apollo athene merger presentation

Over the last few years, the firm. APO also remains a controlled company in the sense that one class of common stock (a single class C share controlled by the trio of Managing Partners) has voting control. The hope is that will eventually lead to Apollo's inclusion in the S & P 500. 15 minutes unless otherwise indicated (view NEW YORK, Jan. 03, 2022 (GLOBE NEWSWIRE) -- Apollo and Athene today announced the successful completion of their merger under Apollo Global Management, Inc. (NYSE: APO), a high-growth alternative . Terms of Use. Seen as a steady provider of fee income it Apollo and Athene are world-class franchises that have flourished as strategic partners, and we expect the full alignment achieved by our merger will accelerate our collective growth, Apollo CEO Marc Rowan explained. That being of traveling all over the world, cap in hand, pitching all manner of pension funds, sovereign wealth funds, and other institutional investors. ET. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. , while Athene will continue to be led by its CEO Get in touch directly using our contact form. dvelopper et amliorer nos produits et services. Source: Apollo Global Management, Inc. Investor Presentation. Nous, Yahoo, faisons partie de la famille de marques Yahoo. Apollo's merger with Athene highlights PE's rush for permanent capital Though it is a corporation now, there are three classes of common stock with a complicated internal structure that includes an operating partnership and plenty of platforms, funds, and companies, both public and private. The combined entity will have a market cap of $29 billion, making it eligible for inclusion in the Standard & Poor 500 index, according to the announcement. Scott Kleinman Scott Kleinman So in March of last year, in a bid to eliminate complicated cross-holdings, align interests, and simplify things; Apollo entered into a deal that saw the multi-class share structure eliminated and which left Apollo holding 34% of the stock. By Rachel Curry. EX-99.8 - SEC.gov This merger, along with other steps being taken to improve the Apollos governance, should rectify the problem and provide Apollo with a path to greater index listings and the accompanying liquidity and rising stock price brought about by such events. . In addition, Apollo expects the enhanced trading profile of its stock to attract a broader and diversified investor base over time. The terms of an all-stock tax-free transaction are straightforward: Athene's shareholders will get 1.149 shares of APO in exchange for 1 share of ATH. Here's what Apollo gets out of the deal. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. If you have an ad-blocker enabled you may be blocked from proceeding. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. EX-99.2 - SEC.gov Will the merger create a financial empire? And by this measure, ATH is grossly undervalued. Feb. 11, 2022. Fully Aligned and Capital Efficient Model Positions Apollo for Differentiated Growth and Returns, Enhanced Liquidity and Trading Profile Expected to Attract Broader, More Diversified Investor Base. Jim Zelter Wij, Yahoo, maken deel uit van de Yahoo-merkenfamilie. Athene was created during a fiscal crisis. Website Privacy & Cookies and Disclaimer. Of course, the merger and the company's recent newsworthy bites might impact the stock's market rate. However, carry is still material - please see the bottom right diagram on the slide below: So, how to value APO to account for the substantial but volatile carry? Athene investors aren't getting the short end of the stick unless some lucrative financial deals are still going on behind the curtains. But while most firms focus on ramping up their exposure to insurance, trend leader Apollo Global Management Inc. is metamorphizing its business due to its early entry into the market. Apollo, together with certain of its related parties and employees, owns approximately 35% of the outstanding Athene class A common shares. This theoretical argument is supported by multi-year Apollo's results. 13, 2022. Currently, they are trading at $57.37 and $62.24 respectively. /marketintelligence/en/news-insights/latest-news-headlines/apollo-s-merger-with-athene-highlights-pe-s-rush-for-permanent-capital-63263065 Get this delivered to your inbox, and more info about our products and services. Apollo has been getting paid lucrative fees by Athene, in which it currently holds a 27% stake. Apollo Global Management (APO) Stock: Transformative Merger With Athene Founded in 2009, Athene also serves as Apollo's partner insurance company and had total assets worth $202.8 billion at the end of 2020, with operations in the United States, Bermuda, and Canada. