Question-and-Answer SessionMaybe just to kick it off, talk about how you currently see the macro backdrop. What are you seeing in terms of credit quality, deployment opportunities? How do you feel about activities in the back half of the year and into '26?Michael AroughetiCo-Founder, CEO & Director Yes, maybe macroeconomic first. I think the good news about our platform, we have a lot of data points that come in from our global real assets and credit book. We have investments in probably over 3,000 middle-m ...

Question-and-Answer SessionMaybe just to kick it off, talk about how you currently see the macro backdrop. What are you seeing in terms of credit quality, deployment opportunities? How do you feel about activities in the back half of the year and into '26?Michael AroughetiCo-Founder, CEO & Director Yes, maybe macroeconomic first. I think the good news about our platform, we have a lot of data points that come in from our global real assets and credit book. We have investments in probably over 3,000 middle-m ...

Ares Management (NYSE:ARES) FY Conference September 09, 2025 08:15 AM ET Company ParticipantsMichae Arougheti - Co-Founder, CEO & DirectorBen Budish - DirectorBen BudishAlright, good morning everyone. Welcome to our next session on our second day here at our financials conference. I'm Ben Budish. I cover the U.S. brokers, asset managers, and exchanges, and really delighted to have Michael Arougheti, CEO of Ares Management Corporation. Mike, thanks so much for being here.Michae AroughetiThanks for having me. ...

Leaf is Positioned as the Largest Direct-to-Consumer Residential Services and Home Improvement Company in North America Acquisition Expands Service Offerings, Creating a Comprehensive Home Solutions Platform HUDSON, Ohio , Sept. 8, 2025 /PRNewswire/ -- Leaf Home ("Leaf") announced today that it has acquired Erie Home ("Erie"), combining two of the foremost leaders in the direct-to-consumer ("DTC") home solutions sector. ...

