10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q  

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022 OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                      TO                     

Commission File Number: 001-35107

APOLLO ASSET MANAGEMENT, INC.

(Exact name of Registrant as specified in its charter) 

Delaware	20-8880053
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9 West 57th Street, 42nd Floor

New York, New York 10019

(Address of principal executive offices) (Zip Code)

(212) 515-3200

(Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒   No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
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.
			☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐   No ☒

 Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
6.375% Series A Preferred Stock	AAM.PR A	New York Stock Exchange
6.375% Series B Preferred Stock	AAM.PR B	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

As of November 7, 2022, there were 1,000 shares of common stock of the Registrant outstanding.

Table of Contents

	TABLE OF CONTENTS
		Page
PART I	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	9
	Unaudited Condensed Consolidated Financial Statements
	Condensed Consolidated Statements of Financial Condition (Unaudited) as of September 30, 2022 and December 31, 2021	10
	Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2022 and 2021	12
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2022 and 2021	13
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Three and Nine Months Ended September 30, 2022 and 2021	14
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2022 and 2021	16
	Notes to Condensed Consolidated Financial Statements (Unaudited)	18
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	61
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	89
ITEM 4.	CONTROLS AND PROCEDURES	89
PART II	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	90
ITEM 1A.	RISK FACTORS	90
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	91
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	91
ITEM 4.	MINE SAFETY DISCLOSURES	91
ITEM 5.	OTHER INFORMATION	91
ITEM 6.	EXHIBITS	92
SIGNATURES

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Forward-Looking Statements

This quarterly report may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include, but are not limited to, discussions related to Apollo’s expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this quarterly report, the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “target” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to the impact of COVID-19, the impact of energy market dislocation, inflation, market conditions, and interest rate fluctuations, generally, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, our dependence on certain key personnel, the accuracy of management’s assumptions and estimates, our use of leverage to finance our businesses and investments by the funds we manage, changes in our regulatory environment and tax status, litigation risks and our ability to recognize the benefits expected to be derived from the merger with Athene Holding Ltd. (“Athene”), among others. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in the Company’s annual report on Form 10-K filed with the United States Securities and Exchange Commission (“SEC”) on February 25, 2022 (the “2021 Annual Report”) and “Item 1A. Risk Factors” in this quarterly report, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and in our other filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Terms Used in This Report

On January 1, 2022, Apollo Global Management, Inc. completed the previously announced merger transactions with Athene (the “Mergers”). Upon the closing of the Mergers, Apollo Global Management, Inc. was renamed Apollo Asset Management, Inc. (“AAM”) and became a subsidiary of Tango Holdings, Inc., and Tango Holdings, Inc. was renamed Apollo Global Management, Inc. (“AGM”).

In this quarterly report, references to “Apollo,” “we,” “us,” “our,” and the “Company” refer collectively to AAM and its subsidiaries. References to “Class A shares” refer to the Class A common stock, $0.00001 par value per share, of AAM prior to the Mergers; “Class B share” refers to the Class B common stock, $0.00001 par value per share, of AAM prior to the Mergers; “Class C share” refers to the Class C common stock, $0.00001 par value per share, of AAM prior to the Mergers; “Series A Preferred shares” refers to the 6.375% Series A preferred stock of AAM; “Series B Preferred shares” refers to the 6.375% Series B preferred stock of AAM; and “Preferred shares” refers to the Series A Preferred shares and the Series B Preferred shares, collectively. In addition, references to “common stock” of the Company refer to the authorized shares of common stock, par value $0.00001 per share, of AAM following the Mergers.

The use of any defined term in this report to mean more than one entity, person, security or other item collectively is solely for convenience of reference and in no way implies that such entities, persons, securities or other items are one indistinguishable group. For example, notwithstanding the use of the defined terms “Apollo,” “we,” “us,” “our,” and the “Company” in this report to refer to AAM and its subsidiaries, each subsidiary of AAM is a standalone legal entity that is separate and distinct from AAM and any of its other subsidiaries. Any AAM entity referenced herein is responsible for its own financial, contractual and legal obligations.

Term or Acronym	Definition
AAA	Apollo Aligned Alternatives, L.P., together with its parallel funds and alternative investment vehicles
Accord+	Apollo Accord+ Fund, L.P.
Accord IV	Apollo Accord Fund IV, L.P.
Accord V	Apollo Accord Fund V, L.P.
AIOF I	Apollo Infrastructure Opportunities Fund, L.P.
AIOF II	Apollo Infrastructure Opportunities Fund II, L.P.
AMH	Apollo Management Holdings, L.P., a Delaware limited partnership, that is an indirect subsidiary of AAM

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ANRP III	Apollo Natural Resources Partners III, L.P., together with its parallel funds and alternative investment vehicles
AOG Unit Payment	On December 31, 2021, holders of units of the Apollo Operating Group (“AOG Units”) (other than Athene and the Company) sold and transferred a portion of such AOG Units to APO Corp., a wholly-owned consolidated subsidiary of the Company, in exchange for an amount equal to $3.66 multiplied by the total number of AOG Units held by such holders immediately prior to such transaction.
Apollo funds, our funds and references to the funds we manage	The funds (including the parallel funds and alternative investment vehicles of such funds), partnerships, accounts, including strategic investment accounts or “SIAs,” alternative asset companies and other entities for which subsidiaries of the Apollo Operating Group provide investment management or advisory services.
Apollo Operating Group	(i) The entities through which we currently operate our businesses and (ii) one or more entities formed for the purpose of, among other activities, holding certain of our gains or losses on our principal investments in the funds, which we refer to as our “principal investments.”
Apollo S3 Equity Holdings	Apollo S3 Equity Holdings, L.P.
APSG I	Apollo Strategic Growth Capital
APSG II	Apollo Strategic Growth Capital II
Asia RE Fund I	Apollo Asia Real Estate Fund I, L.P., including co-investment vehicles
Asia RE Fund II	Apollo Asia Real Estate Fund II, L.P., including co-investment vehicles

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Assets Under Management, or AUM	The assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our AUM equals the sum of: (i) the net asset value, or “NAV,” plus used or available leverage and/or capital commitments, or gross assets plus capital commitments, of the yield and certain hybrid funds, partnerships and accounts for which we provide investment management or advisory services, other than certain collateralized loan obligations (“CLOs”), collateralized debt obligations (“CDOs”), and certain perpetual capital vehicles, which have a fee-generating basis other than the mark-to-market value of the underlying assets; for certain perpetual capital vehicles in yield, gross asset value plus available financing capacity; (ii) the fair value of the investments of the equity and certain hybrid funds, partnerships and accounts we manage or advise, plus the capital that such funds, partnerships and accounts are entitled to call from investors pursuant to capital commitments, plus portfolio level financings; (iii) the gross asset value associated with the reinsurance investments of the portfolio company assets we manage or advise; and (iv) the fair value of any other assets that we manage or advise for the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services, plus unused credit facilities, including capital commitments to such funds, partnerships and accounts for investments that may require pre-qualification or other conditions before investment plus any other capital commitments to such funds, partnerships and accounts available for investment that are not otherwise included in the clauses above. Our AUM measure includes Assets Under Management for which we charge either nominal or zero fees. Our AUM measure also includes assets for which we do not have investment discretion, including certain assets for which we earn only investment-related service fees, rather than management or advisory fees. Our definition of AUM is not based on any definition of Assets Under Management contained in our governing documents or in any management agreements of the funds we manage. We consider multiple factors for determining what should be included in our definition of AUM. Such factors include but are not limited to (1) our ability to influence the investment decisions for existing and available assets; (2) our ability to generate income from the underlying assets in the funds we manage; and (3) the AUM measures that we use internally or believe are used by other investment managers. Given the differences in the investment strategies and structures among other alternative investment managers, our calculation of AUM may differ from the calculations employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. Our calculation also differs from the manner in which our affiliates registered with the SEC report “Regulatory Assets Under Management” on Form ADV and Form PF in various ways. We use AUM, Gross capital deployed and Dry powder as performance measurements of our investment activities, as well as to monitor fund size in relation to professional resource and infrastructure needs.
Athene	“Athene Holding” or “AHL” refers to Athene Holding Ltd. (together with its subsidiaries, “Athene”), a leading retirement services company that issues, reinsures and acquires retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs, and to which Apollo, through its consolidated subsidiary Apollo Insurance Solutions Group LP (formerly known as Athene Asset Management LLC) (“ISG”), provides asset management and advisory services. Athene Holding is a subsidiary of our parent company, Apollo Global Management, Inc.
Athora	“Athora Holding” refers to Athora Holding, Ltd. (“Athora Holding” and together with its subsidiaries, “Athora”), a strategic platform that acquires or reinsures blocks of insurance business in the German and broader European life insurance market (collectively, the “Athora Accounts”). The Company, through ISGI, provides investment advisory services to Athora. Athora Non-Sub-Advised Assets includes the Athora assets which are managed by Apollo but not sub-advised by Apollo nor invested in Apollo funds or investment vehicles. Athora Sub-Advised includes assets which the Company explicitly sub-advises as well as those assets in the Athora Accounts which are invested directly in funds and investment vehicles Apollo manages.
AUM with Future Management Fee Potential	The committed uninvested capital portion of total AUM not currently earning management fees. The amount depends on the specific terms and conditions of each fund.
Contributing Partners	Those of our current and former partners and their related parties (other than Messrs. Leon Black, Joshua Harris and Marc Rowan, our co-founders) who indirectly beneficially owned (through Holdings) Apollo Operating Group units.

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Dry Powder	The amount of capital available for investment or reinvestment subject to the provisions of the applicable limited partnership agreements or other governing agreements of the funds, partnerships and accounts we manage. Dry powder excludes uncalled commitments which can only be called for fund fees and expenses and commitments from Perpetual Capital vehicles.
EPF I	Apollo European Principal Finance Fund I
EPF II	Apollo European Principal Finance Fund II
EPF III	Apollo European Principal Finance Fund III
EPF IV	Apollo European Principal Finance Fund IV
Equity Plan	Refers collectively to AGM’s 2019 Omnibus Equity Incentive Plan and AGM’s 2019 Omnibus Equity Incentive Plan for Estate Planning Vehicles.
FCI IV	Financial Credit Investment Fund IV
Fee-Generating AUM	Fee-Generating AUM consists of assets of the funds, partnerships and accounts to which we provide investment management, advisory, or certain other investment-related services and on which we earn management fees, monitoring fees or other investment-related fees pursuant to management or other fee agreements on a basis that varies among the Apollo funds, partnerships and accounts. Management fees are normally based on “net asset value,” “gross assets,” “adjusted par asset value,” “adjusted cost of all unrealized portfolio investments,” “capital commitments,” “adjusted assets,” “stockholders’ equity,” “invested capital” or “capital contributions,” each as defined in the applicable management agreement. Monitoring fees, also referred to as advisory fees, with respect to the structured portfolio company investments of the funds, partnerships and accounts we manage or advise, are generally based on the total value of such structured portfolio company investments, which normally includes leverage, less any portion of such total value that is already considered in Fee-Generating AUM.
Former Managing Partners	Messrs. Leon Black, Joshua Harris and Marc Rowan collectively and, when used in reference to holdings of interests in Apollo or Holdings, includes certain related parties of such individuals
Gross capital deployment	The gross capital that has been invested in investments by the funds and accounts we manage during the relevant period, but excludes certain investment activities primarily related to hedging and cash management functions at the firm. Gross capital deployment is not reduced or netted down by sales or refinancings, and takes into account leverage used by the funds and accounts we manage in gaining exposure to the various investments that they have made.
Gross IRR of a traditional private equity or hybrid value fund	The cumulative investment-related cash flows (i) for a given investment for the fund or funds which made such investment, and (ii) for a given fund, in the relevant fund itself (and not any one investor in the fund), in each case, on the basis of the actual timing of investment inflows and outflows (for unrealized investments assuming disposition on September 30, 2022 or other date specified) aggregated on a gross basis quarterly, and the return is annualized and compounded before management fees, performance fees and certain other expenses (including interest incurred by the fund itself) and measures the returns on the fund’s investments as a whole without regard to whether all of the returns would, if distributed, be payable to the fund’s investors. In addition, gross IRRs at the fund level will differ from those at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Gross IRR does not represent the return to any fund investor.
Gross Return or Gross ROE of a total return yield fund or the hybrid credit hedge fund	The monthly or quarterly time-weighted return that is equal to the percentage change in the value of a fund’s portfolio, adjusted for all contributions and withdrawals (cash flows) before the effects of management fees, incentive fees allocated to the general partner, or other fees and expenses. Returns for these categories are calculated for all funds and accounts in the respective strategies. Returns over multiple periods are calculated by geometrically linking each period’s return over time. Gross return and gross ROE do not represent the return to any fund investor.
HoldCo	Apollo Global Management, Inc. (f/k/a Tango Holdings, Inc.)
Holdings	AP Professional Holdings, L.P., a Cayman Islands exempted limited partnership through which our Former Managing Partners and Contributing Partners indirectly beneficially owned their interests in the Apollo Operating Group units.
HVF I	Apollo Hybrid Value Fund, L.P., together with its parallel funds and alternative investment vehicles
HVF II	Apollo Hybrid Value Fund II, L.P., together with its parallel funds and alternative investment vehicles

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Inflows	(i) At the individual strategy level, subscriptions, commitments, and other increases in available capital, such as acquisitions or leverage, net of inter-strategy transfers, and (ii) on an aggregate basis, the sum of inflows across the yield, hybrid and equity investing strategies.
ISGI	Refers collectively to Apollo Asset Management Europe LLP, a subsidiary of Apollo ("AAME") and Apollo Asset Management PC LLP, a wholly-owned subsidiary of AAME ("AAME PC")
MFIC	MidCap Financial Investment Corporation (f/k/a Apollo Investment Corporation or "AINV")
MidCap	MidCap FinCo Designated Activity Company
Net IRR of a traditional private equity or the hybrid value funds	The gross IRR applicable to the fund, including returns for related parties which may not pay fees or performance fees, net of management fees, certain expenses (including interest incurred or earned by the fund itself) and realized performance fees all offset to the extent of interest income, and measures returns at the fund level on amounts that, if distributed, would be paid to investors of the fund. The timing of cash flows applicable to investments, management fees and certain expenses, may be adjusted for the usage of a fund’s subscription facility. To the extent that a fund exceeds all requirements detailed within the applicable fund agreement, the estimated unrealized value is adjusted such that a percentage of up to 20.0% of the unrealized gain is allocated to the general partner of such fund, thereby reducing the balance attributable to fund investors. In addition, net IRR at the fund level will differ from that at the individual investor level as a result of, among other factors, timing of investor-level inflows and outflows. Net IRR does not represent the return to any fund investor.
Net Return or Net ROE of a total return yield fund or the hybrid credit hedge fund	The gross return after management fees, performance fees allocated to the general partner, or other fees and expenses. Returns over multiple periods are calculated by geometrically linking each period’s return over time. Net return and net ROE do not represent the return to any fund investor.
NYC UBT	New York City Unincorporated Business Tax
"Other operating expenses" within the Principal Investing segment	Expenses incurred in the normal course of business and includes allocations of non-compensation expenses related to managing the business.
Performance allocations, Performance fees, Performance revenues, Incentive fees and Incentive income	The interests granted to Apollo by a fund managed by Apollo that entitle Apollo to receive allocations, distributions or fees which are based on the performance of such fund or its underlying investments.
Performance Fee-Eligible AUM	AUM that may eventually produce performance fees. All funds for which we are entitled to receive a performance fee allocation or incentive fee are included in Performance Fee-Eligible AUM, which consists of the following: (i) “Performance Fee-Generating AUM”, which refers to invested capital of the funds, partnerships and accounts we manage, advise, or to which we provide certain other investment-related services, that is currently above its hurdle rate or preferred return, and profit of such funds, partnerships and accounts is being allocated to, or earned by, the general partner in accordance with the applicable limited partnership agreements or other governing agreements; (ii) “AUM Not Currently Generating Performance Fees”, which refers to invested capital of the funds, partnerships and accounts we manage, advise, or to which we provide certain other investment-related services, that is currently below its hurdle rate or preferred return; and (iii) “Uninvested Performance Fee-Eligible AUM”, which refers to capital of the funds, partnerships and accounts we manage, advise, or to which we provide certain other investment-related services, that is available for investment or reinvestment subject to the provisions of applicable limited partnership agreements or other governing agreements, which capital is not currently part of the NAV or fair value of investments that may eventually produce performance fees allocable to, or earned by, the general partner.
Perpetual Capital	Assets under management of indefinite duration, that may only be withdrawn under certain conditions or subject to certain limitations, including but not limited to satisfying required hold periods or percentage limits on the amounts that may be redeemed over a particular period. The investment management, advisory or other service agreements with our Perpetual Capital vehicles may be terminated under certain circumstances.
Principal investing compensation	Realized performance compensation, distributions related to investment income and dividends, and includes allocations of certain compensation expenses related to managing the business.

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Private equity investments	(i) Direct or indirect investments in existing and future private equity funds managed or sponsored by Apollo, (ii) direct or indirect co-investments with existing and future private equity funds managed or sponsored by Apollo, (iii) direct or indirect investments in securities which are not immediately capable of resale in a public market that Apollo identifies but does not pursue through its private equity funds, and (iv) investments of the type described in (i) through (iii) above made by Apollo funds.
Redding Ridge	Redding Ridge Asset Management, LLC and its subsidiaries, which is a standalone, self-managed asset management business established in connection with risk retention rules that manages collateralized loan obligations (“CLOs”) and retains the required risk retention interests.
SCRF IV	Structured Credit Recovery Master Fund IV
Traditional private equity funds	Apollo Investment Fund I, L.P. (“Fund I”), AIF II, L.P. (“Fund II”), a mirrored investment account established to mirror Fund I and Fund II for investments in debt securities (“MIA”), Apollo Investment Fund III, L.P. (together with its parallel funds, “Fund III”), Apollo Investment Fund IV, L.P. (together with its parallel fund, “Fund IV”), Apollo Investment Fund V, L.P. (together with its parallel funds and alternative investment vehicles, “Fund V”), Apollo Investment Fund VI, L.P. (together with its parallel funds and alternative investment vehicles, “Fund VI”), Apollo Investment Fund VII, L.P. (together with its parallel funds and alternative investment vehicles, “Fund VII”), Apollo Investment Fund VIII, L.P. (together with its parallel funds and alternative investment vehicles, “Fund VIII”) and Apollo Investment Fund IX, L.P. (together with its parallel funds and alternative investment vehicles, “Fund IX”).
U.S. RE Fund I	AGRE U.S. Real Estate Fund, L.P., including co-investment vehicles
U.S. RE Fund II	Apollo U.S. Real Estate Fund II, L.P., including co-investment vehicles
U.S. RE Fund III	Apollo U.S. Real Estate Fund III, L.P., including co-investment vehicles

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Index to Condensed Consolidated Financial Statements (unaudited)

Condensed Consolidated Statement of Financial Condition (unaudited)		10
Condensed Consolidated Statements of Operations (unaudited)		12
Condensed Consolidated Statements of Comprehensive Income (unaudited)		13
Condensed Consolidated Statements of Equity (unaudited)		14
Condensed Consolidated Statements of Cash Flows (unaudited)		16
Notes to Condensed Consolidated Financial Statements (unaudited)		18
	Note 1. Organization	18
	Note 2. Summary of Significant Accounting Policies	19
	Note 3. Goodwill	28
	Note 4. Investments	28
	Note 5. Profit Sharing Payable	30
	Note 6. Variable Interest Entities	30
	Note 7. Fair Value Measurements of Financial Instruments	32
	Note 8. Other Assets	41
	Note 9. Leases	42
	Note 10. Income Taxes	42
	Note 11. Debt	44
	Note 12. Equity-Based Compensation	45
	Note 13. Equity	46
	Note 14. Related Party Transactions and Interests in Consolidated Entities	48
	Note 15. Commitments and Contingencies	53
	Note 16. Segment Reporting	57
	Note 17. Subsequent Events	60

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APOLLO ASSET MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021

(dollars in thousands, except share data)

	As of September 30, 2022		As of December 31, 2021
Assets:
Cash and cash equivalents	$	1,118,305	$	917,183
Restricted cash and cash equivalents	696,712		707,885
Investments (includes performance allocations of $2,502,446 and $2,731,733 as of September 30, 2022 and December 31, 2021, respectively)	6,090,938		11,353,580
Assets of consolidated variable interest entities:
Cash and cash equivalents	84,132		463,266
Investments, at fair value	1,016,819		14,737,051
Other assets	19,175		251,581
Due from related parties	687,687		493,826
Deferred tax assets, net	659,662		424,132
Other assets	1,084,421		585,901
Lease assets	596,487		450,531
Goodwill	263,744		116,958
Total Assets	$	12,318,082	$	30,501,894
Liabilities, Redeemable non-controlling interests and Stockholders’ Equity
Liabilities:
Accounts payable and accrued expenses	$	126,603	$	145,054
Accrued compensation and benefits	262,804		130,107
Deferred revenue	134,949		119,688
Due to related parties	1,681,013		1,222,402
Profit sharing payable	1,497,780		1,444,652
Debt	2,810,055		3,134,396
Liabilities of consolidated variable interest entities:
Debt, at fair value	—		7,942,508
Notes payable	49,990		2,611,019
Other liabilities	607,636		781,482
Other liabilities	305,210		500,980
Lease liabilities	669,081		505,206
Total Liabilities	8,145,121		18,537,494
Commitments and Contingencies (see note 15)
Redeemable non-controlling interests:
Redeemable non-controlling interests	1,023,707		1,770,034
Stockholders’ Equity:
Apollo Asset Management, Inc. Stockholders’ Equity:
Series A Preferred Stock, 11,000,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021	264,398		264,398
Series B Preferred Stock, 12,000,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021	289,815		289,815
Common Stock, $0.00001 par value, 40,000,000 and 0 shares authorized as of September 30, 2022 and December 31, 2021, respectively, 1,000 and 0 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	—		—
Class A Common Stock, $0.00001 par value, 0 and 90,000,000,000 shares authorized as of September 30, 2022 and December 31, 2021, respectively, 0 and 248,896,649 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	—		—

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Class B Common Stock, $0.00001 par value, 0 and 999,999,999 shares authorized as of September 30, 2022 and December 31, 2021, respectively, 0 shares issued and outstanding as of September 30, 2022 and December 31, 2021	—		—
Class C Common Stock, $0.00001 par value, 0 and 1 share authorized as of September 30, 2022 and December 31, 2021, respectively, 0 shares issued and outstanding as of September 30, 2022 and December 31, 2021	—		—
Additional paid in capital	1,242,618		2,096,403
Retained earnings (accumulated deficit)	(3,901)		1,143,899
Accumulated other comprehensive loss	(9,906)		(5,374)
Total Apollo Asset Management, Inc. Stockholders’ Equity	1,783,024		3,789,141
Non-controlling interests in consolidated entities	371,439		3,813,885
Non-controlling interests in Apollo Operating Group	994,791		2,591,340
Total Stockholders’ Equity	3,149,254		10,194,366
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity	$	12,318,082	$	30,501,894

See accompanying notes to unaudited condensed consolidated financial statements.

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APOLLO ASSET MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(dollars in thousands, except share data)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues:
Management fees	$	582,665	$	474,537	$	1,665,611	$	1,401,814
Advisory and transaction fees, net	110,141		62,831		286,419		205,530
Investment income (loss)	(29,248)		536,494		480,889		3,125,371
Incentive fees	9,287		5,436		17,090		23,608
Total Revenues	672,845		1,079,298		2,450,009		4,756,323
Expenses:
Compensation and benefits	386,146		501,668		1,429,155		1,983,770
Interest expense	32,219		34,820		96,644		104,433
General, administrative and other	161,208		112,419		452,292		329,235
Total Expenses	579,573		648,907		1,978,091		2,417,438
Other Income:
Net gains (losses) from investment activities	(16,148)		172,798		901,168		1,439,343
Net gains from investment activities of consolidated variable interest entities	11,387		142,455		327,459		400,452
Interest income	15,377		2,114		23,999		3,557
Other income (loss), net	3,533		(14,907)		(9,480)		(28,126)
Total Other Income	14,149		302,460		1,243,146		1,815,226
Income before income tax provision	107,421		732,851		1,715,064		4,154,111
Income tax provision	(22,069)		(101,434)		(163,870)		(498,731)
Net Income	85,352		631,417		1,551,194		3,655,380
Net income attributable to non-controlling interests	(61,922)		(373,095)		(862,675)		(2,060,441)
Net Income Attributable to Apollo Asset Management, Inc.	23,430		258,322		688,519		1,594,939
Series A Preferred Stock Dividends	(4,383)		(4,382)		(13,149)		(13,148)
Series B Preferred Stock Dividends	(4,781)		(4,782)		(14,344)		(14,344)
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders	$	14,266	$	249,158	$	661,026	$	1,567,447

See accompanying notes to unaudited condensed consolidated financial statements.

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APOLLO ASSET MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(dollars in thousands, except share data)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Net Income	$	85,352	$	631,417	$	1,551,194	$	3,655,380
Other Comprehensive Loss, net of tax:
Currency translation adjustments, net of tax	(34,098)		(10,712)		(70,510)		(22,148)
Net gain from change in fair value of cash flow hedge instruments	—		49		1,976		151
Net gain (loss) on available-for-sale securities	(232)		21		(2,131)		691
Total Other Comprehensive Loss, net of tax	(34,330)		(10,642)		(70,665)		(21,306)
Comprehensive Income	51,022		620,775		1,480,529		3,634,074
Comprehensive income attributable to non-controlling interests	(29,642)		(363,013)		(796,542)		(2,040,166)
Comprehensive Income Attributable to Apollo Asset Management, Inc.	$	21,380	$	257,762	$	683,987	$	1,593,908

See accompanying notes to unaudited condensed consolidated financial statements.

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APOLLO ASSET MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES

IN STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(dollars in thousands, except share data)

	Apollo Asset Management, Inc. Stockholders
	Class A Common Stock	Class B Common Stock	Class C Common Stock	Series A Preferred Stock		Series B Preferred Stock		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Apollo Asset Management, Inc. Stockholders’ Equity		Non- Controlling Interests in Consolidated Entities		Non- Controlling Interests in Apollo Operating Group		Total Stockholders’ Equity
Balance at July 1, 2021	231,366,321	1	1	$	264,398	$	289,815	$	822,612	$	990,798	$	(2,542)	$	2,365,081	$	2,838,121	$	3,009,233	$	8,212,435
Deconsolidation of VIEs	—	—	—	—		—		—		—		—		—		(22,705)		—		(22,705)
Accretion of redeemable non-controlling interests	—	—	—	—		—		(6,911)		—		—		(6,911)		—		—		(6,911)
Issuance of Class A Common Stock related to equity transactions	361,037	—	—	—		—		22,150		—		—		22,150		—		—		22,150
Dilution impact of issuance of Class A Common Stock	—	—	—	—		—		(6,699)		—		—		(6,699)		—		—		(6,699)
Capital increase related to equity-based compensation	—	—	—	—		—		45,631		—		—		45,631		—		—		45,631
Capital contributions	—	—	—	—		—		—		—		—		—		176,878		—		176,878
Dividends/ Distributions	—	—	—	(4,382)		(4,782)		—		(125,843)		—		(135,007)		(276,561)		(118,444)		(530,012)
Payments related to issuances of Class A Common Stock for equity-based awards	1,164,390	—	—	—		—		33,225		(35,257)		—		(2,032)		—		—		(2,032)
Repurchase of Class A Common Stock	(1,300,000)	—	—	—		—		(77,902)		—		—		(77,902)		—		—		(77,902)
Exchange of AOG Units for Class A Common Stock	13,801,444	—	—	—		—		185,833		—		—		185,833		—		(143,396)		42,437
Net income	—	—	—	4,382		4,782		—		249,158		—		258,322		112,569		260,526		631,417
Currency translation adjustments, net of tax	—	—	—	—		—		—		—		(599)		(599)		(9,455)		(658)		(10,712)
Net gain from change in fair value of cash flow hedge instruments	—	—	—	—		—		—		—		27		27		—		22		49
Net income on available-for-sale securities	—	—	—	—		—		—		—		12		12		—		9		21
Balance at September 30, 2021	245,393,192	1	1	$	264,398	$	289,815	$	1,017,939	$	1,078,856	$	(3,102)	$	2,647,906	$	2,818,847	$	3,007,292	$	8,474,045
Balance at January 1, 2021	228,873,449	1	1	$	264,398	$	289,815	$	877,173	$	—	$	(2,071)	$	1,429,315	$	2,275,728	$	1,808,220	$	5,513,263
Deconsolidation of VIEs	—	—	—	—		—		—		—		—		—		(147,920)		—		(147,920)
Accretion of redeemable non-controlling interests	—	—	—	—		—		(49,554)		—		—		(49,554)		—		—		(49,554)
Issuance of Class A Common Stock related to equity transactions	361,037	—	—	—		—		22,150		—		—		22,150		—		—		22,150
Dilution impact of issuance of Class A Common Stock	—	—	—					(7,994)		—		—		(7,994)		—		—		(7,994)
Capital increase related to equity-based compensation	—	—	—	—		—		131,889		—		—		131,889		—		—		131,889
Capital contributions	—	—	—	—		—		—		—		—		—		1,189,296		—		1,189,296
Dividends/ Distributions	—	—	—	(13,148)		(14,344)		—		(389,661)		—		(417,153)		(778,529)		(402,068)		(1,597,750)
Payments related to issuances of Class A Common Stock for equity-based awards	2,981,780	—	—	—		—		36,439		(98,930)		—		(62,491)		—		—		(62,491)
Repurchase of Class A Common Stock	(3,444,713)	—	—	—		—		(200,605)		—		—		(200,605)		—		—		(200,605)
Exchange of AOG Units for Class A Common Stock	16,621,639	—	—	—		—		208,441		—		—		208,441		—		(158,754)		49,687
Net income	—	—	—	13,148		14,344		—		1,567,447		—		1,594,939		299,423		1,761,018		3,655,380
Currency translation adjustments, net of tax	—	—	—	—		—		—		—		(1,527)		(1,527)		(19,151)		(1,470)		(22,148)
Net gain from change in fair value of cash flow hedge instruments	—	—	—	—		—		—		—		82		82		—		69		151
Net income on available-for-sale securities	—	—	—	—		—		—		—		414		414		—		277		691
Balance at September 30, 2021	245,393,192	1	1	$	264,398	$	289,815	$	1,017,939	$	1,078,856	$	(3,102)	$	2,647,906	$	2,818,847	$	3,007,292	$	8,474,045

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	Apollo Asset Management, Inc. Stockholders
	Common Stock	Series A Preferred Stock		Series B Preferred Stock		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Apollo Asset Management, Inc. Stockholders’ Equity		Non- Controlling Interests in Consolidated Entities		Non- Controlling Interests in Apollo Operating Group		Total Stockholders’ Equity
Balance at July 1, 2022	1,000	$	264,398	$	289,815	$	1,378,038	$	—	$	(7,856)	$	1,924,395	$	381,697	$	954,877	$	3,260,969
Consolidation/ deconsolidation of VIEs	—	—		—		—		—		—		—		296,936		—		296,936
Accretion of redeemable non-controlling interests	—	—		—		(10,402)		—		—		(10,402)		—		—		(10,402)
Contributions	—	—		—		90,549		—		—		90,549		724		—		91,273
Dividends/ Distributions	—	(4,383)		(4,781)		(238,153)		(18,167)		—		(265,484)		(297,646)		—		(563,130)
Transactions between entities under common control	—	—		—		22,586		—		—		22,586		—		—		22,586
Net income	—	4,383		4,781		—		14,266		—		23,430		17,795		44,127		85,352
Currency translation adjustments, net of tax	—	—		—		—		—		(1,917)		(1,917)		(28,067)		(4,114)		(34,098)
Net loss on available-for-sale securities	—	—		—		—		—		(133)		(133)		—		(99)		(232)
Balance at September 30, 2022	1,000	$	264,398	$	289,815	$	1,242,618	$	(3,901)	$	(9,906)	$	1,783,024	$	371,439	$	994,791	$	3,149,254
Balance at January 1, 2022	248,896,649	$	264,398	$	289,815	$	2,096,403	$	1,143,899	$	(5,374)	$	3,789,141	$	3,813,885	$	2,591,340	$	10,194,366
Reverse stock split	(248,895,649)	—		—		—		—		—		—		—		—		—
Consolidation/ deconsolidation of VIEs	—	—		—		7,741		(6,865)		—		876		(4,357,094)		—		(4,356,218)
Accretion of redeemable non-controlling interests	—	—		—		(58,989)		—		—		(58,989)		—		—		(58,989)
Contributions	—	—		—		819,341		—		—		819,341		1,497,781		—		2,317,122
Dividends/ Distributions	—	(13,149)		(14,344)		(1,644,464)		(1,801,961)		—		(3,473,918)		(802,153)		(2,174,071)		(6,450,142)
Transactions between entities under common control	—	—		—		22,586		—		—		22,586		—		—		22,586
Net income	—	13,149		14,344		—		661,026		—		688,519		276,984		585,691		1,551,194
Currency translation adjustments, net of tax	—	—		—		—		—		(3,901)		(3,901)		(57,964)		(8,645)		(70,510)
Net gain from change in fair value of cash flow hedge instruments	—	—		—		—		—		882		882		—		1,094		1,976
Net loss on available-for-sale securities	—	—		—		—		—		(1,513)		(1,513)		—		(618)		(2,131)
Balance at September 30, 2022	1,000	$	264,398	$	289,815	$	1,242,618	$	(3,901)	$	(9,906)	$	1,783,024	$	371,439	$	994,791	$	3,149,254

See accompanying notes to unaudited condensed consolidated financial statements.

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APOLLO ASSET MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(dollars in thousands, except share data)

	For the Nine Months Ended September 30,
	2022		2021
Cash Flows from Operating Activities:
Net income	$	1,551,194	$	3,655,380
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity-based compensation	372,922		165,664
Depreciation and amortization	57,867		19,895
Unrealized (gains) losses from investment activities	130,901		(1,403,617)
Net investment income	(480,889)		(3,125,371)
Deferred taxes, net	(239,902)		357,212
Other non-cash amounts included in net income (loss), net	33,748		29,995
Changes in operating assets and liabilities:
Due from related parties	(71,710)		(11,784)
Accounts payable and accrued expenses	(18,600)		89,330
Accrued compensation and benefits	135,341		156,899
Deferred revenue	15,262		144,835
Due to related parties	2,784		(15,260)
Profit sharing payable	76,028		537,572
Lease liability	(46,207)		(21,017)
Other assets and other liabilities, net	(899,127)		95,686
Earnings from net investment income	840,193		1,717,972
Satisfaction of contingent obligations	(13,259)		(20,609)
Apollo Funds and VIE related:
Net realized and unrealized gains from investing activities and debt	(115,445)		(444,064)
Change in consolidation	(792,838)		(47,601)
Purchases of investments	(4,819,793)		(2,886,717)
Proceeds from sale of investments	3,106,215		3,188,133
Changes in other assets and other liabilities, net	675,631		(45,538)
Net cash provided by (used in) operating activities	$	(499,684)	$	2,136,995
Cash Flows from Investing Activities:
Purchases of fixed assets	$	(152,559)	$	(27,729)
Proceeds from sale of investments	39,106		88,595
Purchase of investments	(340,983)		(369,716)
Purchase of U.S. Treasury securities	(2,650,907)		—
Proceeds from maturities of U.S. Treasury securities	2,154,352		—
Cash contributions to principal investments	(160,981)		(255,495)
Cash distributions from principal investments	60,954		247,798
Related party inflows (Repayments)	19,839		96,308
Related party outflows (Issuances)	(17,087)		(121,605)
Other investing activities, net	—		(1,387)
Apollo Funds and VIE related:
Purchase of U.S. Treasury securities	(1,508,782)		(1,634,259)
Proceeds from maturities of U.S. Treasury	2,326,979		1,633,886
Net cash used in investing activities	$	(230,069)	$	(343,604)
Cash Flows from Financing Activities:
Dividends to Preferred Stockholders	$	(27,493)	$	(27,492)
Satisfaction of tax receivable agreement	(51,032)		(39,884)
Distributions related to AGM’s repurchase of Common Stock	—		(200,605)
Distributions related to deliveries of AGM’s Common Stock for RSUs	(165,194)		(98,930)
Dividends / Distributions	(720,377)		(389,661)

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Table of Contents

Distributions paid to non-controlling interests in Apollo Operating Group	—		(402,068)
AOG Unit Payment	(175,267)		—
Due to parent, net	667,942		—
Other financing activities, net	(2,772)		(3,118)
Apollo Funds and VIE related:
Issuance of debt	1,760,996		842,299
Principal repayment of debt	(668,362)		(1,539,457)
Distributions paid to non-controlling interests in consolidated entities	(798,458)		(774,876)
Contributions from non-controlling interests in consolidated entities	1,496,857		1,188,691
Distributions to redeemable non-controlling interests	(776,272)		—
Payment of underwriting discounts	—		(34,223)
Proceeds from issuance of Class A Units of a SPAC	—		1,035,000
Net cash provided by (used in) financing activities	$	540,568	$	(444,324)
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs	(189,185)		1,349,067
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs, Beginning of Period	2,088,334		2,466,531
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs, End of Period	$	1,899,149	$	3,815,598
Supplemental Disclosure of Cash Flow Information:
Interest paid	$	84,222	$	95,912
Interest paid by consolidated variable interest entities	171,857		321,520
Income taxes paid	103,902		79,071
Supplemental Disclosure of Non-Cash Investing Activities:
Contributions to principal investments	$	—	$	57,911
Distributions from principal investments	5,870		92,402
Purchases of other investments, at fair value	21,531		—
Sales of other investments, at fair value	115,813		—
Supplemental Disclosure of Non-Cash Financing Activities:
Capital increases related to equity-based compensation	$	321,460	$	131,889
Contributions	334,919		—
Issuance of restricted shares	33,460		36,439
Other non-cash financing activities	—		(7,994)
Changes in Consolidation:
Investments, at fair value	$	(15,996,073)	$	(244,675)
Other assets	(97,925)		—
Debt at Fair Value	9,350,540		36,857
Notes payable	2,611,019		107,500
Other liabilities	528,595		22,704
Non-controlling interest	4,396,682		125,215
Adjustments related to exchange of Apollo Operating Group units:
Deferred tax assets	$	—	$	292,844
Due to related parties	—		(243,157)
Additional paid in capital	—		(49,687)
Non-controlling interest in Apollo Operating Group	—		158,754
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Consolidated Statements of Financial Condition:
Cash and cash equivalents	$	1,118,305	$	2,090,197
Restricted cash and cash equivalents	696,712		1,052,782
Cash and cash equivalents held at consolidated variable interest entities	84,132		672,619
Total Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities	$	1,899,149	$	3,815,598

See accompanying notes to unaudited condensed consolidated financial statements.

-17-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

1. ORGANIZATION

Apollo Asset Management, Inc. (“AAM”, together with its consolidated subsidiaries, the “Company” or “Apollo”) is a high-growth, global alternative asset manager whose predecessor was founded in 1990. Its primary business is to raise, invest and manage funds on behalf of pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. For these investment management services, Apollo receives management fees generally related to the amount of assets managed, transaction and advisory fees, incentive fees and performance allocations related to the performance of the respective funds that it manages. As of September 30, 2022, Apollo had two primary business segments:

•Asset Management — focuses on three investing strategies: yield, hybrid and equity; yield focuses on generating excess returns through high quality credit underwriting and origination of safe-yielding assets; hybrid focuses across debt and equity to offer a differentiated risk-adjusted return with an emphasis on structured downside protected opportunities across asset classes; and within equity, controlled transactions are principally buyouts, corporate carveouts and distressed investments, while our real estate funds generally focus on single asset, portfolio and platform acquisitions;

•Principal Investing — primarily includes our general partner investments in the funds we manage, where we earn realized performance fee income based on the investment performance of these funds. Principal investing also includes our growth capital and liquidity resources, and seeks to deploy capital into strategic investments over time to help accelerate the growth of the asset management segment.

Organization of the Company

As of September 30, 2022, the Company owned 57.4% of the economic interests of, and operated and controlled all of the businesses and affairs of, the Apollo Operating Group. The remaining 42.6% of the economic interests of the Apollo Operating Group are owned by Apollo Global Management, Inc. (“AGM”).

Apollo and Athene Merger

On January 1, 2022, Apollo and Athene Holding Ltd. (“Athene”) completed the previously announced merger transactions pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) by and among AAM, Tango Holdings, Inc., a Delaware corporation and a then wholly-owned subsidiary of AAM (“HoldCo”), Blue Merger Sub, Ltd., a Bermuda exempted company and a direct wholly-owned subsidiary of HoldCo (“AHL Merger Sub”), and Green Merger Sub, Inc., a Delaware corporation and a direct wholly-owned subsidiary of HoldCo (“AAM Merger Sub”). At the closing of the transactions, AHL Merger Sub merged with and into AHL (the “AHL Merger”), with AHL as the surviving entity in the AHL Merger and a subsidiary of HoldCo, and AAM Merger Sub merged with and into AAM (the “AAM Merger” and, together with the AHL Merger, the “Mergers”) with AAM as the surviving entity in the AAM Merger and a subsidiary of HoldCo.

In connection with the closing of the Mergers, HoldCo was renamed “Apollo Global Management, Inc.” Following the closing of the Mergers, all of the common shares of AHL and AAM are owned by AGM.

In connection with the closing of the Mergers, the Company completed a corporate recapitalization (the “Corporate Recapitalization”) which resulted in the recapitalization of AGM from an umbrella partnership C corporation (“up-C”) structure to a corporation with a single class of common stock with one vote per share.

Griffin Capital Contributions

On March 1, 2022, AGM, the parent company of AAM, completed the acquisition of Griffin Capital’s U.S. wealth distribution business. On May 3, 2022, AGM completed the acquisition of Griffin Capital’s U.S. asset management business. On the dates of each acquisition, AGM concurrently executed agreements pursuant to which AGM contributed its interests in the respective Griffin Capital businesses to subsidiaries of AAM.

-18-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the 2021 Annual Report. Certain disclosures included in the annual financial statements have been condensed or omitted as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year.

The results of the Company and its subsidiaries are presented on a consolidated basis. Any ownership interest other than the Company’s interest in its subsidiaries is reflected as a non-controlling interest. Intercompany accounts and transactions have been eliminated. Management believes it has made all necessary adjustments (consisting only of normal recurring items) so that the condensed consolidated financial statements are presented fairly and that any estimates made are reasonable and prudent. Certain reclassifications have been made to previously reported amounts to conform to the current period’s presentation.

Consolidation

When an entity is consolidated, the accounts of the consolidated entity, including its assets, liabilities, revenues, expenses and cash flows, are presented on a gross basis. Consolidation does not have an effect on the amounts of net income reported. The Company consolidates entities where it has a controlling financial interest unless there is a specific scope exception that prevents consolidation.

The types of entities with which the Company is involved generally include, but are not limited to:

•Subsidiaries, including management companies and general partners of funds that the Company manages

•Entities that have attributes of an investment company (e.g., funds)

•Special purpose acquisition companies (“SPACs”)

•Securitization vehicles (e.g., collateralized loan obligations (“CLOs”))

Each of these entities is assessed for consolidation depending on the specific facts and circumstances surrounding that entity. In determining whether to consolidate an entity, the Company first evaluates whether the entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”) and applies the appropriate consolidation model as discussed below. If an entity is not consolidated, then the Company’s investment is generally accounted for under the equity method of accounting or as a financial instrument as discussed in the related policy discussions below.

Investment Companies

Judgment is required to evaluate whether an entity has the necessary characteristics to be accounted for as an investment company. Funds we manage that meet the investment company criteria are generally not required to consolidate operating companies and generally reflect their investments in operating companies and other investment companies at fair value. The Company has retained this specialized accounting for investment companies in consolidation.

Variable Interest Entities

All entities are first considered under the VIE model. VIEs are entities that i) do not have sufficient equity at risk to finance its activities without additional subordinated financial support or ii) have equity investors that do not have the ability to make significant decisions related to the entity’s operations, absorb expected losses, or receive expected residual returns.

The Company consolidates a VIE if it is the primary beneficiary of the entity. The Company is deemed the primary beneficiary when it has a controlling financial interest in the VIE, which is defined as possessing both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance (“primary beneficiary power”) and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (“significant variable interest”). The Company performs the VIE and primary beneficiary assessment at inception of its involvement with a VIE and on an ongoing basis if facts and circumstances change.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

To assess whether the Company has the primary beneficiary power under the VIE consolidation model, it considers the design of the entity as well as ongoing rights and responsibilities. In general, the parties that can make the most significant decisions regarding asset management have control over servicing, liquidation rights or the unilateral right to remove the decision-makers. To assess whether the Company has a significant variable interest, the Company considers all its economic interests that are considered variable interests in the entity including interests held through related parties. This assessment requires judgment in considering whether those interests are significant.

Assets and liabilities of the consolidated VIEs, other than SPACs, are primarily shown in separate sections within the condensed consolidated statements of financial condition. Changes in the fair value of the consolidated VIEs’ assets and liabilities and related interest, dividend and other income and expenses are primarily presented within net gains from investment activities of consolidated variable interest entities in the condensed consolidated statements of operations. The portion attributable to non-controlling interests is reported within net income attributable to non-controlling interests in the condensed consolidated statements of operations. For additional disclosures regarding VIEs, see notes 6 and 14.

Voting Interest Entities

For entities that are not determined to be VIEs, the entities are generally considered VOEs. Under the VOE model, Apollo consolidates those entities it controls through a majority voting interest. Apollo does not consolidate those VOEs in which substantive kick-out rights have been granted to the unrelated investors to either dissolve the fund or remove the general partner.

Use of Estimates

The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts in the financial statements and the related footnotes. Apollo’s most significant estimates include goodwill, intangible assets, income taxes, performance allocations, incentive fees, contingent consideration obligations related to an acquisition, non-cash compensation, and fair value of investments and debt. While such impact may change considerably over time, the estimates and assumptions affecting the Company’s condensed consolidated financial statements are based on the best available information as of September 30, 2022. Actual results could differ materially from those estimates.

Cash and Cash Equivalents

Apollo considers all highly liquid short-term investments, including money market funds and U.S. Treasury securities, with original maturities of three months or less when purchased to be cash equivalents. Restricted cash and cash equivalents are reported separately as discussed below. Interest income from cash and cash equivalents is recorded in interest income in the condensed consolidated statements of operations. The carrying values of the money market funds and U.S. Treasury securities represent their fair values due to their short-term nature. Substantially all of the Company’s cash on deposit is in interest bearing accounts with major financial institutions and exceed insured limits.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents represent balances that are restricted as to withdrawal or usage.

Restricted cash and cash equivalents of Apollo Strategic Growth Capital II (“APSG II”), a consolidated SPAC, is held in trust accounts and includes money market funds and U.S. Treasury bills with original maturities of three months or less, that were purchased with funds raised through the respective initial public offering of the consolidated entity. The $694.5 million in funds for APSG II as of September 30, 2022 is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in APSG II’s trust agreement. Refer to note 14 for further detail.

U.S. Treasury Securities, at fair value

U.S. Treasury securities, at fair value includes U.S. Treasury bills with original maturities greater than three months when purchased. These securities are recorded at fair value within investments in the condensed consolidated statements of financial condition. Interest income on such securities is separately presented from the overall change in fair value and is recognized in interest income in the condensed consolidated statements of operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net gains (losses) from investment activities in the condensed consolidated statements of operations. Securities are generally recognized on a trade date basis.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

U.S. Treasury securities, at fair value of Acropolis Infrastructure Acquisition Corp. (“Acropolis”), a consolidated SPAC, is held in a trust account and consists of U.S Treasury bills that were purchased with funds raised through the initial public offering of the consolidated entity. The $347.2 million in funds as of September 30, 2022 are restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement.

Fair Value of Financial Instruments

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in an orderly transaction. Changes in the fair value of financial instruments are recorded and presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statement of operations.

Financial instruments are generally recorded at fair value or at carrying values that approximate fair value. The actual realized gains or losses will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may ultimately differ significantly from the assumptions on which the valuations were based.

Fair Value Option

Entities are permitted to elect the fair value option (“FVO”) to carry at fair value certain financial assets and financial liabilities. The FVO election is irrevocable and can be applied to eligible financial instruments on an individual basis at initial recognition or at eligible remeasurement events.

The Company has elected the FVO for financial instruments held by its consolidated CLOs, which includes investments in loans and corporate bonds, as well as debt obligations and contingent obligations. Certain consolidated VIEs have applied the FVO for investments in private debt securities that otherwise would not have been carried at fair value with gains and losses in net income. The Company has also elected the FVO for certain investments otherwise accounted for under the equity method of accounting. Refer to note 4 for additional information and other instances of when the Company has elected the FVO.

Fair Value Hierarchy

U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I - Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments included in Level I include listed equities and debt. The Company does not adjust the quoted price for these financial instruments, even in situations where the Company holds a large position and the sale of such position would likely deviate from the quoted price.

Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments that are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives where the fair value is based on observable inputs. These financial instruments exhibit higher levels of liquid market observability as compared to Level III financial instruments.

Level III - Pricing inputs are unobservable for the financial instrument and includes situations where there is little observable market activity for the financial instrument. The inputs into the determination of fair value may require significant management judgment or estimation. Financial instruments that are included in this category generally

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

include general and limited partner interests in equity and hybrid funds, distressed debt and non-investment grade residual interests in securitizations, and CDOs and CLOs where the fair value is based on observable inputs as well as unobservable inputs.

When a security is valued based on broker quotes, the Company subjects those quotes to various criteria in making the determination as to whether a particular financial instrument would qualify for classification as Level II or Level III. These criteria include, but are not limited to, the number and quality of the broker quotes, the standard deviations of the observed broker quotes, and the percentage deviation from external pricing services.

Investments in securities that are traded on a securities exchange or comparable over-the-counter quotation systems are valued based on the last reported sale price at that date. If no sales of such investments are reported on such date, and in the case of over-the-counter securities or other investments for which the last sale date is not available, valuations are based on independent market quotations obtained from market participants, recognized pricing services or other sources deemed relevant, and the prices are based on the average of the “bid” and “ask” prices, or at ascertainable prices at the close of business on such day. Market quotations are generally based on valuation pricing models or market transactions of similar securities adjusted for security-specific factors such as relative capital structure priority and interest and yield risks, among other factors. When market quotations are not available, a model based approach is used to determine fair value.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument when the fair value is based on unobservable inputs.

Equity Method Investments

For equity investments in entities where the Company exercises significant influence but does not meet the requirements for consolidation and has not elected the fair value option, the Company uses the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities adjusted for distributions. The Company’s share of the underlying net income or loss of such entities is recorded in Investment income (loss) in the condensed consolidated statements of operations.

The carrying amounts of equity method investments are recorded in investments in the condensed consolidated statements of financial condition. Generally, the underlying entities that the Company manages and invests in are primarily investment companies, and the carrying value of the Company’s equity method investments approximates fair value.

Financial Instruments held by Consolidated VIEs

Under a measurement alternative permissible for consolidated collateralized financing entities, the Company measures both the financial assets and financial liabilities of consolidated CLOs in its condensed consolidated financial statements using the fair value of the financial assets or financial liabilities, whichever are more observable.

Where financial assets are more observable, the financial assets of the consolidated CLOs are measured at fair value and the financial liabilities are measured in consolidation as: (i) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (ii) the sum of the fair value of any beneficial interests retained by the Company (other than those that represent compensation for services) and the Company’s carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interest retained by the Company) using a reasonable and consistent methodology.

Where financial liabilities are more observable, the financial liabilities of the consolidated CLOs are measured at fair value and the financial assets are measured in consolidation as: (i) the sum of the fair value of the financial liabilities, and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CLOs less (ii) the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs. The resulting amount is allocated to the individual financial assets using a reasonable and consistent methodology.

Net income attributable to Apollo Asset Management, Inc. reflects the Company’s own economic interests in the consolidated CLOs including (i) changes in the fair value of the beneficial interests retained by the Company and (ii) beneficial interests that represent compensation for collateral management services.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Deferred Revenue

Apollo records deferred revenue, which is a type of contract liability, when consideration is received in advance of management services provided.

Apollo also earns management fees subject to the Management Fee Offset (described below). When advisory and transaction fees are earned by the management company, the Management Fee Offset reduces the management fee obligation of the fund. When the Company receives cash for advisory and transaction fees, a certain percentage of such advisory and/or transaction fees, as applicable, is allocated as a credit to reduce future management fees, otherwise payable by such fund. Such credit is recorded as deferred revenue in the condensed consolidated statements of financial condition. A portion of any excess advisory and transaction fees may be required to be returned to the limited partners of certain funds upon such fund’s liquidation. As the management fees earned by the Company are presented on a gross basis, any Management Fee Offsets calculated are presented as a reduction to advisory and transaction fees in the condensed consolidated statements of operations.

Additionally, Apollo earns advisory fees pursuant to the terms of the advisory agreements with certain of the portfolio companies that are owned by the funds Apollo manages. When Apollo receives a payment from a portfolio company that exceeds the advisory fees earned at that point in time, the excess payment is recorded as deferred revenue in the condensed consolidated statements of financial condition. The advisory agreements with the portfolio companies vary in duration and the associated fees are received monthly, quarterly or annually.

Deferred revenue is reversed and recognized as revenue over the period that the agreed upon services are performed. There was $109.7 million of revenue recognized during the nine months ended September 30, 2022 that was previously deferred as of January 1, 2022.

Under the terms of the funds’ partnership agreements, Apollo is normally required to bear organizational expenses over a set dollar amount and placement fees or costs in connection with the offering and sale of interests in the funds it manages to investors. The placement fees are payable to placement agents, who are independent third parties that assist in identifying potential investors, securing commitments to invest from such potential investors, preparing or revising offering and marketing materials, developing strategies for attempting to secure investments by potential investors and/or providing feedback and insight regarding issues and concerns of potential investors, when a limited partner either commits or funds a commitment to a fund. In cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract, and amortized over the life of the customer contract. Capitalized placement fees are recorded within other assets in the condensed consolidated statements of financial condition, while amortization is recorded within placement fees in the condensed consolidated statements of operations. In certain instances, the placement fees are paid over a period of time. Based on the management agreements with the funds, Apollo considers placement fees and organizational costs paid in determining if cash has been received in excess of the management fees earned. Placement fees and organizational costs are normally the obligation of Apollo but can be paid for by the funds. When these costs are paid by the fund, the resulting obligations are included within deferred revenue. The deferred revenue balance will also be reduced during future periods when management fees are earned but not paid.

Redeemable non-controlling interests

Redeemable non-controlling interests are attributable to VIEs and primarily represent the shares issued by the Company’s consolidated SPACs that are redeemable for cash by the respective public shareholders in connection with the applicable SPAC’s failure to complete a business combination or its tender offer/stockholder approval provisions. The redeemable non-controlling interests are initially recorded at their original issue price, net of issuance costs and the initial fair value of separately traded warrants. The carrying amount is accreted to its redemption value over the period from the date of issuance to the earliest redemption date of the instrument. The accretion to redemption value is generally recorded against additional paid-in capital. Refer to note 14 for further detail.

Revenues

The Company’s revenues include (i) management fees; (ii) advisory and transaction fees, net; (iii) investment income, which is comprised of performance allocations and principal investment income; and (iv) incentive fees.

The Company is required to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services (i.e., the transaction price). When determining the transaction price, the Company may recognize variable consideration only to the

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

extent that it is probable to not be significantly reversed. The Company is also required to disclose the nature, amount, timing, and uncertainty of revenue that is recognized.

Performance allocations are accounted for as equity method investments. The Company recognizes performance allocations within investment income along with the related principal investment income (as further described below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition.

Refer to disclosures below for additional information on each of the Company’s revenue streams.

Management Fees

Management fees are recognized over time during the periods in which the related services are performed in accordance with the contractual terms of the related agreement. Management fees are generally based on (1) a percentage of the capital committed during the commitment period, and thereafter based on the remaining invested capital of unrealized investments, or (2) net asset value, gross assets or as otherwise defined in the respective agreements. Included in management fees are certain expense reimbursements where the Company is considered the principal under the agreements and is required to record the expense and related reimbursement revenue on a gross basis.

Advisory and Transaction Fees, Net

Advisory fees, including management consulting fees and directors’ fees, are generally recognized over time as the underlying services are provided in accordance with the contractual terms of the related agreement. The Company receives such fees in exchange for ongoing management consulting services provided to portfolio companies of funds it manages. Transaction fees, including structuring fees and arranging fees related to the Company’s funds, portfolio companies of funds and third parties are generally recognized at a point in time when the underlying services rendered are complete.

The amounts due from fund portfolio companies are recorded in due from related parties on the condensed consolidated statements of financial condition, which is discussed further in note 14. Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage of such advisory and transaction fees, net of applicable broken deal costs (“Management Fee Offset”). Advisory and transaction fees are presented net of the Management Fee Offset in the condensed consolidated statements of operations.

Underwriting fees, which are also included within advisory and transaction fees, net, include gains, losses and fees, arising from securities offerings in which one of the Company’s subsidiaries participates in the underwriter syndicate. Underwriting fees are recognized at a point in time when the underwriting is completed. Underwriting fees recognized but not received are recorded in other assets on the condensed consolidated statements of financial condition.

During the normal course of business, the Company incurs certain costs related to certain transactions that are not consummated (“broken deal costs”). These costs (e.g., research costs, due diligence costs, professional fees, legal fees and other related items) are determined to be broken deal costs upon management’s decision to no longer pursue the transaction. In accordance with the related fund agreement, in the event the deal is deemed broken, all of the costs are reimbursed by the funds and then included as a component of the calculation of the Management Fee Offset. If a deal is successfully completed, Apollo is reimbursed by the fund or fund’s portfolio company for all costs incurred and no offset is generated. As the Company acts as an agent for the funds it manages, any transaction costs incurred and paid by the Company on behalf of the respective funds relating to successful or broken deals are recorded net on the Company’s condensed consolidated statements of operations, and any receivable from the respective funds is recorded in due from related parties on the condensed consolidated statements of financial condition.

Investment Income

Investment income is comprised of performance allocations and principal investment income.

Performance Allocations

Performance allocations are a type of performance revenue (i.e., income earned based on the extent to which an entity’s performance exceeds predetermined thresholds). Performance allocations are generally structured from a legal standpoint as an allocation of capital in which the Company’s capital account receives allocations of the returns of an entity when those returns

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

exceed predetermined thresholds. The determination of which performance revenues are considered performance allocations is primarily based on the terms of an agreement with the entity.

The Company recognizes performance allocations within investment income along with the related principal investment income (as described further below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition.

When applicable, the Company may record a general partner obligation to return previously distributed performance allocations. The general partner obligation is based upon an assumed liquidation of a fund’s net assets as of the reporting date and is reported within due to related parties on the condensed consolidated statements of financial condition. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund.

Principal Investment Income

Principal investment income includes the Company’s income or loss from equity method investments and certain other investments in entities in which the Company is generally eligible to receive performance allocations. Income from equity method investments includes the Company’s share of net income or loss generated from its investments, which are not consolidated, but in which the Company exerts significant influence.

Incentive Fees

Incentive fees are a type of performance revenue. Incentive fees differ from performance allocations in that incentive fees do not represent an allocation of capital but rather a contractual fee arrangement with the entity.

Incentive fees are considered a form of variable consideration as they are subject to clawback or reversal and therefore must be deferred until the fees are probable to not be significantly reversed. Accrued but unpaid incentive fees are reported within incentive fees receivable in the Company’s condensed consolidated statements of financial condition. The Company’s incentive fees primarily relate to the yield investing strategy and are generally received from CLOs, managed accounts and MFIC.

Compensation and Benefits

Salaries, Bonus and Benefits

Salaries, bonus and benefits include base salaries, discretionary and non-discretionary bonuses, severance and employee benefits. Bonuses are generally accrued over the related service period.

Equity-Based Compensation

Equity-based awards granted to employees and non-employees as compensation are measured based on the grant date fair value of the award. Equity-based awards that do not require future service (i.e., vested awards) are expensed immediately. Equity-based employee awards that require future service are expensed over the relevant service period. In addition, certain restricted share units (“RSUs”) granted by AGM vest based on both continued service and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation expense. In accordance with U.S. GAAP, equity-based compensation expense for such awards, if and when granted, will be recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. The Company accounts for forfeitures of equity-based awards when they occur.

Profit Sharing

Profit sharing expense and profit sharing payable primarily consist of a portion of performance revenues earned from certain funds that are allocated to employees and former employees. Profit sharing amounts are recognized as the related performance revenues are earned. Accordingly, profit sharing amounts can be reversed during periods when there is a decline in performance revenues that were previously recognized.

Profit sharing amounts are generally not paid until the related performance revenue is distributed to the general partner upon realization of the fund’s investments. Under certain profit sharing arrangements, the Company requires that a portion of certain of the performance revenues distributed to its employees be used to purchase restricted common stock issued under AGM’s

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Equity Plan. Prior to distribution of the performance revenue, the Company records the value of the equity-based awards expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. Such equity-based awards are recorded as equity-based compensation expense over the relevant service period once granted.

Additionally, profit sharing amounts previously distributed may be subject to clawback from employees and former employees. When applicable, the accrual for potential clawback of previously distributed profit sharing amounts, which is a component of due from related parties on the condensed consolidated statements of financial condition, represents all amounts previously distributed to employees and former employees that would need to be returned to the general partner if the Apollo funds were to be liquidated based on the fair value of the underlying funds’ investments as of the reporting date. The actual general partner receivable, however, would not become realized until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund.

Profit sharing payable also includes contingent consideration obligations that were recognized in connection with certain Apollo acquisitions. Changes in the fair value of the contingent consideration obligations are reflected in the Company’s condensed consolidated statements of operations as profit sharing expense.

The Company has a performance-based incentive arrangement for certain Apollo partners and employees designed to more closely align compensation on an annual basis with the overall realized performance of the Company. This arrangement enables certain partners and employees to earn discretionary compensation based on performance revenue earned by the Company in a given year, which amounts are reflected in profit sharing expense in the accompanying condensed consolidated financial statements.

401(k) Savings Plan

The Company sponsors a 401(k) savings plan (the “401(k) Plan”) whereby U.S.-based employees are entitled to participate in the 401(k) Plan based upon satisfying certain eligibility requirements. The Company matches 50% of eligible annual employee contributions up to 3% of the eligible employees’ annual compensation. Matching contributions vest after three years of service.

General, Administrative and Other

General, administrative and other primarily includes professional fees, occupancy, depreciation and amortization, travel, information technology, administration expenses and placement fees.

Income Taxes

The Company is a Delaware corporation and generally all of its income is subject to U.S. corporate income taxes. Certain entities within the legal entity structure of the Company operate as partnerships for U.S. income tax purposes and are subject to NYC UBT. Certain non-U.S. entities are also subject to non-U.S. corporate income taxes. The Company is included in the U.S. federal consolidated and certain state combined income tax returns with AGM and its other subsidiaries. For purposes of these separate company consolidated financial statements, the Company’s taxes were determined using the separate return method as if the Company had filed tax returns separate from AGM. As a result, the tax effects of certain activity and the tax treatment of certain transactions included in the condensed consolidated financial statements of AGM may not be the same in the Company’s separate company consolidated financial statements.

Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties. The Company’s tax positions are reviewed and evaluated quarterly to determine whether the Company has uncertain tax positions that require financial statement recognition. The Company recognizes the tax benefit of uncertain tax positions only where the position is “more likely than not” to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If a tax position was not considered more likely than not to be sustained, then no benefits of the position would be recognized.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial statement carrying amount of assets and liabilities and their respective tax bases using currently enacted tax rates in the period the temporary difference is expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period during which the change is enacted. Deferred tax assets are reduced by a valuation

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In determining the realizability of deferred tax assets, the Company evaluates all positive and negative evidence in addition to the ability to carry back losses, the timing of future reversals of taxable temporary differences, tax planning strategies and future expected earnings.

Non-Controlling Interests

For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the condensed consolidated financial statements. Prior to the Corporate Recapitalization, the non-controlling interests relating to AGM included the ownership interest in the Apollo Operating Group held by Former Managing Partners and Contributing Partners through their limited partner interests in Holdings. Additionally, Athene held non-controlling interests in the Apollo Operating Group. Subsequent to the closing of the Mergers, Athene’s interest in the Apollo Operating Group was distributed to AGM. Non-controlling interests also include ownership interests in certain consolidated funds and VIEs.

Non-controlling interests are presented as a separate component of stockholders’ equity on the Company’s condensed consolidated statements of financial condition. The primary components of Non-controlling interests are separately presented in the Company’s condensed consolidated statements of changes in stockholders’ equity to clearly distinguish the interest in the Apollo Operating Group and other ownership interests in the consolidated entities. Net income includes the net income attributable to the holders of Non-controlling interests on the Company’s condensed consolidated statements of operations. Profits and losses are allocated to Non-controlling interests in proportion to their relative ownership interests regardless of their basis.

Guarantees

See note 15 to the condensed consolidated financial statements for information related to the Company’s material guarantees.

Recent Accounting Pronouncements

Fair Value Measurement — Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03)

In June 2022, the FASB issued clarifying guidance that a restriction which is a characteristic of the holding entity rather than a characteristic of the equity security itself should not be considered in its fair value measurement. As a result, the Company is required to measure the fair value of equity securities subject to contractual restrictions attributable to the holding entity on the basis of the market price of the same equity security without those contractual restrictions. Companies are not permitted to recognize a contractual sale restriction attributable to the holding entity as a separate unit of account. The guidance also requires disclosures for these equity securities.

The new guidance is mandatorily effective for the Company by January 1, 2024 with early adoption permitted. When adopted, the Company will apply the guidance on a prospective basis as an adjustment to current-period earnings with the adoption impact disclosed in the period of adoption.

The Company is currently evaluating the new guidance and its impact on the consolidated financial statements.

Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08)

In October 2021, the FASB issued guidance to add contract assets and contract liabilities from contracts with customers acquired in a business combination to the list of exceptions to the fair value recognition and measurement principles that apply to business combinations, and instead require them to be accounted for in accordance with revenue recognition guidance. The new guidance is mandatorily effective for the Company on January 1, 2023 and applied prospectively, with early adoption permitted. All entities except those that qualify as an investment company under Topic 946 are required to apply the amendments prospectively with any adjustments from adoption recorded in current period earnings and amounts disclosed.

The Company is currently evaluating the guidance and its impact on the consolidated financial statements.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

3. GOODWILL

In connection with the completion of the Mergers, the Company undertook a strategic review of its operating structure and business segments to assess the performance of its businesses and the allocation of resources. As a result, the Company reorganized into two reportable segments, asset management and principal investing. The Company conducted interim impairment testing immediately prior and subsequent to the reorganization and determined there to be no impairment of historical goodwill.

The following table presents Apollo’s goodwill by segment: 

	As of September 30, 2022		As of December 31, 2021
Asset Management	$	231,562	$	84,776
Principal Investing	32,182		32,182
Total Goodwill	$	263,744	$	116,958

The Company’s parent, AGM, acquired Griffin Capital’s U.S. wealth distribution business and U.S. asset management business in two separate closings on March 1, 2022 and May 3, 2022 and recorded goodwill of $13.1 million and $133.6 million, respectively, on each acquisition date. AGM concurrently executed agreements on each acquisition date to contribute its interests in the Griffin Capital businesses to subsidiaries of AAM and applied pushdown accounting, including for the recognition of these goodwill amounts. As a result, AAM reflects the goodwill amounts within the Asset Management segment in the condensed consolidated statements of financial condition.

4. INVESTMENTS

The following table presents Apollo’s investments: 

	As of September 30, 2022		As of December 31, 2021
Investments, at fair value	$	1,131,409	$	5,588,992
Equity method investments	1,085,035		1,345,750
Performance allocations	2,502,446		2,731,733
U.S. Treasury Securities, at fair value	1,372,048		1,687,105
Total Investments	$	6,090,938	$	11,353,580

Investments, at Fair Value

Investments, at fair value, consist of investments for which the fair value option has been elected and primarily include the Company’s investment in Athora, investments in debt of unconsolidated CLOs and, as of December 31, 2021, included the Company’s investment in Athene Holding. Changes in the fair value related to these investments are presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statements of operations.

Prior to the Mergers, the Company’s equity investment in Athene Holding, for which the fair value option was elected, met the significance criteria as defined by the SEC as of September 30, 2021.

During the first quarter of 2022, the Company’s investment in Athene Holding was distributed to AGM. As such, the following tables present summarized financial information of Athene Holding:

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Statements of Operations
Revenues	$	—	$	8,724	$	(269)	$	19,538
Benefits and expenses	—		8,004		2,504		16,689
Income (loss) before income taxes	—		720		(2,773)		2,849
Income tax expense (benefit)	—		(50)		(407)		196
Net income (loss)	—		770		(2,366)		2,653
Less: Net income (loss) attributable to non-controlling interests	—		37		(883)		(111)
Net income (loss) available to Athene Holding Ltd. shareholders	$	—	$	733	$	(1,483)	$	2,764
Less: Preferred stock dividends	—		35		35		106
Net income (loss) available to Athene Holding Ltd. common shareholders	$	—	$	698	$	(1,518)	$	2,658

Net Gains (Losses) from Investment Activities

The following table presents the realized and net change in unrealized gains reported in net gains (losses) from investment activities: 

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Realized gains (losses) on sales of investments, net	$	(984)	$	(197)	$	206,547	$	996
Net change in unrealized gains due to changes in fair value	(15,164)		172,995		694,621		1,438,347
Net gains (losses) from investment activities	$	(16,148)	$	172,798	$	901,168	$	1,439,343

Performance Allocations

Performance allocations receivable is recorded within investments in the condensed consolidated statements of financial condition. The table below provides a roll forward of the performance allocations balance:

	Total
Performance allocations, January 1, 2022	$	2,731,733
Change in fair value of funds	314,800
Fund distributions to the Company	(544,087)
Performance allocations, September 30, 2022	$	2,502,446

The change in fair value of funds excludes the general partner obligation to return previously distributed performance allocations, which is recorded in due to related parties in the condensed consolidated statements of financial condition. See note 14 for further disclosure regarding the general partner obligation.

The timing of the payment of performance allocations due to the general partner or investment manager varies depending on the terms of the applicable fund agreements. Performance allocations with respect to certain funds are payable and are distributed to the fund’s general partner upon realization of an investment if the fund’s cumulative returns are in excess of the preferred return.

-29-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

5. PROFIT SHARING PAYABLE

Profit sharing payable was $1.5 billion and $1.4 billion as of September 30, 2022 and December 31, 2021, respectively. The table below provides a roll forward of the profit sharing payable balance:

	Total
Profit sharing payable, January 1, 2022	$	1,444,652
Profit sharing expense	366,812
Payments/other	(313,684)
Profit sharing payable, September 30, 2022	$	1,497,780

Profit sharing expense includes (i) changes in amounts payable to employees and former employees entitled to a share of performance revenues in funds managed by Apollo and (ii) changes to the fair value of the contingent consideration obligations recognized in connection with certain Apollo acquisitions. Profit sharing expense excludes the potential return of profit sharing distributions that would be due if certain funds were liquidated, which is recorded in due from related parties in the condensed consolidated statements of financial condition. See note 14 for further disclosure regarding the potential return of profit sharing distributions.

As discussed in note 2, under certain profit sharing arrangements, the Company requires that a portion of certain of the performance revenues distributed to its employees be used to purchase restricted shares of AGM’s common stock issued under AGM’s Equity Plan. Prior to distribution of the performance revenues, the Company records the value of the equity-based awards expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. See note 8 for further disclosure regarding deferred equity-based compensation.

6. VARIABLE INTEREST ENTITIES

A variable interest in a VIE is an investment or other interest that will absorb portions of the VIE’s expected losses and/or receive expected residual returns. Refer to note 2 for more detail about the Company’s VIE assessment and consolidation policy. Variable interests in consolidated VIEs and unconsolidated VIEs are discussed separately below.

Consolidated Variable Interest Entities

Consolidated VIEs include consolidated SPACs as well as certain CLOs and funds managed by the Company. The financial information for these consolidated SPACs are disclosed in note 14.

The assets of consolidated VIEs are not available to creditors of the Company, and the investors in these consolidated VIEs have no recourse against the assets of the Company. Similarly, there is no recourse to the Company for the consolidated VIEs’ liabilities.

Other assets include interest receivables, receivables from affiliates and due from brokers. Other liabilities include payables for securities purchased, which represent open trades within the consolidated CLOs and primarily relate to corporate loans that are expected to settle within 60 days, debt held at amortized cost and short-term payables.

Included within liabilities of the consolidated VIEs are notes payable related to certain funds managed by the Company. Each series of notes in a respective consolidated VIE participates in distributions from the VIE, including principal and interest from underlying investments. Amounts allocated to the noteholders reflect amounts that would be distributed if the VIE’s assets were liquidated for cash equal to their respective carrying values, its liabilities satisfied in accordance with their terms, and all the remaining amounts distributed to the noteholders. The respective VIEs that issue the notes payable are marked at their prevailing net asset value, which approximates fair value.

Results from certain funds managed by the Company are reported on a three month lag based upon the availability of financial information.

-30-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Net Gains from Investment Activities of Consolidated Variable Interest Entities

The following table presents net gains from investment activities of the consolidated VIEs:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022		(1)	2021		(1)	2022		(1)	2021		(1)
Net gains from investment activities	$	7,740		$	104,885		$	105,091		$	460,459
Net gains (losses) from debt	—			(4,210)			10,138			(15,737)
Interest and other income	13,971			162,815			218,596			525,573
Interest and other expenses	(10,324)			(121,035)			(6,366)			(569,843)
Net gains from investment activities of consolidated variable interest entities	$	11,387		$	142,455		$	327,459		$	400,452
(1) Amounts reflect consolidation eliminations.

Senior Secured Notes, Subordinated Notes, Subscription Lines and Secured Borrowings

Included within debt, at fair value, notes payable, and other liabilities are amounts due to third-party institutions by the consolidated VIEs. The following table summarizes the principal provisions of those amounts.

	As of September 30, 2022					As of December 31, 2021
	Principal Outstanding		Weighted Average Interest Rate		Weighted Average Remaining Maturity in Years	Principal Outstanding		Weighted Average Interest Rate			Weighted Average Remaining Maturity in Years
Senior Secured Notes(2)	$	—	N/A		N/A	$	7,431,467	3.16	%		15.5
Subordinated Notes(2)	—		N/A		N/A	613,192		N/A		(1)	14.5
Subscription Lines(2)	651,491		4.87	%	0.14	—		N/A			N/A
Secured Borrowings(2)(3)	—		N/A		N/A	18,149		2.33	%		0.4
Total	$	651,491				$	8,062,808
(1) The principal outstanding balance of the subordinated notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the VIEs.
(2) The notes, subscription lines and borrowings of the consolidated VIEs are collateralized by assets held by each respective vehicle and assets of one vehicle may not be used to satisfy the liabilities of another vehicle.
(3) As of December 31, 2021, secured borrowings consist of consolidated VIEs’ obligations through a repurchase agreement redeemable at maturity with third party lenders. The fair value of the secured borrowings as of December 31, 2021 approximates principal outstanding due to the short term nature of the borrowings. These secured borrowings are classified as a Level III liability within the fair value hierarchy.

Unconsolidated Variable Interest Entities

The Company holds variable interests in certain VIEs which are not consolidated, as it has been determined that Apollo is not the primary beneficiary. The following table presents the maximum exposure to losses relating to these VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary.

	As of September 30, 2022		(2)	As of December 31, 2021		(2)
Apollo Exposure(1)	$	287,976		$	240,871
(1) Represents Apollo’s direct investment in those entities in which Apollo holds a significant variable interest and certain other investments. Additionally, cumulative performance allocations are subject to reversal in the event of future losses, as discussed in note 15.
(2) Some amounts included are a quarter in arrears.

-31-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

7. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level:

	As of September 30, 2022
	Level I		Level II		Level III			NAV		Total
Assets
Cash and cash equivalents(1)	$	1,118,305	$	—	$	—		$	—	$	1,118,305
Restricted cash and cash equivalents(2)	696,712		—		—			—		696,712
Cash and cash equivalents of VIEs	84,132		—		—			—		84,132
U.S. Treasury securities(3)	1,372,048		—		—			—		1,372,048
Investments, at fair value	147,061		35,615		939,742		(4)	8,991		1,131,409
Investments of VIEs, at fair value	17,185		1,412		935,396			62,826		1,016,819
Due from related parties(5)	—		—		41,911			—		41,911
Derivative assets(6)	—		40,806		7,891			—		48,697
Total Assets	$	3,435,443	$	77,833	$	1,924,940		$	71,817	$	5,510,033
Liabilities
Other liabilities of VIEs, at fair value	—		2,032		—			—		2,032
Contingent consideration obligations(7)	—		—		103,002			—		103,002
Other liabilities(8)	1,518		—		—			—		1,518
Total Liabilities	$	1,518	$	2,032	$	103,002		$	—	$	106,552

-32-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

	As of December 31, 2021
	Level I		Level II		Level III			NAV		Total
Assets
Cash and cash equivalents(1)	$	917,183	$	—	$	—		$	—	$	917,183
Restricted cash and cash equivalents(2)	707,885		—		—			—		707,885
Cash and cash equivalents of VIEs	463,266		—		—			—		463,266
U.S. Treasury securities(3)	1,687,105		—		—			—		1,687,105
Investments
Investment in Athene Holding	4,548,048		—		—			—		4,548,048
Other investments	48,493		46,267		946,184		(4)	—		1,040,944
Total investments	4,596,541		46,267		946,184			—		5,588,992
Investments of VIEs, at fair value	6,232		1,055,421		13,187,803			487,595		14,737,051
Due from related parties(5)	—		—		47,835			—		47,835
Derivative assets(6)	—		7,436		—			—		7,436
Total Assets	$	8,378,212	$	1,109,124	$	14,181,822		$	487,595	$	24,156,753
Liabilities
Debt of VIEs, at fair value	$	—	$	446,029	$	7,496,479		$	—	$	7,942,508
Other liabilities of VIEs, at fair value	—		3,111		31,090			557		34,758
Contingent consideration obligations(7)	—		—		125,901			—		125,901
Other liabilities(8)	47,961		—		—			—		47,961
Derivative liabilities(6)	—		1,520		—			—		1,520
Total Liabilities	$	47,961	$	450,660	$	7,653,470		$	557	$	8,152,648
(1) Cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $0.6 million and $1.8 million, respectively, of cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information.
(2) Restricted cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $694.6 million and $690.2 million, respectively, of restricted cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information.
(3) U.S. Treasury securities as of September 30, 2022 and December 31, 2021 includes $347.2 million and $1.2 billion, respectively, of U.S. Treasury securities held by consolidated SPACs. Refer to note 14 for further information.
(4) Investments as of September 30, 2022 and December 31, 2021 excludes $178.1 million and $175.8 million, respectively, of performance allocations classified as Level III related to certain investments for which the Company has elected the fair value option. The Company’s policy is to account for performance allocations as investments.
(5) Due from related parties represents a receivable from a fund.
(6) Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the condensed consolidated statements of financial condition.
(7) Profit sharing payable includes contingent obligations classified as Level III.
(8) Other liabilities as of September 30, 2022 includes the publicly traded warrants of APSG II. Other liabilities as of December 31, 2021 includes the publicly traded warrants of APSG I and APSG II.

-33-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

The following tables summarize the changes in fair value in financial assets measured at fair value for which Level III inputs have been used to determine fair value:

	For the Three Months Ended September 30, 2022
	Investments and Derivative Assets		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	1,079,778	$	843,266	$	1,923,044
Purchases	10,115		973,126		983,241
Sales of investments/distributions	(116,986)		(863,413)		(980,399)
Net realized gains (losses)	51,653		(1,296)		50,357
Changes in net unrealized gains (losses)	(35,848)		(16,287)		(52,135)
Cumulative translation adjustment	(41,079)		—		(41,079)
Balance, End of Period	$	947,633	$	935,396	$	1,883,029
Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date	$	11,894	$	—	$	11,894
Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		(2,169)		(2,169)

	For the Three Months Ended September 30, 2021
	Other Investments		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	389,787	$	11,877,952	$	12,267,739
Transfer out due to deconsolidation	—		(924)		(924)
Purchases	204,587		284,605		489,192
Sale of investments/distributions	—		(344,659)		(344,659)
Net realized gains (losses)	16,488		16,616		33,104
Changes in net unrealized gains (losses)	19,766		79,212		98,978
Cumulative translation adjustment	(1,873)		(10,166)		(12,039)
Transfer into Level III(1)	—		31,444		31,444
Transfer out of Level III(1)	(2,422)		(194,955)		(197,377)
Balance, End of Period	$	626,333	$	11,739,125	$	12,365,458
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	19,766	$	—	$	19,766
Change in net unrealized gains included in net gains (losses) from investment activities of consolidated VIEs related to investments still held at reporting date	—		79,514		79,514
(1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from external pricing services.

-34-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

	For the Nine Months Ended September 30, 2022
	Investments and Derivative Assets		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	946,184	$	13,187,803	$	14,133,987
Net transfer in (out) due to consolidation (deconsolidation)	21,710		(14,190,236)		(14,168,526)
Purchases	115,817		4,444,308		4,560,125
Sale of investments/distributions	(121,118)		(2,702,495)		(2,823,613)
Net realized gains (losses)	48,687		19,861		68,548
Changes in net unrealized gains (losses)	23,240		160,094		183,334
Cumulative translation adjustment	(87,891)		(10,808)		(98,699)
Transfer into Level III(1)	1,004		29,803		30,807
Transfer out of Level III(1)	—		(2,934)		(2,934)
Balance, End of Period	$	947,633	$	935,396	$	1,883,029
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	72,254	$	—	$	72,254
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		6,613		6,613

	For the Nine Months Ended September 30, 2021
	Other Investments		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	369,772	$	10,962,980	$	11,332,752
Transfer out due to consolidation	—		(230,641)		(230,641)
Purchases	204,587		1,967,028		2,171,615
Sale of investments/distributions	(3,235)		(1,150,592)		(1,153,827)
Net realized gains (losses)	17,556		29,591		47,147
Changes in net unrealized gains (losses)	48,882		411,359		460,241
Cumulative translation adjustment	(9,513)		(24,414)		(33,927)
Transfer into Level III(1)	706		41,329		42,035
Transfer out of Level III(1)	(2,422)		(267,515)		(269,937)
Balance, End of Period	$	626,333	$	11,739,125	$	12,365,458
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	48,882	$	—	$	48,882
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		278,471		278,471
(1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from external pricing services.

-35-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

The following tables summarize the changes in fair value in financial liabilities measured at fair value for which Level III inputs have been used to determine fair value:

	For the Three Months Ended September 30, 2022
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	104,202	$	—	$	104,202
Changes in net unrealized (gains) losses(1)	(1,200)		—		(1,200)
Balance, End of Period	$	103,002	$	—	$	103,002

	For the Three Months Ended September 30, 2021
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	128,984	$	7,206,174	$	7,335,158
Issuances	—		15,980		15,980
Repayments	(7,495)		(29,510)		(37,005)
Net realized (gains) losses	—		(1,681)		(1,681)
Changes in net unrealized (gains) losses(1)	(1,902)		13,859		11,957
Cumulative translation adjustment	—		(10,293)		(10,293)
Transfers into Level III (2)	—		256		256
Balance, End of Period	$	119,587	$	7,194,785	$	7,314,372
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date	$	—	$	4,672	$	4,672

	For the Nine Months Ended September 30, 2022
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	125,901	$	7,527,569	$	7,653,470
Transfer out due to deconsolidation	—		(8,626,153)		(8,626,153)
Issuances	—		1,645,025		1,645,025
Payments	(13,259)		(518,773)		(532,032)
Net realized (gains) losses	—		(480)		(480)
Changes in net unrealized (gains) losses(1)	(9,640)		(16,368)		(26,008)
Cumulative translation adjustment	—		(10,820)		(10,820)
Balance, End of Period	$	103,002	$	—	$	103,002

-36-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

	For the Nine Months Ended September 30, 2021
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	119,788	$	7,100,620	$	7,220,408
Issuances	—		327,388		327,388
Payments	(20,609)		(301,414)		(322,023)
Net realized (gains) losses	—		9,049		9,049
Changes in net unrealized (gains) losses(1)	20,408		83,005		103,413
Cumulative translation adjustment	—		(24,316)		(24,316)
Transfers into Level III (2)	—		453		453
Balance, End of Period	$	119,587	$	7,194,785	$	7,314,372
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date	$	—	$	93,743	$	93,743
(1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations.
(2) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services.

The following tables summarize the quantitative inputs and assumptions used for financial assets and liabilities categorized as Level III under the fair value hierarchy:

	As of September 30, 2022
	Fair Value		Valuation Techniques	Unobservable Inputs	Ranges	Weighted Average (1)
Financial Assets
Investments	$	512,207	Embedded value	N/A	N/A	N/A
	121,666		Discounted cash flow	Discount rate	8.9% - 52.8%	29.4%
	305,869		Adjusted transaction value	N/A	N/A	N/A
Due from related parties	41,911		Discounted cash flow	Discount rate	15.0%	15.0%
Derivative assets	7,891		Option model	Volatility rate	38.8% - 40.0%	39.7%
Investments of consolidated VIEs:
Bank loans	491,893		Adjusted transaction value	N/A	N/A	N/A
			Discounted cash flow	Discount rate	7.1% - 32.7%	7.6%
Equity securities	411,320		Dividend discount model	Discount rate	13.9%	13.9%
Bonds	32,035		Discounted cash flow	Discount rate	7.9%	7.9%
			Adjusted transaction value	N/A	N/A	N/A
Warrants	148		Discounted cash flow	Discount rate	15.4%	15.4%
Total Financial Assets	$	1,924,940
Financial Liabilities
Contingent Consideration Obligation	103,002		Discounted cash flow	Discount rate	19.0%	19.0%
Total Financial Liabilities	$	103,002

-37-

APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

	As of December 31, 2021
	Fair Value		Valuation Techniques	Unobservable Inputs	Ranges	Weighted Average (1)
Financial Assets
Other investments	$	516,221	Embedded value	N/A	N/A	N/A
	169,625		Discounted cash flow	Discount rate	14.0% - 52.8%	26.4%
	260,338		Adjusted transaction value	N/A	N/A	N/A
Due from related parties	47,835		Discounted cash flow	Discount rate	16.0%	16.0%
Investments of consolidated VIEs:
Equity securities	4,144,661		Discounted cash flow	Discount rate	3.0% - 19.0%	10.4%
			Dividend discount model	Discount rate	13.7%	13.7%
			Market comparable companies	NTAV multiple	1.25x	1.25x
			Adjusted transaction value	Purchase multiple	1.25x	1.25x
			Adjusted transaction value	N/A	N/A	N/A
Bank loans	4,569,873		Discounted cash flow	Discount rate	1.8% - 15.6%	4.3%
			Adjusted transaction value	N/A	N/A	N/A
Profit participating notes	2,849,150		Discounted cash flow	Discount rate	8.7% - 12.5%	12.4%
			Adjusted transaction value	N/A	N/A	N/A
Real estate	511,648		Discounted cash flow	Capitalization rate	4.0% - 5.8%	5.3%
			Discounted cash flow	Discount rate	5.0% - 12.5%	7.3%
			Discounted cash flow	Terminal capitalization rate	8.3%	8.3%
			Direct capitalization	Capitalization rate	5.5% - 8.5%	6.2%
			Direct capitalization	Terminal capitalization rate	6.0% - 12.0%	6.9%
Bonds	50,885		Discounted cash flow	Discount rate	4.0% - 7.0%	6.1%
			Third party pricing	N/A	N/A	N/A
Other equity investments	1,061,586		Discounted cash flow	Discount rate	11.8% -12.5%	12.1%
			Adjusted transaction value	N/A	N/A	N/A
Total Investments of Consolidated VIEs	13,187,803
Total Financial Assets	$	14,181,822
Financial Liabilities
Liabilities of Consolidated VIEs:
Secured loans	$	4,311,348	Discounted cash flow	Discount rate	1.4% - 10.0%	2.8%
Subordinated notes	3,164,491		Discounted cash flow	Discount rate	4.5% - 11.9%	5.8%
Participating equity	20,640		Discounted cash flow	Discount rate	15.0%	15.0%
Other liabilities	31,090		Discounted cash flow	Discount rate	3.7% - 9.3%	6.3%
Total Liabilities of Consolidated VIEs	7,527,569
Contingent Consideration Obligation	125,901		Discounted cash flow	Discount rate	18.5%	18.5%
Total Financial Liabilities	$	7,653,470

N/A        Not applicable

EBITDA        Earnings before interest, taxes, depreciation, and amortization

NTAV        Net tangible asset value

(1)      Unobservable inputs were weighted based on the fair value of the investments included in the range.

Fair Value Measurement of Investment in Athene Holding

At December 31, 2021, the fair value of Apollo’s Level I investment in Athene Holding was estimated using the closing market price of Athene Holding shares of $83.33. Following the Mergers, AAM no longer holds an interest in AHL as further described in note 14.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Discounted Cash Flow Model

When a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of an investment and the contingent consideration obligations; conversely decreases in the discount rate can significantly increase the fair value of an investment and the contingent consideration obligations.

Consolidated VIEs’ Investments

The significant unobservable inputs used in the fair value measurement of the equity securities include the discount rate applied, purchase multiple and net tangible asset value in the valuation models. These unobservable inputs in isolation can cause significant increases or decreases in fair value. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks.

The significant unobservable inputs used in the fair value measurement of bank loans, bonds, profit participating notes, warrants and other equity investments are discount rates. Significant increases (decreases) in discount rates would result in significantly lower (higher) fair value measurements.

The significant unobservable inputs used in the fair value measurement of real estate are discount rates and capitalization rates. Significant increases (decreases) in any discount rates or capitalization rates in isolation would result in significantly lower (higher) fair value measurements.

Certain investments of VIEs are valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determine an independent fair value.

Consolidated VIEs’ Liabilities

The debt obligations of certain consolidated VIEs, that are CLOs, were measured on the basis of the fair value of the financial assets of those CLOs as the financial assets were determined to be more observable and, as a result, categorized as Level II in the fair value hierarchy.

The significant unobservable inputs used in the fair value measurement of the Company’s liabilities of consolidated VIEs are discount rates. Significant increases (decreases) in discount rates would result in a significantly lower (higher) fair value measurement.

Certain liabilities of VIEs are valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determine an independent fair value.

Contingent Consideration Obligations

The significant unobservable input used in the fair value measurement of the contingent consideration obligations is the discount rate applied in the valuation models. This input in isolation can cause significant increases or decreases in fair value. The discount rate was based on the hypothetical cost of equity in connection with the acquisition of Stone Tower. See note 15 for further discussion of the contingent consideration obligations.

Valuation of Underlying Investments

As discussed previously, the underlying entities that the Company manages and invests in are primarily investment companies which account for their investments at estimated fair value.

On a quarterly basis, Apollo utilizes valuation committees consisting of members from senior management, to review and approve the valuation results related to the investments of the funds it manages. For certain publicly traded vehicles managed by the Company, a review is performed by an independent board of directors. The Company also retains external valuation firms to provide third-party valuation consulting services to Apollo, which consist of certain limited procedures that management identifies and requests them to perform. The limited procedures provided by the external valuation firms assist management with validating their valuation results or determining fair value. The Company performs various back-testing procedures to validate their valuation approaches, including comparisons between expected and observed outcomes, forecast evaluations and variance analyses. However, because of the inherent uncertainty of valuation, those estimated values may differ

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.

Yield Investments

Yield investments are generally valued based on third party vendor prices and/or quoted market prices and valuation models. Valuations using quoted market prices are based on the average of the “bid” and the “ask” quotes provided by multiple brokers wherever possible without any adjustments. Apollo will designate certain brokers to use to value specific securities. In determining the designated brokers, Apollo considers the following: (i) brokers with which Apollo has previously transacted, (ii) the underwriter of the security and (iii) active brokers indicating executable quotes. In addition, when valuing a security based on broker quotes wherever possible Apollo tests the standard deviation amongst the quotes received and the variance between the concluded fair value and the value provided by a pricing service. When broker quotes are not available Apollo considers the use of pricing service quotes or other sources to mark a position. When relying on a pricing service as a primary source, Apollo (i) analyzes how the price has moved over the measurement period, (ii) reviews the number of brokers included in the pricing service’s population, if available, and (iii) validates the valuation levels with Apollo’s pricing team and traders.

Debt securities that are not publicly traded or whose market prices are not readily available are valued at fair value utilizing a model based approach to determine fair value. Valuation approaches used to estimate the fair value of illiquid credit investments also may include the income approach, as described below. The valuation approaches used consider, as applicable, market risks, credit risks, counterparty risks and foreign currency risks.

Equity and Hybrid Investments

The majority of illiquid equity and hybrid investments are valued using the market approach and/or the income approach, as described below.

Market Approach

The market approach is driven by current market conditions, including actual trading levels of similar companies and, to the extent available, actual transaction data of similar companies. Judgment is required by management when assessing which companies are similar to the subject company being valued. Consideration may also be given to any of the following factors: (1) the subject company’s historical and projected financial data; (2) valuations given to comparable companies; (3) the size and scope of the subject company’s operations; (4) the subject company’s individual strengths and weaknesses; (5) expectations relating to the market’s receptivity to an offering of the subject company’s securities; (6) applicable restrictions on transfer; (7) industry and market information; (8) general economic and market conditions; and (9) other factors deemed relevant. Market approach valuation models typically employ a multiple that is based on one or more of the factors described above.

Enterprise value as a multiple of EBITDA is common and relevant for most companies and industries, however, other industry specific multiples are employed where available and appropriate. Sources for gaining additional knowledge related to comparable companies include public filings, annual reports, analyst research reports and press releases. Once a comparable company set is determined, Apollo reviews certain aspects of the subject company’s performance and determines how its performance compares to the group and to certain individuals in the group. Apollo compares certain measurements such as EBITDA margins, revenue growth over certain time periods, leverage ratios and growth opportunities. In addition, Apollo compares the entry multiple and its relation to the comparable set at the time of acquisition to understand its relation to the comparable set on each measurement date.

Income Approach

The income approach provides an indication of fair value based on the present value of cash flows that a business or security is expected to generate in the future. The most widely used methodology for the income approach is a discounted cash flow method. Inherent in the discounted cash flow method are significant assumptions related to the subject company’s expected results, the determination of a terminal value and a calculated discount rate, which is normally based on the subject company’s weighted average cost of capital, or “WACC.” The WACC represents the required rate of return on total capitalization, which is comprised of a required rate of return on equity, plus the current tax-effected rate of return on debt, weighted by the relative percentages of equity and debt that are typical in the industry. The most critical step in determining the appropriate WACC for each subject company is to select companies that are comparable in nature to the subject company and the credit quality of the subject company. Sources for gaining additional knowledge about the comparable companies include public filings, annual reports, analyst research reports and press releases. The general formula then used for calculating the WACC considers the

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

after-tax rate of return on debt capital and the rate of return on common equity capital, which further considers the risk-free rate of return, market beta, market risk premium and small stock premium, if applicable. The variables used in the WACC formula are inferred from the comparable market data obtained. The Company evaluates the comparable companies selected and concludes on WACC inputs based on the most comparable company or analyzes the range of data for the investment.

The value of liquid investments, where the primary market is an exchange (whether foreign or domestic), is determined using period end market prices. Such prices are generally based on the close price on the date of determination.

Certain of the funds Apollo manages may also enter into foreign currency exchange contracts, total return swap contracts, credit default swap contracts, and other derivative contracts, which may include options, caps, collars and floors. Foreign currency exchange contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. If securities are held at the end of the period, the changes in value are recorded in income as unrealized. Realized gains or losses are recognized when contracts are settled. Total return swap and credit default swap contracts are recorded at fair value as an asset or liability with changes in fair value recorded as unrealized appreciation or depreciation. Realized gains or losses are recognized at the termination of the contract based on the difference between the close-out price of the total return or credit default swap contract and the original contract price. Forward contracts are valued based on market rates obtained from counterparties or prices obtained from recognized financial data service providers.

8. OTHER ASSETS

Other assets consisted of the following:

	As of September 30, 2022		As of December 31, 2021
Fixed assets	$	403,095	$	256,252
Less: Accumulated depreciation and amortization	(148,699)		(130,072)
Fixed assets, net	254,396		126,180
Deferred equity-based compensation(1)	240,759		282,900
Intangible assets, net(2)	185,146		14,846
Commitment asset(3)	154,563		—
Prepaid expenses	60,486		57,765
Tax receivables	55,040		30,334
Other	134,031		73,876
Total Other Assets	$	1,084,421	$	585,901
(1) Deferred equity-based compensation relates to the value of equity-based awards that have been or are expected to be granted in connection with the settlement of certain profit sharing arrangements. A corresponding amount for awards expected to be granted of $181.1 million and $210.6 million, as of September 30, 2022 and December 31, 2021, respectively, is included in other liabilities on the condensed consolidated statements of financial condition.
(2) Includes intangible assets from the acquisition of Griffin Capital's U.S. asset management business.
(3) Represents a commitment from an institutional investor as part of a strategic transaction.

Depreciation expense was $8.3 million and $4.8 million for the three months ended September 30, 2022 and 2021, respectively, and $22.2 million and $13.1 million for the nine months ended September 30, 2022 and 2021, respectively, and is presented as a component of general, administrative and other expense in the condensed consolidated statements of operations.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

9. LEASES

Apollo has operating leases for office space, data centers, and certain equipment under various lease agreements.

The table below presents operating lease expenses recorded in general, administrative and other in the condensed consolidated statements of operations.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease cost	$	18,002	$	10,916	$	51,283	$	33,930

The following table presents supplemental cash flow information related to operating leases:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Operating cash flows for operating leases	$	14,285	$	10,971	$	32,851	$	23,465

As of September 30, 2022, the Company’s total lease payments by maturity are presented in the following table:

	Operating Lease Payments
Remaining 2022	$	15,523
2023	67,832
2024	67,981
2025	67,244
2026	62,739
Thereafter	511,882
Total lease payments	$	793,201
Less imputed interest	(124,120)
Present value of lease payments	$	669,081

The Company has undiscounted future operating lease payments of $127.3 million related to leases that have not commenced that were entered into as of September 30, 2022. Such lease payments are not yet included in the table above or the Company’s condensed consolidated statements of financial condition as lease assets and lease liabilities. These operating leases are anticipated to commence in 2023 or later with lease terms of approximately 12 to 14 years.

Supplemental information related to leases is as follows:

	As of September 30, 2022		As of September 30, 2021
Weighted average remaining lease term (in years)	12.5		13.3
Weighted average discount rate	2.7	%	2.9	%

10. INCOME TAXES

The Company’s income tax provision totaled $22.1 million and $101.4 million for the three months ended September 30, 2022, and 2021, respectively, and $163.9 million and $498.7 million for the nine months ended September 30, 2022 and 2021, respectively. The Company’s effective tax rate was 20.5% and 13.8% for the three months ended September 30, 2022 and 2021, respectively, and 9.6% and 12.0% for the nine months ended September 30, 2022 and 2021, respectively.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “IRA”). The IRA contains a number of tax-related provisions including a 15% minimum corporate income tax on certain large corporations as well as an excise tax on stock repurchases. It is unclear how the IRA will be implemented by the U.S. Department of the Treasury through regulation. The Company is evaluating the impact of the IRA on its tax liability, which tax liability could also be affected by how the provisions of the IRA are implemented through such regulation. The Company will continue to evaluate the IRA’s impact as further information becomes available.

Under U.S. GAAP, a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Company recorded $15.7 million of unrecognized tax benefits as of September 30, 2022, for uncertain tax positions. Approximately all of the unrecognized tax benefits, if recognized, would affect the effective tax rate. The Company does not anticipate a material change to its unrecognized tax benefits over the next twelve months.

The primary jurisdictions in which the Company operates and incurs income taxes are the United States and the United Kingdom. There are no unremitted earnings with respect to the United Kingdom and other foreign jurisdictions.

In the normal course of business, the Company is subject to examination by federal, state, local and foreign tax authorities. As of September 30, 2022, the Company’s U.S. federal, state, local and foreign income tax returns for the years 2018 through 2020 are open under the general statute of limitations provisions and therefore subject to examination. Currently, the Internal Revenue Service is examining the tax returns of the Company and certain subsidiaries for the 2019 and 2020 tax years. The State and City of New York are examining certain subsidiaries’ tax returns for tax years 2011 to 2020. The United Kingdom authorities are currently examining certain subsidiaries’ tax returns for tax year 2017. There are other examinations ongoing in other foreign jurisdictions, which the Company operates. No provisions with respect to these examinations have been recorded, other than the unrecognized tax benefits discussed above.

The Company has historically recorded deferred tax assets resulting from the step-up in the tax basis of assets, including intangibles resulting from exchanges of AOG Units for Class A shares by the Former Managing Partners and Contributing Partners. A related liability has historically been recorded in “Due to Related Parties” in the condensed consolidated statements of financial condition for the expected payments under the tax receivable agreement entered into by and among the Company, the Former Managing Partners, the Contributing Partners, and other parties thereto (as amended, the “tax receivable agreement”) (see note 14). The benefit the Company has historically obtained from the difference in the tax asset recognized and the related liability resulted in an increase to additional paid in capital. The amortization period for the portion of the increase in tax basis related to intangibles is 15 years. The realization of the remaining portion of the increase in tax basis relates to the disposition of the underlying assets to which the step-up is attributed. The associated deferred tax assets reverse at the time of the corresponding asset disposition.

After the Mergers, the Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the tax receivable agreement during the nine months ended September 30, 2022. The table below presents the impact to the deferred tax asset, tax receivable agreement liability and additional paid in capital related to the exchange of AOG Units for Class A shares for the nine months ended September 30, 2021.

Exchange of AOG Units for Class A shares	Increase in Deferred Tax Asset		Increase in Tax Receivable Agreement Liability		Increase to Additional Paid In Capital
For the Nine Months Ended September 30, 2021	$	292,844	$	243,157	$	49,687

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

11. DEBT

Debt consisted of the following:

		As of September 30, 2022					As of December 31, 2021
	Maturity Date	Outstanding Balance		Fair Value			Outstanding Balance		Fair Value
4.00% 2024 Senior Notes(1)(2)	May 30, 2024	$	498,959	$	486,201	(4)	$	498,469	$	530,052	(4)
4.40% 2026 Senior Notes(1)(2)	May 27, 2026	498,114		474,335		(4)	497,730		553,055		(4)
4.87% 2029 Senior Notes(1)(2)	February 15, 2029	674,809		629,825		(4)	674,786		777,703		(4)
2.65% 2030 Senior Notes(1)(2)	June 5, 2030	495,375		395,079		(4)	494,928		506,094		(4)
4.77% 2039 Senior Secured Guaranteed Notes(1)(2)		—		—		(6)	317,985		369,041		(5)
5.00% 2048 Senior Notes(1)(2)	March 15, 2048	296,899		263,572		(4)	296,757		397,191		(4)
4.95% 2050 Subordinated Notes(1)(2)	January 14, 2050	296,714		256,913		(4)	296,675		308,687		(4)
1.70% Secured Borrowing II(1)	April 15, 2032	16,663		15,708		(3)	19,334		19,239		(3)
1.30% 2016 AMI Term Facility I(1)	January 15, 2025	16,536		16,536		(3)	19,186		19,186		(3)
1.40% 2016 AMI Term Facility II(1)	July 23, 2023	15,986		15,986		(3)	18,546		18,546		(3)
Total Debt		$	2,810,055	$	2,554,155		$	3,134,396	$	3,498,794
(1) Interest rate is calculated as weighted average annualized.
(2) Includes amortization of note discount, as applicable, totaling $16.3 million and $25.1 million as of September 30, 2022 and December 31, 2021, respectively. Outstanding balance is presented net of unamortized debt issuance costs.
(3) Fair value is based on obtained broker quotes. These notes are classified as a Level III liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from external pricing services. For instances where broker quotes are not available, a discounted cash flow method is used to obtain a fair value.
(4) Fair value is based on obtained broker quotes. These notes are classified as a Level II liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from external pricing services.
(5) Fair value is based on a discounted cash flow method. These notes are classified as a Level III liability within the fair value hierarchy.
(6) There is no outstanding balance as of September 30, 2022. These notes were transferred to a VIE consolidated by Athene during the three months ended March 31, 2022.

As of September 30, 2022, the indentures governing the 2024 Senior Notes, the 2026 Senior Notes, the 2029 Senior Notes, the 2030 Senior Notes, the 2048 Senior Notes and the 2050 Subordinated Notes (the “Indentures”) include covenants that restrict the ability of AMH and, as applicable, the guarantors of the notes under the Indentures to incur indebtedness secured by liens on voting stock or profit participating equity interests of their respective subsidiaries, or merge, consolidate or sell, transfer or lease assets. The Indentures also provide for customary events of default.

Apollo’s debt obligations contain various customary loan covenants. As of September 30, 2022, the Company was not aware of any instances of non-compliance with the financial covenants contained in the documents governing the Company’s debt obligations.

Credit Facilities

The following table represents the Company’s credit facilities as of September 30, 2022:

Instrument/Facility	Borrowing Date	Maturity Date	Administrative Agent	Key terms
AMH credit facility1	November 23, 2020	November 23, 2025	Citibank, N.A.	The commitment fee on the $750 million undrawn AMH credit facility as of September 30, 2022 was 0.09%.
1 Refer below for details regarding the AMH credit facility refinancing, which occurred during the fourth quarter of 2022.

Borrowings under the AMH credit facility may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions. As of September 30, 2022, AMH, the borrower under the facility, could incur incremental facilities in an aggregate amount not to exceed $250 million plus additional amounts so long as AMH was in compliance with a net leverage ratio not to exceed 4.00 to 1.00.

As of September 30, 2022, there were no amounts outstanding under the AMH credit facility and the Company was in compliance with all covenants under the facility.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

On October 12, 2022 (“Closing Date”), AMH, as borrower, entered into a new $1.0 billion revolving credit facility with Citibank, N.A., as administrative agent, which matures on October 12, 2027 (“2022 AMH credit facility”). In addition, AMH may incur incremental facilities in respect of the 2022 AMH credit facility in an aggregate amount not to exceed $250 million plus additional amounts so long as AMH is in compliance with a net leverage ratio not to exceed 4.00 to 1.00. The 2022 AMH credit facility refinanced the existing AMH credit facility dated as of November 23, 2020. As of the Closing Date, the existing AMH credit facility was undrawn and the facility and all related loan documents were terminated.

Borrowings under the 2022 AMH credit facility may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions. The 2022 AMH credit facility contains various standard affirmative and negative covenants with which AMH and its subsidiaries must comply, including maintaining minimum fee-generating assets under management of not less than $150 billion and a maximum total net leverage ratio not to exceed 4.00 to 1.00.

The interest rate on the 2022 AMH credit facility as of the Closing Date was based on adjusted Term SOFR and the applicable margin was 0.875%. The undrawn revolving commitment fee was 0.08% as of the Closing Date. As of November 8, 2022, there were no amounts outstanding under the 2022 AMH credit facility.

The following table presents the interest expense incurred related to the Company’s debt:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Total Interest Expense(1)	$	32,219	$	34,820	$	96,644	$	104,433
(1) Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable.

12. EQUITY-BASED COMPENSATION

Under AGM’s Equity Plan, AGM is permitted to grant equity awards representing ownership interests in AGM common stock to employees of AAM. Equity-based awards granted to employees and non-employees as compensation are measured based on the grant date fair value of the award, which considers the public share price of AGM’s common stock subject to certain discounts, as applicable.

AGM grants both service and performance-based awards. The estimated total grant date fair value for service-based awards is charged to compensation expense on a straight-line basis over the vesting period, which is generally one to six years from the date of grant. Certain service-based awards are tied to profit sharing arrangements in which a portion of the performance fees distributed to the general partner are required to be used by employees to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under AGM’s Equity Plan. Performance-based awards vest subject to continued employment and AGM’s achievement of specified performance goals. In accordance with U.S. GAAP, equity-based compensation expense for performance grants are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. Equity-based awards that do not require future service (i.e., vested awards) are expensed immediately.

For the three months ended September 30, 2022 and September 30, 2021, AAM recorded equity-based compensation expense of $104.2 million and $56.2 million, respectively. For the nine months ended September 30, 2022 and September 30, 2021, AAM recorded equity-based compensation expense of $372.9 million and $165.7 million, respectively. As of September 30, 2022, there was $706.7 million of estimated unrecognized compensation expense related to unvested RSU awards. This cost is expected to be recognized over a weighted-average period of 2.9 years.

Service-Based Awards

During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded service-based grants of 3.6 million RSUs and 2.3 million RSUs with a grant date fair value of $219.8 million and $117.3 million, respectively.

During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on service-based awards of $49.3 million and $24.3 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on service-based awards of $155.5 million and $66.5 million, respectively.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Performance-Based Awards

During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded performance-based grants of 2.9 million and 2.1 million RSUs to certain employees with a grant date fair value of $167.4 million and $97.6 million, respectively, which primarily vest subject to continued employment and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation.

During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on performance-based awards of $39.1 million and $21.1 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on performance-based awards of $163.1 million and $65.0 million, respectively.

In December 2021, the Company awarded one-time grants to the Co-Presidents of 6 million RSUs which vest on a cliff basis subject to continued employment over five years, with 2 million of those RSUs also subject to AGM’s achievement of certain fee related earnings and spread related earnings per share metrics. During the three and nine months ended September 30, 2022, the Company recorded equity-based compensation expense of $13.9 million and $41.7 million, respectively, for service-based awards and $5.9 million and $17.6 million, respectively, for performance-based awards, each related to these one-time grants.

Restricted Stock Awards

During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded 0.5 million and 0.6 million restricted stock awards from profit sharing arrangements with a grant date fair value of $33.5 million and $36.4 million, respectively.

During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on restricted stock from profit sharing arrangements of $13.2 million and $8.3 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on restricted stock from profit sharing arrangements of $46.1 million and $19.2 million, respectively.

13. EQUITY

Preferred Stock

The Company has 11,000,000 Series A Preferred shares and 12,000,000 Series B Preferred shares issued and outstanding as of September 30, 2022.

Dividends on the Preferred shares are discretionary and non-cumulative. During 2022, quarterly cash dividends were $0.398438 per Series A Preferred share and Series B Preferred share.

Subject to certain exceptions, unless dividends have been declared and paid or declared and set apart for payment on the Preferred shares for a quarterly dividend period, during the remainder of that dividend period Apollo may not declare or pay or set apart payment for dividends on any shares of common stock or any other equity securities that the Company may issue in the future ranking, as to the payment of dividends, junior to the Preferred shares (“Junior Stock”) and Apollo may not repurchase any Junior Stock.

The Series A Preferred shares and the Series B Preferred shares may be redeemed at Apollo’s option, in whole or in part, at any time on or after March 15, 2022 and March 15, 2023, respectively, at a price of $25.00 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. Holders of the Preferred shares have no right to require the redemption of the Preferred shares and there is no maturity date.

If a certain change of control event or a certain tax redemption event occurs prior to March 15, 2023 for the Series B Preferred shares, the Series B Preferred shares may be redeemed at Apollo’s option, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such change of control event or such tax redemption event, as applicable, at a price of $25.25 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. If a certain rating agency event occurs prior to March 15, 2023, the Series B Preferred shares may be redeemed at Apollo’s option, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such rating agency event, at a price of $25.50 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. If (i) a change of control event occurs and (ii) Apollo does not give notice prior

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

to the 31st day following the change of control event to redeem all the outstanding Preferred shares, the dividend rate per annum on the Preferred shares will increase by 5.00%, beginning on the 31st day following such change of control event.

The Preferred shares are not convertible into common stock and have no voting rights, except in limited circumstances as provided in the Company’s certificate of incorporation.

Non-Controlling Interests

The table below presents equity interests in Apollo’s consolidated, but not wholly-owned, subsidiaries and funds. Net income and comprehensive income attributable to non-controlling interests consisted of the following: 

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
Net income attributable to non-controlling interests in consolidated entities:
Interest in management companies and a co-investment vehicle(1)	$	267		$	1,866		$	3,157		$	4,464
Other consolidated entities	17,528			110,703			273,827			294,959
Net income attributable to non-controlling interests in consolidated entities	$	17,795		$	112,569		$	276,984		$	299,423
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net income	$	85,352		$	631,417		$	1,551,194		$	3,655,380
Net income attributable to non-controlling interests in consolidated entities	(17,795)			(112,569)			(276,984)			(299,423)
Net income after non-controlling interests in consolidated entities	67,557			518,848			1,274,210			3,355,957
Adjustments:
Income tax provision(2)	22,069			101,434			163,870			498,731
NYC UBT and foreign tax benefit(3)	(19,083)			(11,213)			(36,414)			(24,694)
Net income in non-Apollo Operating Group entities	9,414			1,099			30,845			1,103
Series A Preferred share dividends	(4,383)			(4,382)			(13,149)			(13,148)
Series B Preferred share dividends	(4,781)			(4,782)			(14,344)			(14,344)
Total adjustments	3,236			82,156			130,808			447,648
Net income after adjustments	70,793			601,004			1,405,018			3,803,605
Weighted average ownership percentage of Apollo Operating Group	42.6		%	44.1		%	42.6		%	45.8		%
Net income attributable to non-controlling interests in Apollo Operating Group	$	44,127		$	260,526		$	585,691		$	1,761,018
Net income attributable to non-controlling interests	$	61,922		$	373,095		$	862,675		$	2,060,441
Other comprehensive loss attributable to non-controlling interests	(32,280)			(10,082)			(66,133)			(20,275)
Comprehensive income attributable to non-controlling interests	$	29,642		$	363,013		$	796,542		$	2,040,166
(1) Reflects the remaining interest held by certain individuals who receive an allocation of income from certain of the credit funds managed by Apollo.
(2) Reflects all taxes recorded in our condensed consolidated statements of operations. Of this amount, U.S. federal, state, and local corporate income taxes attributable to AAM and its subsidiaries are added back to income of the Apollo Operating Group before calculating non-controlling interests as the income allocable to the Apollo Operating Group is not subject to such taxes.
(3) Reflects NYC UBT and foreign taxes that are attributable to the Apollo Operating Group and its subsidiaries related to its operations in the U.S. as partnerships and in non-U.S. jurisdictions as corporations. As such, these amounts are considered in the income attributable to the Apollo Operating Group.

Redeemable Non-Controlling Interests

As discussed in note 2, redeemable non-controlling interests primarily represent the shares issued by the Company’s consolidated SPACs. The table below presents the activities associated with the redeemable non-controlling interests.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

	For the Nine Months Ended September 30,
	2022		2021
Balance at beginning of period	$	1,770,034	$	782,702
Redemption of non-controlling interests	(776,272)		—
Deconsolidation of SPAC	(39,588)		—
Net issuances of redeemable non-controlling interests	10,544		907,590
Accretion of redeemable non-controlling interests	58,989		59,762
Balance at end of period	$	1,023,707	$	1,750,054

14. RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES

Management fees, transaction and advisory fees and reimbursable expenses from the funds the Company manages and their portfolio companies are included in due from related parties in the condensed consolidated statements of financial condition. The Company also typically facilitates the payment of certain operating costs incurred by the funds that it manages as well as their related parties. These costs are normally reimbursed by such funds and are included in due from related parties. Other related party transactions include loans to employees, periodic sales of ownership interests in Apollo funds to employees, and receivables from and payables to AGM. Due from related parties and due to related parties are comprised of the following:

	As of September 30, 2022		As of December 31, 2021
Due from Related Parties:
Due from funds(1)	$	484,498	$	315,875
Due from employees and former employees	94,139		106,755
Due from portfolio companies	61,493		66,960
Due from parent	37,483		—
Incentive fees receivable	10,074		4,236
Total Due from Related Parties	$	687,687	$	493,826
Due to Related Parties:
Due to Former Managing Partners and Contributing Partners(2)	$	906,157	$	1,118,272
Due to parent	657,941		—
Due to funds	116,915		104,130
Total Due to Related Parties	$	1,681,013	$	1,222,402
(1) Includes $41.9 million and $47.8 million as of September 30, 2022 and December 31, 2021, respectively, related to a receivable from a fund in connection with the Company’s sale of a platform investment to such fund. The amount is payable to the Company over five years and is held at fair value.
(2) Includes $394.4 million and $569.6 million as of September 30, 2022 and December 31, 2021, respectively, related to the purchase of limited partnership interests, payable in equal installments through December 31, 2024.

Tax Receivable Agreement

On January 1, 2022, Apollo acquired Athene and merged operations into a newly established HoldCo, later renamed Apollo Global Management, Inc. Pursuant to the Merger Agreement executed by AGM, the Former Managing Partners and Contributing Partners, all AOG Units beneficially owned by each holder of AOG Units were converted to shares of AGM common stock following the consummation of the Mergers.

Prior to the Mergers, each of the Former Managing Partners and Contributing Partners had the right to exchange vested AOG Units for Class A shares, subject to certain restrictions. All Apollo Operating Group entities have made, or will make, an election under Section 754 of the U.S. Internal Revenue Code, which will result in an adjustment to the tax basis of the assets owned by the Apollo Operating Group entities at the time an exchange was made. The election results in an increase to the tax basis of underlying assets which will reduce the amount of gain and associated tax that the Company and its subsidiaries will otherwise be required to pay in the future.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

The tax receivable agreement (“TRA”) provides for payment to the Former Managing Partners and Contributing Partners of 85% of the amount of cash savings, if any, in U.S. federal, state, local and foreign income taxes that Apollo realizes as a result of the increases in tax basis of assets that resulted from transactions and other exchanges of AOG Units for Class A shares that occurred in prior years. AGM and its subsidiaries retain the benefit from the remaining 15% of actual cash tax savings. In May 2022, Apollo waived its early termination right, which had provided it the right to early terminate the tax receivable agreement at any time by payment of an early termination payment to all holders. If the Company does not make the required annual payment on a timely basis as outlined in the TRA, interest is accrued on the balance until the payment date.

Following the closing of the Mergers, the Former Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the TRA during the nine months ended September 30, 2022.

As a result of the exchanges of AOG Units for Class A shares during the nine months ended September 30, 2021, a $243.2 million liability was recorded to estimate the amount of the future payments to be made by the Company and its subsidiaries to the Former Managing Partners and Contributing Partners pursuant to the TRA.

AOG Unit Payment

On December 31, 2021, holders of AOG Units (other than Athene and the Company) sold and transferred a portion of such AOG Units to APO Corp., a wholly-owned consolidated subsidiary of the Company, in exchange for an amount equal to $3.66 multiplied by the total number of AOG Units held by such holders immediately prior to such transaction (such payment, the “AOG Unit Payment”). The remainder of the AOG Units held by such holders were exchanged for shares of AGM common stock concurrently with the consummation of the Mergers on January 1, 2022.

As of September 30, 2022, the outstanding payable amount to Former Managing Partners and Contributing Partners was $394.4 million, which is payable in equal installments through December 31, 2024.

Due from Employees and Former Employees

As of September 30, 2022 and December 31, 2021, due from employees and former employees includes various amounts due to the Company including employee loans and return of profit sharing distributions. As of September 30, 2022 and December 31, 2021, the balance included interest-bearing employee loans receivable of $15.8 million and $17.5 million respectively. The outstanding principal amount of the loans as well as all accrued and unpaid interest is required to be repaid at the earlier of the eighth anniversary of the date of the relevant loan or at the date of the relevant employee’s resignation from the Company.

The Company recorded a receivable from certain employees and former employees for the potential return of profit sharing distributions that would be due if certain funds were liquidated as of September 30, 2022 and December 31, 2021 of $65.8 million and $64.5 million, respectively.

Indemnity

Performance revenues from certain funds can be distributed to the Company on a current basis, but are subject to repayment by the subsidiaries of the Apollo Operating Group that act as general partners of the funds in the event that certain specified return thresholds are not ultimately achieved. The Former Managing Partners, Contributing Partners and certain other investment professionals have personally guaranteed, subject to certain limitations, the obligations of these subsidiaries in respect of this general partner obligation. Such guarantees are several and not joint and are limited to a particular Former Managing Partners’ or Contributing Partner’s distributions. The Company has agreed to indemnify each of the Company’s Former Managing Partners and certain Contributing Partners against all amounts that they pay pursuant to any of these personal guarantees in favor of certain funds that the Company manages (including costs and expenses related to investigating the basis for or objecting to any claims made in respect of the guarantees) for all interests that the Company’s Former Managing Partners and Contributing Partners contributed or sold to the Apollo Operating Group.

The Company recorded an indemnification liability in respect of this indemnification obligation of $13.3 million and $13.2 million as of September 30, 2022 and December 31, 2021, respectively.

Due to Funds

Based upon an assumed liquidation of certain of the funds the Company manages, the Company has recorded a general partner obligation to return previously distributed performance allocations, which represents amounts due to these funds. The general

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

partner obligation is recognized based upon an assumed liquidation of a fund’s net assets as of the reporting date. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective governing document of the fund.

The Company recorded general partner obligations to return previously distributed performance allocations related to certain funds of $88.6 million and $81.2 million as of September 30, 2022 and December 31, 2021, respectively.

Athene Fee Arrangement

The Company provides asset management and advisory services to Athene, including asset allocation services, direct asset management services, asset and liability matching management, mergers and acquisitions, asset diligence hedging and other asset management services. On March 31, 2022, Athene and Apollo agreed to revise the existing fee arrangements (the “amended fee agreement”) between Athene and Apollo. The Company began recording fees pursuant to the amended fee agreement on January 1, 2022. The amended fee agreement provides for sub-allocation fees which vary based on portfolio allocation differentiation, as described below.

The amended fee agreement provides for a monthly fee to be payable by Athene to the Company in arrears, with retroactive effect to the month beginning on January 1, 2022, in an amount equal to the following, to the extent not otherwise payable to the Company pursuant to any one or more investment management or sub-advisory agreements or arrangements:

(i)    The Company, through its consolidated subsidiary Apollo Insurance Solutions Group LP, or ISG, earns a base management fee of 0.225% per year on the aggregate book value of substantially all of the assets in substantially all of the accounts of or relating to Athene (collectively, the “Athene Accounts”) up to $103.4 billion (the “Backbook Value”) and 0.150% per year on all assets in excess of $103.4 billion (the “Incremental Value”), respectively; plus

(ii)    with respect to each asset in an Athene Account, subject to certain exceptions, that is managed by the Company and that belongs to a specified asset class tier (“core,” “core plus,” “yield,” and “high alpha”), a sub-allocation fee as follows:

	As of September 30, 2022
Sub-Allocation Fees:
Core Assets(1)	0.065	%
Core Plus Assets(2)	0.130	%
Yield Assets(3)	0.375	%
High Alpha Assets(4)	0.700	%
Other Assets (5)	—	%

(1)Core assets include public investment grade corporate bonds, municipal securities, agency residential or commercial mortgage backed securities and obligations of any governmental agency or government sponsored entity that is not expressly backed by the U.S. government.

(2)Core plus assets include private investment grade corporate bonds, fixed rate first lien commercial mortgage loans and obligations issued or assumed by a financial institution (such an institution, a “financial issuer”) and determined by Apollo to be “Tier 2 Capital” under the Basel III recommendations developed by the Basel Committee on Banking Supervision (or any successor to such recommendations).

(3)Yield assets include non-agency residential mortgage-backed securities, investment grade collateralized loan obligations, certain asset-backed securities, commercial mortgage-backed securities, emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial issuer, as rated preferred equity, residential mortgage loans, bank loans, investment grade infrastructure debt and certain floating rate commercial mortgage loans.

(4)High alpha assets include subordinated commercial mortgage loans, below investment grade collateralized loan obligations, unrated preferred equity, debt obligations originated by MidCap, below investment grade infrastructure debt, certain loans originated directly by Apollo and agency mortgage derivatives.

(5)Other Assets include cash, treasuries, equities and alternatives. With respect to equities and alternatives, Apollo earns performance revenues of 0% to 20%.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Merger Agreement

On March 8, 2021, the Company entered into the Merger Agreement with AHL, HoldCo, AHL Merger Sub, and AAM Merger Sub.

As of December 31, 2021, the Company held a 28.4% ownership interest in AHL’s Class A common shares.

On January 1, 2022, Apollo and Athene completed the previously announced Mergers. Following the closing of the Mergers, all of the common stock of AAM and AHL is owned by AGM and both AAM and AHL became consolidated subsidiaries of AGM. Subsequent to the closing of the Mergers, the Company distributed its interest in AHL’s Class A common shares to AGM.

Subsequent to the closing of the Mergers, the Company transferred the 2039 Senior Secured Guaranteed Notes to a VIE consolidated by Athene. Similarly, certain of Apollo’s general partner fund co-investments were transferred to Athene, which were subsequently transferred to AAA.

Athora

The Company, through ISGI, provides investment advisory services to certain portfolio companies of funds managed by Apollo and Athora, a strategic platform that acquires or reinsures blocks of insurance business in the European life insurance market (collectively, the “Athora Accounts”). The Company had equity commitments outstanding of up to $401.9 million as of September 30, 2022, subject to certain conditions.

Athora Sub-Advised

The Company, through ISGI, provides sub-advisory services with respect to a portion of the assets in certain portfolio companies of Apollo funds and the Athora Accounts. The Company broadly refers to “Athora Sub-Advised” assets as those assets in the Athora Accounts which the Company explicitly sub-advises as well as those assets in the Athora Accounts which are invested directly in funds and investment vehicles Apollo manages.

The Company earns a base management fee on the aggregate market value of substantially all of the investment accounts of or relating to Athora and also a sub-advisory fee on the Athora Sub-Advised assets, which varies depending on the specific asset class.

On December 15, 2021, the Company executed an amended and restated fee agreement with Athora. The new fee agreement revised the base fee paid to the Company for managing certain assets on behalf of Athora and removed Athora’s previous reimbursement of certain costs incurred by Apollo. These changes had retroactive effect to January 1, 2021.

The following table presents the revenues earned in aggregate from Athene and Athora:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues earned in aggregate from Athene and Athora, net(1)	$	341,888	$	284,254	$	959,261	$	828,045

(1)    Consisting of management fees, sub-advisory fees, and performance revenues from Athene and Athora, as applicable.

