Core Insights - Ares Management reported a revenue of $897.58 million for the quarter ended March 2025, reflecting a year-over-year increase of 21.9% and an EPS of $1.09, up from $0.80 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $913.68 million by 1.76%, while the EPS exceeded the consensus estimate of $0.94 by 15.96% [1] Financial Performance Metrics - The total FPAUM (Fee-Generating Assets Under Management) ending balance was $335.07 billion, surpassing the average estimate of $327.60 billion [4] - The Credit Group's FPAUM ending balance was $218.23 billion, slightly above the estimated $217.62 billion [4] - The Private Equity Group's FPAUM ending balance was $11.35 billion, below the estimated $13.08 billion [4] - The Real Assets Group's FPAUM ending balance was $76.43 billion, exceeding the average estimate of $66.98 billion [4] Revenue Breakdown - Other fees amounted to $38.17 million, significantly higher than the average estimate of $26.37 million, representing a year-over-year increase of 92% [4] - Fee-related performance revenues were reported at $28.05 million, compared to the estimated $12.38 million, marking a substantial increase of 654.7% year over year [4] - Management fees reached $818.38 million, slightly above the average estimate of $817.56 million, reflecting an 18% year-over-year increase [4] - Performance income-realized was $125.45 million, exceeding the estimated $70.69 million, with a year-over-year increase of 441.2% [4] Realized Income Analysis - Realized income from the Secondaries Group was $39.67 million, above the average estimate of $36.96 million, representing a year-over-year increase of 71.6% [4] - Realized income from the Real Assets Group was $87.60 million, surpassing the estimated $70.94 million, with a year-over-year change of 93% [4] - Realized income from the Credit Group was $431.94 million, slightly above the estimated $415.44 million, reflecting a 21.3% year-over-year increase [4] - Realized income from Other Businesses was reported at $10.77 million, compared to the average estimate of $9.24 million, but showed a significant year-over-year decline of 286.9% [4] Stock Performance - Ares Management shares have returned +33.1% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Ares Management reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and showing an increase from $0.80 per share a year ago, indicating a 15.96% earnings surprise [1] Group 1: Earnings Performance - The company surpassed consensus EPS estimates three times over the last four quarters [2] - Ares Management's revenues for the quarter ended March 2025 were $897.58 million, missing the Zacks Consensus Estimate by 1.76%, compared to $736.42 million in the same quarter last year [2] - The company has topped consensus revenue estimates only once in the last four quarters [2] Group 2: Stock Performance and Outlook - Ares Management shares have declined approximately 11.3% since the beginning of the year, while the S&P 500 has decreased by 3.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.19 on revenues of $1.15 billion, and for the current fiscal year, it is $4.93 on revenues of $4.79 billion [7] Group 3: Industry Context - The Financial - Investment Management industry, to which Ares Management belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ares Management's stock performance [5]

Financial Performance - Ares Management Corporation's GAAP net income attributable was $472 million for Q1 2025[1] - After-tax realized income was $381431 million, with after-tax realized income per share of Class A common stock at $109 for Q1 2025[2] - Fee related earnings reached $3673 million for the same period[2] - The company declared a quarterly dividend of $112 per share of Class A and non-voting common stock[4] - A quarterly dividend of $084375 per share was declared for the 675% Series B mandatory convertible preferred stock[5] Assets Under Management (AUM) - Total assets under management reached approximately $5459 billion as of March 31, 2025, a 27% increase year-over-year[9, 32] - Total fee paying AUM was $3351 billion[23] - The company has a record amount of assets under management not yet paying fees of nearly $100 billion[3] - Available capital stood at $1420 billion[23] Capital Activity - The company raised $202 billion in Q1 2025, with net inflows of capital of $196 billion[23] - Capital deployment reached $314 billion, including $167 billion by drawdown funds[23] Strategic Developments - Ares completed the acquisition of GCP International, increasing AUM by $453 billion[23]