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. More From Bloomberg Wealth with David Rubenstein. In reality, it is even more controlled: at least until 2021, APO was allegedly tightly ruled by Mr. Black alone with all others, including shareholders, Board, management having a very limited say. For outside investors, ATH seems like an APO's captive insurer with its main mission to supply AUM for Apollo. In the same presentation, Apollos management acknowledges that its complex structure and governance is currently one of its primary disadvantages and that their simplification is one of the main catalysts driving this transaction. All Rights Reserved. Those retirement savings products favorite by risk averse customers. A complicated transaction (say, retirement liabilities acquisition) will be looked at from the standpoint of a single company instead of two separate companies. Head of Marketing & Corporate Communications, Athene While their stocks trade with multiples in the high-teens and mid-twenties, Apollos TTM PE languishes in the mid-single digits making the current changes imperative. Market Intelligence Jan. 14, 2022. I wrote this article myself, and it expresses my own opinions. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to Apollos dependence on certain key personnel, Apollos ability to raise new Apollo funds, the impact of COVID-19, the impact of energy market dislocation, market conditions, and interest rate fluctuations, generally, Apollos ability to manage its growth, fund performance, the variability of Apollos revenues, net income and cash flow, Apollos use of leverage to finance its businesses and investments by Apollo Funds, Athenes ability to maintain or improve financial strength ratings, the impact of Athenes reinsurers failing to meet their assumed obligations, Athenes ability to manage its business in a highly regulated industry, changes in Apollos regulatory environment and tax status, litigation risks and Apollos ability to recognize the benefits expected to be derived from the Merger. Jim Belardi For shareholders, there will be some change to the stock's setup. Apollo Global Management, Inc. (NYSE: APO), Apollo Commercial Real Estate Finance (NYSE: ARI), MidCap Financial Investment Corp. (NASDAQ: MFIC), Apollo Asset Management (NYSE: AAM PrA-B), Apollo Senior Floating Rate Fund (NYSE: AFT). 2026. Apollo's Retirement Services Business Update . In addition to the changing sources of funding, Apollo is also slowly changing how that capital gets deployed. The risk calibration that a portfolio of annuity assets requires may also be more suitable to credit markets. and Apollo Completes Merger with Athene and Finalizes Key Governance Apollos response has been to point out the higher investment returns it generates for insurers and the fact that, while it is true that insurance companies have historically favored very safe investments, the economic environment has changed dramatically in recent years. "What's attractive about this fixed annuity insurance business is there's an enormous addressable market, global addressable market," Jefferies analyst Gerald O'Hara said in an interview. In comparing private equity firms to asset managers primarily dealing in publicly traded securities, some investors may find the private equity space to be more opaque. This press release contains forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Apollo and Athene to Merge in All-Stock Transaction Company Participants James Belardi, Chief Executive Ocer, Chief Investment Ocer, and Co-founder Marc Rowan, Co-Founder and Senior Managing Director Martin Kelly, Chief Financial Ocer and Co-Chief Operating Ocer IN Peter Mintzberg, Head of Investor Relations Other Participants Apollo Completes Merger with Athene and Finalizes Key Governance If you agree to our use of cookies, please continue to use our site. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. . PDF Apollo-Athene Merger Through Our Lens Everything will be under one roof with a unified decision-making process. Apollo and Athene are world-class franchises that have flourished as strategic partners, and we expect the full alignment achieved by our merger will accelerate our collective growth, said Apollo CEO "So we are buying the other approximately 70% of Athene that we don't own through merger, yet we get 100% of the benefit of consolidation.". 