What the changes say
- Apollo added new risk disclosures regarding debt restrictions and tax audits.
- Fund raising pressures and artificial intelligence competition risks were modified.
What changed since the prior 10-K
New
- NewMacroeconomic Risks
Evolving political, market and economic conditions, including increased policy uncertainty and market volatility, may adversely affect our businesses and financial results
Global economic volatility, geopolitical conflicts, and regulatory changes may adversely affect our businesses and financial results.
- NewMacroeconomic Risks
our outstanding indebtedness and debt service requirements, which would increase the risks of investing in our shares, and may adversely impact our results of operations and financial condition
We face increased risks from outstanding debt and complexities in managing newer strategic partnerships and separate accounts.
- NewMacroeconomic Risks
We are subject to operating and financial restrictions arising from our indebtedness
Restrictive covenants in our debt agreements limit our operational flexibility and ability to raise additional financing.
- NewRisks Relating to Our Asset Management Business
consummating their capital-raising efforts, or they may consummate them at investment levels lower than those currently anticipated
Institutional investor criticism of fees and preference for non-traditional fund structures create capital-raising pressure.
- NewRisks Related to Taxation
shares. If any such developments occur, our business, results of operations and cash flows could be adversely affected and such developments could have an adverse effect on your investment in our shares
Tax authorities could challenge our tax interpretations, increasing our effective tax rate and resulting in additional tax liabilities.
Dropped
- DroppedMacroeconomic Risks
Difficult 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
Difficult political, market or economic conditions may adversely affect our businesses.
- DroppedMacroeconomic Risks
We 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
- DroppedMacroeconomic Risks
of other investment management companies, acquisitions of critical business partners or other strategic initiatives, including entering into new lines of business
Risks associated with pandemics, epidemics, disease outbreaks and other public health crises.
- DroppedMacroeconomic Risks
extremely competitive. Efforts to retain or attract key personnel may result in significant additional expenses, which could adversely affect our profitability
- DroppedMacroeconomic Risks
Misconduct 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
- DroppedRisks Related to Our Retirement Services Business
Our 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
Risks from strategic expansion, new lines of business, and acquisitions.
- DroppedRisks Related to Our Retirement Services Business
has 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
- DroppedRisks Related to Taxation
adjustment to our income tax provision that could increase our effective tax rate and/or have other unforeseen adverse tax consequences
Reworded
- 98% rewrittenRisks Relating to Our Asset Management Business
We depend on investors in the funds we manage for the continued success of our asset management business
Shortened the discussion on investor capital-raising difficulties and fee criticism.
- 92% rewrittenMacroeconomic Risks
We 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
Expanded competitive landscape details to include alternative asset managers and specific asset management competitive factors.
- 81% rewrittenMacroeconomic Risks
AI Technologies could increase competitive, operational, legal and regulatory risks to our businesses in ways that we cannot predict
Added language regarding the inability to anticipate or remediate all potential risks from AI technologies.
Was: Artificial intelligence could increase competitive, operational, legal and regulatory risks to our businesses in ways that we cannot predict
- 76% rewrittenMacroeconomic Risks
We depend on certain key personnel and the loss of their services could have a material adverse effect on us
Retained key personnel dependency text without substantive changes.
- 69% rewrittenMacroeconomic Risks
Our 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
Retained management assumptions and estimates risk text without substantive changes.
- 57% rewrittenMacroeconomic Risks
We may not be successful in expanding into new investment strategies, geographic markets and businesses and in attracting new types of investors, each of which may result in additional risks and uncertainties in our businesses
Retained expansion into new investment strategies and geographic markets text without substantive changes.
Was: We 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
- 35% rewrittenRisks Related to Taxation
The 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
Retained tax treatment of corporate structure text without substantive changes.
- 33% rewrittenRisks Related to Taxation
Changes in tax law could adversely impact our earnings
Retained changes in tax law impacting retirement products text without substantive changes.