Financial Performance - GAAP net income attributable to Ares Management Corporation was $47.2 million for Q1 2025, compared to $73.0 million in Q1 2024, reflecting a decrease of 35.2%[13] - Management fees increased to $817.0 million, up 18.8% from $687.7 million in the same quarter last year[15] - Fee Related Earnings rose to $367.3 million, a 22% increase compared to $301.7 million in Q1 2024[17] - Realized Income for the quarter was $405.9 million, representing a 40.4% increase from $289.2 million in Q1 2024[17] - After-tax Realized Income per share of Class A common stock was $1.09, a 36.3% increase from $0.80 in Q1 2024[17] - After-tax realized income for Q1 2025 was $381.4 million, up 43.9% from $265.1 million in Q1 2024[99] - After-tax realized income per share increased to $1.13 in Q1 2025, compared to $0.83 in Q1 2024, reflecting a 36.1% growth[99] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $545.9 billion, with Fee Paying AUM (FPAUM) at $335.1 billion, indicating strong capital management[13] - As of March 31, 2025, Assets Under Management (AUM) reached $545.9 billion, a 27% increase from the prior year[22] - Funded Private Assets Under Management (FPAUM) was $335.1 billion, reflecting a 25% year-over-year growth[22] - Perpetual Capital increased to $154.8 billion, marking a 42% rise compared to the previous year[27] - Available Capital as of March 31, 2025, was $142.0 billion, up 24% from the prior year[35] - AUM Not Yet Paying Fees was $99.2 billion, an increase of 28% year-over-year[35] - The increase of $117.6 billion in AUM was primarily driven by commitments to SDL III, Ares Capital Europe VI, and the GCP Acquisition[24] Capital Raising and Deployment - The company raised $20.2 billion in capital, with net inflows of $19.6 billion during the quarter[13] - The company raised $10.7 billion in gross new capital commitments during Q1 2025[20] - Total Gross Capital Deployment during Q1-25 was $31.4 billion, compared to $18.6 billion during Q1-24, marking a 69% increase[52] - Gross Capital Deployment in drawdown funds was $16.7 billion in Q1-25, up from $9.4 billion in Q1-24[57] Management Fees and Performance - The effective management fee rate was 1.01%, slightly down from 1.02% in Q1 2024[17] - Management fees from perpetual capital or long-dated funds accounted for 92% of total management fees[33] - The potential incremental annual management fees from AUM Not Yet Paying Fees available for future deployment could reach approximately $764.4 million[42] - Management and other fees increased by 14% for Q1-25 compared to Q1-24, totaling $595,994 thousand[63] - Fee related performance revenues surged to $18,395 thousand in Q1-25, compared to $755 thousand in Q1-24, indicating a significant increase[63] Investment Performance - The Credit Group reported net returns of 1.9% for the alternative credit strategy in Q1-25 and 8.9% for the last twelve months (LTM)[156] - The U.S. senior direct lending strategy achieved net returns of 2.4% for Q1-25, with gross and net returns of 2.3% and 1.8% respectively for Q4-25[156] - The European direct lending strategy recorded net returns of 17% for Q1-25 and 8.5% for Q1-25 LTM, with U.S. dollar denominated feeder funds showing returns of 37% and 2.8% for Q1-25[156] - The APAC credit strategy net returns were 3.0% for Q1-25 and an impressive 77.4% for Q1-25 LTM[156] - The Americas real estate equity strategy net returns were 13% for Q1-25[161] - The European real estate equity strategy reported net returns of (0.2)% for Q1-25 and 0.1% for Q1-25 LTM[161] Corporate and Financial Strength - The company maintained a BBB+/A- rating from S&P and Fitch, indicating strong financial strength[108] - The corporate investment portfolio was valued at $1,335.0 million as of March 31, 2025, compared to $1,004.8 million on an unconsolidated basis[108] - Interest income for Q1 2025 was $22.3 million, significantly higher than the previous year's $8.3 million[96] Dividends - Declared a quarterly dividend of $1.12 per share of Class A common stock, payable on June 30, 2025[13] - The company expects to pay dividends aligned with expected annual fee-related earnings after current taxes are allocated[1]

