LOS ANGELES--(BUSINESS WIRE)--Sunbit, the company building financial technology for everyday expenses, announced today that it closed a $310 million debt warehouse facility led by Citi and Ares Management Credit funds. Established in 2016 to transform how consumers access, use and benefit from credit, Sunbit will leverage the funds to meet ever-increasing consumer demand for the company’s market-dominant Buy Now, Pay Later (BNPL) solution and the next-gen, no-fee Sunbit Card. Arad Levertov, CEO of Sunbit ...

Ralf Hahn Ares Management Corporation (NYSE:ARES) has outperformed most listed alternative asset managers in the past year with a one-year total return of about 57%. This was mainly attributable to its outsized emphasis on private credit, a hot buzzword in alternative investing. Direct lending was ~45% of ARES' AUM in 3Q23, whereas real estate was only ~12% of AUM, helping it navigate away from a tough sector in 2023. Data by YCharts Robust 3Q earnings amidst high interest rates ARES has had a notable 3Q23 ...

[PART I—FINANCIAL INFORMATION](index=9&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) Presents Ares Management Corporation's unaudited condensed consolidated financial statements and detailed notes for Q3 2023 [Condensed Consolidated Statements of Financial Condition](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $23.4 billion, liabilities to $18.3 billion, and equity to $4.0 billion as of September 30, 2023 Condensed Consolidated Statements of Financial Condition (in thousands) | Account | September 30, 2023 (unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$23,383,893** | **$22,002,839** | | Cash and cash equivalents | $311,827 | $389,987 | | Investments | $4,436,746 | $3,974,734 | | Assets of Consolidated Funds | $15,347,425 | $14,134,683 | | **Total Liabilities** | **$18,339,676** | **$17,097,810** | | Debt obligations | $2,340,173 | $2,273,854 | | CLO loan obligations, at fair value | $11,460,963 | $10,701,720 | | **Total Equity** | **$4,018,454** | **$3,798,618** | | Total stockholders' equity | $1,733,179 | $1,589,239 | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues rose to $2.58 billion, with net income attributable to stockholders significantly increasing to $300.4 million Key Operating Results (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$2,577,903** | **$2,117,719** | | Management fees | $1,853,304 | $1,546,350 | | Carried interest allocation | $541,828 | $417,779 | | **Total Expenses** | **$2,027,334** | **$2,062,654** | | **Income Before Taxes** | **$849,963** | **$167,997** | | **Net Income Attributable to AMC Stockholders** | **$300,376** | **$50,048** | | **Diluted EPS** | **$1.54** | **$0.23** | [Notes to the Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, covering goodwill, debt, segment reporting, and subsequent events [Note 3. Goodwill and Intangible Assets](index=17&type=section&id=Note%203.%20Goodwill%20and%20Intangible%20Assets) Net intangible assets decreased to $1.03 billion due to amortization and impairment, with goodwill at $997.8 million - In Q3 2023, the company recorded a non-cash impairment charge of **$65.7 million** on client relationships from the Landmark Partners acquisition due to lower expected fee-paying AUM in a private equity secondaries fund[53](index=53&type=chunk) - Following the SSG Buyout, the Ares SSG reporting unit was transferred to the Credit Group, and its total goodwill of **$224.6 million** was reallocated accordingly[58](index=58&type=chunk) Goodwill and Intangible Assets, Net (in thousands) | Account | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Intangible assets, net | $1,033,590 | $1,208,220 | | Goodwill | $997,801 | $999,656 | [Note 6. Debt](index=26&type=section&id=Note%206.%20Debt) Total debt obligations increased slightly to $2.34 billion, comprising various notes and a credit facility Company Debt Obligations (in thousands) | Debt Instrument | Maturity Date | Carrying Value (Sep 30, 2023) | Interest Rate (Sep 30, 2023) | | :--- | :--- | :--- | :--- | | Credit Facility | 3/31/2027 | $765,000 | 6.37% | | 2024 Senior Notes | 10/8/2024 | $249,240 | 4.21% | | 2030 Senior Notes | 6/15/2030 | $396,937 | 3.28% | | 2052 Senior Notes | 2/1/2052 | $484,101 | 3.77% | | 2051 Subordinated Notes | 6/30/2051 | $444,895 | 4.13% | | **Total Debt Obligations** | | **$2,340,173** | | [Note 13. Segment Reporting](index=38&type=section&id=Note%2013.