.5 billion remaining from new investments that we expect will be allocated to yields in the coming months, therefore our current expectation is that Fund IX will enter its investment period sometime during the first quarter of 2018. When Fund IX enters its investment period and begins generating managem

e coming months, therefore our current expectation is that Fund IX will enter its investment period sometime during the first quarter of 2018. When Fund IX enters its investment period and begins generating management fees, Fund VIII's fees will move into the post investment period. In addition on Janua

g change is driven by our expectation =or improving fee related earnings (FRE), fund returns, and a rising =istribution. We expect FRE to improve as Fund IX is raised and turns on =-$0.25 benefit initially, -20% to FRE and -10% to ENI, economic net =ncome); returns to improve with economic growth; and di

pollo has done a =ood job growing its more stable FRE, notably due to significant growth =n its Credit segment, and this should benefit further with Fund IX in =E (we expect it in 2H17 and given strong returns we expect at least a =imilar raise of -$18B). While fund returns picked up meaningfully in =111

are up —3.3% on avg. We'd look to get more positive if: I) the current deployment pace in Fund VIII continues, pulling forward the fundraising for Fund IX to early 2017 (we model 4Q17-1Q18) and 2) Credit fundraising momentum persists and shifts gears to gathering assets with meaningfully higher econom

(30%+ upside), UBS's Brennan Hawken is impressed with how much money Apollo put to work in Fund VIII Q3, thus allowing fundraising to get going for Fund IX. Importantly, Apollo isn't just throwing money at deals - the average deal in Fund VIII was done at about 6x EBITDA (vs. industry average of 11x),