Form 4: Apollo Global Management Executive Enters Forward Sale Agreement for Up to 1 Million Shares

Joshua Harris, through affiliated entities, entered into a delayed draw variable share forward sale transaction involving up to 1,000,000 shares of Apollo Global Management common stock.

Summary

• Joshua Harris, through MJH Partners II LLC and its subsidiary MJH Partners III LLC, entered into a delayed draw variable share forward sale transaction with an unaffiliated bank on April 9, 2024.
• The agreement involves up to 1,000,000 shares of Apollo Global Management common stock.
• MJHP III pledged 1,000,000 shares to secure its obligations under the agreement but retains voting and ordinary dividend rights.
• The number of shares to be delivered to the bank on the settlement date depends on the Settlement Price, Floor Price, and Cap Price as defined in the agreement.
• The agreement includes provisions for both prepaid and non-prepaid components, with different settlement terms for each.
• Joshua Harris disclaims beneficial ownership of the reported securities except to the extent of his or its pecuniary interest therein.

Sentiment

Score: 5

Explanation: The document describes a financial transaction with neutral implications. The sentiment is neither overly positive nor negative as it simply outlines the terms of the agreement.

Risks

• The value received from the forward sale agreement is dependent on the future stock price of Apollo Global Management, which is subject to market fluctuations.
• The terms of the agreement are complex and involve multiple variables (Settlement Price, Floor Price, Cap Price) that could impact the final outcome.
• There is a risk that the bank's hedging activities could negatively impact the stock price.

Future Outlook

The future outcome of the forward sale agreement depends on the price of Apollo Global Management's common stock at the settlement dates, which will determine the number of shares or cash to be delivered.

Management Comments

• Each of the Reporting Persons disclaims beneficial ownership of the reported securities except to the extent of his or its pecuniary interest therein.
• The Reporting Persons disclaim beneficial ownership of any securities deemed to be owned by the group that are not directly owned by the applicable Reporting Person.

Industry Context

Forward sale agreements are often used by executives and major shareholders to monetize their holdings while deferring capital gains taxes and maintaining some level of control over their shares.

Comparison to Industry Standards

• Forward sale agreements are a relatively common tool used by corporate insiders to manage their equity positions.
• Similar transactions have been undertaken by executives at companies like Blackstone and KKR, often involving hedging strategies to mitigate risk.
• The specific terms of this agreement, such as the Floor Price and Cap Price, will determine its relative attractiveness compared to other similar transactions.

Stakeholder Impact

• The forward sale agreement could potentially impact shareholders if the bank's hedging activities influence the stock price.
• The agreement does not directly impact employees, customers, suppliers, or creditors.

Key Dates