Good morning and welcome to Apollo Global Management's Fourth Quarter and Full Year 2022 Earnings Conference Call. During today’s discussion, all callers will be placed in listen-only mode. And following management’s prepared remarks, the conference call will open for questions. Please limit yourself to one question and then rejoin the queue. This conference call is being recorded. This call may include forward-looking statements and projections, which does not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements. Apollo will be discussing certain non-GAAP measures on this call, which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in Apollo's earnings presentation, which is available on the company's Web site. Also note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Apollo fund. I would now like to turn the call over to Noah Gunn, Global Head of Investor Relations. Please go ahead.

Thanks, Donna, and a special thanks to a couple of members of the research community who selected two of the three songs for our hold music jukebox that was playing before we got on the line today. Earlier this morning, we published our earnings release and financial supplement on the Investor Relations portion of our Web site. In short, we’re very pleased to deliver a strong set of results for 2022 that featured record fee-related earnings of $1.4 billion or $2.36 per share and record normalized spread-related earnings of $2.3 billion or $3.88 per share. This strong combination of fee and spread-related earnings alongside principal investing income drove total adjusted net income of $3.1 billion or $5.21 per share for the full year. Joining me this morning to discuss these results and our positive outlook on the business in further detail are Marc Rowan, CEO; Jim Zelter, Co-President; and Martin Kelly, CFO. With that, I’ll turn the call over to Marc.

Thank you, Noah, and good morning to all. 2022 was a transformational year for the firm. At the end of 2021, we held our first Investor Day and we set out our five-year targets and laid out what we needed to accomplish internally to achieve those targets. End of 2021 seems like a lifetime ago or at least a Fed regime or two ago. However, in 2022, we met or exceeded those targets. Record FRE of 1.4 billion was in line with our target and record normalized SRE of 2.3 billion was meaningfully ahead of target. As important and as we suggested, we restarted the growth engine. Inflows in 2021 were 75 billion. Inflows this year, 128 billion. Inflows for '23 will be higher. We expect a record year of capital raising in 2023. As I've often cautioned, capital raising is the reward for good performance. It is not actually the goal that we set out. AUM ended the year at 548 billion, or X rates, and FX would have been about 565 billion, all in meaningful progress against our five-year targets. Recall that in Investor Day, we laid out three key objectives or three key pillars that we had to focus on to achieve our plan; global wealth, origination and capital solutions. Global wealth had a really strong 2022. We ended the year with approximately 30 billion of AUM in our global wealth segment, including 6 billion of capital raised in 2022, accounting for and implementing successfully the Griffin acquisition during the mid part of the year. We are on track to meet or exceed our $50 billion target at the end of 2026. When we laid out these targets, we had zero perpetual products in the marketplace. By year end, we expect nine perpetual products in the marketplace.…

Thanks, Marc. As you've heard us say before, one of our core tenants is excess return per unit of risk. After 12-plus years of low rates and relatively free money, the best investors will begin to reveal themselves. And strong investment performance is the foundation of our business and we take our responsibility to provide differentiating returns to our clients quite seriously. As we look out to 2023, we believe this is a particularly good time for Apollo to generate excess return. While other managers may be in a defensive position, we have been patiently waiting for this type of environment and we're confident there will be meaningful opportunities to deploy capital amid a heightened period of volatility and candidly a foggy capital markets backdrop. Marc provided a high level update on our three key growth pillars, and I'd like to deep dive for a moment into origination. As we addressed at that Investor Day a short 16 months ago, a large portion of what we do is this high grade, fixed income replacement end of the market. Central to our strategy is the ability to originate a recurring supply of these durable assets. And one of the primary ways we do though is through these platforms, real operating businesses within a variety of industries. Platform origination is clearly a differentiated way to originate these investment grades assets at scale, which is needed to grow our retirement services business profitably and increasingly to third party accounts that want the same alpha in their portfolio. Importantly, however, rather than expand HoldCo balance sheet resources, the capital used to purchase these origination platforms can be sourced via the normal course purchasing power of Athene’s alt portfolio as well as AAA. At year end, our platform ecosystem was producing approximately 35 billion of…