Group 1 - The approach has received over 180 five-star reviews from members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities [1] - High Yield Investor focuses on balancing safety, growth, yield, and value in their investment strategies [2] Group 2 - Samuel Smith has extensive experience as a lead analyst and Vice President at dividend stock research firms [2] - The services offered by High Yield Investor include real-money portfolios, trade alerts, educational content, and an active investor chat room [2]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements and accompanying notes for the period ended June 30, 2025 [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Total assets grew to $27.3 billion, with Q2 2025 revenues reaching $1.35 billion and net income of $111.8 million Condensed Consolidated Statements of Financial Condition (in thousands) | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$27,264,941** | **$24,884,308** | | Goodwill | $3,436,192 | $1,162,636 | | Intangible assets, net | $2,220,065 | $975,828 | | **Total Liabilities** | **$18,425,558** | **$17,485,922** | | Debt obligations | $3,675,154 | $2,558,914 | | **Total Equity** | **$8,257,198** | **$6,824,190** | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,350,128** | **$788,682** | **$2,438,933** | **$1,496,045** | | Management fees | $900,622 | $721,681 | $1,717,609 | $1,409,373 | | Carried interest allocation | $323,901 | $(51,167) | $483,909 | $(83,645) | | **Total Expenses** | **$1,137,578** | **$564,544** | **$2,151,906** | **$1,103,037** | | **Net Income** | **$225,980** | **$276,251** | **$349,481** | **$480,066** | | Net income attributable to common stockholders | $111,750 | $94,938 | $133,607 | $167,965 | | **Diluted EPS** | **$0.46** | **$0.43** | **$0.48** | **$0.76** | Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,409,904 | $1,142,217 | | Net cash used in investing activities | $(1,767,608) | $(63,309) | | Net cash used in financing activities | $(1,744,928) | $(1,125,531) | | **Net change in cash and cash equivalents** | **$(998,320)** | **$(63,829)** | [Notes to the Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the $3.9 billion GCP acquisition, an upsized credit facility, and subsequent dividend declarations - On March 1, 2025, the Company completed the acquisition of GCP International for a total consideration of **$3.9 billion**, consisting of **$1.79 billion in cash**, **$1.66 billion in equity**, and **$465 million in contingent consideration**[49](index=49&type=chunk)[50](index=50&type=chunk) GCP Acquisition Purchase Price Allocation (in thousands) | Assets Acquired / Liabilities Assumed | Fair Value | | :--- | :--- | | Total identifiable assets acquired | $1,844,322 | | Accounts payable, accrued expenses and other liabilities | $203,969 | | **Net identifiable assets acquired** | **$1,640,353** | | **Goodwill** | **$2,270,422** | | **Net assets acquired** | **$3,910,775** | - In April 2025, the company amended its revolving Credit Facility, extending the maturity to April 2030 and increasing commitments to **$1.84 billion** from $1.40 billion[93](index=93&type=chunk) - The company has contingent liabilities related to the GCP acquisition, including an earnout for the data center business (up to **$1.0 billion**) and the Japan business (up to **$0.5 billion**)[112](index=112&type=chunk) - Subsequent to the quarter end, in July 2025, the board declared a quarterly dividend of **$1.12 per share** for Class A and non-voting common stock and **$0.84375 per share** for Series B preferred stock[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 performance, the GCP acquisition's impact, AUM growth, and segment results [Trends Affecting Our Business](index=56&type=section&id=Trends%20Affecting%20Our%20Business) Global markets performed well in Q2 2025 despite volatility, with the company's portfolio well-positioned - Global equity and debt markets experienced volatility but largely performed well during Q2 2025, supported by positive trade developments and resilient macroeconomic indicators[213](index=213&type=chunk) - Commercial real estate markets showed mixed performance; European markets began to recover due to interest rate cuts, while U.S. markets saw a slight decline[214](index=214&type=chunk)[215](index=215&type=chunk) - Private equity transaction volume slowed during the quarter due to macroeconomic and global trade uncertainty, leading to a heightened focus on disciplined underwriting[216](index=216&type=chunk) - As of June 30, 2025, approximately **85% of the company's debt assets** and **52% of its total assets** were floating rate instruments, positioning the portfolio for a fluctuating interest rate environment[217](index=217&type=chunk) [Managing Business Performance](index=57&type=section&id=Managing%20Business%20Performance) Key operating metrics show significant growth, with total AUM reaching $572.4 billion and FPAUM at $349.6 billion AUM and FPAUM Growth (in billions) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total AUM | $572.4 | $447.2 | | Fee Paying AUM (FPAUM) | $349.6 | $275.8 | - As of June 30, 2025, AUM not yet paying fees was **$86.8 billion**, which could generate approximately **$822.7 million** in potential incremental annual management fees[238](index=238&type=chunk) - Incentive Eligible AUM (IEAUM) was **$421.9 billion** and Incentive Generating AUM (IGAUM) was **$229.9 billion** as of June 30, 2025[240](index=240&type=chunk) [Consolidated Results of Operations](index=67&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2025 revenues grew 71% to $1.35 billion, while expenses rose 102%, driven by the GCP acquisition Consolidated Revenue Breakdown (in thousands) | Revenue Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Management fees | $900,622 | $721,681 | 25% | | Carried interest allocation | $323,901 | $(51,167) | NM | | Administrative, transaction and other fees | $91,563 | $40,973 | 123% | | **Total revenues** | **$1,350,128** | **$788,682** | **71%** | Consolidated Expense Breakdown (in thousands) | Expense Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Compensation and benefits | $643,709 | $419,858 | 53% | | Performance related compensation | $234,706 | $(28,985) | NM | | General, administrative and other expenses | $232,156 | $169,432 | 37% | | **Total expenses** | **$1,137,578** | **$564,544** | **102%** | - The increase in Compensation and Benefits for Q2 2025 was significantly impacted by the GCP acquisition, which included **$40.8 million in equity-based compensation** and **$20.8 million in other cash compensation costs**[279](index=279&type=chunk) - The increase in General, Administrative and Other Expenses was also driven by the GCP acquisition, which contributed **$54.7 million** in Q2 2025[285](index=285&type=chunk) [Segment Analysis](index=76&type=section&id=Segment%20Analysis) Segment performance varied, with strong FRE growth in Real Assets and Credit, leading to a 26% overall FRE increase Fee Related Earnings (FRE) by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Credit Group | $426,310 | $368,281 | 16% | | Real Assets Group | $113,645 | $51,643 | 120% | | Private Equity Group | $9,846 | $14,454 | (32)% | | Secondaries Group | $50,537 | $33,641 | 50% | | **Total FRE** | **$409,111** | **$324,516** | **26%** | Realized Income (RI) by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Credit Group | $435,494 | $408,205 | 7% | | Real Assets Group | $97,648 | $41,069 | 138% | | Private Equity Group | $12,858 | $11,392 | 13% | | Secondaries Group | $48,715 | $26,544 | 84% | | **Total RI** | **$397,814** | **$363,158** | **10%** | [Liquidity and Capital Resources](index=109&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is sufficient with $509.7 million in cash and $725.0 million available under the credit facility - As of June 30, 2025, the company had **$509.7 million in cash** and cash equivalents and **$725.0 million available** under its Credit Facility, with management believing these sources are sufficient[432](index=432&type=chunk) Company Cash Flow Summary (in thousands) | Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,164,527 | $879,653 | | Net cash used in investing activities | $(1,767,608) | $(63,309) | | Net cash used in financing activities | $(173,078) | $(878,127) | - The Tax Receivable Agreement (TRA) liability balance was **$508.6 million** as of June 30, 2025, with payments of **$8.1 million** for the first six months of 2025[453](index=453&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=113&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk exposures are reported for the six months ended June 30, 2025 - There have been **no material changes** in the company's market risks for the six months ended June 30, 2025[458](index=458&type=chunk)[459](index=459&type=chunk) [Item 4. Controls and Procedures](index=113&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025 - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[461](index=461&type=chunk) - There were **no changes in internal control** over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[462](index=462&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=114&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any legal proceedings expected to have a material adverse effect - The company and its affiliates are subject to legal proceedings and regulatory investigations from time to time, but management does not expect any current matters to have a **material impact** on its financial results[463](index=463&type=chunk) [Item 1A. Risk Factors](index=114&type=section&id=Item%201A.%20Risk%20Factors) The report refers to the risk factors detailed in the company's 2024 Annual Report on Form 10-K - The report directs investors to the risk factors detailed in the company's **Annual Report on Form 10-K for the year ended December 31, 2024**, for a comprehensive understanding of potential risks[464](index=464&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=114&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were conducted during the reporting period - **No unregistered sales of equity securities** occurred during the period covered by this report[465](index=465&type=chunk) [Item 5. Other Information](index=115&type=section&id=Item%205.%20Other%20Information) Certain executives and directors entered into Rule 10b5-1 trading plans during the second quarter of 2025 Rule 10b5-1 Trading Plans Adopted in Q2 2025 | Name and Title | Plan Date | Maximum Shares That May Be Sold | Plan Expiration Date | | :--- | :--- | :--- | :--- | | Antony Ressler, Executive Chairman & Co-Founder | May 21, 2025 | 2,000,000 | February 13, 2026 | | Naseem Sagati Aghili, General Counsel and Corporate Secretary | June 11, 2025 | 42,000 plus shares from vested RSUs | March 1, 2026 | [Item 6. Exhibits](index=116&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key agreement amendments and certifications - Key exhibits filed with this report include **Amendment No. 13 to the Credit Agreement**, the Sixth Amended and Restated Exchange Agreement, and the Sixth Amended and Restated Limited Partnership Agreement of Ares Holdings L.P[475](index=475&type=chunk)

