Apollo converts to C-corp as it passes $300bn AUM mark

The firm is the latest in a string of private market money managers to make the change, citing an expected increase in its share liquidity.

Apollo Global Management has joined the ranks of its fellow publicly-traded alternative asset managers in converting from a partnership to a C-corporation, the firm said in its first-quarter earnings announcement.

In an investor presentation, the New York-based firm cited the expectation for a broader eligible shareholder base and enhanced liquidity, along with the potential for index inclusion. In addition, Apollo expects the conversion to limit its stock price volatility as a result of the potentially expanded pool of stockholders.

The change is expected to become effective during the third quarter of this year; the specifics of the conversion are still subject to the approval of federal regulators and a subcommittee of Apollo’s board. The firm said there would be no change to its dividend policy.

Ares Management, KKR and Blackstone have all also changed to C-corporation status following the passage of a massive package of tax cuts US president Donald Trump signed into law in late 2017.

On its own first-quarter earnings call earlier this week, KKR provided an update on its conversion, noting that the aggregate number of shareholders expanded and that the number of mutual funds and index funds holding its stock increased notably. Blackstone also made the switch this quarter, when it announced the move alongside its earnings results two weeks ago.

For its first-quarter results, Apollo reported $303 billion in assets and a net income of $315.6 million, or $0.67 a share. The jump in AUM from $280.3 billion came as it pulled in $24.9 billion, mainly driven by inflows of $21 billion from its Athene insurance arm.