Apollo Global Management, Inc.

Previous wording

Founded in 1990, Apollo is a high-growth, global alternative asset manager and a retirement services provider. Apollo conducts its business primarily in the United States through the following three reportable segments: Asset Management, Retirement Services and Principal Investing. These business segments are differentiated based on the investment services they provide as well as varying investing strategies. As of March 31, 2025, Apollo had a team of 5,141 employees, including 1,984 employees of Athene.

Current wording

Founded in 1990, Apollo is a high-growth, global alternative asset manager and a retirement services provider. Apollo conducts its business primarily in the United States through the following three reportable segments: Asset Management, Retirement Services and Principal Investing. These business segments are differentiated based on the investment services they provide as well as varying investing strategies. As of June 30, 2025, Apollo had a team of 5,333 employees, including 2,008 employees of Athene.

Previous wording

Our Asset Management segment focuses on credit and equity investing strategies. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company’s capital structure. We raise, invest and manage funds, accounts and other vehicles on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. As of March 31, 2025, we had total AUM of $785 billion.

Current wording

Our Asset Management segment focuses on credit and equity investing strategies. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company’s capital structure. We raise, invest and manage funds, accounts and other vehicles on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. As of June 30, 2025, we had total AUM of $840 billion.

Previous wording

The credit and equity investing strategies of our Asset Management segment reflect the range of investment capabilities across our platform, from investment grade to private equity. As an asset manager, we earn fees for providing investment management services and expertise to our client base. The amount of fees charged for managing these assets depends on the underlying investment strategy, liquidity profile, and, ultimately, our ability to generate returns for our clients. We also earn capital solutions fees as part of our growing capital solutions business and as part of monitoring and deployment activity alongside our sizeable private equity franchise. After expenses, we call the resulting earnings stream “Fee Related Earnings” or “FRE”, which represents the primary performance measure for the Asset Management segment.

Current wording

The credit and equity investing strategies of our Asset Management segment reflect the range of investment capabilities across our platform, from investment grade to private equity. As an asset manager, we earn fees for providing investment management services and expertise to our client base. The amount of fees charged for managing these assets depends on the underlying investment strategy, liquidity profile, and, ultimately, our ability to generate returns for our clients. We also earn capital solutions fees as part of our growing capital solutions business and as part of monitoring and deployment activity alongside our private equity franchise. After expenses, we call the resulting earnings stream “Fee Related Earnings” or “FRE”, which represents the primary performance measure for the Asset Management segment.

Previous wording

Credit is our largest asset management strategy with $641 billion of AUM as of March 31, 2025. Our credit strategy spans third-party strategies and Apollo’s retirement services business across four main investment pillars: direct origination, asset-backed, multi credit and opportunistic credit. Our credit strategy provides flexible, scaled and diverse capital solutions across the entire credit risk-return spectrum, with a focus on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the investors in the funds we manage.

Current wording

Credit is our largest asset management strategy with $690 billion of AUM as of June 30, 2025. Our credit strategy spans third-party strategies and Apollo’s retirement services business across four main investment pillars: direct origination, asset-backed, multi credit and opportunistic credit. Our credit strategy provides flexible, scaled and diverse capital solutions across the entire credit risk-return spectrum, with a focus on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the investors in the funds we manage.

Previous wording

Our equity strategy managed $144 billion of AUM as of March 31, 2025. Across our equity strategy, we maintain our focus on creative structuring and sourcing while working with the management teams of the portfolio companies of the Apollo-managed funds to help transform and grow their businesses. Our flexible mandate and purchase price discipline allow us to embrace complexity and seek attractive outcomes for our stakeholders. Apollo’s equity team has experience across sectors, industries, and geographies spanning its private equity, hybrid value, secondaries equity, AAA, real estate equity, impact investing, infrastructure and clean transition equity strategies. We have consistently produced attractive long-term investment returns in the traditional private equity funds we manage, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through March 31, 2025.

Current wording

Our equity strategy managed $150 billion of AUM as of June 30, 2025. Across our equity strategy, we maintain our focus on creative structuring and sourcing while working with the management teams of the portfolio companies of the Apollo-managed funds to help transform and grow their businesses. Our flexible mandate and purchase price discipline allow us to embrace complexity and seek attractive outcomes for our stakeholders. Apollo’s equity team has experience across sectors, industries, and geographies spanning its private equity, hybrid value, secondaries equity, AAA, real estate equity, impact investing, infrastructure and clean transition equity strategies. We have consistently produced attractive long-term investment returns in the traditional private equity funds we manage, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through June 30, 2025.

