ARES
Ares Management CORP
NYSE
8-K: Ares Management Corporation Reports Strong First Quarter 2025 Results, AUM Surpasses $545 Billion
Sentiment:
Quarterly Report
3 May 2025 12:51 AM
Ares Management Corporation announces robust Q1 2025 results, highlighted by strong fundraising, investing activities, and AUM exceeding $545 billion.
Better than expected
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.
Summary
- Ares Management Corporation reported its financial results for the first quarter ended March 31, 2025.
- GAAP net income attributable to Ares Management Corporation was $47.2 million.
- After-tax realized income was $381.4 million, or $1.09 per share of Class A common stock.
- Fee related earnings were $367.3 million.
- Total assets under management (AUM) reached $545.9 billion.
- Fee paying AUM (FPAUM) totaled $335.1 billion.
- Available capital stood at $142.0 billion.
- AUM not yet paying fees amounted to $99.2 billion.
- The company raised $20.2 billion in gross new capital commitments.
- Capital deployment reached $31.4 billion, including $16.7 billion by drawdown funds.
- Ares completed the acquisition of GCP International on March 1, 2025, increasing AUM by $45.3 billion.
- A quarterly dividend of $1.12 per share of Class A common stock was declared, payable on June 30, 2025.
- A quarterly dividend of $0.84375 per share of Series B mandatory convertible preferred stock was declared, payable on July 1, 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results, AUM growth, and strategic acquisitions. The management's comments are optimistic, and the company's position in the market appears solid.
Positives
- Ares reported strong first quarter results with robust fundraising and investing activities.
- The company experienced 20% or more year-over-year growth in many of its key financial metrics.
- The acquisition of GCP International significantly bolsters the Real Assets business.
- Ares has a history of resilient growth during market dislocations due to its management fee centric and asset-light business model.
- The company declared a dividend of $1.12 per share of its Class A common stock.
- The company declared a dividend of $0.84375 per share of its 6.75% Series B mandatory convertible preferred stock.
Negatives
- GAAP basic and diluted earnings per share of Class A and non-voting common stock was $0.00.
- Management and other fees decreased by 8% for Q1-25 compared to Q1-24 in the Private Equity Group, primarily driven by a corporate private equity extended value fund that stopped paying fees at the end of Q4-24.
- Fee Related Earnings decreased by 7% for Q1-25 compared to Q1-24 in the Private Equity Group, primarily due to the decrease in management fees.
- Realized Income decreased by 12% for Q1-25 compared to Q1-24 in the Private Equity Group, primarily due to the decrease in Fee Related Earnings as well as a realized investment loss from ACOF III in Q1-25 as the fund continues to liquidate its remaining assets, partially offset by higher realized net performance income from ACOF IV in Q1-25.
Risks
- The forward-looking statements are subject to various risks and uncertainties and assumptions relating to operations, financial results, financial condition, business prospects, growth strategy and liquidity.
- Actual results may vary materially from those indicated in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission.
Future Outlook
With a record amount of assets under management not yet paying fees of nearly $100 billion, Ares remains well positioned to make attractive investments in a volatile market environment, and the company's management fee centric and asset-light business model enables it to perform well through market cycles.
Management Comments
- Michael Arougheti, Chief Executive Officer of Ares, stated that the company reported strong first quarter results with robust fundraising and investing activities, 20% or more year-over-year growth in many of its key financial metrics and assets under management that surpassed a half a trillion dollars.
- Michael Arougheti, Chief Executive Officer of Ares, stated that the company is pleased with the initial integration progress for its recently closed and highly strategic acquisition of GCP International, which significantly bolsters its Real Assets business.
- Jarrod Phillips, Chief Financial Officer of Ares, stated that with a record amount of assets under management not yet paying fees of nearly $100 billion, the company remains well positioned to make attractive investments in a volatile market environment.
- Jarrod Phillips, Chief Financial Officer of Ares, stated that the company has a history of resilient growth during market dislocations as its management fee centric and asset-light business model enables it to perform well through market cycles.
Industry Context
Ares's results reflect the ongoing trend of investors allocating capital to alternative investment strategies, seeking higher returns and diversification in a low-yield environment. The acquisition of GCP International positions Ares to capitalize on the growing demand for real assets investments.
Comparison to Industry Standards
- Blackstone (BX) reported $1 trillion in AUM in Q1 2024, showcasing the scale achievable in alternative asset management.
- Apollo Global Management (APO) reported fee-related earnings of $606 million in Q1 2024, indicating strong profitability in the sector.
- KKR & Co. Inc. (KKR) reported $553 billion in AUM in Q1 2024, demonstrating the competitive landscape in attracting and managing assets.
- Brookfield Asset Management (BAM) reported $925 billion in AUM in Q1 2024, highlighting the significance of real assets in the alternative investment space.
- Compared to these industry leaders, Ares's AUM of $545.9 billion and fee-related earnings of $367.3 million demonstrate its strong position and growth trajectory within the alternative asset management industry.
Stakeholder Impact
- Shareholders will benefit from the declared dividends and the company's strong financial performance.
- Employees will benefit from the company's growth and strategic acquisitions.
- Customers will benefit from the company's expanded investment capabilities and offerings.
Next Steps
- Ares will host a conference call on May 5, 2025, to discuss first quarter results.
- Interested parties are invited to participate via telephone or the live webcast.
- An archived replay of the call will be available through June 5, 2025.
Key Dates
- March 1, 2025: Ares completed the acquisition of the international business of GLP Capital Partners Limited (GCP International).
- March 31, 2025: End of the first quarter for which financial results are reported.
- May 5, 2025: Date of the earnings announcement and conference call.
- June 15, 2025: Record date for preferred stock dividend.
- June 16, 2025: Record date for Class A common stock dividend.
- June 30, 2025: Payment date for Class A common stock dividend.
- July 1, 2025: Payment date for preferred stock dividend.
Keywords
Ares Management Corporation, AUM, assets under management, financial results, earnings, dividend, GCP International, alternative investment, private equity, real estate, credit, 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.