Exhibit 99.2 Second Quarter 2025 Earnings Presentation 0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Disclaimer Statements included herein may constitute "forward-looking statementsˮ within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which may relate to futur ...

Financial Data and Key Metrics Changes - Ares Management reported a quarterly dividend of $1.12 per share, representing a 20% increase compared to the same quarter last year [4] - The company achieved a record management fee of $900 million, reflecting a 24% year-over-year increase [33] - Fee-related earnings (FRE) for the quarter were $409 million, marking a 26% year-over-year growth, with FRE margins at 41.2% [35] Business Line Data and Key Metrics Changes - The total assets under management (AUM) increased to $572 billion, showing a quarter-over-quarter organic growth of 19% on an annualized basis [8] - Fee-paying AUM (FPAUM) rose to $350 billion, representing a quarter-over-quarter organic growth of 17% on an annualized basis [9] - The secondaries business saw a 29% increase in AUM to nearly $34 billion, with $2.5 billion raised during the quarter [16] Market Data and Key Metrics Changes - In the U.S. direct lending market, the company experienced a year-over-year comparable EBITDA growth of 13% with a low loan-to-value ratio of 43% [25] - European direct lending showed strong performance with a loan-to-value ratio of 49% and interest coverage of 2.3x, indicating healthy credit quality [70] - The company raised over $1.3 billion in infrastructure, including $850 million for its first Japan data center development fund [15] Company Strategy and Development Direction - Ares Management is focused on expanding its wealth distribution network, now partnering with over 80 firms globally, a 33% increase year-over-year [19] - The company is optimistic about the growth potential in the data center and digital infrastructure sectors, leveraging its recent GCP acquisition [30] - Ares aims to capitalize on the increasing demand for private credit and alternative investments, particularly in the wealth channel [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business amid market volatility, with strong fundraising and investment performance [7] - The company anticipates a strengthening transaction market environment in the third quarter, supported by lower short-term rates and significant private equity dry powder [28] - Management highlighted the importance of maintaining a balance between capital growth and quality deployment to mitigate risks [60] Other Important Information - The integration of GCP is progressing well, with expected synergies contributing positively to the financial outlook [32] - The company reported a net accrued performance income balance of $1.1 billion, an 8.5% increase from the previous quarter [10] - Ares Management's insurance platform, Aspida, generated over $1.9 billion in new premiums during the quarter, indicating strong demand [22] Q&A Session Summary Question: Discussion on private credit and institutional demands - Management noted that while private credit fundraising has been down sequentially, Ares continues to see institutional appetite for private credit, maintaining fee structures despite market pressures [47][49] Question: Opportunities in alternative investments - Management emphasized their commitment to democratizing access to alternative investments and readiness to offer products as the market opens [56][58] Question: Update on deployment pipelines - Management expressed confidence in the growing pipelines across various business segments, including direct lending and real estate, despite market fluctuations [64] Question: Comparison of European and U.S. direct lending markets - Management indicated that European markets are becoming more attractive due to different rate trajectories, with credit quality remaining stable across both regions [70] Question: Investment in distribution and partnerships - Management confirmed ongoing investments in product development and distribution efforts, particularly in international markets, to drive growth [76][78]