Previous wording

Our retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene’s primary product line is annuities, which include fixed, payout and group annuities issued in conjunction with pension group annuity transactions. Athene also offers funding agreements, which are comprised of funding agreements issued under its FABN program, secured and other funding agreements, funding agreements issued to the FHLB and repurchase agreements with an original maturity exceeding one year. Our asset management business provides a full suite of services for Athene’s investment portfolio, including direct investment management, asset allocation, mergers and acquisitions asset diligence, and certain operational support services including investment compliance, tax, legal and risk management support.

Current wording

Our retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene’s primary product line is annuities, which include fixed, payout and group annuities issued in conjunction with pension group annuity transactions and defined contribution plans. Athene also offers funding agreements and guaranteed investment contracts issued in connection with defined contribution plans. Funding agreements are comprised of funding agreements issued under its FABN program, secured and other funding agreements, which include Athene’s FABR program and direct funding agreements, funding agreements issued to the FHLB and repurchase agreements with an original maturity exceeding one year. Our asset management business provides a full suite of services for Athene’s investment portfolio, including direct investment management, asset allocation, mergers and acquisitions asset diligence, and certain operational support services including investment compliance, tax, legal and risk management support.

Previous wording

The ongoing uncertainty regarding trade policy poses a significant downside risk to the current economic outlook. Tariffs, which are inflationary in nature, remain in place and may have a negative impact on GDP growth. The potential impact of tariffs on corporate earnings remains uncertain and will depend on the duration and outcome of related trade negotiations.

Current wording

The ongoing uncertainty regarding trade policy poses a downside risk to the current economic outlook, with lower growth and higher inflationary pressures increasing the risk of a stagflationary environment. Tariffs, which are inflationary in nature, remain in place and may have a negative impact on GDP growth. The potential impact of tariffs on corporate earnings remains uncertain and will depend on the duration and outcome of related trade negotiations.

Previous wording

We carefully monitor economic and market conditions that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives, which include global inflation. U.S. inflation remains elevated with the U.S. Bureau of Labor Statistics reporting the annual U.S. inflation rate at 2.4% as of March 31, 2025, compared to 2.9% as of December 31, 2024. The U.S. Federal Reserve finished the quarter with a benchmark interest rate target range of 4.25% to 4.50%, unchanged from its December 2024 meeting.

Current wording

We carefully monitor economic and market conditions that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives, which include global inflation. U.S. inflation remains elevated with the U.S. Bureau of Labor Statistics reporting the annual U.S. inflation rate at 2.7% as of June 30, 2025, compared to 2.4% as of March 31, 2025. The U.S. Federal Reserve finished the quarter with a benchmark interest rate target range of 4.25% to 4.50%, unchanged from its December 2024 meeting.

Previous wording

Equity market performance was mixed during the first quarter of 2025. In the U.S., the S&P 500 Index decreased by 4.6% during the first quarter of 2025, following an increase of 2.1% in the fourth quarter of 2024. However, global equity markets increased during the quarter, with the MSCI All Country World ex USA Index increasing by 6.4%, following a decrease of 7.4% in the fourth quarter of 2024.

Current wording

Equity market performance was strong during the second quarter of 2025. In the U.S., the S&P 500 Index increased by 10.6% during the second quarter of 2025, following a decrease of 4.6% in the first quarter of 2025. Global equity markets increased during the quarter, with the MSCI All Country World ex USA Index increasing by 12.3%, following an increase of 6.4% in the first quarter of 2025.

Previous wording

Conditions in the credit markets also have a significant impact on our business. Credit markets were positive in the first quarter of 2025, with the BofAML HY Master II Index increasing by 0.9%, while the Morningstar/LSTA Leveraged Loan Index increased by 0.4%.

Current wording

Conditions in the credit markets also have a significant impact on our business. Credit markets were positive in the second quarter of 2025, with the BofAML HY Master II Index increasing by 3.6%, while the Morningstar/LSTA Leveraged Loan Index increased by 2.8%.

Previous wording

In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP contracted at an annual rate of 0.3% in the first quarter of 2025, following an increase of 2.4% in the fourth quarter of 2024. As of April 2025, the International Monetary Fund estimated the U.S. economy will expand by 1.8% in 2025 and 1.7% in 2026. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate increased to 4.2% as of March 31, 2025.

