apollo athene merger presentation

Apollo-Athene Merger Through Our Lens Si vous ne souhaitez pas que nos partenaires et nousmmes utilisions des cookies et vos donnes personnelles pour ces motifs supplmentaires, cliquez sur Refuser tout. , CEO of Athene. While controversial rumors have persistently surrounded Mr. Leon Black, the founder, the former Chairman and CEO, and the controlling shareholder (together with two other Managing Partners - Messrs. Marc Rowan - the current CEO, and Joshua Harris), the success is beyond any doubt. For example, since the merger announcement, only one APO-focused article has been posted on SA. Apollo's merger with Athene highlights PE's rush for permanent capital, Banking Essentials Newsletter: 28th June Edition. Athene investors aren't getting the short end of the stick unless some lucrative financial deals are still going on behind the curtains. Apollo undertakes 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. 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. Athene : Apollo Completes Merger with Athene and Finalizes Key Apollo expects them to double to about a trillion dollars by Apollo, Athene To Merge In All-Stock Transaction - Bernews Athene shareholders weren't seeing the rewards of their investments at levels they thought possible. Apollo acquired its own creation, Athene, to build something beyond asset management and life insurance. While controversial rumors have persistently surrounded Mr. Leon Black, the founder, the former Chairman and CEO, and the controlling shareholder (together with two other Managing Partners - Messrs. Marc Rowan - the current CEO, and Joshua Harris), the success is beyond any doubt. Lees ons privacybeleid en cookiebeleid voor meer informatie over hoe we je persoonlijke gegevens gebruiken. The company's shares were up nearly 19% in premarket trade, while Apollo was up 4.7%. Apollo Asset Management will continue to be led day-to-day by its Co-Presidents Long-term, the merged company is attractive far beyond this. The all-stock transaction implies a total equity value of roughly $11 billion for Athene. By Rachel Curry. (Source: Bloomberg) The merger of Apollo and Athene combines two growth companies providing products and services that are in high demand - investment returns and retirement income. A supplemental presentation . Get reinsurance news by email here. It gave up its dual class share structure and adopted a one share one vote plan. Will the merger create a financial empire? The private equity firm said last month it would look into changing its corporate governance structure, getting rid of shares with special voting rights that currently give Black and other co-founders effective control of the firm. Part of FGAUM is carry-eligible as well. I wrote this article myself, and it expresses my own opinions. Apollo and Athene have entered into an agreement to merge in an all-stock transaction that "implies a total equity value of approximately $11 billion for Athene," it has been . Please. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); The global property information, analytics, and data-enabled solutions company, CoreLogic, , AM Best has upgraded the credit ratings of the subsidiaries , Barnett Waddingham (BW), a leading independent UK professional services consultancy . "Athene, Apollo combined is a prime . We have 220,000+ readers every month & 25,000+ email subscribers. 07337195 RT=Real-Time, EOD=End of Day, Apollos management seems to have been well aware of this issue for some time. Athene accounts for about 40% of Apollo's AUM and generates 30% of its fee-related earnings revenue, Apollo CEO Marc Rowan told analysts on the day the merger was announced. Global Head of Corporate Communications, Apollo. Head of Marketing & Corporate . Athene and Apollo Merger Presentation - Athene Holding EX-99.2 - SEC.gov 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. This press release does not constitute an offer of any Apollo fund. Athene shares higher on all stock deal at $11B valuation with Apollo $APO. /marketintelligence/en/news-insights/latest-news-headlines/apollo-s-merger-with-athene-highlights-pe-s-rush-for-permanent-capital-63263065 Asteward@athene.com. 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. This will in turn hold down valuations and prevent the equity price from reflecting the true value of the firm. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. those assets are especially attractive to Apollo. The deal was the brainchild of Apollo CEO Mark Rowan. 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. Apollo Global: Athene Merger Is The Right Strategy - Seeking Alpha 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. I do not believe anybody can evaluate creative credit strategies better than Apollo and Apollo is completely confident as evidenced by the merger. However, logic or not, I would be holding a bigger stake in APO/ATH was not for this risk - the opportunity seems very appealing. The Apollo-Athene Merger Will Unlock Value (NYSE:APO) It announced March 8 that it would merge with Athene Holding Ltd., the life insurance business it helped create in 2009 and for which it manages the majority of its asset base, bringing in fees for doing so. IR@apollo.com. Latest Apollo Global Management Inc News and Updates. We can assume that Athene's part of the merged company will post 12% earnings growth in line with the expected after-tax 12% ROE. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. First of all, several changes and developments will make new APO more investable and appealing to a broader investor base: Secondly, APO's post-merger return potential appears quite lucrative. To see how cookies are used, please review our cookie notice. New APO will institute a competitive dividend initially at $1.60 per share or close to a 2+% yield. Apollo Global Management (APO) Stock: Transformative Merger With Athene APOLLO GLOBAL: THE NEW BERKSHIRE HATHAWAY? It is possible that actual results will differ, possibly materially, from the anticipated results indicated in these statements. This theoretical argument is supported by multi-year Apollo's results. In addition to the changing sources of funding, Apollo is also slowly changing how that capital gets deployed. However, if calls for greater regulation were to gain political traction, Apollos stock would need to be re-evaluated. 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. Get this delivered to your inbox, and more info about our products and services. Apollo Completes Merger with Athene and Finalizes Key - GlobeNewswire Apollo Co-founder to Step Down After Merger With Athene I have no business relationship with any company whose stock is mentioned in this article. In return, ATH receives assets that APO invests and manages on its behalf. That being of traveling all over the world, cap in hand, pitching all manner of pension funds, sovereign wealth funds, and other institutional investors. Global Head of Investor Relations, Apollo This could bite investors in the butt, but that's just me. and comprised of a highly qualified, diverse, and two-thirds independent group of directors representing both parts of the business. Global Head of Corporate Communications, Apollo I wrote this article myself, and it expresses my own opinions. "I think a lot of it comes down to where companies think of their expertise may be. Presentations :: Apollo Global Management, Inc. (APO) It could be resources, it could be some companies want to do it, but they just want to build it maybe in a more organic way. Market Data copyright 2023 QuoteMedia. For years, Brookfield Asset Management Inc. (BAM) was dogged by criticisms of the way in which its byzantine structure prevented investors, who are after all the owners of the firm, from fully understanding how it was being managed. "Different companies have different appetites for how much capital they do or don't want to commit to it and they have to [also] go with whatever they think their area of expertise is," KBW analyst Robert Lee said in the days following the announcement. In the case of Carlyle and Fortitude Reinsurance Company Ltd., which is a more diversified insurance company with a broader range of products, not just annuities or life insurance, Lee said: "They may think, well, there's other things out there, and we're not interested in building an origination capability, but we think we can manage a broader array of insurance blocks more effectively.". Ph. Apollo Merger the Result of Improved Progress at Athene On the bright side, the pending merger with asset manager Apollo looks set to close (as planned) in early-1Q22. This should be beneficial to the firm over the long term. The hope is that will eventually lead to Apollo's inclusion in the S & P 500. Athene was created during a fiscal crisis. Watch What Apollo Got From Merging With Athene - Bloomberg Jim Zelter FGAUM are long-lived assets with some of them being almost permanent in nature. Those retirement savings products favorite by risk averse customers. Top Global Insurance & Reinsurance Brokers, CoreLogic integrates with Databricks Marketplace to expand accessibility, AM Best upgrades ratings of Odyssey Group Holdings subsidiaries, Barnett Waddingham advises Chubb Trustees to insure 1bn of liabilities with Standard Life. View this Presentation PDF Format Download (opens in new window) PDF 1.30 MB Listen to this Presentation Audio Format Download (opens in new window) Watch this Presentation Video Format Download (opens in new window) . Under the terms of the deal, each outstanding class A common share of Athene will be exchanged for 1.149 shares of Apollo common stock, representing a premium of about 16.5% to Athene's closing share price on Friday. May. 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). Here's what Apollo gets out of the deal. In January Apollo closed its eleven billion dollar all stock The proposed transaction will be submitted to the stockholders of Apollo and the shareholders of Athene for their respective consideration. Jim Zelter Dcouvrez comment nous utilisons vos donnes personnelles dans notre Politique de confidentialit et notre Politique relative aux cookies. Insiders of both APO and ATH will own about a third of the combined company. As of September 30, 2021, Apollo had approximately $481 billion of assets under management. mesurer votre utilisation de nos sites et applications. The merged entity would create a $29 billion pro forma market cap company, based on the March 5 close, that is expected to be eligible for S&P 500 inclusion. Apollo's main business is managing other people's money with big financial institutions (sovereign funds, insurers, retirement funds, endowments) representing "other people". Athene resembles reinsurers affiliated with hedge funds (in particular, Third Point Re and Greenlight Re (GLRE)) that have been facing investors' skepticism as well. NEW YORK - January 3, 2022 - Apollo and Athene today announced the successful completion of their merger under Apollo Global Management, Inc. (NYSE: APO), a high-growth alternative asset manager with asset management and retirement services capabilities. Mathematician and author Hannah Fry investigates patterns in human behavior, AI and the creative ideas behind the organizations and pioneers transforming society. 