- 31% rewrittenRisks Related to Taxation
Our structure is subject to a number of 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
Was: Our 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
- 30% rewrittenRisks Related to Our Retirement Services Business
Our failure to deal appropriately with conflicts of interest could damage our reputation and adversely affect our businesses
- 26% rewrittenRisks Related to Regulation and Litigation
Extensive regulation of our businesses affects our activities and creates the potential for significant liabilities and penalties. Increased regulatory focus would result in additional burdens on our businesses
Was: Extensive 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
- 22% rewrittenMacroeconomic Risks
We 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
All 38 risk factors
Headings as the filing states them, in filing order.
Macroeconomic Risks
- 01Evolving political, market and economic conditions, including increased policy uncertainty and market volatility, may adversely affect our businesses and financial resultsNew
- 02A 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
- 03We may not be successful in expanding into new investment strategies, geographic markets and businesses and in attracting new types of investors, each of which may result in additional risks and uncertainties in our businesses57% rewritten
- 04our outstanding indebtedness and debt service requirements, which would increase the risks of investing in our shares, and may adversely impact our results of operations and financial conditionNew
- 05We 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
- 06We 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 prospects92% rewritten
- 07Our 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 results69% rewritten
- 08We depend on certain key personnel and the loss of their services could have a material adverse effect on us76% rewritten
- 09We 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 operations22% rewritten
- 10AI Technologies could increase competitive, operational, legal and regulatory risks to our businesses in ways that we cannot predict81% rewritten
- 11We rely on the financing markets for the operation of our business
- 12We are subject to operating and financial restrictions arising from our indebtednessNew
Risks Relating to Our Asset Management Business
- 13We may experience a decline in revenue from our asset management business
- 14We depend on investors in the funds we manage for the continued success of our asset management business98% rewritten
- 15consummating their capital-raising efforts, or they may consummate them at investment levels lower than those currently anticipatedNew
- 16Historical performance metrics are unreliable indicators of our current or future results of operations
- 17Valuations for the funds we manage entail significant complications and are not an indicator for actual realizations
- 18Investments made by the funds we manage entail significant risks and uncertainties
- 19The 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
- 20The 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
- 21If we are unable to attract and retain IMOs, banks and broker-dealers, sales of our retirement services products may be adversely affected
- 22As 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
- 23The 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
- 24In 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 included updates to the technical provisions, the computation of the BSCR and the BSCR adjustment framework
- 25Repurchase agreement programs subject us to potential liquidity and other risks
- 26Our retirement services business is subject to the credit risk of its counterparties, including ceding companies, reinsurers, plan sponsors, and derivative counterparties
- 27The 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
- 28Our failure to deal appropriately with conflicts of interest could damage our reputation and adversely affect our businesses30% rewritten
Risks Related to Regulation and Litigation
- 29Extensive regulation of our businesses affects our activities and creates the potential for significant liabilities and penalties. Increased regulatory focus would result in additional burdens on our businesses26% rewritten
- 30We 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
- 31Climate change-related risks and regulatory and other efforts to address climate change could adversely affect our business
Risks Related to Taxation
- 32The 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 basis35% rewritten
- 33shares. If any such developments occur, our business, results of operations and cash flows could be adversely affected and such developments could have an adverse effect on your investment in our sharesNew
- 34Our structure is subject to a number of minimum tax regimes, the implementation of which remains uncertain. These regimes may not be compatible with one another and may cause us adverse tax consequences31% rewritten
- 35Changes in tax law could adversely impact our earnings33% rewritten
Risks Related to Our Common Shares
- 36The market price and trading volume of our shares may be volatile, which could result in rapid and substantial losses for our stockholders
- 37An 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
- 38Declaration, payment and amounts of dividends, if any, to holders of our shares will be uncertain
Other Apollo Global Management 10-Ks
- FY2024 10-K risk factors41 risks
Apollo faces significant risks from volatile performance fees and market conditions impacting its asset management and retirement services businesses. Extensive global regulations, counterparty exposures, and tax law changes heavily influence operations. Success relies heavily on retaining key personnel and managing complex investment valuations.
Filed Feb 24, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.