ARES
Ares Management CORP
NYSE
8-K: Ares Management Corporation Reports Strong Fourth Quarter and Full Year 2023 Results, Declares Dividend
Sentiment:
Quarterly Report
7 February 2024 9:30 PM
Ares Management Corporation announced its financial results for the fourth quarter and full year 2023, highlighting significant growth in key financial metrics and a record level of available capital.
Better than expected
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.
Summary
- Ares Management Corporation reported GAAP net income of $174 million for the fourth quarter and $474.3 million for the full year 2023.
- After-tax realized income was $400.4 million for the quarter and $1,185.7 million for the year.
- Fee related earnings reached $368.7 million in the fourth quarter and $1,163.7 million for the year.
- The company raised $21 billion in the fourth quarter and over $74 billion for the full year, marking its second-highest level ever.
- Ares ended the year with a record $111 billion in available capital.
- Total assets under management (AUM) reached $419 billion, a 19% increase year-over-year.
- Fee-paying AUM (FPAUM) totaled $261.7 billion, a 13% increase year-over-year.
- A quarterly dividend of $0.93 per share was declared, payable on March 29, 2024.
Sentiment
Score: 8
Explanation: The document presents a very positive outlook with strong financial results, record capital levels, and successful fundraising. While there are some negative points, the overall tone is optimistic and indicates a healthy and growing business.
Positives
- Ares experienced strong fundraising momentum, securing $74 billion in capital for the year.
- The company's investment activity accelerated, contributing to a strong finish to the year.
- The acquisition of Crescent Point Capital added $3.7 billion to AUM.
- There is $62.9 billion of AUM not yet paying fees available for future deployment.
- The company has a dividend reinvestment program for Class A common stockholders.
Negatives
- Fee related performance revenues decreased by 23% for the quarter and 25% for the year.
- Realized income in the Private Equity Group decreased by 40% for the quarter.
- Realized income in the Real Assets Group decreased by 62% for the quarter and 33% for the year.
- Realized income in the Secondaries Group decreased by 7% for the year.
- The company's corporate investment portfolio was $2,041.3 million on an unconsolidated basis, but only $1,211.9 million in accordance with GAAP.
Risks
- The company's forward-looking statements are subject to various risks and uncertainties.
- Actual results may vary materially from those indicated in forward-looking statements.
- The company's performance is subject to market cycles and economic conditions.
- There is no guarantee that the $62.9 billion of AUM not yet paying fees will be deployed or generate the estimated $621.6 million in potential incremental annual management fees.
- The company's incentive eligible AUM may not always generate incentive fees.
Future Outlook
The company is positioned to invest opportunistically and drive continued strong growth in key financial metrics, with growing contributions from recent investments.
Management Comments
- Michael Arougheti, Chief Executive Officer and President of Ares, stated that the company generated significant year-over-year growth in key financial metrics, continued fundraising momentum, and accelerated investment activity.
- Jarrod Phillips, Chief Financial Officer of Ares, noted that the company ended the year with a record level of available capital, positioning them to invest opportunistically and drive continued strong growth.
Industry Context
Ares' results reflect the ongoing demand for alternative investment strategies, with strong growth in credit, private equity, and real assets. The company's ability to raise significant capital and deploy it effectively positions it well within the competitive landscape of alternative asset managers.
Comparison to Industry Standards
- Ares' AUM growth of 19% year-over-year is strong compared to other large alternative asset managers, such as Blackstone and Apollo, which have also seen growth but may have different focuses.
- The company's fundraising of $74 billion is a significant achievement, placing it among the top firms in terms of capital raising for the year.
- The dividend yield of Ares is competitive with other publicly traded alternative asset managers.
- The company's performance in specific sectors, such as direct lending, is in line with industry trends, while some areas like real estate are facing headwinds.
Stakeholder Impact
- Shareholders will benefit from the declared dividend and potential for future growth.
- Employees may benefit from the company's continued success and expansion.
- Customers will have access to a broader range of investment solutions.
- Suppliers and creditors will benefit from the company's financial stability.
Next Steps
- The company will continue to deploy its available capital opportunistically.
- Ares will host a conference call to discuss the results.
- The company will hold its Annual Meeting of Stockholders on June 4, 2024.
Key Dates
- February 8, 2024: Date of the earnings release and conference call.
- March 15, 2024: Record date for the quarterly dividend.
- March 29, 2024: Payment date for the quarterly dividend.
- April 5, 2024: Record date for the 2024 Annual Meeting of Stockholders.
- June 4, 2024: Date of the 2024 Annual Meeting of Stockholders.
Keywords
Ares Management Corporation, Alternative Investments, Assets Under Management, Fee Paying AUM, Financial Results, Dividend, Private Equity, Credit, Real Estate, Infrastructure, Secondaries
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.