Regulated Entities and Affiliated Service Providers

Apollo Global Securities, LLC (“AGS”) is a registered broker dealer with the SEC and is a member of the Financial Industry Regulatory Authority, subject to the minimum net capital requirements of the SEC. AGS was in compliance with these requirements at September 30, 2022. From time to time, AGS, as well as other Apollo affiliates provide services to related parties of Apollo, including Apollo funds and their portfolio companies, whereby the Company or its affiliates earn fees for providing such services.

Griffin Capital Securities, LLC (“GCS”) is a registered broker dealer with the SEC and is a member of the Financial Industry Regulatory Authority, subject to the minimum net capital requirements of the SEC. GCS was in compliance with these requirements as of September 30, 2022.

Due to parent

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Following the merger with Athene, the Company has a revolving loan agreement with AGM, its parent company, to manage cash balances and to fund liquidity for general corporate use. The balance outstanding on this loan to AGM was $657.9 million as of September 30, 2022.

Investment in SPACs

In October 2020, APSG I, a SPAC, completed an initial public offering, ultimately raising total gross proceeds of $816.8 million, including the underwriters’ subsequent partial exercise of their over-allotment option. In a private placement concurrent with the initial public offering, APSG I sold warrants to APSG Sponsor, L.P., a subsidiary of Apollo, for total gross proceeds of $18.3 million. APSG Sponsor, L.P. previously held Class B ordinary shares of APSG I. In May 2022, APSG I completed a business combination with American Express Global Business Travel. As a result of the business combination, Apollo no longer consolidates APSG I as a VIE. The deconsolidation resulted in an unrealized gain of $162.0 million, which includes $81.5 million of unrealized gains related to previously held Class B ordinary shares, which converted to Class A shares of the newly merged entity (“GBTG”), for the nine months ended September 30, 2022 and is presented in Net gains from investment activities within Other income in the condensed consolidated statements of operations. Apollo continues to hold a non-controlling interest in GBTG at fair value, presented within Investments in the condensed consolidated statements of financial condition. Apollo has significant influence in the retained investment, and has elected the fair value option for subsequent measurement.

On February 12, 2021, APSG II, a SPAC, completed an initial public offering, raising total gross proceeds of $690.0 million, including the underwriters’ exercise in full of their over-allotment option. In a private placement concurrent with the initial public offering, APSG II sold warrants to APSG Sponsor II, L.P., a subsidiary of Apollo, for total gross proceeds of $15.6 million. APSG Sponsor II, L.P. also holds Class B ordinary shares of APSG II. Apollo currently consolidates APSG II as a VIE, and thus all private placement warrants and Class B ordinary shares are eliminated in consolidation.

On July 13, 2021, Acropolis, a SPAC, completed an initial public offering, ultimately raising total gross proceeds of $345.0 million, including the underwriters’ subsequent exercise in full of their over-allotment option. In a private placement concurrent with the initial public offering, Acropolis sold warrants to Acropolis Infrastructure Acquisition Sponsor, L.P., a subsidiary of Apollo, for total gross proceeds of $8.8 million. Acropolis Infrastructure Acquisition Sponsor, L.P. also holds Class B common stock of Acropolis. Apollo currently consolidates Acropolis as a VIE, and thus all private placement warrants and Class B common stock are eliminated in consolidation.

As described in note 2, the Company consolidates entities that are VIEs for which the Company has been designated as the primary beneficiary. Through its interests in the respective sponsors, the Company has the power to direct the activities that most significantly impact the economic performance of these SPACs. In addition, the Company’s combined interests in these VIEs are significant. Assets and liabilities of the consolidated SPACs are shown within the respective line items of the condensed consolidated financial statements, as outlined below.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

The tables below present the financial information of these SPACs in aggregate:

	As of September 30, 2022		As of December 31, 2021
Assets:
Cash and cash equivalents	$	579	$	1,796
Restricted cash and cash equivalents	694,582		690,205
U.S. Treasury securities, at fair value	347,170		1,162,299
Other assets	926		2,627
Total Assets	$	1,043,257	$	1,856,927
Liabilities, Redeemable non-controlling interests and Stockholders’ Equity
Liabilities:
Accounts payable and accrued expenses	$	3,250	$	2,361
Due to related parties	8,300		20,146
Other liabilities	41,519		143,778
Total Liabilities	53,069		166,285
Redeemable non-controlling interests:
Redeemable non-controlling interests	1,008,679		1,762,282
Stockholders’ Equity:
Additional paid in capital	(63,909)		(98,369)
Retained earnings	45,418		26,729
Total Stockholders’ Equity	(18,491)		(71,640)
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity	$	1,043,257	$	1,856,927

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Expenses:
Interest expense	$	7	$	3	$	16	5
General, administrative and other	685		3,824		6,426		13,369
Total Expenses	692		3,827		6,442		13,374
Other Income:
Net gains from investment activities	3,513		29,185		20,297		27,684
Interest income	4,949		131		6,710		392
Other income (loss), net	(100)		(146)		(300)		(370)
Total Other Income	8,362		29,170		26,707		27,706
Income before income tax provision	7,670		25,343		20,265		14,332
Income tax provision	(179)		—		(179)		—
Net Income Attributable to Apollo Asset Management, Inc.	7,491		25,343		20,086		14,332

15. COMMITMENTS AND CONTINGENCIES

Investment Commitments

As a limited partner, general partner and manager of the Apollo funds, Apollo had unfunded capital commitments as of September 30, 2022 and December 31, 2021 of $0.5 billion and $1.0 billion, respectively.

Litigation and Regulatory Matters

Apollo is, from time to time, party to various legal actions arising in the ordinary course of business including claims and lawsuits, reviews, investigations or proceedings by governmental and self-regulatory agencies regarding its business.

On August 3, 2017, a complaint was filed in the United States District Court for the Middle District of Florida against AAM, a senior partner of Apollo and a former principal of Apollo by Michael McEvoy on behalf of a purported class of employees of

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

subsidiaries of CEVA Group, LLC (“CEVA Group”) who purchased shares in CEVA Investment Limited (“CIL”), the former parent company of CEVA Group. The complaint alleged that the defendants breached fiduciary duties to and defrauded the plaintiffs by inducing them to purchase shares in CIL and subsequently participating in a debt restructuring of CEVA Group in which shareholders of CIL did not receive a recovery. McEvoy subsequently revised his complaint to attempt to assert claims that do not belong to CIL. The amended complaint no longer named any individual defendants, but Apollo Management VI, L.P. and CEVA Group were added as defendants. The amended complaint sought damages of approximately €30 million and asserts, among other things, claims for violations of the Investment Advisers Act of 1940, breach of fiduciary duties, and breach of contract. On December 7, 2018, McEvoy filed his amended complaint in the District Court for the Middle District of Florida. On January 6, 2020, the Florida court granted in part Apollo’s motion to dismiss, dismissing McEvoy’s Investment Advisers Act claim with prejudice, and denying without prejudice Apollo’s motion with respect to the remaining claims, and directing the parties to conduct limited discovery, and submit new briefing, solely with respect to the statute of limitations. On July 30, 2020, Apollo and CEVA filed a joint motion for summary judgment on statute of limitations grounds. On June 29, 2021, the district court issued a decision denying the defendants’ joint motion for summary judgment on statute of limitations grounds, and set deadlines on July 23, 2021 for the plaintiff to file an amended complaint and August 20, 2021 for defendants to answer or move to dismiss the amended complaint. Plaintiff filed his second amended complaint on July 23, 2021 which added alleged grounds for tolling the statute of limitations. Also on July 23, 2021, the defendants filed a joint motion for reconsideration with respect to aspects of the district court’s June 29, 2021 decision. On March 10, 2022, the court granted defendants’ motion for reconsideration and granted Apollo’s motion for summary judgment. On April 7, 2022, Plaintiff filed a motion to alter or amend the court’s order of March 10. The defendants, including Apollo, opposed that motion on April 28, 2022. The court denied Plaintiff’s motion on May 26, 2022. Plaintiff has appealed the court’s decisions to the Eleventh Circuit. Apollo believes that Plaintiff’s appeal is without merit. No reasonable estimate of possible loss, if any, can be made at this time.

On December 21, 2017, several entities referred to collectively as “Harbinger” commenced an action in New York Supreme Court captioned Harbinger Capital Partners II LP et al. v. Apollo Global Management LLC, et al. (No. 657515/2017). The complaint named as defendants AAM, and funds managed by Apollo that invested in SkyTerra Communications, Inc. (“SkyTerra”), among others. The complaint alleged that during the period of Harbinger’s various equity and debt investments in SkyTerra from 2004 to 2010, the defendants concealed from Harbinger material defects in SkyTerra technology. The complaint further alleged that Harbinger would not have made investments in SkyTerra totaling approximately $1.9 billion had it known of the defects, and that the public disclosure of these defects ultimately led to SkyTerra filing for bankruptcy in 2012 (after it had been renamed LightSquared). The complaint sought $1.9 billion in damages, as well as punitive damages, interest, costs, and fees. On June 12, 2019, Harbinger voluntarily discontinued the state action without prejudice. On June 8, 2020, Harbinger refiled its litigation in New York Supreme Court, captioned Harbinger Capital Partners II, LP et al. v. Apollo Global Management, LLC et al. (No. 652342/2020). The complaint adds eight new defendants and three new claims relating to Harbinger’s contention that the new defendants induced Harbinger to buy CCTV One Four Holdings, LLC (“CCTV”) to support SkyTerra’s network even though they allegedly knew that the network had material defects. On November 23, 2020, Defendants refiled a bankruptcy motion, and on November 24, 2020, filed in the state court a motion to stay the state court proceedings pending a ruling by the bankruptcy court on the bankruptcy motion. On February 1, 2021, the bankruptcy court denied the bankruptcy motion. On March 31, 2021, Defendants filed their motions to dismiss the New York Supreme Court action. Hearings were held on the motions to dismiss on February 15, 2022 and February 18, 2022, and the motions remain pending. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time.

On November 1, 2019, plaintiff Benjamin Fongers filed a putative class action in Illinois Circuit Court, Cook County, against CareerBuilder, LLC (“CareerBuilder”) and AAM. Plaintiff alleges that in March 2019, CareerBuilder changed its compensation plan so that sales representatives such as Fongers would (i) receive reduced commissions; and (ii) only be able to receive commissions for accounts they originated that were not reassigned to anyone else, a departure from the earlier plan. Plaintiff also claims that the plan applied retroactively to deprive sales representatives of commissions to which they were earlier entitled. Plaintiff alleges that AAM exercises complete control over CareerBuilder and thus, CareerBuilder acts as AAM’s agent. Based on these allegations, Plaintiff alleges claims against both defendants for breach of written contract, breach of implied contract, unjust enrichment, violation of the Illinois Sales Representative Act, and violation of the Illinois Wage and Payment Collection Act. The defendants removed the action to the Northern District of Illinois on December 5, 2019, and Plaintiff moved to remand on January 6, 2020. On October 21, 2020, the district court granted the motion to remand. On January 11, 2021, the district court ordered the clerk of court to take the necessary steps to transfer the case back to Illinois Circuit Court, Cook County. On March 8, 2021, Plaintiff filed a motion under 28 U.S.C. § 1447(c) to recover attorneys’ fees of approximately $35,000 for the remand briefing. Defendants filed their opposition on March 31, 2021, and Plaintiff replied on April 14, 2021. Defendants filed motions to dismiss the complaint in the Illinois Circuit Court, Cook County on June 11, which

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

were fully briefed on August 13, 2021. CareerBuilder has also filed a Motion for a Protective Order and to Stay Discovery pending the outcome of the motions to dismiss. On February 7, 2022, the court held a hearing on the motions to dismiss and the request to stay discovery. At the hearing, the court took the motions to dismiss under advisement and granted CareerBuilder’s motion to stay discovery. On March 11, 2022, the parties filed a Notice of Settlement notifying the court that the parties have reached an agreement to resolve the case in full, and the court has granted preliminary approval of the settlement. The final approval hearing for the settlement is scheduled for November 17, 2022.

In March 2020, Frank Funds, which claims to be a former shareholder of MPM Holdings, Inc. (“MPM”), commenced an action in the Delaware Court of Chancery, captioned Frank Funds v. Apollo Global Management, Inc., et al., C.A. No. 2020-0130, against AAM, certain former MPM directors (including three Apollo officers and employees), and members of the consortium that acquired MPM in a May 2019 merger. The complaint asserts, on behalf of a putative class of former MPM shareholders, a claim against Apollo for breach of its fiduciary duties as MPM’s alleged controlling shareholder in connection with the May 2019 merger. Frank Funds seeks unspecified compensatory damages. On July 23, 2019, a group of former MPM shareholders filed an appraisal petition in Delaware Chancery Court seeking the fair value of their MPM shares that were purchased through MPM’s May 15, 2019 merger, in an action captioned In re Appraisal of MPM Holdings, Inc., C.A. No. 2019-0519 (Del. Ch.). On June 3, 2020, petitioners moved for leave to file a verified amended appraisal petition and class-action complaint that included claims for breach of fiduciary duty and/or aiding and abetting breaches of fiduciary duty against AAM, the Apollo-affiliated fund that owned MPM’s shares before the merger, certain former MPM directors (including three Apollo employees), and members of the consortium that acquired MPM, based on alleged actions related to the May 2019 merger. The petitioners also sought to consolidate their appraisal proceeding with the Frank Funds action. On November 13, 2020, the Chancery Court granted the parties’ stipulated order to consolidate the two matters, and on December 21, 2020, the Chancery Court granted petitioners’ motion for leave to file the proposed amended complaint. This new consolidated action is captioned In Re MPM Holdings Inc. Appraisal and Stockholder Litigation, C.A. No. 2019-0519 (Del Ch.). On January 13, 2022, the Chancery Court denied Apollo’s motion to dismiss. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time.

On August 4, 2020, a putative class action complaint was filed in the United States District Court for the District of Nevada against PlayAGS Inc. (“PlayAGS”), all of the members of PlayAGS’s board of directors (including three directors who are affiliated with Apollo), certain underwriters of PlayAGS (including Apollo Global Securities, LLC), as well as AAM, Apollo Investment Fund VIII, L.P., Apollo Gaming Holdings, L.P., and Apollo Gaming Voteco, LLC (these last four parties, together, the “Apollo Defendants”). The complaint asserts claims against all defendants arising under the Securities Act of 1933 in connection with certain secondary offerings of PlayAGS stock conducted in August 2018 and March 2019, alleging that the registration statements issued in connection with those offerings did not fully disclose certain business challenges facing PlayAGS. The complaint further asserts a control person claim under Section 20(a) of the Exchange Act against the Apollo Defendants and the director defendants (including the directors affiliated with Apollo), alleging such defendants were responsible for certain misstatements and omissions by PlayAGS about its business. Plaintiffs filed amended complaints on January 11, 2021 and again on March 25, 2021. On May 24, 2021, the Apollo Defendants filed a motion to dismiss the complaint, which motion remains pending. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time.

On or around October 19, 2021, a purported stockholder of AAM filed a complaint against AAM in the Court of Chancery of the State of Delaware seeking the disclosure of certain additional documents pursuant to Section 220 of the Delaware General Corporation Law. The complaint alleges that the stockholder seeks to investigate (a) whether wrongdoing or mismanagement occurred in connection with the decision of the AAM board of directors to pay, in connection with the elimination of the AAM Up-C structure, the partners of AP Professional Holdings, L.P. (including the Former Managing Partners) a payment of cash equal to $3.66 per AOG Unit held, which the complaint characterizes as providing $640 million for “Tax Receivable Agreement” assets (which the stockholder alleges are worth nothing); (b) the independence and disinterestedness of AAM directors and/or officers; and (c) potential damages relating thereto. Apollo and the stockholder subsequently resolved the Section 220 action through the production of supplemental documents, and, on September 29, 2022, the Section 220 action was voluntarily dismissed. It is possible that the stockholder later pursues a plenary action challenging the substantive issues that are the subject of the stockholder’s investigation.

Certain of Apollo’s investment adviser subsidiaries have received a request for information and documents from the SEC in connection with an investigation concerning compliance with record retention requirements relating to business communications sent or received via electronic messaging channels. As has been publicly reported, the SEC is conducting similar investigations of other investment advisers.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

Commitments and Contingencies

Other long-term obligations relate to payments with respect to certain consulting agreements entered into by Apollo Investment Consulting LLC, a subsidiary of Apollo, as well as long-term service contracts. A significant portion of these costs are reimbursable by funds or portfolio companies. As of September 30, 2022, fixed and determinable payments due in connection with these obligations were as follows:

	Remaining 2022		2023 - 2024		2025 - 2026		2027 and Thereafter		Total
Other long-term obligations	$	15,966	$	17,403	$	249	$	—	$	33,618

Contingent Obligations

Performance allocations with respect to certain funds are subject to reversal in the event of future losses to the extent of the cumulative revenues recognized in income to date. If all of the existing investments became worthless, the amount of cumulative revenues that have been recognized by Apollo through September 30, 2022 and that would be reversed approximates $4.3 billion. Management views the possibility of all of the investments becoming worthless as remote. Performance allocations are affected by changes in the fair values of the underlying investments in the funds that Apollo manages. Valuations, on an unrealized basis, can be significantly affected by a variety of external factors including, but not limited to, bond yields and industry trading multiples. Movements in these items can affect valuations quarter to quarter even if the underlying business fundamentals remain stable.

Additionally, at the end of the life of certain funds that the Company manages, there could be a payment due to a fund by the Company if the Company, as general partner, has received more performance allocations than was ultimately earned. The general partner obligation amount, if any, will depend on final realized values of investments at the end of the life of each fund or as otherwise set forth in the respective limited partnership agreement of the fund. See note 14 to our condensed consolidated financial statements for further details regarding the general partner obligation.

Certain funds may not generate performance allocations as a result of unrealized and realized losses that are recognized in the current and prior reporting period. In certain cases, performance allocations will not be generated until additional unrealized and realized gains occur. Any appreciation would first cover the deductions for invested capital, unreturned organizational expenses, operating expenses, management fees and priority returns based on the terms of the respective fund agreements.

One of the Company’s subsidiaries, AGS, provides underwriting commitments in connection with securities offerings of related parties of Apollo, including portfolio companies of the funds Apollo manages, as well as third parties. As of September 30, 2022 and December 31, 2021, there were no open underwriting commitments.

The Company and Athene, together with a third-party institutional investor, have committed to provide financing to a consolidated VIE that invests across Apollo’s capital markets platform (such VIE, the “Apollo Capital Markets Partnership”). Pursuant to these arrangements, the Company and Athene have committed equity financing to the Apollo Capital Markets Partnership. The Apollo Capital Markets Partnership also has a revolving credit facility with Sumitomo Mitsui Banking Corporation, as lead arranger, administrative agent and letter of credit issuer, Mizuho Bank Ltd., and other lenders party thereto, pursuant to which it may borrow up to $2.25 billion. The revolving credit facility, which has a final maturity date of April 1, 2025, is non-recourse to the Company and Athene, except that the Company and Athene provided customary comfort letters with respect to their capital contributions to the Apollo Capital Markets Partnership. As of September 30, 2022, the Apollo Capital Markets Partnership had funded commitments of $511 million to transactions across Apollo’s capital markets platform, all of which were funded through the revolving credit facility, and no capital had been funded by the Company or Athene to the Apollo Capital Markets Partnership pursuant to their commitments.

Whether the commitments of the Apollo Capital Markets Partnership are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. It is expected that between the time the Apollo Capital Markets Partnership makes a commitment and funding of such commitment, efforts will be made to syndicate such commitment to, among others, third parties, which should reduce its risk when committing to certain transactions. The Apollo Capital Markets Partnership may also, with respect to a particular transaction, enter into other arrangements with third parties which reduce its commitment risk.

Contingent Consideration

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

In connection with the acquisition of Stone Tower in April 2012, the Company agreed to pay the former owners of Stone Tower a specified percentage of any future performance revenues earned from certain of the Stone Tower funds, CLOs, and strategic investment accounts. This contingent consideration liability was determined based on the present value of estimated future performance revenue payments, and is recorded in profit sharing payable in the condensed consolidated statements of financial condition. The fair value of the remaining contingent obligation was $103.0 million and $125.9 million as of September 30, 2022 and December 31, 2021, respectively.

The contingent consideration obligations will be remeasured to fair value at each reporting period until the obligations are satisfied and are characterized as Level III liabilities. The changes in the fair value of the contingent consideration obligations is reflected in profit sharing expense in the condensed consolidated statements of operations. See note 7 for further information regarding fair value measurements.

16. SEGMENT REPORTING

Apollo conducts its business primarily in the United States through two reportable segments: (i) asset management and (ii) principal investing. Segment information is utilized by our chief operating decision makers to assess performance and to allocate resources.

The performance is measured by the Company’s chief operating decision makers on an unconsolidated basis because management makes operating decisions and assesses the performance of each of Apollo’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the affiliated funds.

Segment Reporting Changes

In connection with the completion of the Mergers, Apollo undertook a strategic review of its operating structure and business segments to assess the performance of its businesses and the allocation of resources. As a result, for periods following the Mergers, Apollo reports results through two reportable segments called asset management and principal investing.

In connection with these changes, all prior periods have been recast to conform to the new presentation. Consequently, this information will be different from the historical segment financial results previously reported by Apollo in its reports filed with the SEC.

Adjusted Segment Income

Adjusted Segment Income is the key performance measure used by management in evaluating the performance of the asset management and principal investing segments. Management uses Adjusted Segment Income to make key operating decisions such as the following:

•decisions related to the allocation of resources such as staffing decisions including hiring and locations for deployment of the new hires;

•decisions related to capital deployment such as providing capital to facilitate growth for the business and/or to facilitate expansion into new businesses;

•decisions related to expenses, such as determining annual discretionary bonuses and compensation to employees. With respect to compensation, management seeks to align the interests of certain professionals and selected other individuals with those of the investors in the funds and those of Apollo’s stockholders by providing such individuals a profit sharing interest in the performance fees earned in relation to the funds. To achieve that objective, a certain amount of compensation is based on Apollo’s performance and growth for the year.

Adjusted Segment Income is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. Adjusted Segment Income represents the amount of Apollo’s net realized earnings, excluding the effects of the consolidation of any of the related funds and SPACs, interest and preferred dividends paid to Preferred shareholders, taxes and related payables, transaction-related charges and any acquisitions. Transaction-related charges includes equity-based compensation charges, the amortization of intangible assets, contingent consideration, and certain other charges associated with acquisitions, and restructuring charges. In addition, Adjusted Segment Income excludes non-cash revenue and expense related to equity awards granted by unconsolidated related parties to employees of the Company, compensation and

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

administrative related expense reimbursements, as well as the assets, liabilities and operating results of the funds and variable interest entities that are included in the condensed consolidated financial statements. Adjusted Segment Income also excludes impacts of the remeasurement of the tax receivable agreement liability recorded in other income, which arises from changes in the associated deferred tax balance.

Adjusted Segment Income may not be comparable to similarly titled measures used by other companies and is not a measure of performance calculated in accordance with U.S. GAAP. We use Adjusted Segment Income as a measure of operating performance, not as a measure of liquidity. Adjusted Segment Income should not be considered in isolation or as a substitute for net income or other income data prepared in accordance with U.S. GAAP. The use of Adjusted Segment Income without consideration of related U.S. GAAP measures is not adequate due to the adjustments described above. Management compensates for these limitations by using Adjusted Segment Income as a supplemental measure to U.S. GAAP results, to provide a more complete understanding of our performance as management measures it. A reconciliation of Adjusted Segment Income to its most directly comparable U.S. GAAP measure of income (loss) before income tax provision can be found in this footnote.

Fee Related Earnings

Fee Related Earnings (“FRE”) is a component of Adjusted Segment Income that is used to assess the performance of the asset management segment. FRE is the sum of (i) management fees, (ii) advisory and transaction fees, (iii) fee-related performance fees from indefinite term vehicles, that are measured and received on a recurring basis and not dependent on realization events of the underlying investments and (iv) other income, net, less (a) fee-related compensation, excluding equity-based compensation, (b) non-compensation expenses incurred in the normal course of business, (c) placement fees and (d) non-controlling interests in the management companies of certain funds the Company manages.

Principal Investing Income

Principal Investing Income (“PII”) is a component of Adjusted Segment Income that is used to assess the performance of the principal investing segment. For the principal investing segment, PII is the sum of (i) realized performance fees, excluding realizations received in the form of shares, (ii) realized investment income, less (x) realized principal investing compensation expense, excluding expense related to equity-based compensation, and (y) certain corporate compensation and non-compensation expenses.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

The following tables present financial data for the Company’s reportable segments.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Asset Management
Management Fees	$	545,924	$	472,483	$	1,573,197	$	1,395,200
Advisory and transaction fees, net	104,532		65,077		271,781		203,807
Fee-related performance fees	19,989		19,856		45,866		36,702
Fee related compensation	(193,793)		(160,689)		(556,389)		(476,663)
Other operating expenses	(112,005)		(76,601)		(318,716)		(218,316)
Fee Related Earnings (FRE)	364,647		320,126		1,015,739		940,730
Principal Investing
Realized performance fees	92,993		608,130		371,044		1,183,640
Realized investment income	61,410		295,225		537,776		397,610
Principal investing compensation	(87,580)		(309,016)		(398,566)		(631,382)
Other operating expenses	(7,214)		(12,014)		(19,250)		(34,149)
Principal Investing Income (PII)	59,609		582,325		491,004		915,719
Adjusted Segment Income	424,256		902,451		1,506,743		1,856,449
Segment Assets:
Asset Management					$	1,936,252
Principal Investing					8,379,698
Total Assets(1)					$	10,315,950
(1) Refer below for a reconciliation of total assets for Apollo’s total reportable segments to total consolidated assets.

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APOLLO ASSET MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands, except share data, except where noted)

The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Adjusted Segment Income:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Income before income tax provision	$	107,421	$	732,851	$	1,715,064	$	4,154,111
Equity-based profit sharing expense and other(1)	55,728		31,731		219,454		93,595
Equity-based compensation	45,183		19,538		138,584		55,187
Transaction-related charges(2)	8,028		(954)		5,928		27,028
Merger-related transaction and integration costs(3)	12,150		14,647		48,637		38,331
(Gains) losses from changes in tax receivable agreement liability	—		—		14,184		(1,941)
Net income attributable to non-controlling interests in consolidated entities	(17,795)		(112,569)		(276,984)		(299,423)
Unrealized performance fees	66,202		159,044		109,083		(1,411,205)
Unrealized profit sharing expense	(18,609)		(40,991)		(15,909)		646,142
Net interest expense	21,236		32,552		78,007		100,365
Unrealized principal investment income (loss)	127,488		218,816		137,784		(153,577)
Unrealized net (gains) losses from investment activities and other	17,224		(152,214)		(667,089)		(1,392,164)
Adjusted Segment Income	$	424,256	$	902,451	$	1,506,743	$	1,856,449
(1) Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are required to be used by employees of Apollo to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under AGM’s Equity Plan. Equity-based profit sharing expense and other also includes performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense.
(2) Transaction-related charges include contingent consideration, equity-based compensation charges and the amortization of intangible assets and certain other charges associated with acquisitions, and restructuring charges.
(3) Merger-related transaction and integration costs includes advisory services, technology integration, equity-based compensation charges and other costs associated with the Mergers.

The following table presents the reconciliation of the Company’s total reportable segment assets to total assets:

	As of September 30, 2022		As of December 31, 2021
Total reportable segment assets	$	10,315,950	$	13,573,400
Adjustments(1)	2,002,132		16,928,494
Total assets	$	12,318,082	$	30,501,894
(1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments.

17. SUBSEQUENT EVENTS

Dividends

On November 2, 2022, the Company declared a cash dividend of $0.398438 per share of Series A Preferred shares and Series B Preferred shares, which will be paid on December 15, 2022 to holders of record at the close of business on December 1, 2022.

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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with Apollo Asset Management, Inc.’s condensed consolidated financial statements and the related notes within this quarterly report. This discussion contains forward-looking statements that are subject to known and unknown risks and uncertainties. Actual results and the timing of events may differ significantly from those expressed or implied in such forward-looking statements due to a number of factors, including those included in the section entitled “Risk Factors” in the 2021 Annual Report and “Item 1A. Risk Factors” in this quarterly report. The highlights listed below have had significant effects on many items within our condensed consolidated financial statements and affect the comparison of the current period’s activity with those of prior periods. Target returns included in this report are presented gross and do not account for fees, expenses and taxes, which will reduce returns. Target returns are neither guarantees nor predictions or projections of future performance. There can be no assurance that target returns will be achieved or that Apollo will be successful in implementing the applicable strategy. Actual gross and net returns for funds managed by Apollo, and individual investors participating directly or indirectly in funds managed by Apollo, may vary significantly from the target returns set forth herein.

General

Our Businesses

Founded in 1990, Apollo is a high-growth, global alternative asset manager. Apollo conducts its business primarily in the United States through the following two reportable segments: asset management and principal investing. These business segments are differentiated based on the investment services they provide as well as varying investing strategies. Apollo had a team of 2,528 employees, including 733 investment professionals, as of September 30, 2022.

Asset Management

Our asset management segment focuses on three investing strategies: yield, hybrid and equity. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company’s capital structure. We raise, invest and manage funds on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. As of September 30, 2022, we had total AUM of $523.3 billion.

Yield

Yield is our largest asset management strategy with $372.6 billion of AUM as of September 30, 2022. Our yield strategy focuses on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the funds we manage. Within our yield strategy, we target 4% to 10% returns for the funds we manage. Since inception, the total return yield fund has generated a 5% gross ROE and 4% net ROE annualized through September 30, 2022.

Hybrid

Our hybrid strategy, with $56.7 billion of AUM as of September 30, 2022, brings together our capabilities across debt and equity to seek to offer a differentiated risk-adjusted return with an emphasis on structured downside protected opportunities across asset classes. We target 8% to 15% returns within our hybrid strategy by pursuing investments in all market environments, deploying capital during both periods of dislocation and market strength, and focusing on different investing strategies and asset classes. Our flagship hybrid credit hedge fund has generated a 11% gross ROE and 7% net ROE annualized and our hybrid value funds have generated a 21% gross IRR and a 17% net IRR from inception through September 30, 2022.

Equity

Our equity strategy, with $93.9 billion of AUM as of September 30, 2022, emphasizes flexibility, complexity, and purchase price discipline to drive opportunistic-like returns for the funds we manage throughout market cycles. Apollo’s equity team has experience across sectors, industries, and geographies in both private equity and real estate equity. Our controlled equity transactions are principally buyouts, corporate carveouts and distressed investments, while our real estate funds generally transact in single asset, portfolio and platform acquisitions. Within our equity strategy, we target upwards of 15% returns in the funds we manage. We have consistently produced attractive long-term investment returns in our traditional private equity funds, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through September 30, 2022.

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Principal Investing

Our principal investing segment is comprised of our realized performance fee income, realized investment income from our balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company. The principal investing segment also includes our growth capital and liquidity resources. We expect to deploy capital into strategic investments over time that will help accelerate the growth of our asset management segment, by broadening our investment management and/or product distribution capabilities or increasing the efficiency of our operations. We believe these investments will translate into greater compounded annual growth of Fee Related Earnings.

Given the cyclical nature of performance fees, earnings from our principal investing segment, or Principal Investing Income (“PII”), is inherently more volatile in nature than earnings from the asset management segment. We earn fees based on the investment performance of the funds we manage and compensate our employees, primarily investment professionals, with a meaningful portion of these proceeds to align our team with the investors in the funds we manage and incentivize them to deliver strong investment performance over time. We expect to increase the proportion of performance fee income we pay to our employees over time, and as such proportion increases, we expect PII to represent a relatively smaller portion of our total company earnings.

The diagram below depicts our current organizational structure:

Note: The organizational structure chart above depicts a simplified version of the Apollo structure. It does not include all legal entities in the structure.

(1)Includes direct and indirect ownership by AGM.

Business Environment

As a global alternative asset manager, we are affected by the condition of global financial markets and the economy. Price fluctuations within equity, credit, commodity, foreign exchange markets, as well as interest rates and global inflation, which may be volatile and mixed across geographies, can significantly impact the performance of our business, including, but not limited to, the valuation of investments including those of the funds we manage, and related income we may recognize.

We carefully monitor economic and market conditions that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives, which includes global inflation.

Adverse economic conditions may result from domestic and global economic and political developments, including plateauing or decreasing economic growth and business activity, civil unrest, geopolitical tensions or military action, such as the armed conflict between Ukraine and Russia and corresponding sanctions imposed by the United States and other countries, and new or evolving legal and regulatory requirements on business investment, hiring, migration, labor supply and global supply chains.

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U.S. inflation remained heightened during the third quarter of 2022, and the U.S. Federal Reserve continued its interest rate hiking cycle as a result. The U.S. Bureau of Labor Statistics reported that the annual U.S. inflation rate increased to 8.2% as of September 30, 2022, compared to 9.1% as of June 30, 2022, and core inflation is at the highest level since the 1980s. In September 2022, the Federal Reserve raised the benchmark interest rate to a target range of 3.00% to 3.25% from a target range of 1.50% to 1.75% in June 2022. The increase in the U.S. inflation rate continues to be driven by various factors, including the armed conflict between Ukraine and Russia, supply chain disruptions, persistent consumer demand, tight labor markets, a distorted supply/demand housing imbalance, and residential vacancy rates.

In the U.S., the S&P 500 Index decreased by 5.3% during the third quarter of 2022, following a decrease of 16.4% during the second quarter of 2022. Global equity markets have also been impacted, with the MSCI All Country World ex USA Index decreasing 9.1% during the third quarter of 2022, following a decrease of 14.4% in the second quarter of 2022.

Conditions in the credit markets have a significant impact on our business. Credit markets are negative in 2022, with the BofAML HY Master II Index decreasing by 0.7% in the third quarter of 2022, while the S&P/LSTA Leveraged Loan Index increased by 1.3%. The U.S. 10-year Treasury yield at the end of the quarter was 3.83%.

In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP increased at an annual rate of 2.6% in the third quarter of 2022, following a decrease of 0.9% in the second quarter of 2022. As of October 2022, the International Monetary Fund estimated that the U.S. economy will expand by 1.6% in 2022 and 1.0% in 2023. The U.S. Bureau of Labor Statistics reported that the U.S. unemployment rate decreased to 3.5% as of September 30, 2022.

Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. The increasing yield disparity globally drove the strengthening of the U.S. dollar compared to the euro and the British pound. Relative to the U.S. dollar, the euro depreciated 6.5% during the third quarter of 2022, after depreciating 5.3% in the second quarter of 2022, while the British pound depreciated 8.3% during the third quarter of 2022, after depreciating 7.3% in the second quarter of 2022. The price of crude oil depreciated by 24.8% during the quarter, after appreciating by 5.5% in the second quarter of 2022, as recession fears counteracted constrained supply and oil export disruptions due to the ongoing conflict between Ukraine and Russia.

We are actively monitoring the developments in Ukraine resulting from the Russia/Ukraine conflict and the economic sanctions and restrictions imposed against Russia, Belarus, and certain Russian and Belarussian entities and individuals. Apollo continues to (i) identify and assess any exposure to designated persons or entities across Apollo’s business; (ii) ensure existing surveillance and controls are calibrated to the evolving sanctions; and (iii) ensure appropriate levels of communication across Apollo, and with other relevant market participants, as appropriate.

As of September 30, 2022, the funds we manage have no investments that would cause Apollo or any Apollo managed fund to be in violation of current international sanctions, and we believe the direct exposure of investment portfolios of the funds we manage to Russia and Ukraine is insignificant. Apollo and the funds we manage do not intend to make any new material investments in Russia, and have appropriate controls in place to ensure review of any new exposure.

Regardless of the market or economic environment at any given time, Apollo relies on its contrarian, value-oriented approach to consistently invest capital on behalf of its fund investors by focusing on opportunities that management believes are often overlooked by other investors. As such, Apollo’s global integrated investment platform across yield, hybrid and equity strategies had gross capital deployment of $37.4 billion and $123.4 billion during the three and nine months ended September 30, 2022, respectively, driven by investments in investment grade and high yield corporate credit, our direct lending franchises, and the hybrid capital solutions and private equity funds we manage.

Apollo has one of the largest investing platforms in the world, deploying capital for investors across the risk/return spectrum from investment grade credit all the way up through private equity across its yield, hybrid, and equity investing strategies. Apollo’s focus on nine core industry sectors, combined with more than 32 years of investment experience, has allowed Apollo to respond quickly to changing environments. Apollo’s core industry sectors include chemicals, manufacturing and industrial, natural resources, consumer and retail, consumer services, business services, financial services, leisure, and media/telecom/technology. Apollo believes that these attributes have contributed to the success of the equity funds it manages investing in buyouts as well as credit opportunities investing in senior loans, high yield, and distressed credit during both expansionary and recessionary economic periods. Over the past decade, to support the significant growth of its yield investing capabilities, Apollo has developed a differentiated asset origination ecosystem which produces private credit and large-cap loan origination investment opportunities for its fund investors and retirement services clients.

In general, institutional investors continue to allocate capital towards alternative investment managers for more attractive risk-adjusted returns in a low interest rate environment, and we believe the business environment remains generally accommodative

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to raise larger successor funds, launch new products, and pursue attractive strategic growth opportunities, such as continuing to grow the assets of our perpetual capital vehicles. As such, Apollo had $34.1 billion and $100.4 billion of capital inflows during the three and nine months ended September 30, 2022, respectively. Apollo returned $10.1 billion and $21.5 billion of capital and realized gains to the investors in the funds it manages during the three and nine months ended September 30, 2022, respectively.

Overview of Results of Operations

Revenues

Management Fees

The significant growth of the assets we manage has had a positive effect on our revenues. Management fees are typically calculated based upon any of “net asset value,” “gross assets,” “adjusted par asset value,” “adjusted costs of all unrealized portfolio investments,” “capital commitments,” “invested capital,” “adjusted assets,” “capital contributions,” or “stockholders’ equity,” each as defined in the applicable limited partnership agreement and/or management agreement of the unconsolidated funds or accounts.

Advisory and Transaction Fees, Net

As a result of providing advisory services with respect to actual and potential investments, we are entitled to receive fees for transactions related to the acquisition and, in certain instances, disposition and financing of companies, some of which are portfolio companies of the funds we manage, as well as fees for ongoing monitoring of portfolio company operations and directors’ fees. We also receive advisory fees for advisory services provided to certain funds. In addition, monitoring fees are generated on certain structured portfolio company investments. Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage (up to 100%) of such advisory and transaction fees, net of applicable broken deal costs (“Management Fee Offset”). Such amounts are presented as a reduction to advisory and transaction fees, net, in the condensed consolidated statements of operations (see note 2 to our condensed consolidated financial statements for more detail on advisory and transaction fees, net).

Performance Fees

The general partners of the funds we manage are entitled to an incentive return of normally up to 20% of the total returns of a fund’s capital, depending upon performance of the underlying funds and subject to preferred returns and high water marks, as applicable. Performance fees, categorized as performance allocations, are accounted for as an equity method investment, and effectively, the performance fees for any period are based upon an assumed liquidation of the funds’ assets at the reporting date, and distribution of the net proceeds in accordance with the funds’ allocation provisions. Performance fees categorized as incentive fees, which are not accounted as an equity method investment, are deferred until fees are probable to not be significantly reversed. Prior to the adoption of the new revenue recognition guidance, incentive fees were recognized on an assumed liquidation basis. The majority of performance fees are comprised of performance allocations.

As of September 30, 2022, approximately 45% of the value of the investments of the funds we manage on a gross basis was determined using market-based valuation methods (i.e., reliance on broker or listed exchange quotes) and the remaining 55% was determined primarily by comparable company and industry multiples or discounted cash flow models. See “Item 1A. Risk Factors—Risks Related to Our Businesses—Our funds’ performance, and our performance, may be adversely affected by the financial performance of our funds’ portfolio companies and the industries in which our funds invest” in the 2021 Annual Report for discussion regarding certain industry-specific risks that could affect the fair value of certain of the portfolio company investments of the funds we manage.

In certain equity funds we manage, the Company does not earn performance fees until the investors in the fund have achieved cumulative investment returns on invested capital (including management fees and expenses) in excess of an 8% hurdle rate. Additionally, certain of our yield and hybrid funds have various performance fee rates and hurdle rates. Certain of our yield and hybrid funds allocate performance fees to the general partner in a similar manner as the equity funds. In certain of our equity, yield and hybrid funds, so long as the investors achieve their priority returns, there is a catch-up formula whereby the Company earns a priority return for a portion of the return until the Company’s performance fees equate to its incentive fee rate for that fund; thereafter, the Company participates in returns from the fund at the performance fee rate. Performance fees, categorized as performance allocations, are subject to reversal to the extent that the performance fees distributed exceed the amount due to the general partner based on a fund’s cumulative investment returns. The Company recognizes potential repayment of previously received performance fees as a general partner obligation representing all amounts previously distributed to the general partner that would need to be repaid to the Apollo funds if these funds were to be liquidated based on the current fair value of the

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underlying funds’ investments as of the reporting date. The actual general partner obligation, however, would not become payable or realized until the end of a fund’s life or as otherwise set forth in the respective limited partnership agreement of the fund.

The table below presents an analysis of Apollo’s (i) performance fees receivable on an unconsolidated basis and (ii) realized and unrealized performance fees:

	As of September 30,		Performance Fees for the Three Months Ended September 30, 2022						Performance Fees for the Nine Months Ended September 30, 2022
	2022
	Performance Fees Receivable on an Unconsolidated Basis		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in thousands)
AIOF I and II	$	30,189	$	16,209	$	—	$	16,209	$	14,162	$	5,605	$	19,767
ANRP I, II and III(1)	28,573		(782)		317		(465)		(64,502)		2,148		(62,354)
EPF Funds(1)	127,309		9,335		9,588		18,923		(11,188)		46,995		35,807
FCI Funds	135,733		(12,021)		—		(12,021)		(3,552)		—		(3,552)
Fund IX	1,136,908		(32,853)		22,178		(10,675)		368,662		93,423		462,085
Fund VIII	293,810		(35,513)		8,083		(27,430)		(432,411)		14,429		(417,982)
Fund VII(2)	39,727		(9,568)		9,153		(415)		(37,738)		43,677		5,939
Fund VI	16,587		(304)		869		565		(845)		1,172		327
Fund IV and V(1)	—		136		—		136		(190)		—		(190)
HVF I	87,311		4,645		3,197		7,842		(18,771)		60,027		41,256
Real Estate Equity(1)	60,269		107		664		771		17,942		14,314		32,256
Corporate Credit	13,267		5,764		5,704		11,468		1,188		10,095		11,283
Structured Finance and ABS	75,096		6,814		3,880		10,694		(4,568)		14,159		9,591
Direct Origination	140,765		7,799		10,617		18,416		29,788		26,291		56,079
Other(1)(3)	357,417		(26,682)		38,732		12,050		29,394		84,575		113,969
Total	$	2,542,961	$	(66,914)	$	112,982	$	46,068	$	(112,629)	$	416,910	$	304,281
Total, net of profit sharing payable(4)/expense	1,153,713		(47,097)		37,181		(9,916)		(92,923)		55,048		(37,875)

(1)As of September 30, 2022, certain funds had $88.6 million in general partner obligations to return previously distributed performance fees. The fair value gain on investments and income at the fund level needed to reverse the general partner obligations was $1.4 billion, as of September 30, 2022.

(2)As of September 30, 2022, the remaining investments and escrow cash of Fund VII was valued at 112% of the fund’s unreturned capital, which was below the required escrow ratio of 115%. As a result, the fund is required to place in escrow current and future performance fee distributions to the general partner until the specified return ratio of 115% is met (at the time of a future distribution) or upon liquidation. As of September 30, 2022, Fund VII had $85.5 million of gross performance fees, or $48.7 million net of profit sharing, in escrow. With respect to Fund VII, realized performance fees currently distributed to the general partner are limited to potential tax distributions and interest on escrow balances per the fund’s partnership agreements. Performance fees receivable as of September 30, 2022 and realized performance fees for the three and nine months ended September 30, 2022 include interest earned on escrow balances that is not subject to contingent repayment.

(3)Other includes certain SIAs.

(4)There was a corresponding profit sharing payable of $1.4 billion as of September 30, 2022, including profit sharing payable related to amounts in escrow and contingent consideration obligations of $103.0 million.

The general partners of certain of the funds we manage accrue performance fees, categorized as performance allocations, when the fair value of investments exceeds the cost basis of the individual investors’ investments in the fund, including any allocable share of expenses incurred in connection with such investments, which we refer to as “high water marks.” These high water marks are applied on an individual investor basis. Certain funds we manage have investors with various high water marks, the achievement of which is subject to market conditions and investment performance.

Performance fees from certain funds we manage are subject to contingent repayment by the general partner in the event of future losses to the extent that the cumulative performance fees distributed from inception to date exceeds the amount computed as due to the general partner at the final distribution. These general partner obligations, if applicable, are included in due to related parties on the condensed consolidated statements of financial condition.

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The following table summarizes our performance fees since inception for our combined segments through September 30, 2022:

	Performance Fees Since Inception(1)
	Undistributed by Fund and Recognized		Distributed by Fund and Recognized(2)		Total Undistributed and Distributed by Fund and Recognized(3)		General Partner Obligation(3)		Maximum Performance Fees Subject to Potential Reversal(4)
	(in millions)
AIOF I and II	$	30.2	$	37.1	$	67.3	$	—	$	47.8
ANRP I, II and III	28.6		158.6		187.2		15.1		50.1
EPF Funds	127.3		457.5		584.8		26.9		348.0
FCI Funds	135.7		24.2		159.9		—		135.7
Fund IX	1,136.9		482.6		1,619.5		—		1,404.2
Fund VIII	293.8		1,653.2		1,947.0		—		1,354.9
Fund VII	39.7		3,225.1		3,264.8		—		14.9
Fund VI	16.6		1,663.9		1,680.5		—		—
Fund IV and V	—		2,053.1		2,053.1		31.9		0.6
HVF I	87.3		145.1		232.4		—		153.2
Real Estate Equity	60.3		71.2		131.5		1.5		71.5
Corporate Credit	13.3		926.0		939.3		—		7.6
Structured Finance and ABS	75.1		52.2		127.3		—		60.9
Direct Origination	140.8		69.6		210.4		—		127.8
Other(5)	357.4		1,681.2		2,038.6		13.2		538.7
Total	$	2,543.0	$	12,700.6	$	15,243.6	$	88.6	$	4,315.9

(1)Certain funds are denominated in euros and historical figures are translated into U.S. dollars at an exchange rate of €1.00 to $0.98 as of September 30, 2022. Certain funds are denominated in pounds sterling and historical figures are translated into U.S. dollars at an exchange rate of £1.00 to $1.12 as of September 30, 2022.

(2)Amounts in “Distributed by Fund and Recognized” for the Citi Property Investors (“CPI”), Gulf Stream Asset Management, LLC (“Gulf Stream”), Stone Tower Capital LLC and its related companies (“Stone Tower”) funds and SIAs are presented for activity subsequent to the respective acquisition dates. Amounts exclude certain performance fees from business development companies and Redding Ridge Holdings LP (“Redding Ridge Holdings”), an affiliate of Redding Ridge.

(3)Amounts were computed based on the fair value of fund investments on September 30, 2022. Performance fees have been allocated to and recognized by the general partner. Based on the amount allocated, a portion is subject to potential reversal or, to the extent applicable, has been reduced by the general partner obligation to return previously distributed performance fees at September 30, 2022. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of the fund’s investments based on contractual termination of the fund.

(4)Represents the amount of performance fees that would be reversed if remaining fund investments became worthless on September 30, 2022. Amounts subject to potential reversal of performance fees include amounts undistributed by a fund (i.e., the performance fees receivable), as well as a portion of the amounts that have been distributed by a fund, net of taxes and not subject to a general partner obligation to return previously distributed performance fees, except for those funds that are gross of taxes as defined in the respective funds’ governing documents.

(5)Other includes certain SIAs.

Expenses

Compensation and Benefits

Our most significant expense is compensation and benefits expense. This consists of fixed salary, discretionary and non-discretionary bonuses, profit sharing expense associated with the performance fees earned and compensation expense associated with the vesting of non-cash equity-based awards.

Our compensation arrangements with certain partners and employees contain a significant performance-based incentive component. Therefore, as our net revenues increase, our compensation costs rise. Our compensation costs also reflect the increased investment in people as we expand geographically and create new funds.

In addition, certain professionals and selected other individuals have a profit sharing interest in the performance fees earned in order to better align their interests with our own and with those of the investors in these funds. Profit sharing expense is part of our compensation and benefits expense and is generally based upon a fixed percentage of performance fees. Profit sharing expense can reverse during periods when there is a decline in performance fees that were previously recognized. Profit sharing

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amounts are normally distributed to employees after the corresponding investment gains have been realized and generally before preferred returns are achieved for the investors. Therefore, changes in our unrealized performance fees have the same effect on our profit sharing expense. Profit sharing expense increases when unrealized performance fees increases. Realizations only impact profit sharing expense to the extent that the effects on investments have not been recognized previously. If losses on other investments within a fund are subsequently realized, the profit sharing amounts previously distributed are normally subject to a general partner obligation to return performance fees previously distributed back to the funds. This general partner obligation due to the funds would be realized only when the fund is liquidated, which generally occurs at the end of the fund’s term. However, indemnification obligations also exist for realized gains with respect to Fund IV, Fund V and Fund VI, which, although our Former Managing Partners and Contributing Partners would remain personally liable, may indemnify our Former Managing Partners and Contributing Partners for 17.5% to 100% of the previously distributed profits regardless of the fund’s future performance. See note 14 to our condensed consolidated financial statements for further information regarding the Company’s indemnification liability.

Other Expenses

The balance of our other expenses includes interest, placement fees, and general, administrative and other operating expenses. Interest expense consists primarily of interest related to the 2024 Senior Notes, the 2026 Senior Notes, the 2029 Senior Notes, the 2030 Senior Notes, the 2048 Senior Notes and the 2050 Subordinated Notes as discussed in note 11 to our condensed consolidated financial statements. Placement fees are incurred in connection with our capital raising activities. In cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract, and amortized over the life of the customer contract. General, administrative and other expenses includes occupancy expense, depreciation and amortization, professional fees and costs related to travel, information technology and administration. Occupancy expense represents charges related to office leases and associated expenses, such as utilities and maintenance fees. Depreciation and amortization of fixed assets is normally calculated using the straight-line method over their estimated useful lives, ranging from two to sixteen years, taking into consideration any residual value. Leasehold improvements are amortized over the shorter of the useful life of the asset or the expected term of the lease. Intangible assets are amortized based on the future cash flows over the expected useful lives of the assets.

Other Income (Loss)

Net Gains (Losses) from Investment Activities

Net gains (losses) from investment activities include both realized gains and losses and the change in unrealized gains and losses in our investment portfolio between the opening reporting date and the closing reporting date. Net unrealized gains (losses) are a result of changes in the fair value of unrealized investments and reversal of unrealized gains (losses) due to dispositions of investments during the reporting period. Significant judgment and estimation goes into the assumptions that drive these models and the actual values realized with respect to investments could be materially different from values obtained based on the use of those models. The valuation methodologies applied impact the reported value of investment company holdings and their underlying portfolios in our condensed consolidated financial statements.

Net Gains (Losses) from Investment Activities of Consolidated Variable Interest Entities

Changes in the fair value of the consolidated VIEs’ assets and liabilities and related interest, dividend and other income and expenses subsequent to consolidation are presented within net gains (losses) from investment activities of consolidated variable interest entities and are attributable to non-controlling interests in the condensed consolidated statements of operations.

Other Income (Losses), Net

Other income (losses), net includes gains (losses) arising from the remeasurement of foreign currency denominated assets and liabilities, remeasurement of the tax receivable agreement liability and other miscellaneous non-operating income and expenses.

Income Taxes

Significant judgment is required in determining the provision for income taxes and in evaluating income tax positions, including evaluating uncertainties. We recognize the income tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the positions. The tax benefit is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If a tax position is not considered more likely than not to be sustained, then no benefits of the position are recognized. The Company’s income tax positions are reviewed and evaluated quarterly to determine whether or not we have uncertain tax positions that require financial statement recognition or de-recognition.

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Deferred tax assets and liabilities are recognized for the expected future tax consequences, using currently enacted tax rates, of differences between the carrying amount of assets and liabilities and their respective tax basis. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Non-Controlling Interests

For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to owners other than Apollo. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the condensed consolidated financial statements. As of September 30, 2022, the non-controlling interests relates to the 42.6% ownership interest in the Apollo Operating Group held directly by AGM. As of September 30, 2021, non-controlling interests include the 36.6% ownership interest in the Apollo Operating Group held by the Former Managing Partners and Contributing Partners through their limited partner interests in Holdings. Additionally, as of September 30, 2021, Athene held a 6.7% non-controlling interest in the Apollo Operating Group. Non-controlling interests also include limited partner interests in certain consolidated funds and VIEs.

Results of Operations

Below is a discussion of our condensed consolidated results of operations for the three and nine months ended September 30, 2022 and 2021. For additional analysis of the factors that affected our results at the segment level, see “—Segment Analysis” below:

	For the Three Months Ended September 30,				Total Change		Percentage Change	For the Nine Months Ended September 30,				Total Change		Percentage Change
	2022		2021					2022		2021
	(in thousands)							(in thousands)
Revenues:
Management fees	$	582,665	$	474,537	$	108,128	22.8%	$	1,665,611	$	1,401,814	$	263,797	18.8%
Advisory and transaction fees, net	110,141		62,831		47,310		75.3	286,419		205,530		80,889		39.4
Investment income (loss)	(29,248)		536,494		(565,742)		NM	480,889		3,125,371		(2,644,482)		(84.6)
Incentive fees	9,287		5,436		3,851		70.8	17,090		23,608		(6,518)		(27.6)
Total Revenues	672,845		1,079,298		(406,453)		(37.7)	2,450,009		4,756,323		(2,306,314)		(48.5)
Expenses:
Compensation and benefits
Salary, bonus and benefits	232,433		182,576		49,857		27.3	684,700		538,505		146,195		27.1
Equity-based compensation	104,164		56,218		47,946		85.3	372,922		165,664		207,258		125.1
Profit sharing expense	49,549		262,874		(213,325)		(81.2)	371,533		1,279,601		(908,068)		(71.0)
Total compensation and benefits	386,146		501,668		(115,522)		(23.0)	1,429,155		1,983,770		(554,615)		(28.0)
Interest expense	32,219		34,820		(2,601)		(7.5)	96,644		104,433		(7,789)		(7.5)
General, administrative and other	161,208		112,419		48,789		43.4	452,292		329,235		123,057		37.4
Total Expenses	579,573		648,907		(69,334)		(10.7)	1,978,091		2,417,438		(439,347)		(18.2)
Other Income:
Net gains (losses) from investment activities	(16,148)		172,798		(188,946)		NM	901,168		1,439,343		(538,175)		(37.4)
Net gains from investment activities of consolidated variable interest entities	11,387		142,455		(131,068)		(92.0)	327,459		400,452		(72,993)		(18.2)
Interest income	15,377		2,114		13,263		NM	23,999		3,557		20,442		NM
Other income (loss), net	3,533		(14,907)		18,440		NM	(9,480)		(28,126)		18,646		(66.3)
Total Other Income	14,149		302,460		(288,311)		(95.3)	1,243,146		1,815,226		(572,080)		(31.5)
Income before income tax provision	107,421		732,851		(625,430)		(85.3)	1,715,064		4,154,111		(2,439,047)		(58.7)
Income tax provision	(22,069)		(101,434)		79,365		(78.2)	(163,870)		(498,731)		334,861		(67.1)
Net Income	85,352		631,417		(546,065)		(86.5)	1,551,194		3,655,380		(2,104,186)		(57.6)
Net income attributable to non-controlling interests	(61,922)		(373,095)		311,173		(83.4)	(862,675)		(2,060,441)		1,197,766		(58.1)
Net Income Attributable to Apollo Asset Management, Inc.	23,430		258,322		(234,892)		(90.9)	688,519		1,594,939		(906,420)		(56.8)
Series A Preferred Stock Dividends	(4,383)		(4,382)		(1)		—	(13,149)		(13,148)		(1)		—
Series B Preferred Stock Dividends	(4,781)		(4,782)		1		—	(14,344)		(14,344)		—		—
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders	$	14,266	$	249,158	$	(234,892)	(94.3)%	$	661,026	$	1,567,447	$	(906,421)	(57.8)%

Note: “NM” denotes not meaningful. Changes from negative to positive amounts and positive to negative amounts are not considered meaningful. Increases or decreases from zero and changes greater than 500% are also not considered meaningful.

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Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021

In this section, references to 2022 refer to the three months ended September 30, 2022 and references to 2021 refer to the three months ended September 30, 2021.

Revenues

Revenues were $672.8 million in 2022, a decrease of $406.5 million from $1.1 billion in 2021, primarily driven by lower investment income (loss). Investment income (loss) decreased $565.7 million in 2022 to $(29.2) million compared to $536.5 million in 2021. The investment income (loss) of $(29.2) million in 2022 is comprised of principal investment income (losses) of $(70.4) million, partially offset by performance allocations of $41.1 million.

The principal investment income (losses) were primarily attributable to the decreased unrealized value of investments held by certain funds managed by Apollo and other entities in which the Company has a direct interest, mainly with respect to Motive Partners and AP Liberty L.P., as a result of the equity market volatility and public share price fluctuations in 2022. Significant drivers for performance allocations in 2021 were performance allocations earned from Fund IX, HVF I and Fund VII of $176.6 million, $52.6 million and $47.9 million, respectively, primarily as a result of fund appreciation and realization activity. Significant drivers for performance allocations in 2022 were performance allocations earned from EPF III and MidCap of $20.5 million and $13.5 million, respectively, partially offset by performance allocation losses from Fund VIII of $28.6 million.

See below for details on the respective funds’ performance allocations in 2022.

The performance allocations from EPF III in 2022 were primarily driven by net foreign currency gains, as the U.S. dollar strengthened compared to the euro, as well as increased performance allocations related to private positions held in the consumer services and financial services industries.

The performance allocations from MidCap in 2022 were primarily driven by higher interest income.

The performance allocation losses from Fund VIII in 2022 were primarily driven by the depreciation in the value of the fund’s investments in the consumer services, leisure, and media, telecom and technology sectors.

The decrease in investment income (loss) was offset, in part, by increases in management fees and advisory and transaction fees of $108.1 million and $47.3 million, respectively, in 2022. Management fees increased by $108.1 million to $582.7 million in 2022 from $474.5 million in 2021 due to increases in management fees earned from Athene of $40.6 million and Apollo Diversified Real Estate Fund (f/k/a Griffin Institutional Access Real Estate Fund) and Apollo Diversified Credit Fund (f/k/a Griffin Institutional Access Credit Fund) (collectively “ADREF and ADCF”) of $25.4 million, as a result of higher Fee-Generating AUM, driven by yield inflows, and the management fee contribution from the Griffin Capital U.S. asset management business acquisition. Advisory and transaction fees increased by $47.3 million to $110.1 million in 2022 from $62.8 million in 2021. Advisory and transaction fees earned in 2022 were primarily attributable to advisory and transaction fees earned from companies in the consumer services, financial services and natural resource sectors as well as structuring fees earned from companies in the financial services, real estate and consumer services sectors.

Expenses

Expenses were $579.6 million in 2022, a decrease of $69.3 million from $648.9 million in 2021 due to a decrease in profit sharing expense of $213.3 million resulting from lower investment income during 2022. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period. This decrease was partially offset by an increase in salary, bonus and benefits of $49.9 million and an increase in equity-based compensation of $47.9 million due to accelerated headcount growth in 2022. In addition, equity-based compensation increased as a result of: i) performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and ii) the impact of one-time grants awarded to the Co-Presidents which vest on a cliff basis subject to continued employment over five years and the Company’s achievement of FRE and Spread Related Earnings (“SRE”) per share metrics.

General, administrative and other expenses were $161.2 million in 2022, an increase of $48.8 million from $112.4 million in 2021. The increase in 2022 was primarily driven by increases in the amortization expense associated with the Company’s commitment asset, the absorption of occupancy expense to support the Company’s increased headcount, including from the acquisition of Griffin Capital’s U.S. asset management business, as well as higher travel and entertainment expenses.

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Other Income (Loss)

Other income (loss) was $14.1 million in 2022, a decrease of $288.3 million from $302.5 million in 2021 primarily due to a decrease in net gains from investment activities, as a result of AAM no longer holding an interest in Athene Holding following the Mergers, and a decrease in net gains from investment activities of consolidated VIEs, as a result of the Company’s deconsolidation of VIEs in the first half of 2022. Other income (loss) in 2022 was primarily attributable to higher interest income earned on the Company’s money market funds and U.S. Treasury securities, as a result of a rising interest rate environment, as well as gains from consolidated VIEs, which was offset, in part, by losses from certain of the Company’s balance sheet investments. Other Income (loss) in 2021 was primarily attributable to net gains from investment activities from the Company’s investment in Athene Holding during 2021.

Income Tax Provision

The Company’s income tax provision totaled $22.1 million and $101.4 million in 2022 and 2021, respectively. The change to the provision was primarily related to the decrease in pre-tax income. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 20.5% and 13.8% for 2022 and 2021, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) income pass through to non-controlling interests, (ii) foreign, state and local income taxes, including NYC UBT, and (iii) equity-based compensation net of the limiting provisions for executive compensation under Internal Revenue Code Section 162(m) (see note 10 to the condensed consolidated financial statements for further details regarding the Company’s income tax provision).

Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021

In this section, references to 2022 refer to the nine months ended September 30, 2022 and references to 2021 refer to the nine months ended September 30, 2021.

Revenues

Revenues were $2.5 billion in 2022, a decrease of $2.3 billion from $4.8 billion in 2021, primarily driven by lower investment income (loss). Investment income (loss) decreased $2.6 billion in 2022 to $480.9 million compared to $3.1 billion in 2021. The decrease in investment income (loss) of $2.6 billion in 2022 was primarily driven by decreases in performance allocations.

Significant drivers for performance allocations in 2021 were performance allocations earned from Fund IX, Fund VIII and Fund VII of $874.9 million, $682.9 million, $231.9 million, respectively, primarily as a result of fund appreciation and realization activity. Significant drivers for performance allocations in 2022 were performance allocations primarily earned from Fund IX of $473.5 million, partially offset by performance allocation losses from Fund VIII of $434.7 million, as a result of continued equity market volatility in 2022.

See below for details on the respective funds’ performance allocations in 2022.

The performance allocations from Fund IX in 2022 were primarily driven by the appreciation and realization of the fund’s investments in the consumer services, leisure, and media, telecom and technology sectors.

The performance allocation losses from Fund VIII were primarily driven by the depreciation in the value of the fund’s investments in the consumer services, leisure, and media, telecom and technology sectors.

The decrease in investment income was offset, in part, by increases in management fees and advisory and transaction fees of $263.8 million and $80.9 million, respectively, in 2022. Management fees increased by $263.8 million to $1.7 billion in 2022 from $1.4 billion in 2021 due to increases in management fees earned from Athene of $132.8 million, MidCap of $22.7 million, and ADREF and ADCF of $41.7 million, as a result of higher Fee-Generating AUM, driven by yield inflows, and the management fee contribution from the Griffin Capital U.S. asset management business acquisition. Advisory and transaction fees increased by $80.9 million to $286.4 million in 2022 from $205.5 million in 2021. Advisory and transaction fees earned during 2022 were primarily attributable to advisory and transaction fees earned from companies in the financial services, consumer services, healthcare, consumer and retail, real estate, natural resources and media, telecom and technology sectors, as well as structuring fees earned from companies in the financial services, consumer services, real estate and leisure sectors.

