Leon Black, chairman and chief executive, of alternative asset manager Apollo Global Management LLC on Wednesday said he would buy back up to $250 million of its stock “since we do not believe the current share price of Apollo reflects the strength of our business model and growth opportunities”.
Apollo, which manages around $170 billion in assets, posting a disappointing 69 percent slide in fourth-quarter earnings, falling harder than shares in peers such as Blackstone — which last week said it would not begin its own buyback as it preferred to use the capital to do deals.
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Apollo took the lead among private equity groups in the last two years in taking advantage of ebullient stock markets to sell or list mature investments at high prices, generating performance fees that can be distributed to shareholders.
According to FT, 85 percent of Apollo’s overall portfolio has been sold or listed since 2011 — analysts have questioned how long it will take newer investments to begin earning Apollo fees.
“During 2015 the funds we manage generated inflows of nearly $24 billion and deployed more than $13 billion, which we believe demonstrates the power of Apollo’s integrated global platform amid a volatile market backdrop, ” said Leon Black. “In addition, since we do not believe the current share price of Apollo reflects the strength of our business model and growth opportunities, today we announced the adoption of a $250 million share repurchase plan. This repurchase plan highlights the confidence we have in our business and our ongoing commitment to delivering value to Apollo’s shareholders.”
