v3.25.3
Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segments
18. Segments

The Company conducts its business through three reportable segments: (i) Asset Management, (ii) Retirement Services and (iii) Principal Investing. Segment information is utilized by the Company’s chief operating decision maker (“CODM”) to assess performance and to allocate resources. AGM’s CEO is the CODM, who is also solely responsible for decisions related to the allocation of resources on a company-wide basis.

For each segment, the CODM uses the key measure of Segment Income to allocate resources (including employees, financial or capital resources) to that segment in the annual budget and forecasting process. The performance is measured by the Company’s chief operating decision maker on an unconsolidated basis because the chief operating decision maker makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the affiliated funds.

Segment Income

Segment Income is the key performance measure used by management in evaluating the performance of the asset management, retirement services, and principal investing segments. Management uses Segment Income to make key operating decisions such as the following:

•decisions related to the allocation of resources such as staffing decisions, including hiring and locations for deployment of the new hires;
•decisions related to capital deployment such as providing capital to facilitate growth for the business and/or to facilitate expansion into new businesses;
•decisions related to expenses, such as determining annual discretionary bonuses and equity-based compensation awards to its employees. With respect to compensation, management seeks to align the interests of certain professionals and selected other individuals with those of the investors in the funds and those of Apollo’s stockholders by providing such individuals a profit sharing interest in the performance fees earned in relation to the funds. To achieve that objective, a certain amount of compensation is based on Apollo’s performance and growth for the year; and
•decisions related to the amount of earnings available for dividends to common stockholders and holders of equity-based awards that participate in dividends.

Segment Income is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. Segment Income is the sum of (i) Fee Related Earnings, (ii) Spread Related Earnings and (iii)
Principal Investing Income. Segment Income excludes the effects of the consolidation of any of the related funds, interest and other financing costs related to AGM not attributable to any specific segment, taxes and related payables, transaction-related charges and other non-operating expenses. Transaction-related charges includes equity-based compensation charges, the amortization of intangible assets, contingent consideration, and certain other charges associated with acquisitions, and restructuring charges. Non-operating expenses includes certain charitable contributions and other non-operating expenses. In addition, Segment Income excludes non-cash revenue and expense related to equity awards granted by unconsolidated related parties to employees of the Company, compensation and administrative related expense reimbursements, as well as the assets, liabilities and operating results of the funds and VIEs that are included in the condensed consolidated financial statements.

Segment Income may not be comparable to similarly titled measures used by other companies and is not a measure of performance calculated in accordance with U.S. GAAP. We use Segment Income as a measure of operating performance, not as a measure of liquidity. Segment Income should not be considered in isolation or as a substitute for net income or other income data prepared in accordance with U.S. GAAP. The use of Segment Income without consideration of related U.S. GAAP measures is not adequate due to the adjustments described above. Management compensates for these limitations by using Segment Income as a supplemental measure to U.S. GAAP results, to provide a more complete understanding of our performance as management measures it. A reconciliation of Segment Income to its most directly comparable U.S. GAAP measure of income (loss) before income tax provision can be found in this footnote.

Fee Related Earnings

Fee Related Earnings (“FRE”) is a component of Segment Income that is used to assess the performance of the Asset Management segment. FRE is the sum of (i) management fees, (ii) capital solutions and other related fees, (iii) fee-related performance fees from indefinite term vehicles, that are measured and received on a recurring basis and not dependent on realization events of the underlying investments, excluding performance fees from Athene and performance fees from origination platforms dependent on capital appreciation, and (iv) other income, net, less (a) fee-related compensation, excluding equity-based compensation, (b) non-compensation expenses incurred in the normal course of business, (c) placement fees and (d) non-controlling interests in the management companies of certain funds the Company manages.

Spread Related Earnings

Spread Related Earnings (“SRE”) is a component of Segment Income that is used to assess the performance of the Retirement Services segment, excluding certain market volatility, which consists of investment gains (losses), net of offsets, and non-operating change in insurance liabilities and related derivatives, and certain expenses related to integration, restructuring, equity-based compensation, and other expenses. For the Retirement Services segment, SRE equals the sum of (i) the net investment earnings on Athene’s net invested assets and (ii) management fees received on business managed for others, less (x) cost of funds, (y) operating expenses excluding equity-based compensation and (z) financing costs, including interest expense and preferred dividends, if any, paid to Athene preferred stockholders.

Principal Investing Income

Principal Investing Income (“PII”) is a component of Segment Income that is used to assess the performance of the Principal Investing segment. For the Principal Investing segment, PII is the sum of (i) realized performance fees, including certain realizations received in the form of equity, and (ii) realized investment income, less (x) realized principal investing compensation expense, excluding expense related to equity-based compensation, and (y) certain corporate compensation and non-compensation expenses.
The following presents financial data for the Company’s reportable segments.

