August 2, 2018 / 12:06 PM / 9 months ago

UPDATE 1-Apollo posts weaker-than-expected Q2 earnings per share

(Adds details on earnings miss, private equity portfolio, share reaction)

By Joshua Franklin

NEW YORK, Aug 2 (Reuters) - Alternative asset manager Apollo Global Management LLC on Thursday posted a weaker-than-expected rebound in second-quarter earnings per share, as the value of its private equity investments rose less than rivals.

Apollo’s quarterly economic net income per share came in at 27 cents, missing analysts’ expectations of 54 cents, according to Thomson Reuters I/B/E/S, and compared to 46 cents a year earlier. It followed the New York-based firm’s first quarterly loss since 2016 earlier this year.

The value of Apollo’s private equity portfolio rose only 1.7 percent in the three months through June, compared with a 9.5 percent appreciation at rival Blackstone Group LP, 6.7 percent at KKR & Co Inc and 3 percent at Carlyle Group LP.

Apollo shares were down 2.8 percent pre-market.

Earnings were also hit by a drop in the share price of fixed annuity service provider Athene Holding Ltd, which was spun out of Apollo in 2016 and in which it retains a stake.

Overall, second-quarter economic net income, which reflects the mark-to-market valuation gains or losses on Apollo’s portfolio, fell 40.9 percent from a year ago to $108.5 million.

Distributable earnings - the actual cash available for paying dividends - fell to $218.2 from $246.2 million a year earlier.

New York-based Apollo’s assets totaled $269.5 billion at the end of June, up from $247.4 billion the previous quarter, boosted by the closing of the acquisition it led for Voya’s annuity business.

Reporting by Joshua Franklin in New York Editing by Nick Zieminski

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