Great. Thanks, Jim, and good morning, everyone. As Marc and Jim have highlighted, 2022 was a very successful year of growth and execution for Apollo. Amid a backdrop of significant market choppiness, our financial results demonstrate the strength and resiliency of our earnings streams. In our first full year post merger, the combination of our asset management and retirement services businesses proved increasingly valuable. FRE and SRE comprised 93% of total pre-tax earnings in 2022. And on average, we expect 90% or more of our earnings to be driven by stable recurring predictable earnings streams over the long term. This translates to a meaningfully less potential for volatility versus other businesses that may be more reliant on incentive and investment-based income streams. Our business model is fully aligned with the growth of FRE and SRE inextricably linked and highly correlated. We intend to drive consistent and attractive earnings growth, regardless of the macro backdrop, in line with our stated goal from Investor Day of doubling earnings by 2026. 2022 was a solid proof point of our progress towards this goal, as we met or exceeded nearly all of our key financial and business targets, which we outlined on Page 4 of our earnings release. FRE of $1.4 billion in '22 grew 11% year-over-year, in line with our expectations, while we absorbed costs associated with significant investments in our next chapter of growth. Management fees increased 14% year-over-year, supported by strong fundraising from both our asset management and retirement services clients, as well as a solid pace of capital deployment. As Marc mentioned, capital solutions fees reached a record quarterly $142 million in the fourth quarter, bringing full year revenue to $414 million, up approximately 40% year-over-year, an incredible result amid a turbulent capital markets backdrop, highlighting the quality of our…

Thank you. The floor is now open for questions. [Operator Instructions]. As a reminder, we do ask that you please limit yourself to one question and then rejoin for any additional questions. The first question today is coming from Glenn Schorr of Evercore. Please go ahead.

Hi. Thank you. Appreciate all the detail, particularly on retirement services. I have a quickie, little and big picture on retirement services. On Slide 24, you go through 11 billion of inflows attributable to Athene on the gross inflows, but you also have 11 billion gross outflows. It looks like half was a sale and half was actually policy-driven withdrawal. So curious if you could just talk to that, and then what you're assuming on surrenders? And then maybe you could just flush out a little bit more about your comments on just investment grade and the credit portfolio holding up in this backdrop? Thank you. I appreciate it.

Glenn, it’s Marc. I'll take the first piece of it and then Martin will pick up. So surrenders basically continue at normal levels. What you're watching in the fourth quarter is a normal level of surrenders, the maturity of one FABN, which is a scheduled maturity of the FABN. And then during the year, we reinsured just under 5 billion to Catalina. Catalina is our closed block P&C business. We do not believe the closed block P&C market to be that attractive. And so we are in the process of diversifying Catalina’s business from fully closed block P&C to 50% closed block P&C, which is mostly in runoff, but with a long tail, and 50% annuity. It is another source of capital. Think of it like ADIP and it participates side by side with ADIP2 and ADIP1 in these sorts of transactions. But it is modest in its capital base. So maybe it grows to 10 billion or 15 billion over a number of years. But it is really more just a sideshow to what else is going on in the business. In terms of credit, there's just nothing going on in the portfolio. Impairments were like in the 2 to 3 basis points. There's just nothing we see, Glenn, that gives us cause for concern across the portfolio. And again, it gets back to this notion. We speak a lot about the words private credit. And I say -- as you've heard me say, there are two words that are both English words that actually don't mean anything. Private credit can be AA and private credit can be below investment grade. Both have their place in portfolio. On a regulated balance sheet, it is investment grade private credit, excess spread over publicly traded corporates but without excess risk.

Thank you. The next question is coming from Alex Blostein of Goldman Sachs. Please go ahead.