9 2021, Published 10:00 a.m. On Mar 8, 2021, Apollo ( NYSE: APO) and Athene ( ATH) announced their merger. [email protected], For Media: The total return for APO from 2011 to 2020, is close to 20% annualized and was delivered as a sum of capital appreciation and ample distributions. We also publish Artemis.bm, the leading publisher of news, data and insight for the catastrophe bond, insurance-linked securities, reinsurance convergence, longevity risk transfer and weather risk management sectors.. Weve published and operated Artemis since its launch 20 years ago and have a readership of around 60,000 every month. The proposed transaction will be submitted to the stockholders of Apollo and the shareholders of Athene for their respective consideration. , has two principal subsidiaries: Apollo Asset Management (formerly Apollo Global Management, Inc.), its alternative asset management business, and Athene, its retirement services business. Entering text into the input field will update the search result below. Alas, at the end of 2020, ATH was trading at $43.14 vs $56.95 of adjusted book value (adjustments are primarily for AOCI and holdings of APO by ATH). The capital they were injecting into Athene was going straight toward another stockApollo. The deal is expected to close in January 2022. Is this happening to you frequently? On Mar 8, 2021, Apollo (NYSE:APO) and Athene (ATH) announced their merger. Apollo Global Management Inc.s (NYSE:APO) proposed merger with Athene Holding Ltd. (ATH) was the logical next step in Apollos permanent capital push. We want to hear from you. The all-stock deal for Apollo and Athene went through after former Apollo CEO Leon Black stepped down from his role. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Noah Gunn "Apollo and Athene are world-class franchises that have flourished as strategic partners . Now, a combined $29 billion market capitalization will put Apollo-Athene on the map as a key financial player in New York and beyond. As a larger and more liquid company with a single class of common stock and industry-leading corporate governance, Apollo is now eligible for inclusion in the S&P 500 index. The rationale for the merger of a life insurance company with a private equity firm has to do with a broader strategy currently being pursued by Apollos management and its CEO and co-founder, Marc Rowan. Apollo's value per share is estimated at $69-$94 depending on how conservative you want to be. Effectively, this merger puts the issue to rest. I am not receiving compensation for it (other than from Seeking Alpha). Insurance companies typically go after much more modest returns Together we articulated an attractive plan to generate $15 billion of deployable capital over the next five years and more than double our fee-related earnings. A Division of NBCUniversal. (Source: Bloomberg). This combination is a competitive differentiator and a growth accelerant, bringing expected benefits to all of our shareholders, policyholders and important stakeholders.. Blackstone also brought in Gilles Dellaert, previously co-president and chief investment officer of retirement and life insurance company Global Atlantic (Fin) Co., to head up Blackstone Insurance Solutions, a part of the business that has the potential to be the firm's single largest business group by AUM, according to a number of the firm's executives. Apollo Reabsorbs Athene in All-Stock Deal That Values Firm at $11 The merger is expected to close in January 2022 with a high probability: there are no visible stumbling blocks and the arbitrage spread is about 5.2-5.3%. Insiders of both APO and ATH will own about a third of the combined company. The full list of representatives can be found in the governance section of https://ir.apollo.com/. If you already hold a stake in Apollo and Athene, the stock-swap deal doesn't inherently devalue your investment. QuoteMedia. Global Head of Corporate Communications, Apollo. 2023 CNBC LLC. Marc Rowan Athene was founded in 2009 when the financial crisis was at its peak. Apollo's merger with Athene highlights PE's rush for permanent capital, Banking Essentials Newsletter: 28th June Edition. Jun. The transaction will also allow Apollo to consolidate 100% of Athenes earnings which is consequential given that, although Apollo currently owns about a third of the company, it doesnt include any portion of Athenes earnings in its EPS reports. Apollo's management is focused on making the right changes to ensure index inclusion. Alternative asset managers "thrive off the illiquidity premium and ability to add value over long periods of time," O'Hara said, adding that the insurance theme is likely to remain a focal point for several or more years to come. The deal is expected to be completed in January 2022. That will give Apollo more options for investing the cash. NEW YORK, Nov. 05, 2021 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) announced today that its special meeting of stockholders will be held on December 17, 2021, at 9:30 a.m., Eastern Time to approve the . Apollo Non-GAAP Measures Update Presentation . The company's shares were up nearly 19% in premarket trade, while Apollo was up 4.7%. , Co-Presidents of Apollo Asset Management. Lorsque vous utilisez nos sites et applications, nous