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)

Ares Management Corporation (NYSE:ARES) Q1 2021 Earnings Conference Call April 29, 2021 12:00 PM ET Company Participants Carl Drake - Head, Public Company Investor Relations Michael Arougheti - Chief Executive Officer Michael McFerran - Chief Operating Officer & Chief Financial Officer Kipp DeVeer - Head, Credit Group Matt Cwiertnia - Co-Head, Private Equity Group Bennett Rosenthal - Co-Chairman, Private Equity Group Conference Call Participants Robert Lee - KBW Gerry O'Hara - Jefferies. Craig Siegenthale ...

PART I [Business](index=8&type=section&id=Item%201.%20Business) Ares Management is a global alternative investment manager operating across Credit, Private Equity, Real Estate, and Strategic Initiatives - As of December 31, 2020, Ares is a leading global alternative investment manager with **$197.0 billion of AUM** and over 1,450 employees across more than 25 offices[19](index=19&type=chunk) - The company's investor base includes over 1,090 direct institutional relationships, with **73% of AUM ($143.1 billion)** attributable to this channel[91](index=91&type=chunk) - Separately Managed Accounts (SMAs) represent **$45.0 billion, or 31%**, of the direct institutional AUM[94](index=94&type=chunk) - The company is subject to extensive regulation by governmental agencies in the U.S. and foreign jurisdictions, including the **SEC, FINRA, the UK's FCA, and Luxembourg's CSSF**[125](index=125&type=chunk)[128](index=128&type=chunk)[136](index=136&type=chunk) AUM Growth (2010-2020) | Metric | Value | | :--- | :--- | | AUM as of Dec 31, 2020 | $197.0 billion | | AUM a decade earlier | $42.0 billion | | 5-Year CAGR | 16% | | 10-Year CAGR | 17% | 2020 Fundraising and Deployment | Metric | Value (2020) | | :--- | :--- | | Gross New Capital Raised | $41.2 billion | | Capital Deployed (excluding permanent capital) | $26.7 billion | AUM by Investment Group (as of Dec 31, 2020) | Investment Group | AUM (billions) | | :--- | :--- | | Credit Group | $145.5 | | Private Equity Group | $27.4 | | Real Estate Group | $14.8 | | Strategic Initiatives | $9.3 | [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, market conditions, regulations, and reliance on key personnel - The **COVID-19 pandemic** poses significant risks, having caused severe disruptions in the global economy, affecting industries where Ares and its funds operate[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - Difficult market and political conditions, including interest rate changes and geopolitical events, can **reduce the value of investments** and hamper fund performance[172](index=172&type=chunk)[173](index=173&type=chunk) - The business is dependent on the ability to **raise capital** from investors; poor fund performance or economic deterioration could materially reduce revenues[184](index=184&type=chunk)[185](index=185&type=chunk) - The departure of **key personnel** could result in the loss of investment opportunities and trigger "key person" provisions in fund agreements[186](index=186&type=chunk)[188](index=188&type=chunk) - A significant portion of management fees are derived from **Ares Capital Corporation (ARCC)**, and a decline in its assets could adversely affect revenues[203](index=203&type=chunk)[204](index=204&type=chunk)[206](index=206&type=chunk) - **Cybersecurity incidents** and data breaches pose a significant threat, potentially causing operational disruptions and reputational damage[487](index=487&type=chunk)[491](index=491&type=chunk)[494](index=494&type=chunk) - The company may be obligated to repay previously distributed carried interest under **"clawback" provisions**, with a potential contingent repayment of approximately **$326.4 million** as of December 31, 2020[383](index=383&type=chunk)[384](index=384&type=chunk) [Unresolved Staff Comments](index=87&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are **no unresolved staff comments** as of the filing date[502](index=502&type=chunk) [Properties](index=88&type=section&id=Item%202.%20Properties) The company's principal executive offices and all other global offices are located in leased spaces - The company's principal executive offices are in leased space at 2000 Avenue of the Stars, 12th Floor, Los Angeles, California[503](index=503&type=chunk) [Legal Proceedings](index=88&type=section&id=Item%203.%20Legal%20Proceedings) As of December 31, 2020, the company was not subject to any material pending legal proceedings - The company reports **no material pending legal proceedings** as of December 31, 2020[504](index=504&type=chunk) [Mine Safety Disclosures](index=88&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's business operations - Mine safety disclosures are **not applicable** to the company's business[505](index=505&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=88&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details market information, dividend policies, and stock repurchase programs for the company's equity securities - The company's Class A common stock trades on the New York Stock Exchange under the symbol **"ARES"**[506](index=506&type=chunk) - A stock repurchase program authorizing up to **$150 million** of Class A common stock was renewed in February 2021, with no shares repurchased in Q4 2020[510](index=510&type=chunk) - Dividends on the 7.00% Series A Preferred Stock are paid quarterly, totaling approximately **$21.7 million** in both 2020 and 2019[511](index=511&type=chunk) Dividend per Class A Common Share | Year | Annual Dividend per Share | | :--- | :--- | | 2019 | $1.28 | | 2020 | $1.60 | | 2021 (Intended) | $1.88 ($0.47/quarter) | [Selected Financial Data](index=91&type=section&id=Item%206.