|Bid||0.00 x 900|
|Ask||0.00 x 1100|
|Day's Range||31.71 - 32.28|
|52 Week Range||25.61 - 37.35|
|PE Ratio (TTM)||16.09|
|Forward Dividend & Yield||1.95 (6.09%)|
|1y Target Est||N/A|
Of the 15 analysts covering Apollo Global Management (APO) in June, five have recommended “strong buys,” and seven have recommended “buys” on its stock. Apollo Global doesn’t have any “sell” or “strong sell” ratings, but it has three “hold” ratings. Moving forward, Apollo Global is expected to witness fewer “buy” ratings primarily because of the outlook for its Private Equity segment.
A bankruptcy judge Wednesday ordered an expanded sales process for Claire’s Stores Inc., a debt-riddled retailer that creditors believe is already on the comeback trail. ordered Claire’s to open up its sale process “to any and all bids,” with full information about the prospects for growth and profits for the seller of jewelry and accessories to teens and young women. A second major retailer is exploring a concession opportunity with Claire’s, which could power growth and profits, according to evidence at a bankruptcy court hearing Wednesday.
The stock price of ADT (ADT) witnessed falling momentum in the first quarter, which primarily affected the performance of the company’s Private Equity segment. Lower equity markets impact the overall asset management industry as asset managers (XLF) generate lower base fees, which further reduces their revenue.
Apollo Global Management’s (APO) PE ratio is 12.39x on a next-12-month basis, which suggests that its valuation is trading at a premium to the peer average of 9.65x. Apollo Global’s peers have the following PE ratio on a next-12-month basis: The Blackstone Group (BX): 10.55x KKR & Co. (KKR): 9.83x The Carlyle Group (CG): 8.58x
What’s helped the Real Assets segment? At the end of first quarter, Apollo Global Management’s (APO) Real Assets segment had total AUM (assets under management) of $13 billion. Apollo Global’s Real Assets segment is affected by movements in interest rates, as these movements can make real estate prices volatile.
A rise in the interest rate by the Fed could reduce the value of the current credit holdings of alternative asset managers, affecting their businesses and credit divisions.
Apollo Global Management LLC has formed an energy-focused blank-check company to invest in oil and gas pipeline infrastructure in North America, according to people familiar with the matter. The New York-based firm has confidentially registered a special purpose acquisition company, or SPAC, with the U.S. Securities and Exchange Commission, said the people, who asked to not be identified because the matter isn’t public. Apollo has a management team in place for the SPAC, which aims to raise capital this year, the people said.
Apollo Global Management’s (APO) Private Equity segment ended the first quarter with total AUM (assets under management) of $69 billion. In the quarter, the company witnessed some negative effects resulting from the segment’s underperformance.
Apollo Global’s Q2 2018 EPS will likely represent a rise both sequentially and year-over-year. Alternative asset managers could witness falls in their deployment activities in the second quarter primarily due to higher valuations. Apollo Global is expected to report revenue amounting to $618.5 million in the second quarter, while its competitors (XLF) Blackstone Group (BX), Carlyle Group (CG), and KKR & Co. (KKR) are expected to post revenues of $1.7 billion, $715.3 million, and $984.9 million, respectively, in Q2 2018.
Don’t try to shortchange Jay Wintrob or Mark Brodsky in bankruptcy court when your retail buyout goes bust. Wintrob’s Oaktree Capital Group and Brodsky’s Aurelius Capital Management are kicking back at private equity owners in separate Chapter 11 cases, as investors lose patience for tactics that buyout firms use to reduce their own risks. Oaktree is contesting Apollo Global Management LLC’s role in restructuring Claire’s Stores Inc., while Aurelius is zeroed in on plans by Sycamore Partners to turn around Nine West Holdings Inc. Both funds claim the sponsors deprived other creditors of fair recoveries, either by extracting assets before the cases reached court or through their reorganization strategies afterward.
Moody's Investors Service has withdrawn the A2 insurance financial strength (IFS) rating, under review for downgrade, of Voya Insurance and Annuity Company. Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.
Moody's Investor's Service ("Moody's") downgraded its ratings for Mood Media Borrower, LLC (Mood Media), including the company's Corporate Family Rating (CFR, to Caa3 from B3) and Probability of Default Rating (PDR, to Caa3-PD from B3-PD), and the rating for its senior secured second lien notes (to Ca from Caa1). "The downgrades reflect significant deterioration in liquidity, a deemed untenable capital structure given the company's substantial debt service burden, and ensuing heightened risk of default and potentially material impairment of creditor claims in an event of default scenario," according to Moody's analyst Jonathan Teitel.
