Apollo Global Management Investor Day Presentation Deck slide image

Apollo Global Management Investor Day Presentation Deck

FAQ: Are Athene Management Fees Paid by Athene to Apollo Truly Management Fees? ● ATHENE MERGER DID NOT CHANGE CHARACTERISTICS OF FEE EARNINGS STREAM TO APOLLO Athene has generated strong net profitability due to its active asset management partnership with Apollo ● PAID FOR PERFORMANCE Strong ROE generation drove a 17% CAGR¹ in Athene's adj. book value per share since inception ~30 bps of asset outperformance generated, net of fees² FAIRLY PRICED Athene's fees are in-line with the market for scope of services provided • In addition to direct asset management, Apollo provides M&A transaction diligence & structuring, capital markets support, advisory and operational support, AUM management, etc. ● ● EXTERNALLY VALIDATED Market reception of strategic capital sidecar validates our strategy Third-party capital vehicle (ADIP) pays the same fee rate Athene pays, plus a fronting fee to Athene for its sourcing capabilities >$7B of high-grade alpha AUM in separately managed accounts for third-party insurance clients 1. As of December 31, 2021. 2. Net asset yield calculated based on average stat investment yield on bonds and mortgages disclosed in annual U.S. life insurance statutory fillings. Stat investment yield reduced for each company's respective investment fees and expenses approximated by taking annual GAAP investment expenses divided by average GAAP invested assets. Athene's stat investment yield was adjusted to include assets in Bermuda entities and separate accounts backing pension risk transfer transactions, and to back out the impact of the larger Lincoln and Jackson National block trades during their respective 12 months deployment periods, as well as the impact of PRT transactions >$750mm that closed in December on yields in the year that they closed. APOLLO RETIREMENT SERVICES BUSINESS UPDATE 2022 141
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