AP Alternative Assets Releases Financial Results for the Three Months and Full Year Ended December 31, 2012

Thu Feb 7, 2013 10:30pm EST

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--Net Asset Value of $20.73 per unit as of December 31, 2012--
GUERNSEY, Channel Islands--(Business Wire)--
Regulatory News: 

AP Alternative Assets, L.P. ("AAA", Euronext Amsterdam: AAA) today released its
financial results for the three months and full year ended December 31, 2012.
AAA invests its capital through, and is the sole limited partner of, AAA
Investments, L.P., which is referred to as the "Investment Partnership." 

Highlights

* On October 31, 2012, AAA consummated a significant transaction in which AAA
contributed substantially all of its investments to Athene Holding Ltd.
("Athene") in exchange for common shares of Athene, cash and a short term
promissory note. 
* Net asset value at December 31, 2012 was $1,662.9 million, or $20.73 per unit,
representing an increase of $131.1 million, or $1.63 per unit during the quarter
and an increase of $183.3 million, or $4.32 per unit during the year ended
December 31, 2012.

Significant Corporate Transaction

On October 30, 2012 AAA announced that as a result of a strategic review
requested by the Board of Directors of AAA Guernsey Limited (the "Board"), in
its capacity as general partner of AAA, it agreed upon a strategic plan intended
to accelerate the ultimate delivery of value to its unitholders. As part of this
strategic plan, AAA entered into a definitive agreement to contribute
substantially all of its investments to Athene (see "About Athene" below) in
exchange for common shares of Athene, cash and a short term promissory note (the
"Transaction"). 

As part of the Transaction, which was consummated on October 31, 2012, the
transfer of certain of AAA`s investments (which investments have transaction
value of approximately $25 million as of December 31, 2012) to Athene will be
delayed pending the receipt of required regulatory consents, and the appropriate
portion of the consideration to be paid to AAA in Athene shares will not be paid
by Athene until the time of such transfer. In connection with the Transaction,
the Investment Partnership received approximately 46.8 million non-voting common
shares of Athene, cash of $82.9 million and a promissory note with a principal
amount of approximately $113.3 million, in exchange of investments with a fair
value of approximately $1,114.3 million. The impact of the contribution resulted
in a recognized gain of approximately $178.3 million, which excludes the impact
of the assets that were not transferred pending regulatory approval discussed
above. 

Following the completion of the Transaction, Athene is AAA`s only material
portfolio asset and AAA is the largest shareholder of Athene with an ownership
stake of approximately 77% as of December 31, 2012. Subsequent to year end,
Athene called additional capital from other investors, and as a result AAA's
ownership of Athene was reduced to approximately 72%. The Board also has
approved the removal of the diversification requirements within AAA`s Investment
Policies and Procedures (having received the requisite approval of the
independent directors to do so) so that AAA can have Athene as its only
investment. 

Apollo Alternative Assets, L.P., a subsidiary of Apollo Global Management, LLC
(collectively with its subsidiaries, "Apollo") and the manager of AAA, intends
to pursue actively one or more strategies to dispose of the Athene shares held
by AAA, including by selling such shares, distributing such shares to AAA
unitholders through a share tender offer or other alternatives. 

Net Asset Value for AAA

At December 31, 2012, AAA had net assets of $1,662.9 million, including its
share of the net assets of the Investment Partnership, as follows:

                                                           
 (in $ millions, except per unit amounts    Net Asset      
                                            Value as of    
                                            December 31,   
                                            2012           
 Gross Asset Value:                                        
 Cash                                       $18.7          
 Note Receivable from Affiliate             113.3          
 Private Equity Co-investments              25.0           
 Apollo Life Re Ltd.                        1,579.0        
 Other1                                     (73.1)         
 Net Asset Value                            $1,662.9       
 Net Asset Value per Unit                   $20.73         
 Net Common Units Outstanding               80,215,738     
                                                           


1 Includes Other Opportunistic Investment, Other Assets & Liabilities and
General Partner Interest. General Partner Interest is primarily comprised of
unrealized carry receivable of $69.0 million at December 31, 2012.

Annual Report

AAA today published its Annual Report for 2012 which can be downloaded free of
charge from its website at www.apolloalternativeassets.com. 

