Form 4: Ares Management Co-Founder David Kaplan Sells Over 33,000 Shares Under Pre-Arranged Trading Plan

Ares Management Corp. Co-Founder David B. Kaplan reported the sale of 33,145 shares of Class A Common Stock for approximately $5.47 million on May 30, 2025, executed under a Rule 10b5-1 trading plan.

Summary

• David B. Kaplan, Co-Founder, Director, and Officer of Ares Management Corp. (ARES), reported a transaction on May 30, 2025.
• He sold 33,145 shares of Class A Common Stock.
• The shares were sold at a weighted average price of $165.12 per share, totaling approximately $5,470,000.
• The sale was executed pursuant to a Rule 10b5-1 trading plan adopted on February 13, 2025.
• Following the transaction, Mr. Kaplan directly holds 0 shares of Class A Common Stock.
• He indirectly beneficially owns 1,025,052 shares of Class A Common Stock through Ares Owners Holdings L.P. (AOH).

Sentiment

Score: 5

Explanation: The document reports a routine insider stock sale by a co-founder under a pre-arranged 10b5-1 plan. While any insider sale can be viewed with slight caution, the pre-planned nature mitigates negative implications, making the overall sentiment neutral as it's a standard disclosure rather than a reflection of new company performance.

Positives

• The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating it was not based on new, non-public information and was scheduled in advance, which can mitigate negative market interpretations.

Negatives

• A significant sale of 33,145 shares by a key insider (Co-Founder, Director, Officer) could be perceived as a reduction in direct exposure to the company's stock, even if pre-planned.

Risks

• While executed under a 10b5-1 plan, large insider sales can sometimes be interpreted by the market as a lack of confidence, potentially leading to negative sentiment or downward pressure on the stock price.

Future Outlook

The document is an insider transaction report and does not contain forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• "This transaction was effected pursuant to a 10b5-1 trading plan adopted on February 13, 2025 by the reporting person, or a vehicle controlled by him."
• "The price reported in Column 4 is a weighted average price. These shares were sold on May 30, 2025 in multiple transactions at prices ranging from $165.00 to $165.35."
• "The reporting person undertakes to provide to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote."
• "The reporting person or a vehicle controlled by him is a limited partner in Ares Owners Holdings L.P. ('AOH'), the direct holder of the shares of Class A Common Stock. The shares of Class A Common Stock indirectly held by the reporting person or the vehicle are the number of shares of Class A Common Stock that he or the vehicle has a right to receive as a limited partner in AOH."

Industry Context

This Form 4 filing reports a routine insider stock transaction for Ares Management Corp., a global alternative investment manager. Such filings are common across the financial services industry as executives manage their personal holdings, often through pre-arranged trading plans to comply with insider trading regulations.

Comparison to Industry Standards

• This document reports a standard insider transaction (Form 4) as required by SEC regulations.
• The use of a Rule 10b5-1 trading plan is a common and accepted practice among corporate insiders in the U.S. financial industry to manage stock sales while mitigating concerns about insider trading, aligning with best practices for corporate governance and transparency in executive compensation and stock ownership.

Related Party Transactions

• David B. Kaplan indirectly holds 1,025,052 shares of Class A Common Stock through Ares Owners Holdings L.P. (AOH), where he or a controlled vehicle is a limited partner. This represents an ongoing related party ownership structure.

Stakeholder Impact

• Shareholders may note the sale of shares by a key co-founder, which could be interpreted in various ways depending on individual investment strategies and market sentiment, though the 10b5-1 plan context is important.

Next Steps

• The document is a regulatory filing reporting a completed transaction and does not outline specific future actions or milestones for the company.

Key Dates

Keywords

Ares Management Corp, ARES, SEC Form 4, Insider Trading, Stock Sale, David B. Kaplan, 10b5-1 Plan, Beneficial Ownership, Financial Services, Asset Management