Apollo taps AI financing boom with record origination
Private markets expand as technology investment reshapes capital allocation
Apollo originated a record $114 billion of assets in the third quarter as demand for AI-related financing helped drive activity across its private credit platform.
It comes as investors are pouring capital into AI infrastructure, creating huge financing opportunities for private credit firms competing with banks.
Marc Rowan, chairman and chief executive officer at Apollo Global Management, said the firm's growing origination engine was driving earnings and positioning it for future growth.
"Our strong third quarter results reflect the flywheel of our model, which starts with originating increasing amounts of good assets," he said. "Origination reached a new high of $114 billion in the quarter, and over the last twelve months, activity exceeded $350 billion while our clients entrusted us with $270 billion of inflows."
The alternative asset manager reported $1.07 trillion in assets under management at the end of September, following $53 billion of quarterly inflows and $270 billion over the previous 12 months. Fee-related earnings rose 23% year on year to a record $802 million.
Apollo said adjusted net income reached $1.3 billion for the quarter despite a GAAP net loss caused largely by mark-to-market investment movements linked to higher interest rates.
The group's asset management business benefited from rising institutional demand for credit strategies, while capital solutions fees climbed 37% to a record $290 million as transaction activity increased.
Apollo has become one of Wall Street's biggest lenders to the AI economy, providing financing for data centres, power infrastructure and digital networks needed to support large-scale AI deployment. Private capital groups including Blackstone, KKR and Ares Management are also expanding AI-focused lending strategies as technology companies seek alternatives to traditional bank financing.
The results underline how the AI infrastructure buildout is creating a new generation of long-duration financing opportunities for alternative asset managers.