Thanks for all the detail as well. Marc, I had a question for you around the origination ecosystem that you guys have build. That continues to be a really powerful engine for the whole organization. So $100 billion annual origination this year, very good run rate while kind of on your way to your goals. My question is over the course of '22, how much of that has been placed with third party clients that pay your management fee, whether it's a separate account nor through a commingled fund? How much is being placed at Athene or Athora? And ultimately, as you look forward, what would you want that mix to look like ideally?

So Alex, I'll size the business and it's not a statistic I have in front of me, but I'll give you a feel and we'll get back to with the detail. So of the 100 billion of origination, as Jim mentioned, 35 billion this year came off platforms and 65 billion came from what I would say more traditional sources of origination, us calling on companies, high-grade alpha, or other methods of origination. The run rate of the platforms, given that we added seven new platforms in '22 plus the addition now of Atlas means that the run rate will be materially above the 35 billion. The vast majority of what’s being originated by the way is investment grade. My gut tells me that about a third of that ends up in the Apollo ecosystem, meaning Athene and Athora. That another chunk of that maybe 20%, 25% goes into SMAs. And somewhere in the balance is going through our capital solutions business as we build the business. Going forward, we will always be expanding into new clients. I think the Athene-Athora share is kind of where it needs to be. As I jokingly said on the call, Athene wants 25% of everything and 100% of nothing; Athora wants 5% to 10% of everything. And the balance, therefore, is available to clients. Our job is to build the third party recurring client business to another 35% or 40%, leaving 15% or 20% as capital markets. Clearly, we view capital solutions as both a moneymaker in the fee business but as important as a client generator. New clients, particularly investment grade clients, who have never come to the alternatives industry, much less Apollo, are for the first time seeing that they can come and pick up to 200, 300, 400 basis points over the comparable publicly traded IG rating. And so for a portion of their portfolio, they're doing it. And while we're having a discussion, and it sounds relatively normal, this is not a product they can buy. And so they're experiencing the product for the first time through capital solutions. And as they get comfortable with the product, we're moving them into sidecars and into recurring sources of revenue. I’m going to turn it to Jim.

The only double-click I'd say on that, Alex, and it's really the core of our business, in our securitized products Atlas, in the past, investors only had access to the end results, i.e. the asset would be in a warehouse platform and they'd have access to the securitized product. What we're doing for our retirement services balance sheets and a few others now is offering that interim role where they can have access to that pre-securitized product. And again, that ecosystem, it creates a flywheel. It started several years ago with our high-grade alpha what we did in ADNOC and Hertz and AB InBev, but that's opened an amazing amount of doors for us of folks coming into our ecosystem, giving us sidecars or SMAs and then they come into commingled funds. But we will put a little bit finer pin on that. But it really creates an ecosystem, as Marc said.

Thank you. The next question is coming from Patrick Davitt of Autonomous Research. Please go ahead.

Hi. Good morning, everyone. I have a follow up on the origination discussion. Could you maybe more specifically frame what the annual origination volume of the Atlas team has been running at? And then more broadly, the release seems to suggest this is kind of the first announcement related to the Credit Suisse transactions. Does that mean there are more incremental things that are going to be announced here like this beginning?

Yes, so this is a group that historically had originated in excess of 50 billion a year over the last several years. Sometimes it was chunky or sometimes less, but it's a massive platform in excess of 250 underlying financing facilities or partnerships. The reason why you're seeing the release as stated is it's a bit of a staged closing. There needs to be investor consents as well as a variety of some international licenses and regulatory approvals. So the bulk of what we announced in the last 24 hours is the initial closing. You'll see some rolling closes over the next several months. And it will all be done by midyear. But the fact is that the team is engaged. They've been rebranded. They're operating as an appropriate entity. And for us, it's really the first stage. But what's interesting about it is there will be not only assets and facilities we manage on behalf of our retirement services, but as we roll out a variety of commingled or SMA sidecars along, there will be a residual portfolio that we manage on behalf of Credit Suisse over the next several years.

