Apollo's profit rises on strong growth in management, capital fees

May 2 (Reuters) - Apollo Global APO.N reported a 5% jump in first-quarter profit on Friday, boosted by higher fees from asset management and capital solutions such as debt and equity underwriting.

The alternative asset manager took in $43 billion of inflows. Assets under management grew 17% to $785 billion, bringing the company closer to its target of managing $1 trillion by 2026 and $1.5 trillion by 2029.

The results come at a crucial juncture for the industry, as investors contend with the most turbulent economic environment in years. Volatility triggered by U.S. President Donald Trump's tariffs has rattled markets globally and made it tougher for asset managers to exit investments.

However, firms like Apollo can earn millions in management fees from the portfolio of assets they manage, providing a key source of stability. Advising and assisting companies with capital markets activities - such as raising debt and equity - can also yield significant fees.

Apollo's fee-related earnings, a profitability metric for its asset management segment, rose 21% to $559 million.

Spread-related earnings, which assess the performance of its retirement services unit, dipped 1.6% to $804 million.

But the company had $64 billion of unspent capital at the end of the quarter, which could position it to capitalize on the current uncertainty and snap up assets at a bargain price.

CEO Marc Rowan said Apollo was well positioned to navigate the "volatility and dislocation" thanks to a robust pipeline and the capital it has available for investments.

The company also reported $56 billion in origination volume. It has previously said that origination — the process of identifying high-quality credit financing opportunities — would be a core growth driver in its next phase.

Adjusted net income was $1.12 billion or $1.82 per share for the three months ended March 31, compared with $1.06 billion or $1.72 per share a year earlier.

Apollo's shares have dropped 16.5% so far this year. Peers Blackstone BX.N and KKR KKR.N have fallen 22.6% each, while Carlyle CG.O is down 22.4% in the same period.