utilisons des, authentifier les utilisateurs, appliquer des mesures de scurit, empcher les spams et les abus; et. D. and MBA. merger with a theme holding it had already own 35 percent of the insurer. Do your sustainability commitments add up to net zero? The last trading day closing prices of Apollo and Athene common stock imply that the combined Apollo opens with a market capitalization of $43 billion. Existing Apollo shareholders will own about 76% of the combined company, and Athene investors will own the rest. Its doing so by adding fixed annuity insurance assets, i.e. I wrote this article myself, and it expresses my own opinions. (515) 342 6473 and comprised of a highly qualified, diverse, and two-thirds independent group of directors representing both parts of the business. those assets are especially attractive to Apollo. Merger and governance changes will simplify Apollos corporate structure. Mar. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Perhaps, it is partially explained by Apollo's complexity. As a result of the merger, the combined entity Apollo Global Management, Inc., led by Chief Executive Officer The mid-point of this range is about $74 which implies 37% of ATH appreciation in 7 months or so. The total return for APO from 2011 to 2020, is close to 20% annualized and was delivered as a sum of capital appreciation and ample distributions. Steve Evans Ltd. registered in England No. We have 220,000+ readers every month & 25,000+ email subscribers. Apollo and Athene to Merge in All Stock Transaction Investor Presentation Until September 2019, APO was a publicly traded partnership generating the dreaded K-1 schedule. announced their merger. Apollo characterizes itself as the leading global alternative investment manager and nobody can dispute it. Previous to last year, Apollo owned a 10% equity stake in Athene but controlled 45% of the voting shares given the multi-class share structure of Athenes equity. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. This combination is a competitive differentiator and a growth accelerant, bringing expected benefits to all of our shareholders, policyholders and important stakeholders.. As a combined public company, we have created a superior model to deliver highly stable and diversified earnings, to accelerate our growth, and to originate the highest quality assets for our clients. I have no business relationship with any company whose stock is mentioned in this article. But while this did not have much of an impact on Brookfields stock price, Apollos situation is very different in that its stock has failed to keep pace with not only Brookfield, but other private equity firms such as KKR & Co. Inc. (KKR) and The Blackstone Group Inc. (BX). Together, we will continue to serve the investment return and retirement savings needs of all our clients., Athene and Apollo have seen tremendous mutual benefit from our longstanding strategic relationship, and now with full alignment our value will be significantly stronger than the sum of our parts, added Jim Belardi, CEO of Athene. I do not believe anybody can evaluate creative credit strategies better than Apollo and Apollo is completely confident as evidenced by the merger. Though we do not see any particular reason for it, this risk always exists and is reflected in approximately a 5% arbitrage spread (the effective spread is actually smaller due to APO's dividends payable before the merger). Apollo believes these factors include but are not limited to those described under the section entitled Risk Factors in the joint proxy statement/prospectus filed by Apollo Global Management, Inc. (formerly known as Tango Holdings, Inc.) with the Securities and Exchange Commission (the SEC) on November 5, 2021, Apollo Asset Management Inc.s (AAM, formerly known as Apollo Global Management, Inc.) Annual Report on Form 10-K filed with the SEC on February 19, 2021 and Quarterly Report on Form 10-Q filed with the SEC on May 10, 2021, and Athenes Annual Report on Form 10-K filed with the SEC on February 19, 2021, its amendment to its annual report on Form 10-K/A filed with the SEC on April 20, 2021 and Quarterly Report on Form 10-Q filed with the SEC on November 8, 2021, as such factors may be updated from time to time in Apollos, AAMs or Athenes periodic filings with the SEC, which are accessible on the SECs website at http://www.sec.gov. Athene : Apollo Completes Merger with Athene and Finalizes Key Together we articulated an attractive plan to generate $15 billion of deployable capital over the next five years and more than double our fee-related earnings. One might expect it to trade close to 1.4 of its (adjusted) book value. Athene (ATH) to Merge With Apollo (APO) in $11B All-Stock Deal The balance sheet earnings net of interest