Apollo plans to put about $350 million toward new business development over two years, targeting at least 20% fee-related earnings growth in 2027 while expecting margins to hold.
The firm plans to put the money toward new businesses over the next 24 months. Apollo Chairman and CEO Marc Rowan said the firm expects to absorb the costs while meeting its earnings targets and keeping margins steady as it builds the businesses.
For 2027, the forecast calls for management-fee revenue to increase by at least 15%. Apollo's spread-related earnings goal is a 10% increase, conditional on an 11% return on alternative investments.
The outlook follows a strong third quarter. Apollo’s results put fee-related earnings at $802 million ($1.28 per share), 23% higher than a year earlier. The company called the figure a record. Spread-related earnings, excluding notable items, came to $909 million ($1.46 per share), also a record. The asset base totaled $1.074 trillion as of Sept. 30, an 18% annual increase; Apollo drew $53 billion in the quarter.
Apollo also reported $844 million in spread-related earnings, down from $871 million a year earlier; that figure is separate from the $909 million result excluding notable items. Apollo’s third-quarter results also showed a $1.06 billion loss tied to unrealized valuation declines, covered in EconoTimes’ earlier report on the results.
On the earnings call, Rowan said the investment backdrop carried high valuations and elevated risks. He said Apollo was steering credit toward senior-secured assets and cutting leverage in equity investments. Apollo President Jim Zelter said the company would remain ready to pursue opportunities.
Alongside the 2027 target, Apollo kept its existing 2026 growth objectives in place.