U.S. private equity firms are raising record amounts of money in the global market. Congress could derail their gravy train. In the name of national security, lawmakers are debating a bill that would tighten scrutiny of investments from other countries.
The price-to-earnings ratio for The Blackstone Group (BX) stood at 10.50x on an NTM (next-12-month) basis while its peer average stood at 10.21x. The company’s competitors KKR & Company (KKR), Carlyle Group (CG), and Apollo Global Management (APO) have price-to-earnings ratios of 9.94x, 8.47x, and 12.23x, respectively, on an NTM basis.
This May, The Blackstone Group (BX) has been covered by 14 analysts. Seven recommend a “strong buy” for the stock. However, six analysts have given “buy” ratings, and the remaining analyst is recommending a “hold.” Over the past few months, ratings have remained constant. In 2018, the company’s credit division could be negatively impacted by the Federal Reserve’s decision to hike interest rates.
In the second quarter, The Blackstone Group (BX) is expected to witness a decline in deployments compared to the first quarter—primarily because of higher valuations that reduce deployment opportunities. Fewer deployments would, in turn, lead to a rise in available capital for investments, which might concern investors. According to Wall Street analysts, Blackstone is expected to report earnings per share or EPS of $0.73 in the second quarter, which represents a rise sequentially as well as year-over-year or YoY. Blackstone is expected to report revenues amounting to $1.73 billion in the second quarter, reflecting an increase from the same period of the prior year.
The performance of the Blackstone Group’s (BX) credit division is affected mainly by outflows. In the first quarter, the debt markets witnessed outflows primarily because of expectations for higher interest rates. Whenever interest rates rise, current holdings witness a dip in prices, which hurts the alternative asset managers’ credit divisions.
The Blackstone Group’s (BX) business is sensitive to global factors that directly or indirectly impact the overall financial markets. The performance of traditional asset managers like State Street Corporation (STT) and T.Rowe Price Group (TROW) and alternatives like Blackstone, Carlyle Group (CG), and KKR & Company (KKR) primarily depend on investment performance. This metric helps asset managers attract investors, which would boost inflows.
The carrying value of the opportunistic funds for Blackstone Group’s (BX) real estate division rose 3.5% in the first quarter, mainly because of private investment values. The carrying value of core-plus funds rose 3.4%. In the first quarter, the company’s division reported realizations of $2.7 billion.
The private equity division of Blackstone Group (BX) ended the first quarter with total assets under management or AUM of $111.4 billion, which implies a rise of 12% on a year-over-year or YoY basis. The carrying value of the private equity funds rose 6.4% in Q1 2018, thanks to the portfolio’s upward momentum. Realizations amounted to $1 billion.
Blackstone Group’s (BX) performance should primarily be driven by fundraising, realizations, deployments, and investment performance. The company’s performance mainly depends on base fees directly related to its total assets under management or AUM.
Joe Azelby, the former JPMorgan Chase & Co. executive who joined Apollo Global Management LLC last year as head of its real assets division, is leaving the investment firm, according to people familiar with the matter. Azelby and other managers differed over the firm’s approach to attracting investors to its planned infrastructure funds and assembling a team for the effort, said the people, who asked not to be identified discussing personnel matters. Apollo Chief Executive Officer and co-founder Leon Black said in December that the firm was in the process of building a team around Azelby, and that he would go raise funds as that team started to form.
Johnson Controls International Plc is drawing interest from private equity firms KKR & Co. and Apollo Global Management LLC for its power solutions business that could value the unit at as much as $12 billion, people familiar with the matter said. The firms were part of a select group of financial sponsors, which also included CVC Capital Partners and Advent International, that were invited to what’s known as a gold card meeting with Johnson Controls management last week to assess their interest in the unit, the people said.
Moody's Investors Service today downgraded the corporate rating of Bright Bidco B.V. (BBBV) to B1 from Ba3 and the probability of default rating to B1-PD from Ba3-PD. Moody's also downgraded to B1 from Ba3 the senior secured term loan B (TLB) and the $200 million senior secured revolving credit facility, both with BBBV as the borrower. BBBV will raise an additional $300 million of TLB debt that will also be rated B1.
North American life insurers will continue divesting legacy blocks of annuity, life, and employee benefits' businesses given their sizable inventory as well as a focus on optimizing value amid generally favorable economic and market fundamentals, Moody's Investors Service says in a new report. "We estimate that close to $270 billion in life, annuity, and group benefits business changed hands in 2017, a trend that has continued this year," according to Moody's Vice President Laura Bazer.