Expenses

Expenses were $2.0 billion in 2022, a decrease of $439.3 million from $2.4 billion in 2021 due to a decrease in profit sharing expense of $908.1 million resulting from the corresponding lower investment income during 2022. This decrease was partially offset by increases in equity-based compensation of $207.3 million and an increase in salary, bonus and benefits of $146.2

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million due to accelerated headcount growth in 2022, including for certain senior level roles, as the Company strategically invests in talent that will seek to capture its next phase of growth. In addition, equity-based compensation increased as a result of: i) performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and ii) the impact of one-time grants awarded to the Co-Presidents which vest on a cliff basis subject to continued employment over five years and the Company’s achievement of FRE and SRE per share metrics.

General, administrative and other expenses were $452.3 million in 2022, an increase of $123.1 million from $329.2 million in 2021. The increase in 2022 was primarily driven by increases in the amortization expense associated with the Company’s commitment asset, higher travel and entertainment expenses, as well as the absorption of occupancy expense to support the Company’s increased headcount, including from the acquisition of Griffin Capital’s U.S. asset management business.

Other Income

Other Income was $1.2 billion in 2022, a decrease of $572.1 million from $1.8 billion in 2021. This decrease was primarily driven by a decrease in net gains from investment activities, as a result of AAM no longer holding an interest in Athene Holding following the Mergers, and a decrease in net gains from investment activities of consolidated VIEs, as a result of the Company’s deconsolidation of such VIEs in 2022. Other Income in 2022 was primarily attributable to a gain from one of the Company’s balance sheet investments and income earned as a result of APSG I’s deconsolidation event. Other Income in 2021 was primarily due to net gains from investment activities from the Company’s investment in Athene Holding during 2021.

Income Tax Provision

The Company’s income tax provision totaled $163.9 million and $498.7 million in 2022 and 2021, respectively. The change to the provision was primarily related to the decrease in pre-tax income. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 9.6% and 12.0% for 2022 and 2021, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) income passed through to non-controlling interests, (ii) foreign, state and local income taxes, including NYC UBT, and (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m) (see note 10 to the condensed consolidated financial statements for further details regarding the Company’s income tax provision).

Managing Business Performance

We believe that the presentation of Adjusted Segment Income supplements a reader’s understanding of the economic operating performance of our segments.

Adjusted Segment Income

Adjusted Segment Income is the key performance measure used by management in evaluating the performance of Apollo’s asset management and principal investing segments. See note 16 to the condensed consolidated financial statements for more details regarding the components of Adjusted Segment Income.

We believe that Adjusted Segment Income is helpful for an understanding of our business and that investors should review the same supplemental financial measure that management uses to analyze our segment performance. This measure supplements and should be considered in addition to and not in lieu of the results of operations discussed below in “—Overview of Results of Operations” that have been prepared in accordance with U.S. GAAP. See note 16 to the condensed consolidated financial statements for more details regarding management’s consideration of Segment Earnings.

Fee Related Earnings and Principal Investing Income

FRE is a component of Adjusted Segment Income and represents the performance measure used to assess the performance of the asset management segment.

PII is a component of Adjusted Segment Income and represents the performance measure used to assess the performance of the principal investing segment.

See note 16 to the condensed consolidated financial statements for more details regarding the components of FRE and PII.

We use Adjusted Segment Income, FRE and PII as measures of operating performance, not as measures of liquidity. These measures should not be considered in isolation or as a substitute for net income or other income data prepared in accordance

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with U.S. GAAP. The use of these measures without consideration of their related U.S. GAAP measures is not adequate due to the adjustments described above.

Segment Analysis

Discussed below are our results of operations for each of our reportable segments. They represent the segment information available and utilized by management to assess performance and to allocate resources. See note 16 to our condensed consolidated financial statements for more information regarding our segment reporting.

Our financial results vary, since performance fees, which generally constitute a large portion of the income from the funds that we manage, as well as the transaction and advisory fees that we receive, can vary significantly from quarter to quarter and year to year. As a result, we emphasize long-term financial growth and profitability to manage our business.

Asset Management

The following table presents Fee Related Earnings, the performance measure of our asset management segment.

	Three Months ended September 30,				Total Change		Percentage Change	Nine Months ended September 30,				Total Change		Percentage Change
	2022		2021					2022		2021
	(in thousands)							(in thousands)
Asset Management:
Management fees - Yield	$	366,427	$	299,189	$	67,238	22.5%	$	1,041,947	$	872,034	$	169,913	19.5%
Management fees - Hybrid	52,923		43,535		9,388		21.6	153,935		124,291		29,644		23.9
Management fees - Equity	126,574		129,759		(3,185)		(2.5)	377,315		398,875		(21,560)		(5.4)
Management fees	545,924		472,483		73,441		15.5	1,573,197		1,395,200		177,997		12.8
Advisory and transaction fees, net	104,532		65,077		39,455		60.6	271,781		203,807		67,974		33.4
Fee-related performance fees	19,989		19,856		133		0.7	45,866		36,702		9,164		25.0
Fee-related compensation	(193,793)		(160,689)		(33,104)		20.6	(556,389)		(476,663)		(79,726)		16.7
Other operating expenses	(112,005)		(76,601)		(35,404)		46.2	(318,716)		(218,316)		(100,400)		46.0
Fee Related Earnings (FRE)	$	364,647	$	320,126	$	44,521	13.9	$	1,015,739	$	940,730	$	75,009	8.0

	Three Months ended September 30,				Total Change		Percentage Change	Nine Months ended September 30,				Total Change		Percentage Change
	2021		2020					2021		2020
	(in thousands)							(in thousands)
Asset Management:
Management fees - Yield	$	299,189	$	251,549	$	47,640	18.9%	$	872,034	$	693,668	$	178,366	25.7%
Management fees - Hybrid	43,535		35,505		8,030		22.6	124,291		100,414		23,877		23.8
Management fees - Equity	129,759		139,398		(9,639)		(6.9)	398,875		416,560		(17,685)		(4.2)
Management fees	472,483		426,452		46,031		10.8	1,395,200		1,210,642		184,558		15.2
Advisory and transaction fees, net	65,077		72,362		(7,285)		(10.1)	203,807		170,843		32,964		19.3
Fee-related performance fees	19,856		2,204		17,652		NM	36,702		8,048		28,654		356.0
Fee-related compensation	(160,689)		(137,927)		(22,762)		16.5	(476,663)		(384,349)		(92,314)		24.0
Other operating expenses	(76,601)		(70,899)		(5,702)		8.0	(218,316)		(197,484)		(20,832)		10.5
Fee Related Earnings (FRE)	$	320,126	$	292,192	$	27,934	9.6	$	940,730	$	807,700	$	133,030	16.5

In this section, references to 2022 refer to the three months ended September 30, 2022, references to 2021 refer to the three months ended September 30, 2021 and references to 2020 refer to the three months ended September 30, 2020.

Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021

FRE was $364.6 million in 2022, an increase of $44.5 million compared to $320.1 million in 2021. This increase was primarily attributable to continued growth in management fees and record quarterly advisory and transaction fees. The increase in management fees was primarily attributable to management fees earned from Athene of $39.2 million and ADREF and ADCF of $25.4 million, as a result of higher Fee-Generating AUM. Advisory and transaction fees earned in 2022 were primarily attributable to advisory and transaction fees earned from companies in the consumer services, financial services and natural resource sectors as well as structuring fees earned from companies in the financial services, real estate and consumer services sectors. The growth in revenues was offset, in part, by increases in other operating expenses and fee-related compensation

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expense associated with the re-basing of cost structure to support the Company’s next phase of growth, including costs associated with the acquisition of Griffin Capital’s U.S. asset management business.

Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020

FRE was $320.1 million in 2021, an increase of $27.9 million compared to $292.2 million in 2020. This increase was primarily attributable to the growth in management fees and fee-related performance fees. The increase in management fees was driven by the yield funds we manage, primarily from Athene. The increase in fee-related performance fees was primarily driven by fees earned from Redding Ridge Holdings and MFIC as each achieved its respective hurdle rates in 2021. The growth in revenues was offset, in part, by higher fee-related compensation expenses due to an increase in headcount as we continued to expand our global team in 2021.

In this section, references to 2022 refer to the nine months ended September 30, 2022, references to 2021 refer to the nine months ended September 30, 2021 and references to 2020 refer to the nine months ended September 30, 2020.

Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021

FRE was $1,015.7 million in 2022, an increase of $75.0 million compared to $940.7 million in 2021. This increase was primarily attributable to the continued growth in management fees and advisory and transaction fees. The increase in management fees was primarily attributable to an increase in management fees earned from Athene of $127.9 million and ADREF and ADCF of $41.7 million, as a result of higher Fee-Generating AUM. Advisory and transaction fees earned in 2022 were primarily attributable to advisory and transaction fees earned from companies in the financial services, consumer services, consumer and retail, real estate, natural resources and media, telecom and technology sectors, as well as structuring fees earned from companies in the financial services, consumer services and real estate sectors. The growth in revenues was offset, in part, by increases in fee-related compensation expense associated with the re-basing of cost structure to support the Company’s next phase of growth, as well as costs associated with the acquisition of Griffin Capital’s U.S. asset management business.

Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020

FRE was $940.7 million in 2021, an increase of $133.0 million compared to $807.7 million in 2020. This increase was primarily attributable to the growth in management fees and advisory and transaction fees. The increase in management fees was primarily driven by Athene, Athora and other funds we manage in our yield strategy. The increase in advisory and transaction fees was primarily driven by transaction and advisory fees earned related to companies in the consumer and retail industries, and transaction and placement fees earned in relation to a company in the media, telecom and technology sector in 2021. The growth in revenues was offset, in part, by higher fee-related compensation expense due to an increase in headcount as we continued to expand our global team in 2021.

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Asset Management Operating Metrics

We monitor certain operating metrics that are common to the alternative asset management industry and directly impact the performance of our asset management segment. These operating metrics include Assets Under Management, gross capital deployment and uncalled commitments.

Assets Under Management

The following presents Apollo’s Total AUM and Fee-Generating AUM by investing strategy (in billions):

The following presents Apollo’s AUM with Future Management Fee Potential by investing strategy (in billions):

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The following tables present the components of Performance Fee-Eligible AUM for each of Apollo’s three investing strategies within the asset management segment:

	As of September 30, 2022
	Yield(1)		Hybrid		Equity		Total
	(in millions)
Performance Fee-Generating AUM (1)	$	37,271	$	12,037	$	40,807	$	90,115
AUM Not Currently Generating Performance Fees	11,791		16,987		3,418		32,196
Uninvested Performance Fee-Eligible AUM	5,828		13,706		29,812		49,346
Total Performance Fee-Eligible AUM	$	54,890	$	42,730	$	74,037	$	171,657

	As of September 30, 2021
	Yield(1)		Hybrid		Equity		Total
	(in millions)
Performance Fee-Generating AUM (1)	$	37,064	$	16,733	$	38,733	$	92,530
AUM Not Currently Generating Performance Fees	1,318		4,593		3,175		9,086
Uninvested Performance Fee-Eligible AUM	2,524		15,350		21,468		39,342
Total Performance Fee-Eligible AUM	$	40,906	$	36,676	$	63,376	$	140,958

	As of December 31, 2021
	Yield(1)		Hybrid		Equity		Total
	(in millions)
Performance Fee-Generating AUM (1)	$	37,756	$	17,663	$	37,447	$	92,866
AUM Not Currently Generating Performance Fees	2,355		4,971		3,614		10,940
Uninvested Performance Fee-Eligible AUM	2,644		16,478		21,075		40,197
Total Performance Fee-Eligible AUM	$	42,755	$	39,112	$	62,136	$	144,003
(1) Performance Fee-Generating AUM of $3.9 billion, $4.2 billion and $5.2 billion as of September 30, 2022, September 30, 2021 and December 31, 2021, respectively, are above the hurdle rates or preferred returns and have been deferred to future periods when the fees are probable to not be significantly reversed.

The components of Fee-Generating AUM by investing strategy are presented below:

	As of September 30, 2022
	Yield		Hybrid		Equity			Total
	(in millions)
Fee-Generating AUM based on capital commitments	$	—	$	2,521	$	30,499		$	33,020
Fee-Generating AUM based on invested capital	3,400		9,738		12,748			25,886
Fee-Generating AUM based on gross/adjusted assets	280,874		4,789		560			286,223
Fee-Generating AUM based on NAV	39,665		9,110		316			49,091
Total Fee-Generating AUM	$	323,939	$	26,158	$	44,123	(1)	$	394,220
(1) The weighted average remaining life of the traditional private equity funds as of September 30, 2022 was 56 months.

	As of September 30, 2021
	Yield		Hybrid		Equity			Total
	(in millions)
Fee-Generating AUM based on capital commitments	$	—	$	2,576	$	30,935		$	33,511
Fee-Generating AUM based on invested capital	1,932		6,250		10,139			18,321
Fee-Generating AUM based on gross/adjusted assets	268,442		3,523		324			272,289
Fee-Generating AUM based on NAV	29,642		7,253		277			37,172
Total Fee-Generating AUM	$	300,016	$	19,602	$	41,675	(1)	$	361,293
(1) The weighted average remaining life of the traditional private equity funds at September 30, 2021 was 67 months.

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	As of December 31, 2021
	Yield		Hybrid		Equity			Total
	(in millions)
Fee-Generating AUM based on capital commitments	$	—	$	3,580	$	27,277		$	30,857
Fee-Generating AUM based on invested capital	2,321		6,826		12,075			21,222
Fee-Generating AUM based on gross/adjusted assets	273,695		4,293		406			278,394
Fee-Generating AUM based on NAV	31,290		7,146		192			38,628
Total Fee-Generating AUM	$	307,306	$	21,845	$	39,950	(1)	$	369,101
(1) The weighted average remaining life of the traditional private equity funds as of December 31, 2021 was 64 months.

Apollo, through its consolidated subsidiary, ISG, provides asset management services to Athene with respect to assets in the Athene Accounts, including asset allocation services, direct asset management services, asset and liability matching management, mergers and acquisitions, asset diligence, hedging and other asset management services and receives management fees for providing these services. Apollo, through ISG, also provides sub-allocation services with respect to a portion of the assets in the Athene Accounts. See note 14 to the condensed consolidated financial statements for more details regarding the fee rates of the investment management and sub-allocation fee arrangements with respect to the assets in the Athene Accounts. Apollo managed or advised $228.8 billion, $212.6 billion, and $203.6 billion of AUM on behalf of Athene as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

Apollo, through ISGI, provides investment advisory services with respect to certain assets in certain portfolio companies of Apollo funds and sub-advises the Athora Accounts and broadly refers to “Athora Sub-Advised” assets as those assets in the Athora Accounts which the Company explicitly sub-advises as well as those assets in the Athora Accounts which are invested directly in funds and investment vehicles Apollo manages. The Company refers to the portion of the Athora AUM that is not Athora Sub-Advised AUM as “Athora Non-Sub Advised” AUM. See note 14 to the condensed consolidated financial statements for more details regarding the fee arrangements with respect to the assets in the Athora Accounts. Apollo managed or advised $45.3 billion, $59.0 billion, and $61.0 billion of AUM on behalf of Athora as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

The following tables summarize changes in total AUM for each of Apollo’s three investing strategies:

	For the Three Months Ended September 30,
	2022								2021
	Yield		Hybrid		Equity		Total		Yield		Hybrid		Equity		Total
	(in millions)
Change in Total AUM(1):
Beginning of Period	$	375,753	$	56,120	$	82,889	$	514,762	$	338,729	$	47,041	$	86,005	$	471,775
Inflows	18,232		2,686		13,175		34,093		17,035		1,598		1,703		20,336
Outflows(2)	(9,466)		(265)		(99)		(9,830)		(3,868)		(294)		—		(4,162)
Net Flows	8,766		2,421		13,076		24,263		13,167		1,304		1,703		16,174
Realizations	(6,555)		(1,548)		(2,026)		(10,129)		(759)		(2,174)		(5,900)		(8,833)
Market Activity(3)	(5,332)		(255)		(17)		(5,604)		(173)		1,033		1,088		1,948
End of Period	$	372,632	$	56,738	$	93,922	$	523,292	$	350,964	$	47,204	$	82,896	$	481,064
(1) At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
(2) Outflows for Total AUM include redemptions of $1.0 billion and $0.6 billion during the three months ended September 30, 2022 and 2021, respectively.
(3) Includes foreign exchange impacts of $(5.1) billion and $(2.1) billion during the three months ended September 30, 2022 and 2021, respectively.

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	For the Nine Months Ended September 30,
	2022								2021
	Yield		Hybrid		Equity		Total		Yield		Hybrid		Equity		Total
	(in millions)
Change in Total AUM(1):
Beginning of Period	$	360,289	$	52,772	$	84,491	$	497,552	$	332,880	$	42,317	$	80,289	$	455,486
Inflows	72,353		9,288		18,737		100,378		40,358		6,615		4,781		51,754
Outflows(2)	(30,058)		(1,009)		(101)		(31,168)		(18,131)		(563)		(1,312)		(20,006)
Net Flows	42,295		8,279		18,636		69,210		22,227		6,052		3,469		31,748
Realizations	(8,181)		(4,248)		(9,025)		(21,454)		(2,435)		(4,324)		(14,817)		(21,576)
Market Activity(3)	(21,771)		(65)		(180)		(22,016)		(1,708)		3,159		13,955		15,406
End of Period	$	372,632	$	56,738	$	93,922	$	523,292	$	350,964	$	47,204	$	82,896	$	481,064
(1) At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
(2) Outflows for Total AUM include redemptions of $2.4 billion and $1.9 billion during the nine months ended September 30, 2022 and 2021, respectively.
(3) Includes foreign exchange impacts of $(12.2) billion and $(4.5) billion during the nine months ended September 30, 2022 and 2021, respectively.

The following tables summarize changes in Fee-Generating AUM for each of Apollo’s three investing strategies:

	For the Three Months Ended September 30,
	2022								2021
	Yield		Hybrid		Equity		Total		Yield		Hybrid		Equity		Total
	(in millions)
Change in Fee-Generating AUM(1):
Beginning of Period	$	314,062	$	25,123	$	41,609	$	380,794	$	291,680	$	19,128	$	42,752	$	353,560
Inflows	26,446		3,089		3,551		33,086		14,627		1,379		268		16,274
Outflows(2)	(11,007)		(1,431)		(154)		(12,592)		(5,713)		(833)		(163)		(6,709)
Net Flows	15,439		1,658		3,397		20,494		8,914		546		105		9,565
Realizations	(317)		(436)		(681)		(1,434)		(623)		(244)		(1,107)		(1,974)
Market Activity(3)	(5,245)		(187)		(202)		(5,634)		45		172		(75)		142
End of Period	$	323,939	$	26,158	$	44,123	$	394,220	$	300,016	$	19,602	$	41,675	$	361,293
(1) At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
(2) Outflows for Fee-Generating AUM include redemptions of $0.7 billion and $0.6 billion during the three months ended September 30, 2022 and 2021, respectively.
(3) Includes foreign exchange impacts of $(3.9) billion and $(1.7) billion during the three months ended September 30, 2022 and 2021, respectively.

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	For the Nine Months Ended September 30,
	2022								2021
	Yield		Hybrid		Equity		Total		Yield		Hybrid		Equity		Total
	(in millions)
Change in Fee-Generating AUM(1):
Beginning of Period	$	307,306	$	21,845	$	39,950	$	369,101	$	285,830	$	17,622	$	45,222	$	348,674
Inflows	64,799		8,248		6,262		79,309		36,070		4,402		1,098		41,570
Outflows(2)	(28,191)		(2,187)		(636)		(31,014)		(19,149)		(2,402)		(1,159)		(22,710)
Net Flows	36,608		6,061		5,626		48,295		16,921		2,000		(61)		18,860
Realizations	(993)		(1,327)		(1,101)		(3,421)		(1,581)		(880)		(3,374)		(5,835)
Market Activity(3)	(18,982)		(421)		(352)		(19,755)		(1,154)		860		(112)		(406)
End of Period	$	323,939	$	26,158	$	44,123	$	394,220	$	300,016	$	19,602	$	41,675	$	361,293
(1) At the individual strategy level, inflows include new subscriptions, commitments, capital raised, other increases in available capital, purchases, acquisitions and portfolio company appreciation. Outflows represent redemptions, other decreases in available capital and portfolio company depreciation. Realizations represent fund distributions of realized proceeds. Market activity represents gains (losses), the impact of foreign exchange rate fluctuations and other income.
(2) Outflows for Fee-Generating AUM include redemptions of $1.6 billion and $1.8 billion during the nine months ended September 30, 2022 and 2021, respectively.
(3) Includes foreign exchange impacts of $(9.6) billion and $(3.8) billion during the nine months ended September 30, 2022 and 2021, respectively.

Gross Capital Deployment and Uncalled Commitments

Gross capital deployment represents the gross capital that has been invested in investments by the funds and accounts we manage during the relevant period, but excludes certain investment activities primarily related to hedging and cash management functions at the firm. Gross capital deployment is not reduced or netted down by sales or refinancings, and takes into account leverage used by the funds and accounts we manage in gaining exposure to the various investments that they have made.

Uncalled commitments, by contrast, represent unfunded capital commitments that certain of Apollo’s funds have received from fund investors to fund future or current fund investments and expenses.

Gross capital deployment and uncalled commitments are indicative of the pace and magnitude of fund capital that is deployed or will be deployed, and which therefore could result in future revenues that include management fees, transaction fees and performance fees to the extent they are fee-generating. Gross capital deployment and uncalled commitments can also give rise to future costs that are related to the hiring of additional resources to manage and account for the additional capital that is deployed or will be deployed. Management uses gross capital deployment and uncalled commitments as key operating metrics since we believe the results are measures of investment activities of the funds we manage.

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The following presents gross capital deployment and uncalled commitments (in billions):

As of September 30, 2022 and December 31, 2021, Apollo had $51.5 billion and $47.2 billion of dry powder, respectively, which represents the amount of capital available for investment or reinvestment subject to the provisions of the applicable governing agreements of the funds, partnerships and accounts we manage. These amounts exclude uncalled commitments which can only be called for fund fees and expenses, and commitments from perpetual capital vehicles.

Principal Investing

The following table presents Principal Investing Income, the performance measure of our principal investing segment.

	Three months ended September 30,				Total Change		Percentage Change	Nine months ended September 30,				Total Change		Percentage Change
	2022		2021					2022		2021
	(in thousands)							(in thousands)
Principal Investing:
Realized performance fees	$	92,993	$	608,130	$	(515,137)	(84.7)%	$	371,044	$	1,183,640	$	(812,596)	(68.7)%
Realized investment income	61,410		295,225		(233,815)		(79.2)	537,776		397,610		140,166		35.3
Principal investing compensation	(87,580)		(309,016)		221,436		(71.7)	(398,566)		(631,382)		232,816		(36.9)
Other operating expenses	(7,214)		(12,014)		4,800		(40.0)	(19,250)		(34,149)		14,899		(43.6)
Principal Investing Income (PII)	$	59,609	$	582,325	$	(522,716)	(89.8)	$	491,004	$	915,719	$	(424,715)	(46.4)

	Three months ended September 30,				Total Change		Percentage Change	Nine months ended September 30,				Total Change		Percentage Change
	2021		2020					2021		2020
	(in thousands)							(in thousands)
Principal Investing:
Realized performance fees	$	608,130	$	17,445	$	590,685	NM	$	1,183,640	$	94,028	$	1,089,612	NM
Realized investment income	295,225		5,102		290,123		NM	397,610		22,141		375,469		NM
Principal investing compensation	(309,016)		(26,277)		(282,739)		NM	(631,382)		(119,818)		(511,564)		427.0
Other operating expenses	(12,014)		(9,861)		(2,153)		21.8	(34,149)		(42,354)		8,205		(19.4)
Principal Investing Income (PII)	$	582,325	$	(13,591)	$	595,916	NM	$	915,719	$	(46,003)	$	961,722	NM

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As described in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — General”, earnings from our principal investing segment are inherently more volatile in nature than earnings from our asset management segment due to the intrinsic cyclical nature of performance fees, one of the key drivers of PII performance.

In this section, references to 2022 refer to the three months ended September 30, 2022, references to 2021 refer to the three months ended September 30, 2021 and references to 2020 refer to the three months ended September 30, 2020.

Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021

PII was $59.6 million in 2022, a decrease of $522.7 million, as compared to $582.3 million in 2021. This decrease was primarily attributable to decreases in realized performance fees and realized investment income of $515.1 million and $233.8 million, respectively, as equity market volatility delayed monetization activity. Realized investment income of $61.4 million in 2022 was primarily driven by realized gains from the transfer of the Company’s investment in Redding Ridge to AAA. The decrease in PII was partially offset by a decrease in principal investing compensation expense.

Principal investing compensation expense decreased as a result of a corresponding decrease in realized performance fees. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period. Additionally, included in principal investing compensation are expenses related to the Incentive Pool, a compensation program through which certain employees are allocated discretionary compensation based on realized performance fees in a given year. The Incentive Pool is separate from the fund related profit sharing expense and may result in greater variability in compensation and have a variable impact on the blended profit sharing percentage during a particular period.

Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020

PII was $582.3 million in 2021, an increase of $595.9 million, as compared to $(13.6) million in 2020. This increase was primarily attributable to increases in realized performance fees and realized investment income, partially offset by an increase in principal investing compensation expense. Realized performance fees increased to $608.1 million in 2021 from $17.4 million in 2020 driven by an increase in realized performance fees generated from Fund IX, Fund VIII and Fund VII of $269.5 million, $182.0 million and $49.4 million, respectively. The increase in realized investment income was primarily attributable to an increase in realizations driven by the sale of a platform investment to certain funds we manage and Athora in 2021. Principal investing compensation expense increased as a result of a corresponding increase in realized performance fees as described above.

In this section, references to 2022 refer to the nine months ended September 30, 2022, references to 2021 refer to the nine months ended September 30, 2021 and references to 2020 refer to the nine months ended September 30, 2020.

Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021

PII was $491.0 million in 2022, a decrease of $424.7 million, as compared to $915.7 million in 2021. This decrease was primarily attributable to reduced realized performance fees and realized investment income as a result of delayed monetization activity in 2022, offset, in part, by a corresponding decrease in principal investing compensation. Realized investment income in 2022 was primarily attributable to dividends earned from one of our balance sheet investments, realized gains on the transfer of certain of Apollo’s general partner fund co-investments transferred to Athene that were subsequently transferred to AAA and realized gains from the transfer of the Company’s investment in Redding Ridge to AAA.

Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020

PII was $915.7 million in 2021, an increase of $961.7 million, as compared to $(46.0) million in 2020. This increase was primarily attributable to increases in realized performance fees and realized investment income, partially offset by an increase in principal investing compensation expenses. Realized performance fees increased to $1,183.6 million in 2021 from $94.0 million in 2020 driven by an increase in performance fees generated from Fund VIII and Fund IX of $577.1 million and $273.2 million, respectively. In 2020, the COVID-19 pandemic and the actions taken in response caused severe disruption to the global economy and financial markets. In line with public equity and credit indices, the Company experienced significant unrealized mark-to-market losses in underlying funds which significantly delayed monetization activity. The increase in realized investment income in 2021 was primarily attributable to an increase in realizations from the sale of a platform investment to certain funds we manage and Athora and an increase in realizations from Apollo’s equity ownership in Fund VIII. Principal investing compensation expense increased as a result of a corresponding increase in realized performance fees as described above.

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Liquidity and Capital Resources

Overview

Apollo’s business model primarily derives revenues and cash flows from the assets it manages. Based on management’s experience, we believe that the Company’s current liquidity position, together with the cash generated from revenues will be sufficient to meet the Company’s anticipated expenses and other working capital needs for at least the next 12 months. Apollo targets operating expense levels such that fee income exceeds total operating expenses each period. The Company requires limited capital resources to support the working capital or operating needs of the business. For Apollo’s longer-term liquidity needs, we expect to continue to fund the Company’s operations through management fees and performance fees received. Liquidity needs are also met (to a limited extent) through proceeds from borrowings and equity issuances as described in notes 11 and 13 to the condensed consolidated financial statements, respectively. From time to time, if the Company determines that market conditions are favorable after taking into account our liquidity requirements, we may seek to raise proceeds through the issuance of additional debt or equity instruments.

As of September 30, 2022, the Company had $1.1 billion of unrestricted cash and cash equivalents and $1.0 billion of U.S. Treasury Securities as well as $750 million of available funds from the AMH credit facility.

Primary Sources and Uses of Cash

Over the next 12 months, we expect the Company’s primary liquidity needs will be to:

•pay the Company’s operating expenses, including, compensation, general, administrative and other expense;

•pay interest and principal on the Company’s financing arrangements;

•pay cash dividends to Preferred shareholders;

•make payments under the tax receivable agreement;

•pay taxes and tax related payments;

•make payments related to the mandatory exchange; and

•support the future growth of Apollo’s businesses through strategic corporate investments.

Over the long term, we believe we will be able to grow Apollo’s Assets Under Management and generate positive investment performance in the funds we manage, which we expect will allow us to grow the Company’s management fees and performance fees in amounts sufficient to cover our long-term liquidity requirements, which may include:

•supporting the future growth of Apollo’s businesses;

•creating new or enhancing existing products and investment platforms;

•pursuing new strategic corporate investment opportunities;

•paying interest on and repaying outstanding short-term and long-term borrowings;

•pay cash dividends to Preferred shareholders;

•making payments under the tax receivable agreement; and

•making payments related to the mandatory exchange.

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Cash Flow Analysis

The section below discusses in more detail the Company’s primary sources and uses of cash and the primary drivers of cash flows within the Company’s condensed consolidated statements of cash flows:

	For the Nine Months Ended September 30,
	2022		2021
	(in thousands)
Operating Activities	$	(499,684)	$	2,136,995
Investing Activities	(230,069)		(343,604)
Financing Activities	540,568		(444,324)
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash and Cash Held at Consolidated Variable Interest Entities	$	(189,185)	$	1,349,067

The assets of our consolidated funds and VIEs (including SPACs), on a gross basis, can be substantially larger than the assets of our core business and, accordingly, could have a substantial effect on the accompanying statement of cash flows. Because our consolidated funds and VIEs are treated as investment companies for accounting purposes, their investing cash flow amounts are included in our cash flows from operations. The table below summarizes our condensed consolidated statements of cash flow by activity attributable to the Company and to our consolidated funds and VIEs.

	For the Nine Months Ended September 30,
	2022		2021
	(in thousands)
Net cash provided by the Company's operating activities	$	1,367,501	$	2,060,514
Net cash provided by (used in) the Consolidated Funds and VIEs operating activities	(1,867,185)		76,481
Net cash provided by (used in) operating activities	$	(499,684)	2,136,995
Net cash used in the Company's investing activities	$	(1,048,236)	(367,182)
Net cash provided by the Consolidated Funds and VIEs investing activities	818,167		23,578
Net cash used in investing activities	$	(230,069)	(343,604)
Net cash used in the Consolidated Funds and VIEs financing activities	$	(132,567)	(1,161,758)
Net cash provided by the Consolidated Funds and VIEs financing activities	673,135		717,434
Net cash provided by (used in) financing activities	$	540,568	$	(444,324)

Operating Activities

The Company’s operating activities support its asset management activities and underlying investment strategies. The primary sources of cash within the operating activities section include: (a) management fees, (b) advisory and transaction fees, (c) realized performance revenues, (d) due from related parties and (e) realized principal investment income. The primary uses of cash within the operating activities section include: (a) compensation and non-compensation related expenses, (b) interest and taxes, and (c) due to related parties.

•During the nine months ended September 30, 2022, cash used in operating activities reflects operating activities of our consolidated funds and VIEs, which primarily includes cash outflows for purchases of investments. Cash provided by the Company’s operating activities includes cash inflows from the receipt of management fees, advisory and transaction fees, realized performance revenues, and realized principal investment income, offset by cash outflows for compensation, general, administrative, and other expenses.

•During the nine months ended September 30, 2021 cash provided by operating activities primarily includes cash inflows from the receipt of management fees, advisory and transaction fees, realized performance revenues, and realized principal investment income, offset by cash outflows for compensation, general, administrative, and other expenses. Net cash provided by operating activities also reflects the operating activity of our consolidated funds and VIEs, which primarily include cash inflows from consolidated funds and from sales of investments, offset by cash outflows for purchases of investments.

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Investing Activities

The Company’s investing activities support the growth of its business. The primary sources of cash within the investing activities section include proceeds from maturities in U.S. Treasury securities. The primary uses of cash within the investing activities section include: (a) capital expenditures, (b) investment purchases, including purchases of U.S. Treasury securities, and (c) issuances of related party loans.

•During the nine months ended September 30, 2022, cash used in investing activities primarily reflects net outflows from the purchases of investments and U.S. Treasury securities.

•During the nine months ended September 30, 2021, cash used by investing activities primarily reflects purchases of investments in Motive Partners and Challenger Ltd. and net contributions to equity method investments. Net cash used in investing activities also reflects the investing activity of our consolidated funds and VIEs, which primarily reflects net proceeds from maturities of U.S. Treasury securities.

Financing Activities

The Company’s financing activities reflect its capital market transactions and transactions with owners. The primary uses of cash within the financing activities section include: (a) dividends, (b) issuances of warrants, (c) share repurchases, (d) cash paid to settle tax withholding obligations in connection with net share settlements of equity-based awards, (e) repayments of debt and (f) issuances of debt.

•During the nine months ended September 30, 2022, net cash provided by financing activities reflects the financing activity of our consolidated funds and VIEs, which primarily includes cash inflows from the issuance of debt, offset by repayments of debt, and the net proceeds from related party loans, offset by dividends paid.

•During the nine months ended September 30, 2021, cash used in financing activities primarily reflects dividends to Class A shareholders, distributions to non-controlling interest holders, and repurchases of Class A shares. Net cash used in financing activities also reflects the financing activity of our consolidated funds and VIEs, which primarily include cash inflows from the issuance of debt, net contributions from non-controlling interest in consolidated entities, proceeds from issuance of securities of a SPAC, partially offset by payment of underwriting discounts and cash outflows for the principal repayment of debt.

Future Debt Obligations

The Company had long-term debt of $2.8 billion at September 30, 2022, which includes notes with maturities in 2024, 2026, 2029, 2030, 2048 and 2050. See note 11 to the condensed consolidated financial statements for further information regarding the Company’s debt arrangements.

Contractual Obligations, Commitments and Contingencies

For a summary and a description of the nature of the Company’s commitments, contingencies and contractual obligations, see note 15 to the condensed consolidated financial statements and “—Contractual Obligations, Commitments and Contingencies.” The Company’s commitments are primarily fulfilled through cash flows from operations and (to a limited extent) through borrowings and equity issuances as described in notes 11 and 13 to the condensed consolidated financial statements, respectively.

Consolidated Funds and VIEs

The Company manages its liquidity needs by evaluating unconsolidated cash flows; however, the Company’s condensed consolidated financial statements reflect the financial position of Apollo as well as Apollo’s consolidated funds and VIEs (including SPACs). The primary sources and uses of cash at Apollo’s consolidated funds and VIEs include: (a) raising capital from their investors, which have been reflected historically as non-controlling interests of the consolidated subsidiaries in our condensed consolidated financial statements, (b) using capital to make investments, (c) generating cash flows from operations through distributions, interest and the realization of investments, (d) distributing cash flow to investors, (e) issuing debt to finance investments (CLOs) and (f) raising capital through SPAC vehicles for future acquisition of targeted entities.

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Other Liquidity and Capital Resource Considerations

Future Cash Flows

Our ability to execute our business strategy, particularly our ability to increase our AUM, depends on our ability to establish new funds and to raise additional investor capital within such funds. Our liquidity will depend on a number of factors, such as our ability to project our financial performance, which is highly dependent on the funds we manage and our ability to manage our projected costs, fund performance, access to credit facilities, compliance with existing credit agreements, as well as industry and market trends. Additionally, during economic downturns, the funds we manage may experience cash flow issues or liquidate entirely. In these situations, the Company may be asked to reduce or eliminate the management fees and performance fees charged, which could adversely impact our cash flow in the future.

An increase in the fair value of underlying portfolio companies of the funds we manage, by contrast, could favorably impact our liquidity through higher management fees where the management fees are calculated based on the net asset value, gross assets or adjusted assets. Additionally, higher performance fees not yet realized would generally result when investments appreciate over their cost basis which would not have an impact on the Company’s cash flow until realized.

Consideration of Financing Arrangements

As noted above, in limited circumstances, the Company may issue debt or equity to supplement its liquidity. The decision to enter into a particular financing arrangement is made after careful consideration of various factors including the Company’s cash flows from operations, future cash needs, current sources of liquidity, demand for the Company’s debt or equity, and prevailing interest rates.

Revolver Facility

Under the 2022 AMH credit facility, AMH may borrow in an aggregate amount not to exceed $1.0 billion and may incur incremental facilities in an aggregate amount not to exceed $250 million plus additional amounts so long as AMH is in compliance with a net leverage ratio not to exceed 4.00 to 1.00. Borrowings under the 2022 AMH credit facility may be used for working capital and general corporate purposes, including without limitation, permitted acquisitions. The 2022 AMH credit facility has a final maturity date of October 12, 2027. See note 11 to the condensed consolidated financial statements for details regarding the AMH credit facility refinancing, which occurred during the fourth quarter of 2022.

Dividends

Although the Company currently expects to pay dividends on our Preferred shares and may pay dividends on our common stock in the future, we may not pay dividends if, among other things, we do not have the cash necessary to pay the dividends. To the extent we do not have cash on hand sufficient to pay dividends, we may have to borrow funds to pay dividends, or we may determine not to pay dividends. The declaration, payment and determination of the amount of our dividends are at the sole discretion of our board of directors.

On November 2, 2022, the Company declared a cash dividend of $0.398438 per Series A Preferred share and Series B Preferred share which will be paid on December 15, 2022 to holders of record at the close of business on December 1, 2022.

Tax Receivable Agreement

The tax receivable agreement provides for the payment to the Former Managing Partners and Contributing Partners of 85% of the amount of cash savings, if any, in U.S. federal, state, local and foreign income taxes that AGM and its subsidiaries realizes subject to the agreement. For more information regarding the tax receivable agreement, see note 14 to the condensed consolidated financial statements.

AOG Unit Payment

On December 31, 2021, holders of AOG Units (other than Athene and the Company) sold and transferred a portion of such AOG Units to APO Corp., a consolidated subsidiary of the Company, in exchange for an amount equal to $3.66 multiplied by the total number of AOG Units held by such holders immediately prior to such transaction (such payment, the “AOG Unit Payment”). The remainder of the AOG Units held by such holders were exchanged for shares of HoldCo common stock concurrently with the closing of the Mergers on January 1, 2022.

As of September 30, 2022, the outstanding payable amount in connection with the AOG Unit Payment was $394 million, payable in equal installments through December 31, 2024. See note 14 for more information.

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Athora

On April 14, 2017, Apollo made a commitment of €125 million to purchase new Class B-1 equity interests in Athora, a strategic platform that acquires and reinsures traditional closed life insurance policies and provides capital and reinsurance solutions to insurers in Europe which, as of April 2020 was fully drawn. In January 2018, Apollo purchased Class C-1 equity interests in Athora that represent a profits interest in Athora which, upon meeting certain vesting triggers, will be convertible by Apollo into additional Class B-1 equity interests in Athora.

In connection with Athora’s acquisition of VIVAT N.V., Apollo exercised its preemptive rights and made an additional incremental commitment of approximately €58 million to purchase new Class B-1 equity interests in Athora. In addition, in April 2020, Apollo purchased Class C-2 equity interests in Athora that represent a profits interest in Athora which, upon meeting certain vesting triggers, will be convertible by Apollo into additional Class B-1 equity interests in Athora.

In November 2021, Apollo made an additional commitment to purchase up to €120 million of new Class B-1 equity interests in Athora, to be drawn in connection with three separate offerings over a period of three years, with a commitment of up to €30 million in 2021, up to €40 million in 2022 and up to €50 million in 2023. Athora’s other common shareholders may exercise preemptive rights to acquire common shares in connection with each offering and any such exercise will reduce the total amount of new Class B-1 equity interests ultimately purchased by Apollo. In connection with the 2021 offering, Apollo acquired approximately €21.9 million of new Class B-1 equity interests. In addition, Apollo purchased Class C-3 equity interests in Athora in connection with the 2021 offering that represent a profits interest in Athora which, upon meeting certain vesting triggers, will be convertible by Apollo into additional Class B-1 equity interests in Athora. The remaining commitments are drawable in four installments between 2022 and 2024.

In December 2021, Apollo committed an additional €250 million to purchase new Class B-1 equity interests to support Athora’s ongoing growth initiatives, of which €180 million was drawn as of December 31, 2021. Apollo expects the remaining €70 million will be drawn in 2022, pending regulatory approvals.

Apollo and Athene are minority investors in Athora with a long-term strategic relationship. Through its share ownership, Apollo has approximately 19.9% of the total voting power in Athora, and Athene holds shares in Athora representing 10% of the total voting power in Athora. In addition, Athora shares held by funds and other accounts managed by Apollo represent, in the aggregate, approximately 15.1% of the total voting power in Athora.

For more information regarding unfunded general partner commitments, see “—Contractual Obligations, Commitments and Contingencies.”

Fund Escrow

As of September 30, 2022, the remaining investments and escrow cash of Fund VII was valued at 112% of the fund’s unreturned capital which was below the required escrow ratio of 115%. As a result, the fund is required to place in escrow current and future performance fee distributions to the general partner until the specified return ratio of 115% is met (at the time of a future distribution) or upon liquidation. Realized performance fees currently distributed to the general partner are limited to potential tax distributions and interest on escrow balances per the fund’s partnership agreement.

Clawback

Performance fees from certain of the funds we manage are subject to contingent repayment by the general partner in the event of future losses to the extent that the cumulative performance fees distributed from inception to date exceeds the amount computed as due to the general partner at the final distribution. See “—Overview of Results of Operations—Performance Fees” for the maximum performance fees subject to potential reversal by each fund.

Indemnification Liability

The Company recorded an indemnification liability in the event that the Former Managing Partners, Contributing Partners and certain investment professionals are required to pay amounts in connection with a general partner obligation to return previously distributed performance fees. See note 14 to the condensed consolidated financial statements for further information regarding the Company’s indemnification liability.

Investment Management Agreements - ISG

The Company provides asset management and advisory services to Athene as described in note 14 to the condensed consolidated financial statements.

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The base management fee covers a range of investment services that Athene receives from the Company, including investment management, asset allocation, mergers and acquisition asset diligence and certain operational support services such as investment compliance, tax, legal and risk management support, among others. Commensurate to the prior fee agreement, the amended fee agreement provides for a possible payment by the Company to Athene, or a possible payment by Athene to the Company, equal to 0.00625% of the Incremental Value as of the end of each quarter, depending upon the percentage of Athene’s investments that consist of core assets and core plus assets. In furtherance of yield support for Athene, if more than 60% of Athene’s invested assets which are subject to the sub-allocation fees are invested in core and core plus assets, Athene will receive a 0.00625% fee reduction on the Incremental Value. As an incentive for differentiated asset management, if less than 50% of Athene’s invested assets which are subject to the sub-allocation fee are invested in core and core plus assets, thereby reflecting a higher allocation toward assets with the highest alpha-generating abilities, Athene will pay an additional fee of 0.00625% on Incremental Value.

Critical Accounting Estimates and Policies

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon the condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that could affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates. A summary of our significant accounting policies is presented in note 2 to our condensed consolidated financial statements and should be read in conjunction with our significant accounting policies described in note 2 of our consolidated financial statements in our 2021 Annual Report.

The following is a summary of our accounting policies that are affected most by judgments, estimates and assumptions.

•Consolidation of VIEs

•Revenue Recognition

◦Performance Fees within Investment Income

◦Management Fees

•Investments, at fair value

•Fair value of financial instruments

•Income taxes

The above critical accounting estimates and judgments are discussed in detail in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates and Policies” of our 2021 Annual Report.

Recent Accounting Pronouncements

A list of recent accounting pronouncements that are relevant to Apollo and its industry is included in note 2 to our condensed consolidated financial statements.

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Contractual Obligations, Commitments and Contingencies

The Company’s material contractual obligations consisted of lease obligations, contractual commitments as part of the ongoing operations of the funds, debt obligations, and AOG Unit Payments. Fixed and determinable payments due in connection with these obligations are as follows as of September 30, 2022:

	Remaining 2022		2023 - 2024		2025 - 2026		2027 and Thereafter		Total
	(in thousands)
Operating lease obligations(1)	$	15,713	$	139,875	$	135,306	$	538,217	$	829,111
Other long-term obligations(2)	15,966		17,403		249		—		33,618
AMH credit facility(3)	169		1,350		611		—		2,130
Debt obligations(3)	29,679		741,412		700,066		2,569,515		4,040,672
AOG Unit Payment (4)	43,817		350,534		—		—		394,351
Obligations	$	105,344	$	1,250,574	$	836,232	$	3,107,732	$	5,299,882
(1) Operating lease obligations excludes $196.0 million of other operating expenses associated with operating leases.
(2) Includes (i) payments on management service agreements related to certain assets and (ii) payments with respect to certain consulting agreements entered into by the Company. Note that a significant portion of these costs are reimbursable by funds.
(3) See note 11 of the condensed consolidated financial statements for further discussion of these debt obligations.
(4) See note 14 to the condensed consolidated financial statements for more information regarding the AOG Unit Payment.

Note:    Due to the fact that the timing of certain amounts to be paid cannot be determined or for other reasons discussed below, the following contractual commitments have not been presented in the table above.

(i)As noted previously, we have entered into a tax receivable agreement with our Former Managing Partners and Contributing Partners which requires us to pay to our Former Managing Partners and Contributing Partners 85% of any tax savings received by AGM and its subsidiaries from our step-up in tax basis. The tax savings achieved may not ensure that we have sufficient cash available to pay this liability and we might be required to incur additional debt to satisfy this liability.

(ii)Debt amounts related to the consolidated VIEs are not presented in the table above as the Company is not a guarantor of these non-recourse liabilities.

(iii)In connection with the Stone Tower acquisition, the Company agreed to pay the former owners of Stone Tower a specified percentage of any future performance fees earned from certain of the Stone Tower funds, CLOs and strategic investment accounts. This contingent consideration liability is remeasured to fair value at each reporting period until the obligations are satisfied. See note 15 to the condensed consolidated financial statements for further information regarding the contingent consideration liability.

(iv)Commitments from certain of our subsidiaries to contribute to the funds we manage and certain related parties.

Commitments

Certain of our management companies and general partners are committed to contribute to the funds we manage and certain related parties. While a small percentage of these amounts are funded by us, the majority of these amounts have historically been funded by our related parties, including certain of our employees and certain Apollo funds. The table below presents the commitment and remaining commitment amounts of Apollo and its related parties and the commitment and remaining commitment amounts of Apollo only (excluding related parties) for each fund as of September 30, 2022 (in millions):

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Fund	Apollo and Related Party Commitments		Apollo Only (Excluding Related Party) Commitments		Apollo and Related Party Remaining Commitments		Apollo Only (Excluding Related Party) Remaining Commitments
Yield:
Apollo Origination Partners	$	1,490.7	$	20.7	$	313.9	$	6.3
Athora(1)	1,378.2		445.6		68.6		68.6
Other Yield	14,381.4		322.6		3,370.9		42.2
Total Yield	17,250.3		788.9		3,753.4		117.1
Hybrid:
HVF II	1,509.7		10.1		927.4		6.2
HVF I	896.5		8.7		283.5		1.9
FCI IV	222.5		21.0		203.6		19.2
SCRF IV	446.1		0.1		293.4		0.1
Accord V	141.3		22.2		88.6		13.9
Accord+	697.7		39.4		394.5		22.3
Apollo Infrastructure Opportunities Fund II	607.6		47.6		481.2		38.5
Apollo Infrastructure Opportunities Fund I(3)	322.8		9.0		85.8		2.5
Other Hybrid	9,573.6		462.0		1,988.0		125.3
Total Hybrid	14,417.8		620.1		4,746.0		229.9
Equity:
Fund IX	1,914.5		34.4		700.9		7.3
Fund VII	467.2		178.1		6.7		3.7
ANRP III	680.1		9.8		344.5		5.0
EPF IV(1)	436.6		36.6		374.8		31.4
EPF III(1)	582.9		1.5		186.6		0.1
EPF II(1)	407.6		60.2		88.8		17.7
EPF I(1)	263.3		17.3		42.3		4.0
U.S. RE Fund III(2)	418.3		6.8		226.6		3.9
U.S. RE Fund II(2)	746.7		4.9		158.6		0.9
U.S. RE Fund I(2)	433.0		16.1		24.0		2.4
Asia RE Fund II(2)	916.4		2.1		711.7		0.9
Asia RE Fund I(2)	365.6		8.4		161.1		3.0
Apollo S3 Equity Holdings	500.1		0.1		500.1		0.1
Other Equity	8,778.9		188.7		2,291.5		84.9
Total Equity	16,911.2		565.0		5,818.2		165.3
Total	$	48,579.3	$	1,974.0	$	14,317.6	$	512.3
(1) Apollo’s commitment in these funds is denominated in euros and translated into U.S. dollars at an exchange rate of €1.00 to $0.98 as of September 30, 2022.
(2) Figures for U.S. RE Fund I include base, additional, and co-investment commitments. A co-investment vehicle within U.S. RE Fund I is denominated in pounds sterling and translated into U.S. dollars at an exchange rate of £1.00 to $1.12 as of September 30, 2022. Figures for U.S. RE Fund II, U.S. RE Fund III, Asia RE Fund I and Asia RE Fund II include co-investment commitments.
(3) Figures for AIOF I include Apollo Infra Equity U.S. Fund, L.P. and Apollo Infra Equity International Fund, L.P. commitments.

The 2022 AMH credit facility, 2024 Senior Notes, 2026 Senior Notes, 2029 Senior Notes, 2030 Senior Notes, 2048 Senior Notes and the 2050 Subordinated Notes will have future impacts on our cash uses. See note 11 of our condensed consolidated financial statements for information regarding the Company’s debt arrangements.

Contingent Obligation

Performance fees with respect to certain funds are subject to reversal in the event of future losses to the extent of the cumulative performance fees recognized in income to date. See note 15 of our condensed consolidated financial statements for a description of our contingent obligation.

One of the Company’s subsidiaries, AGS, provides underwriting commitments in connection with securities offerings of related parties of Apollo, including portfolio companies of the funds Apollo manages, as well as third parties. As of September 30, 2022 and December 31, 2021, there were no open underwriting commitments.

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our predominant exposure to market risk is related to our role as investment manager and general partner for the funds we manage and the sensitivity to movements in the fair value of their investments and resulting impact on performance fees and management fee revenues. Our direct investments in the funds also expose us to market risk whereby movements in the fair values of the underlying investments will increase or decrease both net gains (losses) from investment activities and income (loss) from equity method investments. A description of our market risk exposures may be found under Part II—Item 7A. Quantitative and Qualitative Disclosures About Market Risk of our 2021 Annual Report.

There have been no material changes to our market risk exposures from those previously disclosed in our 2021 Annual Report.

ITEM 4.    CONTROLS AND PROCEDURES

We maintain “disclosure controls and procedures”, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Co-Presidents and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired objectives.

Our management, including our Co-Presidents and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act as of the end of the period covered by this report. Based on that evaluation, our Co-Presidents and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are effective at the reasonable assurance level to accomplish their objectives of ensuring that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Co-Presidents and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

No changes in our internal control over financial reporting (as such term is defined in Rules 13a–15(f) and 15d–15(f) under the Exchange Act) occurred during our most recent quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

See note 15 to our condensed consolidated financial statements for a summary of the Company’s legal proceedings.

ITEM 1A.    RISK FACTORS     

For a discussion of our potential risks and uncertainties, see the information under the heading "Risk Factors" in our 2021 Annual Report, which is accessible on the Securities and Exchange Commission's website at www.sec.gov. The risks described in our 2021 Annual Report are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no material changes to the risk factors disclosed in our 2021 Annual Report, except for the following:

Many of our funds invest in relatively high-risk, illiquid assets and we may fail to realize any profits from these assets for a considerable period of time or lose some or all of the principal amount we invest in these assets if we are required to sell invested assets at a loss at inopportune times or in response to changes in applicable rules and regulations.

Many of our funds invest in securities or other financial instruments that are not publicly traded or are otherwise viewed as “illiquid.” In many cases, our funds may be prohibited by contract or by applicable securities laws from selling such securities for a period of time. Our funds will generally not be able to sell these securities publicly unless their sale is registered under applicable securities laws, or unless an exemption from such registration requirements is available. The ability of many of our funds, particularly our private equity funds, to dispose of investments is heavily dependent on the public equity markets, inasmuch as the ability to realize value from an investment may depend upon the ability to complete an IPO of the portfolio company in which such investment is held. Furthermore, large holdings even of publicly traded equity securities can often be disposed of only over a substantial period of time, exposing the investment returns to risks of downward movement in market prices during the disposition period. Moreover, because the investment strategy of many of our funds often entails our having representation on public portfolio company boards, our funds may be restricted in their ability to affect such sales during certain time periods. Accordingly, our funds may be forced, under certain conditions, to sell securities at a loss.

Further, governmental and regulatory authorities periodically review legislative and regulatory initiatives, and may promulgate new or revised, or adopt changes in the interpretation and enforcement of existing, rules and regulations at any time that may impact our investments. For example, Rule 15c2-11 under the Exchange Act governs the submission of quotes into quotation systems by broker-dealers and has historically been applied to the over-the-counter equity markets. However, the SEC recently stated that it intends to apply the rule to fixed income markets, potentially restricting the ability of market participants to publish quotations for applicable fixed income securities after January 3, 2023. Such change in regulatory requirements could disrupt market liquidity, make it more difficult for us to source and invest in attractive private investments, and cause securities in investment portfolios of the funds we manage that are not publicly traded to lose value, any of which could have a material and adverse effect on our business, financial condition or results of operations.

Proposed changes in U.S. and foreign taxation of business may adversely affect us.

We are subject to tax laws in the U.S. and numerous foreign jurisdictions. The U.S. and many international legislative and regulatory bodies continually propose and enact legislation that could significantly impact how U.S. multinational corporations are taxed. In the U.S., on August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “IRA”). The IRA contains a number of tax-related provisions including a 15% minimum corporate income tax on certain large corporations as well as an excise tax on stock repurchases. It is unclear how the IRA will be implemented by the U.S. Department of the Treasury through regulation. We are still evaluating the impact of the IRA on our tax liability, which tax liability could also be affected by how the provisions of the IRA are implemented through such regulation. We will continue to evaluate the IRA’s impact as further information becomes available. In addition, proposed U.S. legislation would change the “Global Intangible Low-Taxed Income” (“GILTI”) regime, reduce the deduction for “Foreign-Derived Intangible Income” (“FDII”), and create a new limitation on interest deductions as well as other corporate tax reform. Due to the large scale of our U.S. and international business activities, many of these proposed changes, if enacted into law, could have an adverse impact on our worldwide effective tax rate, income tax expense and cash flows.

In addition, other changes could be enacted in the future to increase the corporate tax rate, limit further the deductibility of interest, subject carried interest to more onerous taxation or effect other changes that could have a material adverse effect on our business, results of operations and financial condition. Other changes to tax laws enacted by state or local governments in jurisdictions in which we or our portfolio companies operate, could result in further changes to state and local taxation and materially adversely affect our business, results of operations and financial condition. If these proposals are ultimately enacted into legislation, they could materially impact our tax provision, cash tax liability and effective tax rate.

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Our effective tax rate and tax liability is based on the application of current income tax laws, regulations and treaties. These laws, regulations and treaties are complex, and the manner which they apply to us and our funds is sometimes open to interpretation. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. Although management believes its application of current laws, regulations and treaties to be correct and sustainable upon examination by the tax authorities, the tax authorities could challenge our interpretation resulting in additional tax liability or adjustment to our income tax provision that could increase our effective tax rate. Specifically, the IRS could challenge our claims to increases in the tax basis of assets in the Apollo Operating Group arising from our incorporation and from various tax elections that have been made in connection therewith. Further, we cannot predict how changes in Public Law Number 115-97, formerly known as the Tax Cuts and Jobs Act, regulations, technical corrections or other guidance issued under it or conforming or non-conforming state tax rules might affect us or our business or the business of our funds’ portfolio companies.

In addition, we or certain of our funds’ portfolio companies are currently (or have been recently) under tax audit in various jurisdictions, including the U.S., India, and the United Kingdom, and these jurisdictions or any others where we conduct business may assess additional tax against us. While we believe our tax positions, determinations, and calculations are reasonable, the final determination of tax upon resolution of any audits could be materially different from our historical tax provisions and accruals. Should additional material taxes be assessed as a result of an audit, assessment, or litigation, there could be an adverse effect on our results of operations and cash flows in the period or periods for which that determination is made.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

Not applicable.    

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

Not applicable.

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ITEM 6.    EXHIBITS

Exhibit Number	Exhibit Description
2.1	Agreement and Plan of Merger, dated as of March 8, 2021, by and among Apollo Global Management, Inc., Athene Holding Ltd., Tango Holdings, Inc., Blue Merger Sub, Ltd., and Green Merger Sub, Inc. (incorporated by reference to Exhibit 2.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 8, 2021 (File No. 001-35107)).
3.1	Second Amended and Restated Certificate of Incorporation of Apollo Asset Management, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on January 3, 2022 (File No. 001-35107)).
3.2	Certificate of Amendment of Second Amended and Restated Certificate of Incorporation of Apollo Asset Management, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on February 11, 2022 (File No. 001-35107)).
3.3	Second Amended and Restated Bylaws of Apollo Asset Management, Inc. (incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on January 3, 2022 (File No. 001-35107)).
4.1	Form of 6.375% Series A Preferred Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-A/A filed with the Securities and Exchange Commission on September 5, 2019 (File No. 001-35107)).
4.2	Form of 6.375% Series B Preferred Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-A/A filed with the Securities and Exchange Commission on September 5, 2019 (File No. 001-35107)).
4.3	Indenture dated as of May 30, 2014, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on May 30, 2014 (File No. 001-35107)).
4.4	First Supplemental Indenture dated as of May 30, 2014, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on May 30, 2014 (File No. 001-35107)).
4.5	Form of 4.000% Senior Note due 2024 (included in Exhibit 4.2 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on May 30, 2014 (File No. 001-35107), which is incorporated by reference).
4.6	Second Supplemental Indenture dated as of January 30, 2015, among Apollo Management Holdings, L.P., the Guarantors party thereto, Apollo Principal Holdings X, L.P. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.5 to the Registrant’s Form 10-K for the period ended December 31, 2014 (File No. 001-35107)).
4.7	Third Supplemental Indenture dated as of February 1, 2016, among Apollo Management Holdings, L.P., the Guarantors party thereto, Apollo Principal Holdings XI, LLC and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.6 to the Registrant’s Form 10-Q for the period ended March 31, 2016 (File No. 001-35107)).

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4.8	Fourth Supplemental Indenture dated as of May 27, 2016, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on May 27, 2016 (File No. 001-35107)).
4.9	Form of 4.400% Senior Note due 2026 (included in Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on May 27, 2016 (File No. 001-35107), which is incorporated by reference).
4.10	Fifth Supplemental Indenture dated as of April 13, 2017, among Apollo Management Holdings, L.P., the Guarantors party thereto, Apollo Principal Holdings XII, L.P. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.8 to the Registrant’s Form 10-Q for the period ended March 31, 2017 (File No. 001-35107)).
4.11	Sixth Supplemental Indenture dated as of March 15, 2018, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the registrant’s Form 8-K filed with the Securities and Exchange Commission on March 15, 2018 (File No. 001-35107)).
4.12	Form of 5.000% Senior Note due 2048 (included in Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 15, 2018 (File No. 001-35107), which is incorporated by reference).
4.13	Seventh Supplemental Indenture dated as of February 7, 2019, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the registrant’s Form 8-K filed with the Securities and Exchange Commission on February 7, 2019 (File No. 001-35107)).
4.14	Form of 4.872% Senior Note due 2029 (included in Exhibit 4.1 to Registrant’s Form 8-K filed with the Securities and Exchange Commission on February 7, 2019 (File No. 001-35107), which is incorporated by reference).
4.15	Eighth Supplemental Indenture dated as of June 11, 2019, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the registrant’s Form 8-K filed with the Securities and Exchange Commission on June 11, 2019 (File No. 001-35107)).
4.16	Indenture dated as of June 10, 2019, among APH Finance I, LLC, APH Finance 2, LLC, APH Finance 3, LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.17 to the Registrant’s Form 10-Q for the period ended June 30, 2019 (File No. 001-35107)).
4.17	Amendment No. 1, dated and effective as of September 30, 2019, to Indenture dated as of June 10, 2019, among APH Finance I, LLC, APH Finance 2, LLC, APH Finance 3, LLC and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.17 to the Registrant’s Form 10-Q for the period ended September 30, 2019 (File No. 001-35107)).
4.18	Indenture, dated as of December 17, 2019, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 17, 2019 (File No. 001-35107)).
4.19	Form of 4.950% Fixed-Rate Resettable Subordinated Note due 2050 (included in Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on December 17, 2019 (File No. 001-35107), which is incorporated by reference).

