Core Insights - Investors in the Financial - Investment Management sector should consider Patria Investments (PAX) and Ares Management (ARES) for potential undervalued stock opportunities [1] - PAX has a Zacks Rank of 2 (Buy) indicating a positive earnings outlook, while ARES has a Zacks Rank of 3 (Hold) suggesting a more cautious stance [1][3] Valuation Metrics - PAX has a forward P/E ratio of 7.83, significantly lower than ARES's forward P/E of 29.52, indicating that PAX may be undervalued [2] - The PEG ratio for PAX is 0.66, while ARES has a PEG ratio of 1, suggesting PAX has better expected earnings growth relative to its price [2] - PAX's P/B ratio is 1.35 compared to ARES's P/B of 9.07, further highlighting PAX's more attractive valuation [2] Value Grades - PAX has a Value grade of A, while ARES has a Value grade of F, indicating that PAX is viewed as a superior investment option based on valuation metrics [3]

Financial Data and Key Metrics Changes - The company reported a 19% year-over-year growth in Assets Under Management (AUM), reaching $428 billion, which is ahead of the 2025 goal of $500 billion [7][29] - Fee-related earnings increased by 18% year-over-year to $302 million, with management fees totaling over $693 million, a 15% increase compared to the same period last year [26][27] - Realized income for the first quarter was $289 million, a 14% increase from the previous year, with net performance income of $10 million, up from $7 million a year ago [28][29] Business Line Data and Key Metrics Changes - The company raised over $17 billion in gross capital during the first quarter, with significant deployment in private credit strategies [7][26] - In the private credit segment, AUM increased to over $280 billion, with strong performance across direct lending and alternative credit strategies [10][30] - The wealth management channel saw equity inflows of $2 billion, more than 50% higher than the previous quarter, with significant contributions from international markets [16][17] Market Data and Key Metrics Changes - Deployment activity in U.S. and European Direct Lending exceeded $11 billion, more than double the deployment from the same period last year [22] - The company noted a significant increase in upsizing opportunities with existing borrowers, indicating a healthy credit environment [9] - The transaction activity in the market is currently skewed towards refinancing rather than new M&A, but there are expectations for a pickup in activity as market conditions stabilize [21][42] Company Strategy and Development Direction - The company is focused on expanding its presence in private credit, infrastructure, and insurance, with a strong belief in the growth potential of these sectors [10][12][33] - Ares Management is pursuing an asset-light business model, which allows for consistent earnings growth while minimizing exposure to market volatility [19][34] - The company plans to launch over 35 different funds across various investment strategies in 2024, indicating a robust pipeline for future growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the economy despite higher interest rates, with portfolio companies generating strong cash flow and earnings growth [9] - The company anticipates a significant increase in M&A activity as stabilized rates and demand from limited partners for capital returns create favorable conditions [41][76] - Management highlighted the importance of maintaining a diversified fund structure to capture growth across different market cycles [39][52] Other Important Information - The company declared a second-quarter common dividend of $0.93 per share, representing a 21% increase over the same quarter last year [5] - Ares Management's Aspida insurance platform continues to grow, with AUM reaching $14 billion, supported by strong fundraising momentum [18][46] Q&A Session Summary Question: Current deployment backdrop in direct lending - Management noted high gross deployment and market share gains, with transaction activity skewed towards refinancing rather than new issues [36][38] Question: Outlook for private equity sponsors and independent private companies - Management expects a pickup in M&A activity as stabilized rates should spur transactions, with a growing shadow pipeline [40][42] Question: Opportunities in the third-party insurance space - The affiliated insurance platform, Aspida, is on track to meet growth objectives, with AUM increasing and strong fundraising momentum [43][46] Question: Management fee growth outside credit - Management indicated that all business segments are experiencing growth, with real estate and infrastructure expected to drive significant management fee increases [49][51] Question: Trends in opportunistic credit - Management sees significant opportunities in opportunistic credit due to high-quality assets needing liquidity solutions in a higher interest rate environment [54][56] Question: Infrastructure and real estate debt opportunities - The company is well-positioned to capitalize on the significant capital needs in digital infrastructure and energy transition, with a focus on enhancing origination capabilities [78][80]

Ares Management (ARES) reported $736.42 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.5%. EPS of $0.80 for the same period compares to $0.71 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $814.88 million, representing a surprise of -9.63%. The company delivered an EPS surprise of -13.98%, with the consensus EPS estimate being $0.93.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

| --- | --- | --- | --- | |------------------------------------------|-------|-------|-------| | | | | | | | | | | | ØARES | | | | | | | | | | Earnings Presentation First Quarter 2024 | | | | Important Notice This presentation is prepared for Ares Management Corporation ('Ares'') (NYSE: ARES) for the benefit of its public stockholders. This presenta purposes in connection with evaluating the business, operations and financial results of Ares and certain of its affiliates. Any discussio provided solely to de ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Ares Management (ARES) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 2, 2024, might help the stock move higher if these key numbers are better than expe ...