%20Segment%20Reporting) Segments generated $795.0 million in FRE and $831.0 million in RI, primarily driven by the Credit Group - Effective January 1, 2023, Ares SSG was rebranded as Ares Asia and its credit business was reclassified into the Credit Group, while 'Strategic Initiatives' became 'Other'[173](index=173&type=chunk) Fee Related Earnings (FRE) by Segment (in thousands) | Segment | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Credit Group | $866,403 | $674,978 | | Private Equity Group | $80,399 | $54,214 | | Real Assets Group | $160,716 | $134,844 | | Secondaries Group | $71,262 | $80,111 | | Other | $7,454 | $747 | | Operations Management Group | ($391,219) | ($286,287) | | **Total FRE** | **$795,015** | **$658,607** | Realized Income (RI) by Segment (in thousands) | Segment | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Credit Group | $912,402 | $714,827 | | Private Equity Group | $86,264 | $47,631 | | Real Assets Group | $157,543 | $166,595 | | Secondaries Group | $67,227 | $80,245 | | Other | ($1,552) | ($8,383) | | Operations Management Group | ($390,929) | ($288,211) | | **Total RI** | **$830,955** | **$712,704** | [Note 15. Subsequent Events](index=55&type=section&id=Note%2015.%20Subsequent%20Events) Post-quarter, a $0.77 per share dividend was declared, and the AAC I SPAC business combination was terminated - In October 2023, the board declared a quarterly dividend of **$0.77 per share** of Class A and non-voting common stock[237](index=237&type=chunk) - The business combination agreement for the SPAC Ares Acquisition Corporation I (AAC I) was terminated in October 2023, with outstanding shares to be redeemed in Q4 2023[237](index=237&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operating results, key trends, and liquidity, highlighting stable fee income [Trends Affecting Our Business](index=56&type=section&id=Trends%20Affecting%20Our%20Business) Global markets faced volatility and rising rates, but the company's portfolio is well-positioned with floating-rate assets - Approximately **95%** of management fees for Q3 2023 were derived from perpetual capital vehicles and long-dated funds, ensuring a stable capital base[241](index=241&type=chunk) - The company's portfolio is positioned for a rising interest rate environment, with **86%** of debt assets and **56%** of total assets being floating-rate instruments as of September 30, 2023[246](index=246&type=chunk) - Recent strategic transactions include the acquisition of Crescent Point Capital and a partnership with Vinci Partners to expand in Latin America[247](index=247&type=chunk) [Managing Business Performance](index=57&type=section&id=Managing%20Business%20Performance) Total AUM grew to $394.9 billion and FPAUM to $247.7 billion, with $65.7 billion in AUM not yet paying fees AUM Rollforward Summary (in millions) | Metric | As of Sep 30, 2023 | As of Sep 30, 2022 | | :--- | :--- | :--- | | **Total AUM** | **$394,942** | **$341,416** | | Net New Commitments (Par/Equity + Debt) | $62,844 (YTD) | $43,603 (YTD) | FPAUM Rollforward Summary (in millions) | Metric | As of Sep 30, 2023 | As of Sep 30, 2022 | | :--- | :--- | :--- | | **Total FPAUM** | **$247,693** | **$218,636** | | Commitments & Deployment (YTD) | $33,158 | $49,502 | - As of September 30, 2023, AUM not yet paying fees was **$65.7 billion**, which could generate approximately **$647.4 million** in potential incremental annual management fees[267](index=267&type=chunk) [Results of Operations by Segment](index=73&type=section&id=Results%20of%20Operations%20by%20Segment) FRE increased 21% to $795.0 million and RI grew 17% to $831.0 million, primarily driven by the Credit Group Segment Fee Related Earnings (FRE) (in thousands) | Segment | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Credit Group | $866,403 | $674,978 | | Private Equity Group | $80,399 | $54,214 | | Real Assets Group | $160,716 | $134,844 | | Secondaries Group | $71,262 | $80,111 | | **Total FRE** | **$795,015** | **$658,607** | Segment Realized Income (RI) (in thousands) | Segment | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Credit Group | $912,402 | $714,827 | | Private Equity Group | $86,264 | $47,631 | | Real Assets Group | $157,543 | $166,595 | | Secondaries Group | $67,227 | $80,245 | | **Total RI** | **$830,955** | **$712,704** | [Liquidity and Capital Resources](index=108&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $311.8 million cash, generating $724.9 million from