Financial Data and Key Metrics Changes - The company ended the year with over $300 billion in Assets Under Management (AUM), a 55% increase from nearly $200 billion at the end of 2020 [10] - The company generated record results across nearly every key financial metric, with a nearly 50% year-over-year increase in fee-paying AUM and a 65% increase in full-year fee-related earnings [12][34] - The quarterly dividend was increased by 30% to $0.61 per share, reflecting strong growth prospects [6][36] Business Line Data and Key Metrics Changes - The company raised a record $77 billion in gross fundraising for the year, including $25 billion in the fourth quarter alone [10][18] - Fee-related performance revenues (FRPR) for the full year totaled $137.9 million, significantly up from $23 million in 2020, driven by strong performance in U.S. and European direct lending [32] - The company invested over $80 billion across more than 25 different strategies globally, with significant deployment in health care, software, technology, and renewable energy [24][25] Market Data and Key Metrics Changes - Fundraising from retail channels increased over 150% year-over-year to $14.5 billion, while fundraising from insurance clients increased over 100% to $11.7 billion [19] - The company’s retail and high net worth channel AUM stood at more than $50 billion at year-end [19] - The company’s available capital reached a record high of $90.4 billion, an increase of over 61% year-over-year [38] Company Strategy and Development Direction - The company is focused on expanding its global platform and gaining market share through scale, product, and geographic expansion [9] - The company plans to reorient its reporting segments to better align with its platform expansion, combining real estate with the newly expanded Infrastructure Debt and Equity platform [41] - The company aims to reach over $500 billion in AUM by 2025, with a target of 20% or more compound annual growth in fee-related earnings and dividends per share through 2025 [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to navigate market volatility and capitalize on growth opportunities, particularly in alternative investments [13][14] - The company is well-positioned to take advantage of market opportunities with significant available capital and AUM not yet earning fees [38] - Management highlighted the importance of ESG and DEI initiatives as part of the company’s growth strategy [44] Other Important Information - The company’s FRE margins approached 40% in the fourth quarter, an improvement of over 250 basis points year-on-year [12] - The company’s flagship U.S. direct lending fund generated strong net returns of 4.6% in the fourth quarter and 22% for the year [27] - The company’s secondary strategy generated gross returns of 18.7% for the quarter and 49.7% over the trailing 12 months [26] Q&A Session Summary Question: Comments on Black Creek's fundraising and distribution platforms - Management noted the importance of leveraging existing client service organizations to expand distribution and fundraising opportunities [46][47] Question: Launching a private BDC to supplement the public BDC - Management acknowledged the interest in non-traded BDC products and the potential for growth in that area [50][51] Question: Deployment dynamics and market activity - Management indicated that while deployment was strong in 2021, the market environment in early 2022 was more uncertain, with seasonal trends affecting activity [52][54] Question: Non-sponsored lending growth and ambitions - Management highlighted a significant non-sponsored business focused on direct corporate lending, which is expected to grow [56][64] Question: Tax rate outlook for 2022 and 2023 - Management was asked to clarify expectations regarding the tax rate moving forward [73]

Ares Management Corporation (NYSE:ARES) Q3 2021 Earnings Conference Call October 27, 2021 12:00 PM ET Company Participants Carl Drake - Head, Public Company, IR Michael Arougheti - CEO Jarrod Phillips - CFO Kipp deVeer - Head, Ares Credit Group Conference Call Participants Alex Blostein - Goldman Sachs Gerry O'Hara - Jefferies Robert Lee - KBW Michael Cyprys - Morgan Stanley Kenneth Lee - RBC Adam Beatty - UBS Chris Kotowski - Oppenheimer Operator Welcome to Ares Management Corporation's Third Quarter Earni ...

Ares Management Corporation (NYSE:ARES) Q2 2021 Earnings Conference Call July 29, 2021 12:00 PM ET Company Participants Carl Drake – Head-Public Company Investor Relations Michael Arougheti – Chief Operating Officer and Chief Financial Officer Mike McFerran – Chief Operating Officer and Chief Financial Officer Conference Call Participants Robert Lee – KBW Alex Blostein – Goldman Sachs Gerry O'Hara – Jefferies Kenneth Lee – RBC Capital Markets Michael Cyprys – Morgan Stanley Operator Welcome to Ares Managem ...