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4.20	Ninth Supplemental Indenture, dated as of June 5, 2020, among Apollo Management Holdings, L.P., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on June 5, 2020 (File No. 001-35107)).
4.21	Form of 2.650% Senior Note due 2030 (included in Exhibit 4.1 to the Registrant’s Form 8-K filed with the Securities and Exchange Commission on June 5, 2020 (File No. 001-35107), which is incorporated by reference).
*31.1	Certification of Co-Principal Executive Officer pursuant to Rule 13a-14(a).
*31.2	Certification of Co-Principal Executive Officer pursuant to Rule 13a-14(a).
*31.3	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).
*32.1	Certification of Co-Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
*32.2	Certification of Co-Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
*32.3	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
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*101.SCH	XBRL Taxonomy Extension Schema Document
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
*101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB	XBRL Taxonomy Extension Label Linkbase Document
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
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* Filed herewith.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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SIGNATURES

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

		Apollo Asset Management, Inc.
		(Registrant)
Date: November 8, 2022	By:	/s/ Johannes Worsoe
		Name:	Johannes Worsoe
		Title:	Chief Financial Officer (principal financial officer and authorized signatory)

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EX-31.1

Exhibit 31.1

CO-PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

I, Scott Kleinman, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of Apollo Asset Management, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 8, 2022

/s/ Scott Kleinman

Scott Kleinman

Co-President

(co-principal executive officer)

EX-31.2

Exhibit 31.2

CO-PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

I, James Zelter, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of Apollo Asset Management, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 8, 2022

/s/ James Zelter

James Zelter

Co-President

(co-principal executive officer)

EX-31.3

Exhibit 31.3

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Johannes Worsoe, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of Apollo Asset Management, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 8, 2022

/s/ Johannes Worsoe

Johannes Worsoe

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of the Co-Principal Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Apollo Asset Management, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Scott Kleinman, Co-President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2022

/s/ Scott Kleinman

Scott Kleinman

Co-President

(co-principal executive officer)

* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

Certification of the Co-Principal Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Apollo Asset Management, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James Zelter, Co-President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2022

/s/ James Zelter

James Zelter

Co-President

(co-principal executive officer)

* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.3

Exhibit 32.3

Certification of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Apollo Asset Management, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Johannes Worsoe, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 8, 2022

/s/ Johannes Worsoe

Johannes Worsoe

Chief Financial Officer

* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-35107
Entity Registrant Name	APOLLO ASSET MANAGEMENT, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-8880053
Entity Address, Address Line One	9 West 57th Street,
Entity Address, Address Line Two	42nd Floor
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10019
City Area Code	212
Local Phone Number	515-3200
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,000
Entity Central Index Key	0001411494
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
6.375% Series A Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	6.375% Series A Preferred Stock
Trading Symbol	AAM.PR A
Security Exchange Name	NYSE
6.375% Series B Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	6.375% Series B Preferred Stock
Trading Symbol	AAM.PR B
Security Exchange Name	NYSE

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 1,118,305	$ 917,183
Restricted cash and cash equivalents	696,712	707,885
Investments (includes performance allocations of $2,502,446 and $2,731,733 as of September 30, 2022 and December 31, 2021, respectively)	6,090,938	11,353,580
Assets of consolidated variable interest entities:
Other assets	1,084,421	585,901
Due from related parties	687,687	493,826
Deferred tax assets, net	659,662	424,132
Other assets	1,084,421	585,901
Lease assets	596,487	450,531
Goodwill	263,744	116,958
Total Assets	12,318,082	30,501,894
Liabilities:
Accounts payable and accrued expenses	126,603	145,054
Accrued compensation and benefits	262,804	130,107
Deferred revenue	134,949	119,688
Due to related parties	1,681,013	1,222,402
Profit sharing payable	1,497,780	1,444,652
Debt	2,810,055	3,134,396
Liabilities of consolidated variable interest entities:
Other liabilities	305,210	500,980
Other liabilities	305,210	500,980
Lease liabilities	669,081	505,206
Total Liabilities	8,145,121	18,537,494
Commitments and Contingencies (see note 15)
Redeemable non-controlling interests:
Redeemable non-controlling interests	1,023,707	1,770,034
Apollo Asset Management, Inc. Stockholders’ Equity:
Common stock	0	0
Additional paid in capital	1,242,618	2,096,403
Retained earnings (accumulated deficit)	(3,901)	1,143,899
Accumulated other comprehensive loss	(9,906)	(5,374)
Total Apollo Asset Management, Inc. Stockholders’ Equity	1,783,024	3,789,141
Total Stockholders’ Equity	3,149,254	10,194,366
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity	12,318,082	30,501,894
Consolidated Variable Interest Entities
Assets:
Cash and cash equivalents	84,132
Assets of consolidated variable interest entities:
Cash and cash equivalents	84,132	463,266
Investments, at fair value	1,016,819	14,737,051
Other assets	19,175	251,581
Other assets	19,175	251,581
Liabilities of consolidated variable interest entities:
Debt, at fair value	0	7,942,508
Notes payable	49,990	2,611,019
Other liabilities	607,636	781,482
Other liabilities	607,636	781,482
Consolidated Entities Excluding VIE
Apollo Asset Management, Inc. Stockholders’ Equity:
Non-controlling interests	371,439	3,813,885
Series A Preferred Stock
Apollo Asset Management, Inc. Stockholders’ Equity:
Preferred stock	264,398	264,398
Series B Preferred Stock
Apollo Asset Management, Inc. Stockholders’ Equity:
Preferred stock	289,815	289,815
Class A Common Stock
Apollo Asset Management, Inc. Stockholders’ Equity:
Common stock	0	0
Class B Common Stock
Apollo Asset Management, Inc. Stockholders’ Equity:
Common stock	0	0
Class C Common Stock
Apollo Asset Management, Inc. Stockholders’ Equity:
Common stock	0	0
Apollo Operating Group
Apollo Asset Management, Inc. Stockholders’ Equity:
Non-controlling interests	$ 994,791	$ 2,591,340

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Performance allocations	$ 2,502,446	$ 2,731,733
Common stock, par value (in USD per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	40,000,000	0
Common stock, shares issued (in shares)	1,000	0
Common stock, shares outstanding (in shares)	1,000	0
Series A Preferred Stock
Preferred stock, shares issued (in shares)	11,000,000	11,000,000
Preferred stock, shares outstanding (in shares)	11,000,000	11,000,000
Series B Preferred Stock
Preferred stock, shares issued (in shares)	12,000,000	12,000,000
Preferred stock, shares outstanding (in shares)	12,000,000	12,000,000
Class A Common Stock
Common stock, par value (in USD per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	0	90,000,000,000
Common stock, shares issued (in shares)	0	248,896,649
Common stock, shares outstanding (in shares)	0	248,896,649
Class B Common Stock
Common stock, par value (in USD per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	0	999,999,999
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0
Class C Common Stock
Common stock, par value (in USD per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	0	1
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Investment income (loss)	$ (29,248)	$ 536,494	$ 480,889	$ 3,125,371
Total Revenues	672,845	1,079,298	2,450,009	4,756,323
Expenses:
Compensation and benefits	386,146	501,668	1,429,155	1,983,770
Interest expense	32,219	34,820	96,644	104,433
General, administrative and other	161,208	112,419	452,292	329,235
Total Expenses	579,573	648,907	1,978,091	2,417,438
Other Income:
Net gains (losses) from investment activities	(16,148)	172,798	901,168	1,439,343
Net gains from investment activities of consolidated variable interest entities	11,387	142,455	327,459	400,452
Interest income	15,377	2,114	23,999	3,557
Other income (loss), net	3,533	(14,907)	(9,480)	(28,126)
Total Other Income	14,149	302,460	1,243,146	1,815,226
Income before income tax provision	107,421	732,851	1,715,064	4,154,111
Income tax provision	(22,069)	(101,434)	(163,870)	(498,731)
Net Income	85,352	631,417	1,551,194	3,655,380
Net income attributable to non-controlling interests	(61,922)	(373,095)	(862,675)	(2,060,441)
Net Income Attributable to Apollo Asset Management, Inc.	23,430	258,322	688,519	1,594,939
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders	14,266	249,158	661,026	1,567,447
Series A Preferred Stock Dividends
Other Income:
Preferred Stock Dividends	(4,383)	(4,382)	(13,149)	(13,148)
Series B Preferred Stock Dividends
Other Income:
Preferred Stock Dividends	(4,781)	(4,782)	(14,344)	(14,344)
Management fees
Revenues:
Revenues	582,665	474,537	1,665,611	1,401,814
Advisory and transaction fees, net
Revenues:
Revenues	110,141	62,831	286,419	205,530
Incentive fees
Revenues:
Revenues	$ 9,287	$ 5,436	$ 17,090	$ 23,608

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net Income	$ 85,352	$ 631,417	$ 1,551,194	$ 3,655,380
Other Comprehensive Loss, net of tax:
Currency translation adjustments, net of tax	(34,098)	(10,712)	(70,510)	(22,148)
Net gain from change in fair value of cash flow hedge instruments	0	49	1,976	151
Net gain (loss) on available-for-sale securities	(232)	21	(2,131)	691
Total Other Comprehensive Loss, net of tax	(34,330)	(10,642)	(70,665)	(21,306)
Comprehensive Income	51,022	620,775	1,480,529	3,634,074
Comprehensive income attributable to non-controlling interests	(29,642)	(363,013)	(796,542)	(2,040,166)
Comprehensive Income Attributable to Apollo Asset Management, Inc.	$ 21,380	$ 257,762	$ 683,987	$ 1,593,908

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Common Stock Class C Common Stock	Preferred Stock Series A Preferred Stock	Preferred Stock Series B Preferred Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Apollo Asset Management, Inc. Stockholders’ Equity	Non- Controlling Interests in Consolidated Entities	Non- Controlling Interests in Apollo Operating Group
Balance, beginning of period (in shares) at Dec. 31, 2020			228,873,449	1	1
Balance, beginning of period at Dec. 31, 2020	$ 5,513,263					$ 264,398	$ 289,815	$ 877,173	$ 0	$ (2,071)	$ 1,429,315	$ 2,275,728	$ 1,808,220
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidation/ deconsolidation of VIEs	(147,920)											(147,920)
Accretion of redeemable non-controlling interests	(49,554)							(49,554)			(49,554)
Issuance of Class A Common Stock related to equity transactions (in shares)			361,037
Issuance of Class A Common Stock related to equity transactions	22,150							22,150			22,150
Dilution impact of issuance of Class A Common Stock	(7,994)							(7,994)			(7,994)
Capital increase related to equity-based compensation	131,889							131,889			131,889
Capital contributions	1,189,296											1,189,296
Dividends/ Distributions	(1,597,750)					(13,148)	(14,344)		(389,661)		(417,153)	(778,529)	(402,068)
Payments related to issuances of Class A Common Stock for equity-based awards (in shares)			2,981,780
Payments related to issuances of Class A Common Stock for equity-based awards	(62,491)							36,439	(98,930)		(62,491)
Repurchase of Class A Common Stock (in shares)			(3,444,713)
Repurchase of Class A Common Stock	(200,605)							(200,605)			(200,605)
Exchange of AOG Units for Class A Common Stock (in shares)			16,621,639
Exchange of AOG Units for Class A Common Stock	49,687							208,441			208,441		(158,754)
Net Income	3,655,380					13,148	14,344		1,567,447		1,594,939	299,423	1,761,018
Currency translation adjustments, net of tax	(22,148)									(1,527)	(1,527)	(19,151)	(1,470)
Net gain from change in fair value of cash flow hedge instruments	151									82	82		69
Net income (Loss) on available-for-sale securities	691									414	414		277
Balance, end of period (in shares) at Sep. 30, 2021			245,393,192	1	1
Balance, end of period at Sep. 30, 2021	8,474,045					264,398	289,815	1,017,939	1,078,856	(3,102)	2,647,906	2,818,847	3,007,292
Balance, beginning of period (in shares) at Jun. 30, 2021			231,366,321	1	1
Balance, beginning of period at Jun. 30, 2021	8,212,435					264,398	289,815	822,612	990,798	(2,542)	2,365,081	2,838,121	3,009,233
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidation/ deconsolidation of VIEs	(22,705)											(22,705)
Accretion of redeemable non-controlling interests	(6,911)							(6,911)			(6,911)
Issuance of Class A Common Stock related to equity transactions (in shares)			361,037
Issuance of Class A Common Stock related to equity transactions	22,150							22,150			22,150
Dilution impact of issuance of Class A Common Stock	(6,699)							(6,699)			(6,699)
Capital increase related to equity-based compensation	45,631							45,631			45,631
Capital contributions	176,878											176,878
Dividends/ Distributions	(530,012)					(4,382)	(4,782)	0	(125,843)		(135,007)	(276,561)	(118,444)
Payments related to issuances of Class A Common Stock for equity-based awards (in shares)			1,164,390
Payments related to issuances of Class A Common Stock for equity-based awards	(2,032)							33,225	(35,257)		(2,032)
Repurchase of Class A Common Stock (in shares)			(1,300,000)
Repurchase of Class A Common Stock	(77,902)							(77,902)			(77,902)
Exchange of AOG Units for Class A Common Stock (in shares)			13,801,444
Exchange of AOG Units for Class A Common Stock	42,437							185,833			185,833		(143,396)
Net Income	631,417					4,382	4,782		249,158		258,322	112,569	260,526
Currency translation adjustments, net of tax	(10,712)									(599)	(599)	(9,455)	(658)
Net gain from change in fair value of cash flow hedge instruments	49									27	27		22
Net income (Loss) on available-for-sale securities	21									12	12		9
Balance, end of period (in shares) at Sep. 30, 2021			245,393,192	1	1
Balance, end of period at Sep. 30, 2021	8,474,045					264,398	289,815	1,017,939	1,078,856	(3,102)	2,647,906	2,818,847	3,007,292
Balance, beginning of period (in shares) at Dec. 31, 2021			248,896,649
Balance, beginning of period at Dec. 31, 2021	10,194,366					264,398	289,815	2,096,403	1,143,899	(5,374)	3,789,141	3,813,885	2,591,340
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reverse stock split (in shares)		(248,895,649)
Consolidation/ deconsolidation of VIEs	(4,356,218)							7,741	(6,865)		876	(4,357,094)
Accretion of redeemable non-controlling interests	(58,989)							(58,989)			(58,989)
Capital contributions	2,317,122							819,341			819,341	1,497,781
Dividends/ Distributions	(6,450,142)					(13,149)	(14,344)	(1,644,464)	(1,801,961)		(3,473,918)	(802,153)	(2,174,071)
Transactions between entities under common control	22,586							22,586			22,586
Net Income	1,551,194					13,149	14,344		661,026		688,519	276,984	585,691
Currency translation adjustments, net of tax	(70,510)									(3,901)	(3,901)	(57,964)	(8,645)
Net gain from change in fair value of cash flow hedge instruments	1,976									882	882		1,094
Net income (Loss) on available-for-sale securities	(2,131)									(1,513)	(1,513)		(618)
Balance, end of period (in shares) at Sep. 30, 2022			1,000
Balance, end of period at Sep. 30, 2022	3,149,254					264,398	289,815	1,242,618	(3,901)	(9,906)	1,783,024	371,439	994,791
Balance, beginning of period (in shares) at Jun. 30, 2022			1,000
Balance, beginning of period at Jun. 30, 2022	3,260,969					264,398	289,815	1,378,038	0	(7,856)	1,924,395	381,697	954,877
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Consolidation/ deconsolidation of VIEs	296,936											296,936
Accretion of redeemable non-controlling interests	(10,402)							(10,402)			(10,402)
Capital contributions	91,273							90,549			90,549	724
Dividends/ Distributions	(563,130)					(4,383)	(4,781)	(238,153)	(18,167)		(265,484)	(297,646)	0
Transactions between entities under common control	22,586							22,586			22,586
Net Income	85,352					4,383	4,781		14,266		23,430	17,795	44,127
Currency translation adjustments, net of tax	(34,098)									(1,917)	(1,917)	(28,067)	(4,114)
Net gain from change in fair value of cash flow hedge instruments	0
Net income (Loss) on available-for-sale securities	(232)									(133)	(133)		(99)
Balance, end of period (in shares) at Sep. 30, 2022			1,000
Balance, end of period at Sep. 30, 2022	$ 3,149,254					$ 264,398	$ 289,815	$ 1,242,618	$ (3,901)	$ (9,906)	$ 1,783,024	$ 371,439	$ 994,791

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities:
Net income	$ 1,551,194	$ 3,655,380
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity-based compensation	372,922	165,664
Depreciation and amortization	57,867	19,895
Unrealized (gains) losses from investment activities	130,901	(1,403,617)
Net investment income	(480,889)	(3,125,371)
Deferred taxes, net	(239,902)	357,212
Other non-cash amounts included in net income (loss), net	33,748	29,995
Changes in operating assets and liabilities:
Due from related parties	(71,710)	(11,784)
Accounts payable and accrued expenses	(18,600)	89,330
Accrued compensation and benefits	135,341	156,899
Deferred revenue	15,262	144,835
Due to related parties	2,784	(15,260)
Profit sharing payable	76,028	537,572
Lease liability	(46,207)	(21,017)
Other assets and other liabilities, net	(899,127)	95,686
Earnings from net investment income	840,193	1,717,972
Satisfaction of contingent obligations	(13,259)	(20,609)
Apollo Funds and VIE related:
Net cash provided by (used in) operating activities	(499,684)	2,136,995
Cash Flows from Investing Activities:
Purchases of fixed assets	(152,559)	(27,729)
Proceeds from sale of investments	39,106	88,595
Purchase of investments	(340,983)	(369,716)
Purchase of U.S. Treasury securities	(2,650,907)	0
Proceeds from maturities of U.S. Treasury securities	2,154,352	0
Cash contributions to principal investments	(160,981)	(255,495)
Cash distributions from principal investments	60,954	247,798
Related party inflows (Repayments)	19,839	96,308
Related party outflows (Issuances)	(17,087)	(121,605)
Other investing activities, net	0	(1,387)
Net cash used in investing activities	(230,069)	(343,604)
Cash Flows from Financing Activities:
Dividends to Preferred Stockholders	(27,493)	(27,492)
Satisfaction of tax receivable agreement	(51,032)	(39,884)
Distributions related to AGM’s repurchase of Common Stock	0	(200,605)
Distributions related to deliveries of AGM’s Common Stock for RSUs	(165,194)	(98,930)
Dividends / Distributions	(720,377)	(389,661)
Distributions paid to non-controlling interests in Apollo Operating Group	0	(402,068)
AOG Unit Payment	(175,267)	0
Due to parent, net	667,942	0
Other financing activities, net	(2,772)	(3,118)
Apollo Funds and VIE related:
Net cash provided by (used in) financing activities	540,568	(444,324)
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs	(189,185)	1,349,067
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs, Beginning of Period	2,088,334	2,466,531
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Funds and VIEs, End of Period	1,899,149	3,815,598
Supplemental Disclosure of Cash Flow Information:
Interest paid	84,222	95,912
Interest paid by consolidated variable interest entities	171,857	321,520
Income taxes paid	103,902	79,071
Supplemental Disclosure of Non-Cash Investing Activities:
Contributions to principal investments	0	57,911
Distributions from principal investments	5,870	92,402
Purchases of other investments, at fair value	21,531	0
Sales of other investments, at fair value	115,813	0
Capital increases related to equity-based compensation	321,460	131,889
Contributions	334,919	0
Issuance of restricted shares	33,460	36,439
Other non-cash financing activities	0	(7,994)
Investments, at fair value	(15,996,073)	(244,675)
Other assets	(97,925)	0
Debt at Fair Value	9,350,540	36,857
Notes payable	2,611,019	107,500
Other liabilities	528,595	22,704
Non-controlling interest	4,396,682	125,215
Deferred tax assets	0	292,844
Due to related parties	0	(243,157)
Additional paid in capital	0	(49,687)
Non-controlling interest in Apollo Operating Group	0	158,754
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Consolidated Statements of Financial Condition:
Cash and cash equivalents	1,118,305	2,090,197
Restricted cash and cash equivalents	696,712	1,052,782
Total Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities	1,899,149	3,815,598
Consolidated Variable Interest Entities
Apollo Funds and VIE related:
Net realized and unrealized gains from investing activities and debt	(115,445)	(444,064)
Change in consolidation	(792,838)	(47,601)
Purchases of investments	(4,819,793)	(2,886,717)
Proceeds from sale of investments	3,106,215	3,188,133
Changes in other assets and other liabilities, net	675,631	(45,538)
Cash Flows from Investing Activities:
Purchase of U.S. Treasury securities	(1,508,782)	(1,634,259)
Proceeds from maturities of U.S. Treasury securities	2,326,979	1,633,886
Apollo Funds and VIE related:
Issuance of debt	1,760,996	842,299
Principal repayment of debt	(668,362)	(1,539,457)
Distributions paid to non-controlling interests in consolidated entities	(798,458)	(774,876)
Contributions from non-controlling interests in consolidated entities	1,496,857	1,188,691
Distributions to redeemable non-controlling interests	(776,272)	0
Payment of underwriting discounts	0	(34,223)
Proceeds from issuance of Class A Units of a SPAC	0	1,035,000
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, and Cash and Cash Equivalents Held at Consolidated Variable Interest Entities to the Consolidated Statements of Financial Condition:
Cash and cash equivalents	$ 84,132	$ 672,619

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ORGANIZATION

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION

Apollo Asset Management, Inc. (“AAM”, together with its consolidated subsidiaries, the “Company” or “Apollo”) is a high-growth, global alternative asset manager whose predecessor was founded in 1990. Its primary business is to raise, invest and manage funds on behalf of pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. For these investment management services, Apollo receives management fees generally related to the amount of assets managed, transaction and advisory fees, incentive fees and performance allocations related to the performance of the respective funds that it manages. As of September 30, 2022, Apollo had two primary business segments:

•Asset Management — focuses on three investing strategies: yield, hybrid and equity; yield focuses on generating excess returns through high quality credit underwriting and origination of safe-yielding assets; hybrid focuses across debt and equity to offer a differentiated risk-adjusted return with an emphasis on structured downside protected opportunities across asset classes; and within equity, controlled transactions are principally buyouts, corporate carveouts and distressed investments, while our real estate funds generally focus on single asset, portfolio and platform acquisitions;

•Principal Investing — primarily includes our general partner investments in the funds we manage, where we earn realized performance fee income based on the investment performance of these funds. Principal investing also includes our growth capital and liquidity resources, and seeks to deploy capital into strategic investments over time to help accelerate the growth of the asset management segment.

Organization of the Company

As of September 30, 2022, the Company owned 57.4% of the economic interests of, and operated and controlled all of the businesses and affairs of, the Apollo Operating Group. The remaining 42.6% of the economic interests of the Apollo Operating Group are owned by Apollo Global Management, Inc. (“AGM”).

Apollo and Athene Merger

On January 1, 2022, Apollo and Athene Holding Ltd. (“Athene”) completed the previously announced merger transactions pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) by and among AAM, Tango Holdings, Inc., a Delaware corporation and a then wholly-owned subsidiary of AAM (“HoldCo”), Blue Merger Sub, Ltd., a Bermuda exempted company and a direct wholly-owned subsidiary of HoldCo (“AHL Merger Sub”), and Green Merger Sub, Inc., a Delaware corporation and a direct wholly-owned subsidiary of HoldCo (“AAM Merger Sub”). At the closing of the transactions, AHL Merger Sub merged with and into AHL (the “AHL Merger”), with AHL as the surviving entity in the AHL Merger and a subsidiary of HoldCo, and AAM Merger Sub merged with and into AAM (the “AAM Merger” and, together with the AHL Merger, the “Mergers”) with AAM as the surviving entity in the AAM Merger and a subsidiary of HoldCo.

In connection with the closing of the Mergers, HoldCo was renamed “Apollo Global Management, Inc.” Following the closing of the Mergers, all of the common shares of AHL and AAM are owned by AGM.

In connection with the closing of the Mergers, the Company completed a corporate recapitalization (the “Corporate Recapitalization”) which resulted in the recapitalization of AGM from an umbrella partnership C corporation (“up-C”) structure to a corporation with a single class of common stock with one vote per share.

Griffin Capital Contributions

On March 1, 2022, AGM, the parent company of AAM, completed the acquisition of Griffin Capital’s U.S. wealth distribution business. On May 3, 2022, AGM completed the acquisition of Griffin Capital’s U.S. asset management business. On the dates of each acquisition, AGM concurrently executed agreements pursuant to which AGM contributed its interests in the respective Griffin Capital businesses to subsidiaries of AAM.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the 2021 Annual Report. Certain disclosures included in the annual financial statements have been condensed or omitted as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year.

The results of the Company and its subsidiaries are presented on a consolidated basis. Any ownership interest other than the Company’s interest in its subsidiaries is reflected as a non-controlling interest. Intercompany accounts and transactions have been eliminated. Management believes it has made all necessary adjustments (consisting only of normal recurring items) so that the condensed consolidated financial statements are presented fairly and that any estimates made are reasonable and prudent. Certain reclassifications have been made to previously reported amounts to conform to the current period’s presentation.

Consolidation

When an entity is consolidated, the accounts of the consolidated entity, including its assets, liabilities, revenues, expenses and cash flows, are presented on a gross basis. Consolidation does not have an effect on the amounts of net income reported. The Company consolidates entities where it has a controlling financial interest unless there is a specific scope exception that prevents consolidation.

The types of entities with which the Company is involved generally include, but are not limited to:

•Subsidiaries, including management companies and general partners of funds that the Company manages

•Entities that have attributes of an investment company (e.g., funds)

•Special purpose acquisition companies (“SPACs”)

•Securitization vehicles (e.g., collateralized loan obligations (“CLOs”))

Each of these entities is assessed for consolidation depending on the specific facts and circumstances surrounding that entity. In determining whether to consolidate an entity, the Company first evaluates whether the entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”) and applies the appropriate consolidation model as discussed below. If an entity is not consolidated, then the Company’s investment is generally accounted for under the equity method of accounting or as a financial instrument as discussed in the related policy discussions below.

Investment Companies

Judgment is required to evaluate whether an entity has the necessary characteristics to be accounted for as an investment company. Funds we manage that meet the investment company criteria are generally not required to consolidate operating companies and generally reflect their investments in operating companies and other investment companies at fair value. The Company has retained this specialized accounting for investment companies in consolidation.

Variable Interest Entities

All entities are first considered under the VIE model. VIEs are entities that i) do not have sufficient equity at risk to finance its activities without additional subordinated financial support or ii) have equity investors that do not have the ability to make significant decisions related to the entity’s operations, absorb expected losses, or receive expected residual returns.

The Company consolidates a VIE if it is the primary beneficiary of the entity. The Company is deemed the primary beneficiary when it has a controlling financial interest in the VIE, which is defined as possessing both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance (“primary beneficiary power”) and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (“significant variable interest”). The Company performs the VIE and primary beneficiary assessment at inception of its involvement with a VIE and on an ongoing basis if facts and circumstances change.

To assess whether the Company has the primary beneficiary power under the VIE consolidation model, it considers the design of the entity as well as ongoing rights and responsibilities. In general, the parties that can make the most significant decisions regarding asset management have control over servicing, liquidation rights or the unilateral right to remove the decision-makers. To assess whether the Company has a significant variable interest, the Company considers all its economic interests that are considered variable interests in the entity including interests held through related parties. This assessment requires judgment in considering whether those interests are significant.

Assets and liabilities of the consolidated VIEs, other than SPACs, are primarily shown in separate sections within the condensed consolidated statements of financial condition. Changes in the fair value of the consolidated VIEs’ assets and liabilities and related interest, dividend and other income and expenses are primarily presented within net gains from investment activities of consolidated variable interest entities in the condensed consolidated statements of operations. The portion attributable to non-controlling interests is reported within net income attributable to non-controlling interests in the condensed consolidated statements of operations. For additional disclosures regarding VIEs, see notes 6 and 14.

Voting Interest Entities

For entities that are not determined to be VIEs, the entities are generally considered VOEs. Under the VOE model, Apollo consolidates those entities it controls through a majority voting interest. Apollo does not consolidate those VOEs in which substantive kick-out rights have been granted to the unrelated investors to either dissolve the fund or remove the general partner.

Use of Estimates

The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts in the financial statements and the related footnotes. Apollo’s most significant estimates include goodwill, intangible assets, income taxes, performance allocations, incentive fees, contingent consideration obligations related to an acquisition, non-cash compensation, and fair value of investments and debt. While such impact may change considerably over time, the estimates and assumptions affecting the Company’s condensed consolidated financial statements are based on the best available information as of September 30, 2022. Actual results could differ materially from those estimates.

Cash and Cash Equivalents

Apollo considers all highly liquid short-term investments, including money market funds and U.S. Treasury securities, with original maturities of three months or less when purchased to be cash equivalents. Restricted cash and cash equivalents are reported separately as discussed below. Interest income from cash and cash equivalents is recorded in interest income in the condensed consolidated statements of operations. The carrying values of the money market funds and U.S. Treasury securities represent their fair values due to their short-term nature. Substantially all of the Company’s cash on deposit is in interest bearing accounts with major financial institutions and exceed insured limits.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents represent balances that are restricted as to withdrawal or usage.

Restricted cash and cash equivalents of Apollo Strategic Growth Capital II (“APSG II”), a consolidated SPAC, is held in trust accounts and includes money market funds and U.S. Treasury bills with original maturities of three months or less, that were purchased with funds raised through the respective initial public offering of the consolidated entity. The $694.5 million in funds for APSG II as of September 30, 2022 is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in APSG II’s trust agreement. Refer to note 14 for further detail.

U.S. Treasury Securities, at fair value

U.S. Treasury securities, at fair value includes U.S. Treasury bills with original maturities greater than three months when purchased. These securities are recorded at fair value within investments in the condensed consolidated statements of financial condition. Interest income on such securities is separately presented from the overall change in fair value and is recognized in interest income in the condensed consolidated statements of operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net gains (losses) from investment activities in the condensed consolidated statements of operations. Securities are generally recognized on a trade date basis.

U.S. Treasury securities, at fair value of Acropolis Infrastructure Acquisition Corp. (“Acropolis”), a consolidated SPAC, is held in a trust account and consists of U.S Treasury bills that were purchased with funds raised through the initial public offering of the consolidated entity. The $347.2 million in funds as of September 30, 2022 are restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in the trust agreement.

Fair Value of Financial Instruments

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in an orderly transaction. Changes in the fair value of financial instruments are recorded and presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statement of operations.

Financial instruments are generally recorded at fair value or at carrying values that approximate fair value. The actual realized gains or losses will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may ultimately differ significantly from the assumptions on which the valuations were based.

Fair Value Option

Entities are permitted to elect the fair value option (“FVO”) to carry at fair value certain financial assets and financial liabilities. The FVO election is irrevocable and can be applied to eligible financial instruments on an individual basis at initial recognition or at eligible remeasurement events.

The Company has elected the FVO for financial instruments held by its consolidated CLOs, which includes investments in loans and corporate bonds, as well as debt obligations and contingent obligations. Certain consolidated VIEs have applied the FVO for investments in private debt securities that otherwise would not have been carried at fair value with gains and losses in net income. The Company has also elected the FVO for certain investments otherwise accounted for under the equity method of accounting. Refer to note 4 for additional information and other instances of when the Company has elected the FVO.

Fair Value Hierarchy

U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I - Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments included in Level I include listed equities and debt. The Company does not adjust the quoted price for these financial instruments, even in situations where the Company holds a large position and the sale of such position would likely deviate from the quoted price.

Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments that are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives where the fair value is based on observable inputs. These financial instruments exhibit higher levels of liquid market observability as compared to Level III financial instruments.

Level III - Pricing inputs are unobservable for the financial instrument and includes situations where there is little observable market activity for the financial instrument. The inputs into the determination of fair value may require significant management judgment or estimation. Financial instruments that are included in this category generally

include general and limited partner interests in equity and hybrid funds, distressed debt and non-investment grade residual interests in securitizations, and CDOs and CLOs where the fair value is based on observable inputs as well as unobservable inputs.

When a security is valued based on broker quotes, the Company subjects those quotes to various criteria in making the determination as to whether a particular financial instrument would qualify for classification as Level II or Level III. These criteria include, but are not limited to, the number and quality of the broker quotes, the standard deviations of the observed broker quotes, and the percentage deviation from external pricing services.

Investments in securities that are traded on a securities exchange or comparable over-the-counter quotation systems are valued based on the last reported sale price at that date. If no sales of such investments are reported on such date, and in the case of over-the-counter securities or other investments for which the last sale date is not available, valuations are based on independent market quotations obtained from market participants, recognized pricing services or other sources deemed relevant, and the prices are based on the average of the “bid” and “ask” prices, or at ascertainable prices at the close of business on such day. Market quotations are generally based on valuation pricing models or market transactions of similar securities adjusted for security-specific factors such as relative capital structure priority and interest and yield risks, among other factors. When market quotations are not available, a model based approach is used to determine fair value.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument when the fair value is based on unobservable inputs.

Equity Method Investments

For equity investments in entities where the Company exercises significant influence but does not meet the requirements for consolidation and has not elected the fair value option, the Company uses the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities adjusted for distributions. The Company’s share of the underlying net income or loss of such entities is recorded in Investment income (loss) in the condensed consolidated statements of operations.

The carrying amounts of equity method investments are recorded in investments in the condensed consolidated statements of financial condition. Generally, the underlying entities that the Company manages and invests in are primarily investment companies, and the carrying value of the Company’s equity method investments approximates fair value.

Financial Instruments held by Consolidated VIEs

Under a measurement alternative permissible for consolidated collateralized financing entities, the Company measures both the financial assets and financial liabilities of consolidated CLOs in its condensed consolidated financial statements using the fair value of the financial assets or financial liabilities, whichever are more observable.

Where financial assets are more observable, the financial assets of the consolidated CLOs are measured at fair value and the financial liabilities are measured in consolidation as: (i) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (ii) the sum of the fair value of any beneficial interests retained by the Company (other than those that represent compensation for services) and the Company’s carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interest retained by the Company) using a reasonable and consistent methodology.

Where financial liabilities are more observable, the financial liabilities of the consolidated CLOs are measured at fair value and the financial assets are measured in consolidation as: (i) the sum of the fair value of the financial liabilities, and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CLOs less (ii) the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs. The resulting amount is allocated to the individual financial assets using a reasonable and consistent methodology.

Net income attributable to Apollo Asset Management, Inc. reflects the Company’s own economic interests in the consolidated CLOs including (i) changes in the fair value of the beneficial interests retained by the Company and (ii) beneficial interests that represent compensation for collateral management services.

Deferred Revenue

Apollo records deferred revenue, which is a type of contract liability, when consideration is received in advance of management services provided.

Apollo also earns management fees subject to the Management Fee Offset (described below). When advisory and transaction fees are earned by the management company, the Management Fee Offset reduces the management fee obligation of the fund. When the Company receives cash for advisory and transaction fees, a certain percentage of such advisory and/or transaction fees, as applicable, is allocated as a credit to reduce future management fees, otherwise payable by such fund. Such credit is recorded as deferred revenue in the condensed consolidated statements of financial condition. A portion of any excess advisory and transaction fees may be required to be returned to the limited partners of certain funds upon such fund’s liquidation. As the management fees earned by the Company are presented on a gross basis, any Management Fee Offsets calculated are presented as a reduction to advisory and transaction fees in the condensed consolidated statements of operations.

Additionally, Apollo earns advisory fees pursuant to the terms of the advisory agreements with certain of the portfolio companies that are owned by the funds Apollo manages. When Apollo receives a payment from a portfolio company that exceeds the advisory fees earned at that point in time, the excess payment is recorded as deferred revenue in the condensed consolidated statements of financial condition. The advisory agreements with the portfolio companies vary in duration and the associated fees are received monthly, quarterly or annually.

Deferred revenue is reversed and recognized as revenue over the period that the agreed upon services are performed. There was $109.7 million of revenue recognized during the nine months ended September 30, 2022 that was previously deferred as of January 1, 2022.

Under the terms of the funds’ partnership agreements, Apollo is normally required to bear organizational expenses over a set dollar amount and placement fees or costs in connection with the offering and sale of interests in the funds it manages to investors. The placement fees are payable to placement agents, who are independent third parties that assist in identifying potential investors, securing commitments to invest from such potential investors, preparing or revising offering and marketing materials, developing strategies for attempting to secure investments by potential investors and/or providing feedback and insight regarding issues and concerns of potential investors, when a limited partner either commits or funds a commitment to a fund. In cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract, and amortized over the life of the customer contract. Capitalized placement fees are recorded within other assets in the condensed consolidated statements of financial condition, while amortization is recorded within placement fees in the condensed consolidated statements of operations. In certain instances, the placement fees are paid over a period of time. Based on the management agreements with the funds, Apollo considers placement fees and organizational costs paid in determining if cash has been received in excess of the management fees earned. Placement fees and organizational costs are normally the obligation of Apollo but can be paid for by the funds. When these costs are paid by the fund, the resulting obligations are included within deferred revenue. The deferred revenue balance will also be reduced during future periods when management fees are earned but not paid.

Redeemable non-controlling interests

Redeemable non-controlling interests are attributable to VIEs and primarily represent the shares issued by the Company’s consolidated SPACs that are redeemable for cash by the respective public shareholders in connection with the applicable SPAC’s failure to complete a business combination or its tender offer/stockholder approval provisions. The redeemable non-controlling interests are initially recorded at their original issue price, net of issuance costs and the initial fair value of separately traded warrants. The carrying amount is accreted to its redemption value over the period from the date of issuance to the earliest redemption date of the instrument. The accretion to redemption value is generally recorded against additional paid-in capital. Refer to note 14 for further detail.

Revenues

The Company’s revenues include (i) management fees; (ii) advisory and transaction fees, net; (iii) investment income, which is comprised of performance allocations and principal investment income; and (iv) incentive fees.

The Company is required to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services (i.e., the transaction price). When determining the transaction price, the Company may recognize variable consideration only to the

extent that it is probable to not be significantly reversed. The Company is also required to disclose the nature, amount, timing, and uncertainty of revenue that is recognized.

Performance allocations are accounted for as equity method investments. The Company recognizes performance allocations within investment income along with the related principal investment income (as further described below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition.

Refer to disclosures below for additional information on each of the Company’s revenue streams.

Management Fees

Management fees are recognized over time during the periods in which the related services are performed in accordance with the contractual terms of the related agreement. Management fees are generally based on (1) a percentage of the capital committed during the commitment period, and thereafter based on the remaining invested capital of unrealized investments, or (2) net asset value, gross assets or as otherwise defined in the respective agreements. Included in management fees are certain expense reimbursements where the Company is considered the principal under the agreements and is required to record the expense and related reimbursement revenue on a gross basis.

Advisory and Transaction Fees, Net

Advisory fees, including management consulting fees and directors’ fees, are generally recognized over time as the underlying services are provided in accordance with the contractual terms of the related agreement. The Company receives such fees in exchange for ongoing management consulting services provided to portfolio companies of funds it manages. Transaction fees, including structuring fees and arranging fees related to the Company’s funds, portfolio companies of funds and third parties are generally recognized at a point in time when the underlying services rendered are complete.

The amounts due from fund portfolio companies are recorded in due from related parties on the condensed consolidated statements of financial condition, which is discussed further in note 14. Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage of such advisory and transaction fees, net of applicable broken deal costs (“Management Fee Offset”). Advisory and transaction fees are presented net of the Management Fee Offset in the condensed consolidated statements of operations.

Underwriting fees, which are also included within advisory and transaction fees, net, include gains, losses and fees, arising from securities offerings in which one of the Company’s subsidiaries participates in the underwriter syndicate. Underwriting fees are recognized at a point in time when the underwriting is completed. Underwriting fees recognized but not received are recorded in other assets on the condensed consolidated statements of financial condition.

During the normal course of business, the Company incurs certain costs related to certain transactions that are not consummated (“broken deal costs”). These costs (e.g., research costs, due diligence costs, professional fees, legal fees and other related items) are determined to be broken deal costs upon management’s decision to no longer pursue the transaction. In accordance with the related fund agreement, in the event the deal is deemed broken, all of the costs are reimbursed by the funds and then included as a component of the calculation of the Management Fee Offset. If a deal is successfully completed, Apollo is reimbursed by the fund or fund’s portfolio company for all costs incurred and no offset is generated. As the Company acts as an agent for the funds it manages, any transaction costs incurred and paid by the Company on behalf of the respective funds relating to successful or broken deals are recorded net on the Company’s condensed consolidated statements of operations, and any receivable from the respective funds is recorded in due from related parties on the condensed consolidated statements of financial condition.

Investment Income

Investment income is comprised of performance allocations and principal investment income.

Performance Allocations

Performance allocations are a type of performance revenue (i.e., income earned based on the extent to which an entity’s performance exceeds predetermined thresholds). Performance allocations are generally structured from a legal standpoint as an allocation of capital in which the Company’s capital account receives allocations of the returns of an entity when those returns

exceed predetermined thresholds. The determination of which performance revenues are considered performance allocations is primarily based on the terms of an agreement with the entity.

The Company recognizes performance allocations within investment income along with the related principal investment income (as described further below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition.

When applicable, the Company may record a general partner obligation to return previously distributed performance allocations. The general partner obligation is based upon an assumed liquidation of a fund’s net assets as of the reporting date and is reported within due to related parties on the condensed consolidated statements of financial condition. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund.

Principal Investment Income

Principal investment income includes the Company’s income or loss from equity method investments and certain other investments in entities in which the Company is generally eligible to receive performance allocations. Income from equity method investments includes the Company’s share of net income or loss generated from its investments, which are not consolidated, but in which the Company exerts significant influence.

Incentive Fees

Incentive fees are a type of performance revenue. Incentive fees differ from performance allocations in that incentive fees do not represent an allocation of capital but rather a contractual fee arrangement with the entity.

Incentive fees are considered a form of variable consideration as they are subject to clawback or reversal and therefore must be deferred until the fees are probable to not be significantly reversed. Accrued but unpaid incentive fees are reported within incentive fees receivable in the Company’s condensed consolidated statements of financial condition. The Company’s incentive fees primarily relate to the yield investing strategy and are generally received from CLOs, managed accounts and MFIC.

Compensation and Benefits

Salaries, Bonus and Benefits

Salaries, bonus and benefits include base salaries, discretionary and non-discretionary bonuses, severance and employee benefits. Bonuses are generally accrued over the related service period.

Equity-Based Compensation

Equity-based awards granted to employees and non-employees as compensation are measured based on the grant date fair value of the award. Equity-based awards that do not require future service (i.e., vested awards) are expensed immediately. Equity-based employee awards that require future service are expensed over the relevant service period. In addition, certain restricted share units (“RSUs”) granted by AGM vest based on both continued service and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation expense. In accordance with U.S. GAAP, equity-based compensation expense for such awards, if and when granted, will be recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. The Company accounts for forfeitures of equity-based awards when they occur.

Profit Sharing

Profit sharing expense and profit sharing payable primarily consist of a portion of performance revenues earned from certain funds that are allocated to employees and former employees. Profit sharing amounts are recognized as the related performance revenues are earned. Accordingly, profit sharing amounts can be reversed during periods when there is a decline in performance revenues that were previously recognized.

Profit sharing amounts are generally not paid until the related performance revenue is distributed to the general partner upon realization of the fund’s investments. Under certain profit sharing arrangements, the Company requires that a portion of certain of the performance revenues distributed to its employees be used to purchase restricted common stock issued under AGM’s

Equity Plan. Prior to distribution of the performance revenue, the Company records the value of the equity-based awards expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. Such equity-based awards are recorded as equity-based compensation expense over the relevant service period once granted.

Additionally, profit sharing amounts previously distributed may be subject to clawback from employees and former employees. When applicable, the accrual for potential clawback of previously distributed profit sharing amounts, which is a component of due from related parties on the condensed consolidated statements of financial condition, represents all amounts previously distributed to employees and former employees that would need to be returned to the general partner if the Apollo funds were to be liquidated based on the fair value of the underlying funds’ investments as of the reporting date. The actual general partner receivable, however, would not become realized until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund.

Profit sharing payable also includes contingent consideration obligations that were recognized in connection with certain Apollo acquisitions. Changes in the fair value of the contingent consideration obligations are reflected in the Company’s condensed consolidated statements of operations as profit sharing expense.

The Company has a performance-based incentive arrangement for certain Apollo partners and employees designed to more closely align compensation on an annual basis with the overall realized performance of the Company. This arrangement enables certain partners and employees to earn discretionary compensation based on performance revenue earned by the Company in a given year, which amounts are reflected in profit sharing expense in the accompanying condensed consolidated financial statements.

401(k) Savings Plan

The Company sponsors a 401(k) savings plan (the “401(k) Plan”) whereby U.S.-based employees are entitled to participate in the 401(k) Plan based upon satisfying certain eligibility requirements. The Company matches 50% of eligible annual employee contributions up to 3% of the eligible employees’ annual compensation. Matching contributions vest after three years of service.

General, Administrative and Other

General, administrative and other primarily includes professional fees, occupancy, depreciation and amortization, travel, information technology, administration expenses and placement fees.

Income Taxes

The Company is a Delaware corporation and generally all of its income is subject to U.S. corporate income taxes. Certain entities within the legal entity structure of the Company operate as partnerships for U.S. income tax purposes and are subject to NYC UBT. Certain non-U.S. entities are also subject to non-U.S. corporate income taxes. The Company is included in the U.S. federal consolidated and certain state combined income tax returns with AGM and its other subsidiaries. For purposes of these separate company consolidated financial statements, the Company’s taxes were determined using the separate return method as if the Company had filed tax returns separate from AGM. As a result, the tax effects of certain activity and the tax treatment of certain transactions included in the condensed consolidated financial statements of AGM may not be the same in the Company’s separate company consolidated financial statements.

Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties. The Company’s tax positions are reviewed and evaluated quarterly to determine whether the Company has uncertain tax positions that require financial statement recognition. The Company recognizes the tax benefit of uncertain tax positions only where the position is “more likely than not” to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If a tax position was not considered more likely than not to be sustained, then no benefits of the position would be recognized.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial statement carrying amount of assets and liabilities and their respective tax bases using currently enacted tax rates in the period the temporary difference is expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period during which the change is enacted. Deferred tax assets are reduced by a valuation

allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In determining the realizability of deferred tax assets, the Company evaluates all positive and negative evidence in addition to the ability to carry back losses, the timing of future reversals of taxable temporary differences, tax planning strategies and future expected earnings.

Non-Controlling Interests

For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the condensed consolidated financial statements. Prior to the Corporate Recapitalization, the non-controlling interests relating to AGM included the ownership interest in the Apollo Operating Group held by Former Managing Partners and Contributing Partners through their limited partner interests in Holdings. Additionally, Athene held non-controlling interests in the Apollo Operating Group. Subsequent to the closing of the Mergers, Athene’s interest in the Apollo Operating Group was distributed to AGM. Non-controlling interests also include ownership interests in certain consolidated funds and VIEs.

Non-controlling interests are presented as a separate component of stockholders’ equity on the Company’s condensed consolidated statements of financial condition. The primary components of Non-controlling interests are separately presented in the Company’s condensed consolidated statements of changes in stockholders’ equity to clearly distinguish the interest in the Apollo Operating Group and other ownership interests in the consolidated entities. Net income includes the net income attributable to the holders of Non-controlling interests on the Company’s condensed consolidated statements of operations. Profits and losses are allocated to Non-controlling interests in proportion to their relative ownership interests regardless of their basis.

Guarantees

See note 15 to the condensed consolidated financial statements for information related to the Company’s material guarantees.

Recent Accounting Pronouncements

Fair Value Measurement — Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03)

In June 2022, the FASB issued clarifying guidance that a restriction which is a characteristic of the holding entity rather than a characteristic of the equity security itself should not be considered in its fair value measurement. As a result, the Company is required to measure the fair value of equity securities subject to contractual restrictions attributable to the holding entity on the basis of the market price of the same equity security without those contractual restrictions. Companies are not permitted to recognize a contractual sale restriction attributable to the holding entity as a separate unit of account. The guidance also requires disclosures for these equity securities.

The new guidance is mandatorily effective for the Company by January 1, 2024 with early adoption permitted. When adopted, the Company will apply the guidance on a prospective basis as an adjustment to current-period earnings with the adoption impact disclosed in the period of adoption.

The Company is currently evaluating the new guidance and its impact on the consolidated financial statements.

Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08)

In October 2021, the FASB issued guidance to add contract assets and contract liabilities from contracts with customers acquired in a business combination to the list of exceptions to the fair value recognition and measurement principles that apply to business combinations, and instead require them to be accounted for in accordance with revenue recognition guidance. The new guidance is mandatorily effective for the Company on January 1, 2023 and applied prospectively, with early adoption permitted. All entities except those that qualify as an investment company under Topic 946 are required to apply the amendments prospectively with any adjustments from adoption recorded in current period earnings and amounts disclosed.

The Company is currently evaluating the guidance and its impact on the consolidated financial statements.

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GOODWILL

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

In connection with the completion of the Mergers, the Company undertook a strategic review of its operating structure and business segments to assess the performance of its businesses and the allocation of resources. As a result, the Company reorganized into two reportable segments, asset management and principal investing. The Company conducted interim impairment testing immediately prior and subsequent to the reorganization and determined there to be no impairment of historical goodwill.

The following table presents Apollo’s goodwill by segment: 

	As of September 30, 2022		As of December 31, 2021
Asset Management	$	231,562	$	84,776
Principal Investing	32,182		32,182
Total Goodwill	$	263,744	$	116,958

The Company’s parent, AGM, acquired Griffin Capital’s U.S. wealth distribution business and U.S. asset management business in two separate closings on March 1, 2022 and May 3, 2022 and recorded goodwill of $13.1 million and $133.6 million, respectively, on each acquisition date. AGM concurrently executed agreements on each acquisition date to contribute its interests in the Griffin Capital businesses to subsidiaries of AAM and applied pushdown accounting, including for the recognition of these goodwill amounts. As a result, AAM reflects the goodwill amounts within the Asset Management segment in the condensed consolidated statements of financial condition.

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INVESTMENTS

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS

INVESTMENTS

The following table presents Apollo’s investments: 

	As of September 30, 2022		As of December 31, 2021
Investments, at fair value	$	1,131,409	$	5,588,992
Equity method investments	1,085,035		1,345,750
Performance allocations	2,502,446		2,731,733
U.S. Treasury Securities, at fair value	1,372,048		1,687,105
Total Investments	$	6,090,938	$	11,353,580

Investments, at Fair Value

Investments, at fair value, consist of investments for which the fair value option has been elected and primarily include the Company’s investment in Athora, investments in debt of unconsolidated CLOs and, as of December 31, 2021, included the Company’s investment in Athene Holding. Changes in the fair value related to these investments are presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statements of operations.

Prior to the Mergers, the Company’s equity investment in Athene Holding, for which the fair value option was elected, met the significance criteria as defined by the SEC as of September 30, 2021.

During the first quarter of 2022, the Company’s investment in Athene Holding was distributed to AGM. As such, the following tables present summarized financial information of Athene Holding:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Statements of Operations
Revenues	$	—	$	8,724	$	(269)	$	19,538
Benefits and expenses	—		8,004		2,504		16,689
Income (loss) before income taxes	—		720		(2,773)		2,849
Income tax expense (benefit)	—		(50)		(407)		196
Net income (loss)	—		770		(2,366)		2,653
Less: Net income (loss) attributable to non-controlling interests	—		37		(883)		(111)
Net income (loss) available to Athene Holding Ltd. shareholders	$	—	$	733	$	(1,483)	$	2,764
Less: Preferred stock dividends	—		35		35		106
Net income (loss) available to Athene Holding Ltd. common shareholders	$	—	$	698	$	(1,518)	$	2,658

Net Gains (Losses) from Investment Activities

The following table presents the realized and net change in unrealized gains reported in net gains (losses) from investment activities: 

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Realized gains (losses) on sales of investments, net	$	(984)	$	(197)	$	206,547	$	996
Net change in unrealized gains due to changes in fair value	(15,164)		172,995		694,621		1,438,347
Net gains (losses) from investment activities	$	(16,148)	$	172,798	$	901,168	$	1,439,343

Performance Allocations

Performance allocations receivable is recorded within investments in the condensed consolidated statements of financial condition. The table below provides a roll forward of the performance allocations balance:

	Total
Performance allocations, January 1, 2022	$	2,731,733
Change in fair value of funds	314,800
Fund distributions to the Company	(544,087)
Performance allocations, September 30, 2022	$	2,502,446

The change in fair value of funds excludes the general partner obligation to return previously distributed performance allocations, which is recorded in due to related parties in the condensed consolidated statements of financial condition. See note 14 for further disclosure regarding the general partner obligation.

The timing of the payment of performance allocations due to the general partner or investment manager varies depending on the terms of the applicable fund agreements. Performance allocations with respect to certain funds are payable and are distributed to the fund’s general partner upon realization of an investment if the fund’s cumulative returns are in excess of the preferred return.

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PROFIT SHARING PAYABLE

9 Months Ended

Sep. 30, 2022

Profit Sharing Payable [Abstract]

PROFIT SHARING PAYABLE

PROFIT SHARING PAYABLE

Profit sharing payable was $1.5 billion and $1.4 billion as of September 30, 2022 and December 31, 2021, respectively. The table below provides a roll forward of the profit sharing payable balance:

	Total
Profit sharing payable, January 1, 2022	$	1,444,652
Profit sharing expense	366,812
Payments/other	(313,684)
Profit sharing payable, September 30, 2022	$	1,497,780

Profit sharing expense includes (i) changes in amounts payable to employees and former employees entitled to a share of performance revenues in funds managed by Apollo and (ii) changes to the fair value of the contingent consideration obligations recognized in connection with certain Apollo acquisitions. Profit sharing expense excludes the potential return of profit sharing distributions that would be due if certain funds were liquidated, which is recorded in due from related parties in the condensed consolidated statements of financial condition. See note 14 for further disclosure regarding the potential return of profit sharing distributions.

As discussed in note 2, under certain profit sharing arrangements, the Company requires that a portion of certain of the performance revenues distributed to its employees be used to purchase restricted shares of AGM’s common stock issued under AGM’s Equity Plan. Prior to distribution of the performance revenues, the Company records the value of the equity-based awards expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. See note 8 for further disclosure regarding deferred equity-based compensation.

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VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

A variable interest in a VIE is an investment or other interest that will absorb portions of the VIE’s expected losses and/or receive expected residual returns. Refer to note 2 for more detail about the Company’s VIE assessment and consolidation policy. Variable interests in consolidated VIEs and unconsolidated VIEs are discussed separately below.

Consolidated Variable Interest Entities

Consolidated VIEs include consolidated SPACs as well as certain CLOs and funds managed by the Company. The financial information for these consolidated SPACs are disclosed in note 14.

The assets of consolidated VIEs are not available to creditors of the Company, and the investors in these consolidated VIEs have no recourse against the assets of the Company. Similarly, there is no recourse to the Company for the consolidated VIEs’ liabilities.

Other assets include interest receivables, receivables from affiliates and due from brokers. Other liabilities include payables for securities purchased, which represent open trades within the consolidated CLOs and primarily relate to corporate loans that are expected to settle within 60 days, debt held at amortized cost and short-term payables.

Included within liabilities of the consolidated VIEs are notes payable related to certain funds managed by the Company. Each series of notes in a respective consolidated VIE participates in distributions from the VIE, including principal and interest from underlying investments. Amounts allocated to the noteholders reflect amounts that would be distributed if the VIE’s assets were liquidated for cash equal to their respective carrying values, its liabilities satisfied in accordance with their terms, and all the remaining amounts distributed to the noteholders. The respective VIEs that issue the notes payable are marked at their prevailing net asset value, which approximates fair value.

Results from certain funds managed by the Company are reported on a three month lag based upon the availability of financial information.

Net Gains from Investment Activities of Consolidated Variable Interest Entities

The following table presents net gains from investment activities of the consolidated VIEs:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022		(1)	2021		(1)	2022		(1)	2021		(1)
Net gains from investment activities	$	7,740		$	104,885		$	105,091		$	460,459
Net gains (losses) from debt	—			(4,210)			10,138			(15,737)
Interest and other income	13,971			162,815			218,596			525,573
Interest and other expenses	(10,324)			(121,035)			(6,366)			(569,843)
Net gains from investment activities of consolidated variable interest entities	$	11,387		$	142,455		$	327,459		$	400,452
(1) Amounts reflect consolidation eliminations.

Senior Secured Notes, Subordinated Notes, Subscription Lines and Secured Borrowings

Included within debt, at fair value, notes payable, and other liabilities are amounts due to third-party institutions by the consolidated VIEs. The following table summarizes the principal provisions of those amounts.

	As of September 30, 2022					As of December 31, 2021
	Principal Outstanding		Weighted Average Interest Rate		Weighted Average Remaining Maturity in Years	Principal Outstanding		Weighted Average Interest Rate			Weighted Average Remaining Maturity in Years
Senior Secured Notes(2)	$	—	N/A		N/A	$	7,431,467	3.16	%		15.5
Subordinated Notes(2)	—		N/A		N/A	613,192		N/A		(1)	14.5
Subscription Lines(2)	651,491		4.87	%	0.14	—		N/A			N/A
Secured Borrowings(2)(3)	—		N/A		N/A	18,149		2.33	%		0.4
Total	$	651,491				$	8,062,808
(1) The principal outstanding balance of the subordinated notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the VIEs.
(2) The notes, subscription lines and borrowings of the consolidated VIEs are collateralized by assets held by each respective vehicle and assets of one vehicle may not be used to satisfy the liabilities of another vehicle.
(3) As of December 31, 2021, secured borrowings consist of consolidated VIEs’ obligations through a repurchase agreement redeemable at maturity with third party lenders. The fair value of the secured borrowings as of December 31, 2021 approximates principal outstanding due to the short term nature of the borrowings. These secured borrowings are classified as a Level III liability within the fair value hierarchy.

Unconsolidated Variable Interest Entities

The Company holds variable interests in certain VIEs which are not consolidated, as it has been determined that Apollo is not the primary beneficiary. The following table presents the maximum exposure to losses relating to these VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary.

	As of September 30, 2022		(2)	As of December 31, 2021		(2)
Apollo Exposure(1)	$	287,976		$	240,871
(1) Represents Apollo’s direct investment in those entities in which Apollo holds a significant variable interest and certain other investments. Additionally, cumulative performance allocations are subject to reversal in the event of future losses, as discussed in note 15.
(2) Some amounts included are a quarter in arrears.

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FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level:

	As of September 30, 2022
	Level I		Level II		Level III			NAV		Total
Assets
Cash and cash equivalents(1)	$	1,118,305	$	—	$	—		$	—	$	1,118,305
Restricted cash and cash equivalents(2)	696,712		—		—			—		696,712
Cash and cash equivalents of VIEs	84,132		—		—			—		84,132
U.S. Treasury securities(3)	1,372,048		—		—			—		1,372,048
Investments, at fair value	147,061		35,615		939,742		(4)	8,991		1,131,409
Investments of VIEs, at fair value	17,185		1,412		935,396			62,826		1,016,819
Due from related parties(5)	—		—		41,911			—		41,911
Derivative assets(6)	—		40,806		7,891			—		48,697
Total Assets	$	3,435,443	$	77,833	$	1,924,940		$	71,817	$	5,510,033
Liabilities
Other liabilities of VIEs, at fair value	—		2,032		—			—		2,032
Contingent consideration obligations(7)	—		—		103,002			—		103,002
Other liabilities(8)	1,518		—		—			—		1,518
Total Liabilities	$	1,518	$	2,032	$	103,002		$	—	$	106,552

	As of December 31, 2021
	Level I		Level II		Level III			NAV		Total
Assets
Cash and cash equivalents(1)	$	917,183	$	—	$	—		$	—	$	917,183
Restricted cash and cash equivalents(2)	707,885		—		—			—		707,885
Cash and cash equivalents of VIEs	463,266		—		—			—		463,266
U.S. Treasury securities(3)	1,687,105		—		—			—		1,687,105
Investments
Investment in Athene Holding	4,548,048		—		—			—		4,548,048
Other investments	48,493		46,267		946,184		(4)	—		1,040,944
Total investments	4,596,541		46,267		946,184			—		5,588,992
Investments of VIEs, at fair value	6,232		1,055,421		13,187,803			487,595		14,737,051
Due from related parties(5)	—		—		47,835			—		47,835
Derivative assets(6)	—		7,436		—			—		7,436
Total Assets	$	8,378,212	$	1,109,124	$	14,181,822		$	487,595	$	24,156,753
Liabilities
Debt of VIEs, at fair value	$	—	$	446,029	$	7,496,479		$	—	$	7,942,508
Other liabilities of VIEs, at fair value	—		3,111		31,090			557		34,758
Contingent consideration obligations(7)	—		—		125,901			—		125,901
Other liabilities(8)	47,961		—		—			—		47,961
Derivative liabilities(6)	—		1,520		—			—		1,520
Total Liabilities	$	47,961	$	450,660	$	7,653,470		$	557	$	8,152,648
(1) Cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $0.6 million and $1.8 million, respectively, of cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information.
(2) Restricted cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $694.6 million and $690.2 million, respectively, of restricted cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information.
(3) U.S. Treasury securities as of September 30, 2022 and December 31, 2021 includes $347.2 million and $1.2 billion, respectively, of U.S. Treasury securities held by consolidated SPACs. Refer to note 14 for further information.
(4) Investments as of September 30, 2022 and December 31, 2021 excludes $178.1 million and $175.8 million, respectively, of performance allocations classified as Level III related to certain investments for which the Company has elected the fair value option. The Company’s policy is to account for performance allocations as investments.
(5) Due from related parties represents a receivable from a fund.
(6) Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the condensed consolidated statements of financial condition.
(7) Profit sharing payable includes contingent obligations classified as Level III.
(8) Other liabilities as of September 30, 2022 includes the publicly traded warrants of APSG II. Other liabilities as of December 31, 2021 includes the publicly traded warrants of APSG I and APSG II.

The following tables summarize the changes in fair value in financial assets measured at fair value for which Level III inputs have been used to determine fair value:

	For the Three Months Ended September 30, 2022
	Investments and Derivative Assets		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	1,079,778	$	843,266	$	1,923,044
Purchases	10,115		973,126		983,241
Sales of investments/distributions	(116,986)		(863,413)		(980,399)
Net realized gains (losses)	51,653		(1,296)		50,357
Changes in net unrealized gains (losses)	(35,848)		(16,287)		(52,135)
Cumulative translation adjustment	(41,079)		—		(41,079)
Balance, End of Period	$	947,633	$	935,396	$	1,883,029
Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date	$	11,894	$	—	$	11,894
Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		(2,169)		(2,169)

	For the Three Months Ended September 30, 2021
	Other Investments		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	389,787	$	11,877,952	$	12,267,739
Transfer out due to deconsolidation	—		(924)		(924)
Purchases	204,587		284,605		489,192
Sale of investments/distributions	—		(344,659)		(344,659)
Net realized gains (losses)	16,488		16,616		33,104
Changes in net unrealized gains (losses)	19,766		79,212		98,978
Cumulative translation adjustment	(1,873)		(10,166)		(12,039)
Transfer into Level III(1)	—		31,444		31,444
Transfer out of Level III(1)	(2,422)		(194,955)		(197,377)
Balance, End of Period	$	626,333	$	11,739,125	$	12,365,458
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	19,766	$	—	$	19,766
Change in net unrealized gains included in net gains (losses) from investment activities of consolidated VIEs related to investments still held at reporting date	—		79,514		79,514
(1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from external pricing services.

	For the Nine Months Ended September 30, 2022
	Investments and Derivative Assets		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	946,184	$	13,187,803	$	14,133,987
Net transfer in (out) due to consolidation (deconsolidation)	21,710		(14,190,236)		(14,168,526)
Purchases	115,817		4,444,308		4,560,125
Sale of investments/distributions	(121,118)		(2,702,495)		(2,823,613)
Net realized gains (losses)	48,687		19,861		68,548
Changes in net unrealized gains (losses)	23,240		160,094		183,334
Cumulative translation adjustment	(87,891)		(10,808)		(98,699)
Transfer into Level III(1)	1,004		29,803		30,807
Transfer out of Level III(1)	—		(2,934)		(2,934)
Balance, End of Period	$	947,633	$	935,396	$	1,883,029
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	72,254	$	—	$	72,254
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		6,613		6,613

	For the Nine Months Ended September 30, 2021
	Other Investments		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	369,772	$	10,962,980	$	11,332,752
Transfer out due to consolidation	—		(230,641)		(230,641)
Purchases	204,587		1,967,028		2,171,615
Sale of investments/distributions	(3,235)		(1,150,592)		(1,153,827)
Net realized gains (losses)	17,556		29,591		47,147
Changes in net unrealized gains (losses)	48,882		411,359		460,241
Cumulative translation adjustment	(9,513)		(24,414)		(33,927)
Transfer into Level III(1)	706		41,329		42,035
Transfer out of Level III(1)	(2,422)		(267,515)		(269,937)
Balance, End of Period	$	626,333	$	11,739,125	$	12,365,458
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	48,882	$	—	$	48,882
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		278,471		278,471
(1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from external pricing services.