Core Insights - AmWest Funding Corporation and Ares Management Corporation have finalized a joint venture to invest in Non-QM loans, leveraging AmWest's strong position as a mortgage originator and servicer with over $15 billion in Non-QM mortgage originations since inception [1][2] - Ares will provide 90% of the joint venture's capital, while AmWest will contribute the remaining 10%, aiming to capitalize on the current market environment and enhance their operational capabilities [1][3] - The joint venture plans to securitize mortgage loans using the HOMES and PRKCM shelves, building on AmWest's successful track record of securitizing $3.1 billion in unpaid principal balance over the last three years [1][2] Company Overview - Ares Management Corporation is a leading global alternative investment manager with approximately $419 billion in assets under management as of December 31, 2023, focusing on various asset classes including credit, private equity, real estate, and infrastructure [4] - AmWest Funding Corporation, founded in 1995, specializes in originating various types of residential mortgage loans, including FHA, VA, USDA, and Non-QM loans, with a management team averaging two decades of experience [5][6] - Park Capital Management, an affiliate of AmWest, invests in residential mortgage loans and has expertise in capital markets execution, supporting the joint venture's objectives [7]

Core Insights - The focus is on selecting high-growth dividend stocks that have rapidly increased their dividends in the recent past and are expected to continue growing their earnings at a fast pace [2][22] - Two categories of dividend stocks are identified: High Growth Low Yield (HGLY) and Low Growth High Yield (LGHY), catering to different investor needs [3][4] - A structured portfolio approach is recommended, allowing for a maximum of 20 stocks, with periodic monitoring and adjustments based on performance [6][12] Stock Selection Criteria - Stocks must have a market cap greater than $10 billion, a dividend yield above 1%, and a daily average volume exceeding 100,000 [7] - Additional criteria include a minimum of five years of positive dividend growth and a Dividend Safety Quality Score based on various financial metrics [7][8] - A focus on earnings growth is emphasized, with a modified Quality Score that incorporates EPS ratings and expected changes [8][12] Portfolio Construction - The portfolio should be diversified across sectors, with a maximum of 20 positions, and new stocks should be added based on monthly reports [6][15] - The final selection of stocks aims for diversity across industry segments while considering quality scores and relative strength ratings [15][22] - The top 10 high-growth dividend stocks for the current month are presented, with a note on the potential for repeat selections from previous months [15][22] Performance Analysis - Historical performance comparisons are made between the selected stocks and benchmark indices like the Vanguard Dividend Appreciation Index Fund ETF and the S&P 500 [16][19] - The performance of the model portfolio is tracked monthly, allowing for assessment of the investment strategy over time [19][22]

Investors interested in Financial - Investment Management stocks are likely familiar with Victory Capital Holdings (VCTR) and Ares Management (ARES) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores high ...

TORRANCE, Calif.--(BUSINESS WIRE)--Valta Energy and Black Bear Energy are proud to announce the completion of a 1.7 MW rooftop solar array on a warehouse property located in Torrance, CA and owned by Ares Management (“Ares”) Real Estate funds. The newly constructed, fully leased, best-in-class facility is located in the dynamic South Bay industrial market. The project, which is part of the Los Angeles Department of Water and Power (LADWP) Feed-in Tariff (FiT) program, will provide renewable electricity to t ...

Ares Joins Existing Investor GI Data Infrastructure to Help Accelerate Bluepeak's Fiber-to-the-Home Expansion DENVER, Feb. 29, 2024 /PRNewswire/ -- Bluepeak (the "Company"), a leading provider of fiber broadband to residential and commercial customers in communities across the Great Plains region, today announced that funds managed by Ares Management's Infrastructure Opportunities and Alternative Credit strategies ("Ares") have made a strategic investment into Bluepeak. Since its 2021 acquisition by GI Data ...