PART I—FINANCIAL INFORMATION [Financial Information - Unaudited](index=8&type=section&id=Item%201.%20Financial%20Information%20-%20Unaudited) The company's Q1 2021 financials show a significant turnaround with $658.4 million in revenue and $58.4 million in net income, driven by strong carried interest and asset growth Condensed Consolidated Statements of Operations (Q1 2021 vs Q1 2020) | Metric | Three months ended March 31, 2021 (in thousands) | Three months ended March 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Revenues** | **$658,388** | **$13,409** | | Management fees | $320,273 | $263,849 | | Carried interest allocation | $297,535 | ($230,876) | | **Total Expenses** | **$525,109** | **$81,959** | | Compensation and benefits | $231,850 | $180,084 | | Performance related compensation | $221,432 | ($167,899) | | **Income (loss) before taxes** | **$190,064** | **($296,413)** | | **Net income (loss)** | **$164,310** | **($275,797)** | | Net income (loss) attributable to Ares Management Corporation | $58,378 | ($31,036) | | **Basic EPS (Class A)** | **$0.33** | **($0.33)** | | **Diluted EPS (Class A)** | **$0.32** | **($0.33)** | Condensed Consolidated Statements of Financial Condition | Metric | As of March 31, 2021 (in thousands) | As of December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$16,535,929** | **$15,168,992** | | Cash and cash equivalents | $609,872 | $539,812 | | Investments | $1,931,978 | $1,682,759 | | Assets of Consolidated Funds | $12,514,530 | $11,552,171 | | **Total Liabilities** | **$13,084,629** | **$12,596,852** | | Debt obligations | $811,279 | $642,998 | | Liabilities of Consolidated Funds | $10,830,988 | $10,641,755 | | **Total Equity** | **$2,420,568** | **$2,471,774** | - In February 2021, the company's first sponsored SPAC, Ares Acquisition Corporation (AAC), completed its IPO, raising **$1.0 billion** and is consolidated in the financial statements[36](index=36&type=chunk) - The company completed its acquisition of a majority interest in SSG Capital Holdings Limited on July 1, 2020, which now operates as **Ares SSG**[39](index=39&type=chunk) [Management's Discussion And Analysis Of Financial Condition And Results Of Operations](index=51&type=section&id=Item%202.%20Management's%20Discussion%20And%20Analysis%20Of%20Financial%20Condition%20And%20Results%20Of%20Operations) Management attributes strong Q1 2021 performance to favorable markets, driving AUM to $207.2 billion and a 38% YoY increase in Fee Related Earnings to $128.5 million - Market performance in Q1 2021 was strong, driven by vaccine rollouts and accommodative monetary/fiscal support, with U.S. leveraged loans returning **2.0%** and high yield bonds returning **0.9%**[216](index=216&type=chunk)[218](index=218&type=chunk) - In March 2021, Ares agreed to acquire Landmark Partners and in April 2021 raised approximately **$828.2 million** through a private placement and public offering of Class A common stock[221](index=221&type=chunk) AUM and FPAUM Rollforward (in millions) | Metric | Balance at 12/31/2020 | Net New Commitments/Subscriptions | Distributions/Redemptions | Change in Fund Value/Fee Basis | Balance at 3/31/2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **AUM** | **$196,980** | $10,351 | ($2,991) | $2,818 | **$207,158** | | **FPAUM** | **$126,037** | $7,935 | ($3,811) | ($2,573) | **$127,588** | - As of March 31, 2021, AUM not yet paying fees was **$40.2 billion**, which could generate approximately **$423.1 million** in potential incremental annual management fees[241](index=241&type=chunk) Segment Fee Related Earnings (FRE) and Realized Income (RI) (Q1 2021 vs Q1 2020) | ($ in thousands) | FRE Q1 2021 | FRE Q1 2020 | RI Q1 2021 | RI Q1 2020 | | :--- | :--- | :--- | :--- | :--- | | Credit Group | $147,672 | $114,257 | $150,749 | $117,391 | | Private Equity Group | $23,886 | $27,038 | $29,689 | $60,907 | | Real Estate Group | $11,044 | $9,540 | $12,495 | $20,085 | | Strategic Initiatives | $8,927 | — | $6,658 | — | | Operations Management Group | ($63,063) | ($57,731) | ($62,798) | ($64,238) | | **Total** | **$128,466** | **$93,104** | **$136,793** | **$134,145** | [Quantitative and Qualitative Disclosures about Market Risk](index=88&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure stems from its