Current wording

In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP increased at an annual rate of 3.0% in the second quarter of 2025, following a decrease of 0.5% in the first quarter of 2025. As of July 2025, the International Monetary Fund estimated the U.S. economy will expand by 1.9% in 2025 and 2.0% in 2026. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate decreased to 4.1% as of June 30, 2025.

Previous wording

Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. The U.S. dollar weakened in the first quarter of 2025 compared to the euro and the British pound. Relative to the U.S. dollar, the euro appreciated 4.5% during the first quarter of 2025, after depreciating 7.0% in the fourth quarter of 2024, while the British pound appreciated 3.2% during the first quarter of 2025, after depreciating 6.4% in the fourth quarter of 2024. Oil finished the first quarter of 2025 down 0.3% from the fourth quarter of 2024.

Current wording

Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. The U.S. dollar weakened in the second quarter of 2025 compared to the euro and the British pound. Relative to the U.S. dollar, the euro appreciated 9.0% during the second quarter of 2025, after appreciating 4.5% in the first quarter of 2025, while the British pound appreciated 6.3% during the second quarter of 2025, after appreciating 3.2% in the first quarter of 2025. Oil finished the second quarter of 2025 down 8.9% from the first quarter of 2025.

Previous wording

Medium and long-term rates decreased during the first quarter of 2025, with the U.S. 10-year Treasury yield at 4.23% as of March 31, 2025, compared to 4.58% as of December 31, 2024. Short-term rates decreased during the first quarter of 2025, with the 3-month secured overnight financing rate at 4.29% as of March 31, 2025 compared to 4.31% as of December 31, 2024.

Current wording

Medium and long-term rates experienced some volatility during the second quarter of 2025 before ending the quarter relatively flat, with the U.S. 10-year Treasury yield at 4.24% as of June 30, 2025, compared to 4.23% as of March 31, 2025. Short-term rates were generally flat during the second quarter of 2025, with the 3-month secured overnight financing rate at 4.29% as of each of June 30, 2025 and March 31, 2025, respectively.

Previous wording

Athene addresses interest rate risk through managing the duration of the liabilities it sources with assets it acquires through asset liability management (“ALM”) modeling. As part of its investment strategy, Athene purchases floating rate investments, which are expected to perform well in a rising interest rate environment and are expected to underperform in a declining rate environment. Athene manages its interest rate risk in a declining rate environment through hedging activity or the issuance of additional floating rate liabilities to lower its overall net floating rate position. As of March 31, 2025, Athene’s net invested asset portfolio included $52.9 billion of floating rate investments, or 20% of its net invested assets, and its net reserve liabilities included $35.7 billion of floating rate liabilities at notional, or 13% of its net invested assets, resulting in $17.2 billion of net floating rate assets, or 7% of its net invested assets.

Current wording

Athene addresses interest rate risk through managing the duration of the liabilities it sources with assets it acquires through asset liability management (“ALM”) modeling. As part of its investment strategy, Athene purchases floating rate investments, which are expected to perform well in a rising interest rate environment and are expected to underperform in a declining rate environment. Athene manages its interest rate risk in a declining rate environment through hedging activity or the issuance of additional floating rate liabilities to lower its overall net floating rate position. As of June 30, 2025, Athene’s net invested asset portfolio included $55.9 billion of floating rate investments, or 20% of its net invested assets, and its net reserve liabilities included $40.8 billion of floating rate liabilities at notional, or 15% of its net invested assets, resulting in $15.1 billion of net floating rate assets, or 5% of its net invested assets.

Previous wording

In addition, certain professionals and selected other individuals have a profit sharing interest in the performance fees earned in order to better align their interests with our own and with those of the investors in the funds we manage. Profit sharing expense is part of our compensation and benefits expense and is generally based upon a fixed percentage of performance fees. Certain of our performance-based incentive arrangements provide for compensation based on realized performance fees which includes fees earned by the general partners of the funds we manage under the applicable fund limited partnership agreements based upon transactions that have closed or other rights to incentive income cash that have become fixed in the applicable calendar year period. Profit sharing expense can reverse during periods when there is a decline in performance fees that were previously recognized. Profit sharing amounts are normally distributed to employees after the corresponding investment gains have been realized and generally before preferred returns are achieved for the investors. Therefore, changes in our unrealized performance fees have the same effect on our profit sharing expense. Profit sharing expense increases when unrealized performance fees increase. Realizations only impact profit sharing expense to the extent that the effects on investments have not been recognized previously. If losses on other investments within a fund are subsequently realized, the profit sharing amounts previously distributed are normally subject to a general partner obligation to return performance fees previously distributed back to the funds. This general partner obligation due to the funds would be realized only when the fund is liquidated, which generally occurs at the end of the fund’s term. However, indemnification obligations also exist for realized gains with respect to certain funds, which, although our Former Managing Partners and Contributing Partners would remain personally liable, may indemnify our Former Managing Partners and Contributing Partners for 17.5% to 100% of the previously distributed profits regardless of the fund’s future performance. See note 15 to our condensed consolidated financial statements for further information regarding the Company’s indemnification liability.

