Apollo's fourth-quarter profit tops estimates on strong fee growth, retirement unit

Adds CEO comment in paragraph 5, analyst quote in paragraph 11; Updates shares

By Niket Nishant

Feb 4 (Reuters) - Alternative asset manager Apollo Global Management APO.N reported fourth-quarter profit that exceeded expectations on Tuesday, helped by a strong growth in fees and solid performance in its retirement business.

Private assets have become increasingly important for the company with CEO Marc Rowan saying that investors were starting to recognize their value, marking a shift from their previously perceived riskiness.

In the quarter, the company took in $33 billion of inflows, driven by its credit-focused strategies and wealth products.

Assets under management jumped 15% to $751 billion, but fell short of the $757.2 billion estimate, according to data compiled by LSEG. Shares were down 2.5% to $162.95.

"We are not here to grow the fastest. We are not here to grow the largest. We are here to deliver the plan plus a little," Rowan said on a call with analysts.

The company has set targets of managing $1 trillion of assets by 2026 and $1.5 trillion by 2029, part of a set of goals it laid out at its investor day last October.

Apollo's adjusted net income rose 15% to $1.36 billion, or $2.22 per share. Analysts were expecting a profit of $1.89 per share, according to estimates compiled by LSEG.

Fee-related earnings, a measure of the profitability of the company's asset management segment, rose 21% to a quarterly record of $554 million.

Spread-related earnings, which assesses the performance of its retirement services unit, rose 12% to $841 million.

The company also reported $61 billion in origination volume. It has previously said that origination, which refers to the process of identifying high-quality credit financing opportunities, would be a core growth driver in its next phase.

"We continue to view Apollo as defensive against tariff-related market turbulence," TD Cowen analysts wrote in a note. Apollo's shares have risen 62% over the past year.

The company reported an unspent capital reserve of $61 billion and deployed $63 billion in investments in the quarter.

Rowan was reportedly a contender for the Treasury secretary role under U.S. President Donald Trump, but the position eventually went to hedge fund manager Scott Bessent. Apollo gave Rowan a five-year employment extension in January.

Last week, Blackstone BX.N also reported fourth-quarter profit that surpassed estimates, driven by a pickup in dealmaking.