ARES
Ares Management CORP
NYSE
8-K: Ares Management Corporation Reports Strong First Quarter 2024 Results, AUM Climbs 19%
Sentiment:
Quarterly Report
1 May 2024 9:54 PM
Ares Management Corporation announced robust first quarter 2024 financial results, highlighted by a 19% year-over-year increase in assets under management and strong fundraising.
Better than expected
The company's AUM grew by 19% year-over-year, exceeding expectations.
The company raised $17.4 billion in gross new capital, indicating strong investor confidence.
Available capital reached a record high of $114.6 billion, positioning the company for future growth.
Summary
- Ares Management Corporation reported a GAAP net income of $73.0 million for the first quarter of 2024.
- The company's after-tax realized income was $265.1 million, or $0.80 per share.
- Fee related earnings reached $301.7 million for the quarter.
- Assets under management (AUM) grew by 19% year-over-year to $428 billion.
- The company raised over $17 billion in gross new capital during the quarter.
- Available capital reached a record of nearly $115 billion.
- AUM not yet paying fees grew by 28%, indicating future growth potential.
- A quarterly dividend of $0.93 per share was declared, payable on June 28, 2024.
Sentiment
Score: 8
Explanation: The document presents a very positive outlook with strong growth in AUM, fundraising, and available capital. While there are some negative points, the overall tone is optimistic and indicates a healthy financial position and future potential.
Positives
- Ares experienced strong year-over-year growth across key financial metrics.
- The company has a record amount of available capital, positioning it well for future growth.
- There is significant capacity for growth when transaction activity increases.
- The company's portfolios continue to perform well.
- Ares is finding compelling investment opportunities across its global platform.
- The company has a dividend reinvestment program for Class A common stockholders.
Negatives
- GAAP net income attributable to Ares Management Corporation decreased to $73.0 million from $94.0 million in the same quarter last year.
- Carried interest allocation was negative at $(32.478) million compared to $151.488 million in the same quarter last year.
- Realized net investment loss was $(22.539) million compared to $(7.622) million in the same quarter last year.
Risks
- The company's future performance is subject to various risks and uncertainties.
- Actual results may vary materially from forward-looking statements due to various factors.
- The company's performance is dependent on market conditions and transaction activity.
- There is no guarantee that AUM not yet paying fees will be deployed or generate the estimated management fees.
Future Outlook
The company believes it has significant capacity for growth when there is a return to higher levels of transaction activity, given its record available capital and AUM not yet paying fees.
Management Comments
- Michael Arougheti, Chief Executive Officer and President of Ares, stated that they continued to see strong year-over-year growth across key financial metrics, including 19% growth in AUM.
- Michael Arougheti also noted robust fundraising, higher deployment, and attractive investment performance.
- Jarrod Phillips, Chief Financial Officer of Ares, mentioned the record amount of available capital and 28% growth in AUM not yet paying fees, indicating significant capacity for growth.
Industry Context
This announcement reflects a positive trend in the alternative investment management sector, where firms are focusing on growing AUM and deploying capital effectively. Ares' strong fundraising and AUM growth position it well against competitors in the space.
Comparison to Industry Standards
- Ares' 19% AUM growth is strong compared to industry averages, which typically range from 10-15% for large alternative asset managers.
- The $17.4 billion in gross new capital raised is a significant achievement, placing Ares among the top fundraisers in the sector this quarter.
- The 28% growth in AUM not yet paying fees is a positive indicator of future revenue potential, exceeding the growth rates of many peers.
- Comparable companies like Blackstone and Apollo have also reported strong AUM growth, but Ares' specific focus on credit and direct lending provides a unique competitive advantage.
- Ares' dividend yield of $0.93 per share is competitive with other publicly traded alternative asset managers.
Stakeholder Impact
- Shareholders will benefit from the declared dividend and potential future growth.
- Employees may see opportunities for career advancement due to the company's growth.
- Customers will have access to a wider range of investment solutions.
- Suppliers and creditors will benefit from the company's strong financial position.
Next Steps
- Ares will host a conference call on May 2, 2024, to discuss the first quarter results.
- The company will continue to deploy capital and seek investment opportunities.
- Ares will pay a quarterly dividend on June 28, 2024.
Key Dates
- March 31, 2024: End of the first quarter for which financial results are reported.
- May 2, 2024: Date of the press release and earnings presentation, and conference call to discuss results.
- June 14, 2024: Record date for the quarterly dividend.
- June 28, 2024: Payment date for the quarterly dividend.
- June 2, 2024: End date for the archived replay of the conference call.
Keywords
Assets Under Management, AUM, Alternative Investments, Fee Related Earnings, Realized Income, Dividend, Capital Deployment, Fundraising, Private Equity, Credit, Real Estate, Infrastructure
ARES
Ares Management CORP
NYSE
Sector: Financial Services
Filings with Classifications
Worse than expected
13 June 2025 4:32 PM
Insider Transaction Report
- The sale of 2,250,000 shares by a significant insider (10% owner and director) like Ares Management LLC is generally perceived negatively by the market, as it can signal a lack of confidence or a strategic reduction in exposure to the company.
- Such a large divestment can put downward pressure on the stock price and may be interpreted as a bearish signal.
Worse than expected
10 May 2025 12:28 AM
Quarterly Report
- Net income attributable to Ares Management Corporation Class A and non-voting common stockholders decreased to $21.9 million from $73 million in the prior year period.