The following tables summarize the changes in fair value in financial liabilities measured at fair value for which Level III inputs have been used to determine fair value:

	For the Three Months Ended September 30, 2022
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	104,202	$	—	$	104,202
Changes in net unrealized (gains) losses(1)	(1,200)		—		(1,200)
Balance, End of Period	$	103,002	$	—	$	103,002

	For the Three Months Ended September 30, 2021
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	128,984	$	7,206,174	$	7,335,158
Issuances	—		15,980		15,980
Repayments	(7,495)		(29,510)		(37,005)
Net realized (gains) losses	—		(1,681)		(1,681)
Changes in net unrealized (gains) losses(1)	(1,902)		13,859		11,957
Cumulative translation adjustment	—		(10,293)		(10,293)
Transfers into Level III (2)	—		256		256
Balance, End of Period	$	119,587	$	7,194,785	$	7,314,372
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date	$	—	$	4,672	$	4,672

	For the Nine Months Ended September 30, 2022
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	125,901	$	7,527,569	$	7,653,470
Transfer out due to deconsolidation	—		(8,626,153)		(8,626,153)
Issuances	—		1,645,025		1,645,025
Payments	(13,259)		(518,773)		(532,032)
Net realized (gains) losses	—		(480)		(480)
Changes in net unrealized (gains) losses(1)	(9,640)		(16,368)		(26,008)
Cumulative translation adjustment	—		(10,820)		(10,820)
Balance, End of Period	$	103,002	$	—	$	103,002

	For the Nine Months Ended September 30, 2021
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	119,788	$	7,100,620	$	7,220,408
Issuances	—		327,388		327,388
Payments	(20,609)		(301,414)		(322,023)
Net realized (gains) losses	—		9,049		9,049
Changes in net unrealized (gains) losses(1)	20,408		83,005		103,413
Cumulative translation adjustment	—		(24,316)		(24,316)
Transfers into Level III (2)	—		453		453
Balance, End of Period	$	119,587	$	7,194,785	$	7,314,372
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date	$	—	$	93,743	$	93,743
(1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations.
(2) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services.

The following tables summarize the quantitative inputs and assumptions used for financial assets and liabilities categorized as Level III under the fair value hierarchy:

	As of September 30, 2022
	Fair Value		Valuation Techniques	Unobservable Inputs	Ranges	Weighted Average (1)
Financial Assets
Investments	$	512,207	Embedded value	N/A	N/A	N/A
	121,666		Discounted cash flow	Discount rate	8.9% - 52.8%	29.4%
	305,869		Adjusted transaction value	N/A	N/A	N/A
Due from related parties	41,911		Discounted cash flow	Discount rate	15.0%	15.0%
Derivative assets	7,891		Option model	Volatility rate	38.8% - 40.0%	39.7%
Investments of consolidated VIEs:
Bank loans	491,893		Adjusted transaction value	N/A	N/A	N/A
			Discounted cash flow	Discount rate	7.1% - 32.7%	7.6%
Equity securities	411,320		Dividend discount model	Discount rate	13.9%	13.9%
Bonds	32,035		Discounted cash flow	Discount rate	7.9%	7.9%
			Adjusted transaction value	N/A	N/A	N/A
Warrants	148		Discounted cash flow	Discount rate	15.4%	15.4%
Total Financial Assets	$	1,924,940
Financial Liabilities
Contingent Consideration Obligation	103,002		Discounted cash flow	Discount rate	19.0%	19.0%
Total Financial Liabilities	$	103,002

	As of December 31, 2021
	Fair Value		Valuation Techniques	Unobservable Inputs	Ranges	Weighted Average (1)
Financial Assets
Other investments	$	516,221	Embedded value	N/A	N/A	N/A
	169,625		Discounted cash flow	Discount rate	14.0% - 52.8%	26.4%
	260,338		Adjusted transaction value	N/A	N/A	N/A
Due from related parties	47,835		Discounted cash flow	Discount rate	16.0%	16.0%
Investments of consolidated VIEs:
Equity securities	4,144,661		Discounted cash flow	Discount rate	3.0% - 19.0%	10.4%
			Dividend discount model	Discount rate	13.7%	13.7%
			Market comparable companies	NTAV multiple	1.25x	1.25x
			Adjusted transaction value	Purchase multiple	1.25x	1.25x
			Adjusted transaction value	N/A	N/A	N/A
Bank loans	4,569,873		Discounted cash flow	Discount rate	1.8% - 15.6%	4.3%
			Adjusted transaction value	N/A	N/A	N/A
Profit participating notes	2,849,150		Discounted cash flow	Discount rate	8.7% - 12.5%	12.4%
			Adjusted transaction value	N/A	N/A	N/A
Real estate	511,648		Discounted cash flow	Capitalization rate	4.0% - 5.8%	5.3%
			Discounted cash flow	Discount rate	5.0% - 12.5%	7.3%
			Discounted cash flow	Terminal capitalization rate	8.3%	8.3%
			Direct capitalization	Capitalization rate	5.5% - 8.5%	6.2%
			Direct capitalization	Terminal capitalization rate	6.0% - 12.0%	6.9%
Bonds	50,885		Discounted cash flow	Discount rate	4.0% - 7.0%	6.1%
			Third party pricing	N/A	N/A	N/A
Other equity investments	1,061,586		Discounted cash flow	Discount rate	11.8% -12.5%	12.1%
			Adjusted transaction value	N/A	N/A	N/A
Total Investments of Consolidated VIEs	13,187,803
Total Financial Assets	$	14,181,822
Financial Liabilities
Liabilities of Consolidated VIEs:
Secured loans	$	4,311,348	Discounted cash flow	Discount rate	1.4% - 10.0%	2.8%
Subordinated notes	3,164,491		Discounted cash flow	Discount rate	4.5% - 11.9%	5.8%
Participating equity	20,640		Discounted cash flow	Discount rate	15.0%	15.0%
Other liabilities	31,090		Discounted cash flow	Discount rate	3.7% - 9.3%	6.3%
Total Liabilities of Consolidated VIEs	7,527,569
Contingent Consideration Obligation	125,901		Discounted cash flow	Discount rate	18.5%	18.5%
Total Financial Liabilities	$	7,653,470

N/A        Not applicable

EBITDA        Earnings before interest, taxes, depreciation, and amortization

NTAV        Net tangible asset value

(1)      Unobservable inputs were weighted based on the fair value of the investments included in the range.

Fair Value Measurement of Investment in Athene Holding

At December 31, 2021, the fair value of Apollo’s Level I investment in Athene Holding was estimated using the closing market price of Athene Holding shares of $83.33. Following the Mergers, AAM no longer holds an interest in AHL as further described in note 14.

Discounted Cash Flow Model

When a discounted cash flow model is used to determine fair value, the significant input used in the valuation model is the discount rate applied to present value the projected cash flows. Increases in the discount rate can significantly lower the fair value of an investment and the contingent consideration obligations; conversely decreases in the discount rate can significantly increase the fair value of an investment and the contingent consideration obligations.

Consolidated VIEs’ Investments

The significant unobservable inputs used in the fair value measurement of the equity securities include the discount rate applied, purchase multiple and net tangible asset value in the valuation models. These unobservable inputs in isolation can cause significant increases or decreases in fair value. The discount rate is determined based on the market rates an investor would expect for a similar investment with similar risks.

The significant unobservable inputs used in the fair value measurement of bank loans, bonds, profit participating notes, warrants and other equity investments are discount rates. Significant increases (decreases) in discount rates would result in significantly lower (higher) fair value measurements.

The significant unobservable inputs used in the fair value measurement of real estate are discount rates and capitalization rates. Significant increases (decreases) in any discount rates or capitalization rates in isolation would result in significantly lower (higher) fair value measurements.

Certain investments of VIEs are valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determine an independent fair value.

Consolidated VIEs’ Liabilities

The debt obligations of certain consolidated VIEs, that are CLOs, were measured on the basis of the fair value of the financial assets of those CLOs as the financial assets were determined to be more observable and, as a result, categorized as Level II in the fair value hierarchy.

The significant unobservable inputs used in the fair value measurement of the Company’s liabilities of consolidated VIEs are discount rates. Significant increases (decreases) in discount rates would result in a significantly lower (higher) fair value measurement.

Certain liabilities of VIEs are valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determine an independent fair value.

Contingent Consideration Obligations

The significant unobservable input used in the fair value measurement of the contingent consideration obligations is the discount rate applied in the valuation models. This input in isolation can cause significant increases or decreases in fair value. The discount rate was based on the hypothetical cost of equity in connection with the acquisition of Stone Tower. See note 15 for further discussion of the contingent consideration obligations.

Valuation of Underlying Investments

As discussed previously, the underlying entities that the Company manages and invests in are primarily investment companies which account for their investments at estimated fair value.

On a quarterly basis, Apollo utilizes valuation committees consisting of members from senior management, to review and approve the valuation results related to the investments of the funds it manages. For certain publicly traded vehicles managed by the Company, a review is performed by an independent board of directors. The Company also retains external valuation firms to provide third-party valuation consulting services to Apollo, which consist of certain limited procedures that management identifies and requests them to perform. The limited procedures provided by the external valuation firms assist management with validating their valuation results or determining fair value. The Company performs various back-testing procedures to validate their valuation approaches, including comparisons between expected and observed outcomes, forecast evaluations and variance analyses. However, because of the inherent uncertainty of valuation, those estimated values may differ

significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.

Yield Investments

Yield investments are generally valued based on third party vendor prices and/or quoted market prices and valuation models. Valuations using quoted market prices are based on the average of the “bid” and the “ask” quotes provided by multiple brokers wherever possible without any adjustments. Apollo will designate certain brokers to use to value specific securities. In determining the designated brokers, Apollo considers the following: (i) brokers with which Apollo has previously transacted, (ii) the underwriter of the security and (iii) active brokers indicating executable quotes. In addition, when valuing a security based on broker quotes wherever possible Apollo tests the standard deviation amongst the quotes received and the variance between the concluded fair value and the value provided by a pricing service. When broker quotes are not available Apollo considers the use of pricing service quotes or other sources to mark a position. When relying on a pricing service as a primary source, Apollo (i) analyzes how the price has moved over the measurement period, (ii) reviews the number of brokers included in the pricing service’s population, if available, and (iii) validates the valuation levels with Apollo’s pricing team and traders.

Debt securities that are not publicly traded or whose market prices are not readily available are valued at fair value utilizing a model based approach to determine fair value. Valuation approaches used to estimate the fair value of illiquid credit investments also may include the income approach, as described below. The valuation approaches used consider, as applicable, market risks, credit risks, counterparty risks and foreign currency risks.

Equity and Hybrid Investments

The majority of illiquid equity and hybrid investments are valued using the market approach and/or the income approach, as described below.

Market Approach

The market approach is driven by current market conditions, including actual trading levels of similar companies and, to the extent available, actual transaction data of similar companies. Judgment is required by management when assessing which companies are similar to the subject company being valued. Consideration may also be given to any of the following factors: (1) the subject company’s historical and projected financial data; (2) valuations given to comparable companies; (3) the size and scope of the subject company’s operations; (4) the subject company’s individual strengths and weaknesses; (5) expectations relating to the market’s receptivity to an offering of the subject company’s securities; (6) applicable restrictions on transfer; (7) industry and market information; (8) general economic and market conditions; and (9) other factors deemed relevant. Market approach valuation models typically employ a multiple that is based on one or more of the factors described above.

Enterprise value as a multiple of EBITDA is common and relevant for most companies and industries, however, other industry specific multiples are employed where available and appropriate. Sources for gaining additional knowledge related to comparable companies include public filings, annual reports, analyst research reports and press releases. Once a comparable company set is determined, Apollo reviews certain aspects of the subject company’s performance and determines how its performance compares to the group and to certain individuals in the group. Apollo compares certain measurements such as EBITDA margins, revenue growth over certain time periods, leverage ratios and growth opportunities. In addition, Apollo compares the entry multiple and its relation to the comparable set at the time of acquisition to understand its relation to the comparable set on each measurement date.

Income Approach

The income approach provides an indication of fair value based on the present value of cash flows that a business or security is expected to generate in the future. The most widely used methodology for the income approach is a discounted cash flow method. Inherent in the discounted cash flow method are significant assumptions related to the subject company’s expected results, the determination of a terminal value and a calculated discount rate, which is normally based on the subject company’s weighted average cost of capital, or “WACC.” The WACC represents the required rate of return on total capitalization, which is comprised of a required rate of return on equity, plus the current tax-effected rate of return on debt, weighted by the relative percentages of equity and debt that are typical in the industry. The most critical step in determining the appropriate WACC for each subject company is to select companies that are comparable in nature to the subject company and the credit quality of the subject company. Sources for gaining additional knowledge about the comparable companies include public filings, annual reports, analyst research reports and press releases. The general formula then used for calculating the WACC considers the

after-tax rate of return on debt capital and the rate of return on common equity capital, which further considers the risk-free rate of return, market beta, market risk premium and small stock premium, if applicable. The variables used in the WACC formula are inferred from the comparable market data obtained. The Company evaluates the comparable companies selected and concludes on WACC inputs based on the most comparable company or analyzes the range of data for the investment.

The value of liquid investments, where the primary market is an exchange (whether foreign or domestic), is determined using period end market prices. Such prices are generally based on the close price on the date of determination.

Certain of the funds Apollo manages may also enter into foreign currency exchange contracts, total return swap contracts, credit default swap contracts, and other derivative contracts, which may include options, caps, collars and floors. Foreign currency exchange contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. If securities are held at the end of the period, the changes in value are recorded in income as unrealized. Realized gains or losses are recognized when contracts are settled. Total return swap and credit default swap contracts are recorded at fair value as an asset or liability with changes in fair value recorded as unrealized appreciation or depreciation. Realized gains or losses are recognized at the termination of the contract based on the difference between the close-out price of the total return or credit default swap contract and the original contract price. Forward contracts are valued based on market rates obtained from counterparties or prices obtained from recognized financial data service providers.

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OTHER ASSETS

9 Months Ended

Sep. 30, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

OTHER ASSETS

OTHER ASSETS

Other assets consisted of the following:

	As of September 30, 2022		As of December 31, 2021
Fixed assets	$	403,095	$	256,252
Less: Accumulated depreciation and amortization	(148,699)		(130,072)
Fixed assets, net	254,396		126,180
Deferred equity-based compensation(1)	240,759		282,900
Intangible assets, net(2)	185,146		14,846
Commitment asset(3)	154,563		—
Prepaid expenses	60,486		57,765
Tax receivables	55,040		30,334
Other	134,031		73,876
Total Other Assets	$	1,084,421	$	585,901
(1) Deferred equity-based compensation relates to the value of equity-based awards that have been or are expected to be granted in connection with the settlement of certain profit sharing arrangements. A corresponding amount for awards expected to be granted of $181.1 million and $210.6 million, as of September 30, 2022 and December 31, 2021, respectively, is included in other liabilities on the condensed consolidated statements of financial condition.
(2) Includes intangible assets from the acquisition of Griffin Capital's U.S. asset management business.
(3) Represents a commitment from an institutional investor as part of a strategic transaction.

Depreciation expense was $8.3 million and $4.8 million for the three months ended September 30, 2022 and 2021, respectively, and $22.2 million and $13.1 million for the nine months ended September 30, 2022 and 2021, respectively, and is presented as a component of general, administrative and other expense in the condensed consolidated statements of operations.

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LEASES

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

LEASES

Apollo has operating leases for office space, data centers, and certain equipment under various lease agreements.

The table below presents operating lease expenses recorded in general, administrative and other in the condensed consolidated statements of operations.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease cost	$	18,002	$	10,916	$	51,283	$	33,930

The following table presents supplemental cash flow information related to operating leases:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Operating cash flows for operating leases	$	14,285	$	10,971	$	32,851	$	23,465

As of September 30, 2022, the Company’s total lease payments by maturity are presented in the following table:

	Operating Lease Payments
Remaining 2022	$	15,523
2023	67,832
2024	67,981
2025	67,244
2026	62,739
Thereafter	511,882
Total lease payments	$	793,201
Less imputed interest	(124,120)
Present value of lease payments	$	669,081

The Company has undiscounted future operating lease payments of $127.3 million related to leases that have not commenced that were entered into as of September 30, 2022. Such lease payments are not yet included in the table above or the Company’s condensed consolidated statements of financial condition as lease assets and lease liabilities. These operating leases are anticipated to commence in 2023 or later with lease terms of approximately 12 to 14 years.

Supplemental information related to leases is as follows:

	As of September 30, 2022		As of September 30, 2021
Weighted average remaining lease term (in years)	12.5		13.3
Weighted average discount rate	2.7	%	2.9	%

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INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXESThe Company’s income tax provision totaled $22.1 million and $101.4 million for the three months ended September 30, 2022, and 2021, respectively, and $163.9 million and $498.7 million for the nine months ended September 30, 2022 and 2021, respectively. The Company’s effective tax rate was 20.5% and 13.8% for the three months ended September 30, 2022 and 2021, respectively, and 9.6% and 12.0% for the nine months ended September 30, 2022 and 2021, respectively.

On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “IRA”). The IRA contains a number of tax-related provisions including a 15% minimum corporate income tax on certain large corporations as well as an excise tax on stock repurchases. It is unclear how the IRA will be implemented by the U.S. Department of the Treasury through regulation. The Company is evaluating the impact of the IRA on its tax liability, which tax liability could also be affected by how the provisions of the IRA are implemented through such regulation. The Company will continue to evaluate the IRA’s impact as further information becomes available.

Under U.S. GAAP, a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Company recorded $15.7 million of unrecognized tax benefits as of September 30, 2022, for uncertain tax positions. Approximately all of the unrecognized tax benefits, if recognized, would affect the effective tax rate. The Company does not anticipate a material change to its unrecognized tax benefits over the next twelve months.

The primary jurisdictions in which the Company operates and incurs income taxes are the United States and the United Kingdom. There are no unremitted earnings with respect to the United Kingdom and other foreign jurisdictions.

In the normal course of business, the Company is subject to examination by federal, state, local and foreign tax authorities. As of September 30, 2022, the Company’s U.S. federal, state, local and foreign income tax returns for the years 2018 through 2020 are open under the general statute of limitations provisions and therefore subject to examination. Currently, the Internal Revenue Service is examining the tax returns of the Company and certain subsidiaries for the 2019 and 2020 tax years. The State and City of New York are examining certain subsidiaries’ tax returns for tax years 2011 to 2020. The United Kingdom authorities are currently examining certain subsidiaries’ tax returns for tax year 2017. There are other examinations ongoing in other foreign jurisdictions, which the Company operates. No provisions with respect to these examinations have been recorded, other than the unrecognized tax benefits discussed above.

The Company has historically recorded deferred tax assets resulting from the step-up in the tax basis of assets, including intangibles resulting from exchanges of AOG Units for Class A shares by the Former Managing Partners and Contributing Partners. A related liability has historically been recorded in “Due to Related Parties” in the condensed consolidated statements of financial condition for the expected payments under the tax receivable agreement entered into by and among the Company, the Former Managing Partners, the Contributing Partners, and other parties thereto (as amended, the “tax receivable agreement”) (see note 14). The benefit the Company has historically obtained from the difference in the tax asset recognized and the related liability resulted in an increase to additional paid in capital. The amortization period for the portion of the increase in tax basis related to intangibles is 15 years. The realization of the remaining portion of the increase in tax basis relates to the disposition of the underlying assets to which the step-up is attributed. The associated deferred tax assets reverse at the time of the corresponding asset disposition.

After the Mergers, the Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the tax receivable agreement during the nine months ended September 30, 2022. The table below presents the impact to the deferred tax asset, tax receivable agreement liability and additional paid in capital related to the exchange of AOG Units for Class A shares for the nine months ended September 30, 2021.

Exchange of AOG Units for Class A shares	Increase in Deferred Tax Asset		Increase in Tax Receivable Agreement Liability		Increase to Additional Paid In Capital
For the Nine Months Ended September 30, 2021	$	292,844	$	243,157	$	49,687

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DEBT

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

DEBT

DEBT

Debt consisted of the following:

		As of September 30, 2022					As of December 31, 2021
	Maturity Date	Outstanding Balance		Fair Value			Outstanding Balance		Fair Value
4.00% 2024 Senior Notes(1)(2)	May 30, 2024	$	498,959	$	486,201	(4)	$	498,469	$	530,052	(4)
4.40% 2026 Senior Notes(1)(2)	May 27, 2026	498,114		474,335		(4)	497,730		553,055		(4)
4.87% 2029 Senior Notes(1)(2)	February 15, 2029	674,809		629,825		(4)	674,786		777,703		(4)
2.65% 2030 Senior Notes(1)(2)	June 5, 2030	495,375		395,079		(4)	494,928		506,094		(4)
4.77% 2039 Senior Secured Guaranteed Notes(1)(2)		—		—		(6)	317,985		369,041		(5)
5.00% 2048 Senior Notes(1)(2)	March 15, 2048	296,899		263,572		(4)	296,757		397,191		(4)
4.95% 2050 Subordinated Notes(1)(2)	January 14, 2050	296,714		256,913		(4)	296,675		308,687		(4)
1.70% Secured Borrowing II(1)	April 15, 2032	16,663		15,708		(3)	19,334		19,239		(3)
1.30% 2016 AMI Term Facility I(1)	January 15, 2025	16,536		16,536		(3)	19,186		19,186		(3)
1.40% 2016 AMI Term Facility II(1)	July 23, 2023	15,986		15,986		(3)	18,546		18,546		(3)
Total Debt		$	2,810,055	$	2,554,155		$	3,134,396	$	3,498,794
(1) Interest rate is calculated as weighted average annualized.
(2) Includes amortization of note discount, as applicable, totaling $16.3 million and $25.1 million as of September 30, 2022 and December 31, 2021, respectively. Outstanding balance is presented net of unamortized debt issuance costs.
(3) Fair value is based on obtained broker quotes. These notes are classified as a Level III liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from external pricing services. For instances where broker quotes are not available, a discounted cash flow method is used to obtain a fair value.
(4) Fair value is based on obtained broker quotes. These notes are classified as a Level II liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from external pricing services.
(5) Fair value is based on a discounted cash flow method. These notes are classified as a Level III liability within the fair value hierarchy.
(6) There is no outstanding balance as of September 30, 2022. These notes were transferred to a VIE consolidated by Athene during the three months ended March 31, 2022.

As of September 30, 2022, the indentures governing the 2024 Senior Notes, the 2026 Senior Notes, the 2029 Senior Notes, the 2030 Senior Notes, the 2048 Senior Notes and the 2050 Subordinated Notes (the “Indentures”) include covenants that restrict the ability of AMH and, as applicable, the guarantors of the notes under the Indentures to incur indebtedness secured by liens on voting stock or profit participating equity interests of their respective subsidiaries, or merge, consolidate or sell, transfer or lease assets. The Indentures also provide for customary events of default.

Apollo’s debt obligations contain various customary loan covenants. As of September 30, 2022, the Company was not aware of any instances of non-compliance with the financial covenants contained in the documents governing the Company’s debt obligations.

Credit Facilities

The following table represents the Company’s credit facilities as of September 30, 2022:

Instrument/Facility	Borrowing Date	Maturity Date	Administrative Agent	Key terms
AMH credit facility1	November 23, 2020	November 23, 2025	Citibank, N.A.	The commitment fee on the $750 million undrawn AMH credit facility as of September 30, 2022 was 0.09%.
1 Refer below for details regarding the AMH credit facility refinancing, which occurred during the fourth quarter of 2022.

Borrowings under the AMH credit facility may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions. As of September 30, 2022, AMH, the borrower under the facility, could incur incremental facilities in an aggregate amount not to exceed $250 million plus additional amounts so long as AMH was in compliance with a net leverage ratio not to exceed 4.00 to 1.00.

As of September 30, 2022, there were no amounts outstanding under the AMH credit facility and the Company was in compliance with all covenants under the facility.

On October 12, 2022 (“Closing Date”), AMH, as borrower, entered into a new $1.0 billion revolving credit facility with Citibank, N.A., as administrative agent, which matures on October 12, 2027 (“2022 AMH credit facility”). In addition, AMH may incur incremental facilities in respect of the 2022 AMH credit facility in an aggregate amount not to exceed $250 million plus additional amounts so long as AMH is in compliance with a net leverage ratio not to exceed 4.00 to 1.00. The 2022 AMH credit facility refinanced the existing AMH credit facility dated as of November 23, 2020. As of the Closing Date, the existing AMH credit facility was undrawn and the facility and all related loan documents were terminated.

Borrowings under the 2022 AMH credit facility may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions. The 2022 AMH credit facility contains various standard affirmative and negative covenants with which AMH and its subsidiaries must comply, including maintaining minimum fee-generating assets under management of not less than $150 billion and a maximum total net leverage ratio not to exceed 4.00 to 1.00.

The interest rate on the 2022 AMH credit facility as of the Closing Date was based on adjusted Term SOFR and the applicable margin was 0.875%. The undrawn revolving commitment fee was 0.08% as of the Closing Date. As of November 8, 2022, there were no amounts outstanding under the 2022 AMH credit facility.

The following table presents the interest expense incurred related to the Company’s debt:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Total Interest Expense(1)	$	32,219	$	34,820	$	96,644	$	104,433
(1) Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable.

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EQUITY-BASED COMPENSATION

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

EQUITY-BASED COMPENSATION

EQUITY-BASED COMPENSATION

Under AGM’s Equity Plan, AGM is permitted to grant equity awards representing ownership interests in AGM common stock to employees of AAM. Equity-based awards granted to employees and non-employees as compensation are measured based on the grant date fair value of the award, which considers the public share price of AGM’s common stock subject to certain discounts, as applicable.

AGM grants both service and performance-based awards. The estimated total grant date fair value for service-based awards is charged to compensation expense on a straight-line basis over the vesting period, which is generally one to six years from the date of grant. Certain service-based awards are tied to profit sharing arrangements in which a portion of the performance fees distributed to the general partner are required to be used by employees to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under AGM’s Equity Plan. Performance-based awards vest subject to continued employment and AGM’s achievement of specified performance goals. In accordance with U.S. GAAP, equity-based compensation expense for performance grants are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. Equity-based awards that do not require future service (i.e., vested awards) are expensed immediately.

For the three months ended September 30, 2022 and September 30, 2021, AAM recorded equity-based compensation expense of $104.2 million and $56.2 million, respectively. For the nine months ended September 30, 2022 and September 30, 2021, AAM recorded equity-based compensation expense of $372.9 million and $165.7 million, respectively. As of September 30, 2022, there was $706.7 million of estimated unrecognized compensation expense related to unvested RSU awards. This cost is expected to be recognized over a weighted-average period of 2.9 years.

Service-Based Awards

During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded service-based grants of 3.6 million RSUs and 2.3 million RSUs with a grant date fair value of $219.8 million and $117.3 million, respectively.

During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on service-based awards of $49.3 million and $24.3 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on service-based awards of $155.5 million and $66.5 million, respectively.

Performance-Based Awards

During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded performance-based grants of 2.9 million and 2.1 million RSUs to certain employees with a grant date fair value of $167.4 million and $97.6 million, respectively, which primarily vest subject to continued employment and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation.

During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on performance-based awards of $39.1 million and $21.1 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on performance-based awards of $163.1 million and $65.0 million, respectively.

In December 2021, the Company awarded one-time grants to the Co-Presidents of 6 million RSUs which vest on a cliff basis subject to continued employment over five years, with 2 million of those RSUs also subject to AGM’s achievement of certain fee related earnings and spread related earnings per share metrics. During the three and nine months ended September 30, 2022, the Company recorded equity-based compensation expense of $13.9 million and $41.7 million, respectively, for service-based awards and $5.9 million and $17.6 million, respectively, for performance-based awards, each related to these one-time grants.

Restricted Stock Awards

During the nine months ended September 30, 2022 and September 30, 2021, AGM awarded 0.5 million and 0.6 million restricted stock awards from profit sharing arrangements with a grant date fair value of $33.5 million and $36.4 million, respectively.

During the three months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on restricted stock from profit sharing arrangements of $13.2 million and $8.3 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company recorded equity-based compensation expense on restricted stock from profit sharing arrangements of $46.1 million and $19.2 million, respectively.

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EQUITY

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

EQUITY

EQUITY

Preferred Stock

The Company has 11,000,000 Series A Preferred shares and 12,000,000 Series B Preferred shares issued and outstanding as of September 30, 2022.

Dividends on the Preferred shares are discretionary and non-cumulative. During 2022, quarterly cash dividends were $0.398438 per Series A Preferred share and Series B Preferred share.

Subject to certain exceptions, unless dividends have been declared and paid or declared and set apart for payment on the Preferred shares for a quarterly dividend period, during the remainder of that dividend period Apollo may not declare or pay or set apart payment for dividends on any shares of common stock or any other equity securities that the Company may issue in the future ranking, as to the payment of dividends, junior to the Preferred shares (“Junior Stock”) and Apollo may not repurchase any Junior Stock.

The Series A Preferred shares and the Series B Preferred shares may be redeemed at Apollo’s option, in whole or in part, at any time on or after March 15, 2022 and March 15, 2023, respectively, at a price of $25.00 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. Holders of the Preferred shares have no right to require the redemption of the Preferred shares and there is no maturity date.

If a certain change of control event or a certain tax redemption event occurs prior to March 15, 2023 for the Series B Preferred shares, the Series B Preferred shares may be redeemed at Apollo’s option, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such change of control event or such tax redemption event, as applicable, at a price of $25.25 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. If a certain rating agency event occurs prior to March 15, 2023, the Series B Preferred shares may be redeemed at Apollo’s option, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such rating agency event, at a price of $25.50 per share, plus declared and unpaid dividends to, but excluding, the redemption date, without payment of any undeclared dividends. If (i) a change of control event occurs and (ii) Apollo does not give notice prior

to the 31st day following the change of control event to redeem all the outstanding Preferred shares, the dividend rate per annum on the Preferred shares will increase by 5.00%, beginning on the 31st day following such change of control event.

The Preferred shares are not convertible into common stock and have no voting rights, except in limited circumstances as provided in the Company’s certificate of incorporation.

Non-Controlling Interests

The table below presents equity interests in Apollo’s consolidated, but not wholly-owned, subsidiaries and funds. Net income and comprehensive income attributable to non-controlling interests consisted of the following: 

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
Net income attributable to non-controlling interests in consolidated entities:
Interest in management companies and a co-investment vehicle(1)	$	267		$	1,866		$	3,157		$	4,464
Other consolidated entities	17,528			110,703			273,827			294,959
Net income attributable to non-controlling interests in consolidated entities	$	17,795		$	112,569		$	276,984		$	299,423
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net income	$	85,352		$	631,417		$	1,551,194		$	3,655,380
Net income attributable to non-controlling interests in consolidated entities	(17,795)			(112,569)			(276,984)			(299,423)
Net income after non-controlling interests in consolidated entities	67,557			518,848			1,274,210			3,355,957
Adjustments:
Income tax provision(2)	22,069			101,434			163,870			498,731
NYC UBT and foreign tax benefit(3)	(19,083)			(11,213)			(36,414)			(24,694)
Net income in non-Apollo Operating Group entities	9,414			1,099			30,845			1,103
Series A Preferred share dividends	(4,383)			(4,382)			(13,149)			(13,148)
Series B Preferred share dividends	(4,781)			(4,782)			(14,344)			(14,344)
Total adjustments	3,236			82,156			130,808			447,648
Net income after adjustments	70,793			601,004			1,405,018			3,803,605
Weighted average ownership percentage of Apollo Operating Group	42.6		%	44.1		%	42.6		%	45.8		%
Net income attributable to non-controlling interests in Apollo Operating Group	$	44,127		$	260,526		$	585,691		$	1,761,018
Net income attributable to non-controlling interests	$	61,922		$	373,095		$	862,675		$	2,060,441
Other comprehensive loss attributable to non-controlling interests	(32,280)			(10,082)			(66,133)			(20,275)
Comprehensive income attributable to non-controlling interests	$	29,642		$	363,013		$	796,542		$	2,040,166
(1) Reflects the remaining interest held by certain individuals who receive an allocation of income from certain of the credit funds managed by Apollo.
(2) Reflects all taxes recorded in our condensed consolidated statements of operations. Of this amount, U.S. federal, state, and local corporate income taxes attributable to AAM and its subsidiaries are added back to income of the Apollo Operating Group before calculating non-controlling interests as the income allocable to the Apollo Operating Group is not subject to such taxes.
(3) Reflects NYC UBT and foreign taxes that are attributable to the Apollo Operating Group and its subsidiaries related to its operations in the U.S. as partnerships and in non-U.S. jurisdictions as corporations. As such, these amounts are considered in the income attributable to the Apollo Operating Group.

Redeemable Non-Controlling Interests

As discussed in note 2, redeemable non-controlling interests primarily represent the shares issued by the Company’s consolidated SPACs. The table below presents the activities associated with the redeemable non-controlling interests.

	For the Nine Months Ended September 30,
	2022		2021
Balance at beginning of period	$	1,770,034	$	782,702
Redemption of non-controlling interests	(776,272)		—
Deconsolidation of SPAC	(39,588)		—
Net issuances of redeemable non-controlling interests	10,544		907,590
Accretion of redeemable non-controlling interests	58,989		59,762
Balance at end of period	$	1,023,707	$	1,750,054

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES

RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES

Management fees, transaction and advisory fees and reimbursable expenses from the funds the Company manages and their portfolio companies are included in due from related parties in the condensed consolidated statements of financial condition. The Company also typically facilitates the payment of certain operating costs incurred by the funds that it manages as well as their related parties. These costs are normally reimbursed by such funds and are included in due from related parties. Other related party transactions include loans to employees, periodic sales of ownership interests in Apollo funds to employees, and receivables from and payables to AGM. Due from related parties and due to related parties are comprised of the following:

	As of September 30, 2022		As of December 31, 2021
Due from Related Parties:
Due from funds(1)	$	484,498	$	315,875
Due from employees and former employees	94,139		106,755
Due from portfolio companies	61,493		66,960
Due from parent	37,483		—
Incentive fees receivable	10,074		4,236
Total Due from Related Parties	$	687,687	$	493,826
Due to Related Parties:
Due to Former Managing Partners and Contributing Partners(2)	$	906,157	$	1,118,272
Due to parent	657,941		—
Due to funds	116,915		104,130
Total Due to Related Parties	$	1,681,013	$	1,222,402
(1) Includes $41.9 million and $47.8 million as of September 30, 2022 and December 31, 2021, respectively, related to a receivable from a fund in connection with the Company’s sale of a platform investment to such fund. The amount is payable to the Company over five years and is held at fair value.
(2) Includes $394.4 million and $569.6 million as of September 30, 2022 and December 31, 2021, respectively, related to the purchase of limited partnership interests, payable in equal installments through December 31, 2024.

Tax Receivable Agreement

On January 1, 2022, Apollo acquired Athene and merged operations into a newly established HoldCo, later renamed Apollo Global Management, Inc. Pursuant to the Merger Agreement executed by AGM, the Former Managing Partners and Contributing Partners, all AOG Units beneficially owned by each holder of AOG Units were converted to shares of AGM common stock following the consummation of the Mergers.

Prior to the Mergers, each of the Former Managing Partners and Contributing Partners had the right to exchange vested AOG Units for Class A shares, subject to certain restrictions. All Apollo Operating Group entities have made, or will make, an election under Section 754 of the U.S. Internal Revenue Code, which will result in an adjustment to the tax basis of the assets owned by the Apollo Operating Group entities at the time an exchange was made. The election results in an increase to the tax basis of underlying assets which will reduce the amount of gain and associated tax that the Company and its subsidiaries will otherwise be required to pay in the future.

The tax receivable agreement (“TRA”) provides for payment to the Former Managing Partners and Contributing Partners of 85% of the amount of cash savings, if any, in U.S. federal, state, local and foreign income taxes that Apollo realizes as a result of the increases in tax basis of assets that resulted from transactions and other exchanges of AOG Units for Class A shares that occurred in prior years. AGM and its subsidiaries retain the benefit from the remaining 15% of actual cash tax savings. In May 2022, Apollo waived its early termination right, which had provided it the right to early terminate the tax receivable agreement at any time by payment of an early termination payment to all holders. If the Company does not make the required annual payment on a timely basis as outlined in the TRA, interest is accrued on the balance until the payment date.

Following the closing of the Mergers, the Former Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the TRA during the nine months ended September 30, 2022.

As a result of the exchanges of AOG Units for Class A shares during the nine months ended September 30, 2021, a $243.2 million liability was recorded to estimate the amount of the future payments to be made by the Company and its subsidiaries to the Former Managing Partners and Contributing Partners pursuant to the TRA.

AOG Unit Payment

On December 31, 2021, holders of AOG Units (other than Athene and the Company) sold and transferred a portion of such AOG Units to APO Corp., a wholly-owned consolidated subsidiary of the Company, in exchange for an amount equal to $3.66 multiplied by the total number of AOG Units held by such holders immediately prior to such transaction (such payment, the “AOG Unit Payment”). The remainder of the AOG Units held by such holders were exchanged for shares of AGM common stock concurrently with the consummation of the Mergers on January 1, 2022.

As of September 30, 2022, the outstanding payable amount to Former Managing Partners and Contributing Partners was $394.4 million, which is payable in equal installments through December 31, 2024.

Due from Employees and Former Employees

As of September 30, 2022 and December 31, 2021, due from employees and former employees includes various amounts due to the Company including employee loans and return of profit sharing distributions. As of September 30, 2022 and December 31, 2021, the balance included interest-bearing employee loans receivable of $15.8 million and $17.5 million respectively. The outstanding principal amount of the loans as well as all accrued and unpaid interest is required to be repaid at the earlier of the eighth anniversary of the date of the relevant loan or at the date of the relevant employee’s resignation from the Company.

The Company recorded a receivable from certain employees and former employees for the potential return of profit sharing distributions that would be due if certain funds were liquidated as of September 30, 2022 and December 31, 2021 of $65.8 million and $64.5 million, respectively.

Indemnity

Performance revenues from certain funds can be distributed to the Company on a current basis, but are subject to repayment by the subsidiaries of the Apollo Operating Group that act as general partners of the funds in the event that certain specified return thresholds are not ultimately achieved. The Former Managing Partners, Contributing Partners and certain other investment professionals have personally guaranteed, subject to certain limitations, the obligations of these subsidiaries in respect of this general partner obligation. Such guarantees are several and not joint and are limited to a particular Former Managing Partners’ or Contributing Partner’s distributions. The Company has agreed to indemnify each of the Company’s Former Managing Partners and certain Contributing Partners against all amounts that they pay pursuant to any of these personal guarantees in favor of certain funds that the Company manages (including costs and expenses related to investigating the basis for or objecting to any claims made in respect of the guarantees) for all interests that the Company’s Former Managing Partners and Contributing Partners contributed or sold to the Apollo Operating Group.

The Company recorded an indemnification liability in respect of this indemnification obligation of $13.3 million and $13.2 million as of September 30, 2022 and December 31, 2021, respectively.

Due to Funds

Based upon an assumed liquidation of certain of the funds the Company manages, the Company has recorded a general partner obligation to return previously distributed performance allocations, which represents amounts due to these funds. The general

partner obligation is recognized based upon an assumed liquidation of a fund’s net assets as of the reporting date. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective governing document of the fund.

The Company recorded general partner obligations to return previously distributed performance allocations related to certain funds of $88.6 million and $81.2 million as of September 30, 2022 and December 31, 2021, respectively.

Athene Fee Arrangement

The Company provides asset management and advisory services to Athene, including asset allocation services, direct asset management services, asset and liability matching management, mergers and acquisitions, asset diligence hedging and other asset management services. On March 31, 2022, Athene and Apollo agreed to revise the existing fee arrangements (the “amended fee agreement”) between Athene and Apollo. The Company began recording fees pursuant to the amended fee agreement on January 1, 2022. The amended fee agreement provides for sub-allocation fees which vary based on portfolio allocation differentiation, as described below.

The amended fee agreement provides for a monthly fee to be payable by Athene to the Company in arrears, with retroactive effect to the month beginning on January 1, 2022, in an amount equal to the following, to the extent not otherwise payable to the Company pursuant to any one or more investment management or sub-advisory agreements or arrangements:

(i)    The Company, through its consolidated subsidiary Apollo Insurance Solutions Group LP, or ISG, earns a base management fee of 0.225% per year on the aggregate book value of substantially all of the assets in substantially all of the accounts of or relating to Athene (collectively, the “Athene Accounts”) up to $103.4 billion (the “Backbook Value”) and 0.150% per year on all assets in excess of $103.4 billion (the “Incremental Value”), respectively; plus

(ii)    with respect to each asset in an Athene Account, subject to certain exceptions, that is managed by the Company and that belongs to a specified asset class tier (“core,” “core plus,” “yield,” and “high alpha”), a sub-allocation fee as follows:

	As of September 30, 2022
Sub-Allocation Fees:
Core Assets(1)	0.065	%
Core Plus Assets(2)	0.130	%
Yield Assets(3)	0.375	%
High Alpha Assets(4)	0.700	%
Other Assets (5)	—	%

(1)Core assets include public investment grade corporate bonds, municipal securities, agency residential or commercial mortgage backed securities and obligations of any governmental agency or government sponsored entity that is not expressly backed by the U.S. government.

(2)Core plus assets include private investment grade corporate bonds, fixed rate first lien commercial mortgage loans and obligations issued or assumed by a financial institution (such an institution, a “financial issuer”) and determined by Apollo to be “Tier 2 Capital” under the Basel III recommendations developed by the Basel Committee on Banking Supervision (or any successor to such recommendations).

(3)Yield assets include non-agency residential mortgage-backed securities, investment grade collateralized loan obligations, certain asset-backed securities, commercial mortgage-backed securities, emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial issuer, as rated preferred equity, residential mortgage loans, bank loans, investment grade infrastructure debt and certain floating rate commercial mortgage loans.

(4)High alpha assets include subordinated commercial mortgage loans, below investment grade collateralized loan obligations, unrated preferred equity, debt obligations originated by MidCap, below investment grade infrastructure debt, certain loans originated directly by Apollo and agency mortgage derivatives.

(5)Other Assets include cash, treasuries, equities and alternatives. With respect to equities and alternatives, Apollo earns performance revenues of 0% to 20%.

Merger Agreement

On March 8, 2021, the Company entered into the Merger Agreement with AHL, HoldCo, AHL Merger Sub, and AAM Merger Sub.

As of December 31, 2021, the Company held a 28.4% ownership interest in AHL’s Class A common shares.

On January 1, 2022, Apollo and Athene completed the previously announced Mergers. Following the closing of the Mergers, all of the common stock of AAM and AHL is owned by AGM and both AAM and AHL became consolidated subsidiaries of AGM. Subsequent to the closing of the Mergers, the Company distributed its interest in AHL’s Class A common shares to AGM.

Subsequent to the closing of the Mergers, the Company transferred the 2039 Senior Secured Guaranteed Notes to a VIE consolidated by Athene. Similarly, certain of Apollo’s general partner fund co-investments were transferred to Athene, which were subsequently transferred to AAA.

Athora

The Company, through ISGI, provides investment advisory services to certain portfolio companies of funds managed by Apollo and Athora, a strategic platform that acquires or reinsures blocks of insurance business in the European life insurance market (collectively, the “Athora Accounts”). The Company had equity commitments outstanding of up to $401.9 million as of September 30, 2022, subject to certain conditions.

Athora Sub-Advised

The Company, through ISGI, provides sub-advisory services with respect to a portion of the assets in certain portfolio companies of Apollo funds and the Athora Accounts. The Company broadly refers to “Athora Sub-Advised” assets as those assets in the Athora Accounts which the Company explicitly sub-advises as well as those assets in the Athora Accounts which are invested directly in funds and investment vehicles Apollo manages.

The Company earns a base management fee on the aggregate market value of substantially all of the investment accounts of or relating to Athora and also a sub-advisory fee on the Athora Sub-Advised assets, which varies depending on the specific asset class.

On December 15, 2021, the Company executed an amended and restated fee agreement with Athora. The new fee agreement revised the base fee paid to the Company for managing certain assets on behalf of Athora and removed Athora’s previous reimbursement of certain costs incurred by Apollo. These changes had retroactive effect to January 1, 2021.

The following table presents the revenues earned in aggregate from Athene and Athora:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues earned in aggregate from Athene and Athora, net(1)	$	341,888	$	284,254	$	959,261	$	828,045

(1)    Consisting of management fees, sub-advisory fees, and performance revenues from Athene and Athora, as applicable.

Regulated Entities and Affiliated Service Providers

Apollo Global Securities, LLC (“AGS”) is a registered broker dealer with the SEC and is a member of the Financial Industry Regulatory Authority, subject to the minimum net capital requirements of the SEC. AGS was in compliance with these requirements at September 30, 2022. From time to time, AGS, as well as other Apollo affiliates provide services to related parties of Apollo, including Apollo funds and their portfolio companies, whereby the Company or its affiliates earn fees for providing such services.

Griffin Capital Securities, LLC (“GCS”) is a registered broker dealer with the SEC and is a member of the Financial Industry Regulatory Authority, subject to the minimum net capital requirements of the SEC. GCS was in compliance with these requirements as of September 30, 2022.

Due to parent

Following the merger with Athene, the Company has a revolving loan agreement with AGM, its parent company, to manage cash balances and to fund liquidity for general corporate use. The balance outstanding on this loan to AGM was $657.9 million as of September 30, 2022.

Investment in SPACs

In October 2020, APSG I, a SPAC, completed an initial public offering, ultimately raising total gross proceeds of $816.8 million, including the underwriters’ subsequent partial exercise of their over-allotment option. In a private placement concurrent with the initial public offering, APSG I sold warrants to APSG Sponsor, L.P., a subsidiary of Apollo, for total gross proceeds of $18.3 million. APSG Sponsor, L.P. previously held Class B ordinary shares of APSG I. In May 2022, APSG I completed a business combination with American Express Global Business Travel. As a result of the business combination, Apollo no longer consolidates APSG I as a VIE. The deconsolidation resulted in an unrealized gain of $162.0 million, which includes $81.5 million of unrealized gains related to previously held Class B ordinary shares, which converted to Class A shares of the newly merged entity (“GBTG”), for the nine months ended September 30, 2022 and is presented in Net gains from investment activities within Other income in the condensed consolidated statements of operations. Apollo continues to hold a non-controlling interest in GBTG at fair value, presented within Investments in the condensed consolidated statements of financial condition. Apollo has significant influence in the retained investment, and has elected the fair value option for subsequent measurement.

On February 12, 2021, APSG II, a SPAC, completed an initial public offering, raising total gross proceeds of $690.0 million, including the underwriters’ exercise in full of their over-allotment option. In a private placement concurrent with the initial public offering, APSG II sold warrants to APSG Sponsor II, L.P., a subsidiary of Apollo, for total gross proceeds of $15.6 million. APSG Sponsor II, L.P. also holds Class B ordinary shares of APSG II. Apollo currently consolidates APSG II as a VIE, and thus all private placement warrants and Class B ordinary shares are eliminated in consolidation.

On July 13, 2021, Acropolis, a SPAC, completed an initial public offering, ultimately raising total gross proceeds of $345.0 million, including the underwriters’ subsequent exercise in full of their over-allotment option. In a private placement concurrent with the initial public offering, Acropolis sold warrants to Acropolis Infrastructure Acquisition Sponsor, L.P., a subsidiary of Apollo, for total gross proceeds of $8.8 million. Acropolis Infrastructure Acquisition Sponsor, L.P. also holds Class B common stock of Acropolis. Apollo currently consolidates Acropolis as a VIE, and thus all private placement warrants and Class B common stock are eliminated in consolidation.

As described in note 2, the Company consolidates entities that are VIEs for which the Company has been designated as the primary beneficiary. Through its interests in the respective sponsors, the Company has the power to direct the activities that most significantly impact the economic performance of these SPACs. In addition, the Company’s combined interests in these VIEs are significant. Assets and liabilities of the consolidated SPACs are shown within the respective line items of the condensed consolidated financial statements, as outlined below.

The tables below present the financial information of these SPACs in aggregate:

	As of September 30, 2022		As of December 31, 2021
Assets:
Cash and cash equivalents	$	579	$	1,796
Restricted cash and cash equivalents	694,582		690,205
U.S. Treasury securities, at fair value	347,170		1,162,299
Other assets	926		2,627
Total Assets	$	1,043,257	$	1,856,927
Liabilities, Redeemable non-controlling interests and Stockholders’ Equity
Liabilities:
Accounts payable and accrued expenses	$	3,250	$	2,361
Due to related parties	8,300		20,146
Other liabilities	41,519		143,778
Total Liabilities	53,069		166,285
Redeemable non-controlling interests:
Redeemable non-controlling interests	1,008,679		1,762,282
Stockholders’ Equity:
Additional paid in capital	(63,909)		(98,369)
Retained earnings	45,418		26,729
Total Stockholders’ Equity	(18,491)		(71,640)
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity	$	1,043,257	$	1,856,927

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Expenses:
Interest expense	$	7	$	3	$	16	5
General, administrative and other	685		3,824		6,426		13,369
Total Expenses	692		3,827		6,442		13,374
Other Income:
Net gains from investment activities	3,513		29,185		20,297		27,684
Interest income	4,949		131		6,710		392
Other income (loss), net	(100)		(146)		(300)		(370)
Total Other Income	8,362		29,170		26,707		27,706
Income before income tax provision	7,670		25,343		20,265		14,332
Income tax provision	(179)		—		(179)		—
Net Income Attributable to Apollo Asset Management, Inc.	7,491		25,343		20,086		14,332

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Investment Commitments

As a limited partner, general partner and manager of the Apollo funds, Apollo had unfunded capital commitments as of September 30, 2022 and December 31, 2021 of $0.5 billion and $1.0 billion, respectively.

Litigation and Regulatory Matters

Apollo is, from time to time, party to various legal actions arising in the ordinary course of business including claims and lawsuits, reviews, investigations or proceedings by governmental and self-regulatory agencies regarding its business.

On August 3, 2017, a complaint was filed in the United States District Court for the Middle District of Florida against AAM, a senior partner of Apollo and a former principal of Apollo by Michael McEvoy on behalf of a purported class of employees of

subsidiaries of CEVA Group, LLC (“CEVA Group”) who purchased shares in CEVA Investment Limited (“CIL”), the former parent company of CEVA Group. The complaint alleged that the defendants breached fiduciary duties to and defrauded the plaintiffs by inducing them to purchase shares in CIL and subsequently participating in a debt restructuring of CEVA Group in which shareholders of CIL did not receive a recovery. McEvoy subsequently revised his complaint to attempt to assert claims that do not belong to CIL. The amended complaint no longer named any individual defendants, but Apollo Management VI, L.P. and CEVA Group were added as defendants. The amended complaint sought damages of approximately €30 million and asserts, among other things, claims for violations of the Investment Advisers Act of 1940, breach of fiduciary duties, and breach of contract. On December 7, 2018, McEvoy filed his amended complaint in the District Court for the Middle District of Florida. On January 6, 2020, the Florida court granted in part Apollo’s motion to dismiss, dismissing McEvoy’s Investment Advisers Act claim with prejudice, and denying without prejudice Apollo’s motion with respect to the remaining claims, and directing the parties to conduct limited discovery, and submit new briefing, solely with respect to the statute of limitations. On July 30, 2020, Apollo and CEVA filed a joint motion for summary judgment on statute of limitations grounds. On June 29, 2021, the district court issued a decision denying the defendants’ joint motion for summary judgment on statute of limitations grounds, and set deadlines on July 23, 2021 for the plaintiff to file an amended complaint and August 20, 2021 for defendants to answer or move to dismiss the amended complaint. Plaintiff filed his second amended complaint on July 23, 2021 which added alleged grounds for tolling the statute of limitations. Also on July 23, 2021, the defendants filed a joint motion for reconsideration with respect to aspects of the district court’s June 29, 2021 decision. On March 10, 2022, the court granted defendants’ motion for reconsideration and granted Apollo’s motion for summary judgment. On April 7, 2022, Plaintiff filed a motion to alter or amend the court’s order of March 10. The defendants, including Apollo, opposed that motion on April 28, 2022. The court denied Plaintiff’s motion on May 26, 2022. Plaintiff has appealed the court’s decisions to the Eleventh Circuit. Apollo believes that Plaintiff’s appeal is without merit. No reasonable estimate of possible loss, if any, can be made at this time.

On December 21, 2017, several entities referred to collectively as “Harbinger” commenced an action in New York Supreme Court captioned Harbinger Capital Partners II LP et al. v. Apollo Global Management LLC, et al. (No. 657515/2017). The complaint named as defendants AAM, and funds managed by Apollo that invested in SkyTerra Communications, Inc. (“SkyTerra”), among others. The complaint alleged that during the period of Harbinger’s various equity and debt investments in SkyTerra from 2004 to 2010, the defendants concealed from Harbinger material defects in SkyTerra technology. The complaint further alleged that Harbinger would not have made investments in SkyTerra totaling approximately $1.9 billion had it known of the defects, and that the public disclosure of these defects ultimately led to SkyTerra filing for bankruptcy in 2012 (after it had been renamed LightSquared). The complaint sought $1.9 billion in damages, as well as punitive damages, interest, costs, and fees. On June 12, 2019, Harbinger voluntarily discontinued the state action without prejudice. On June 8, 2020, Harbinger refiled its litigation in New York Supreme Court, captioned Harbinger Capital Partners II, LP et al. v. Apollo Global Management, LLC et al. (No. 652342/2020). The complaint adds eight new defendants and three new claims relating to Harbinger’s contention that the new defendants induced Harbinger to buy CCTV One Four Holdings, LLC (“CCTV”) to support SkyTerra’s network even though they allegedly knew that the network had material defects. On November 23, 2020, Defendants refiled a bankruptcy motion, and on November 24, 2020, filed in the state court a motion to stay the state court proceedings pending a ruling by the bankruptcy court on the bankruptcy motion. On February 1, 2021, the bankruptcy court denied the bankruptcy motion. On March 31, 2021, Defendants filed their motions to dismiss the New York Supreme Court action. Hearings were held on the motions to dismiss on February 15, 2022 and February 18, 2022, and the motions remain pending. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time.

On November 1, 2019, plaintiff Benjamin Fongers filed a putative class action in Illinois Circuit Court, Cook County, against CareerBuilder, LLC (“CareerBuilder”) and AAM. Plaintiff alleges that in March 2019, CareerBuilder changed its compensation plan so that sales representatives such as Fongers would (i) receive reduced commissions; and (ii) only be able to receive commissions for accounts they originated that were not reassigned to anyone else, a departure from the earlier plan. Plaintiff also claims that the plan applied retroactively to deprive sales representatives of commissions to which they were earlier entitled. Plaintiff alleges that AAM exercises complete control over CareerBuilder and thus, CareerBuilder acts as AAM’s agent. Based on these allegations, Plaintiff alleges claims against both defendants for breach of written contract, breach of implied contract, unjust enrichment, violation of the Illinois Sales Representative Act, and violation of the Illinois Wage and Payment Collection Act. The defendants removed the action to the Northern District of Illinois on December 5, 2019, and Plaintiff moved to remand on January 6, 2020. On October 21, 2020, the district court granted the motion to remand. On January 11, 2021, the district court ordered the clerk of court to take the necessary steps to transfer the case back to Illinois Circuit Court, Cook County. On March 8, 2021, Plaintiff filed a motion under 28 U.S.C. § 1447(c) to recover attorneys’ fees of approximately $35,000 for the remand briefing. Defendants filed their opposition on March 31, 2021, and Plaintiff replied on April 14, 2021. Defendants filed motions to dismiss the complaint in the Illinois Circuit Court, Cook County on June 11, which

were fully briefed on August 13, 2021. CareerBuilder has also filed a Motion for a Protective Order and to Stay Discovery pending the outcome of the motions to dismiss. On February 7, 2022, the court held a hearing on the motions to dismiss and the request to stay discovery. At the hearing, the court took the motions to dismiss under advisement and granted CareerBuilder’s motion to stay discovery. On March 11, 2022, the parties filed a Notice of Settlement notifying the court that the parties have reached an agreement to resolve the case in full, and the court has granted preliminary approval of the settlement. The final approval hearing for the settlement is scheduled for November 17, 2022.

In March 2020, Frank Funds, which claims to be a former shareholder of MPM Holdings, Inc. (“MPM”), commenced an action in the Delaware Court of Chancery, captioned Frank Funds v. Apollo Global Management, Inc., et al., C.A. No. 2020-0130, against AAM, certain former MPM directors (including three Apollo officers and employees), and members of the consortium that acquired MPM in a May 2019 merger. The complaint asserts, on behalf of a putative class of former MPM shareholders, a claim against Apollo for breach of its fiduciary duties as MPM’s alleged controlling shareholder in connection with the May 2019 merger. Frank Funds seeks unspecified compensatory damages. On July 23, 2019, a group of former MPM shareholders filed an appraisal petition in Delaware Chancery Court seeking the fair value of their MPM shares that were purchased through MPM’s May 15, 2019 merger, in an action captioned In re Appraisal of MPM Holdings, Inc., C.A. No. 2019-0519 (Del. Ch.). On June 3, 2020, petitioners moved for leave to file a verified amended appraisal petition and class-action complaint that included claims for breach of fiduciary duty and/or aiding and abetting breaches of fiduciary duty against AAM, the Apollo-affiliated fund that owned MPM’s shares before the merger, certain former MPM directors (including three Apollo employees), and members of the consortium that acquired MPM, based on alleged actions related to the May 2019 merger. The petitioners also sought to consolidate their appraisal proceeding with the Frank Funds action. On November 13, 2020, the Chancery Court granted the parties’ stipulated order to consolidate the two matters, and on December 21, 2020, the Chancery Court granted petitioners’ motion for leave to file the proposed amended complaint. This new consolidated action is captioned In Re MPM Holdings Inc. Appraisal and Stockholder Litigation, C.A. No. 2019-0519 (Del Ch.). On January 13, 2022, the Chancery Court denied Apollo’s motion to dismiss. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time.

On August 4, 2020, a putative class action complaint was filed in the United States District Court for the District of Nevada against PlayAGS Inc. (“PlayAGS”), all of the members of PlayAGS’s board of directors (including three directors who are affiliated with Apollo), certain underwriters of PlayAGS (including Apollo Global Securities, LLC), as well as AAM, Apollo Investment Fund VIII, L.P., Apollo Gaming Holdings, L.P., and Apollo Gaming Voteco, LLC (these last four parties, together, the “Apollo Defendants”). The complaint asserts claims against all defendants arising under the Securities Act of 1933 in connection with certain secondary offerings of PlayAGS stock conducted in August 2018 and March 2019, alleging that the registration statements issued in connection with those offerings did not fully disclose certain business challenges facing PlayAGS. The complaint further asserts a control person claim under Section 20(a) of the Exchange Act against the Apollo Defendants and the director defendants (including the directors affiliated with Apollo), alleging such defendants were responsible for certain misstatements and omissions by PlayAGS about its business. Plaintiffs filed amended complaints on January 11, 2021 and again on March 25, 2021. On May 24, 2021, the Apollo Defendants filed a motion to dismiss the complaint, which motion remains pending. Apollo believes the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time.

On or around October 19, 2021, a purported stockholder of AAM filed a complaint against AAM in the Court of Chancery of the State of Delaware seeking the disclosure of certain additional documents pursuant to Section 220 of the Delaware General Corporation Law. The complaint alleges that the stockholder seeks to investigate (a) whether wrongdoing or mismanagement occurred in connection with the decision of the AAM board of directors to pay, in connection with the elimination of the AAM Up-C structure, the partners of AP Professional Holdings, L.P. (including the Former Managing Partners) a payment of cash equal to $3.66 per AOG Unit held, which the complaint characterizes as providing $640 million for “Tax Receivable Agreement” assets (which the stockholder alleges are worth nothing); (b) the independence and disinterestedness of AAM directors and/or officers; and (c) potential damages relating thereto. Apollo and the stockholder subsequently resolved the Section 220 action through the production of supplemental documents, and, on September 29, 2022, the Section 220 action was voluntarily dismissed. It is possible that the stockholder later pursues a plenary action challenging the substantive issues that are the subject of the stockholder’s investigation.

Certain of Apollo’s investment adviser subsidiaries have received a request for information and documents from the SEC in connection with an investigation concerning compliance with record retention requirements relating to business communications sent or received via electronic messaging channels. As has been publicly reported, the SEC is conducting similar investigations of other investment advisers.

Commitments and Contingencies

Other long-term obligations relate to payments with respect to certain consulting agreements entered into by Apollo Investment Consulting LLC, a subsidiary of Apollo, as well as long-term service contracts. A significant portion of these costs are reimbursable by funds or portfolio companies. As of September 30, 2022, fixed and determinable payments due in connection with these obligations were as follows:

	Remaining 2022		2023 - 2024		2025 - 2026		2027 and Thereafter		Total
Other long-term obligations	$	15,966	$	17,403	$	249	$	—	$	33,618

Contingent Obligations

Performance allocations with respect to certain funds are subject to reversal in the event of future losses to the extent of the cumulative revenues recognized in income to date. If all of the existing investments became worthless, the amount of cumulative revenues that have been recognized by Apollo through September 30, 2022 and that would be reversed approximates $4.3 billion. Management views the possibility of all of the investments becoming worthless as remote. Performance allocations are affected by changes in the fair values of the underlying investments in the funds that Apollo manages. Valuations, on an unrealized basis, can be significantly affected by a variety of external factors including, but not limited to, bond yields and industry trading multiples. Movements in these items can affect valuations quarter to quarter even if the underlying business fundamentals remain stable.

Additionally, at the end of the life of certain funds that the Company manages, there could be a payment due to a fund by the Company if the Company, as general partner, has received more performance allocations than was ultimately earned. The general partner obligation amount, if any, will depend on final realized values of investments at the end of the life of each fund or as otherwise set forth in the respective limited partnership agreement of the fund. See note 14 to our condensed consolidated financial statements for further details regarding the general partner obligation.

Certain funds may not generate performance allocations as a result of unrealized and realized losses that are recognized in the current and prior reporting period. In certain cases, performance allocations will not be generated until additional unrealized and realized gains occur. Any appreciation would first cover the deductions for invested capital, unreturned organizational expenses, operating expenses, management fees and priority returns based on the terms of the respective fund agreements.

One of the Company’s subsidiaries, AGS, provides underwriting commitments in connection with securities offerings of related parties of Apollo, including portfolio companies of the funds Apollo manages, as well as third parties. As of September 30, 2022 and December 31, 2021, there were no open underwriting commitments.

