Updated edition 1 - Driven by demand for alternative investments, Apollo's assets under management reach $1.07 trillion.

The article includes commentary from executives and analysts throughout.

Pritam Biswas

Reuters, November 3 - Apollo Global Management (APO.N) reported on Tuesday that it recorded a net inflow of $53 billion in the third quarter, bringing its assets under management to $1.07 trillion. Demand for private credit, insurance, and other alternative investments drove fee-related earnings to a record high.

Shares of the New York-based asset manager fell 3.5% in early trading. The company reported a GAAP loss of $1.06 billion, impacted by unrealized mark-to-market losses due to persistently high interest rates.

These losses do not reflect the firm's actual business performance, as they are non-cash accounting adjustments that fluctuate with market conditions.

Fee-related earnings (FRE) grew 23% in the third quarter, boosted by record quarterly fee-related revenue and expanding margins. Assets under management (AUM) rose 18% from the same period a year earlier.

Adjusted net income per share, excluding significant items, was $2.15 for the three months ended September 30, compared with $2.14 a year ago.

These results highlight the ongoing demand for alternative assets—despite market volatility, economic uncertainty, and valuation concerns, investors continue to seek portfolio diversification and opportunities in private markets for potentially higher returns.

Apollo was founded as a private equity firm in 1990 and has since significantly expanded into credit and insurance. The company reported total capital deployed in the third quarter rose by about 18%.

Driven by attractive investment and lending opportunities, new business volume reached $114 billion, up 52% from a year earlier.

“We are also seeing historic capital deployment in infrastructure, energy, defense, manufacturing, and computing,” said Apollo Global President Jim Zelter.

“Corporates are deploying enormous capital, which creates tremendous opportunities for our broad business expansion,” he added.

Despite ongoing questions about liquidity and the speed of dealmaking, this steady capital flow has allowed major alternative asset managers to expand their fund sizes and assets under management.

With increasingly close scrutiny of valuations for assets that are often less liquid across the industry, Apollo CEO Marc Rowan has pledged to improve transparency and liquidity for private assets.

As of the previous session's close, Apollo shares had fallen 17.5% cumulatively in 2026, but outperformed peers such as Blackstone BX.N, Ares Management ARES.N, and KKR KKR.N.

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Earlier this year, as investors redeemed funds in large volumes, the private credit sector saw a sell-off, and shares of Wall Street alternative asset managers generally declined.

“We view this as a mixed quarter: FRE performance was a bit better, spread-related earnings were a bit weaker, and several key performance indicators (KPIs) were bifurcated,” wrote the Evercore ISI analyst team led by Glenn Schorr in a note.

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