Financial Data and Key Metrics Changes - In Q1 2025, the company reported a year-over-year growth in management fees of 18%, FRE growth of 22%, and after-tax realized income per share of Class A common stock growth of 36% [6][25][32] - The total AUM reached $546 billion, marking a significant milestone as it crossed over $5 trillion for the first time [7][25] - The company declared a quarterly dividend of $1.12 per share, representing a 20% increase over the same quarter last year [4][5] Business Line Data and Key Metrics Changes - Fundraising activities reached over $20 billion in gross new capital commitments, the highest level for Q1 fundraising on record [7][15] - The private credit strategies saw a gross to net deployment ratio of 49%, with capital deployment in drawdown funds increasing nearly 20% over the previous quarter [7][9] - The company experienced strong performance across various strategies, with significant inflows in real estate, infrastructure debt, secondaries, and private equity [15][17] Market Data and Key Metrics Changes - The company noted a shift in market conditions due to increased volatility and uncertainty, particularly following the announcement of tariffs and geopolitical events [8][22] - Despite market challenges, the company maintained a record amount of dry powder, with $142 billion available for deployment [9][12] - The European direct lending business saw a 20% year-over-year increase in deployment, indicating a modest acceleration in the European market [82] Company Strategy and Development Direction - The company aims to leverage its asset-light business model and flexible private market strategies to capitalize on market dislocations [10][11] - A focus on credit-related products is emphasized, with over 72% of total AUM in credit-related assets, primarily senior loans [12][22] - The integration with GCP International is progressing well, with expectations of realizing significant synergies in the coming months [24][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating current economic uncertainties, citing a strong investment pipeline and the ability to invest opportunistically [22][37] - The company anticipates slower M&A activity until more certainty regarding tariffs and economic conditions is established, but sees potential for enhanced investment opportunities [22][23] - Management highlighted the resilience of the business model during past market dislocations, reinforcing confidence in future performance [10][37] Other Important Information - The company reported a significant increase in fee-related performance revenues, totaling $28 million, a substantial rise from $4 million in Q1 2024 [27] - The effective tax rate on realized income was reported at 8.1%, with expectations of a lower range of 8% to 12% for the remainder of the year [32] Q&A Session Summary Question: What is the outlook for private credit quality given potential negative GDP growth? - Management indicated that 96% of exposure in the Global Credit business is in senior loans, with low loan-to-value ratios, suggesting limited risk of defaults [40][42] Question: Can you discuss the momentum in wealth management and product growth? - Management noted record capital gathering in wealth management, with a broadening distribution network and new product offerings [50][51] Question: What is the outlook for FRE margin expansion? - Management remains optimistic about achieving zero to 150 basis points of margin expansion, despite some drag from GCP integration [58][59] Question: How is the pipeline for M&A and deployment in the current market? - Management highlighted the ability to invest across various strategies even in a subdued M&A environment, with significant dry powder available for opportunistic investments [63][67] Question: What are the opportunities in the European market compared to the U.S.? - Management noted an increase in investor appetite for European products and a modest acceleration in deployment in Europe [80][82]

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]

Ares Management Corporation Reports First Quarter 2025 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its first quarter ended March 31, 2025. GAAP net income attributable to Ares Management Corporation was $47.2 million for the quarter ended March 31, 2025. On a basic and diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.00 for the quarter ended March 31, 2025. After-tax realized i ...

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]

Wall Street expects a year-over-year increase in earnings on higher revenues when Ares Management (ARES) reports results for the quarter ended March 2025. 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 5, 2025, might help the stock move higher if these key numbers are better than expe ...

NASHVILLE, Tenn., April 21, 2025 /PRNewswire/ -- Epika Fleet Services, Inc. ("Epika" or the "Company"), a leading mobile-focused provider of preventative maintenance and repair services for commercial trucking fleets, announced that an Ares Private Equity fund ("Ares") has acquired a majority stake in the Company. The transaction provides Epika with significant additional capital to support investments in the quality and buildout of its service offerings, expand its customer base in underserved geographies ...

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]