SCHEDULE: Ares Management Ownership Update: 35% Stake

Ares Partners Holdco LLC and Ares Owners Holdings L.P. disclose a combined beneficial ownership of 35.0% of Ares Management Corporation's Class A common stock.

Summary

• Ares Partners Holdco LLC and Ares Owners Holdings L.P. collectively beneficially own 114,319,098 shares of Ares Management Corporation's Class A common stock.
• This represents 35.0% of the Class A common stock outstanding.
• The ownership includes 7,036,729 Class A Shares and 107,282,369 partnership units (AOG Units) convertible one-for-one into Class A Shares.
• The percentage is calculated based on 219,370,893 Class A Shares outstanding as of June 30, 2025, as increased by the 107,282,369 Class A Shares issuable upon conversion of AOG Units.
• Antony P. Ressler, a Board Member, holds a significant portion, with 54,700,000 shares/units through Ares Owners, and has veto authority over Board decisions.
• The Board Members collectively beneficially own 118,703,251 Class A Shares, representing 36.1% of the outstanding Class A Shares, including AOG Units and Restricted Stock Units.

Sentiment

Score: 7

Explanation: The filing is a routine Schedule 13G amendment disclosing significant, stable insider ownership, which generally indicates strong alignment between management and shareholder interests. It does not contain new financial performance data or strategic announcements.

Positives

• Significant insider ownership by Ares Partners Holdco LLC and Ares Owners Holdings L.P., totaling 35.0%, indicates strong alignment with shareholder interests.
• The collective beneficial ownership of 36.1% by the Board Members, including Antony P. Ressler who holds veto authority, suggests stable control and long-term commitment to the company's direction.

Risks

• Concentrated ownership by Ares Partners Holdco LLC and Ares Owners Holdings L.P. (35.0%) and the Board Members (36.1%) could limit the influence of other shareholders on corporate decisions.
• Antony P. Ressler's veto authority over Board decisions introduces a single point of control, potentially impacting governance dynamics.

Future Outlook

NA

Industry Context

Ares Management Corporation is a global alternative investment manager. This filing indicates significant insider and founder ownership, which is a common characteristic among leading firms in the alternative asset management industry, often ensuring strong alignment between management and long-term company performance.

Comparison to Industry Standards

• The 35.0% beneficial ownership by Ares Partners Holdco LLC and Ares Owners Holdings L.P. is a substantial stake, typical for founding or controlling entities in alternative asset management firms like Blackstone (BX), KKR (KKR), or Apollo Global Management (APO), where founders and key executives often retain significant equity.
• Antony P. Ressler's 54.7 million shares/units and veto power are consistent with the strong influence often held by founders in these types of firms, similar to Stephen Schwarzman at Blackstone or Henry Kravis and George Roberts at KKR.
• The structure involving Class A shares and convertible partnership units (AOG Units) is a common mechanism in publicly traded alternative asset managers to manage liquidity and control, seen in firms like The Carlyle Group (CG) or Blue Owl Capital (OWL).

Related Party Transactions

• Ares Partners Holdco LLC is the general partner of Ares Owners Holdings L.P., which holds the reported securities.
• The Board Members of Ares Partners Holdco LLC (Michael J Arougheti, R. Kipp deVeer, David B. Kaplan, Antony P. Ressler, and Bennett Rosenthal) are significant beneficial owners through Ares Owners.
• Antony P. Ressler, a Board Member, holds a substantial portion of the reported securities and has veto authority over Board decisions.

Stakeholder Impact

• Shareholders: The significant insider ownership by key management and founding entities suggests strong alignment of interests, potentially leading to more stable long-term strategic decisions. However, concentrated control may limit the influence of minority shareholders.

Key Dates

Recommendation

This Schedule 13G filing is a routine disclosure of beneficial ownership by key insiders and related entities. It confirms a substantial and stable ownership stake by Ares Partners Holdco LLC and Ares Owners Holdings L.P., including significant holdings by the Board Members. This level of insider alignment is generally viewed positively as it suggests management's interests are closely tied to shareholder value. However, the filing does not contain new financial performance data, strategic updates, or other information that would warrant a change in investment thesis. Therefore, a 'hold' recommendation is appropriate for investors already considering or holding the stock, as the filing reinforces the existing ownership structure without providing new catalysts for significant price movement.

Keywords

Ares Management, ARES, Schedule 13G, beneficial ownership, Class A common stock, institutional ownership, insider holdings, investment management, alternative assets