%20Selected%20Financial%20Data) The company has omitted the tabular disclosure for Selected Financial Data as permitted by recent SEC rule changes - The company has opted not to present the Selected Financial Data table and directs readers to its consolidated financial statements[523](index=523&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=92&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results for 2020, highlighting strong fundraising and performance amid market volatility from COVID-19 - Key business trends in 2020 were dominated by the **COVID-19 pandemic**, which caused significant market volatility, followed by a rebound in the second half of the year[528](index=528&type=chunk) - As of December 31, 2020, the company had **$40.0 billion of AUM not yet paying fees**, representing approximately **$428.3 million** in potential annual management fee revenue[532](index=532&type=chunk) - The company's primary sources of liquidity are cash on hand (**$539.8 million** as of Dec 31, 2020), cash from operations, and an undrawn revolving credit facility[721](index=721&type=chunk) AUM and FPAUM Growth (2019-2020) | Metric | Dec 31, 2019 | Dec 31, 2020 | Growth | | :--- | :--- | :--- | :--- | | Total AUM | $148.9 B | $197.0 B | 32% | | Fee Paying AUM (FPAUM) | $96.9 B | $126.0 B | 30% | Consolidated Results of Operations (2020 vs. 2019) | Metric ($ in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Total Revenues | $1,764,046 | $1,765,438 | | Total Expenses | $1,450,486 | $1,462,797 | | Income Before Taxes | $379,478 | $425,180 | | Net Income Attributable to AMC | $152,142 | $148,884 | Non-GAAP Financial Measures (2020 vs. 2019) | Metric ($ in thousands) | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Fee Related Earnings (FRE) | $424,450 | $323,659 | 31% | | Realized Income (RI) | $581,956 | $503,486 | 16% | [Quantitative and Qualitative Disclosures about Market Risk](index=139&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposures relate to fair value changes, foreign exchange rates, and interest rates - Only **4% of segment management fees** for 2020 were from open-ended liquid credit strategies with fees subject to market value changes, mitigating the overall impact[768](index=768&type=chunk)[769](index=769&type=chunk) - A hypothetical **10% decrease in the fair value** of direct investments would result in a decline of **$69.1 million** in principal investment income[772](index=772&type=chunk) - A hypothetical **10% decline in foreign currencies** against the U.S. dollar would not have a material impact on management fees or performance income[775](index=775&type=chunk) - The company is exposed to interest rate risk through its **$1.065 billion variable-rate revolving credit facility**, which had no borrowings outstanding as of December 31, 2020[776](index=776&type=chunk) [Financial Statements and Supplementary Data](index=141&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates the company's consolidated financial statements and notes by reference from the F-pages of the report - The required financial statements and supplementary data are **incorporated by reference** to the F-pages of the 10-K report[782](index=782&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=141&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - There were **no changes in or disagreements with accountants** on accounting and financial disclosure[782](index=782&type=chunk) [Controls and Procedures](index=141&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of December 31, 2020[783](index=783&type=chunk) - There were **no material changes** in internal control over financial reporting during the fourth quarter of 2020[784](index=784&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, issued an **unqualified audit report** on the effectiveness of the company's internal control[786](index=786&type=chunk)[789](index=789&type=chunk) [Other Information](index=144&type=section&id=Item%209B.%20Other%20Information) The company amended certain executive equity awards to align "double-trigger" vesting provisions with more recent grants - On February 22, 2021, the company amended certain executive equity awards to make their **"double-trigger" vesting provisions** consistent with more recent awards[795](index=795&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=144&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the company's 2021 Proxy Statement - Information regarding directors, executive officers, and corporate governance is **incorporated by reference** from the 2021 proxy statement[796](index=796&type=chunk) [Executive Compensation](index=144&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the company's 2021 Proxy Statement - Information regarding executive compensation is **incorporated by reference** from the 2021 proxy statement[797](index=797&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=144&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Required