Apollo Global Management has $13 billion in dry powder for investments, but has seen its revenue from deal fees drop dramatically from $145 million in 2008 to just $56 million last year.
Apollo filed documents with the US Securities and Exchange Commission this week for an initial public offering of up to $50 million on the New York Stock Exchange. The documentation included detailed information about the operations of the firm, founded in 1990.
Apollo has about 35.6 million shares listed on a private exchange run by Goldman Sachs. The firm did not disclose how many shares it wants to sell or the offer price. Two of the firm's biggest shareholders are the California Public Employees' Retirement System, the biggest pension in the US, and the Abu Dhabi Investment Authority, both of which invested a total of $1.2 billion in Apollo in 2007.
Apollo has $34 billion of assets under management in its private equity group. The firm has $13 billion of uncalled commitments. Since inception, it has invested $30.7 billion, and has achieved a net internal rate of return of 26 percent.
The firm’s private equity funds, with the exception of its most recent Fund VII, have generated a 2.3x average multiple of invested capital, the firm said.
As deal flow dried up in 2009, the firm saw a decrease in transaction fees, but also paid out less in placement fees. Apollo paid $12 million in placement fees in 2009, compared to $51 million in 2008.
The filing also provides compensation information for Apollo’s executive management. Leon Black, chairman and chief executive officer, was paid a base salary of $100,000 in 2009, plus $687,391 in other compensation. Other compensation includes about $512,539 in carried interest Black earned from some Apollo funds, and also $140,202 in costs for cars and drivers for Black’s business and personal use, the filing said.
Also included in Black’s compensation is $26,400 for “tickets to sporting events” for Black’s personal use, the filing said.
The highest paid executive was James Zelter, managing director in Apollo’s capital markets business. Zelter made $12 million last year, which included no base salary, a $4 million bonus, and $7 million in carried interest estimates on unrealised investments. That amount could change depending on the performance of the investments, Apollo said in the filing.
Earlier this month, Kohlberg Kravis Roberts began preparing a listing on the NYSE to register 204.9 million shares valued at about $2.21 billion, representing about 30 percent of the firm. KKR, which is already registered on the Amsterdam-based Euronext, will allow its Guernsey shareholders to swap their holdings for units in the US-based firm. KKR's principals with ownership stakes will continue to hold 70 percent of the firm.