Current wording

In addition, certain professionals and selected other individuals have a profit sharing interest in the performance fees earned in order to better align their interests with our own and with those of the investors in the funds we manage. Profit sharing expense is part of our compensation and benefits expense and is generally based upon a fixed percentage of performance fees. Certain of our performance-based incentive arrangements provide for compensation based on realized performance fees which includes fees earned by the general partners of the funds we manage under the applicable fund limited partnership agreements based upon transactions that have closed or other rights to incentive income cash that have become fixed in the applicable calendar year period. Profit sharing expense can reverse during periods when there is a decline in performance fees that were previously recognized. Profit sharing amounts are normally distributed to employees after the corresponding investment gains have been realized. Therefore, changes in our unrealized performance fees have the same effect on our profit sharing expense. Profit sharing expense increases when unrealized performance fees increase. Realizations only impact profit sharing expense to the extent that the effects on investments have not been recognized previously. If losses on other investments within a fund are subsequently realized, the profit sharing amounts previously distributed are normally subject to a general partner obligation to return performance fees previously distributed back to the funds. This general partner obligation due to the funds would generally be realized only when the fund is liquidated, which generally occurs at the end of the fund’s term. However, indemnification obligations also exist for realized gains with respect to certain funds, which, although our Former Managing Partners and Contributing Partners would remain personally liable, may indemnify our Former Managing Partners and Contributing Partners for 17.5% to 100% of the previously distributed profits regardless of the fund’s future performance. See note 15 to our condensed consolidated financial statements for further information regarding the Company’s indemnification liability.

Previous wording

Below is a discussion of our condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024. For additional analysis of the factors that affected our results at the segment level, see “—Segment Analysis” below:

Current wording

Below is a discussion of our condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024. For additional analysis of the factors that affected our results at the segment level, see “—Segment Analysis” below:

Previous wording

Revenues were $1,046 million in 2025, an increase of $11 million from $1,035 million in 2024, primarily driven by an increase in management fees and advisory and transaction fees, net, partially offset by a decrease in investment income.

Current wording

Revenues were $1,107 million in 2025, an increase of $53 million from $1,054 million in 2024, primarily driven by an increase in management fees and advisory and transaction fees, net, partially offset by a decrease in investment income.

Previous wording

Management fees increased by $70 million to $508 million in 2025 from $438 million in 2024. The increase in management fees was primarily attributable to management fees earned from Atlas, ADS, and Apollo S3 Equity and Hybrid Solutions Fund, L.P. ("S3 Equity and Hybrid Solutions") of $24 million, $18 million and $15 million, respectively, partially offset by a decrease in management fees earned from Fund IX and Fund VIII of $10 million and $4 million, respectively. Management fees in 2025 also benefited from increased management fees earned from certain strategic separately managed accounts. The increase in management fees earned from Atlas, ADS and S3 Equity and Hybrid Solutions was driven by higher fee-generating AUM due to an increase in the management fee basis, an increase in subscriptions and additional closes, respectively. The decrease in management fees earned from Fund IX and Fund VIII were correlated with Fund IX’s decrease in invested capital and the expiration of Fund VIII’s fee-paying period, respectively.

Current wording

Management fees increased by $121 million to $583 million in 2025 from $462 million in 2024. The increase in management fees was primarily attributable to management fees earned from Atlas, Apollo S3 Equity and Hybrid Solutions Fund, L.P. ("S3 Equity and Hybrid Solutions") and ADS of $42 million, $23 million and $20 million, respectively, partially offset by decreases in management fees earned from Fund IX and Fund VIII of $9 million and $4 million, respectively. Management fees in 2025 also benefited from increased management fees earned from certain strategic separately managed accounts. The increase in management fees earned from Atlas, S3 Equity and Hybrid Solutions and ADS was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities, catch-up management fees for additional closes and an increase in subscriptions, respectively. The decrease in management fees earned from Fund IX and Fund VIII were correlated with the fee rate step-down of Fund IX and the expiration of Fund VIII’s fee-paying period, respectively.