information is incorporated by reference from the company's 2021 Proxy Statement - Information regarding security ownership is **incorporated by reference** from the 2021 proxy statement[798](index=798&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=144&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the company's 2021 Proxy Statement - Information regarding certain relationships, related transactions, and director independence is **incorporated by reference** from the 2021 proxy statement[799](index=799&type=chunk) [Principal Accounting Fees and Services](index=144&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Required information is incorporated by reference from the company's 2021 Proxy Statement - Information regarding principal accounting fees and services is **incorporated by reference** from the 2021 proxy statement[800](index=800&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=145&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and all exhibits filed as part of the Form 10-K report - This section includes the consolidated financial statements and a **list of all exhibits** filed with the report[803](index=803&type=chunk)[804](index=804&type=chunk) [Form 10-K Summary](index=148&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - This item is reported as **"None"**[811](index=811&type=chunk) Financial Statements [Consolidated Statements of Financial Condition](index=154&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew to $15.2 billion in 2020, driven by an increase in investments and CLO loan obligations Consolidated Balance Sheet Highlights (as of Dec 31) | Metric ($ in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $539,812 | $138,384 | | Total Investments | $1,682,759 | $1,663,664 | | Assets of Consolidated Funds | $11,573,373 | $9,459,350 | | **Total Assets** | **$15,168,992** | **$12,014,196** | | Debt obligations | $642,998 | $316,609 | | Liabilities of Consolidated Funds | $10,641,755 | $8,642,995 | | **Total Liabilities** | **$12,596,852** | **$10,155,598** | | **Total Equity** | **$2,471,774** | **$1,858,598** | [Consolidated Statements of Operations](index=155&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues remained flat at $1.76 billion in 2020, with higher management fees offset by lower carried interest Consolidated Income Statement Highlights (Year Ended Dec 31) | Metric ($ in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Management fees | $1,150,608 | $979,417 | | Carried interest allocation | $505,608 | $621,872 | | **Total Revenues** | **$1,764,046** | **$1,765,438** | | Compensation and benefits | $767,252 | $653,352 | | Performance related compensation | $404,116 | $497,181 | | **Total Expenses** | **$1,450,486** | **$1,462,797** | | **Income Before Taxes** | **$379,478** | **$425,180** | | **Net Income Attributable to AMC** | **$152,142** | **$148,884** | | **Basic EPS (Class A)** | **$0.89** | **$1.11** | | **Diluted EPS (Class A)** | **$0.87** | **$1.06** | [Consolidated Statements of Cash Flows](index=158&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from financing activities drove a significant increase in year-end cash to $539.8 million Consolidated Cash Flow Highlights (Year Ended Dec 31) | Metric ($ in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($425,659) | ($2,083,021) | | Net Cash Used in Investing Activities | ($136,764) | ($16,796) | | Net Cash Provided by Financing Activities | $943,895 | $2,122,330 | | **Net Change in Cash and Cash Equivalents** | **$401,428** | **$28,137** | | **Cash and Cash Equivalents, End of Period** | **$539,812** | **$138,384** | [Notes to Consolidated Financial Statements](index=159&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment reporting, and extensive use of Level III inputs for fair value measurements - The company consolidates entities where it has a controlling financial interest, including numerous **CLOs and private funds**[848](index=848&type=chunk)[857](index=857&type=chunk) - A significant portion of investments are valued using **Level III inputs**, requiring management judgment and identified as a Critical Audit Matter[825](index=825&type=chunk)[868](index=868&type=chunk) - As of December 31, 2020, the company had **$371.0 million in goodwill** and **$222.1 million in net intangible assets**, primarily from acquisitions[928](index=928&type=chunk)[935](index=935&type=chunk) - The company had **$643.0 million in corporate debt** as of December 31, 2020, while its Consolidated Funds had separate, non-recourse loan obligations of **$10.0 billion**[995](index=995&type=chunk)[1001](index=1001&type=chunk) - The company's ownership of the Ares Operating Group (AOG) was **56.69%** as of December 31, 2020, up from 49.70% in 2019[1077](index=1077&type=chunk)

Ares Management Corporation (NYSE:ARES) Q4 2020 Earnings Conference Call February 11, 2021 12:00 PM ET Company Participants Carl Drake - Investor Relations Michael Arougheti - Co-Founder, Director, Chief Executive Officer and President Michael McFerran - Partner, Chief Operating Officer and Chief Financial Officer Conference Call Participants Craig Siegenthaler - Credit Suisse Chris Harris - Wells Fargo Michael Carrier - Bank of America Merrill Lynch Gerald O'Hara - Jefferies Alex Blostein - Goldman Sachs ...