Conference Call

AAA will host a conference call on Friday, February 8th, 2013, at 2:00 p.m. CET
(Amsterdam) / 1:00 p.m. GMT (London) / 8:00 a.m. EST (New York). During this
call, members of Athene`s senior management team, including Jim Belardi,
Chairman & Chief Executive Officer, and Grant Kvalheim, President & Chief
Financial Officer, will review information relating to Athene. In addition, Marc
Rowan, Senior Managing Director of Apollo Global Management, LLC; Barry
Giarraputo, Chief Financial Officer; and Gary Stein, Head of Corporate
Communications will discuss AAA and review the company`s financial results for
the fourth quarter and full year of 2012. All interested parties are welcome to
participate. You can access this call by dialing 20-718-8506 within The
Netherlands or +31-20-718-8506 outside of The Netherlands. Please dial in
approximately 5 to 10 minutes prior to the call. When prompted, callers should
reference "AAA Earnings". 

A presentation will be referenced during the call and will be available on the
company`s website at http://www.apolloalternativeassets.com prior to the
conference call. 

The company will take questions via email, either in advance or during the call,
at inquiries@apolloalternativeassets.com. 

An archived replay of the conference call will be available through March 8,
2013, via the company`s website at www.apolloalternativeassets.com. 

About AAA

AAA was established by Apollo Global Management, LLC and its affiliates
("Apollo") and is a closed-end limited partnership established under the laws of
Guernsey. Apollo is a leading global alternative investment manager with 22
years of experience investing across the capital structure of leveraged
companies. AAA is managed by Apollo Alternative Assets, L.P. For more
information about AAA, please visit www.apolloalternativeassets.com. 

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking
statements involve risks and uncertainties because they relate to future events
and circumstances. Such statements are based on currently available operating,
financial and competitive information and are subject to various risks and
uncertainties that could cause actual results and developments to differ
materially from the historical experience and expressed or implied expectations
of AAA. Undue reliance should not be placed on such forward-looking statements.
Forward-looking statements speak only as of the date on which they are made and
AAA does not undertake to update its forward-looking statements unless required
by law. 

Financial Schedules Follow

The following financial schedules are extracts only from the Annual Report for
2012 which can be downloaded free of charges from AAA`s website at
www.apolloalternativeassets.com.

 Financial Schedule I                                                                                                                        
                                                                                                                                             
 AP ALTERNATIVE ASSETS, L.P.                                                                                                                 
 STATEMENT OF OPERATIONS                                                                                                                     
 (in thousands)                                                                                                                              
                                                                                                   For the               For the             
                                                                                                   Year Ended            Year Ended          
                                                                                                   December 31, 2012     December 31, 2011   
 INVESTMENT INCOME (LOSS) (ALLOCATED FROM AAA INVESTMENTS, L.P.)                                                                             
 Interest, dividends and gains from short-term investments                                         $ 28,925              $ 38,136            
 Expenses                                                                                          (38,311)              (34,256)            
                                                                                                   (9,386)               3,880               
                                                                                                                                             
 EXPENSES                                                                                                                                    
 General and administrative expenses                                                               (2,578)               (2,549)             
                                                                                                                                             
 NET INVESTMENT (LOSS) INCOME                                                                      (11,964)              1,331               
                                                                                                                                             
 REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENTS (ALLOCATED FROM AAA INVESTMENTS, L.P.)                                              
 Net realized gains from sales/dispositions on investments                                         46,502                22,948              
 Net change in unrealized appreciation/depreciation on investments                                 251,024               (150,774)           
                                                                                                                                             
 NET GAIN (LOSS) FROM INVESTMENTS                                                                  297,526               (127,826)           
                                                                                                                                             
 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS                                   $ 285,562             $ (126,495)         
                                                                                                                                             


 Financial Schedule II                                                                                                                                                  
                                                                                                                                                                        
 AP ALTERNATIVE ASSETS, L.P.                                                                                                                                            
 STATEMENT OF ASSETS AND LIABILITIES                                                                                                                                    
 (in thousands, except per unit amounts)                                                                                                                                
                                                                                                                                        As of            As of          
                                                                                                                                        December 31,     December 31,   
                                                                                                                                        2012             2011           
 ASSETS                                                                                                                                                                 
 Investment in AAA Investments, L.P. (cost of $1,561,154 and $1,662,999 at December 31, 2012 and 2011, respectively)                    $ 1,666,448      $ 1,480,152    
 Other assets                                                                                                                           296              327            
 TOTAL ASSETS                                                                                                                           1,666,744        1,480,479      
                                                                                                                                                                        
 LIABILITIES                                                                                                                                                            
 Accounts payable and accrued liabilities                                                                                               651              727            
 Due to affiliates                                                                                                                      3,224            229            
                                                                                                                                                                        
 NET ASSETS                                                                                                                             $ 1,662,869      $ 1,479,523    
                                                                                                                                                                        