are relatively small and we can focus mostly on FRE and carry. Apollo Announces Special Meeting Date to Approve Proposed Merger All Rights Reserved. Private-equity fund holdings are marked-to-model, a necessity given the nature of their business, but a practice that provides pricing information that can never be as good as the price-discovery process of public markets. The company thought that life insurance was a great thing to capitalize on since credit assets were at their lowest in the new millennium. Or find and follow Reinsurance News on social media. Apollo closed on its $11 billion merger with Athene earlier this year. On March 8, Apollo Global Management (NYSE:APO) announced that it's merging with its . governance. This presentation is being made in respect of the proposed transaction involving Tango Holdings, Inc., a Delaware corporation and a direct wholly owned subsidiary of Apollo ("HoldCo"), Apollo and Athene. , CEO of Athene. I am thrilled to partner with experienced leaders and talented teams within both businesses that will drive our differentiated One Apollo model forward. There are several important risks to keep in mind. Apollo Merges With Athene to Build a Financial Empire. With their ability to provide permanent capital, opportunity to deliver a steady stream of fees, as well as a tool to drive growth, insurance businesses have been hot targets for the alternative asset giants over the past few years. However, logic or not, I would be holding a bigger stake in APO/ATH was not for this risk - the opportunity seems very appealing. To learn more, please visit www.apollo.com. It is possible that actual results will differ, possibly materially, from the anticipated results indicated in these statements. Private-equity giant Apollo announced the acquisition of the portion of Athene Holding it doesn't already own in an all-stock transaction that values the insurance-and-retirement services firm . EX-2.1 - SEC.gov Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Data delayed Things move fast and Apollo today said that its implied market capitalisation is now at around $43 billion, based on the last trading day closing prices of the two firms. Having a larger proportion of its AUM made up of predictable and long-duration insurance assets will free up Apollo from having to raise funds in the manner typical of the private equity industry. Adding 2% of dividend yield, we come up with about 17% of total annual return long-term on top of short-term appreciation related exclusively to re-rating of Athene. First, the merger may never close. No matter how productive APO has been in generating excess yields and finding acquisition targets for ATH, investors remain suspicious. "We will have total alignment to optimize our strategy and allocate capital efficiently," said Marc Rowan, Apollo's incoming chief executive, who helped set up Athene in 2009. For one, they're eliminating a multi-share class system and switching to "one share, one vote.". No recommendation or advice is being given as to whether any investment is suitable for a particular investor. content After Merger, Apollo and Athene Could Be Eligible for S&P 500 Inclusion Athene shares higher on all stock deal at $11B valuation with Apollo $APO. This undervaluation is not accidental. There is a "long-tailed opportunity to acquire fixed annuity blocks at attractive pricing and to infuse better asset management into the equation, modest leverage and achieve double-digit returns. Each outstanding Class A common share of Athene was exchanged for a fixed ratio of 1.149 shares of Apollo stock. This site uses cookies. The sweeping measures now being taken should help Apollo realize its full value in the market. Athene shareholders sued the company because of a fee arrangement that got money for the companies but not the shareholders. I am thrilled to partner with experienced leaders and talented teams within both businesses that will drive our differentiated One Apollo model forward. According to Apollo's merger presentation, Athene is expected to earn $8.19/share in 2021. A sustainable tomorrow starts with actionable intelligence today. Apollo is now eligible for inclusion in the S&P 500 index and said that it hopes the enhanced trading profile of its shares will attract a broader and diversified investor base over time. I worked in executive/management positions for big US companies, then ran my own business for about 15 years, and upon exiting, turned to full-time investing. Is APO the best of the breed in its space? Vous pouvez modifier vos choix tout moment en cliquant sur les liens Paramtres de confidentialit et des cookies ou Tableau de bord sur la confidentialit prsents sur nos sites et dans nos applications.
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