Core Insights - Ares Management (ARES) is expected to report quarterly earnings of $0.94 per share, reflecting a 17.5% increase year over year, with revenues projected at $913.68 million, a 24.1% year-over-year increase [1] - Over the past month, the consensus EPS estimate has been revised downward by 4.3%, indicating a reassessment by analysts [1][2] Financial Performance Estimates - Analysts forecast 'Financial Details Segments- Other fees' to reach $26.37 million, a 32.7% increase year over year [4] - The estimate for 'Financial Details Segments- Fee related performance revenues' is $12.38 million, indicating a significant increase of 233% from the prior-year quarter [4] - 'Financial Details Segments- Management fees' is projected to be $817.56 million, reflecting a 17.9% increase from the previous year [5] - 'Financial Details Segments- Performance income-realized' is expected to reach $70.69 million, a 204.9% increase year over year [5] Assets Under Management (AUM) Estimates - The consensus estimate for 'FPAUM Rollforward - Ending Balance - Total' is $327.60 billion, up from $267.12 billion in the same quarter last year [6] - 'FPAUM Rollforward - Ending Balance - Credit Group' is expected to be $217.62 billion, compared to $189.83 billion a year ago [6] - 'FPAUM Rollforward - Ending Balance - Private Equity Group' is projected at $13.08 billion, up from $12.57 billion year over year [7] - 'FPAUM Rollforward - Ending Balance - Real Assets Group' is expected to reach $66.98 billion, compared to $40.84 billion in the same quarter last year [7] - 'FPAUM Rollforward - Ending Balance - Secondaries Group' is estimated at $23.20 billion, up from $19.89 billion year over year [8] - The total 'AUM Rollforward - Ending Balance' is expected to be $536.48 billion, compared to $428.34 billion a year ago [8] Recent Stock Performance - Shares of Ares Management have shown a return of +2.2% over the past month, contrasting with the S&P 500 composite's -0.2% change [9] - Ares Management holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [10]

Core Insights - Ares Management is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with earnings projected at $0.94 per share (+17.5%) and revenues at $913.68 million (+24.1%) [3][4] - The actual results will significantly influence the stock price, depending on whether they meet or exceed expectations [2][4] - The consensus EPS estimate has been revised down by 4.34% over the last 30 days, indicating a bearish sentiment among analysts [4][10] Earnings Expectations - The earnings report is scheduled for May 5, 2025, and could lead to stock price movement based on the comparison of actual results to expectations [2] - Ares Management currently has an Earnings ESP of -0.61%, suggesting analysts have lowered their earnings outlook [11] - The company holds a Zacks Rank of 4 (Sell), complicating predictions of an earnings beat [11][16] Historical Performance - In the last reported quarter, Ares Management had an expected EPS of $1.29 but delivered only $1.23, resulting in a surprise of -4.65% [12] - Over the past four quarters, Ares Management has beaten consensus EPS estimates twice [13] Industry Context - Another player in the investment management sector, Patria Investments, is also expected to report earnings of $0.25 per share (+19.1%) with revenues of $81.42 million (+34.4%) [17] - Patria Investments has an Earnings ESP of -8.00% and a Zacks Rank of 4 (Sell), indicating a challenging outlook for beating consensus estimates [18]