Patrick, it’s Marc. I want to give you a way of thinking about this. And again, we always have to execute before. But what do we see here? This is a business that has not heretofore existed outside of the banking system. And each of the banks who own one of these businesses is competitive with the other banks. We are not a competitor to the banking system. We actually don't want what the banking system wants. We don't want the client. And I'm saying it in a confusing way. But we can’t sell the client equity, advice, M&A, treasury, payments, FX, and derivatives. And the banking system wants to sell all those things. And what they don't want for the most part is the asset. So we are actually an incredible partner to the banking system. But if you're in a competitive bank or a boutique, you historically have not wanted to bring your client to this business, because you're bringing it to a competitor who's interested in the same thing that you are. Our job here is to represent a capital box, which will serve as an investment grade capital box, as Jim suggested. We will build and have a massive warehouse business. The warehouse business is a really good business. The stat I have in my mind is more than 350 billion of origination over the last seven, eight years with de minimis losses. At spreads, we believe single A credit spreads, but at very wide spreads, which then the warehouses are cleaned out through securitization, which is broadly available to a variety of investors. Our job is to scale that, but also to become the financing partner to lots of boutiques who have clients where they're nervous about bringing them to banks who are their full fledged competitors. Also, we're a great partner to existing banking system on hold positions. People who have securitizing businesses where they just don't want the hold, or they don't want the capital, bringing us in to be a side by side with them, they are bringing in someone who is not a competitor for their client. That's our job. And we have a lot of work in front of us. But Jay Kim has built an amazing team, and we're very excited about what can be done here. We expect, as I suggested previously, this will be accretive financially in 2023. But it's up to us to make it in 2023 strategically accretive to our platform.

Thank you. The next question is coming from Craig Siegenthaler of Bank of America. Please go ahead.

Thank you. Good morning, everyone.

Good morning.

Just a follow up to Glenn's question on retirement and OTTIs. Your historical loss rate has been very low, 7 basis points annualized. But what was the loss rate in 4Q? And do you have any view on how this should trend this year, especially in light of the prospects for an economic recession?

Yes. So Craig, it’s Martin. The loss rate was right on top of that in Q4. As we go through every asset class and go through a pretty rigorous process, we're just not seeing -- we're not seeing any uptick. If you look at the headline, there was some peak-up CECL adjustments, which were just sort of accounting required, but don't reflect actual credit losses. But the actual changes in the reserves, incidence of any stress and actual realized losses coming through, we're just not seeing it across resi loans, commercial loans, asset backs, any other asset class.

And if I can just highlight, Craig, I know there's lots of questions about credit cycle and a concern from our perspective, and we're not the economist. We will let Torsten do that. And we're just following our discipline of purchase price matters. The reality is there are certain sectors that are doing very well post COVID. There are certain that are having a bit of a challenge. Hotels, entertainment, lodging, airlines doing very well; hard industrials or the auto sector is having a tough time. Our IG book, a lot of financials have the big banks. Big IG book, CLO book really strong, AA, AAA book. So we really feel like we have a very well thought out strategic asset allocation and how we put it together is showing the robust nature of the portfolio.

I'll just finish it, Craig. You're going to see a tremendous amount of additional activity from Athene this year in communicating its portfolio what's going on? We have a tremendously good story to tell and the team is anxious to tell it, and they're going to be very visible and very transparent in how that gets sold. But I'll just echo where Martin and Jim started. We're just not seeing it in the portfolio. Absolute normalcy in terms of credit and we're getting paid for structure and for illiquidity and for origination. We're not getting paid for credit.

Thank you. The next question is coming from Michael Cyprys of Morgan Stanley. Please go ahead.