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. March 8, 2021. Apollo Reports Its First After-Merger Quarter: Buy It Now - Seeking Alpha May 20, 2021. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. To see how cookies are used, please review our cookie notice.If you agree to our use of cookies, please continue to use our site. Still, doubts remain because one bad year can wipe out a decade. 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. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in other filings. The table does not account for 3 additional quarters of separate earnings before the merger that is likely to increase the combined company's value. To value stand-alone APO we used 6-10% of its FGAUM from Q1 21 earnings materials. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Marc Rowan 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 . Thank you Mr. Steinberg for shedding light on this complexity. EX-99.8 - SEC.gov merger with a theme holding it had already own 35 percent of the insurer. 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. For Media: Joanna Rose. 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. Wanneer u onze sites en apps gebruikt, gebruiken we, gebruikers authenticeren, veiligheidsmaatregelen toepassen en spam en misbruik voorkomen, en, gepersonaliseerde advertenties en content weergeven op basis van interesseprofielen, de effectiviteit meten van gepersonaliseerde advertenties en content, en, onze producten en services ontwikkelen en verbeteren. Apollo's incoming CEO, Marc Rowan, came from the Athene side of the operation. The risk calibration that a portfolio of annuity assets requires may also be more suitable to credit markets. Apollo, together with certain of its related parties and employees, owns approximately 35% of the outstanding Athene class A common shares. (212) 822-0491 Jim Belardi YTD, Apollo shares have fallen 0.64 percent. Merger and governance changes will simplify Apollos corporate structure. 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. Jay Clayton . Get in touch directly using our contact form. ATH's adjusted equity on Mar 31, 2021, in billions is $17.3 less $2.02 of AOCI less $1.28 of APO stake. The assets Here's what Apollo gets out of the deal. All Rights Reserved. Athene, in a variation of the strategy pioneered by Warren Buffet through Berkshire Hathaway Inc.s (BRK.B) Geico subsidiary. Apollo merges with retirement services company Athene in $11b deal I am not receiving compensation for it (other than from Seeking Alpha). April 19th, 2022, 3:33 AM PDT. Entering text into the input field will update the search result below. Right now, APO is trading very close to the midpoint of its historic Market Cap/FGAUM range that reflects APO's stand-alone value only without any noticeable benefits from the merger in the offing. "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.". Perhaps, it is partially explained by Apollo's complexity. Summing up, ATH is primarily a spread business not unlike what life insurers and other retirement specialists are doing but with faster asset growth and excess investment returns. Data delayed Here's what Apollo gets out of the deal. How are you measuring your sustainability progress? On Mar 8, 2021, Apollo ( NYSE: APO) and Athene ( ATH) announced their merger. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. Analysts Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. "Apollo and Athene are world-class franchises that have flourished as strategic partners . Analysts Disclosure: I am/we are long APO, ATH, BAM. If you agree to our use of cookies, please continue to use our site. Data is a real-time snapshot *Data is delayed at least 15 minutes. I have no business relationship with any company whose stock is mentioned in this article. We want to hear from you. 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 asset manager with asset management and retirement services capabilities. 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). 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. The merger should unlock Athene's value and upon closing, Apollo's value is estimated at $74 at midpoint. It should be noted that the merger is at the corporate level and is not the typical deal that Apollo enters into as a General Partner investing through one of its private equity funds. We are excited to continue executing on this plan together, said A complicated transaction (say, retirement liabilities acquisition) will be looked at from the standpoint of a single company instead of two separate companies. "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.". 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%. The capital they were injecting into Athene was going straight toward another stockApollo. 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.
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