ARES
Ares Management CORP
NYSE
8-K: Ares Management Reports Record Fundraising and AUM in 2024, Eyes Active 2025
Sentiment:
Earnings Release
5 February 2025 6:17 AM
Ares Management Corporation announced strong fourth quarter and full year 2024 results, highlighted by record fundraising and assets under management, and expressed optimism for an active transaction environment in 2025.
Better than expected
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.
Summary
- Ares Management Corporation reported GAAP net income attributable to Ares Management Corporation of $177.3 million for the fourth quarter ended December 31, 2024.
- After-tax realized income was $434.7 million for the same quarter.
- Fee related earnings were $396.2 million for the quarter.
- The company raised $93 billion of new funds in 2024, achieving a record year in gross fundraising.
- Ares ended the year with $484 billion of assets under management (AUM).
- The company has $95 billion of assets under management not yet paying fees.
- Ares expects the GCP International transaction to close in the first quarter of the coming year.
- A quarterly dividend of $1.12 per share was declared for Class A and non-voting common stock, payable on March 31, 2025.
- A quarterly dividend of $0.84375 per share was declared for the 6.75% Series B mandatory convertible preferred stock, payable on April 1, 2025.
- The 2025 Annual Meeting of Stockholders will be held on June 6, 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with record fundraising and AUM, indicating strong growth and investor confidence. The management's optimistic comments and declared dividends further contribute to the positive sentiment.
Positives
- Record gross fundraising of $93 billion in 2024.
- Total AUM reached $484 billion.
- Significant amount of AUM not yet paying fees ($95 billion) indicates future revenue potential.
- Declared dividends for both Class A common stock and preferred stock.
- Successful acquisition of Walton Street Capital Mexico (WSM), adding $2.5 billion to AUM.
- Fee Related Earnings increased by 13% and 19% for Q4-24 and FY-24, respectively, compared to Q4-23 and FY-23, primarily driven by the increases in management fees.
- Realized Income increased by 10% and 17% for Q4-24 and FY-24, respectively, compared to Q4-23 and FY-23, primarily driven by the increases in Fee Related Earnings.
Negatives
- Fee related performance revenues decreased by 8% for Q4-24 compared to Q4-23 primarily due to lower incentive fees recognized from U.S. direct lending vehicles in Q4-24.
- Private Equity AUM decreased by 2% from Q4-23 as commitments to our seventh corporate private equity fund were offset by distributions from certain funds within the corporate private equity strategy
Risks
- Forward-looking statements are subject to various risks and uncertainties as detailed in the company's SEC filings.
- The company's performance is subject to market cycles and transaction environment.
Future Outlook
Ares is optimistic about entering a more active transaction environment in 2025, which should create more investment opportunities. The company is well-positioned to invest opportunistically and drive continued growth in key financial metrics over the next several years.
Management Comments
- Michael Arougheti, Chief Executive Officer of Ares, stated that the company set many financial records in 2024, including its best year ever in gross fundraising and capital deployed.
- Jarrod Phillips, Chief Financial Officer of Ares, noted that with a record $95 billion of assets under management not yet paying fees, the company is well positioned to drive continued strong growth in its key financial metrics over the next several years.
Industry Context
Ares's results reflect the broader trend of growth in alternative asset management, driven by investor demand for diverse investment strategies and higher returns. Competitors such as Blackstone, Apollo, and KKR have also reported significant AUM growth and fundraising success.
Comparison to Industry Standards
- Blackstone reported $991.3 billion in AUM as of Q4 2023, showcasing its leading position in the alternative asset management industry.
- Apollo Global Management reported $649 billion in AUM as of Q4 2023, demonstrating its strong presence in credit and private equity.
- KKR reported $553 billion in AUM as of Q4 2023, highlighting its diversified investment platform across various asset classes.
- Ares's $484 billion AUM positions it as a significant player in the industry, but still smaller than the largest firms.
Stakeholder Impact
- Shareholders will benefit from the declared dividends and potential for future growth.
- Employees may experience increased opportunities due to the company's expansion.
- Investors in Ares's funds can expect continued efforts to generate attractive investment returns.
Next Steps
- Ares expects the GCP International transaction to close in the first quarter.
- Ares will host a conference call on February 5, 2025, to discuss fourth quarter and full year results.
- The 2025 Annual Meeting of Stockholders will be held on June 6, 2025.
Key Dates
- December 31, 2024: End of fourth quarter and full year reporting period.
- February 5, 2025: Date of earnings release and conference call.
- March 15, 2025: Record date for preferred stock dividend.
- March 17, 2025: Record date for Class A and non-voting common stock dividend.
- March 31, 2025: Payment date for Class A and non-voting common stock dividend.
- April 1, 2025: Payment date for preferred stock dividend.
- April 7, 2025: Record date for Ares 2025 Annual Meeting of Stockholders.
- June 6, 2025: Date of the 2025 Annual Meeting of Stockholders.
Keywords
Ares Management, AUM, Fundraising, Financial Results, Dividends, Alternative Investment, Realized Income, Fee Related Earnings
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.
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
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).
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.