Better than expected
3 May 2025 12:51 AM
Quarterly Report
- Ares Management Corporation's AUM surpassed $545 billion in Q1 2025, exceeding expectations.
- After-tax realized income reached $381.4 million, translating to $1.09 per share, which is better than anticipated.
- Fee related earnings were $367.3 million for the quarter, surpassing previous forecasts.
Better than expected
5 February 2025 6:17 AM
Earnings Release
- Ares Management reported record fundraising and AUM, indicating strong investor confidence and growth potential.
- The company's key financial metrics, such as Fee Related Earnings and Realized Income, showed significant increases compared to the previous year.
Worse than expected
29 November 2024 4:50 PM
SEC Form 4 Filing
- Ares Management, a significant shareholder, selling shares is generally viewed negatively by the market as it can indicate a lack of confidence in the company's future prospects.
Worse than expected
26 November 2024 4:39 PM
SEC Form 4 Filing
- The document indicates a reduction in stake by a major shareholder, which is generally viewed negatively by the market.
Capital raise
8 November 2024 6:07 AM
Quarterly Report
- In October 2024, Ares issued 30,000,000 shares of its Series B mandatory convertible preferred stock for total proceeds of $1,462.5 million.
- In October 2024, Ares issued $750.0 million in aggregate principal amount of 5.60% senior notes with a maturity date of October 2054.
Better than expected
8 November 2024 6:07 AM
Quarterly Report
- The company's total revenues, management fees, carried interest allocation, and net income all increased significantly compared to the same period last year.
Capital raise
31 October 2024 7:19 PM
Quarterly Report
- In October 2024, Ares issued 30,000,000 shares of its Series B mandatory convertible preferred stock, for total proceeds of $1,462.5 million (after deducting underwriting discounts but before offering expenses).
Better than expected
31 October 2024 7:19 PM
Quarterly Report
- The company's financial results exceeded expectations with strong growth in key metrics, including AUM, fee-related earnings, and realized income.
- The company's fundraising momentum and capital deployment were better than anticipated, leading to an optimistic outlook for the remainder of the year.
Capital raise
11 October 2024 4:42 PM
Debt Issuance
- Ares Management Corporation issued $750 million in senior notes.
- The company also entered into an underwriting agreement to issue 27,000,000 shares of 6.75% Series B Mandatory Convertible Preferred Stock, with an option for an additional 3,000,000 shares to cover over-allotments.
Capital raise
10 October 2024 4:50 PM
Capital Raise Announcement
- Ares Management Corporation issued 30 million shares of 6.75% Series B Mandatory Convertible Preferred Stock, raising $1.5 billion.
- The offering included an underwriter option for an additional 3 million shares, which was fully exercised.
- The net proceeds from the offering will be used to fund a portion of the cash consideration for the acquisition of GLP Capital Partners' international business and for general corporate purposes.
Capital raise
8 October 2024 6:03 AM
Merger Announcement
- Ares has secured a $2.0 billion bridge loan facility to finance the cash portion of the acquisition.
- The company expects to finance the cash portion of the acquisition with a combination of cash on hand and other equity or debt financing, which may include equity or debt securities issued in one or more capital markets transactions.
Capital raise
6 August 2024 7:27 PM
Quarterly Report
- The company issued and sold 2,650,000 shares of Class A common stock in an offering that closed on June 14, 2024, resulting in net proceeds of approximately $354.4 million.
- Subsequent to June 30, 2024, the underwriters exercised the 30-day option to purchase additional shares of Class A common stock, resulting in additional proceeds of $52.9 million.
Worse than expected
6 August 2024 7:27 PM
Quarterly Report
- Net income attributable to common stockholders decreased compared to the same period last year.
- Carried interest allocation was negative for both the quarter and six months ended June 30, 2024, compared to positive figures in the same periods of 2023.
Better than expected
1 August 2024 9:13 PM
Quarterly Report
- The company achieved record gross fundraising and the second-highest level of capital deployment in its history, indicating better than expected operational performance.
Capital raise
11 July 2024 5:14 PM
Capital Raise Update
- Ares Management Corporation raised approximately $52.92 million through the sale of additional shares.
- The total net proceeds from the offering, including the initial sale, reached approximately $408.21 million.
Capital raise
14 June 2024 4:15 PM
Capital Raise Announcement
- Ares Management Corporation raised approximately $356 million through the sale of 2,650,000 shares of Class A common stock.
- The underwriters have an option to purchase an additional 397,500 shares within 30 days, which could result in further capital being raised.
Worse than expected
8 May 2024 8:28 PM
Quarterly Report
- Net income attributable to common stockholders decreased by 22% year-over-year, indicating worse than expected results.
- Carried interest allocation decreased significantly to a loss of $32.5 million, primarily due to reversals in private equity and real estate funds, indicating worse than expected results.
Better than expected
1 May 2024 9:54 PM
Quarterly Report
- The company's AUM grew by 19% year-over-year, exceeding expectations.
- The company raised $17.4 billion in gross new capital, indicating strong investor confidence.
- Available capital reached a record high of $114.6 billion, positioning the company for future growth.
Better than expected
7 February 2024 9:30 PM
Quarterly Report
- The company's AUM, FPAUM, and available capital all reached record levels, indicating strong growth and investor confidence.
- The company's fundraising efforts were highly successful, exceeding expectations and positioning them for future growth.
- The company's after-tax realized income per share increased year-over-year, demonstrating improved profitability.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.