Financial Data and Key Metrics Changes - Ares Management reported a quarterly AUM increase to $572 billion, representing a quarter-over-quarter organic growth of 19% on an annualized basis [7] - The company declared a quarterly dividend of $1.12 per share, a 20% increase compared to the same quarter last year [3] - Management fees reached a record $900 million, reflecting a 24% year-over-year increase [32] - Fee-related earnings (FRE) grew by 26% year-over-year, with FRE margins at 41.2% [34] Business Line Data and Key Metrics Changes - The second quarter deployment in the U.S. was $27 billion, slightly higher than the previous year despite market pauses [8] - The FPAUM increased to $350 billion, representing quarter-over-quarter organic growth of 17% [8] - The secondaries business saw a 29% increase in AUM to nearly $34 billion [15] - The real estate segment raised $2.4 billion in capital during the quarter, primarily from non-traded REITs [12] Market Data and Key Metrics Changes - Approximately 55% of fundraising was from products, with 30% into commingled funds and 25% into SMAs [10] - International demand accounted for more than one-third of year-to-date flows, with strong traction in Europe and Asia [19] - The European direct lending strategy raised over $1.1 billion from new SMAs and $800 million in the wealth channel [12] Company Strategy and Development Direction - Ares Management is focused on scaling its fundraise and expanding its global wealth distribution network, now partnering with over 80 firms globally [19] - The company anticipates significant growth in its data center asset management business and global industrial development [9] - Ares is positioned to capitalize on the growing demand for alternative investments, particularly in the wealth channel [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transaction market environment strengthening into the third quarter, supported by lower short-term rates and record amounts of private equity dry powder [27] - The integration of the GCP acquisition is progressing well, with expectations of enhanced fund performance and additional revenue streams [30] - The company remains confident in its ability to generate unique investment opportunities and maintain strong deployment across various market conditions [62] Other Important Information - The net accrued performance income balance increased by 8.5% to $1.1 billion, reflecting strong investment results [9] - Ares anticipates that perpetual capital will continue to represent a significant percentage of AUM growth, providing greater visibility in revenue growth and profitability [23] - The company is experiencing strong demand for its sports media and entertainment strategy, with significant commitments raised [11] Q&A Session Summary Question: Discussion on private credit and institutional demands - Management noted that private credit fundraising has not outpaced other alternative asset classes, but they continue to see institutional appetite for private credit [49] - They emphasized that fee pressure has not been significant, and they maintain a strong position in the market [50] Question: Opportunities in the alternative market - Management expressed enthusiasm for the democratization of alternatives and is prepared to offer products as the market opens [58] Question: Update on deployment pipelines - Management indicated confidence in the growing pipelines across various business segments, including direct lending and real estate [66] Question: Comparison of European and U.S. direct lending markets - Management highlighted that European markets are becoming more attractive due to different rate trajectories and increased investor appetite [70] Question: Retail distribution and international flows - Management confirmed ongoing investments in product development and distribution, with expectations for continued growth in international markets [78]

Financial Performance - GAAP net income attributable to Ares Management Corporation was $137.1 million[1] - After-tax realized income was $367.9 million, with after-tax realized income per share of Class A common stock at $1.03[2] - Fee related earnings reached $409.1 million[2] Assets Under Management (AUM) - Total AUM reached $572.4 billion, a 28% increase year-over-year[9, 32, 35] - Total fee paying AUM was $349.6 billion, a 27% increase year-over-year[23, 32, 35] - Available capital stood at $150.8 billion[3, 23, 46] - AUM not yet paying fees available for future deployment was $86.8 billion, potentially generating $822.7 million in incremental annual management fees[23, 49] Capital Activity - Gross new capital commitments totaled $26.2 billion[23, 31] - Capital deployment amounted to $26.9 billion, including $13.0 billion by drawdown funds[23, 61, 65] Dividends - A quarterly dividend of $1.12 per share was declared for Class A and non-voting common stock[4, 23] - A quarterly dividend of $0.84375 per share was declared for the 6.75% Series B mandatory convertible preferred stock[5, 23]