operations - As of September 30, 2023, the company had cash and cash equivalents of **$311.8 million** and **$765.0 million** in borrowings outstanding under its Credit Facility[476](index=476&type=chunk) - For the nine months ended September 30, 2023, net cash provided by operating activities was **$724.9 million**, while financing activities used **$759.2 million**, mainly for dividends (**$446.3 million**) and AOG unitholder distributions (**$313.8 million**)[483](index=483&type=chunk)[489](index=489&type=chunk) - The Tax Receivable Agreement (TRA) liability balance increased to **$165.6 million** as of September 30, 2023, from **$118.5 million** at year-end 2022[495](index=495&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=112&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk primarily stems from investment fair value movements, exchange rates, and credit risk - The company's main market risk is the impact of investment fair value movements on management fees, performance income, and investment income[501](index=501&type=chunk) - Exchange rate risk is managed through operational activities and, when appropriate, derivative instruments to hedge net foreign currency exposure[506](index=506&type=chunk) - Credit risk is minimized by limiting counterparties to reputable financial institutions and applying a rigorous, credit-oriented approach to all investments[507](index=507&type=chunk)[508](index=508&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 September 30, 2023, with no material changes - The principal executive officer and principal financial officer concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective[510](index=510&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended September 30, 2023[511](index=511&type=chunk) [PART II—OTHER INFORMATION](index=114&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=114&type=section&id=Item%201.%20Legal%20Proceedings) As of September 30, 2023, the company was not subject to any material pending legal proceedings - As of September 30, 2023, Ares Management Corporation was not subject to any material pending legal proceedings[513](index=513&type=chunk) [Item 1A. Risk Factors](index=114&type=section&id=Item%201A.%20Risk%20Factors) This section refers to previously disclosed risk factors in the Annual Report on Form 10-K and Q1 2023 Form 10-Q - The report directs readers to previously filed documents (Annual Report on Form 10-K for FY2022 and Q1 2023 Form 10-Q) for a detailed description of risk factors[514](index=514&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 occurred during the reporting period - No unregistered sales of equity securities occurred during the period covered by this report[515](index=515&type=chunk) [Item 6. Exhibits](index=115&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including equity compensation agreements and certifications - Exhibits filed with the report include various forms of Restricted Unit Agreements under the 2023 Equity Incentive Plan, as well as required CEO and CFO certifications[518](index=518&type=chunk)[519](index=519&type=chunk)

Financial Data and Key Metrics Changes - The company declared a fourth quarter common dividend of $0.77 per share, representing a 26% increase over the same quarter a year ago [5] - Total Assets Under Management (AUM) reached $395 billion, with a target of exceeding $500 billion by the end of 2025 [25] - Management fees totaled over $643 million in the quarter, an increase of 17% compared to the same period last year [25] - Fee-related earnings (FRE) totaled $274 million, an increase of 18% from the third quarter of 2022 [27] - The FRE margin in the third quarter was 41.2%, showing a 100 basis point improvement from the year-ago period [28] Business Line Data and Key Metrics Changes - The company raised $21.9 billion in new commitments during the quarter, marking the second highest fundraising quarter in its history [8] - The US direct lending business raised $11.6 billion in the third quarter, bringing total AUM in this strategy to nearly $118 billion [11] - The alternative credit strategy, Pathfinder II, closed approximately $2.2 billion in the third quarter, bringing total commitments to $5.8 billion [13] - The real estate debt business exceeded $11 billion, with a European real estate debt mandate raising over $1 billion [15] Market Data and Key Metrics Changes - The company noted a slower transaction activity due to higher