Apollo Global Management Joins S&P 500 Index

Apollo Global Management is now officially part of the S&P 500 index, marking a significant milestone for the alternative asset management giant. This inclusion, announced as part of the index’s latest quarterly weighting adjustment, places Apollo alongside Blackstone Inc., another prominent asset manager in the gambling space.

S&P Dow Jones Indices said in a note last Friday that the changes will take effect before trading begins on Dec. 23. Apollo and Workday Inc. will replace Qorvo Inc. and Amentum Holdings Inc. in the equity gauge.

Apollo has been an active player in the gambling and entertainment sectors, making significant acquisitions that highlight its interest in the industry. One of its most notable deals was the acquisition of Great Canadian Gaming Corp. in September 2021 for approximately $2.5 billion.

This purchase expanded Apollo’s footprint in the North American gaming market, giving it control over one of Canada’s largest gaming operators.

Apollo also gained control of Venetian Resort and Sands Expo and Convention Center in Las Vegas through a $6.25 billion deal with Las Vegas Sands in February 2022.

This past July, International Game Technology PLC (IGT) and Everi Holdings Inc. announced definitive agreements for the acquisition of IGT’s Gaming & Digital division and Everi by a newly established holding company owned by funds managed by affiliates of Apollo. This month, Apollo appointed former Aristocrat Gaming CEO Hector Gonzalez to lead that company. The all-cash deal valued the combined businesses at approximately $6.3 billion.

Rapid expansion and alternative asset growth

Apollo’s rise has been fueled by its focus on tapping into the booming alternative-asset market, particularly by targeting high-net-worth individuals. This strategy has helped boost the firm’s assets under management to over $700 billion.

Its growth trajectory was further strengthened by its 2022 merger with Athene Holding Ltd., which simplified its voting share structure and removed barriers to its eligibility for the S&P 500. Analysts had long anticipated Apollo’s inclusion in the index following this critical restructuring.

To qualify for the S&P 500, companies must meet stringent criteria, including a market capitalization of at least $18 billion, along with specific profitability, liquidity, and share requirements. Apollo’s consistent performance and strategic moves have positioned it to meet and exceed these benchmarks.

Apollo’s inclusion in the S&P 500 signifies the growing influence of alternative asset managers in traditional equity markets. With its diversified portfolio and strategic acquisitions, the firm has positioned itself as a key player in industries ranging from private equity to gambling and entertainment.

Apollo’s addition to the S&P 500 follows an impressive rally in its stock, which has surged more than 25% since the firm reported adjusted net income of $1.13 billion, exceeding analysts’ expectations. This performance has propelled Apollo’s market valuation to approximately $100 billion, an increase of $21 billion.

After the news was announced Friday, Apollo’s stock went from $176.72 to as much as $189.30 on Monday morning. However, interest has cooled, and the price has dropped back down to $179 at the time of writing.