v3.25.4
Variable Interest Entities
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
6. Variable Interest Entities

A variable interest in a VIE is an investment or other interest that will absorb portions of the VIE’s expected losses and/or receive expected residual returns. Variable interests in consolidated VIEs and unconsolidated VIEs are discussed separately below.

Consolidated VIEs

Consolidated VIEs include certain CLOs and funds managed by the Company and other entities where the Company is deemed the primary beneficiary. Consolidated VIEs also include certain investment managers and general partners of the funds managed by the Company. Such investment managers and general partners have other equity investors at risk that do not have the ability to make significant decisions related to the entity’s operations.

The assets of consolidated VIEs are not available to creditors of the Company, and the investors in these consolidated VIEs have no recourse against the assets of the Company. Similarly, there is no recourse to the Company for the consolidated VIEs’ liabilities.

Other assets of the consolidated VIEs include short-term receivables due from investments sold, interest receivables and performance fee allocations. Accounts payable, accrued expenses, and other liabilities of consolidated VIEs include debt, profit sharing payable and other short-term payables.

Results from certain consolidated VIEs are reported on up to a three-month lag based upon the availability of financial information.

Consolidated Variable Interest Entities—Asset Management

The following table presents the investments of the consolidated VIEs:

(In millions)December 31, 2025December 31, 2024
Asset Management
Investments, at fair value$3,078 $2,794 
Equity method investments112 — 
Performance allocations314 12 
Other investments5 — 
Total Investments – Asset Management$3,509 $2,806 

The following table presents net gains (losses) from investment activities of the consolidated VIEs:

Years ended December 31,
(In millions)20252024
2023
Net gains (losses) from investment activities$287 $39 $67 
Net gains (losses) from debt— (8)— 
Interest and other income131 172 176 
Interest and other expenses(114)(113)(113)
Net gains (losses) from investment activities of consolidated variable interest entities$304 $90 $130 
In addition, we recognize revenues and expenses of certain consolidated VIEs within management fees, investment income (loss), compensation and benefits and general, administrative and other. The following table presents revenues, expenses and other gains (losses) related to the activities of these VIEs.

Years ended December 31,
(In millions)20252024
2023
Revenues$121 $51 $22 
Expenses41 77 5 
Other gains (losses) (27)— — 

Included within other liabilities are amounts due to third-party institutions by the consolidated VIEs. The following table summarizes the principal provisions of those amounts:

December 31, 2025December 31, 2024
(In millions, except percentages)Principal OutstandingWeighted Average Interest RateWeighted Average Remaining Maturity in YearsPrincipal OutstandingWeighted Average Interest RateWeighted Average Remaining Maturity in Years
Asset Management
Subscription lines1
$1,443 5.66 %0.24$1,198 6.84 %0.06
Total – Asset Management
$1,443 $1,198 
1 The subscription lines of the consolidated VIEs are collateralized by assets held by each respective vehicle and assets of one vehicle may not be used to satisfy the liabilities of another vehicle.

The consolidated VIEs’ debt obligations contain various customary loan covenants. As of December 31, 2025, the Company was not aware of any instances of non-compliance with any of these covenants.

Consolidated Variable Interest Entities—Retirement Services

The following summarizes the statements of operations activity of the consolidated VIEs:

Years ended December 31,
(In millions)202520242023
Trading securities$209 $152 $102 
Mortgage loans157 128 110 
Investment funds35 46 41 
Investment expenses and other(86)(22)1 
Net investment income315 304 254 
Net recognized investment gains on trading securities
30 17 10 
Net recognized investment gains (losses) on mortgage loans
27 (35)(22)
Net recognized investment gains on investment funds
2,036 1,542 1,228 
Other gains (losses)
62 (6)(29)
Investment related gains (losses)2,155 1,518 1,187 
Revenues of consolidated variable interest entities$2,470 $1,822 $1,441 
Unconsolidated Variable Interest Entities—Asset Management

The following table presents the maximum exposure to losses relating to these VIEs for which Apollo has concluded that it holds a significant variable interest, but that it is not the primary beneficiary.

(In millions)December 31, 2025December 31, 2024
Maximum Loss Exposure1,2
$453 $614 
1 Represents Apollo’s direct investment in those entities in which it holds a significant variable interest and certain other investments. Additionally, cumulative performance allocations are subject to reversal in the event of future losses.
2 Some amounts included are a quarter in arrears.

Unconsolidated Variable Interest Entities—Retirement Services

Athene has variable interests in certain unconsolidated VIEs in the form of securities and ownership stakes in investment funds.

Fixed maturity securities

Athene invests in securitization entities as a debt holder or an investor in the residual interest of the securitization vehicle. These entities are deemed VIEs due to insufficient equity within the structure and lack of control by the equity investors over the activities that significantly impact the economics of the entity. In general, Athene is a debt investor within these entities and, as such, holds a variable interest; however, due to the debt holders’ lack of ability to control the decisions within the structure that significantly impact the entity, and the fact the debt holders are protected from losses due to the subordination of the equity tranche, the debt holders are not deemed the primary beneficiary. Securitization vehicles in which Athene holds the residual tranche are not consolidated because Athene does not unilaterally have substantive rights to remove the general partner, or when assessing related party interests, Athene is not under common control, as defined by U.S. GAAP, with the related parties, nor are substantially all of the activities conducted on Athene’s behalf; therefore, Athene is not deemed the primary beneficiary. Debt investments and investments in the residual tranche of securitization entities are considered debt instruments, and are held at fair value.

Investment funds

Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures.

Equity securities

Athene invests in preferred equity securities issued by entities deemed to be VIEs due to insufficient equity within the structure.

Athene’s risk of loss associated with its non-consolidated investments depends on the investment. Investment funds, equity securities and trading securities are limited to the carrying value plus unfunded commitments. AFS securities are limited to amortized cost plus unfunded commitments.

The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments:

December 31, 2025December 31, 2024
(In millions)Carrying ValueMaximum Loss ExposureCarrying ValueMaximum Loss Exposure
Investment funds$108 $458 $107 $987 
Investment in related parties – investment funds2,149 5,859 1,853 3,226 
Assets of consolidated VIEs – investment funds23,888 29,804 17,660 23,488 
Investment in fixed maturity securities84,397 87,995 72,523 74,797 
Investment in related parties – fixed maturity securities24,184 26,717 17,239 21,793 
Investment in related parties – equity securities266 266 234 234 
Total non-consolidated investments$134,992 $151,099 $109,616 $124,525