Good morning. Thanks for taking the question. I wanted to circle back on the normalized SRE spread. If I heard Martin correctly, I think he was suggesting 135 to 140 for '23. Maybe you can correct me or not. But maybe you could just help unpack some of the moving pieces in your guidance. Clearly, the benefit from higher rates, I think 20% of the book is floating, but also think a portion of the liabilities are also floating. We're seeing cost of funds ticking up here in the quarter. So I was just hoping you could elaborate on some of the moving pieces, where are cost of funds on new business? And as you look out three to five years, where do you see that net SRE spread settling out to over time? Thank you.

Yes. So Mike, that's the reason we provide a single net number to sort of get through the puts and takes that go into that. The benefit of interest rate increases on the floating rate assets is starting to diminish, as you'd expect, right? A lot of that benefit has come through the numbers. And if we just assume that today's rate curve at the short end holds for the year, over the next couple of quarters that will flat line out, right? So that's a temporary benefit for the year. There's also option costs that are required to hedge rate features and policies, which are part of that. And so we're seeing some headwinds there. And we're assuming that fourth quarter was extraordinary in terms of net spreads. We had 145 basis points of fully netted costs, 185 before OpEx and financing costs. And so we don't expect in our models that that will continue. And so if you bring that down to a more normalized level and net all of the above, including what we think is an appropriate allocation to alts for the year, you get to that 135 to 140 basis points. And that's the reason we're trying to anchor around a single metric, which we believe is the most sort of appropriate view of spread for the year, given the components that go into it.

Maybe I'll take the two pieces of it that Martin didn't flush out. One is in alts. One has to be stepping back and saying that if I look at the relative attractiveness of asset classes, a credit is simply more attractive than equity. And so you will see that reflected on the margin allocations from Athene. And all of this nets down into credit requires less capital than equity, which allows us to do more business. The other piece, and it's important that you track this through in the model, is we have a choice. And the choice is keep 100% of the business on the books, realize the growth in SRE and deploy our own capital, as that’s Athene’s balance sheet capital, or allocate a portion of the business to sidecars and essentially receive a fee for fronting that at Athene, receive FRE at Apollo for managing that and allow investors to earn the spread. Given the attractiveness of credit, this for investors is another opportunity for investors to invest in private investment grade credit with perfectly matched low cost liabilities, which is why we've seen such good take up at ADIP2 in addition to the really strong performance of ADIP1. And so as Martin suggested, we expect a very strong origination here, organically. Not even looking at inorganic where the cost of funds is now not sufficiently attractive to justify spending any money. But we will allocate more of that growth to sidecars than we will to the Athene balance sheet. And so it is not just understanding the spread of the business. It's understanding how much of the business we elect to keep. And so the second number I think you need to anchor on is we're expecting SRE growth of about 20% year-over-year. Combination of basis points margin, which in part reflects a decision between debt and equity, and then on the growth side, how much capital we want to deploy as principal versus how much we want to deploy through the sidecars? We're in a fortunate position where we have that choice.

Thank you. The next question is coming from Finian O’Shea of Wells Fargo. Please go ahead. Finian O’Shea: Hi, everyone. Good morning. Another on the Atlas partners origination. Will Athene provide the warehouse financing? And if so, are you offering similar to what banks do on advanced rates or go further? And then relatedly for the equity of those deals, will you mainly sell to something like AAA internal or more so external parties? Thank you.

Okay. Let's take a step back for a second. No, Athene is not offering warehouses. We're going out. There's a consortium of global banks that you're very familiar with that are offering us appropriate financing facilities for the commercial real estate, the resi real estate and the consumer facilities, again, global banks, massive facilities. And what Athene will take as other investors, they'll take either the mezzanine or the residual of that financing facility. And again, I contrast this to what we were talking earlier. They're not taking residual securitization risk, which is a higher attachment and lower spread. What Athene and the other investors will have access to is those financing facilities with lower attachment points and higher spreads behind those senior banks. So think spreads 350, 450 over; think attachment points 55% to 65%, where once those companies go to the securitization market, the attachment point goes to 80%, 85% at dramatically tighter spreads. So what we're talking about is offering these investors Athene, Athora and many, many others to get earlier in the process, earlier in the manufacturing of these facilities than ever had they've been able to participate before.