Previous wording

Advisory and transaction fees, net increased by $26 million to $195 million in 2025 from $169 million in 2024. Advisory and transaction fees earned during 2025 were primarily attributable to advisory and transaction fees earned from companies in the (i) manufacturing and industrial and (ii) financial services sectors.

Current wording

Advisory and transaction fees, net increased by $10 million to $277 million in 2025 from $267 million in 2024. Advisory and transaction fees earned during 2025 were primarily attributable to advisory and transaction fees earned from companies in the (i) natural resources, (ii) financial services, (iii) manufacturing and industrial and (iv) consumer services sectors.

Previous wording

Investment income decreased $99 million in 2025 to $303 million compared to $402 million in 2024. The decrease in investment income of $99 million in 2025 was primarily driven by decreases in performance allocations of $98 million.

Current wording

Investment income decreased by $89 million in 2025 to $189 million compared to $278 million in 2024. The decrease in investment income of $89 million in 2025 was primarily driven by a decrease in performance allocations of $83 million.

Previous wording

Significant drivers for performance allocations in 2025 were performance allocations primarily earned from Fund X, HVF II, Fund IX, Redding Ridge Holdings and Credit Strategies of $83 million, $34 million, $31 million, $22 million and $21 million, respectively, partially offset by performance allocation losses from Financial Credit Investment II, L.P. (“FCI II”) of $17 million.

Current wording

Significant drivers for performance allocations in 2025 were performance allocations primarily earned from Fund X, Freedom Parent Holdings, Credit Strategies, HVF II, ANRP II and Redding Ridge Holdings of $123 million, $29 million, $25 million, $23 million, $18 million and $16 million, respectively, partially offset by performance allocation losses from Fund IX of $122 million.

Previous wording

The performance allocations earned from Fund X in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) consumer and retail, (ii) chemicals and (iii) manufacturing and industrial sectors.

Current wording

The performance allocations earned from Fund X in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) manufacturing and industrial, (ii) consumer services and (iii) consumer and retail sectors.

Previous wording

The performance allocations earned from Redding Ridge Holdings in 2025 were primarily driven by existing and new CLO issuances, resets, accumulation of warehouse assets, new consulting contracts and the net income generated by the vehicle’s strategic investments.

Current wording

The performance allocations earned from Redding Ridge Holdings in 2025 were primarily driven by existing and new CLO issuances, resets, accumulation of warehouse assets, the acquisition of Irradiant Partners LP, new consulting contracts and the net income generated by the vehicle’s strategic investments.

Previous wording

The performance allocations earned from Fund IX in 2025 were primarily driven by the appreciation and realization of the fund’s investments in the (i) manufacturing and industrial and (ii) leisure sectors, and the fund’s distressed investments.

Current wording

The performance allocation losses from Fund IX in 2025 were primarily driven by the depreciation of the fund’s investments in the (i) leisure, (ii) media, telecom and technology and (iii) manufacturing and industrial sectors.

Previous wording

General, administrative and other expenses were $308 million in 2025, an increase of $68 million from $240 million in 2024. The increase in 2025 was primarily driven by increases in professional fees, depreciation and amortization and higher placement fees.

Current wording

General, administrative and other expenses were $370 million in 2025, an increase of $51 million from $319 million in 2024. The increase in 2025 was primarily driven by increases in professional fees, depreciation and amortization expenses and higher placement fees.

Previous wording

Interest expense was $60 million in 2025, an increase of $9 million from $51 million in 2024. The increase in 2025 was primarily driven by higher interest rates from additional debt issuances in the full year 2024, offset, in part, by debt repayments.

Current wording

Interest expense was $60 million in 2025, an increase of $7 million from $53 million in 2024. The increase in 2025 was primarily driven by higher interest rates from additional debt issuances in the full year 2024, offset, in part, by debt repayments.