Core Insights - Ares Private Equity fund has acquired a majority stake in Epika Fleet Services, providing significant capital for growth and expansion [1][3] - Epika has established itself as a leading mobile-focused provider of preventative maintenance and repair services for commercial trucking fleets, operating in nearly 40 states and serving over 2,000 fleet customers [2][4] - The company employs over 550 skilled technicians and operates approximately 20 in-shop centers, offering a hybrid service model for complex repairs [2][4] Company Overview - Epika Fleet Services, founded in 2016, has rapidly scaled its operations and built a strong local presence in key U.S. regions [2] - The company focuses on minimizing downtime and improving asset performance for mission-critical fleets through a comprehensive suite of mobile-first maintenance and repair services [4] - Epika's growth has been driven by its mobile-delivery service offerings, which cater to the increasing demand for mobile-service solutions among fleet operators [3] Investment and Growth Strategy - The partnership with Ares is expected to amplify Epika's growth, strengthen its national footprint, and deepen customer loyalty [3] - Ares recognizes the significant opportunities in the mobile-first service sector, aiming to support Epika in capturing demand and enhancing fleet productivity [3] - The transaction underscores the potential for continued growth and innovation in Epika's service offerings [3]

Core Insights - Ares Management Corporation is a private markets investment manager focused on private credit and real assets, founded in 1997 and publicly listed [1] Group 1: Company Overview - Ares Management Corporation specializes in identifying high-quality companies and applying a disciplined valuation approach to uncover underappreciated investment opportunities [1] - The firm aims to invest in cash-rich companies with strong balance sheets and shareholder-friendly policies [1] - Ares employs a long-only investment strategy with a long-term focus [1]

Core Insights - Omni Bridgeway and Ares Management have completed a strategic transaction to establish Omni Bridgeway Fund 9, which includes a diversified global portfolio of over 150 legal assets [1][2] - Ares acquired a 70% interest in Omni Bridgeway Fund 9 for approximately A$320 million, resulting in a day-1 cash multiple on invested capital exceeding 3x for Omni Bridgeway [2] - The transaction is significant as it represents the first continuation fund in the legal finance industry and one of the largest secondary market transactions in scope and size [2][6] Company Insights - Omni Bridgeway is a global alternative asset manager specializing in legal assets, with approximately A$3.5 billion in cumulative capital raised across 11 funds and a track record of over 35 years [7] - The company has a team of 175 professionals operating from over 20 locations in 15 countries, making it the largest and most diversified fund platform for managing legal assets [7] - The transaction has allowed Omni Bridgeway to fully deleverage its balance sheet while providing significant added working capital, enhancing liquidity for reinvestment in new funds [3][6] Industry Insights - The transaction highlights the increasing interest of institutional investors in legal assets due to their attractive, asymmetrical, and uncorrelated return profile, especially in a volatile capital markets environment [4] - Ares Management's selection of Omni Bridgeway reflects the global scale, diversification, and long-term track record of Omni Bridgeway's portfolio, showcasing the value of its institutional-grade asset management platform [5] - The deal demonstrates that deep pools of institutional secondary capital are available to increase liquidity and mitigate duration risk for well-managed portfolios of legal assets [6]

Core Insights - Aspida Life Re Ltd. has appointed Elinor Friedman to its Board of Directors, enhancing the board's expertise in product development and pricing within the reinsurance sector [1][3] Company Overview - Aspida Life Re Ltd. is a Bermuda-based reinsurance platform focused on providing life and annuity reinsurance solutions globally, aiming to be a trusted partner in clients' long-term financial growth [5] - As of December 31, 2024, Aspida Re has over $21 billion in total assets [5] Leadership and Expertise - Elinor Friedman brings extensive experience in the life insurance and reinsurance industry, having served as Managing Director at Willis Towers Watson from 2013 to 2024, where she provided consulting services to insurers and reinsurers [2][3] - Friedman's background includes roles as Life Division Leader and Sales and Practice Leader for the Americas at Willis Towers Watson, as well as positions at General American Life Insurance Company and RGA/Swiss Financial Group [3][4] Strategic Vision - Friedman expressed enthusiasm about joining Aspida Re's board, emphasizing her commitment to supporting the company's mission of delivering innovative and secure reinsurance solutions [4] - The company aims to leverage Friedman's expertise in actuarial science and insurance consulting to refine reinsurance structures and strengthen partnerships for long-term financial security [4]