Market Overview

Credit Suisse Initiates Coverage On Apollo Global Management At Outperform

Credit Suisse sees strong secular growth dynamics for private equity and credit investing, its outlook for improved capital markets conditions and a solid track record of investment performance with significant realization opportunities ahead underpin its constructive thesis for Apollo Global Management (NYSE: APO). Credit Suisse sees total return prospects of 34% over the next year.

With its emphasis on distressed investing, Apollo's funds have returned a strong 26% net IRR since inception and the firm was among the most aggressive in deploying capital in recent years. As valuations have healed, Apollo's funds have benefited with most of its funds eligible to generate incentive fees. While the market appears focused on Apollo's weighting towards performance fees, Credit Suisse believes investors are under appreciating the $1+ Bn of accrued carried interest that should convert to cash as gains are realized.

Credit Suisse has a $23 PT and Outperform rating on Apollo Global Management

APO is trading higher at $18.34

Posted-In: Credit SuisseAnalyst Color Analyst Ratings

 

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