I think it's important to say, we're not in the credit risk business in what we're talking about. There's nothing about the advanced rate that is going to be different than that which that is available commercially everywhere. We want to get paid for structure and direct origination. We are not looking to get paid for credit risk unless we're in a credit fund that is supposed to get paid for credit risk. This is about avoidance. And in terms of the funding of this, the funding of this, there's very little equity funding that is required for the platform upfront. It will be funded by AAA and by third party investors side by side. And this will -- the funding structure itself is all laid out in the 10-K coming up.

Thank you. The next question is coming from Rufus Hone of BMO Capital Markets. Please go ahead.

Great. Good morning. Thanks very much. I wanted to come back to your comments about the capital efficiency at Athene. The sidecars contribution is now stepping up to about 40% of the capital. I guess that's a fair amount of capital being freed up. And I was curious about where you're looking to deploy that capital. And I think the last couple of quarters, you've mentioned buybacks were right at the top of your capital hierarchy. I suppose how are you thinking about all that? Thank you.

Good morning. It's Martin. So at the top of the house, we have choices, and the choices are to buy back stock, which we expect to be programmatic about. We think that that's a very attractive use of capital, given the business plan we see in front of us even at current multiples. I think a small portion for increasing the dividend, because we think that's important to be sort of an S&P like company. And then a portion to invest in the business, which frankly I think we see less need to do right now given most of the growth is organic, and the three initiatives and the next six are being built out with people and not being acquired. So that HoldCo capital benefits from a dividend up from Athene each year of $750 million. We expect that that will continue at its current level. And then when you look at the capital efficiency at the Athene level, Athene is growing massively. So growth requires capital. Athene is creating meaningful earnings, 2.3 billion of SRE in the year just finished, up 20% next year. That will be used to fund growth that's not retained by ADIP and to fund the $750 million dividend. But as we look at the choice to spend $1 of capital of Athene with or without the benefit of ADIP, it's clearly more accretive across the group to leverage ADIP. And ADIP validates the structure and has terrific returns for its own investors. And then there's AAA, right, which gets to the platform strategy. So they're the key pockets of capital that we look at, and we're looking to optimize it, realizing that uses of capital for buybacks, dividend increases and investments are all attractive in their own ways. But growth requires capital at Athene. And so we're very focused on making sure that we can manage that appropriately and maintain low leverage and strong capital levels above what's required to ensure that the balance sheet is really robust.

Thank you. The next question is coming from Ben Budish of Barclays. Please go ahead.

Hi, guys. Thanks so much for taking my question. I wanted to dig in a little bit on the inflow outlook for Athene. It sounds like you guys have a lot of confidence that growth is going to continue pretty nicely into next year. I'm just kind of curious, on the retail side, how much of that is coming from new distribution versus sort of ongoing, just underlying strength given where rates are? And on the pension side, just kind of curious, you explained that it's somewhat seasonal. But just curious, what we should think of as kind of a normalized run rate as we go into next year? Thanks.

So we'll get back to on the absolute breakdown between new distribution and strong distribution. But it is clear to me that consumers prefer higher rates versus lower rates. And so you're seeing a tailwind to the industry. Having said that, new distribution, new pockets we opened up in the beginning of last year have been incredibly strong. And I won't steal Athene’s thunder or their announcement, but they expect this year to be at least two massive launches. And so we are still early in our build out phase of expanding distribution, not to mention new suites of products and everything else. So I think there the tailwind is really good across distribution. And based on what we've seen, at least so far, early dates, it appears that '23 is off to a really good start. In terms of PRT, this is not a -- there's a lot of volume to do out there. But the only business worth doing is business that comes at acceptable spreads. And so we have a budget of what we want to do for the year, roughly 10-ish billion, and it's our job to optimize within the deals that are out there and that which provides us the greatest spread in term and the best mix of business. We expect -- and I'll say we expect that we will exceed organically in '23 what Athene did in '22. And we will likely have to make choices and temper our growth. This will not be a question of whether there's business to do. This is going to be a question of how much business we want to do.