Previous wording

Total compensation and benefits were $745 million in 2025, an increase of $78 million from $667 million in 2024, primarily due to increases in profit sharing expense and salary, bonus and benefits of $59 million and $57 million, respectively, partially offset by a decrease in equity-based compensation of $38 million. The increase in salary, bonus and benefits of $57 million was primarily driven by increased headcount in 2025, whereas the decrease in equity-based compensation of $38 million was primarily due to a decrease in amortization of certain RSUs. Equity-based compensation expense, in any given period, is generally comprised of: (i) performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and (ii) the impact of the 2021 one-time grants awarded to the then Co-Presidents of AAM, all of which vest on a cliff basis subject to continued employment over five years, and a portion of which also vest on the Company’s achievement of FRE and SRE per share metrics. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period.

Current wording

Total compensation and benefits were $602 million in 2025, a decrease of $2 million from $604 million in 2024, primarily due to a decrease in profit sharing expense of $54 million, partially offset by increases in salary, bonus and benefits and equity-based compensation of $39 million and $13 million, respectively. The decrease in profit sharing expense of $54 million was correlated with the corresponding lower investment income in 2025. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period. The increase in salary, bonus and benefits of $39 million was primarily driven by the growth in revenues and increased headcount in 2025. Equity-based compensation expense, in any given period, is generally comprised of: (i) performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and (ii) the impact of the 2021 one-time grants awarded to the then Co-Presidents of AAM, all of which vest on a cliff basis subject to continued employment over five years, and a portion of which also vest on the Company’s achievement of FRE and SRE per share metrics.

Previous wording

Net investment income was $4.3 billion in 2025, an increase of $765 million from $3.6 billion in 2024, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows during the previous twelve months and higher rates on new deployment in comparison to Athene’s existing portfolio related to the higher interest rate environment, partially offset by lower floating rate income.

Current wording

Net investment income was $4.8 billion in 2025, an increase of $972 million from $3.8 billion in 2024, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows during the previous twelve months, higher rates on new deployment in comparison to Athene’s existing portfolio related to the higher interest rate environment, earlier deployment into assets during the quarter compared to 2024 and more favorable investment fund performance in 2025. These impacts were partially offset by lower floating rate income.

Previous wording

Retirement Services expenses were $3.2 billion in 2025, a decrease of $704 million from $3.9 billion in 2024. The decrease was primarily driven by a decrease in interest sensitive contract benefits, partially offset by an increase in market risk benefits remeasurement (gains) losses, an increase in policy and other operating expenses, and an increase in DAC, DSI and VOBA amortization.

Current wording

Retirement Services expenses were $4.7 billion in 2025, an increase of $1.1 billion from $3.6 billion in 2024. The increase was primarily driven by an increase in interest sensitive contract benefits, an increase in policy and other operating expenses and an increase in the amortization of DAC, DSI and VOBA, partially offset by a decrease in future policy and other policy benefits and a decrease in market risk benefits remeasurement (gains) losses.

Previous wording

Policy and other operating expenses were $542 million in 2025, an increase of $89 million from $453 million in 2024, primarily driven by an increase in interest expense and policy acquisition expenses related to significant growth.

Current wording

Policy and other operating expenses were $550 million in 2025, an increase of $72 million from $478 million in 2024, primarily driven by an increase in interest expense and policy acquisition expenses related to significant growth. The increase in interest expense was primarily due to an increase in host accretion on business ceded to Catalina, as well as interest related to additional issuances of long-term debt in the fourth quarter of 2024 and second quarter of 2025.

Previous wording

DAC, DSI and VOBA amortization was $267 million in 2025, an increase of$60 million from $207 million in 2024, primarily due to an increase in acquisition costs that are deferred and amortized driven by strong growth in Athene’s deferred annuity business.

Current wording

Amortization of DAC, DSI and VOBA was $292 million in 2025, an increase of$65 million from $227 million in 2024, primarily driven by an increase in acquisition costs that are deferred and amortized due to strong growth in Athene’s deferred annuity business.

Previous wording

Other income (loss) was a loss of $25 million in 2025, a decrease of $63 million from income of $38 million in 2024. This decrease was primarily driven by decreases in other income (loss), net and net gains (losses) from investment activities of $192 million and $57 million, respectively, offset by an increase in net gains (losses) from investment activities of consolidated variable interest entities of $186 million.

Current wording

Other income (loss) was a loss of $276 million in 2025, a decrease of $318 million from income of $42 million in 2024. This decrease was primarily driven by decreases in net gains (losses) from investment activities and other income (loss), net of $304 million and $203 million, respectively, offset by an increase in net gains (losses) from investment activities of consolidated variable interest entities of $189 million.

