AP Alternative Assets Releases Financial Results for the Three and Nine Months Ended September 30, 2020

AP Alternative Assets Releases Financial Results for the Three and Nine Months Ended September 30, 2020
AP Alternative Assets, L.P. (“AAA”, Euronext Amsterdam: AAA) today released its financial results for three and nine months ended September 30, 2020. AAA invests its capital through, and is the sole limited partner of, AAA Investments, L.P., which is referred to as the “Investment Partnership.”

Highlights

Net asset value at September 30, 2020 was $10.3 million, or $0.13 per unit, reflecting a net increase in net assets of approximately $1.0 million, or $0.01 per common unit during the three months ended September 30, 2020.
The increase in net asset value during the three months ended September 30, 2020 was driven by an increase in net assets from operations due to a realized gain on sale of 605,554 Athene shares by the Investment Partnership of $12.0, offset by the reversal of previously recognized unrealized gains of $(9.3) million.

Net Asset Value for AAA

At September 30, 2020, AAA had net assets of $10.3 million, including its share of the net assets of the Investment Partnership, as follows:

(in $ millions, except per unit amounts)	Net Asset Value as of September 30, 2020
Gross Asset Value:
Cash	$	9.6
Other	0.7
Net Asset Value(1)	$	10.3
Net Asset Value per Unit(1)	$	0.13
Net Common Units Outstanding	76,328,950

____________________________

(1) The remaining cash will be used be used to settle outstanding liabilities and expenses (including expenses relating to ultimately winding up AAA). After payment of these expenses the remaining cash of AAA (if any) will be distributed to AAA unitholders (unless the cash, on a per unit basis, is de minimis, in which case it is expected to be given to charity). This distribution which, based on information now available to AAA is currently estimated to be between USD 7 cents and 9 cents per AAA unit. A further announcement in this regard will be made at the relevant time. The net asset value also includes $0.8 million of prepaid management fees that will continue to be amortized over the life of the service period through December 31, 2020. If a decision is made to wind up AAA prior to the end of the service period, AAA will accelerate the amortization of the prepaid management fee.

Financial Report

AAA's interim report, which includes its unaudited financial statements and the unaudited consolidated financial statements of the Investment Partnership is available and can be downloaded free of charge at its website at: www.apolloalternativeassets.com.

Contact

Ann Dai (New York) +1 (212) 822 0678

Additional Information

A presentation will be available on the company’s website at http://www.apolloalternativeassets.com/ReportsAndFilings/AdditionalDocuments.aspx in connection with this press release.

About AAA

AAA was established by Apollo Global Management, Inc. and its subsidiaries (“Apollo”) and is a closed- end limited partnership established under the laws of Guernsey. Apollo is a leading global alternative investment manager with 30 years of experience investing across the capital structure of leveraged companies. AAA is managed by Apollo Alternative Assets, L.P. For more information about AAA, please visit www.apolloalternativeassets.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements involve risks and uncertainties because they relate to future events and circumstances. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results and developments to differ materially from the historical experience and expressed or implied expectations of AAA. Undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date on which they are made and AAA does not undertake to update its forward-looking statements unless required by law.

Financial Schedules Follow

Financial Schedule I

AP ALTERNATIVE ASSETS, L.P.STATEMENT OF OPERATIONS (unaudited) (in thousands)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2020

2019

2020

2019

NET INVESTMENT LOSS (ALLOCATED FROM AAA INVESTMENTS, L.P.)

Investment expenses

(1,150

)

(1,097)

(3,212)

(3,359)

EXPENSES

General and administrative expenses

(309)

(253)

(710

)

(840

)

NET INVESTMENT LOSS

(1,459

)

(1,350

)

(3,922

)

(4,199

)

UNREALIZED GAINS (LOSSES) FROM INVESTMENTS (ALLOCATED FROM AAA INVESTMENTS, L.P.)

Net increase (decrease) in unrealized (depreciation) appreciation of investment

2,483

(549)

(6,237

)

1,229

NET GAIN (LOSS) FROM INVESTMENTS

2,483

(549)

(6,237

)

1,229

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

1,024

(1,899

)

(10,159

)

(2,970

)

Financial Schedule II

AP ALTERNATIVE ASSETS, L.P.STATEMENT OF ASSETS AND LIABILITIES (in thousands, except per unit amounts)
	As of September 30, 2020 (unaudited)			As of December 31, 2019
ASSETS
Investment in AAA Investments, L.P.	$	16,632		$	26,080
Other assets	298			170
TOTAL ASSETS	16,930			26,250

LIABILITIES
Accounts payable and accrued liabilities	463			546
Due to affiliates	6,190			5,268
TOTAL LIABILITIES	6,653			5,814

NET ASSETS	$	10,277		$	20,436

NET ASSETS CONSIST OF:
Partners’ capital contribution (76,328,950 common units outstanding at September 30, 2020 and December 31, 2019)	$	1,621,541		$	1,621,541
Partners’ capital distributions	(3,967,667		)	(3,967,667		)
Accumulated increase in net assets resulting from operations	2,356,403			2,366,562

NET ASSETS	$	10,277		$	20,436

Net asset value per common unit	$	0.13		$	0.27

Market price per common unit	$	0.07		$	0.10

Financial Schedule III

AAA INVESTMENTS, L.P.CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (in thousands)

For the Three Months Ended September 30,

For the Six Months Ended September 30,

2020

2019

2020

2019

EXPENSES:

Management fees

(842

)

(842

)

(2,527

)

(2,527

)

General and administrative expenses

(309

)

(256

)

(687

)

(836

)

NET INVESTMENT LOSS

(1,151

)

(1,098

)

(3,214

)

(3,363

)

UNREALIZED GAIN (LOSS) FROM INVESTMENTS:

Net realized gains from sales/dispositions on investments

12,049

—

12,049

—

Net (decrease) increase in unrealized appreciation on investments

(9,317)

(604)

(18,911

)

1,350

NET GAIN (LOSS) FROM INVESTMENTS

2,732

(604)

(6,862

)

1,350

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

1,581

(1,702)

(10,076

)

(2,013

)

Financial Schedule IV

AAA INVESTMENTS, L.P.CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (in thousands)
	As of September 30, 2020 (unaudited)			As of December 31,2019
ASSETS
Investments:
Investment in Opportunistic Investment at fair value (cost of $0 and $9,570 at September 30, 2020 and December 31, 2019, respectively)	$	—		$	28,480
Cash and cash equivalents	9,626			14
Other assets	1,141			3,541
Due from affiliates	6,190			5,268
TOTAL ASSETS	16,957			37,303

LIABILITIES
Accounts payable and accrued liabilities	321			482
Line of Credit due to affiliates	0			8,725
TOTAL LIABILITIES	321			9,207

NET ASSETS	$	16,636		$	28,096

NET ASSETS CONSIST OF:
Partners' capital	$	(2,682,361	)	$	(2,680,977	)
Accumulated increase in net assets resulting from operations	2,698,997			2,709,073

NET ASSETS	$	16,636		$	28,096