Apollo's fourth-quarter profit drops 37 percent
NEW YORK Feb 7 (Reuters) - Apollo Global Management LLC reported a 37 percent drop in fourth-quarter profit per share on Friday despite a big rise in the value of its private equity funds, as it failed to match the carried interest income from a year ago.
Economic net income after taxes totaled $1.06 per share, compared with $1.69 a year earlier. Analysts, on average, looked for 82 cents, according to a Thomson Reuters poll.
Apollo receives performance fees for the private equity funds it manages, typically 20 percent of a fund's profits, in the form of carried interest, once the fund's investment returns exceed a specified hurdle rate.
Fund VI crossed the hurdle rate in the fourth quarter of 2012, paying out carried interest that had accrued through a so-called "catch-up" mechanism that no longer applied in the fourth quarter of 2013.
Assets under management totaled $161.2 billion at the end of December, compared with $112.7 billion at the end of September.
Apollo declared a fourth-quarter distribution of $1.08 per share. (Reporting by Greg Roumeliotis in New York; Editing by Jeffrey Benkoe)
- First Ebola case diagnosed in the United States: CDC |
- Advanced iOS virus targeting Hong Kong protestors -security firm
- Hong Kong democracy protesters and officials mark uneasy National Day |
- U.S. orders airlines to replace cockpit displays on 1,300 Boeing airplanes
- Japan volcano death toll likely to rise to around 46 as more victims found