Previous wording

The decrease in other income (loss) of $192 million was primarily driven by the issuance of common stock to the Apollo DAF and derivative losses primarily on forward contracts and fluctuations in foreign exchange rates in 2025. The decrease in net gains (losses) from investment activities of$57 million was primarily due to depreciation in the Company’s investments in Global Business Travel Group, Inc.

Current wording

The decrease in net gains (losses) from investment activities of$304 million was primarily driven by an impairment loss on an equity investment triggered by the initial public offering of the equity security which resulted in an observable transaction price below the Company’s carrying amount, as well as the depreciation in the Company’s investments in Global Business Travel Group, Inc. The decrease in other income (loss), net of $203 million was primarily driven by the expense related to the issuance of common stock to the Apollo DAF, losses on a derivative forward contract and FX losses due to the significant fluctuations in foreign exchange rates in 2025, partially offset by a decrease in the earnout expense associated with a previous acquisition.

Previous wording

The increase in net gains (losses) from investment activities of consolidated VIEs of $186 million was primarily driven by the appreciation of a consolidated VIE’s underlying investment valuation.

Current wording

The increase in net gains (losses) from investment activities of consolidated VIEs of $189 million was primarily driven by the appreciation of a consolidated VIE’s underlying investment valuation.

Previous wording

Retirement Services revenues were $4.5 billion in 2025, a decrease of $1.5 billion from $6.0 billion in 2024. The decrease was primarily driven by a decrease in investment related gains (losses), partially offset by an increase in net investment income and an increase in revenues of consolidated VIEs.

Current wording

Retirement Services revenues were $10.2 billion in 2025, a decrease of $760 million from $11.0 billion in 2024. The decrease was primarily driven by a decrease in investment related gains (losses) and a decrease in premiums, partially offset by an increase in net investment income and an increase in revenues of consolidated VIEs.

Previous wording

Investment related gains (losses) were losses of $828 million in 2025, a decrease of $2.5 billion from gains of $1.7 billion in 2024, primarily due to the unfavorable change in fair value of FIA hedging derivatives, unfavorable net foreign exchange impactsand an increase in realized losses on AFS securities, partially offset by thefavorable change in fair value of mortgage loans and reinsurance assets. The change in fair value of FIA hedging derivatives decreased $2.7 billion, primarily driven by the unfavorable performance of the equity indices upon which Athene’s call options are based. The largest percentage of Athene’s call options are based on the S&P 500 Index, which decreased 4.6% in 2025, compared to an increase of 10.2% in 2024. The unfavorable net foreign exchange impacts were primarily related to the weakening of the U.S. dollar against foreign currencies in 2025 compared to 2024. The change in fair value of mortgage loans increased $952 million and the change in fair value of reinsurance assets increased $233 million, primarily driven by a decrease in U.S. Treasury rates in 2025 compared to an increase in 2024.

Current wording

Investment related gains (losses) were $(833) million in 2025, a decrease of $2.4 billion from $1.5 billion in 2024, primarily driven byunfavorable net foreign exchange impacts, an unfavorable change in fair value of FIA hedging derivatives and an increase in realized losses on AFS securities, partially offset by the favorable change in fair value of mortgage loans, reinsurance assets and trading securities. The unfavorable net foreign exchange impacts were primarily related to the weakening of the U.S. dollar against foreign currencies in 2025 compared to 2024, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The change in fair value of FIA hedging derivatives decreased $1.9 billion, primarily driven by less favorable performance of the equity indices upon which Athene’s call options are based. The largest percentage of Athene’s call options are based on the S&P 500 Index, which increased 5.5% in 2025, compared to an increase of 14.5% in 2024. The change in fair value of mortgage loans increased $1.0 billion, the change in fair value of reinsurance assets increased $386 million and the change in fair value of trading securities increased $131 million primarily driven by a decrease in U.S. Treasury rates in 2025 compared to an increase in 2024.

Previous wording

Revenues of consolidated VIEs were $592 million in 2025, an increase of $181 million from $411 million in 2024, primarily driven by gains within AAA related to favorable returns on the underlying assets, a favorable change in the fair value of mortgage loans held in VIEs related to a decrease in U.S. Treasury rates in 2025 compared to an increase in 2024, and favorable returns from A-A Onshore Fund, LLC.

Current wording

Revenues of consolidated VIEs were $1.1 billion in 2025, an increase of $365 million from $777 million in 2024, primarily driven by growth and investment performance within AAA related to favorable returns on the underlying assets, favorable returns from A-A Onshore Fund, LLC, a favorable change in the fair value of mortgage loans held in VIEs related to a decrease in U.S. Treasury rates in 2025 compared to an increase in 2024 and underperformance from certain investment funds held in VIEs in 2024 that were subsequently deconsolidated.

