Buyout firm Apollo Global Management LLC reported its first quarterly loss in two years on Thursday, as stock market jitters weighed on its holdings, including a lacklustre listing of its home security business ADT Inc.
Profits have soared at private equity firms such as Blackstone Group LP in recent years, as a U.S. stock market rally allowed them to sell assets for top dollar. That rally came to an end in the first quarter, amid a trade dispute between the United States and China, the world’s two largest economies.
Apollo reported an economic net loss per share of 30 cents in the first quarter, steeper than analysts' average expectations for a loss of 15 cents, according to Thomson Reuters I/B/E/S. In the first quarter of 2017, Apollo reported economic net income per share of 82 cents.
Economic net income reflects the mark-to-market valuation of gains or losses in Apollo's portfolio and is a closely watched measure of earnings for U.S. private equity firms.
"Despite some volatility in Apollo's first quarter results, primarily driven by unrealized losses in our private equity business, we believe Apollo is exceptionally well-positioned for continued long-term growth and profitability across our integrated global investment platform," Chairman and Chief Executive Leon Black said in a statement.