Apollo Global Management (NYSE: APO) is set to join the S&P 500, following an announcement by S&P Dow Jones Indices. The company, which operates the Venetian casino hotel and convention center on the Las Vegas Strip, saw its stock surge 6.14% in after-hours trading on the news.

The change will take effect at the market open on December 23, along with other index adjustments including Workday Inc.'s addition and the removal of Qorvo Inc. and Amentum Holdings Inc.

Apollo's Gaming Portfolio and Performance

Since acquiring the Venetian's operating rights for $2.25 billion in March 2021 (as part of a $6.25 billion deal with VICI Properties), Apollo has:

• Invested $490 million in facility improvements
• Added new restaurants, a sportsbook, and poker room
• Committed an additional $1 billion for future improvements
• Successfully distributed employee bonuses and investor dividends

The company is currently expanding its gaming presence through the acquisition of Everi and International Game Technology's global gaming and PlayDigital divisions.

Significance of S&P 500 Inclusion

Apollo joins fellow private equity firms Blackstone and KKR as the third in its sector to be included in the S&P 500. This inclusion is significant because:

• The S&P 500 is one of the world's most-watched equity indices
• Trillions of dollars are benchmarked to the index
• Both active and passive funds tracking the index must purchase newly added stocks
• The index includes the largest U.S. publicly traded companies

This addition marks a successful turnaround from Apollo's previous Las Vegas venture with Caesars Entertainment, which ended in bankruptcy in 2017.

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