 NET ASSETS CONSIST OF:                                                                                                                                                 
 Partners` capital contribution, 80,215,738 and 90,183,200 net common units outstanding at December 31, 2012 and 2011, respectively)    $ 1,683,764      $ 1,783,810    
 Partners` capital distributions                                                                                                        (112,309)        (110,139)      
 Accumulated increase (decrease) in assets resulting from operations                                                                    91,414           (194,148)      
                                                                                                                                                                        
                                                                                                                                        $ 1,662,869      $ 1,479,523    
                                                                                                                                                                        
 Net asset value per common unit                                                                                                        $ 20.73          $ 16.41        
                                                                                                                                                                        
 Market price per common unit                                                                                                           $ 14.80          $ 8.45         
                                                                                                                                                                        


 Financial Schedule III                                                                                         
                                                                                                                
 AAA INVESTMENTS, L.P.                                                                                          
 STATEMENT OF OPERATIONS                                                                                        
 (in thousands)                                                                                                 
                                                                      For the Year Ended    For the Year Ended  
                                                                      December 31, 2012     December 31, 2011   
 INVESTMENT INCOME:                                                                                             
 Interest, dividends and gains from short-term investments            $ 28,941              $ 38,157            
                                                                                                                
 EXPENSES:                                                                                                      
 Management fees                                                      (13,689)              (17,745)            
 General and administrative expenses                                  (24,636)              (16,520)            
                                                                                                                
 NET INVESTMENT (LOSS) INCOME                                         (9,384)               3,892               
                                                                                                                
 REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENTS                                                        
 Net realized gains from sales/dispositions on investments            46,528                22,960              
 Net change in unrealized appreciation/depreciation on investments    308,286               (141,348)           
 NET GAIN (LOSS) FROM INVESTMENTS                                     354,814               (118,388)           
                                                                                                                
 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS      $ 345,430             $ (114,496)         
                                                                                                                


 Financial Schedule IV                                                                                                                                                                  
                                                                                                                                                                                        
 AAA INVESTMENTS, L.P.                                                                                                                                                                  
 STATEMENT OF ASSETS AND LIABILITIES                                                                                                                                                    
 (in thousands)                                                                                                                                                                         
                                                                                                                                              As of                 As of               
                                                                                                                                              December 31, 2012     December 31, 2011   
 ASSETS                                                                                                                                                                                 
 Investments:                                                                                                                                                                           
 Investment in Opportunistic Investment at fair value (cost of $1,276,366 in 2012 and $358,241 in 2011)                                       $ 1,578,954           $ 430,800           
 Co-investments - Apollo Investment Fund VI and Apollo Investment Fund VII at fair value (cost of $177,153 in 2012 and $1,026,471 in 2011)    25,050                903,745             
 Investment in Apollo Strategic Value Offshore Fund, Ltd. at fair value (cost of $0 in 2012 and $105,889 in 2011)                             -                     164,811             
 Investment in Other Apollo Credit Funds at fair value (cost of $0 in 2012 and $332,776 in 2011)                                              -                     166,959             
 Investment in Other Opportunistic Investment at fair value (cost of $0 in 2012 and $12,953 in 2011)                                          -                     12,214              
 Total Investments                                                                                                                            1,604,004             1,678,529           
                                                                                                                                                                                        
 Cash and cash equivalents                                                                                                                    18,661                229,892             
 Note receivable from affiliate                                                                                                               113,264               -                   
 Other assets                                                                                                                                 354                   2,349               
 Due from affiliates                                                                                                                          3,224                 3,002               
 TOTAL ASSETS                                                                                                                                 1,739,507             1,913,772           
                                                                                                                                                                                        
 LIABILITIES                                                                                                                                                                            
 Borrowings under credit facility                                                                                                             -                     402,500             
 Accounts payable and accrued liabilities                                                                                                     1,268                 1,228               
 Due to affiliates                                                                                                                            1,830                 6,944               
 NET ASSETS                                                                                                                                   $ 1,736,409           $ 1,503,100         
                                                                                                                                                                                        
 NET ASSETS CONSIST OF                                                                                                                                                                  
 Partners' capital                                                                                                                            $ 1,539,673           $ 1,651,794         
 Accumulated increase (decrease) in net assets resulting from operations                                                                      196,736               (148,694)           
                                                                                                                                                                                        
                                                                                                                                              $ 1,736,409           $ 1,503,100         
                                                                                                                                                                                        


AP Alternative Assets:
Barry Giarraputo +1 (212) 515 3478
or
Press Contact:
Ed Gascoigne-Pees +44 (0) 207 269 7132 

Copyright Business Wire 2013

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