Thank you. The next question is coming from Gerry O’Hara of Jefferies. Please go ahead. Gerald O’Hara: Great, thanks. Hoping maybe we could get just a little bit of an update on sort of the outlook for global wealth. Appreciate it's still early days, but hoping we could get a sense of how to think about the cadence and flows while balancing I think your comments of not looking to be necessarily the biggest or fastest growing kind of product generation? And then also if you could just maybe give us a sense of what the incremental products are that we might be able to expect as it relates to the sort of nine perpetual products by year and that you called out in prepared remarks? Thank you.

Thanks for the question. We'll just dimensionalize it, like taking a step back, Marc talked about what we did last year around 6 billion. We got about 30 billion in the entire platform right now of products within various global wealth channels in terms of our existing products. And as you point out, like of the 9 billion to 10 billion this year, probably two thirds of that, 6.5 billion, 7 billion will be in the perpetual type of product that we've created, which is AAA, Apollo Debt Solutions, which has been out ADS, as well as a variety of non-traded REITs. And we also purchased a couple of products from Griffin, an interval fund in real estate and an interval fund in credit. So we see broad growth across those. And then the residual of the 9 billion this year will be a variety of our institutional products that we put in the appropriate wrapper. But again, our view is you're stepping back is this is a long journey. Certainly the characteristics of those who are going to win, not everybody is going to win. The distribution channels want a handful of producers or providers. We have the track record. We have the brand now. And what’s additional necessary is the technology and the education. So those are how we want to solve the riddle, if you will. But we're not seeing -- the vehicles we have had solid performance. We've not gotten anything that we would think as any kind of redemptions at year end from Windows. So we're happy with the journey we're on and it's, as I said, between the retail perpetual funds from none a couple of years ago to almost nine at year end to the variety of drawdown funds, more than five of those. We feel very comfortable with our product set.

Thank you. The next question is coming from Adam Beatty of UBS. Please go ahead.

Thank you and good morning. Just a quick follow up on retail wealth. Marc, I think mentioned some of the challenges that product elsewhere faced last year. Just wondering, has that kind of dampened sentiment? How do you view the take up? And also Jim just mentioned your education? How much recognition have you seen so far that some of the Apollo products are just truly distinctive and a better mousetrap? Thank you.

Well, certainly, as we've talked about what we're doing on AAA, Apollo Aligned Alternatives, we think, as Marc has been public saying, we think that could be the largest flagship vehicle of our firm over the next several years. Certainly what we're doing with some of the insurance products and what we're doing with the Apollo Altitude, we think those are a bit, I use the term groundbreaking, but we think they're providing incredible value. And they're somewhat unmatched in terms of the attributes. That being said, there's been some noise about some other folks out there having some redemptions. First of all, I think they're doing the right thing by the discipline that they're engaging in, in terms of making sure people don't think that the incremental yield comes without a cost. But that being said, this is a mere hiccup in a long successful transition and journey, and we're happy to be part of that transition. But no doubt, it's not just about you have to have multiple resources to create all those things we talked about. We've launched this Apollo Academy, which is a broad, broad education set available to those channels. And the take up on that has been extraordinary. So it's not only product creation, execution returns, but also technology applications as well as education.

Thank you. Ladies and gentlemen, we have reached the allotted time for questions for today's event. I will now turn the floor back over to Mr. Gunn for closing comments.

Great. Thanks again, Donna. And thank you everyone for your time and attention this morning. I appreciate your continued interest in Apollo. And if you have any follow-up questions on what we discussed on today's call, please feel free to reach out. We look forward to speaking with you again next quarter.

Ladies and gentlemen, thank you for your participation. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.