Previous wording

Market risk benefits remeasurement (gains) losses were $385 million in 2025, an increase of $539 million from $(154) million in 2024. The losses in 2025 compared to gains in 2024 were primarily driven by an unfavorable change in the fair value of market risk benefits. The change in fair value of market risk benefits was $417 million unfavorable compared to 2024 due to a decrease in the risk-free discount rate across the curve, which is used in the fair value measurement of the liability for market risk benefits, and$123 million unfavorable related to unfavorable equity market performance in 2025 compared to 2024.

Current wording

Market risk benefits remeasurement (gains) losses were $274 million in 2025, an increase of $444 million from $(170) million in 2024. The losses in 2025 compared to gains in 2024 were primarily driven by an unfavorable change in the fair value of market risk benefits. The change in fair value of market risk benefits was$357 million unfavorabledue to a decrease in risk-free discount rates across the long end of the curve compared to 2024, which is used in the fair value measurement of the liability for market risk benefits, and$81 million unfavorable related to less favorable equity market performance compared to 2024.

Previous wording

Interest sensitive contract benefits were $1.5 billionin 2025, a decrease of $1.4 billion from $2.9 billion in 2024, primarily driven by a decrease in the change in FIA reserves and lower rates on floating rate funding agreements, partially offset by significant growth in Athene’s deferred annuity and funding agreement blocks of business and higher rates on new deferred annuity and funding agreement issuances in comparison to its existing blocks of business. The change in Athene’s FIA reserves includes the impact from changes in the fair value of FIA embedded derivatives. The decrease in the change in fair value of FIA embedded derivatives of $2.2 billion was primarily due to the performance of the equity indices to which Athene’s FIA policies are linked. The largest percentage of Athene’s FIA policies are linked to the S&P 500 Index, which decreased 4.6% in 2025, compared to an increase of 10.2% in 2024. The change in fair value of FIA embedded derivatives was also driven by the favorable impact of rates on policyholder projected benefits. These impacts were partially offset by the unfavorable change in discount rates used in Athene’s embedded derivative calculations as 2025 experienced a decrease in discount rates compared to an increase in 2024.

Current wording

Interest sensitive contract benefits were $4.9 billionin 2025, an increase of $214 million from $4.7 billion in 2024, primarily driven by significant growth in Athene’s deferred annuity and funding agreement blocks of business, higher rates on new deferred annuity and funding agreement issuances in comparison to its existing blocks of business and earlier origination of new business within the year compared to 2024. These impacts were partially offset by a decrease in the change in FIA reserves and lower rates on floating rate funding agreements. The change in Athene’s FIA reserves includes the impact from changes in the fair value of FIA embedded derivatives. The decrease in the change in fair value of FIA embedded derivatives of $1.1 billion was primarily due to the performance of the equity indices to which Athene’s FIA policies are linked. The largest percentage of Athene’s FIA policies are linked to the S&P 500 Index, which increased 5.5% in 2025, compared to an increase of 14.5% in 2024. The change in fair value of FIA embedded derivatives was also driven by the favorable impact of rates on policyholder projected benefits. These impacts were partially offset by the unfavorable change in discount rates used in Athene’s embedded derivative calculations as 2025 experienced a decrease in discount rates compared to an increase in 2024.

Previous wording

The Company’s income tax provision totaled $243 million and $422 million in 2025 and 2024, respectively. The change to the provision was primarily related to the decline in pretax income and increased income passed through to non-controlling interests. The (provision) for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 20.6% and 19.3% for 2025 and 2024, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) foreign, state and local income taxes, including NYC UBT, (ii) income attributable to non-controlling interests, (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m), and (iv) Bermuda CIT. See note 10 to the condensed consolidated financial statements for further details regarding the Company’s income tax (provision).

Current wording

The Company’s income tax provision totaled $246 million and $683 million in 2025 and 2024, respectively. The change to the provision was primarily related to the decline in pretax income subject to tax. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 12.1% and 18.8% for 2025 and 2024, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) foreign, state and local income taxes, including NYC UBT, (ii) income attributable to non-controlling interests, (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m), and (iv) Bermuda CIT. See note 10 to the condensed consolidated financial statements for further details regarding the Company’s income tax provision.