Form 4: Ares Management Corp Director Bennett Rosenthal Executes Stock Sales Under 10b5-1 Plan

Bennett Rosenthal, a Director and Co-Founder & Chairman of PEG at Ares Management Corp, sold shares of Class A Common Stock between March 15 and March 19, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Bennett Rosenthal, a Director and Co-Founder & Chairman of PEG at Ares Management Corp, reported the sale of Class A Common Stock between March 15 and March 19, 2024.
• The sales were executed under a 10b5-1 trading plan adopted on December 14, 2023.
• On March 15, 2024, 29,137 shares were sold at a weighted average price of $132.19, 8,366 shares at $133.33, and 700 shares at $134.22.
• On March 18, 2024, 7,260 shares were sold at a weighted average price of $130.15, 13,377 shares at $131.10, 1,300 shares at $131.78, and 218 shares at $132.82.
• On March 19, 2024, 1,431 shares were sold at a weighted average price of $130.08, 3,400 shares at $130.92, 11,661 shares at $132.05, and 617 shares at $132.76.
• Rosenthal also acquired 250,000 shares of Class A Common Stock on March 15, 2024, through the conversion of Ares Operating Group Units.
• Following these transactions, Rosenthal directly owns 220,863 shares and indirectly owns 172,533 shares through BAR Holdings, LLC, and 1,105,052 shares through Ares Owners Holdings L.P.
• He also indirectly holds 9,171,596 Ares Operating Group Units through Ares Owners Holdings L.P., which are exchangeable for Class A Common Stock on a one-for-one basis.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are part of a pre-planned trading strategy, mitigating potential negative interpretations. The director still holds a significant stake in the company.

Positives

• The sales were executed under a pre-arranged 10b5-1 trading plan, which is a common practice to avoid accusations of insider trading.
• Rosenthal still holds a substantial number of shares and units, indicating continued alignment with the company's success.

Negatives

• The sales by a director could be perceived negatively by some investors, although the existence of a 10b5-1 plan mitigates this concern.

Risks

• Continued sales by Rosenthal, even under the 10b5-1 plan, could put downward pressure on the stock price.
• Market perception of insider sales, regardless of the plan, could impact investor confidence.

Industry Context

Insider transactions are a common occurrence in publicly traded companies, and the use of 10b5-1 plans is a standard practice for executives to manage their stock holdings while avoiding potential insider trading issues. Investors often monitor these filings to gauge management's sentiment and potential future stock performance.

Comparison to Industry Standards

• Comparing Rosenthal's transactions to other executives in similar asset management firms requires analyzing their Form 4 filings and understanding their individual circumstances.
• It's important to consider the size of the sales relative to Rosenthal's total holdings and the overall trading volume of ARES stock.
• Analyzing similar transactions at companies like Blackstone (BX), Apollo Global Management (APO), and KKR & Co. Inc. (KKR) can provide a benchmark for assessing the significance of these sales.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders due to potential downward pressure on the stock price, although the 10b5-1 plan mitigates concerns about insider trading.
• The transactions are unlikely to have a significant impact on employees, customers, suppliers, or creditors.

Key Dates