Apollo Global Management (NYSE:APO), an asset management company, priced its IPO on March 29th, 2011, at high end of range at $19 per share and declines in early trading.
Business Overview (from prospectus)
, Apollo is a leading global alternative asset manager. We are contrarian, value-oriented investors in private equity, credit-oriented capital markets and real estate, with significant distressed expertise. We have a flexible mandate in the majority of the funds we manage that 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 and endowment funds, as well as other institutional and individual investors. As of December 31, 2010, we had Assets Under Management, or “AUM,” of $67.6 billion in our private equity, capital markets and real estate businesses. Our latest private equity fund, Fund VII, held a final closing in December 2008, raising a total of $14.7 billion. Fund VII began investing in January 2008 and has deployed $7.8 billion of capital through December 31, 2010, generating gross and net IRRs of 46% and 32%, respectively, during this period. We have consistently produced attractive long-term investment returns in our private equity funds, generating a 39% gross IRR and a 26% net IRR on a compound annual basis from inception through December 31, 2010. We have three business segments: private equity, capital markets and real estate. We also manage (i) AAA, a publicly listed permanent capital vehicle, which invests substantially all of its capital in or alongside Apollo-sponsored entities, funds, and other investments, and (ii) several strategic investment accounts established to facilitate investments by third-party investors directly in Apollo-sponsored funds and other transactions. We may also seek to raise natural resources funds that target global private equity opportunities in energy, metals and mining and select other natural resources sub-sectors.
Offering: 29.8 million shares at $19 per share. Net proceeds from the offering will be received by the selling stockholders and not by the company.
Lead Underwriters: Goldman, Sachs & Co. (NYSE:GS), J.P. Morgan (NYSE:JPM), BofA Merrill Lynch (NYSE:BAC), Citi (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank Securities (NYSE:DB), UBS Investment Bank (NYSE:UBS)
Revenues increased by $1,143.2 million to $2,109.8 million for the year ended December 31, 2010 as compared to the year ended December 31, 2009...Compensation and benefits increased by $448.3 million to $1,943.3 million for the year ended December 31, 2010 as compared to the year ended December 31, 2009...Interest expense decreased by $14.8 million for the year ended December 31, 2010 as compared to the year ended December 31, 2009...General, administrative and other expenses increased by $4.0 million for the year ended December 31, 2010 as compared to the year ended December 31, 2009...Net income increased by $249.8 million to $94.6 million for the year ended December 31, 2010 as compared to a net loss of $155.2 million for the year ended December 31, 2009...
The asset management industry is intensely competitive, and we expect it to remain so. We compete both globally and on a regional, industry and niche basis. We face competition both in the pursuit of outside investors for our funds and in acquiring investments in attractive portfolio companies and making other investments. We compete for outside investors based on a variety of factors, including: investment performance; investor perception of investment managers’ drive, focus and alignment of interest; quality of service provided to and duration of relationship with investors; business reputation; the level of fees and expenses charged for services. Over the past several years, the size and number of private equity funds and capital markets funds has continued to increase, heightening the level of competition for investor capital.