Apollo reports record quarter with $30B net inflows and $1T AUM after dodging software bets
Feb 10, 2026
Key Points
- Apollo posted record fourth-quarter earnings with $30 billion in net inflows and nearly $1 trillion in assets under management, driven by 25% year-over-year growth in fee-related earnings to $690 million.
- CEO Mark Rowan attributes Apollo's outperformance to deliberately avoiding software investments, positioning the firm to benefit as AI-driven sector rotation away from IT stocks concentrates returns among less-exposed managers.
- Apollo's 2023 buyout fund has generated 20% net returns with a third of capital already returned to investors, validating the thesis that passing on inflated software deals yields structural competitive advantage.
Summary
Apollo's deliberate avoidance of software investments is paying off. The firm reported record fourth-quarter earnings with nearly $30 billion in net inflows, pushing assets under management to almost $1 trillion. Fee-related earnings rose 25% year-over-year to $690 million, driven by a 27% jump in management fees and a 41% rise in deal-origination fees through its capital markets arm.
CEO Mark Rowan framed the software dodge as a structural advantage. As AI fears trigger a selloff in IT stocks and loans, Rowan expects private capital groups to see "dispersion of returns" based on their software exposure. Apollo, having largely avoided such deals in its private equity portfolio and curtailed software lending over the past decade, should benefit as investors redirect capital to managers with cleaner sector exposure.
The thesis is already validated by returns. Apollo's 2023 buyout fundraise has generated 20% net returns and already returned a third of investors' capital—significant outperformance against a broader PE industry that has struggled to exit investments. That consistency matters: the firm's decision to pass on hot software deals when valuations were climbing is now looking prescient as that sector faces structural pressure.
The firm also approved a $4 billion share buyback and reported a record quarter for capital deployment. Athene, Apollo's insurance subsidiary, generated $34 billion in retail annuity inflows for the full year, including $7.3 billion in the final quarter, though annuity sales moderated from 2025's highs.
Rowan's language—"sitting prettier than we have been historically"—suggests Apollo expects to widen its performance gap as the software reckoning deepens. The calculus is simple: in a sector rotation away from software, returns concentrate among managers who weren't overexposed when the tide turned.