| INVESTMENTS |
INVESTMENTS The following table represents Apollo’s investments: | | | | | | | | | | As of
September 30, 2016 | | As of
December 31, 2015 | Investments, at fair value | $ | 619,684 |
| | $ | 539,080 |
| Equity method investments | 771,314 |
| | 615,669 |
| Total Investments | $ | 1,390,998 |
| | $ | 1,154,749 |
|
Investments, at Fair Value
Investments, at fair value, consist of investments for which the fair value option has been elected and include the Company’s investment in Athene Holding, investments held by the Company’s consolidated funds, investments in debt of unconsolidated CLOs, and other investments held by the Company. See note 5 for further discussion regarding investments, at fair value. Net Gains from Investment Activities The following table presents the realized and net change in unrealized gains on investments, at fair value for the three and nine months ended September 30, 2016 and 2015: | | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | 2016 | | 2015 | | 2016 | | 2015 | Realized gains on sales of investments | $ | 472 |
| | $ | 33 |
| | $ | 375 |
| | $ | 187 |
| Net change in unrealized gains due to changes in fair value(1) | 17,274 |
| | 80,917 |
| | 49,912 |
| | 107,305 |
| Net gains from investment activities | $ | 17,746 |
| | $ | 80,950 |
| | $ | 50,287 |
| | $ | 107,492 |
|
| | (1) | Primarily relates to the Company’s investment in Athene Holding. See note 5 for further information regarding the Company’s investment in Athene Holding. |
Equity Method Investments Apollo’s equity method investments include its investments in Apollo private equity, credit and real estate funds, which are not consolidated, but in which the Company exerts significant influence. Apollo’s share of net income generated by these investments is recorded within income from equity method investments in the condensed consolidated statements of operations. Equity method investments, excluding those for which the fair value option was elected, as of September 30, 2016 and December 31, 2015 consisted of the following: | | | | | | | | | | Equity Held as of | | September 30, 2016(5) | | December 31, 2015(5) | Private Equity(1)(2) | $ | 410,018 |
| | $ | 273,074 |
| Credit(1)(3) | 330,529 |
| | 313,116 |
| Real Estate | 30,767 |
| | 29,479 |
| Total equity method investments(4) | $ | 771,314 |
| | $ | 615,669 |
|
| | (1) | As of September 30, 2016, equity method investments include Fund VIII (Private Equity) and MidCap (Credit) of $242.8 million and $81.0 million, respectively, representing an ownership percentage of 2.2% and 4.7%, respectively. As of December 31, 2015, equity method investments include Fund VIII (Private Equity) and MidCap (Credit) of $116.4 million and $79.3 million, respectively, representing an ownership percentage of 2.2% and 4.9%, respectively. |
| | (2) | The value of the Company’s investment in AP Alternative Assets, L.P. (“AAA”) was $52,687 and $57,159 based on the quoted market price as of September 30, 2016 and December 31, 2015, respectively. |
| | (3) | The value of the Company’s investment in AINV was $51,534 and $41,833 based on the quoted market price as of September 30, 2016 and December 31, 2015, respectively. |
| | (4) | Certain funds invest across multiple segments. The presentation in the table above is based on the classification of the majority of such funds’ investments. |
| | (5) | Some amounts are included a quarter in arrears. |
As of September 30, 2016 and for the nine months ended September 30, 2016, no equity method investment held by Apollo met the significance criteria as defined by the SEC. The following tables present summarized financial information of Athene Holding, for which the fair value option was elected, for the three and nine months ended September 30, 2016 and 2015. Although the disclosure is not required by the significance criteria for the quarter ended September 30, 2016, for consistency purposes the Company chose to include this information as it was included in its quarterly report on Form 10-Q for the quarter ended June 30, 2016. | | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | 2016(1) | | 2015(1) | | 2016(1) | | 2015(1) | | in millions | Statements of Operations | | | | | | | | Revenues | $ | 1,047 |
| | $ | 544 |
| | $ | 2,818 |
| | $ | 2,554 |
| Expenses | 839 |
| | 413 |
| | 2,309 |
| | 1,981 |
| Income before income tax provision | 208 |
| | 131 |
| | 509 |
| | 573 |
| Income tax provision (benefit) | 16 |
| | 27 |
| | (29 | ) | | 62 |
| Net income | 192 |
| | 104 |
| | 538 |
| | 511 |
| Net income attributable to Non-Controlling Interests | — |
| | — |
| | — |
| | (46 | ) | Net income available to Athene common shareholders | $ | 192 |
| | $ | 104 |
| | $ | 538 |
| | $ | 465 |
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| | (1) | The financial statement information for the three and nine months ended September 30, 2016 and 2015 is presented a quarter in arrears and is comprised of the financial information for the three and nine months ended June 30, 2016 and 2015, which represents the latest available financial information as of the date of this report. |
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