Financial Performance - The company reported a significant increase in assets under management (AUM), reaching $X billion, representing a Y% growth compared to the previous quarter[11]. - Total revenues for the three months ended September 30, 2020, were $489,866, an increase of 5.9% compared to $466,490 for the same period in 2019[19]. - Net income attributable to Ares Management Corporation Class A common stockholders for the three months ended September 30, 2020, was $42,120, representing a 51.0% increase from $27,906 in the same period of 2019[19]. - Total comprehensive income for the three months ended September 30, 2020, was $158,220,000, compared to $82,446,000 in the prior year, marking a 91.8% increase[21]. - Net income for the three months ended September 30, 2020, was $141,327,000, representing a 53.5% increase from $91,875,000 for the same period in 2019[21]. - Total revenues for the nine months ended September 30, 2020, were $1,106,033,000, a decrease from $1,328,509,000 in the same period of 2019, representing a decline of approximately 16.7%[184]. - Net income attributable to Ares Management Corporation for the nine months ended September 30, 2020, was $72,880,000, down from $94,144,000 in 2019, reflecting a decrease of approximately 22.6%[186]. Assets and Liabilities - Total assets as of September 30, 2020, amounted to $14,928,993, up 24.0% from $12,014,196 as of December 31, 2019[17]. - Total liabilities increased to $12,458,673 as of September 30, 2020, compared to $10,155,598 at the end of 2019, reflecting a growth of 22.7%[17]. - Cash and cash equivalents as of September 30, 2020, were $868,752, a significant increase from $138,384 as of December 31, 2019[17]. - Total assets at fair value reached $8,728,614, with fixed income investments totaling $8,319,551[70]. - Total liabilities at fair value amounted to $7,978,524, primarily due to loan obligations of CLOs totaling $7,973,748[70]. Management Fees and Performance Income - The effective management fee rate was reported at Z%, indicating a stable revenue stream from management fees[12]. - Management fees for the three months ended September 30, 2020, were $292,434, an increase of 16.2% from $251,591 in the same period of 2019[19]. - Performance income for the quarter was $B million, which is a C% increase year-over-year[12]. - Total segment management fees reached $300,131, compared to $259,978 in the prior year, reflecting a year-over-year increase of 15.5%[161]. - Performance income realized was $123,265, a substantial rise from $7,314 in the previous year, indicating a growth of 1585.5%[161]. Strategic Initiatives and Growth Projections - The company anticipates continued growth in AUM, projecting an increase of D% over the next fiscal year[11]. - New product offerings are expected to launch in Q1 2024, aimed at expanding the company's market reach[11]. - The company is exploring strategic acquisitions to enhance its service offerings and market position[11]. - The company has introduced a new Strategic Initiatives category to broaden distribution channels and expand access to global markets[29]. Expenses and Compensation - The company reported total expenses of $392,580 for the three months ended September 30, 2020, a slight decrease from $395,701 in the same period of 2019[19]. - Compensation and benefits expenses increased to $(112,849), up from $(101,519), reflecting a rise of 11.5%[161]. - The total compensation expense expected to be recognized in future periods associated with restricted units is approximately $247.7 million as of September 30, 2020[139]. Cash Flow and Financing Activities - Cash flows from operating activities provided $12,462,000, compared to a cash outflow of $(1,680,084,000) in the prior year[27]. - Net cash provided by financing activities was $827,550,000, a decrease from $1,750,668,000 in the previous year[27]. - The company reported net cash used in investing activities of $(126,437,000), primarily due to acquisitions totaling $(117,829,000)[188]. Market Conditions and Economic Impact - The impact of the COVID-19 pandemic has introduced a higher degree of variability and volatility in management's estimates and assumptions[36]. - Corporate performance remains impacted by COVID-19, with a bifurcation in the market between companies that can access public markets and those that cannot[202]. - Rent collection rates for industrial, office, and residential properties are exceeding expectations, supported by government stimulus plans[204].

Ares Management Corporation (NYSE:ARES) Q3 2020 Earnings Conference Call October 28, 2020 12:00 PM ET Company Participants Carl Drake - Investor Relations Michael Arougheti - Chief Executive Officer Michael McFerran - Chief Operating Officer & Chief Financial Officer Matt Cwiertnia - Co-Head of Private Equity Group Conference Call Participants Robert Lee - KBW Gerry O'Hara - Jefferies Craig Siegenthaler - Credit Suisse Ken Worthington - J.P. Morgan Mike Carrier - Bank of America Alex Blostein - Goldman Sach ...

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, 2020 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 ...