Apollo Global Management Investor Presentation Deck
Valuation Framework: Sum-of-the-Parts (SOTP)
SOTP approach utilizes three components to derive current fair value for APO
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FEE RELATED
EARNINGS ("FRE")
VALUE
BALANCE
SHEET VALUE
PERFORMANCE FEE
INCOME VALUE
FAIR VALUE OF APO
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Value FRE at a target price-to-earnings multiple that reflects growth & margin
profile
~90% of fee related revenues from management fees
Growing base of permanent capital vehicles or long-dated funds (more than 90%
of AUM)
Improving margin with operating leverage
Value net cash, debt, preferred equity, and investments at target price-to-
book multiple
Investment portfolio currently comprised of fund co-investments and strategic
investments supporting permanent capital vehicles
Value performance fee receivable and future performance fee income using
assumptions in a discounted cash flow construct
Apply a terminal value to account for franchise value including future fundraising
activity
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Sample sum-of-the-parts valuation methodology is provided for illustrative purposes only and is based on a variety of assumptions. In addition, the performance of APO is subject to a variety of risks and uncertainties, including
market and event driven situations, any or all of which may significantly impact the APO share price, as well as numerous other risks set forth in Apollo's Form 10-K filed with the SEC on February 19, 2021, as such risks may be
updated from time to time in Apollo's periodic filings with the SEC. There can be no assurance the APO share price will achieve the implied price levels presented herein. Furthermore, investors should not use the content in this
presentation to make investment decisions and this presentation does not constitute an offer to buy, sell or hold any security.
APOLLO
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