Form 4: Ares Management Corp: Co-Founder Bennett Rosenthal Sells Shares Under 10b5-1 Plan

Bennett Rosenthal, Co-Founder and Chairman of Private Equity Group at Ares Management Corp, reports selling shares of Class A Common Stock under a pre-arranged 10b5-1 trading plan.

Summary

• Bennett Rosenthal, Co-Founder & Chairman of PEG at Ares Management Corp, filed a Form 4 detailing changes in beneficial ownership.
• The report indicates sales of Class A Common Stock on August 15, 2024, August 16, 2024 and August 19, 2024.
• These transactions were executed under a 10b5-1 trading plan adopted on May 16, 2024.
• Rosenthal sold shares at weighted average prices ranging from $144.13 to $146.35 on August 15, 2024, $144.14 to $145.85 on August 16, 2024 and $143.95 to $145.48 on August 19, 2024.
• He also acquired 250,000 shares of Class A Common Stock on August 15, 2024.
• After these transactions, Rosenthal directly owns 247,899 shares and indirectly owns 191,508 shares through BAR Holdings, LLC, and 1,105,052 shares through Ares Owners Holdings L.P.
• Rosenthal also indirectly owns 8,671,596 Ares Operating Group Units through Ares Owners Holdings L.P., which are exchangeable for Class A Common Stock on a one-for-one basis under certain conditions.

Sentiment

Score: 5

Explanation: The sentiment is neutral. The filing simply reports transactions under a pre-existing plan. While insider sales can sometimes be viewed negatively, the existence of a 10b5-1 plan mitigates this concern.

Negatives

• The sale of shares by a company co-founder and chairman could be perceived negatively by some investors.

Risks

• Continued sales under the 10b5-1 plan could exert downward pressure on the stock price.
• Changes in the Exchange Agreement governing the AOG Units could impact their value and exchangeability.

Future Outlook

The reporting person may continue to sell shares under the 10b5-1 trading plan.

Industry Context

Sales by insiders are common, and the use of 10b5-1 plans allows insiders to sell shares without being accused of acting on non-public information. The market will likely assess the impact of these sales in the context of overall market conditions and Ares Management's performance.

Comparison to Industry Standards

• Comparing Rosenthal's transactions to those of other executives at peer firms like Blackstone (BX), Apollo Global Management (APO), and KKR & Co. (KKR) could provide context.
• Analyzing the percentage of shares sold relative to Rosenthal's total holdings and the average trading volume of ARES stock would be useful.
• Benchmarking the weighted average sale prices against the average prices of ARES stock during the same periods would also be informative.

Stakeholder Impact

• Shareholders may react to the news of insider selling, although the pre-planned nature of the sales may lessen the impact.
• The sales could have a minor impact on the stock's liquidity.

Key Dates