 
192,165

      Income tax (provision) benefit
976

 
—

 
(199
)
 
777

Net Income
189,364

 
4,372

 
(794
)
 
192,942

      Net income attributable to Non-controlling Interests
(97,487
)
 
(3,775
)
 
—

 
(101,262
)
Net Income Attributable to Apollo Global Management, LLC
91,877

 
597

 
(794
)
 
91,680

      Net income attributable to Preferred Shareholders
(4,772
)
 
—

 
—

 
(4,772
)
Net Income Attributable to Apollo Global Management, LLC Class A Shareholders
$
87,105

 
$
597

 
$
(794
)
 
$
86,908


(1) Includes eliminations for VIE and Fund consolidation and entities not included in the Apollo Operating Group.