The result, which beat estimates, was the first full quarter reported by Apollo with its co-founder Marc Rowan serving as chief executive officer. He replaced Leon Black, who relinquished control of the firm in March following a review of his ties to the late financier and convicted sex offender Jeffrey Epstein.
Apollo's other co-founder, Josh Harris, announced in May that he would leave Apollo by early next year. He has now been removed as a "keyman" in Apollo's flagship private equity fund, Rowan said during an analyst earnings call. A keyman in a private equity fund is a fund manager whose absence can lead to the suspension of a fund's investment period.
Apollo's shares were down 1.2% in early afternoon trading in New York at $59.91.
New York-based Apollo's distributable earnings, which represent the cash for paying dividends to shareholders, rose to $501.6 million from $205.2 million posted a year ago.
That resulted in distributable earnings per share of $1.14, ahead of a Refinitiv consensus estimate of 71 cents.
Apollo said it invested $27.8 billion during the quarter, mostly in its credit and private equity portfolios. It also cashed out investments worth $9 billion, mainly in its holdings of public and private companies. The firm collected about $55 million in transaction fees from its credit unit, which encompasses its Athene franchise.
Rivals Blackstone Group Inc, Carlyle Group Inc and KKR & Co Inc have also reported strong second-quarter results, as buoyant public markets and a rebound in economic growth allowed private equity firms to sell investments.
Apollo said its private equity funds appreciated by 9.5% during the quarter, while its corporate credit and structured credit funds rose 2% and 4.5% respectively. By comparison, private equity funds managed by Blackstone, Carlyle and KKR grew 12%, 13.8% and 9% respectively.
Under generally accepted accounting principles (GAAP), Apollo reported a net income of $648.6 million, up 48% from a year ago driven by a rise in gains from investment activities.
Apollo ended the quarter with $471.8 billion in assets under management and $47.6 billion in unspent capital. It raised $12 billion in new capital and declared a quarterly dividend of 50 cents per share, unchanged from the previous quarter.
(Reporting by Chibuike Oguh in New York; Editing by Edwina Gibbs and Chris Reese)
By Chibuike Oguh