Three months ended September 30,Nine months ended September 30,
(In millions)2025202420252024
Asset Management
Management fees1
$863 $710 $2,449 $2,034 
Capital solutions fees and other, net212 159 582 508 
Fee-related performance fee73 57 190 155 
Fee-related compensation (304)(238)(842)(698)
Other operating expenses(192)(157)(541)(490)
Fee Related Earnings652 531 1,838 1,509 
Retirement Services
Fixed income and other net investment income3,423 2,806 9,516 7,893 
Alternative net investment income321 236 955 670 
Strategic capital management fees35 27 96 76 
Cost of funds(2,661)(1,983)(7,341)(5,586)
Other operating expenses(107)(112)(328)(342)
Interest and other financing costs(140)(118)(402)(328)
Spread Related Earnings 871 856 2,496 2,383 
Principal Investing
Realized performance fees201 331 610 600 
Realized investment income18 17 59 42 
Principal investing compensation(155)(253)(511)(464)
Other operating expenses(14)(17)(47)(46)
Principal Investing Income 50 78 111 132 
Segment Income$1,573 $1,465 $4,445 $4,024 

Three months ended September 30,Nine months ended September 30,
(In millions)2025202420252024
Segment Revenue
Asset Management1
$1,148 $926 $3,221 $2,697 
Retirement Services3,779 3,069 10,567 8,639 
Principal Investing219 348 669 642 
Total Segment Revenue$5,146 $4,343 $14,457 $11,978 

(In millions)September 30, 2025December 31, 2024
Segment Assets
Asset Management$5,004 $2,286 
Retirement Services420,289 355,683 
Principal Investing11,344 10,473 
Total Assets$436,637 $368,442 
1 Includes intersegment management fees from Retirement Services of $351 million and $1,070 million for the three and nine months ended September 30, 2025 respectively, and $320 million and $890 million for the three and nine months ended September 30, 2024, respectively.
The following presents the reconciliation of Segment Income and Segment Revenue to income (loss) before income tax (provision) benefit and total revenues reported in the condensed consolidated statements of operations:

Three months ended September 30,Nine months ended September 30,
(In millions)2025202420252024
Segment Income$1,573 $1,465 $4,445 $4,024 
Asset Management Adjustments:
Equity-based profit sharing expense1,5
(35)(41)(103)(180)
Equity-based compensation(112)(72)(313)(230)
Net (income) loss attributable to non-controlling interests in consolidated entities783 975 1,598 1,675 
Unrealized performance fees5
207 (141)298 213
Unrealized profit sharing expense5
(36)65 (98)(129)
HoldCo interest and other financing costs2
(33)(21)(103)(51)
Unrealized principal investment (income) loss5
(4)4 5 14 
Unrealized net (gains) losses from investment activities5
54 13 (300)9 
Transaction-related costs, restructuring and other non-operating expenses3
(86)(60)(432)(178)
Retirement Services Adjustments:
Investment gains (losses), net of offsets463 628 105 482 
Non-operating change in insurance liabilities and related derivatives4
174 (513)(44)363 
Integration, restructuring and other non-operating expenses(36)(204)(98)(265)
Equity-based compensation(13)(12)(35)(36)
Income (loss) before income tax (provision) benefit$2,899 $2,086 $4,925 $5,711 
1 Equity-based profit sharing expense includes stock-based grants that are tied to realized performance within the Principal Investing segment.
2 Represents interest and other financing costs related to AGM not attributable to any specific segment.
3 Transaction-related costs, restructuring and other non-operating expenses includes: (a) contingent consideration, certain equity-based charges, amortization of intangible assets and certain other expenses associated with acquisitions; (b) gains (losses) from changes in the tax receivable agreement liability; (c) merger-related transaction and integration costs associated with Company’s merger with Athene and (d) other non-operating expenses, including the issuance of shares of AGM common stock for charitable contributions. In the nine months ended September 30, 2025, other non-operating expenses includes $200 million in charitable contributions related to the issuance of shares to the Apollo DAF in February 2025.
4 Includes change in fair values of derivatives and embedded derivatives, non-operating change in funding agreements, change in fair value of market risk benefits, and non-operating change in liability for future policy benefits.
5 Represents adjustments that primarily impact the Principal Investing segment.
Three months ended September 30,Nine months ended September 30,
(In millions)2025202420252024
Segment Revenues$5,146 $4,343 $14,457 $11,978 
Asset Management Adjustments:
Adjustments related to consolidated funds and VIEs1
249 190 501 414 
Performance fees2
206 (139)302 219 
Principal investment income (loss)2
2 14 4 28 
Equity awards granted by unconsolidated related parties, reimbursable expenses and other1
248 98 554 317 
Retirement Services Adjustments:
Premiums, product charges, investment related gains (losses) and other retirement services revenue3
2,669 2,198 2,619 5,010 
Change in fair value of reinsurance assets75 11 203 58 
Forward points adjustment on FX derivative hedges(33)(30)(83)(113)
Held-for-trading amortization66 30 135 73 
Reinsurance impacts44 54 123 173 
ACRA non-controlling interests on net investment earnings1,250 1,011 3,483 2,800 
Other retirement services adjustments(99)(7)(113)(126)
Total Revenues$9,823 $7,773 $22,185 $20,831 
1 Represents advisory fees, management fees and performance fees earned from consolidated VIEs which are eliminated in consolidation. Includes non-cash
revenues related to equity awards granted by unconsolidated related parties to employees of the Company and certain compensation and administrative related expense reimbursements.
2 Represents adjustments that primarily impact the Principal Investing segment.
3 Refer to the condensed consolidated statement of operations for a breakout of individual items.

The following table presents the reconciliation of the Company’s total reportable segment assets to total assets:

(In millions)September 30, 2025December 31, 2024
Total reportable segment assets$436,637 $368,442 
Adjustments1
12,906 9,453 
Total assets$449,543 $377,895 
1 Represents the addition of assets of consolidated funds and VIEs and consolidation elimination adjustments.