Form 4: Apollo Global Management Executive Enters Forward Sale Contract for Up to 500,000 Shares

Joshua Harris, through affiliated entities, entered into a forward sale contract involving up to 500,000 shares of Apollo Global Management, Inc. common stock.

Summary

• On September 23, 2024, MJH Partners III LLC, a wholly-owned subsidiary of MJH Partners II LLC, entered into a delayed draw variable share forward sale transaction with an unaffiliated bank.
• The agreement, dated September 19, 2023, relates to up to 500,000 shares of Apollo Global Management, Inc. common stock.
• MJHP III is obligated to deliver up to 500,000 shares of common stock (or cash equivalent) to settle the agreement.
• MJHP III pledged 500,000 shares of common stock to secure its obligations under the agreement but retains voting and ordinary dividend rights.
• The number of shares to be delivered depends on the Settlement Price relative to the Floor Price and Cap Price, as defined in the agreement.
• The reporting persons disclaim 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. It is neither particularly positive nor negative from an investment perspective.

Risks

• The value received from the forward sale contract is dependent on the future stock price of Apollo Global Management, Inc.
• The structure of the agreement involves complex calculations based on the Settlement Price, Floor Price, and Cap Price, which could lead to unpredictable outcomes.

Future Outlook

The future settlement of the forward sale contract depends on the stock price of Apollo Global Management, Inc. and the terms outlined in the agreement.

Industry Context

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

Comparison to Industry Standards

• Forward sale contracts are a relatively common tool used by corporate insiders to manage their personal finances and diversify their holdings.
• Similar transactions have been undertaken by executives at companies like Blackstone and KKR, often involving a similar structure of pledging shares and settling based on pre-defined price parameters.

Stakeholder Impact

• The transaction could have a minor impact on shareholders if a significant number of shares are delivered to the bank, potentially diluting the stock.
• The impact on other stakeholders is likely to be minimal.

Key Dates