capital costs and valuation disparities, but significant pent-up demand exists [7] - In Asia credit, nearly $400 million was raised in the quarter, with strong economic trends in India and Australia [14] - The company is seeing a growing opportunity to partner with the banking sector through its alternative credit business [21] Company Strategy and Development Direction - The company is focused on expanding its product capabilities and geographic reach, particularly in Asia and Latin America [22] - There is a strong emphasis on filling gaps left by traditional capital providers and banks, especially in the private credit market [37] - The company plans to continue exploring inorganic growth opportunities through strategic acquisitions and partnerships [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the underlying economy, despite the challenges posed by higher interest rates [6] - The company expects market activity to improve in 2024 due to aging private equity dry powder and growing pressure from limited partners [20] - Management highlighted strong visibility on continued earnings growth, dividend growth, and margin expansion [39] Other Important Information - The company has over $100 billion in dry powder available for future deployment, which is expected to generate nearly $650 million in incremental management fees [25] - The company is on track to meet or exceed its goal of reaching $25 billion or more in AUM for its insurance business by the end of 2025 [17] Q&A Session Summary Question: Update on bank partnerships and asset acquisitions - Management confirmed ongoing partnerships with banks and optimism about future opportunities in the asset-backed finance market [42] Question: Fundraising opportunities outside of credit - Management indicated a strong pipeline for fundraising across various verticals, including private equity and infrastructure funds [48] Question: LP dynamics and pricing concessions - Management stated that they are not experiencing any pressure for lower hurdles or pricing concessions in their credit funds [55] Question: Cap rates in non-traded REITs - Management reported cap rates for non-traded REITs at approximately 5.5% to 5.6%, reflecting an increase from the previous year [63] Question: Expectations for European waterfall funds - Management explained that the duration of underlying assets is extending, which may push out the timing of realizations but is expected to result in a larger build over time [66]

Ares Management Corporation Reports Third Quarter Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its third quarter ended September 30,2023. GAAP net income attributable to Ares Management Corporation was $61.8 million for the quarter ended September 30, 2023. On a basic and diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.30 for the quarter ended September 30, 2023. After-tax real ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36429 ARES MANAGEMENT CORPORATION (Exact name of Registrant as specified in its charter) Delaware 80-0962035 (State or other ...

Ares Management Corporation (NYSE:ARES) Q2 2023 Earnings Call Transcript August 1, 2023 12:00 PM ET Company Participants Carl Drake - Head of Public Markets and Investor Relations Michael Arougheti - Co-Founder, CEO, President and Director Jarrod Phillips - Partner and CFO Conference Call Participants Craig Siegenthaler - Bank of America Alex Blostein - Goldman Sachs Benjamin Budish - Barclays Brian McKenna - JMP Securities Patrick David - Autonomous Research Adam Beatty - UBS Michael Cyprys - Morgan Stanle ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36429 ARES MANAGEMENT CORPORATION (Exact name of Registrant as specified in its charter) Delaware 80-0962035 (State or other ...

Ares Management Corporation (NYSE:ARES) Q1 2023 Earnings Conference Call April 28, 2023 11:00 AM ET Company Participants Carl Drake - Head, Public Markets, IR Michael Arougheti - CEO Jarrod Phillips - CFO Bill Benjamin - Global Head, Real Estate Conference Call Participants Craig Siegenthaler - Bank of America Adam Beatty - UBS Alex Blostein - Goldman Sachs Michael Cyprys - Morgan Stanley Brian Mckenna - JMP Securities Benjamin Budish - Barclays Kenneth Lee - RBC Capital Markets Mike Brown - KBW Rufus Hone ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36429 ARES MANAGEMENT CORPORATION (Exact name of Registrant as specified in its charter) Delaware 80-0962035 (State or other juri ...