The Company and Athene, together with a third-party institutional investor, have committed to provide financing to a consolidated VIE that invests across Apollo’s capital markets platform (such VIE, the “Apollo Capital Markets Partnership”). Pursuant to these arrangements, the Company and Athene have committed equity financing to the Apollo Capital Markets Partnership. The Apollo Capital Markets Partnership also has a revolving credit facility with Sumitomo Mitsui Banking Corporation, as lead arranger, administrative agent and letter of credit issuer, Mizuho Bank Ltd., and other lenders party thereto, pursuant to which it may borrow up to $2.25 billion. The revolving credit facility, which has a final maturity date of April 1, 2025, is non-recourse to the Company and Athene, except that the Company and Athene provided customary comfort letters with respect to their capital contributions to the Apollo Capital Markets Partnership. As of September 30, 2022, the Apollo Capital Markets Partnership had funded commitments of $511 million to transactions across Apollo’s capital markets platform, all of which were funded through the revolving credit facility, and no capital had been funded by the Company or Athene to the Apollo Capital Markets Partnership pursuant to their commitments.

Whether the commitments of the Apollo Capital Markets Partnership are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. It is expected that between the time the Apollo Capital Markets Partnership makes a commitment and funding of such commitment, efforts will be made to syndicate such commitment to, among others, third parties, which should reduce its risk when committing to certain transactions. The Apollo Capital Markets Partnership may also, with respect to a particular transaction, enter into other arrangements with third parties which reduce its commitment risk.

Contingent Consideration

In connection with the acquisition of Stone Tower in April 2012, the Company agreed to pay the former owners of Stone Tower a specified percentage of any future performance revenues earned from certain of the Stone Tower funds, CLOs, and strategic investment accounts. This contingent consideration liability was determined based on the present value of estimated future performance revenue payments, and is recorded in profit sharing payable in the condensed consolidated statements of financial condition. The fair value of the remaining contingent obligation was $103.0 million and $125.9 million as of September 30, 2022 and December 31, 2021, respectively.

The contingent consideration obligations will be remeasured to fair value at each reporting period until the obligations are satisfied and are characterized as Level III liabilities. The changes in the fair value of the contingent consideration obligations is reflected in profit sharing expense in the condensed consolidated statements of operations. See note 7 for further information regarding fair value measurements.

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SEGMENT REPORTING

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Apollo conducts its business primarily in the United States through two reportable segments: (i) asset management and (ii) principal investing. Segment information is utilized by our chief operating decision makers to assess performance and to allocate resources.

The performance is measured by the Company’s chief operating decision makers on an unconsolidated basis because management makes operating decisions and assesses the performance of each of Apollo’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the affiliated funds.

Segment Reporting Changes

In connection with the completion of the Mergers, Apollo undertook a strategic review of its operating structure and business segments to assess the performance of its businesses and the allocation of resources. As a result, for periods following the Mergers, Apollo reports results through two reportable segments called asset management and principal investing.

In connection with these changes, all prior periods have been recast to conform to the new presentation. Consequently, this information will be different from the historical segment financial results previously reported by Apollo in its reports filed with the SEC.

Adjusted Segment Income

Adjusted Segment Income is the key performance measure used by management in evaluating the performance of the asset management and principal investing segments. Management uses Adjusted Segment Income to make key operating decisions such as the following:

•decisions related to the allocation of resources such as staffing decisions including hiring and locations for deployment of the new hires;

•decisions related to capital deployment such as providing capital to facilitate growth for the business and/or to facilitate expansion into new businesses;

•decisions related to expenses, such as determining annual discretionary bonuses and compensation to employees. With respect to compensation, management seeks to align the interests of certain professionals and selected other individuals with those of the investors in the funds and those of Apollo’s stockholders by providing such individuals a profit sharing interest in the performance fees earned in relation to the funds. To achieve that objective, a certain amount of compensation is based on Apollo’s performance and growth for the year.

Adjusted Segment Income is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. Adjusted Segment Income represents the amount of Apollo’s net realized earnings, excluding the effects of the consolidation of any of the related funds and SPACs, interest and preferred dividends paid to Preferred shareholders, taxes and related payables, transaction-related charges and any acquisitions. Transaction-related charges includes equity-based compensation charges, the amortization of intangible assets, contingent consideration, and certain other charges associated with acquisitions, and restructuring charges. In addition, Adjusted Segment Income excludes non-cash revenue and expense related to equity awards granted by unconsolidated related parties to employees of the Company, compensation and

administrative related expense reimbursements, as well as the assets, liabilities and operating results of the funds and variable interest entities that are included in the condensed consolidated financial statements. Adjusted Segment Income also excludes impacts of the remeasurement of the tax receivable agreement liability recorded in other income, which arises from changes in the associated deferred tax balance.

Adjusted Segment Income may not be comparable to similarly titled measures used by other companies and is not a measure of performance calculated in accordance with U.S. GAAP. We use Adjusted Segment Income as a measure of operating performance, not as a measure of liquidity. Adjusted Segment Income should not be considered in isolation or as a substitute for net income or other income data prepared in accordance with U.S. GAAP. The use of Adjusted Segment Income without consideration of related U.S. GAAP measures is not adequate due to the adjustments described above. Management compensates for these limitations by using Adjusted Segment Income as a supplemental measure to U.S. GAAP results, to provide a more complete understanding of our performance as management measures it. A reconciliation of Adjusted Segment Income to its most directly comparable U.S. GAAP measure of income (loss) before income tax provision can be found in this footnote.

Fee Related Earnings

Fee Related Earnings (“FRE”) is a component of Adjusted Segment Income that is used to assess the performance of the asset management segment. FRE is the sum of (i) management fees, (ii) advisory and transaction fees, (iii) fee-related performance fees from indefinite term vehicles, that are measured and received on a recurring basis and not dependent on realization events of the underlying investments and (iv) other income, net, less (a) fee-related compensation, excluding equity-based compensation, (b) non-compensation expenses incurred in the normal course of business, (c) placement fees and (d) non-controlling interests in the management companies of certain funds the Company manages.

Principal Investing Income

Principal Investing Income (“PII”) is a component of Adjusted Segment Income that is used to assess the performance of the principal investing segment. For the principal investing segment, PII is the sum of (i) realized performance fees, excluding realizations received in the form of shares, (ii) realized investment income, less (x) realized principal investing compensation expense, excluding expense related to equity-based compensation, and (y) certain corporate compensation and non-compensation expenses.

The following tables present financial data for the Company’s reportable segments.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Asset Management
Management Fees	$	545,924	$	472,483	$	1,573,197	$	1,395,200
Advisory and transaction fees, net	104,532		65,077		271,781		203,807
Fee-related performance fees	19,989		19,856		45,866		36,702
Fee related compensation	(193,793)		(160,689)		(556,389)		(476,663)
Other operating expenses	(112,005)		(76,601)		(318,716)		(218,316)
Fee Related Earnings (FRE)	364,647		320,126		1,015,739		940,730
Principal Investing
Realized performance fees	92,993		608,130		371,044		1,183,640
Realized investment income	61,410		295,225		537,776		397,610
Principal investing compensation	(87,580)		(309,016)		(398,566)		(631,382)
Other operating expenses	(7,214)		(12,014)		(19,250)		(34,149)
Principal Investing Income (PII)	59,609		582,325		491,004		915,719
Adjusted Segment Income	424,256		902,451		1,506,743		1,856,449
Segment Assets:
Asset Management					$	1,936,252
Principal Investing					8,379,698
Total Assets(1)					$	10,315,950
(1) Refer below for a reconciliation of total assets for Apollo’s total reportable segments to total consolidated assets.

The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Adjusted Segment Income:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Income before income tax provision	$	107,421	$	732,851	$	1,715,064	$	4,154,111
Equity-based profit sharing expense and other(1)	55,728		31,731		219,454		93,595
Equity-based compensation	45,183		19,538		138,584		55,187
Transaction-related charges(2)	8,028		(954)		5,928		27,028
Merger-related transaction and integration costs(3)	12,150		14,647		48,637		38,331
(Gains) losses from changes in tax receivable agreement liability	—		—		14,184		(1,941)
Net income attributable to non-controlling interests in consolidated entities	(17,795)		(112,569)		(276,984)		(299,423)
Unrealized performance fees	66,202		159,044		109,083		(1,411,205)
Unrealized profit sharing expense	(18,609)		(40,991)		(15,909)		646,142
Net interest expense	21,236		32,552		78,007		100,365
Unrealized principal investment income (loss)	127,488		218,816		137,784		(153,577)
Unrealized net (gains) losses from investment activities and other	17,224		(152,214)		(667,089)		(1,392,164)
Adjusted Segment Income	$	424,256	$	902,451	$	1,506,743	$	1,856,449
(1) Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are required to be used by employees of Apollo to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under AGM’s Equity Plan. Equity-based profit sharing expense and other also includes performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense.
(2) Transaction-related charges include contingent consideration, equity-based compensation charges and the amortization of intangible assets and certain other charges associated with acquisitions, and restructuring charges.
(3) Merger-related transaction and integration costs includes advisory services, technology integration, equity-based compensation charges and other costs associated with the Mergers.

The following table presents the reconciliation of the Company’s total reportable segment assets to total assets:

	As of September 30, 2022		As of December 31, 2021
Total reportable segment assets	$	10,315,950	$	13,573,400
Adjustments(1)	2,002,132		16,928,494
Total assets	$	12,318,082	$	30,501,894
(1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments.

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Dividends

On November 2, 2022, the Company declared a cash dividend of $0.398438 per share of Series A Preferred shares and Series B Preferred shares, which will be paid on December 15, 2022 to holders of record at the close of business on December 1, 2022.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Organization of the Company

Organization of the Company

As of September 30, 2022, the Company owned 57.4% of the economic interests of, and operated and controlled all of the businesses and affairs of, the Apollo Operating Group. The remaining 42.6% of the economic interests of the Apollo Operating Group are owned by Apollo Global Management, Inc. (“AGM”).

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the 2021 Annual Report. Certain disclosures included in the annual financial statements have been condensed or omitted as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year.

The results of the Company and its subsidiaries are presented on a consolidated basis. Any ownership interest other than the Company’s interest in its subsidiaries is reflected as a non-controlling interest. Intercompany accounts and transactions have been eliminated. Management believes it has made all necessary adjustments (consisting only of normal recurring items) so that the condensed consolidated financial statements are presented fairly and that any estimates made are reasonable and prudent. Certain reclassifications have been made to previously reported amounts to conform to the current period’s presentation.

Consolidation

Consolidation

When an entity is consolidated, the accounts of the consolidated entity, including its assets, liabilities, revenues, expenses and cash flows, are presented on a gross basis. Consolidation does not have an effect on the amounts of net income reported. The Company consolidates entities where it has a controlling financial interest unless there is a specific scope exception that prevents consolidation.

The types of entities with which the Company is involved generally include, but are not limited to:

•Subsidiaries, including management companies and general partners of funds that the Company manages

•Entities that have attributes of an investment company (e.g., funds)

•Special purpose acquisition companies (“SPACs”)

•Securitization vehicles (e.g., collateralized loan obligations (“CLOs”))

Each of these entities is assessed for consolidation depending on the specific facts and circumstances surrounding that entity. In determining whether to consolidate an entity, the Company first evaluates whether the entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”) and applies the appropriate consolidation model as discussed below. If an entity is not consolidated, then the Company’s investment is generally accounted for under the equity method of accounting or as a financial instrument as discussed in the related policy discussions below.

Investment Companies

Judgment is required to evaluate whether an entity has the necessary characteristics to be accounted for as an investment company. Funds we manage that meet the investment company criteria are generally not required to consolidate operating companies and generally reflect their investments in operating companies and other investment companies at fair value. The Company has retained this specialized accounting for investment companies in consolidation.

Variable Interest Entities

All entities are first considered under the VIE model. VIEs are entities that i) do not have sufficient equity at risk to finance its activities without additional subordinated financial support or ii) have equity investors that do not have the ability to make significant decisions related to the entity’s operations, absorb expected losses, or receive expected residual returns.

The Company consolidates a VIE if it is the primary beneficiary of the entity. The Company is deemed the primary beneficiary when it has a controlling financial interest in the VIE, which is defined as possessing both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance (“primary beneficiary power”) and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (“significant variable interest”). The Company performs the VIE and primary beneficiary assessment at inception of its involvement with a VIE and on an ongoing basis if facts and circumstances change.

To assess whether the Company has the primary beneficiary power under the VIE consolidation model, it considers the design of the entity as well as ongoing rights and responsibilities. In general, the parties that can make the most significant decisions regarding asset management have control over servicing, liquidation rights or the unilateral right to remove the decision-makers. To assess whether the Company has a significant variable interest, the Company considers all its economic interests that are considered variable interests in the entity including interests held through related parties. This assessment requires judgment in considering whether those interests are significant.

Assets and liabilities of the consolidated VIEs, other than SPACs, are primarily shown in separate sections within the condensed consolidated statements of financial condition. Changes in the fair value of the consolidated VIEs’ assets and liabilities and related interest, dividend and other income and expenses are primarily presented within net gains from investment activities of consolidated variable interest entities in the condensed consolidated statements of operations. The portion attributable to non-controlling interests is reported within net income attributable to non-controlling interests in the condensed consolidated statements of operations. For additional disclosures regarding VIEs, see notes 6 and 14.

Voting Interest Entities

For entities that are not determined to be VIEs, the entities are generally considered VOEs. Under the VOE model, Apollo consolidates those entities it controls through a majority voting interest. Apollo does not consolidate those VOEs in which substantive kick-out rights have been granted to the unrelated investors to either dissolve the fund or remove the general partner.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts in the financial statements and the related footnotes. Apollo’s most significant estimates include goodwill, intangible assets, income taxes, performance allocations, incentive fees, contingent consideration obligations related to an acquisition, non-cash compensation, and fair value of investments and debt. While such impact may change considerably over time, the estimates and assumptions affecting the Company’s condensed consolidated financial statements are based on the best available information as of September 30, 2022. Actual results could differ materially from those estimates.

Cash and Cash Equivalents / Restricted Cash and Cash Equivalents

Cash and Cash Equivalents

Apollo considers all highly liquid short-term investments, including money market funds and U.S. Treasury securities, with original maturities of three months or less when purchased to be cash equivalents. Restricted cash and cash equivalents are reported separately as discussed below. Interest income from cash and cash equivalents is recorded in interest income in the condensed consolidated statements of operations. The carrying values of the money market funds and U.S. Treasury securities represent their fair values due to their short-term nature. Substantially all of the Company’s cash on deposit is in interest bearing accounts with major financial institutions and exceed insured limits.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents represent balances that are restricted as to withdrawal or usage.

Restricted cash and cash equivalents of Apollo Strategic Growth Capital II (“APSG II”), a consolidated SPAC, is held in trust accounts and includes money market funds and U.S. Treasury bills with original maturities of three months or less, that were purchased with funds raised through the respective initial public offering of the consolidated entity. The $694.5 million in funds for APSG II as of September 30, 2022 is restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in APSG II’s trust agreement.

U.S. Treasury Securities, at fair value

U.S. Treasury Securities, at fair value

U.S. Treasury securities, at fair value includes U.S. Treasury bills with original maturities greater than three months when purchased. These securities are recorded at fair value within investments in the condensed consolidated statements of financial condition. Interest income on such securities is separately presented from the overall change in fair value and is recognized in interest income in the condensed consolidated statements of operations. Any remaining change in fair value of such securities, that is not recognized as interest income, is recognized in net gains (losses) from investment activities in the condensed consolidated statements of operations. Securities are generally recognized on a trade date basis.

U.S. Treasury securities, at fair value of Acropolis Infrastructure Acquisition Corp. (“Acropolis”), a consolidated SPAC, is held in a trust account and consists of U.S Treasury bills that were purchased with funds raised through the initial public offering of the consolidated entity.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in an orderly transaction. Changes in the fair value of financial instruments are recorded and presented in net gains (losses) from investment activities except for certain investments for which the Company is entitled to receive performance allocations. For those investments, changes in fair value are presented in principal investment income and are included within Investment income (loss) in the condensed consolidated statement of operations.

Financial instruments are generally recorded at fair value or at carrying values that approximate fair value. The actual realized gains or losses will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may ultimately differ significantly from the assumptions on which the valuations were based.

Fair Value Option

Entities are permitted to elect the fair value option (“FVO”) to carry at fair value certain financial assets and financial liabilities. The FVO election is irrevocable and can be applied to eligible financial instruments on an individual basis at initial recognition or at eligible remeasurement events.

The Company has elected the FVO for financial instruments held by its consolidated CLOs, which includes investments in loans and corporate bonds, as well as debt obligations and contingent obligations. Certain consolidated VIEs have applied the FVO for investments in private debt securities that otherwise would not have been carried at fair value with gains and losses in net income. The Company has also elected the FVO for certain investments otherwise accounted for under the equity method of accounting. Refer to note 4 for additional information and other instances of when the Company has elected the FVO.

Fair Value Hierarchy

U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I - Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments included in Level I include listed equities and debt. The Company does not adjust the quoted price for these financial instruments, even in situations where the Company holds a large position and the sale of such position would likely deviate from the quoted price.

Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments that are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives where the fair value is based on observable inputs. These financial instruments exhibit higher levels of liquid market observability as compared to Level III financial instruments.

Level III - Pricing inputs are unobservable for the financial instrument and includes situations where there is little observable market activity for the financial instrument. The inputs into the determination of fair value may require significant management judgment or estimation. Financial instruments that are included in this category generally

include general and limited partner interests in equity and hybrid funds, distressed debt and non-investment grade residual interests in securitizations, and CDOs and CLOs where the fair value is based on observable inputs as well as unobservable inputs.

When a security is valued based on broker quotes, the Company subjects those quotes to various criteria in making the determination as to whether a particular financial instrument would qualify for classification as Level II or Level III. These criteria include, but are not limited to, the number and quality of the broker quotes, the standard deviations of the observed broker quotes, and the percentage deviation from external pricing services.

Investments in securities that are traded on a securities exchange or comparable over-the-counter quotation systems are valued based on the last reported sale price at that date. If no sales of such investments are reported on such date, and in the case of over-the-counter securities or other investments for which the last sale date is not available, valuations are based on independent market quotations obtained from market participants, recognized pricing services or other sources deemed relevant, and the prices are based on the average of the “bid” and “ask” prices, or at ascertainable prices at the close of business on such day. Market quotations are generally based on valuation pricing models or market transactions of similar securities adjusted for security-specific factors such as relative capital structure priority and interest and yield risks, among other factors. When market quotations are not available, a model based approach is used to determine fair value.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument when the fair value is based on unobservable inputs.

Equity Method Investments

Equity Method Investments

For equity investments in entities where the Company exercises significant influence but does not meet the requirements for consolidation and has not elected the fair value option, the Company uses the equity method of accounting. Under the equity method of accounting, the Company records its share of the underlying income or loss of such entities adjusted for distributions. The Company’s share of the underlying net income or loss of such entities is recorded in Investment income (loss) in the condensed consolidated statements of operations.

The carrying amounts of equity method investments are recorded in investments in the condensed consolidated statements of financial condition. Generally, the underlying entities that the Company manages and invests in are primarily investment companies, and the carrying value of the Company’s equity method investments approximates fair value.

Financial Instruments held by Consolidated VIEs

Financial Instruments held by Consolidated VIEs

Under a measurement alternative permissible for consolidated collateralized financing entities, the Company measures both the financial assets and financial liabilities of consolidated CLOs in its condensed consolidated financial statements using the fair value of the financial assets or financial liabilities, whichever are more observable.

Where financial assets are more observable, the financial assets of the consolidated CLOs are measured at fair value and the financial liabilities are measured in consolidation as: (i) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (ii) the sum of the fair value of any beneficial interests retained by the Company (other than those that represent compensation for services) and the Company’s carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interest retained by the Company) using a reasonable and consistent methodology.

Where financial liabilities are more observable, the financial liabilities of the consolidated CLOs are measured at fair value and the financial assets are measured in consolidation as: (i) the sum of the fair value of the financial liabilities, and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CLOs less (ii) the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs. The resulting amount is allocated to the individual financial assets using a reasonable and consistent methodology.

Net income attributable to Apollo Asset Management, Inc. reflects the Company’s own economic interests in the consolidated CLOs including (i) changes in the fair value of the beneficial interests retained by the Company and (ii) beneficial interests that represent compensation for collateral management services.

Deferred Revenue and Revenues

Deferred Revenue

Apollo records deferred revenue, which is a type of contract liability, when consideration is received in advance of management services provided.

Apollo also earns management fees subject to the Management Fee Offset (described below). When advisory and transaction fees are earned by the management company, the Management Fee Offset reduces the management fee obligation of the fund. When the Company receives cash for advisory and transaction fees, a certain percentage of such advisory and/or transaction fees, as applicable, is allocated as a credit to reduce future management fees, otherwise payable by such fund. Such credit is recorded as deferred revenue in the condensed consolidated statements of financial condition. A portion of any excess advisory and transaction fees may be required to be returned to the limited partners of certain funds upon such fund’s liquidation. As the management fees earned by the Company are presented on a gross basis, any Management Fee Offsets calculated are presented as a reduction to advisory and transaction fees in the condensed consolidated statements of operations.

Additionally, Apollo earns advisory fees pursuant to the terms of the advisory agreements with certain of the portfolio companies that are owned by the funds Apollo manages. When Apollo receives a payment from a portfolio company that exceeds the advisory fees earned at that point in time, the excess payment is recorded as deferred revenue in the condensed consolidated statements of financial condition. The advisory agreements with the portfolio companies vary in duration and the associated fees are received monthly, quarterly or annually.

Deferred revenue is reversed and recognized as revenue over the period that the agreed upon services are performed. There was $109.7 million of revenue recognized during the nine months ended September 30, 2022 that was previously deferred as of January 1, 2022.

Under the terms of the funds’ partnership agreements, Apollo is normally required to bear organizational expenses over a set dollar amount and placement fees or costs in connection with the offering and sale of interests in the funds it manages to investors. The placement fees are payable to placement agents, who are independent third parties that assist in identifying potential investors, securing commitments to invest from such potential investors, preparing or revising offering and marketing materials, developing strategies for attempting to secure investments by potential investors and/or providing feedback and insight regarding issues and concerns of potential investors, when a limited partner either commits or funds a commitment to a fund. In cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract, and amortized over the life of the customer contract. Capitalized placement fees are recorded within other assets in the condensed consolidated statements of financial condition, while amortization is recorded within placement fees in the condensed consolidated statements of operations. In certain instances, the placement fees are paid over a period of time. Based on the management agreements with the funds, Apollo considers placement fees and organizational costs paid in determining if cash has been received in excess of the management fees earned. Placement fees and organizational costs are normally the obligation of Apollo but can be paid for by the funds. When these costs are paid by the fund, the resulting obligations are included within deferred revenue. The deferred revenue balance will also be reduced during future periods when management fees are earned but not paid.

Revenues

The Company’s revenues include (i) management fees; (ii) advisory and transaction fees, net; (iii) investment income, which is comprised of performance allocations and principal investment income; and (iv) incentive fees.

The Company is required to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services (i.e., the transaction price). When determining the transaction price, the Company may recognize variable consideration only to the

extent that it is probable to not be significantly reversed. The Company is also required to disclose the nature, amount, timing, and uncertainty of revenue that is recognized.

Performance allocations are accounted for as equity method investments. The Company recognizes performance allocations within investment income along with the related principal investment income (as further described below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition.

Redeemable non-controlling interests

Redeemable non-controlling interestsRedeemable non-controlling interests are attributable to VIEs and primarily represent the shares issued by the Company’s consolidated SPACs that are redeemable for cash by the respective public shareholders in connection with the applicable SPAC’s failure to complete a business combination or its tender offer/stockholder approval provisions. The redeemable non-controlling interests are initially recorded at their original issue price, net of issuance costs and the initial fair value of separately traded warrants. The carrying amount is accreted to its redemption value over the period from the date of issuance to the earliest redemption date of the instrument. The accretion to redemption value is generally recorded against additional paid-in capital.

Management Fees

Management Fees

Management fees are recognized over time during the periods in which the related services are performed in accordance with the contractual terms of the related agreement. Management fees are generally based on (1) a percentage of the capital committed during the commitment period, and thereafter based on the remaining invested capital of unrealized investments, or (2) net asset value, gross assets or as otherwise defined in the respective agreements. Included in management fees are certain expense reimbursements where the Company is considered the principal under the agreements and is required to record the expense and related reimbursement revenue on a gross basis.

Advisory and Transaction Fees, Net

Advisory and Transaction Fees, Net

Advisory fees, including management consulting fees and directors’ fees, are generally recognized over time as the underlying services are provided in accordance with the contractual terms of the related agreement. The Company receives such fees in exchange for ongoing management consulting services provided to portfolio companies of funds it manages. Transaction fees, including structuring fees and arranging fees related to the Company’s funds, portfolio companies of funds and third parties are generally recognized at a point in time when the underlying services rendered are complete.

The amounts due from fund portfolio companies are recorded in due from related parties on the condensed consolidated statements of financial condition, which is discussed further in note 14. Under the terms of the limited partnership agreements for certain funds, the management fee payable by the funds may be subject to a reduction based on a certain percentage of such advisory and transaction fees, net of applicable broken deal costs (“Management Fee Offset”). Advisory and transaction fees are presented net of the Management Fee Offset in the condensed consolidated statements of operations.

Underwriting fees, which are also included within advisory and transaction fees, net, include gains, losses and fees, arising from securities offerings in which one of the Company’s subsidiaries participates in the underwriter syndicate. Underwriting fees are recognized at a point in time when the underwriting is completed. Underwriting fees recognized but not received are recorded in other assets on the condensed consolidated statements of financial condition.

During the normal course of business, the Company incurs certain costs related to certain transactions that are not consummated (“broken deal costs”). These costs (e.g., research costs, due diligence costs, professional fees, legal fees and other related items) are determined to be broken deal costs upon management’s decision to no longer pursue the transaction. In accordance with the related fund agreement, in the event the deal is deemed broken, all of the costs are reimbursed by the funds and then included as a component of the calculation of the Management Fee Offset. If a deal is successfully completed, Apollo is reimbursed by the fund or fund’s portfolio company for all costs incurred and no offset is generated. As the Company acts as an agent for the funds it manages, any transaction costs incurred and paid by the Company on behalf of the respective funds relating to successful or broken deals are recorded net on the Company’s condensed consolidated statements of operations, and any receivable from the respective funds is recorded in due from related parties on the condensed consolidated statements of financial condition.

Investment Income

Investment Income

Investment income is comprised of performance allocations and principal investment income.

Performance Allocations

Performance allocations are a type of performance revenue (i.e., income earned based on the extent to which an entity’s performance exceeds predetermined thresholds). Performance allocations are generally structured from a legal standpoint as an allocation of capital in which the Company’s capital account receives allocations of the returns of an entity when those returns

exceed predetermined thresholds. The determination of which performance revenues are considered performance allocations is primarily based on the terms of an agreement with the entity.

The Company recognizes performance allocations within investment income along with the related principal investment income (as described further below) in the condensed consolidated statements of operations and within the investments line in the condensed consolidated statements of financial condition.

When applicable, the Company may record a general partner obligation to return previously distributed performance allocations. The general partner obligation is based upon an assumed liquidation of a fund’s net assets as of the reporting date and is reported within due to related parties on the condensed consolidated statements of financial condition. The actual determination and any required payment of any such general partner obligation would not take place until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund.

Principal Investment Income

Principal investment income includes the Company’s income or loss from equity method investments and certain other investments in entities in which the Company is generally eligible to receive performance allocations. Income from equity method investments includes the Company’s share of net income or loss generated from its investments, which are not consolidated, but in which the Company exerts significant influence.

Incentive Fees

Incentive Fees

Incentive fees are a type of performance revenue. Incentive fees differ from performance allocations in that incentive fees do not represent an allocation of capital but rather a contractual fee arrangement with the entity.

Incentive fees are considered a form of variable consideration as they are subject to clawback or reversal and therefore must be deferred until the fees are probable to not be significantly reversed. Accrued but unpaid incentive fees are reported within incentive fees receivable in the Company’s condensed consolidated statements of financial condition. The Company’s incentive fees primarily relate to the yield investing strategy and are generally received from CLOs, managed accounts and MFIC.

Salaries, Bonus and Benefits

Salaries, Bonus and Benefits

Salaries, bonus and benefits include base salaries, discretionary and non-discretionary bonuses, severance and employee benefits. Bonuses are generally accrued over the related service period.

Equity-Based Compensation

Equity-Based Compensation

Equity-based awards granted to employees and non-employees as compensation are measured based on the grant date fair value of the award. Equity-based awards that do not require future service (i.e., vested awards) are expensed immediately. Equity-based employee awards that require future service are expensed over the relevant service period. In addition, certain restricted share units (“RSUs”) granted by AGM vest based on both continued service and the Company’s receipt of performance revenues, within prescribed periods, sufficient to cover the associated equity-based compensation expense. In accordance with U.S. GAAP, equity-based compensation expense for such awards, if and when granted, will be recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable. The Company accounts for forfeitures of equity-based awards when they occur.

Profit Sharing

Profit Sharing

Profit sharing expense and profit sharing payable primarily consist of a portion of performance revenues earned from certain funds that are allocated to employees and former employees. Profit sharing amounts are recognized as the related performance revenues are earned. Accordingly, profit sharing amounts can be reversed during periods when there is a decline in performance revenues that were previously recognized.

Profit sharing amounts are generally not paid until the related performance revenue is distributed to the general partner upon realization of the fund’s investments. Under certain profit sharing arrangements, the Company requires that a portion of certain of the performance revenues distributed to its employees be used to purchase restricted common stock issued under AGM’s

Equity Plan. Prior to distribution of the performance revenue, the Company records the value of the equity-based awards expected to be granted in other assets and other liabilities within the condensed consolidated statements of financial condition. Such equity-based awards are recorded as equity-based compensation expense over the relevant service period once granted.

Additionally, profit sharing amounts previously distributed may be subject to clawback from employees and former employees. When applicable, the accrual for potential clawback of previously distributed profit sharing amounts, which is a component of due from related parties on the condensed consolidated statements of financial condition, represents all amounts previously distributed to employees and former employees that would need to be returned to the general partner if the Apollo funds were to be liquidated based on the fair value of the underlying funds’ investments as of the reporting date. The actual general partner receivable, however, would not become realized until the final disposition of a fund’s investments based on the contractual termination of the fund or as otherwise set forth in the respective limited partnership agreement or other governing document of the fund.

Profit sharing payable also includes contingent consideration obligations that were recognized in connection with certain Apollo acquisitions. Changes in the fair value of the contingent consideration obligations are reflected in the Company’s condensed consolidated statements of operations as profit sharing expense.

The Company has a performance-based incentive arrangement for certain Apollo partners and employees designed to more closely align compensation on an annual basis with the overall realized performance of the Company. This arrangement enables certain partners and employees to earn discretionary compensation based on performance revenue earned by the Company in a given year, which amounts are reflected in profit sharing expense in the accompanying condensed consolidated financial statements.

401(k) Savings Plan

401(k) Savings Plan

The Company sponsors a 401(k) savings plan (the “401(k) Plan”) whereby U.S.-based employees are entitled to participate in the 401(k) Plan based upon satisfying certain eligibility requirements. The Company matches 50% of eligible annual employee contributions up to 3% of the eligible employees’ annual compensation. Matching contributions vest after three years of service.

General, Administrative and Other

General, Administrative and OtherGeneral, administrative and other primarily includes professional fees, occupancy, depreciation and amortization, travel, information technology, administration expenses and placement fees.

Income Taxes

Income Taxes

The Company is a Delaware corporation and generally all of its income is subject to U.S. corporate income taxes. Certain entities within the legal entity structure of the Company operate as partnerships for U.S. income tax purposes and are subject to NYC UBT. Certain non-U.S. entities are also subject to non-U.S. corporate income taxes. The Company is included in the U.S. federal consolidated and certain state combined income tax returns with AGM and its other subsidiaries. For purposes of these separate company consolidated financial statements, the Company’s taxes were determined using the separate return method as if the Company had filed tax returns separate from AGM. As a result, the tax effects of certain activity and the tax treatment of certain transactions included in the condensed consolidated financial statements of AGM may not be the same in the Company’s separate company consolidated financial statements.

Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties. The Company’s tax positions are reviewed and evaluated quarterly to determine whether the Company has uncertain tax positions that require financial statement recognition. The Company recognizes the tax benefit of uncertain tax positions only where the position is “more likely than not” to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. If a tax position was not considered more likely than not to be sustained, then no benefits of the position would be recognized.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial statement carrying amount of assets and liabilities and their respective tax bases using currently enacted tax rates in the period the temporary difference is expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period during which the change is enacted. Deferred tax assets are reduced by a valuation

allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In determining the realizability of deferred tax assets, the Company evaluates all positive and negative evidence in addition to the ability to carry back losses, the timing of future reversals of taxable temporary differences, tax planning strategies and future expected earnings.

Non-Controlling Interests

Non-Controlling Interests

For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the condensed consolidated financial statements. Prior to the Corporate Recapitalization, the non-controlling interests relating to AGM included the ownership interest in the Apollo Operating Group held by Former Managing Partners and Contributing Partners through their limited partner interests in Holdings. Additionally, Athene held non-controlling interests in the Apollo Operating Group. Subsequent to the closing of the Mergers, Athene’s interest in the Apollo Operating Group was distributed to AGM. Non-controlling interests also include ownership interests in certain consolidated funds and VIEs.

Non-controlling interests are presented as a separate component of stockholders’ equity on the Company’s condensed consolidated statements of financial condition. The primary components of Non-controlling interests are separately presented in the Company’s condensed consolidated statements of changes in stockholders’ equity to clearly distinguish the interest in the Apollo Operating Group and other ownership interests in the consolidated entities. Net income includes the net income attributable to the holders of Non-controlling interests on the Company’s condensed consolidated statements of operations. Profits and losses are allocated to Non-controlling interests in proportion to their relative ownership interests regardless of their basis.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Fair Value Measurement — Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022-03)

In June 2022, the FASB issued clarifying guidance that a restriction which is a characteristic of the holding entity rather than a characteristic of the equity security itself should not be considered in its fair value measurement. As a result, the Company is required to measure the fair value of equity securities subject to contractual restrictions attributable to the holding entity on the basis of the market price of the same equity security without those contractual restrictions. Companies are not permitted to recognize a contractual sale restriction attributable to the holding entity as a separate unit of account. The guidance also requires disclosures for these equity securities.

The new guidance is mandatorily effective for the Company by January 1, 2024 with early adoption permitted. When adopted, the Company will apply the guidance on a prospective basis as an adjustment to current-period earnings with the adoption impact disclosed in the period of adoption.

The Company is currently evaluating the new guidance and its impact on the consolidated financial statements.

Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08)

In October 2021, the FASB issued guidance to add contract assets and contract liabilities from contracts with customers acquired in a business combination to the list of exceptions to the fair value recognition and measurement principles that apply to business combinations, and instead require them to be accounted for in accordance with revenue recognition guidance. The new guidance is mandatorily effective for the Company on January 1, 2023 and applied prospectively, with early adoption permitted. All entities except those that qualify as an investment company under Topic 946 are required to apply the amendments prospectively with any adjustments from adoption recorded in current period earnings and amounts disclosed.

The Company is currently evaluating the guidance and its impact on the consolidated financial statements.

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GOODWILL (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents Apollo’s goodwill by segment: 

	As of September 30, 2022		As of December 31, 2021
Asset Management	$	231,562	$	84,776
Principal Investing	32,182		32,182
Total Goodwill	$	263,744	$	116,958

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INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Summary of Investments

The following table presents Apollo’s investments: 

	As of September 30, 2022		As of December 31, 2021
Investments, at fair value	$	1,131,409	$	5,588,992
Equity method investments	1,085,035		1,345,750
Performance allocations	2,502,446		2,731,733
U.S. Treasury Securities, at fair value	1,372,048		1,687,105
Total Investments	$	6,090,938	$	11,353,580

Summary of Equity Method Investments

As such, the following tables present summarized financial information of Athene Holding:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Statements of Operations
Revenues	$	—	$	8,724	$	(269)	$	19,538
Benefits and expenses	—		8,004		2,504		16,689
Income (loss) before income taxes	—		720		(2,773)		2,849
Income tax expense (benefit)	—		(50)		(407)		196
Net income (loss)	—		770		(2,366)		2,653
Less: Net income (loss) attributable to non-controlling interests	—		37		(883)		(111)
Net income (loss) available to Athene Holding Ltd. shareholders	$	—	$	733	$	(1,483)	$	2,764
Less: Preferred stock dividends	—		35		35		106
Net income (loss) available to Athene Holding Ltd. common shareholders	$	—	$	698	$	(1,518)	$	2,658

Summary of Realized and Net Change in Unrealized Gains (Losses) on Investments, at Fair Value

Net Gains (Losses) from Investment Activities

The following table presents the realized and net change in unrealized gains reported in net gains (losses) from investment activities: 

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Realized gains (losses) on sales of investments, net	$	(984)	$	(197)	$	206,547	$	996
Net change in unrealized gains due to changes in fair value	(15,164)		172,995		694,621		1,438,347
Net gains (losses) from investment activities	$	(16,148)	$	172,798	$	901,168	$	1,439,343

Summary of Performance Allocation

Performance allocations receivable is recorded within investments in the condensed consolidated statements of financial condition. The table below provides a roll forward of the performance allocations balance:

	Total
Performance allocations, January 1, 2022	$	2,731,733
Change in fair value of funds	314,800
Fund distributions to the Company	(544,087)
Performance allocations, September 30, 2022	$	2,502,446

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PROFIT SHARING PAYABLE (Tables)

9 Months Ended

Sep. 30, 2022

Profit Sharing Payable [Abstract]

Rollforward Summary of Profit Sharing From Private Equity, Credit, and Real Estate Funds

The table below provides a roll forward of the profit sharing payable balance:

	Total
Profit sharing payable, January 1, 2022	$	1,444,652
Profit sharing expense	366,812
Payments/other	(313,684)
Profit sharing payable, September 30, 2022	$	1,497,780

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VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Gain on Investments of Variable Interest Entities

The following table presents net gains from investment activities of the consolidated VIEs:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022		(1)	2021		(1)	2022		(1)	2021		(1)
Net gains from investment activities	$	7,740		$	104,885		$	105,091		$	460,459
Net gains (losses) from debt	—			(4,210)			10,138			(15,737)
Interest and other income	13,971			162,815			218,596			525,573
Interest and other expenses	(10,324)			(121,035)			(6,366)			(569,843)
Net gains from investment activities of consolidated variable interest entities	$	11,387		$	142,455		$	327,459		$	400,452
(1) Amounts reflect consolidation eliminations.

Principal Provisions of Debt

The following table summarizes the principal provisions of those amounts.

	As of September 30, 2022					As of December 31, 2021
	Principal Outstanding		Weighted Average Interest Rate		Weighted Average Remaining Maturity in Years	Principal Outstanding		Weighted Average Interest Rate			Weighted Average Remaining Maturity in Years
Senior Secured Notes(2)	$	—	N/A		N/A	$	7,431,467	3.16	%		15.5
Subordinated Notes(2)	—		N/A		N/A	613,192		N/A		(1)	14.5
Subscription Lines(2)	651,491		4.87	%	0.14	—		N/A			N/A
Secured Borrowings(2)(3)	—		N/A		N/A	18,149		2.33	%		0.4
Total	$	651,491				$	8,062,808
(1) The principal outstanding balance of the subordinated notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the VIEs.
(2) The notes, subscription lines and borrowings of the consolidated VIEs are collateralized by assets held by each respective vehicle and assets of one vehicle may not be used to satisfy the liabilities of another vehicle.
(3) As of December 31, 2021, secured borrowings consist of consolidated VIEs’ obligations through a repurchase agreement redeemable at maturity with third party lenders. The fair value of the secured borrowings as of December 31, 2021 approximates principal outstanding due to the short term nature of the borrowings. These secured borrowings are classified as a Level III liability within the fair value hierarchy.

Carrying Amounts of Assets and Liabilities

The following table presents the maximum exposure to losses relating to these VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary.

	As of September 30, 2022		(2)	As of December 31, 2021		(2)
Apollo Exposure(1)	$	287,976		$	240,871
(1) Represents Apollo’s direct investment in those entities in which Apollo holds a significant variable interest and certain other investments. Additionally, cumulative performance allocations are subject to reversal in the event of future losses, as discussed in note 15.
(2) Some amounts included are a quarter in arrears.

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FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Valuation of the Financial Assets and Liabilities by the Fair Value Hierarchy

The following tables summarize the Company’s financial assets and financial liabilities recorded at fair value by fair value hierarchy level:

	As of September 30, 2022
	Level I		Level II		Level III			NAV		Total
Assets
Cash and cash equivalents(1)	$	1,118,305	$	—	$	—		$	—	$	1,118,305
Restricted cash and cash equivalents(2)	696,712		—		—			—		696,712
Cash and cash equivalents of VIEs	84,132		—		—			—		84,132
U.S. Treasury securities(3)	1,372,048		—		—			—		1,372,048
Investments, at fair value	147,061		35,615		939,742		(4)	8,991		1,131,409
Investments of VIEs, at fair value	17,185		1,412		935,396			62,826		1,016,819
Due from related parties(5)	—		—		41,911			—		41,911
Derivative assets(6)	—		40,806		7,891			—		48,697
Total Assets	$	3,435,443	$	77,833	$	1,924,940		$	71,817	$	5,510,033
Liabilities
Other liabilities of VIEs, at fair value	—		2,032		—			—		2,032
Contingent consideration obligations(7)	—		—		103,002			—		103,002
Other liabilities(8)	1,518		—		—			—		1,518
Total Liabilities	$	1,518	$	2,032	$	103,002		$	—	$	106,552

	As of December 31, 2021
	Level I		Level II		Level III			NAV		Total
Assets
Cash and cash equivalents(1)	$	917,183	$	—	$	—		$	—	$	917,183
Restricted cash and cash equivalents(2)	707,885		—		—			—		707,885
Cash and cash equivalents of VIEs	463,266		—		—			—		463,266
U.S. Treasury securities(3)	1,687,105		—		—			—		1,687,105
Investments
Investment in Athene Holding	4,548,048		—		—			—		4,548,048
Other investments	48,493		46,267		946,184		(4)	—		1,040,944
Total investments	4,596,541		46,267		946,184			—		5,588,992
Investments of VIEs, at fair value	6,232		1,055,421		13,187,803			487,595		14,737,051
Due from related parties(5)	—		—		47,835			—		47,835
Derivative assets(6)	—		7,436		—			—		7,436
Total Assets	$	8,378,212	$	1,109,124	$	14,181,822		$	487,595	$	24,156,753
Liabilities
Debt of VIEs, at fair value	$	—	$	446,029	$	7,496,479		$	—	$	7,942,508
Other liabilities of VIEs, at fair value	—		3,111		31,090			557		34,758
Contingent consideration obligations(7)	—		—		125,901			—		125,901
Other liabilities(8)	47,961		—		—			—		47,961
Derivative liabilities(6)	—		1,520		—			—		1,520
Total Liabilities	$	47,961	$	450,660	$	7,653,470		$	557	$	8,152,648
(1) Cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $0.6 million and $1.8 million, respectively, of cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information.
(2) Restricted cash and cash equivalents as of September 30, 2022 and December 31, 2021 includes $694.6 million and $690.2 million, respectively, of restricted cash and cash equivalents held by consolidated SPACs. Refer to note 14 for further information.
(3) U.S. Treasury securities as of September 30, 2022 and December 31, 2021 includes $347.2 million and $1.2 billion, respectively, of U.S. Treasury securities held by consolidated SPACs. Refer to note 14 for further information.
(4) Investments as of September 30, 2022 and December 31, 2021 excludes $178.1 million and $175.8 million, respectively, of performance allocations classified as Level III related to certain investments for which the Company has elected the fair value option. The Company’s policy is to account for performance allocations as investments.
(5) Due from related parties represents a receivable from a fund.
(6) Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the condensed consolidated statements of financial condition.
(7) Profit sharing payable includes contingent obligations classified as Level III.
(8) Other liabilities as of September 30, 2022 includes the publicly traded warrants of APSG II. Other liabilities as of December 31, 2021 includes the publicly traded warrants of APSG I and APSG II.

Changes in Fair Value in Financial Assets, Measured at Fair Value and Characterized as Level III Investments

The following tables summarize the changes in fair value in financial assets measured at fair value for which Level III inputs have been used to determine fair value:

	For the Three Months Ended September 30, 2022
	Investments and Derivative Assets		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	1,079,778	$	843,266	$	1,923,044
Purchases	10,115		973,126		983,241
Sales of investments/distributions	(116,986)		(863,413)		(980,399)
Net realized gains (losses)	51,653		(1,296)		50,357
Changes in net unrealized gains (losses)	(35,848)		(16,287)		(52,135)
Cumulative translation adjustment	(41,079)		—		(41,079)
Balance, End of Period	$	947,633	$	935,396	$	1,883,029
Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date	$	11,894	$	—	$	11,894
Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		(2,169)		(2,169)

	For the Three Months Ended September 30, 2021
	Other Investments		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	389,787	$	11,877,952	$	12,267,739
Transfer out due to deconsolidation	—		(924)		(924)
Purchases	204,587		284,605		489,192
Sale of investments/distributions	—		(344,659)		(344,659)
Net realized gains (losses)	16,488		16,616		33,104
Changes in net unrealized gains (losses)	19,766		79,212		98,978
Cumulative translation adjustment	(1,873)		(10,166)		(12,039)
Transfer into Level III(1)	—		31,444		31,444
Transfer out of Level III(1)	(2,422)		(194,955)		(197,377)
Balance, End of Period	$	626,333	$	11,739,125	$	12,365,458
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	19,766	$	—	$	19,766
Change in net unrealized gains included in net gains (losses) from investment activities of consolidated VIEs related to investments still held at reporting date	—		79,514		79,514
(1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from external pricing services.

	For the Nine Months Ended September 30, 2022
	Investments and Derivative Assets		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	946,184	$	13,187,803	$	14,133,987
Net transfer in (out) due to consolidation (deconsolidation)	21,710		(14,190,236)		(14,168,526)
Purchases	115,817		4,444,308		4,560,125
Sale of investments/distributions	(121,118)		(2,702,495)		(2,823,613)
Net realized gains (losses)	48,687		19,861		68,548
Changes in net unrealized gains (losses)	23,240		160,094		183,334
Cumulative translation adjustment	(87,891)		(10,808)		(98,699)
Transfer into Level III(1)	1,004		29,803		30,807
Transfer out of Level III(1)	—		(2,934)		(2,934)
Balance, End of Period	$	947,633	$	935,396	$	1,883,029
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	72,254	$	—	$	72,254
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		6,613		6,613

	For the Nine Months Ended September 30, 2021
	Other Investments		Investments of Consolidated VIEs		Total
Balance, Beginning of Period	$	369,772	$	10,962,980	$	11,332,752
Transfer out due to consolidation	—		(230,641)		(230,641)
Purchases	204,587		1,967,028		2,171,615
Sale of investments/distributions	(3,235)		(1,150,592)		(1,153,827)
Net realized gains (losses)	17,556		29,591		47,147
Changes in net unrealized gains (losses)	48,882		411,359		460,241
Cumulative translation adjustment	(9,513)		(24,414)		(33,927)
Transfer into Level III(1)	706		41,329		42,035
Transfer out of Level III(1)	(2,422)		(267,515)		(269,937)
Balance, End of Period	$	626,333	$	11,739,125	$	12,365,458
Change in net unrealized gains included in investment income (loss) related to investments still held at reporting date	$	48,882	$	—	$	48,882
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date	—		278,471		278,471
(1) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from external pricing services.

Changes in Fair Value in Financial Liabilities, Measured at Fair Value and Characterized as Level III Liabilities

The following tables summarize the changes in fair value in financial liabilities measured at fair value for which Level III inputs have been used to determine fair value:

	For the Three Months Ended September 30, 2022
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	104,202	$	—	$	104,202
Changes in net unrealized (gains) losses(1)	(1,200)		—		(1,200)
Balance, End of Period	$	103,002	$	—	$	103,002

	For the Three Months Ended September 30, 2021
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	128,984	$	7,206,174	$	7,335,158
Issuances	—		15,980		15,980
Repayments	(7,495)		(29,510)		(37,005)
Net realized (gains) losses	—		(1,681)		(1,681)
Changes in net unrealized (gains) losses(1)	(1,902)		13,859		11,957
Cumulative translation adjustment	—		(10,293)		(10,293)
Transfers into Level III (2)	—		256		256
Balance, End of Period	$	119,587	$	7,194,785	$	7,314,372
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date	$	—	$	4,672	$	4,672

	For the Nine Months Ended September 30, 2022
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	125,901	$	7,527,569	$	7,653,470
Transfer out due to deconsolidation	—		(8,626,153)		(8,626,153)
Issuances	—		1,645,025		1,645,025
Payments	(13,259)		(518,773)		(532,032)
Net realized (gains) losses	—		(480)		(480)
Changes in net unrealized (gains) losses(1)	(9,640)		(16,368)		(26,008)
Cumulative translation adjustment	—		(10,820)		(10,820)
Balance, End of Period	$	103,002	$	—	$	103,002

	For the Nine Months Ended September 30, 2021
	Contingent Consideration Obligations		Debt and Other Liabilities of Consolidated VIEs		Total
Balance, Beginning of Period	$	119,788	$	7,100,620	$	7,220,408
Issuances	—		327,388		327,388
Payments	(20,609)		(301,414)		(322,023)
Net realized (gains) losses	—		9,049		9,049
Changes in net unrealized (gains) losses(1)	20,408		83,005		103,413
Cumulative translation adjustment	—		(24,316)		(24,316)
Transfers into Level III (2)	—		453		453
Balance, End of Period	$	119,587	$	7,194,785	$	7,314,372
Change in net unrealized gains included in net gains from investment activities of consolidated VIEs related to debt and other liabilities still held at reporting date	$	—	$	93,743	$	93,743
(1) Changes in fair value of contingent consideration obligations are recorded in profit sharing expense in the condensed consolidated statements of operations.
(2) Transfers between Level II and III were a result of subjecting the broker quotes on these financial assets to various criteria which include the number and quality of broker quotes, the standard deviation of obtained broker quotes and the percentage deviation from independent pricing services.

Quantitative Inputs and Assumptions used for Financial Assets and Liabilities Categorized in Level III

The following tables summarize the quantitative inputs and assumptions used for financial assets and liabilities categorized as Level III under the fair value hierarchy:

	As of September 30, 2022
	Fair Value		Valuation Techniques	Unobservable Inputs	Ranges	Weighted Average (1)
Financial Assets
Investments	$	512,207	Embedded value	N/A	N/A	N/A
	121,666		Discounted cash flow	Discount rate	8.9% - 52.8%	29.4%
	305,869		Adjusted transaction value	N/A	N/A	N/A
Due from related parties	41,911		Discounted cash flow	Discount rate	15.0%	15.0%
Derivative assets	7,891		Option model	Volatility rate	38.8% - 40.0%	39.7%
Investments of consolidated VIEs:
Bank loans	491,893		Adjusted transaction value	N/A	N/A	N/A
			Discounted cash flow	Discount rate	7.1% - 32.7%	7.6%
Equity securities	411,320		Dividend discount model	Discount rate	13.9%	13.9%
Bonds	32,035		Discounted cash flow	Discount rate	7.9%	7.9%
			Adjusted transaction value	N/A	N/A	N/A
Warrants	148		Discounted cash flow	Discount rate	15.4%	15.4%
Total Financial Assets	$	1,924,940
Financial Liabilities
Contingent Consideration Obligation	103,002		Discounted cash flow	Discount rate	19.0%	19.0%
Total Financial Liabilities	$	103,002

	As of December 31, 2021
	Fair Value		Valuation Techniques	Unobservable Inputs	Ranges	Weighted Average (1)
Financial Assets
Other investments	$	516,221	Embedded value	N/A	N/A	N/A
	169,625		Discounted cash flow	Discount rate	14.0% - 52.8%	26.4%
	260,338		Adjusted transaction value	N/A	N/A	N/A
Due from related parties	47,835		Discounted cash flow	Discount rate	16.0%	16.0%
Investments of consolidated VIEs:
Equity securities	4,144,661		Discounted cash flow	Discount rate	3.0% - 19.0%	10.4%
			Dividend discount model	Discount rate	13.7%	13.7%
			Market comparable companies	NTAV multiple	1.25x	1.25x
			Adjusted transaction value	Purchase multiple	1.25x	1.25x
			Adjusted transaction value	N/A	N/A	N/A
Bank loans	4,569,873		Discounted cash flow	Discount rate	1.8% - 15.6%	4.3%
			Adjusted transaction value	N/A	N/A	N/A
Profit participating notes	2,849,150		Discounted cash flow	Discount rate	8.7% - 12.5%	12.4%
			Adjusted transaction value	N/A	N/A	N/A
Real estate	511,648		Discounted cash flow	Capitalization rate	4.0% - 5.8%	5.3%
			Discounted cash flow	Discount rate	5.0% - 12.5%	7.3%
			Discounted cash flow	Terminal capitalization rate	8.3%	8.3%
			Direct capitalization	Capitalization rate	5.5% - 8.5%	6.2%
			Direct capitalization	Terminal capitalization rate	6.0% - 12.0%	6.9%
Bonds	50,885		Discounted cash flow	Discount rate	4.0% - 7.0%	6.1%
			Third party pricing	N/A	N/A	N/A
Other equity investments	1,061,586		Discounted cash flow	Discount rate	11.8% -12.5%	12.1%
			Adjusted transaction value	N/A	N/A	N/A
Total Investments of Consolidated VIEs	13,187,803
Total Financial Assets	$	14,181,822
Financial Liabilities
Liabilities of Consolidated VIEs:
Secured loans	$	4,311,348	Discounted cash flow	Discount rate	1.4% - 10.0%	2.8%
Subordinated notes	3,164,491		Discounted cash flow	Discount rate	4.5% - 11.9%	5.8%
Participating equity	20,640		Discounted cash flow	Discount rate	15.0%	15.0%
Other liabilities	31,090		Discounted cash flow	Discount rate	3.7% - 9.3%	6.3%
Total Liabilities of Consolidated VIEs	7,527,569
Contingent Consideration Obligation	125,901		Discounted cash flow	Discount rate	18.5%	18.5%
Total Financial Liabilities	$	7,653,470

N/A        Not applicable

EBITDA        Earnings before interest, taxes, depreciation, and amortization

NTAV        Net tangible asset value

(1)      Unobservable inputs were weighted based on the fair value of the investments included in the range.

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OTHER ASSETS (Tables)

9 Months Ended

Sep. 30, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

Other assets consisted of the following:

	As of September 30, 2022		As of December 31, 2021
Fixed assets	$	403,095	$	256,252
Less: Accumulated depreciation and amortization	(148,699)		(130,072)
Fixed assets, net	254,396		126,180
Deferred equity-based compensation(1)	240,759		282,900
Intangible assets, net(2)	185,146		14,846
Commitment asset(3)	154,563		—
Prepaid expenses	60,486		57,765
Tax receivables	55,040		30,334
Other	134,031		73,876
Total Other Assets	$	1,084,421	$	585,901
(1) Deferred equity-based compensation relates to the value of equity-based awards that have been or are expected to be granted in connection with the settlement of certain profit sharing arrangements. A corresponding amount for awards expected to be granted of $181.1 million and $210.6 million, as of September 30, 2022 and December 31, 2021, respectively, is included in other liabilities on the condensed consolidated statements of financial condition.
(2) Includes intangible assets from the acquisition of Griffin Capital's U.S. asset management business.
(3) Represents a commitment from an institutional investor as part of a strategic transaction.

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LEASES (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Lease Expense, Supplemental Cash Flow Information and Maturities of Lease Liabilities

The table below presents operating lease expenses recorded in general, administrative and other in the condensed consolidated statements of operations.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease cost	$	18,002	$	10,916	$	51,283	$	33,930

The following table presents supplemental cash flow information related to operating leases:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Operating cash flows for operating leases	$	14,285	$	10,971	$	32,851	$	23,465

Supplemental information related to leases is as follows:

	As of September 30, 2022		As of September 30, 2021
Weighted average remaining lease term (in years)	12.5		13.3
Weighted average discount rate	2.7	%	2.9	%

Lease Payments by Maturity

As of September 30, 2022, the Company’s total lease payments by maturity are presented in the following table:

	Operating Lease Payments
Remaining 2022	$	15,523
2023	67,832
2024	67,981
2025	67,244
2026	62,739
Thereafter	511,882
Total lease payments	$	793,201
Less imputed interest	(124,120)
Present value of lease payments	$	669,081

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INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Impact to the Deferred Tax Asset, Tax Receivable Agreement Liability and Additional Paid in Capital

After the Mergers, the Managing Partners and Contributing Partners no longer own AOG Units. Therefore, there were no new exchanges subject to the tax receivable agreement during the nine months ended September 30, 2022. The table below presents the impact to the deferred tax asset, tax receivable agreement liability and additional paid in capital related to the exchange of AOG Units for Class A shares for the nine months ended September 30, 2021.

Exchange of AOG Units for Class A shares	Increase in Deferred Tax Asset		Increase in Tax Receivable Agreement Liability		Increase to Additional Paid In Capital
For the Nine Months Ended September 30, 2021	$	292,844	$	243,157	$	49,687

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DEBT (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Summary of Debt

Debt consisted of the following:

		As of September 30, 2022					As of December 31, 2021
	Maturity Date	Outstanding Balance		Fair Value			Outstanding Balance		Fair Value
4.00% 2024 Senior Notes(1)(2)	May 30, 2024	$	498,959	$	486,201	(4)	$	498,469	$	530,052	(4)
4.40% 2026 Senior Notes(1)(2)	May 27, 2026	498,114		474,335		(4)	497,730		553,055		(4)
4.87% 2029 Senior Notes(1)(2)	February 15, 2029	674,809		629,825		(4)	674,786		777,703		(4)
2.65% 2030 Senior Notes(1)(2)	June 5, 2030	495,375		395,079		(4)	494,928		506,094		(4)
4.77% 2039 Senior Secured Guaranteed Notes(1)(2)		—		—		(6)	317,985		369,041		(5)
5.00% 2048 Senior Notes(1)(2)	March 15, 2048	296,899		263,572		(4)	296,757		397,191		(4)
4.95% 2050 Subordinated Notes(1)(2)	January 14, 2050	296,714		256,913		(4)	296,675		308,687		(4)
1.70% Secured Borrowing II(1)	April 15, 2032	16,663		15,708		(3)	19,334		19,239		(3)
1.30% 2016 AMI Term Facility I(1)	January 15, 2025	16,536		16,536		(3)	19,186		19,186		(3)
1.40% 2016 AMI Term Facility II(1)	July 23, 2023	15,986		15,986		(3)	18,546		18,546		(3)
Total Debt		$	2,810,055	$	2,554,155		$	3,134,396	$	3,498,794
(1) Interest rate is calculated as weighted average annualized.
(2) Includes amortization of note discount, as applicable, totaling $16.3 million and $25.1 million as of September 30, 2022 and December 31, 2021, respectively. Outstanding balance is presented net of unamortized debt issuance costs.
(3) Fair value is based on obtained broker quotes. These notes are classified as a Level III liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from external pricing services. For instances where broker quotes are not available, a discounted cash flow method is used to obtain a fair value.
(4) Fair value is based on obtained broker quotes. These notes are classified as a Level II liability within the fair value hierarchy based on the number and quality of broker quotes obtained, the standard deviations of the observed broker quotes and the percentage deviation from external pricing services.
(5) Fair value is based on a discounted cash flow method. These notes are classified as a Level III liability within the fair value hierarchy.
(6) There is no outstanding balance as of September 30, 2022. These notes were transferred to a VIE consolidated by Athene during the three months ended March 31, 2022.

Schedule of Credit Facilities

The following table represents the Company’s credit facilities as of September 30, 2022:

Instrument/Facility	Borrowing Date	Maturity Date	Administrative Agent	Key terms
AMH credit facility1	November 23, 2020	November 23, 2025	Citibank, N.A.	The commitment fee on the $750 million undrawn AMH credit facility as of September 30, 2022 was 0.09%.
1 Refer below for details regarding the AMH credit facility refinancing, which occurred during the fourth quarter of 2022.

Schedule of Interest Expense

The following table presents the interest expense incurred related to the Company’s debt:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Total Interest Expense(1)	$	32,219	$	34,820	$	96,644	$	104,433
(1) Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable.

The following table presents the revenues earned in aggregate from Athene and Athora:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues earned in aggregate from Athene and Athora, net(1)	$	341,888	$	284,254	$	959,261	$	828,045

(1)    Consisting of management fees, sub-advisory fees, and performance revenues from Athene and Athora, as applicable.

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EQUITY (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Net Income (Loss) Attributable to Non-Controlling Interests

The table below presents equity interests in Apollo’s consolidated, but not wholly-owned, subsidiaries and funds. Net income and comprehensive income attributable to non-controlling interests consisted of the following: 

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
Net income attributable to non-controlling interests in consolidated entities:
Interest in management companies and a co-investment vehicle(1)	$	267		$	1,866		$	3,157		$	4,464
Other consolidated entities	17,528			110,703			273,827			294,959
Net income attributable to non-controlling interests in consolidated entities	$	17,795		$	112,569		$	276,984		$	299,423
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net income	$	85,352		$	631,417		$	1,551,194		$	3,655,380
Net income attributable to non-controlling interests in consolidated entities	(17,795)			(112,569)			(276,984)			(299,423)
Net income after non-controlling interests in consolidated entities	67,557			518,848			1,274,210			3,355,957
Adjustments:
Income tax provision(2)	22,069			101,434			163,870			498,731
NYC UBT and foreign tax benefit(3)	(19,083)			(11,213)			(36,414)			(24,694)
Net income in non-Apollo Operating Group entities	9,414			1,099			30,845			1,103
Series A Preferred share dividends	(4,383)			(4,382)			(13,149)			(13,148)
Series B Preferred share dividends	(4,781)			(4,782)			(14,344)			(14,344)
Total adjustments	3,236			82,156			130,808			447,648
Net income after adjustments	70,793			601,004			1,405,018			3,803,605
Weighted average ownership percentage of Apollo Operating Group	42.6		%	44.1		%	42.6		%	45.8		%
Net income attributable to non-controlling interests in Apollo Operating Group	$	44,127		$	260,526		$	585,691		$	1,761,018
Net income attributable to non-controlling interests	$	61,922		$	373,095		$	862,675		$	2,060,441
Other comprehensive loss attributable to non-controlling interests	(32,280)			(10,082)			(66,133)			(20,275)
Comprehensive income attributable to non-controlling interests	$	29,642		$	363,013		$	796,542		$	2,040,166
(1) Reflects the remaining interest held by certain individuals who receive an allocation of income from certain of the credit funds managed by Apollo.
(2) Reflects all taxes recorded in our condensed consolidated statements of operations. Of this amount, U.S. federal, state, and local corporate income taxes attributable to AAM and its subsidiaries are added back to income of the Apollo Operating Group before calculating non-controlling interests as the income allocable to the Apollo Operating Group is not subject to such taxes.
(3) Reflects NYC UBT and foreign taxes that are attributable to the Apollo Operating Group and its subsidiaries related to its operations in the U.S. as partnerships and in non-U.S. jurisdictions as corporations. As such, these amounts are considered in the income attributable to the Apollo Operating Group.

Activities Associated with Non-controlling Interests

The table below presents the activities associated with the redeemable non-controlling interests.

