Performance watch: How Apollo’s PE vehicles fared in Q1 2020

We examine the firm's private equity funds in the latest instalment of a special series looking at quarter-on-quarter performance amid the downturn.

The latest quarterly reporting from private equity’s listed giants offers a window into how the market has fared against coronavirus-related turmoil and a rout in oil prices.

We examine Apollo Global Management‘s private equity funds in a special series of Private Equity International‘s Performance Watch, which compares the firm’s first quarter 2020 figures with those from the prior three months.

Apollo’s private equity portfolio depreciated 21.6 percent in the first quarter due to markdowns across public and private portfolio company holdings. Private equity AUM decreased 12 percent quarter-over-quarter to $68 billion.

The firm is facing $965.4 million in clawback obligations across several funds, including Fund VIII, which was generating a 7 percent net internal rate of return at quarter-end.

“Fund IX has obviously shifted almost entirely into credit, distressed-for-control, stressed investing, and we’ve seen the pace of that fund go up significantly in the last month-and-a half,” co-founder Josh Harris said during the firm’s earnings call in May. Meanwhile, its $24.7 billion Fund IX has shifted focus almost entirely to distressed-for-control transactions in response to the pandemic.

The interactive charts below depict four of the firm’s private equity fund families based on its two previous quarterly earnings reports. The bubbles are sized proportionately to the size of the fund; toggle between the tabs to see how their performance differed between quarters.