Apollo Global Management (APO) risk factors, FY2024 10-K

Macroeconomic Risks

1. 01Difficult political, market or economic conditions may adversely affect our businesses in many ways which could materially reduce our revenue, net income and cash flow and adversely affect our financial prospects and condition
2. 02Climate change-related risks and regulatory and other efforts to address climate change could adversely affect our business
3. 03We are subject to risks associated with pandemics, epidemics, disease outbreaks and other public health crises, which could impact our business, financial condition and results of operations in the future
4. 04A portion of our revenues, earnings and cash flow is highly variable, which may make it difficult for us to achieve steady earnings growth on a quarterly basis, which may cause the price of our shares to be volatile
5. 05We may not be successful in expanding into new investment strategies, geographic markets and businesses and new types of investors, each of which may result in additional risks and uncertainties in our businesses
6. 06of other investment management companies, acquisitions of critical business partners or other strategic initiatives, including entering into new lines of business
7. 07We have increasingly undertaken business initiatives to increase the number and type of products offered to individual investors, which could expose us to new and greater levels of risk
8. 08We operate in highly competitive industries, which could limit our ability to achieve our growth strategies and could materially and adversely affect our businesses, financial condition, results of operations, cash flows and prospects
9. 09We depend on certain key personnel and the loss of their services could have a material adverse effect on us
10. 10extremely competitive. Efforts to retain or attract key personnel may result in significant additional expenses, which could adversely affect our profitability
11. 11Misconduct by our current and former employees, directors, advisers, third-party service providers or others affiliated with us could harm us by impairing our ability to attract and retain investors and by subjecting us to significant legal liability, regulatory scrutiny and reputational harm
12. 12We rely on technology and information systems, many of which are controlled by third-party vendors, to maintain the security of our information and technology networks and to conduct our businesses, and any failures or interruptions of these systems could adversely affect our businesses and results of operations
13. 13Our business, financial condition, results of operations, liquidity and cash flows depend on the accuracy of our management’s assumptions and estimates, and we could experience significant gains or losses if these assumptions and estimates differ significantly from actual results
14. 14We rely on the financing markets for the operation of our business
15. 15Artificial intelligence could increase competitive, operational, legal and regulatory risks to our businesses in ways that we cannot predict

Risks Relating to Our Asset Management Business

1. 16We may experience a decline in revenue from our asset management business
2. 17We depend on investors in the funds we manage for the continued success of our asset management business
3. 18Historical performance metrics are unreliable indicators of our current or future results of operations
4. 19Valuations for the funds we manage entail significant complications and are not an indicator for actual realizations
5. 20Investments made by the funds we manage entail significant risks and uncertainties
6. 21The performance of the funds we manage, and our performance, may be adversely affected by the financial performance of portfolio companies of the funds we manage and the industries in which the funds we manage invest
7. 22The funds we manage in our credit strategy are subject to numerous additional risks, including the risks set forth below

Risks Related to Our Retirement Services Business

1. 23If we are unable to attract and retain IMOs, banks and broker-dealers, sales of our retirement services products may be adversely affected
2. 24As a financial services company, we are exposed to liquidity risk, which is the risk that we are unable to meet near-term obligations as they come due
3. 25The amount of statutory capital that our insurance and reinsurance subsidiaries have, or that they are required to hold, can vary significantly from time to time and is sensitive to a number of factors outside of our control
4. 26In March 2024, the BMA published revised rules and new guidance notes to enhance Bermuda’s regulatory regime for commercial insurers. The material enhancement to the framework includes updates to the technical provisions, the computation of the BSCR and the BSCR adjustment framework
5. 27Repurchase agreement programs subject us to potential liquidity and other risks
6. 28Our retirement services business is subject to the credit risk of its counterparties, including ceding companies, reinsurers, plan sponsors, and derivative counterparties
7. 29The investment portfolio of our retirement services business may be subject to concentration risk, particularly with respect to single issuers, including Athora, among others; industries, including financial services; and asset classes, including real estate
8. 30Our retirement services business is subject to significant operating and financial restrictions imposed by its credit agreements and certain letters of credit and it is also subject to certain operating restrictions imposed by the indentures to which it is a party
9. 31Our failure to deal appropriately with conflicts of interest could damage our reputation and adversely affect our businesses
10. 32has made a balance sheet investment also may provide services to Apollo, the funds we manage or their portfolio companies, which may give rise to conflicts of interest

Risks Related to Regulation and Litigation

1. 33Extensive regulation of our businesses affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased regulatory focus could result in additional burdens on our businesses
2. 34We have been and may be the target or the subject of third-party litigation from time to time that could result in significant liabilities and/or reputational harm, which could have a material adverse effect on our results of operations, financial condition and liquidity

Risks Related to Taxation

1. 35The tax treatment of our structure is complex and may be subject to change as a result of new laws or regulations or differing interpretations of existing laws and regulations, under audit or otherwise, potentially on a retroactive basis
2. 36adjustment to our income tax provision that could increase our effective tax rate and/or have other unforeseen adverse tax consequences
3. 37Our structure is subject to a number of new minimum tax regimes, the implementation of which remains uncertain. These regimes may not be compatible with one another and may cause us adverse tax consequences
4. 38Changes in tax law could adversely impact our earnings

Risks Related to Our Common Shares

1. 39The market price and trading volume of our shares may be volatile, which could result in rapid and substantial losses for our stockholders
2. 40An investment in our shares is not an investment in any of the funds we manage, and the assets and revenues of such funds are not directly available to us
3. 41Declaration, payment and amounts of dividends, if any, to holders of our shares will be uncertain