advisory role where fees are sensitive to fund investment values, alongside credit and interest rate risks - The company's primary exposure to market risk is related to its role as general partner or investment adviser, with sensitivity to movements in the **fair value of fund investments**[402](index=402&type=chunk) - Credit risk exists with counterparties and is minimized by dealing with reputable financial institutions and employing a **rigorous, credit-oriented investment approach**[404](index=404&type=chunk)[406](index=406&type=chunk) - There have been **no material changes** in the company's market risks for the three months ended March 31, 2021[406](index=406&type=chunk) [Controls And Procedures](index=89&type=section&id=Item%204.%20Controls%20And%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that as of March 31, 2021, the company's disclosure controls and procedures were **effective at the reasonable assurance level**[407](index=407&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended March 31, 2021, that have materially affected, or are reasonably likely to materially affect, these controls[408](index=408&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=90&type=section&id=Item%201.%20Legal%20Proceedings) The company reports it is not subject to any material pending legal proceedings as of March 31, 2021 - As of March 31, 2021, the company was **not subject to any material pending legal proceedings**[410](index=410&type=chunk) [Risk Factors](index=90&type=section&id=Item%201A.%20Risk%20Factors) The primary risk factor is the ongoing COVID-19 pandemic, which could negatively impact portfolio companies in challenged sectors, fundraising, and operations - The **COVID-19 pandemic** has caused severe disruptions in the U.S. and global economies and could continue to negatively impact the company, its funds, and their portfolio companies[413](index=413&type=chunk) - The pandemic has had a particularly severe impact on industries such as energy, hospitality, travel, and retail, where some of the company's funds have investments[414](index=414&type=chunk)[422](index=422&type=chunk) - As of March 31, 2021, approximately **2% of total AUM** was invested in the energy sector and approximately **2%** in the retail sector, which were challenged by the pandemic[422](index=422&type=chunk)[423](index=423&type=chunk) - An extended period of remote working could strain technology resources and introduce operational risks, including **heightened cybersecurity risks**[427](index=427&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=93&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities and no shares were repurchased under its $150 million program during the quarter Issuer Purchases of Equity Securities | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs | | :--- | :--- | :--- | :--- | :--- | | Jan 2021 | — | $— | — | $150,000,000 | | Feb 2021 | — | $— | — | $150,000,000 | | Mar 2021 | — | $— | — | $150,000,000 | | **Total** | **—** | **$—** | **—** | **$150,000,000** | [Defaults Upon Senior Securities](index=93&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - **None reported**[435](index=435&type=chunk) [Mine Safety Disclosure](index=93&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to the company - **Not applicable**[435](index=435&type=chunk) [Other Information](index=93&type=section&id=Item%205.%20Other%20Information) The company discloses that an affiliated portfolio company terminated pre-existing contracts with two OFAC-designated entities that generated de minimis revenue - An affiliated portfolio company, Daisy Group Limited, had customer contracts with OFAC-designated Melli Bank Plc and Persia International Bank Plc that pre-dated Ares' investment, generated minimal revenue (£74,774), and **have been terminated**[433](index=433&type=chunk)[434](index=434&type=chunk) [Exhibits](index=94&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including amended corporate governance documents and required CEO and CFO certifications - The report includes several key exhibits, such as the Second Amended and Restated Certificate of Incorporation, the Fourth Amended and Restated Limited Partnership Agreement of Ares Holdings L.P., and **certifications from the CEO and CFO**[437](index=437&type=chunk)