	For the Nine Months Ended September 30,
	2022		2021
Balance at beginning of period	$	1,770,034	$	782,702
Redemption of non-controlling interests	(776,272)		—
Deconsolidation of SPAC	(39,588)		—
Net issuances of redeemable non-controlling interests	10,544		907,590
Accretion of redeemable non-controlling interests	58,989		59,762
Balance at end of period	$	1,023,707	$	1,750,054

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES (Tables)

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

Due from related parties and due to related parties are comprised of the following:

	As of September 30, 2022		As of December 31, 2021
Due from Related Parties:
Due from funds(1)	$	484,498	$	315,875
Due from employees and former employees	94,139		106,755
Due from portfolio companies	61,493		66,960
Due from parent	37,483		—
Incentive fees receivable	10,074		4,236
Total Due from Related Parties	$	687,687	$	493,826
Due to Related Parties:
Due to Former Managing Partners and Contributing Partners(2)	$	906,157	$	1,118,272
Due to parent	657,941		—
Due to funds	116,915		104,130
Total Due to Related Parties	$	1,681,013	$	1,222,402
(1) Includes $41.9 million and $47.8 million as of September 30, 2022 and December 31, 2021, respectively, related to a receivable from a fund in connection with the Company’s sale of a platform investment to such fund. The amount is payable to the Company over five years and is held at fair value.
(2) Includes $394.4 million and $569.6 million as of September 30, 2022 and December 31, 2021, respectively, related to the purchase of limited partnership interests, payable in equal installments through December 31, 2024.

Sub-Allocation Fees Schedule

The amended fee agreement provides for a monthly fee to be payable by Athene to the Company in arrears, with retroactive effect to the month beginning on January 1, 2022, in an amount equal to the following, to the extent not otherwise payable to the Company pursuant to any one or more investment management or sub-advisory agreements or arrangements:

(i)    The Company, through its consolidated subsidiary Apollo Insurance Solutions Group LP, or ISG, earns a base management fee of 0.225% per year on the aggregate book value of substantially all of the assets in substantially all of the accounts of or relating to Athene (collectively, the “Athene Accounts”) up to $103.4 billion (the “Backbook Value”) and 0.150% per year on all assets in excess of $103.4 billion (the “Incremental Value”), respectively; plus

(ii)    with respect to each asset in an Athene Account, subject to certain exceptions, that is managed by the Company and that belongs to a specified asset class tier (“core,” “core plus,” “yield,” and “high alpha”), a sub-allocation fee as follows:

	As of September 30, 2022
Sub-Allocation Fees:
Core Assets(1)	0.065	%
Core Plus Assets(2)	0.130	%
Yield Assets(3)	0.375	%
High Alpha Assets(4)	0.700	%
Other Assets (5)	—	%

(1)Core assets include public investment grade corporate bonds, municipal securities, agency residential or commercial mortgage backed securities and obligations of any governmental agency or government sponsored entity that is not expressly backed by the U.S. government.

(2)Core plus assets include private investment grade corporate bonds, fixed rate first lien commercial mortgage loans and obligations issued or assumed by a financial institution (such an institution, a “financial issuer”) and determined by Apollo to be “Tier 2 Capital” under the Basel III recommendations developed by the Basel Committee on Banking Supervision (or any successor to such recommendations).

(3)Yield assets include non-agency residential mortgage-backed securities, investment grade collateralized loan obligations, certain asset-backed securities, commercial mortgage-backed securities, emerging market investments, below investment grade corporate bonds, subordinated debt obligations, hybrid securities or surplus notes issued or assumed by a financial issuer, as rated preferred equity, residential mortgage loans, bank loans, investment grade infrastructure debt and certain floating rate commercial mortgage loans.

(4)High alpha assets include subordinated commercial mortgage loans, below investment grade collateralized loan obligations, unrated preferred equity, debt obligations originated by MidCap, below investment grade infrastructure debt, certain loans originated directly by Apollo and agency mortgage derivatives.

(5)Other Assets include cash, treasuries, equities and alternatives. With respect to equities and alternatives, Apollo earns performance revenues of 0% to 20%.

Interest Income and Interest Expense

The following table presents the interest expense incurred related to the Company’s debt:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Total Interest Expense(1)	$	32,219	$	34,820	$	96,644	$	104,433
(1) Debt issuance costs incurred are amortized into interest expense over the term of the debt arrangement, as applicable.

The following table presents the revenues earned in aggregate from Athene and Athora:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues earned in aggregate from Athene and Athora, net(1)	$	341,888	$	284,254	$	959,261	$	828,045

(1)    Consisting of management fees, sub-advisory fees, and performance revenues from Athene and Athora, as applicable.

Schedule of Financial Information of SPACs

The tables below present the financial information of these SPACs in aggregate:

	As of September 30, 2022		As of December 31, 2021
Assets:
Cash and cash equivalents	$	579	$	1,796
Restricted cash and cash equivalents	694,582		690,205
U.S. Treasury securities, at fair value	347,170		1,162,299
Other assets	926		2,627
Total Assets	$	1,043,257	$	1,856,927
Liabilities, Redeemable non-controlling interests and Stockholders’ Equity
Liabilities:
Accounts payable and accrued expenses	$	3,250	$	2,361
Due to related parties	8,300		20,146
Other liabilities	41,519		143,778
Total Liabilities	53,069		166,285
Redeemable non-controlling interests:
Redeemable non-controlling interests	1,008,679		1,762,282
Stockholders’ Equity:
Additional paid in capital	(63,909)		(98,369)
Retained earnings	45,418		26,729
Total Stockholders’ Equity	(18,491)		(71,640)
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity	$	1,043,257	$	1,856,927

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Expenses:
Interest expense	$	7	$	3	$	16	5
General, administrative and other	685		3,824		6,426		13,369
Total Expenses	692		3,827		6,442		13,374
Other Income:
Net gains from investment activities	3,513		29,185		20,297		27,684
Interest income	4,949		131		6,710		392
Other income (loss), net	(100)		(146)		(300)		(370)
Total Other Income	8,362		29,170		26,707		27,706
Income before income tax provision	7,670		25,343		20,265		14,332
Income tax provision	(179)		—		(179)		—
Net Income Attributable to Apollo Asset Management, Inc.	7,491		25,343		20,086		14,332

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Summary of Fixed and Determinable Payments

As of September 30, 2022, fixed and determinable payments due in connection with these obligations were as follows:

	Remaining 2022		2023 - 2024		2025 - 2026		2027 and Thereafter		Total
Other long-term obligations	$	15,966	$	17,403	$	249	$	—	$	33,618

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SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Financial Data for Reportable Segments

The following tables present financial data for the Company’s reportable segments.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Asset Management
Management Fees	$	545,924	$	472,483	$	1,573,197	$	1,395,200
Advisory and transaction fees, net	104,532		65,077		271,781		203,807
Fee-related performance fees	19,989		19,856		45,866		36,702
Fee related compensation	(193,793)		(160,689)		(556,389)		(476,663)
Other operating expenses	(112,005)		(76,601)		(318,716)		(218,316)
Fee Related Earnings (FRE)	364,647		320,126		1,015,739		940,730
Principal Investing
Realized performance fees	92,993		608,130		371,044		1,183,640
Realized investment income	61,410		295,225		537,776		397,610
Principal investing compensation	(87,580)		(309,016)		(398,566)		(631,382)
Other operating expenses	(7,214)		(12,014)		(19,250)		(34,149)
Principal Investing Income (PII)	59,609		582,325		491,004		915,719
Adjusted Segment Income	424,256		902,451		1,506,743		1,856,449
Segment Assets:
Asset Management					$	1,936,252
Principal Investing					8,379,698
Total Assets(1)					$	10,315,950
(1) Refer below for a reconciliation of total assets for Apollo’s total reportable segments to total consolidated assets.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table presents the reconciliation of income before income tax provision reported in the condensed consolidated statements of operations to Adjusted Segment Income:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Income before income tax provision	$	107,421	$	732,851	$	1,715,064	$	4,154,111
Equity-based profit sharing expense and other(1)	55,728		31,731		219,454		93,595
Equity-based compensation	45,183		19,538		138,584		55,187
Transaction-related charges(2)	8,028		(954)		5,928		27,028
Merger-related transaction and integration costs(3)	12,150		14,647		48,637		38,331
(Gains) losses from changes in tax receivable agreement liability	—		—		14,184		(1,941)
Net income attributable to non-controlling interests in consolidated entities	(17,795)		(112,569)		(276,984)		(299,423)
Unrealized performance fees	66,202		159,044		109,083		(1,411,205)
Unrealized profit sharing expense	(18,609)		(40,991)		(15,909)		646,142
Net interest expense	21,236		32,552		78,007		100,365
Unrealized principal investment income (loss)	127,488		218,816		137,784		(153,577)
Unrealized net (gains) losses from investment activities and other	17,224		(152,214)		(667,089)		(1,392,164)
Adjusted Segment Income	$	424,256	$	902,451	$	1,506,743	$	1,856,449
(1) Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are required to be used by employees of Apollo to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under AGM’s Equity Plan. Equity-based profit sharing expense and other also includes performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense.
(2) Transaction-related charges include contingent consideration, equity-based compensation charges and the amortization of intangible assets and certain other charges associated with acquisitions, and restructuring charges.
(3) Merger-related transaction and integration costs includes advisory services, technology integration, equity-based compensation charges and other costs associated with the Mergers.

Reconciliation of Assets from Segment to Consolidated

The following table presents the reconciliation of the Company’s total reportable segment assets to total assets:

	As of September 30, 2022		As of December 31, 2021
Total reportable segment assets	$	10,315,950	$	13,573,400
Adjustments(1)	2,002,132		16,928,494
Total assets	$	12,318,082	$	30,501,894
(1) Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments.

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ORGANIZATION (Details)		9 Months Ended
	Jan. 01, 2022 vote	Sep. 30, 2022 investing_strategy segment
Entity Information [Line Items]
Number of segments | segment		2
Number of investing strategies | investing_strategy		3
Number of votes | vote	1
Intermediate Holding Companies
Entity Information [Line Items]
Economic interest percentage		57.40%
Apollo Global Management
Entity Information [Line Items]
Economic interest percentage		42.60%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (Details) $ in Millions	Sep. 30, 2022 USD ($)
Initial Business Combination Or Redemption Of Public Shares, ASPG II Trust Agreement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash	$ 694.5

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - U.S. Treasury Securities, at Fair Value (Details) $ in Millions	Sep. 30, 2022 USD ($)
U.S. Treasury securities, at fair value | Acropolis Infrastructure Acquisition Corp
Debt and Equity Securities, FV-NI [Line Items]
Restricted securities	$ 347.2

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Revenue (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Accounting Policies [Abstract]
Deferred revenue recognized	$ 109.7

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 401(k) Savings Plan (Details)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Percent of eligible employee contributions	50.00%
Percent of the eligible employees’ compensation	3.00%
Service period	3 years

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GOODWILL - Narrative (Details)	2 Months Ended	9 Months Ended
	May 03, 2022 USD ($) business_acquired	Sep. 30, 2022 USD ($) segment	Mar. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)
Goodwill [Line Items]
Number of segments | segment		2
Goodwill impairment loss		$ 0
Goodwill		$ 263,744,000		$ 116,958,000
Griffin Capital
Goodwill [Line Items]
Number of businesses acquired | business_acquired	2
Goodwill	$ 133,600,000		$ 13,100,000

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GOODWILL - Apollo’s Goodwill by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 263,744	$ 116,958
Asset Management
Goodwill [Line Items]
Goodwill	231,562	84,776
Principal Investing
Goodwill [Line Items]
Goodwill	$ 32,182	$ 32,182

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INVESTMENTS - Apollo's Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Investments, at fair value	$ 1,131,409	$ 5,588,992
Equity method investments	1,085,035	1,345,750
Performance allocations	2,502,446	2,731,733
U.S. Treasury securities, at fair value	1,372,048	1,687,105
Total Investments	$ 6,090,938	$ 11,353,580

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INVESTMENTS - Summarized Financial Information of Athene Holding (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule of Equity Method Investments [Line Items]
Benefits and expenses	$ 579,573	$ 648,907	$ 1,978,091	$ 2,417,438
Income before income tax provision	107,421	732,851	1,715,064	4,154,111
Income tax expense (benefit)	22,069	101,434	163,870	498,731
Net Income	85,352	631,417	1,551,194	3,655,380
Less: Net income (loss) attributable to non-controlling interests	61,922	373,095	862,675	2,060,441
Net Income Attributable to Apollo Asset Management, Inc.	23,430	258,322	688,519	1,594,939
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders	14,266	249,158	661,026	1,567,447
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Revenues	0	8,724,000	(269,000)	19,538,000
Benefits and expenses	0	8,004,000	2,504,000	16,689,000
Income before income tax provision	0	720,000	(2,773,000)	2,849,000
Income tax expense (benefit)	0	(50,000)	(407,000)	196,000
Net Income	0	770,000	(2,366,000)	2,653,000
Less: Net income (loss) attributable to non-controlling interests	0	37,000	(883,000)	(111,000)
Net Income Attributable to Apollo Asset Management, Inc.	0	733,000	(1,483,000)	2,764,000
Less: Preferred stock dividends	0	35,000	35,000	106,000
Net Income Attributable to Apollo Asset Management, Inc. Common Stockholders	$ 0	$ 698,000	$ (1,518,000)	$ 2,658,000

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INVESTMENTS - Summary of Net Gains (Losses) from Investment Activities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]
Realized gains (losses) on sales of investments, net	$ (984)	$ (197)	$ 206,547	$ 996
Net change in unrealized gains due to changes in fair value	(15,164)	172,995	694,621	1,438,347
Net gains (losses) from investment activities	$ (16,148)	$ 172,798	$ 901,168	$ 1,439,343

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INVESTMENTS - Performance Allocations Rollforward (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Performance Allocation [Roll Forward]
Performance allocations beginning balance	$ 2,731,733
Change in fair value of funds	314,800
Fund distributions to the Company	(544,087)
Performance allocations ending balance	$ 2,502,446

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PROFIT SHARING PAYABLE - Rollforward Summary of Profit Sharing (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Profit Sharing Payable Rollforward [Roll Forward]
Profit sharing payable, beginning balance	$ 1,444,652
Profit sharing expense	366,812
Payments/other	(313,684)
Profit sharing payable, ending balance	$ 1,497,780

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VARIABLE INTEREST ENTITIES - Narrative (Details)	9 Months Ended
	Sep. 30, 2022
Debt Instrument [Line Items]
Number of days trade is open with VIE	60 days

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VARIABLE INTEREST ENTITIES - Schedule of Net Gains from Investment Activities of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net gains from investment activities	$ 7,740	$ 104,885	$ 105,091	$ 460,459
Net gains (losses) from debt	0	(4,210)	10,138	(15,737)
Interest and other income	13,971	162,815	218,596	525,573
Interest and other expenses	(10,324)	(121,035)	(6,366)	(569,843)
Net gains from investment activities of consolidated variable interest entities	$ 11,387	$ 142,455	$ 327,459	$ 400,452

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VARIABLE INTEREST ENTITIES - Principal Provisions of Debt (Details) - Consolidated Variable Interest Entities - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal Outstanding	$ 651,491	$ 8,062,808
Senior Secured Notes
Debt Instrument [Line Items]
Principal Outstanding	0	$ 7,431,467
Weighted Average Interest Rate		3.16%
Weighted Average Remaining Maturity in Years		15 years 6 months
Subordinated Notes
Debt Instrument [Line Items]
Principal Outstanding	0	$ 613,192
Weighted Average Remaining Maturity in Years		14 years 6 months
Subscription Lines
Debt Instrument [Line Items]
Principal Outstanding	$ 651,491	$ 0
Weighted Average Interest Rate	4.87%
Weighted Average Remaining Maturity in Years	1 month 20 days
Secured Borrowings
Debt Instrument [Line Items]
Principal Outstanding	$ 0	$ 18,149
Weighted Average Interest Rate		2.33%
Weighted Average Remaining Maturity in Years		4 months 24 days

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VARIABLE INTEREST ENTITIES - Variable Interest Entities Which are Not Consolidated (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Apollo Exposure	$ 287,976	$ 240,871

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FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Valuation of Financial Assets and Liabilities by the Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Assets
Cash and cash equivalents	$ 1,118,305	$ 917,183
Restricted cash and cash equivalents	696,712	707,885
Investments
Derivative assets	48,697	7,436
Total Assets	5,510,033	24,156,753
Liabilities
Other liabilities of VIEs, at fair value	1,518	47,961
Derivative liabilities		1,520
Total Liabilities	106,552	8,152,648
Cash and cash equivalents	1,118,305	917,183	$ 2,090,197
Restricted cash and cash equivalents	696,712	707,885	1,052,782
U.S. Treasury securities, at fair value	1,372,048	1,687,105
Performance allocations	2,502,446	2,731,733
Sale of Investment | Due from/to credit funds
Investments
Due from related parties	41,911	47,835
VIE, Primary Beneficiary
Assets
Cash and cash equivalents	84,132	463,266
Investments
Investments, at fair value	1,016,819	14,737,051
Investments of VIEs, at fair value		14,737,051
Liabilities
Debt of VIEs		7,942,508
Other liabilities of VIEs, at fair value	2,032	34,758
Cash and cash equivalents	84,132		$ 672,619
VIE, Primary Beneficiary | APSG I, APSGII and Acropolis
Liabilities
Cash and cash equivalents	579	1,796
Restricted cash and cash equivalents	694,582	690,205
U.S. Treasury securities, at fair value	347,170	1,162,299
U.S. Treasury securities, at fair value
Assets
U.S. Treasury securities	1,372,048	1,687,105
Investments, at fair value
Investments
Investments, at fair value	1,131,409	4,548,048
Investments of VIEs, at fair value and Other
Investments
Investments, at fair value		1,040,944
Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary
Investments
Investments of VIEs, at fair value	1,016,819
Total investments
Investments
Investments, at fair value		5,588,992
Contingent Consideration Obligation
Liabilities
Contingent consideration obligations	103,002	125,901
Level I
Assets
Cash and cash equivalents	1,118,305	917,183
Restricted cash and cash equivalents	696,712	707,885
Investments
Derivative assets	0	0
Total Assets	3,435,443	8,378,212
Liabilities
Other liabilities of VIEs, at fair value	1,518	47,961
Derivative liabilities		0
Total Liabilities	1,518	47,961
Level I | Sale of Investment | Due from/to credit funds
Investments
Due from related parties	0	0
Level I | VIE, Primary Beneficiary
Assets
Cash and cash equivalents	84,132	463,266
Investments
Investments of VIEs, at fair value		6,232
Liabilities
Debt of VIEs		0
Other liabilities of VIEs, at fair value	0	0
Level I | U.S. Treasury securities, at fair value
Assets
U.S. Treasury securities	1,372,048	1,687,105
Level I | Investments, at fair value
Investments
Investments, at fair value	147,061	4,548,048
Level I | Investments of VIEs, at fair value and Other
Investments
Investments, at fair value		48,493
Level I | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary
Investments
Investments of VIEs, at fair value	17,185
Level I | Total investments
Investments
Investments, at fair value		4,596,541
Level I | Contingent Consideration Obligation
Liabilities
Contingent consideration obligations	0	0
Level II
Assets
Cash and cash equivalents	0	0
Restricted cash and cash equivalents	0	0
Investments
Derivative assets	40,806	7,436
Total Assets	77,833	1,109,124
Liabilities
Other liabilities of VIEs, at fair value	0	0
Derivative liabilities		1,520
Total Liabilities	2,032	450,660
Level II | Sale of Investment | Due from/to credit funds
Investments
Due from related parties	0	0
Level II | VIE, Primary Beneficiary
Assets
Cash and cash equivalents	0	0
Investments
Investments of VIEs, at fair value		1,055,421
Liabilities
Debt of VIEs		446,029
Other liabilities of VIEs, at fair value	2,032	3,111
Level II | U.S. Treasury securities, at fair value
Assets
U.S. Treasury securities	0	0
Level II | Investments, at fair value
Investments
Investments, at fair value	35,615	0
Level II | Investments of VIEs, at fair value and Other
Investments
Investments, at fair value		46,267
Level II | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary
Investments
Investments of VIEs, at fair value	1,412
Level II | Total investments
Investments
Investments, at fair value		46,267
Level II | Contingent Consideration Obligation
Liabilities
Contingent consideration obligations	0	0
Level III
Assets
Cash and cash equivalents	0	0
Restricted cash and cash equivalents	0	0
Investments
Derivative assets	7,891	0
Total Assets	1,924,940	14,181,822
Liabilities
Other liabilities of VIEs, at fair value	0	0
Derivative liabilities		0
Total Liabilities	103,002	7,653,470
Level III | Sale of Investment | Due from/to credit funds
Investments
Due from related parties	41,911	47,835
Level III | VIE, Primary Beneficiary
Assets
Cash and cash equivalents	0	0
Investments
Investments of VIEs, at fair value		13,187,803
Liabilities
Debt of VIEs		7,496,479
Other liabilities of VIEs, at fair value	0	31,090
Level III | U.S. Treasury securities, at fair value
Assets
U.S. Treasury securities	0	0
Level III | Investments, at fair value
Investments
Investments, at fair value	939,742	0
Level III | Investments of VIEs, at fair value and Other
Investments
Investments, at fair value		946,184
Liabilities
Performance allocations	178,100	175,800
Level III | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary
Investments
Investments of VIEs, at fair value	935,396
Level III | Total investments
Investments
Investments, at fair value		946,184
Level III | Contingent Consideration Obligation
Liabilities
Contingent consideration obligations	103,002	125,901
NAV
Assets
Cash and cash equivalents	0	0
Restricted cash and cash equivalents	0	0
U.S. Treasury securities	0
Investments
Derivative assets	0	0
Total Assets	71,817	487,595
Liabilities
Other liabilities of VIEs, at fair value	0	0
Derivative liabilities		0
Total Liabilities	0	557
NAV | Sale of Investment | Due from/to credit funds
Investments
Due from related parties	0	0
NAV | VIE, Primary Beneficiary
Assets
Cash and cash equivalents	0	0
Investments
Investments of VIEs, at fair value		487,595
Liabilities
Debt of VIEs		0
Other liabilities of VIEs, at fair value	0	557
NAV | U.S. Treasury securities, at fair value
Assets
U.S. Treasury securities		0
NAV | Investments, at fair value
Investments
Investments, at fair value	8,991	0
NAV | Investments of VIEs, at fair value and Other
Investments
Investments, at fair value		0
NAV | Investments of VIEs, at fair value and Other | VIE, Primary Beneficiary
Investments
Investments of VIEs, at fair value	62,826
NAV | Total investments
Investments
Investments, at fair value		0
NAV | Contingent Consideration Obligation
Liabilities
Contingent consideration obligations	$ 0	$ 0

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FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Changes in Fair Value in Financial Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period	$ 1,923,044	$ 12,267,739	$ 14,133,987	$ 11,332,752
Net transfer in (out) due to consolidation (deconsolidation)			(14,168,526)
Transfer out due to consolidation		(924)		(230,641)
Purchases	983,241	489,192	4,560,125	2,171,615
Sale of investments/distributions	(980,399)	(344,659)	(2,823,613)	(1,153,827)
Net realized gains (losses)	50,357	33,104	68,548	47,147
Changes in net unrealized gains (losses)	(52,135)	98,978	183,334	460,241
Cumulative translation adjustment	(41,079)	(12,039)	(98,699)	(33,927)
Transfer into Level III		31,444	30,807	42,035
Transfer out of Level III		(197,377)	(2,934)	(269,937)
Balance, End of Period	1,883,029	12,365,458	1,883,029	12,365,458
Consolidated Variable Interest Entities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period	843,266	11,877,952	13,187,803	10,962,980
Net transfer in (out) due to consolidation (deconsolidation)			(14,190,236)
Transfer out due to consolidation		(924)		(230,641)
Purchases	973,126	284,605	4,444,308	1,967,028
Sale of investments/distributions	(863,413)	(344,659)	(2,702,495)	(1,150,592)
Net realized gains (losses)	(1,296)	16,616	19,861	29,591
Changes in net unrealized gains (losses)	(16,287)	79,212	160,094	411,359
Cumulative translation adjustment	0	(10,166)	(10,808)	(24,414)
Transfer into Level III		31,444	29,803	41,329
Transfer out of Level III		(194,955)	(2,934)	(267,515)
Balance, End of Period	935,396	11,739,125	935,396	11,739,125
Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)	11,894	19,766	72,254	48,882
Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date | Consolidated Variable Interest Entities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)	0	0	0	0
Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)	(2,169)	79,514	6,613	278,471
Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date | Consolidated Variable Interest Entities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)	(2,169)	79,514	6,613	278,471
Investments and Derivative Assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period	1,079,778		946,184
Net transfer in (out) due to consolidation (deconsolidation)			21,710
Purchases	10,115		115,817
Sale of investments/distributions	(116,986)		(121,118)
Net realized gains (losses)	51,653		48,687
Changes in net unrealized gains (losses)	(35,848)		23,240
Cumulative translation adjustment	(41,079)		(87,891)
Transfer into Level III			1,004
Transfer out of Level III			0
Balance, End of Period	947,633		947,633
Investments and Derivative Assets | Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)	11,894		72,254
Investments and Derivative Assets | Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)	$ 0		$ 0
Investments of VIEs, at fair value and Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period		389,787		369,772
Transfer out due to consolidation		0		0
Purchases		204,587		204,587
Sale of investments/distributions		0		(3,235)
Net realized gains (losses)		16,488		17,556
Changes in net unrealized gains (losses)		19,766		48,882
Cumulative translation adjustment		(1,873)		(9,513)
Transfer into Level III		0		706
Transfer out of Level III		(2,422)		(2,422)
Balance, End of Period		626,333		626,333
Investments of VIEs, at fair value and Other | Change in net unrealized gains (losses) included in investment income (loss) related to investments still held at reporting date
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)		19,766		48,882
Investments of VIEs, at fair value and Other | Change in net unrealized gains (losses) included in net gains from investment activities of consolidated VIEs related to investments still held at reporting date
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized gains (losses)		$ 0		$ 0

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FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Changes in Fair Value in Financial Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period	$ 104,202	$ 7,335,158	$ 7,653,470	$ 7,220,408
Transfer out due to deconsolidation			(8,626,153)
Issuances		15,980	1,645,025	327,388
Payments		(37,005)	(532,032)	(322,023)
Net realized (gains) losses		(1,681)	(480)	9,049
Changes in net unrealized (gains) losses	(1,200)	11,957	(26,008)	103,413
Cumulative translation adjustment		(10,293)	(10,820)	(24,316)
Transfer into Level III		256		453
Balance, End of Period	103,002	7,314,372	103,002	7,314,372
Debt And Other Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized (gains) losses		4,672		93,743
Contingent Consideration Obligations
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period	104,202	128,984	125,901	119,788
Transfer out due to deconsolidation			0
Issuances		0	0	0
Payments		(7,495)	(13,259)	(20,609)
Net realized (gains) losses		0	0	0
Changes in net unrealized (gains) losses	(1,200)	(1,902)	(9,640)	20,408
Cumulative translation adjustment		0	0	0
Transfer into Level III		0		0
Balance, End of Period	103,002	119,587	103,002	119,587
Contingent Consideration Obligations | Debt And Other Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized (gains) losses		0		0
Debt and Other Liabilities of Consolidated VIEs | Consolidated Variable Interest Entities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period	0	7,206,174	7,527,569	7,100,620
Transfer out due to deconsolidation			(8,626,153)
Issuances		15,980	1,645,025	327,388
Payments		(29,510)	(518,773)	(301,414)
Net realized (gains) losses		(1,681)	(480)	9,049
Changes in net unrealized (gains) losses	0	13,859	(16,368)	83,005
Cumulative translation adjustment		(10,293)	(10,820)	(24,316)
Transfer into Level III		256		453
Balance, End of Period	$ 0	7,194,785	$ 0	7,194,785
Debt and Other Liabilities of Consolidated VIEs | Consolidated Variable Interest Entities | Debt And Other Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Changes in net unrealized (gains) losses		$ 4,672		$ 93,743

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FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Quantitative Inputs and Assumptions used for Financial Assets and Liabilities Categories (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Financial Assets
Due from related parties	$ 687,687		$ 493,826
Derivative assets	48,697		7,436
Assets	1,883,029	$ 1,923,044	14,133,987	$ 12,365,458	$ 12,267,739	$ 11,332,752
Financial Liabilities
Liabilities	103,002	104,202	7,653,470	7,314,372	7,335,158	7,220,408
Consolidated Variable Interest Entities
Financial Assets
Investments, at fair value	1,016,819		14,737,051
Assets	935,396	843,266	13,187,803	11,739,125	11,877,952	10,962,980
Consolidated Variable Interest Entities | Secured loans
Financial Liabilities
Liabilities			4,311,348
Consolidated Variable Interest Entities | Subordinated notes
Financial Liabilities
Liabilities			3,164,491
Consolidated Variable Interest Entities | Participating equity
Financial Liabilities
Liabilities			20,640
Consolidated Variable Interest Entities | Other liabilities
Financial Liabilities
Liabilities			31,090
Debt and Other Liabilities of Consolidated VIEs | Consolidated Variable Interest Entities
Financial Liabilities
Liabilities	0	$ 0	7,527,569	$ 7,194,785	$ 7,206,174	$ 7,100,620
Discounted cash flow | Contingent Consideration Obligation
Financial Liabilities
Liabilities	103,002		125,901
Level III
Financial Assets
Derivative assets	7,891		0
Assets	1,924,940		14,181,822
Financial Liabilities
Liabilities	103,002		7,653,470
Level III | Consolidated Variable Interest Entities
Financial Assets
Equity securities	411,320		4,144,661
Level III | Consolidated Variable Interest Entities | Bank loans
Financial Assets
Assets	491,893		4,569,873
Level III | Consolidated Variable Interest Entities | Profit participating notes
Financial Assets
Assets			2,849,150
Level III | Consolidated Variable Interest Entities | Real Assets
Financial Assets
Assets			511,648
Level III | Consolidated Variable Interest Entities | Bonds
Financial Assets
Assets	32,035		50,885
Level III | Consolidated Variable Interest Entities | Warrants
Financial Assets
Assets	148
Level III | Consolidated Variable Interest Entities | Other equity investments
Financial Assets
Assets			1,061,586
Level III | Embedded value
Financial Assets
Investments, at fair value	512,207
Level III | Embedded value | Other investments
Financial Assets
Investments, at fair value			516,221
Level III | Discounted cash flow
Financial Assets
Investments, at fair value	121,666
Level III | Discounted cash flow | Other investments
Financial Assets
Investments, at fair value			169,625
Level III | Adjusted transaction value
Financial Assets
Investments, at fair value	305,869
Level III | Adjusted transaction value | Other investments
Financial Assets
Investments, at fair value			260,338
Level III | Option model
Financial Assets
Derivative assets	$ 7,891
Level III | Discount rate | Consolidated Variable Interest Entities
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input	13.9
Level III | Discount rate | Consolidated Variable Interest Entities | Bonds
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bonds, measurement input	7.9
Level III | Discount rate | Consolidated Variable Interest Entities | Warrants
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Warrants, measurement input	0.154
Level III | Discount rate | Discounted cash flow
Financial Assets
Due from related parties	$ 41,911		$ 47,835
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Due from related parties	15.00%		16.00%
Level III | Discount rate | Discounted cash flow | Contingent Consideration Obligation
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Contingent consideration obligation, measurement input	0.190
Level III | Discount rate | Discounted cash flow | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investments, measurement input	0.089
Level III | Discount rate | Discounted cash flow | Minimum | Other investments
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Other investments, measurement input			14.00%
Level III | Discount rate | Discounted cash flow | Minimum | Bank loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bank loans, measurement input	0.071
Level III | Discount rate | Discounted cash flow | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investments, measurement input	0.528
Level III | Discount rate | Discounted cash flow | Maximum | Other investments
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Other investments, measurement input			52.80%
Level III | Discount rate | Discounted cash flow | Maximum | Bank loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bank loans, measurement input	0.327
Level III | Discount rate | Discounted cash flow | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investments, measurement input	0.294
Due from related parties	15.00%		16.00%
Level III | Discount rate | Discounted cash flow | Weighted Average | Other investments
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Other investments, measurement input			26.40%
Level III | Discount rate | Discounted cash flow | Weighted Average | Contingent Consideration Obligation
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Contingent consideration obligation, measurement input	0.190		0.185
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Participating equity
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.150
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			0.030
Other equity investments, measurement input			0.118
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Bank loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bank loans, measurement input			0.018
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Profit participating notes
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Profit participating notes, measurement input			0.087
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.050
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Bonds
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bonds, measurement input			0.040
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Secured loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.014
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Subordinated notes
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.045
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Other liabilities
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.037
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			0.190
Other equity investments, measurement input			0.125
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Bank loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bank loans, measurement input			0.156
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Profit participating notes
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Profit participating notes, measurement input			0.125
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.125
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Bonds
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bonds, measurement input			0.070
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Secured loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.100
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Subordinated notes
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.119
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Other liabilities
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.093
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input	0.139		0.104
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Bank loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bank loans, measurement input	0.076		0.043
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Profit participating notes
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Profit participating notes, measurement input			0.124
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.073
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Bonds
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Bonds, measurement input	0.079		0.061
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Warrants
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Warrants, measurement input	0.154
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Other equity investments
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Other equity investments, measurement input			0.121
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Secured loans
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.028
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Subordinated notes
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.058
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Participating equity
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.150
Level III | Discount rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Other liabilities
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Long-term debt, measurement input			0.063
Level III | Discount rate | Dividend discount model | Consolidated Variable Interest Entities
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			13.7
Level III | Discount rate | Dividend discount model | Consolidated Variable Interest Entities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			0.137
Level III | Volatility rate | Option model | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Derivative assets, measurement input	0.388
Level III | Volatility rate | Option model | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Derivative assets, measurement input	0.400
Level III | Volatility rate | Option model | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Derivative assets, measurement input	0.397
Level III | NTAV multiple | Market comparable companies | Consolidated Variable Interest Entities
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			1.25
Level III | NTAV multiple | Market comparable companies | Consolidated Variable Interest Entities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			1.25
Level III | Purchase multiple | Adjusted transaction value | Consolidated Variable Interest Entities
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			1.25
Level III | Purchase multiple | Adjusted transaction value | Consolidated Variable Interest Entities | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, measurement input			1.25
Level III | Capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Minimum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.040
Level III | Capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Maximum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.058
Level III | Capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.053
Level III | Capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Minimum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.055
Level III | Capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Maximum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.085
Level III | Capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Weighted Average | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.062
Level III | Terminal capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.083
Level III | Terminal capitalization rate | Discounted cash flow | Consolidated Variable Interest Entities | Weighted Average | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.083
Level III | Terminal capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Minimum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.060
Level III | Terminal capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Maximum | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.12
Level III | Terminal capitalization rate | Direct capitalization | Consolidated Variable Interest Entities | Weighted Average | Real Assets
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Real estate, measurement input			0.069

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FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Narrative (Details)	Dec. 31, 2021 $ / shares
Investments, at fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Market price (in USD per share)	$ 83.33

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OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fixed assets	$ 403,095	$ 256,252
Less: Accumulated depreciation and amortization	(148,699)	(130,072)
Fixed assets, net	254,396	126,180
Deferred equity-based compensation	240,759	282,900
Intangible assets, net	185,146	14,846
Commitment asset	154,563	0
Prepaid expenses	60,486	57,765
Tax receivables	55,040	30,334
Other	134,031	73,876
Total Other Assets	1,084,421	585,901
Other liabilities
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of grants	$ 181,100	$ 210,600

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OTHER ASSETS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Depreciation	$ 8.3	$ 4.8	$ 22.2	$ 13.1

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LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease cost	$ 18,002	$ 10,916	$ 51,283	$ 33,930

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LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating cash flows for operating leases	$ 14,285	$ 10,971	$ 32,851	$ 23,465

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LEASES - Lease Payments by Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Operating Lease Payments
Remaining 2022	$ 15,523
2023	67,832
2024	67,981
2025	67,244
2026	62,739
Thereafter	511,882
Total lease payments	793,201
Less imputed interest	(124,120)
Present value of lease payments	$ 669,081	$ 505,206

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LEASES - Narrative (Details) $ in Millions	Sep. 30, 2022 USD ($)
Leases [Abstract]
Lease not yet commenced, amount	$ 127.3

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LEASES - Supplemental Information Related to Lease (Details)	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Weighted average remaining lease term (in years)	12 years 6 months	13 years 3 months 18 days
Weighted average discount rate	2.70%	2.90%

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INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income tax provision	$ 22,069,000	$ 101,434,000	$ 163,870,000	$ 498,731,000
Effective tax rate	20.50%	13.80%	9.60%	12.00%
Unrecognized tax benefits	$ 15,700,000		$ 15,700,000
Unremitted foreign earnings	$ 0		$ 0
Period of recognition for tax intangibles			15 years

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INCOME TAXES - Impact of Exchange of AOG Units (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Income Tax Contingency [Line Items]
Increase in Tax Receivable Agreement Liability	$ 243,200
Class A Common Stock
Income Tax Contingency [Line Items]
Increase (Decrease) in Deferred Tax Asset for Conversion of Convertible Units	292,844
Increase in Tax Receivable Agreement Liability	243,157
Increase to Additional Paid In Capital	$ 49,687

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DEBT - Summary of Debt (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Outstanding Balance	$ 2,810,055,000	$ 3,134,396,000
Fair Value	2,554,155,000	3,498,794,000
Debt issuance costs	16,300,000	25,100,000
Senior Notes | 4.00% 2024 Senior Notes
Debt Instrument [Line Items]
Outstanding Balance	498,959,000	498,469,000
Fair Value	$ 486,201,000	$ 530,052,000
Interest Rate	4.00%	4.00%
Senior Notes | 4.40% 2026 Senior Notes
Debt Instrument [Line Items]
Outstanding Balance	$ 498,114,000	$ 497,730,000
Fair Value	$ 474,335,000	$ 553,055,000
Interest Rate	4.40%	4.40%
Senior Notes | 4.87% 2029 Senior Notes
Debt Instrument [Line Items]
Outstanding Balance	$ 674,809,000	$ 674,786,000
Fair Value	$ 629,825,000	$ 777,703,000
Interest Rate	4.87%	4.87%
Senior Notes | 2.65% 2030 Senior Notes
Debt Instrument [Line Items]
Outstanding Balance	$ 495,375,000	$ 494,928,000
Fair Value	$ 395,079,000	$ 506,094,000
Interest Rate	2.65%	2.65%
Senior Notes | 5.00% 2048 Senior Notes
Debt Instrument [Line Items]
Outstanding Balance	$ 296,899,000	$ 296,757,000
Fair Value	$ 263,572,000	$ 397,191,000
Interest Rate	5.00%	5.00%
Senior Secured Notes | 4.77% 2039 Senior Secured Guaranteed Notes
Debt Instrument [Line Items]
Outstanding Balance	$ 0	$ 317,985,000
Fair Value	$ 0	$ 369,041,000
Interest Rate	4.77%	4.77%
Secured debt	$ 0
Subordinated notes | 4.95% 2050 Subordinated Notes
Debt Instrument [Line Items]
Outstanding Balance	296,714,000	$ 296,675,000
Fair Value	$ 256,913,000	$ 308,687,000
Interest Rate	4.95%	4.95%
AMI Term Facility | 1.70% Secured Borrowing II
Debt Instrument [Line Items]
Outstanding Balance	$ 16,663,000	$ 19,334,000
Fair Value	$ 15,708,000	$ 19,239,000
Interest Rate	1.70%	1.70%
AMI Term Facility | 1.30% 2016 AMI Term Facility I
Debt Instrument [Line Items]
Outstanding Balance	$ 16,536,000	$ 19,186,000
Fair Value	$ 16,536,000	$ 19,186,000
Interest Rate	1.30%	1.30%
AMI Term Facility | 1.40% 2016 AMI Term Facility II
Debt Instrument [Line Items]
Outstanding Balance	$ 15,986,000	$ 18,546,000
Fair Value	$ 15,986,000	$ 18,546,000
Interest Rate	1.40%	1.40%

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DEBT - Credit Facilities (Details) - Subscription Lines - AMH credit facility1 - USD ($)		9 Months Ended
	Oct. 12, 2022	Sep. 30, 2022	Nov. 23, 2020
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 750,000,000
Commitment fee (as a percent)		0.09%
Subsequent Event
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,000,000,000
Commitment fee (as a percent)	0.08%

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DEBT - Narrative (Details) - Subscription Lines - AMH credit facility1		9 Months Ended
	Oct. 12, 2022 USD ($)	Sep. 30, 2022 USD ($)	Nov. 08, 2022 USD ($)	Nov. 23, 2020 USD ($)
Debt Instrument [Line Items]
Incremental facilities		$ 250,000,000
Leverage ratio		4.00
Maximum borrowing capacity				$ 750,000,000
Commitment fee (as a percent)		0.09%
Subsequent Event
Debt Instrument [Line Items]
Incremental facilities	$ 250,000,000
Leverage ratio	4.00
Outstanding amount			$ 0
Maximum borrowing capacity	$ 1,000,000,000
Line of credit facility, covenant compliance amount	$ 150,000,000,000
Commitment fee (as a percent)	0.08%
Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.875%

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DEBT - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Disclosure [Abstract]
Total Interest Expense	$ 32,219	$ 34,820	$ 96,644	$ 104,433

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EQUITY-BASED COMPENSATION - Narrative (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		$ 104.2	$ 56.2	$ 372.9	$ 165.7
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation expense		706.7		$ 706.7
Granted (in shares)				3.6	2.3
Fair value of grants				$ 219.8	$ 117.3
RSUs | Certain Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				2.9	2.1
Fair value of grants				$ 167.4	$ 97.6
RSUs | President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	6.0
RSUs | Weighted Average
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity-based compensation expense, period of recognition				2 years 10 months 24 days
RSUs | Plan Grants | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
RSUs | Plan Grants | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				6 years
Service-based awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		49.3	24.3	$ 155.5	66.5
Service-based awards | President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		13.9		41.7
Award requisite service period	5 years
Performance-based awards | Certain Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		39.1	21.1	163.1	65.0
Performance-based awards | President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		5.9		17.6
Granted (in shares)	2.0
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense		$ 13.2	$ 8.3	$ 46.1	$ 19.2
Granted (in shares)				0.5	0.6
Fair value of grants				$ 33.5	$ 36.4

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EQUITY - Preferred Stock Issuance, Narrative (Details) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Preferred Stock
Class of Stock [Line Items]
Increase to distribution rate (as a percent)		5.00%
Preferred Stock | Equity, Redemption, Period Two
Class of Stock [Line Items]
Redemption price (in USD per share)	$ 25.00	$ 25.00
Preferred Stock | Equity, Redemption, Period One
Class of Stock [Line Items]
Redemption price (in USD per share)	$ 25.25	$ 25.25
Required days notice		30 days
Number of days within occurrence		60 days
6.375% Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)	11,000,000	11,000,000	11,000,000
Preferred stock, shares outstanding (in shares)	11,000,000	11,000,000	11,000,000
Dividends declared per share (in USD per share)	$ 0.398438
6.375% Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)	12,000,000	12,000,000	12,000,000
Preferred stock, shares outstanding (in shares)	12,000,000	12,000,000	12,000,000
Dividends declared per share (in USD per share)	$ 0.398438
6.375% Series B Preferred Stock | Equity, Redemption, Period One
Class of Stock [Line Items]
Redemption price (in USD per share)	$ 25.50	$ 25.50
Required days notice		30 days
Number of days within occurrence		60 days

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EQUITY - Interests in Consolidated Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income attributable to non-controlling interests in consolidated entities:
Net income attributable to non-controlling interests	$ 61,922	$ 373,095	$ 862,675	$ 2,060,441
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net Income	85,352	631,417	1,551,194	3,655,380
Net income attributable to non-controlling interests in consolidated entities	(61,922)	(373,095)	(862,675)	(2,060,441)
Net Income Attributable to Apollo Asset Management, Inc.	23,430	258,322	688,519	1,594,939
Adjustments:
Income tax provision	22,069	101,434	163,870	498,731
NYC UBT and foreign tax benefit	(19,083)	(11,213)	(36,414)	(24,694)
Net income in non-Apollo Operating Group entities	(23,430)	(258,322)	(688,519)	(1,594,939)
Total adjustments	3,236	82,156	130,808	447,648
Other comprehensive loss attributable to non-controlling interests	(32,280)	(10,082)	(66,133)	(20,275)
Comprehensive income attributable to non-controlling interests	29,642	363,013	796,542	2,040,166
Series A Preferred Stock
Adjustments:
Preferred Stock Dividends	(4,383)	(4,382)	(13,149)	(13,148)
Series B Preferred Stock
Adjustments:
Preferred Stock Dividends	(4,781)	(4,782)	(14,344)	(14,344)
Other consolidated entities
Net income attributable to non-controlling interests in consolidated entities:
Net income attributable to non-controlling interests	17,528	110,703	273,827	294,959
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net income attributable to non-controlling interests in consolidated entities	(17,528)	(110,703)	(273,827)	(294,959)
Consolidated entities
Net income attributable to non-controlling interests in consolidated entities:
Net income attributable to non-controlling interests	17,795	112,569	276,984	299,423
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net income attributable to non-controlling interests in consolidated entities	(17,795)	(112,569)	(276,984)	(299,423)
Net Income Attributable to Apollo Asset Management, Inc.	67,557	518,848	1,274,210	3,355,957
Adjustments:
Net income in non-Apollo Operating Group entities	(67,557)	(518,848)	(1,274,210)	(3,355,957)
Net income after adjustments	70,793	601,004	1,405,018	3,803,605
Interest in management companies and a co-investment vehicle
Net income attributable to non-controlling interests in consolidated entities:
Net income attributable to non-controlling interests	267	1,866	3,157	4,464
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net income attributable to non-controlling interests in consolidated entities	(267)	(1,866)	(3,157)	(4,464)
Apollo Operating Group
Net income attributable to non-controlling interests in consolidated entities:
Net income attributable to non-controlling interests	44,127	260,526	585,691	1,761,018
Net income attributable to non-controlling interests in the Apollo Operating Group:
Net income attributable to non-controlling interests in consolidated entities	(44,127)	(260,526)	(585,691)	(1,761,018)
Net Income Attributable to Apollo Asset Management, Inc.	(9,414)	(1,099)	(30,845)	(1,103)
Adjustments:
Net income in non-Apollo Operating Group entities	$ 9,414	$ 1,099	$ 30,845	$ 1,103
Weighted average ownership percentage of Apollo Operating Group	42.60%	44.10%	42.60%	45.80%

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EQUITY - Redeemable Non-Controlling Interests (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Redeemable Non-Controlling Interests [Roll Forward]
Balance at beginning of period	$ 1,770,034	$ 782,702
Redemption of non-controlling interests	(776,272)	0
Deconsolidation of SPAC	(39,588)	0
Net issuances of redeemable non-controlling interests	10,544	907,590
Accretion of redeemable non-controlling interests	58,989	59,762
Balance at end of period	$ 1,023,707	$ 1,750,054

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due from and Due to Affiliates (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Due from Related Parties:
Total Due from Related Parties	$ 687,687	$ 493,826
Due to Related Parties:
Total Due to Related Parties	1,681,013	1,222,402
Due from employees and former employees
Due from Related Parties:
Total Due from Related Parties	94,139	106,755
Due from portfolio companies
Due from Related Parties:
Total Due from Related Parties	61,493	66,960
Incentive fees receivable
Due from Related Parties:
Total Due from Related Parties	10,074	4,236
Due to Former Managing Partners and Contributing Partners
Due to Related Parties:
Total Due to Related Parties	906,157	1,118,272
Due to Former Managing Partners and Contributing Partners | Purchase of Limited Partnership Interests
Due to Related Parties:
Total Due to Related Parties	394,400	569,600
Due to parent
Due from Related Parties:
Total Due from Related Parties	37,483	0
Due to Related Parties:
Total Due to Related Parties	657,941	0
Due to funds
Due from Related Parties:
Total Due from Related Parties	484,498	315,875
Due to Related Parties:
Total Due to Related Parties	116,915	104,130
Capital Markets | Sale of Investment
Due to Related Parties:
Total Due to Related Parties	$ 41,900	$ 47,800
Due from related parties, repayment period	5 years

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Tax Receivable Agreement (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Percentage of amount of cash savings	15.00%
Recorded liability		$ 243,200,000
Cash payment, multiplier by outstanding units			$ 3.66
Due to related parties	$ 1,681,013,000		1,222,402,000
Due to Former Managing Partners and Contributing Partners
Related Party Transaction [Line Items]
Due to related parties	906,157,000		1,118,272,000
Purchase of Limited Partnership Interests | Due to Former Managing Partners and Contributing Partners
Related Party Transaction [Line Items]
Due to related parties	$ 394,400,000		$ 569,600,000
Due to Former Managing Partners and Contributing Partners
Related Party Transaction [Line Items]
Percentage of amount of cash savings	85.00%

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due from Employees and Former Employees (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Related Party Transactions [Abstract]
Loans to related party	$ 15.8	$ 17.5
Loans due upon liquidation of fund	$ 65.8	$ 64.5

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Indemnity (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Related Party Transactions [Abstract]
Indemnity liability	$ 13.3	$ 13.2

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due to Funds (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Related Party Transactions [Abstract]
General partner obligation	$ 88.6	$ 81.2

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Athene (Details) - USD ($) $ in Thousands		9 Months Ended
	Sep. 20, 2018	Sep. 30, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Asset threshold		$ 12,318,082	$ 30,501,894
Athene Holding
Related Party Transaction [Line Items]
Management fee rate		0.225%
Revised Fee Agreement | Athene Holding
Related Party Transaction [Line Items]
Management fee rate		0.15%
Asset threshold		$ 103,400,000
Amended Fee Agreement | Athene Holding
Related Party Transaction [Line Items]
Investment management agreement, subsequent period before termination election	2 years

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Sub-Allocation Fee Schedule (Details)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Athene Holding | Athene Holding
Related Party Transaction [Line Items]
Ownership percentage		28.40%
Core Assets
Related Party Transaction [Line Items]
Sub-Allocation Fees	0.065%
Core Plus Assets
Related Party Transaction [Line Items]
Sub-Allocation Fees	0.13%
Yield Assets
Related Party Transaction [Line Items]
Sub-Allocation Fees	0.375%
High Alpha Assets
Related Party Transaction [Line Items]
Sub-Allocation Fees	0.70%
Other Assets
Related Party Transaction [Line Items]
Sub-Allocation Fees	0.00%
Other Assets | Minimum
Related Party Transaction [Line Items]
Performance revenue, percentages	0.00%
Other Assets | Maximum
Related Party Transaction [Line Items]
Performance revenue, percentages	20.00%

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Athora (Details) $ in Millions	Sep. 30, 2022 USD ($)
Athora | Equity Investments | Advisory Services | Affiliated Entity
Related Party Transaction [Line Items]
Other commitment	$ 401.9

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Performance Allocations and Revenues Earned (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Athene, Athora and AAA Investments
Related Party Transaction [Line Items]
Revenues earned in aggregate from Athene and Athora, net	$ 341,888	$ 284,254	$ 959,261	$ 828,045

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Due to Parent (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Due to related parties	$ 1,681,013	$ 1,222,402
Due to parent
Related Party Transaction [Line Items]
Due to related parties	$ 657,941	$ 0

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Investment in SPACs (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 13, 2021	Feb. 12, 2021	Oct. 31, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Related Party Transaction [Line Items]
Net change in unrealized gains due to changes in fair value				$ (15,164)	$ 172,995	$ 694,621	$ 1,438,347
Apollo Strategic Growth Capital (ASPG I) | Affiliated Entity
Related Party Transaction [Line Items]
Unrealized gain on deconsolidation						162,000
Net change in unrealized gains due to changes in fair value						$ 81,500
Apollo Strategic Growth Capital (ASPG I) | Affiliated Entity | IPO | APSG I
Related Party Transaction [Line Items]
Sale of stock, capital from third party investors			$ 816,800
Apollo Strategic Growth Capital (ASPG I) | Affiliated Entity | Private Placement | APSG I
Related Party Transaction [Line Items]
Sale of stock, capital from third party investors			$ 18,300
APSG II | Affiliated Entity | IPO
Related Party Transaction [Line Items]
Sale of stock, capital from third party investors		$ 690,000
Proceeds from sale of warrants		$ 15,600
Acropolis | Affiliated Entity | IPO
Related Party Transaction [Line Items]
Sale of stock, capital from third party investors	$ 345,000
Proceeds from sale of warrants	$ 8,800

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Financial Information of SPACs in Aggregate (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Assets:
Cash and cash equivalents	$ 1,118,305		$ 917,183	$ 2,090,197
Restricted cash and cash equivalents	696,712		707,885	1,052,782
U.S. Treasury securities, at fair value	1,372,048		1,687,105
Other assets	1,084,421		585,901
Total Assets	12,318,082		30,501,894
Liabilities:
Accounts payable and accrued expenses	126,603		145,054
Due to related parties	1,681,013		1,222,402
Other liabilities	305,210		500,980
Total Liabilities	8,145,121		18,537,494
Redeemable non-controlling interests:
Redeemable non-controlling interests	1,023,707		1,770,034	1,750,054		$ 782,702
Apollo Asset Management, Inc. Stockholders’ Equity:
Additional paid in capital	1,242,618		2,096,403
Retained earnings (accumulated deficit)	(3,901)		1,143,899
Total Stockholders’ Equity	3,149,254	$ 3,260,969	10,194,366	8,474,045	$ 8,212,435	$ 5,513,263
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity	12,318,082		30,501,894
Consolidated Variable Interest Entities
Assets:
Cash and cash equivalents	84,132			$ 672,619
Other assets	19,175		251,581
Liabilities:
Other liabilities	607,636		781,482
Consolidated Variable Interest Entities | APSG I, APSGII and Acropolis
Assets:
Cash and cash equivalents	579		1,796
Restricted cash and cash equivalents	694,582		690,205
U.S. Treasury securities, at fair value	347,170		1,162,299
Other assets	926		2,627
Total Assets	1,043,257		1,856,927
Liabilities:
Accounts payable and accrued expenses	3,250		2,361
Due to related parties	8,300		20,146
Other liabilities	41,519		143,778
Total Liabilities	53,069		166,285
Redeemable non-controlling interests:
Redeemable non-controlling interests	1,008,679		1,762,282
Apollo Asset Management, Inc. Stockholders’ Equity:
Additional paid in capital	(63,909)		(98,369)
Retained earnings (accumulated deficit)	45,418		26,729
Total Stockholders’ Equity	(18,491)		(71,640)
Total Liabilities, Redeemable non-controlling interests and Stockholders’ Equity	$ 1,043,257		$ 1,856,927

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RELATED PARTY TRANSACTIONS AND INTERESTS IN CONSOLIDATED ENTITIES - Financial Information of SPACs in Aggregate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Expenses:
Interest expense	$ 32,219	$ 34,820	$ 96,644	$ 104,433
General, administrative and other	161,208	112,419	452,292	329,235
Total Expenses	579,573	648,907	1,978,091	2,417,438
Other Income:
Net gains from investment activities	(16,148)	172,798	901,168	1,439,343
Interest income	15,377	2,114	23,999	3,557
Other income (loss), net	3,533	(14,907)	(9,480)	(28,126)
Total Other Income	14,149	302,460	1,243,146	1,815,226
Income before income tax provision	107,421	732,851	1,715,064	4,154,111
Income tax provision	(22,069)	(101,434)	(163,870)	(498,731)
Net Income Attributable to Apollo Asset Management, Inc.	23,430	258,322	688,519	1,594,939
APSG I, APSGII and Acropolis | Consolidated Variable Interest Entities
Expenses:
Interest expense	7	3	16	5
General, administrative and other	685	3,824	6,426	13,369
Total Expenses	692	3,827	6,442	13,374
Other Income:
Net gains from investment activities	3,513	29,185	20,297	27,684
Interest income	4,949	131	6,710	392
Other income (loss), net	(100)	(146)	(300)	(370)
Total Other Income	8,362	29,170	26,707	27,706
Income before income tax provision	7,670	25,343	20,265	14,332
Income tax provision	(179)	0	(179)	0
Net Income Attributable to Apollo Asset Management, Inc.	$ 7,491	$ 25,343	$ 20,086	$ 14,332

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COMMITMENTS AND CONTINGENCIES - Investment Commitments (Details) - USD ($) $ in Billions	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Unfunded capital commitments	$ 0.5	$ 1.0

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COMMITMENTS AND CONTINGENCIES - Litigation and Regulatory Matters (Details) $ / shares in Units, $ in Thousands, € in Millions						1 Months Ended
	Oct. 19, 2021 USD ($) $ / shares	Mar. 08, 2021 USD ($)	Jun. 08, 2020 defendant claim	Dec. 21, 2017 USD ($)	Aug. 03, 2017 EUR (€)	Mar. 31, 2020 defendant
United States District Court Middle District Of Florida Against AGM
Long-term Purchase Commitment [Line Items]
Damages sought | €					€ 30
Harbinger Capital Partners II LP et al. v. Apollo Global Management Inc, et al. (No. 657515/2017)
Long-term Purchase Commitment [Line Items]
Damages sought				$ 1,900,000
Number of suits (in litigation) | claim			3
Harbinger Capital Partners II LP et al. v. Apollo Global Management Inc, et al. (No. 657515/2017) | SkyTerra
Long-term Purchase Commitment [Line Items]
Number of defendants | defendant			8
Benjamin Fongers Against CareerBuilder, LLC And AGM Inc.
Long-term Purchase Commitment [Line Items]
Damages sought		$ 35,000
Frank Funds v. Apollo Global Management | Officers and Employees
Long-term Purchase Commitment [Line Items]
Number of defendants | defendant						3
Stockholder Of AGM Vs. AGM Complaint | Director
Long-term Purchase Commitment [Line Items]
Payment of cash per AOG unit held (in dollars per unit) | $ / shares	$ 3.66
Funds provided for tax receivable agreement	$ 640,000

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COMMITMENTS AND CONTINGENCIES - Summary of Fixed and Determinable Payments (Details) - Other long-term obligations $ in Thousands	Sep. 30, 2022 USD ($)
Other Commitments [Line Items]
Remaining 2022	$ 15,966
2023 - 2024	17,403
2025 - 2026	249
2027 and Thereafter	0
Total	$ 33,618

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COMMITMENTS AND CONTINGENCIES - Contingent Obligations (Details)	Sep. 30, 2022 USD ($) subsidiary	Dec. 31, 2021 USD ($)
Variable Interest Entity [Line Items]
Unfunded contingent commitments	$ 500,000,000	$ 1,000,000,000
Apollo Capital Markets Partnership | Sumitomo Mitsui Banking Corp
Variable Interest Entity [Line Items]
Maximum borrowing capacity	2,250,000,000
Outstanding amount	$ 511,000,000
Underwriting Commitments | AGS
Variable Interest Entity [Line Items]
Number of subsidiaries | subsidiary	1
Commitment To Purchase Underlying Portfolio Investment | AGS
Variable Interest Entity [Line Items]
Unfunded contingent commitments	$ 0	$ 0
Consolidated Variable Interest Entities
Variable Interest Entity [Line Items]
Cumulative revenues recognized if existing investments become worthless	$ 4,300,000,000

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COMMITMENTS AND CONTINGENCIES - Contingent Consideration (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Fair value of the contingent obligation	$ 103.0	$ 125.9

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SEGMENT REPORTING - Narrative (Details)	9 Months Ended
	Sep. 30, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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SEGMENT REPORTING - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total Assets	$ 12,318,082		$ 12,318,082		$ 30,501,894
Management fees
Segment Reporting Information [Line Items]
Revenues	582,665	$ 474,537	1,665,611	$ 1,401,814
Advisory and transaction fees, net
Segment Reporting Information [Line Items]
Revenues	110,141	62,831	286,419	205,530
Total reportable segment assets
Segment Reporting Information [Line Items]
Adjusted Segment Income	424,256	902,451	1,506,743	1,856,449
Total Assets	10,315,950		10,315,950		$ 13,573,400
Total reportable segment assets | Asset Management
Segment Reporting Information [Line Items]
Fee-related performance fees	19,989	19,856	45,866	36,702
Fee related compensation	(193,793)	(160,689)	(556,389)	(476,663)
Other operating expenses	(112,005)	(76,601)	(318,716)	(218,316)
Adjusted Segment Income	364,647	320,126	1,015,739	940,730
Total Assets	1,936,252		1,936,252
Total reportable segment assets | Asset Management | Management fees
Segment Reporting Information [Line Items]
Revenues	545,924	472,483	1,573,197	1,395,200
Total reportable segment assets | Asset Management | Advisory and transaction fees, net
Segment Reporting Information [Line Items]
Revenues	104,532	65,077	271,781	203,807
Total reportable segment assets | Principal Investing
Segment Reporting Information [Line Items]
Other operating expenses	(7,214)	(12,014)	(19,250)	(34,149)
Adjusted Segment Income	59,609	582,325	491,004	915,719
Realized performance fees	92,993	608,130	371,044	1,183,640
Realized investment income	61,410	295,225	537,776	397,610
Principal investing compensation	(87,580)	$ (309,016)	(398,566)	$ (631,382)
Total Assets	$ 8,379,698		$ 8,379,698

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SEGMENT REPORTING - Reconciliation of Income (Loss) Before Income Tax Provision to Economic Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Income before income tax provision	$ 107,421	$ 732,851	$ 1,715,064	$ 4,154,111
Net income attributable to non-controlling interests in consolidated entities	(61,922)	(373,095)	(862,675)	(2,060,441)
Unrealized net (gains) losses from investment activities and other	15,164	(172,995)	(694,621)	(1,438,347)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Equity-based profit sharing expense and other	55,728	31,731	219,454	93,595
Equity-based compensation	45,183	19,538	138,584	55,187
Transaction-related charges	8,028	(954)	5,928	27,028
Merger-related transaction and integration costs	12,150	14,647	48,637	38,331
(Gains) losses from changes in tax receivable agreement liability	0	0	14,184	(1,941)
Net income attributable to non-controlling interests in consolidated entities	(17,795)	(112,569)	(276,984)	(299,423)
Unrealized performance fees	66,202	159,044	109,083	(1,411,205)
Unrealized profit sharing expense	(18,609)	(40,991)	(15,909)	646,142
Net interest expense	21,236	32,552	78,007	100,365
Unrealized principal investment income (loss)	127,488	218,816	137,784	(153,577)
Unrealized net (gains) losses from investment activities and other	17,224	(152,214)	(667,089)	(1,392,164)
Total Segments
Segment Reporting Information [Line Items]
Adjusted Segment Income	$ 424,256	$ 902,451	$ 1,506,743	$ 1,856,449

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SEGMENT REPORTING - Reconciliation of Reportable Segments to Total Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total assets	$ 12,318,082	$ 30,501,894
Total reportable segment assets
Segment Reporting Information [Line Items]
Total assets	10,315,950	13,573,400
Adjustments
Segment Reporting Information [Line Items]
Total assets	$ 2,002,132	$ 16,928,494

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SUBSEQUENT EVENTS (Details) - $ / shares		3 Months Ended
	Nov. 02, 2022	Sep. 30, 2022
Series A Preferred Stock
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)		$ 0.398438
Series B Preferred Stock
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)		$ 0.398438
Subsequent Event | Series A Preferred Stock
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)	$ 0.398438
Subsequent Event | Series B Preferred Stock
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)	$ 0.398438