In this Wednesday, April 27, 2011, photo, Procter & Gamble products are displayed at a Target store in Richmond, Va. Procter & Gamble said Friday that its fiscal second quarter net income more than doubled and boosted its profit outlook as the maker of Tide and Pampers took back market share. (AP Photo/Steve Helber)
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In this Wednesday, April 27, 2011, photo, Procter & Gamble products are displayed at a Target store in Richmond, Va. Procter & Gamble said Friday that its fiscal second quarter net income more than doubled and boosted its profit outlook as the maker of Tide and Pampers took back market share. (AP Photo/Steve Helber)
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FILE - This Jan. 27, 2011 file photo shows an Exxon sign in Carnegie, Pa. Exxon Mobil Corp. said Friday, Feb. 1, 2013, that fourth-quarter earnings rose 6 percent to $9.95 billion with help from higher refining profit margins. The company still makes most of its money by producing oil and gas, but that end of the business was less profitable than a year ago because of lower prices and production. Exxon made up the difference in the refining business. (AP Photo/Gene J. Puskar, File)
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Clouds roil over the White House in Washington on the morning of Sunday, Dec. 30, 2012, as Washington has less than 48 hours to avert the “fiscal cliff,” a series of tax increases and spending cuts set to take hold on Jan. 1. Republican and Democratic negotiators in the Senate were hoping to reach a deal to avoid going over the cliff on Sunday. (AP Photo/Jacquelyn Martin)
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President Barack Obama gestures during a statement on the fiscal cliff negotiations with congressional leaders in the briefing room of the White House on Friday, Dec. 28, 2012 in Washington. The negotiations are a last ditch effort to avoid across-the-board first of the year tax increases and deep spending cuts. (AP Photo/ Evan Vucci)
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President Barack Obama pauses during a statement on the fiscal cliff negotiations with congressional leaders in the briefing room of the White House on Friday, Dec. 28, 2012 in Washington. The negotiations are a last ditch effort to avoid across-the-board first of the year tax increases and deep spending cuts. (AP Photo/ Evan Vucci)
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President Barack Obama arrives to make a statement on the fiscal cliff negotiations with congressional leaders in the briefing room of the White House on Friday, Dec. 28, 2012, in Washington. The negotiations are a last ditch effort to avoid across-the-board first of the year tax increases and deep spending cuts. (AP Photo/ Evan Vucci)
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Senate Majority Leader Harry Reid, D-Nev., retreats to a closed-door meeting with fellow Democrats as he and Senate Minority Leader Mitch McConnell, R-Ky., work to negotiate a legislative path to avoid the so-called "fiscal cliff," at the Capitol in Washington, Sunday, Dec. 30, 2012. Senate and House leaders rushed to assemble a last-ditch agreement to stave off middle-class tax increases and possibly delay steep spending cuts in an urgent attempt to find common ground after weeks of gridlock. (AP Photo/J. Scott Applewhite)
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Senate Minority Leader Mitch McConnell of Kentucky, center, arrives at his office in the Capitol as he and Senate Majority Leader Harry Reid of Neveda, try to negotiate a legislative solution to avoid the so-called "fiscal cliff" in Washington, Sunday, Dec. 30, 2012. (AP Photo/J. Scott Applewhite)
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Senate Minority Leader Mitch McConnell of Kentucky, arrives at his office in the Capitol as he and Senate Majority Leader Harry Reid of Neveda try to negotiate a legislative solution to avoid the so-called "fiscal cliff," in Washington, Sunday, Dec. 30, 2012. (AP Photo/J. Scott Applewhite)
Apollo 4Q earnings rise on fees, investment gains
NEW YORK (
AP) —
Apollo Global Management LLC is generating more profit as the value of its investments rises.
Rival private equity firms The Blackstone Group LP and KKR & Co. LP have recently reported similar improvements in their results.
New York-based Apollo on Friday reported net income of $171.5 million, or $1.12 per share, for the fourth quarter compared with $10.9 million, or 20 cents per share, a year ago. Its revenue surged to $1.16 billion from $646 million.
Wall Street analysts use a profit measure called economic net income to track the performance of private equity firms. It excludes certain items, including charges related to the firm's 2007 private stock sale.
By that measure, Apollo's profit nearly doubled to $697 million, or $1.69 per share, from $357 million, or 80 cents per share, a year ago. Analysts polled by FactSet expected $1.05 per share.
The value of the investments and funds managed by Apollo, its assets under management, rose 51 percent to $113.4 billion, which the firm credited to growth in the division that invests in debt.
In the private equity business, the company's profit more than doubled, to $609 million, as it benefited from gains in the value of its holdings.
The rising stock market tends to make the companies' private equity holdings worth more and makes it easier to profitably sell companies to the public market. The Dow Jones industrial average closed above 14,000 for the first time since December 2007 last week.
The company made money from selling off some of its stakes in Dutch manufacturer LyondellBasell and cable provider Charter Communications Inc. during the fourth quarter.
Despite growth in fees to manage credit investment funds, profit in Apollo's credit division dropped 36 percent, to $90 million. Its real estate segment posted a narrower loss.
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