Apollo Global Management, Inc. (NYSE: APO) said on Friday that it is investing $700 million in Sony Music Group, an affiliate of Sony Group Corporation (NYSE: SONY). The transaction was completed on behalf of Apollo's affiliated and third-party insurance clients, along with other investors, aiming to support investments in the music industry.
The investment is designed to allow Apollo's clients to engage with high-grade securities while aiding Sony Music Group in advancing its business strategies.
"This investment allows our clients to invest in high-grade securities while helping Sony to execute its business plans," said Apollo Partner Jamshid Ehsani.
Apollo, an alternative asset manager, is known for its growth-focused approach and has a history of offering diverse investment strategies, including yield, hybrid, and equity. The company manages assets across a wide risk-reward spectrum.
The firm also operates Athene, its retirement services business, which offers a range of retirement savings products and acts as a solutions provider to institutions.
As of March 31, 2024, Apollo's assets under management totaled approximately $671 billion.
Meanwhile, Jefferies has revised Apollo's outlook upward, raising the investment firm's price target to $129.00 from $117.00, despite a slight decrease in distributable earnings per share estimates for Q2 2024. The firm's year-over-year growth projections remain positive, with estimates for 2024 suggesting a 15% year-over-year increase in fee-related earnings.
InvestingPro Insights
Amidst Apollo Global Management's announcement of a substantial financial maneuver with Sony Music Group, the company's market dynamics reveal a blend of stability and growth potential. With a robust market capitalization of $69.23 billion and a forward-looking P/E ratio (last twelve months as of Q1 2024) of 14.29, Apollo showcases a balance of value and profitability.
An InvestingPro Tip highlights that Apollo is a prominent player in the Financial Services industry, which is reflected in its considerable revenue growth of 120.25% over the last twelve months as of Q1 2024. This growth trajectory is consistent with the firm's strategic investments and its focus on delivering high-grade securities to its clients. Additionally, Apollo's stock has delivered a high return over the last year, with a 52.12% increase in its price total return, underpinning the company's strong performance in the market.
Investors should note that Apollo's dividend yield stands at 1.52%, with a significant dividend growth of 15.62% in the last twelve months as of Q1 2024, underscoring the firm's commitment to maintaining shareholder value through consistent dividend payments for 14 consecutive years. For individuals seeking further insights, there are additional InvestingPro Tips available for Apollo, offering a deeper analysis of its financial health and market position. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, accessing an even broader array of professional investment tools and tips.
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