Core Insights - Ares Management reported a revenue of $1.05 billion for the quarter ended June 2025, reflecting a year-over-year increase of 33.3% [1] - The earnings per share (EPS) for the quarter was $1.03, up from $0.99 in the same quarter last year, although it fell short of the consensus estimate of $1.11, resulting in an EPS surprise of -7.21% [1] Financial Performance - The reported revenue exceeded the Zacks Consensus Estimate of $1.03 billion by 1.41% [1] - The total Assets Under Management (AUM) reached $572.4 billion, surpassing the average estimate of $565.56 billion [4] - Fee-related performance revenues were reported at $16.7 million, below the average estimate of $18.1 million, marking a year-over-year decline of 22.6% [4] - Management fees amounted to $900.29 million, slightly below the average estimate of $913.48 million, but represented a 24% increase year-over-year [4] - Other fees saw a significant increase to $76.12 million, compared to the estimated $35.92 million, reflecting a year-over-year growth of 229.9% [4] Segment Performance - Realized income from the Secondaries Group was $48.72 million, exceeding the average estimate of $40.43 million, with a year-over-year increase of 53.8% [4] - Realized income from the Credit Group was $435.49 million, slightly below the estimate of $475.85 million, with a year-over-year growth of 6.8% [4] - Realized income from the Real Assets Group was reported at $97.65 million, below the average estimate of $109.73 million, but showed a substantial year-over-year increase of 131.3% [4] - Realized income from the Private Equity Group was $12.86 million, below the estimate of $17.95 million, with a year-over-year increase of 24.7% [4] Stock Performance - Ares Management shares returned +4.3% over the past month, outperforming the Zacks S&P 500 composite's +2.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Ares Management reported quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.11 per share, but showing an increase from $0.99 per share a year ago, resulting in an earnings surprise of -7.21% [1] - The company posted revenues of $1.05 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.41%, and compared to year-ago revenues of $786.5 million [2] - Ares Management shares have increased approximately 4.8% since the beginning of the year, while the S&P 500 has gained 7.8% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.14 on revenues of $1.08 billion, and for the current fiscal year, it is $5.12 on revenues of $4.78 billion [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the top 19% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[Cover Page & Notices](index=1&type=section&id=Cover%20Page%20%26%20Notices) [Financial Highlights and Statements](index=5&type=section&id=Financial%20Highlights%20and%20Statements) [Second Quarter 2025 Highlights](index=5&type=section&id=Q2%202025%20Highlights) Ares Management reported strong Q2 2025 results, with GAAP net income of $137.1 million and Fee Related Earnings (FRE) of $409.1 million, while Assets Under Management (AUM) grew to $572.4 billion | Metric | Value | | :--- | :--- | | **Financial Results** | | | GAAP Net Income (attributable to ARES) | $137.1 million | | GAAP Diluted EPS | $0.46 | | Fee Related Earnings (FRE) | $409.1 million | | Realized Income (RI) | $397.8 million | | After-tax RI per Share | $1.03 | | **Assets Under Management** | | | Total AUM | $572.4 billion | | Total Fee Paying AUM (FPAUM) | $349.6 billion | | Available Capital | $150.8 billion | | **Capital Activity** | | | Gross Capital Raised | $26.2 billion | | Capital Deployment | $26.9 billion | | **Corporate Actions** | | | Quarterly Dividend per Class A Share | $1.12 | [GAAP Statements of Operations](index=7&type=section&id=GAAP%20Statements%20of%20Operations) For Q2 2025, Ares reported total GAAP revenues of $1.35 billion, a significant increase from $788.7 million in Q2 2024, primarily driven by higher management fees and a positive swing in carried interest allocation | GAAP Metric ($ in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,350,128 | $788,682 | +71.2% | | Management Fees | $900,622 | $721,681 | +24.8% | | Carried Interest Allocation | $323,901 | $(51,167) | Favorable | | Total Expenses | $1,137,578 | $564,544 | +101.5% | | Net Income Attributable to Ares | $137,062 | $94,938 | +44.4% | | Diluted EPS | $0.46 | $0.43 | +7.0% | [RI and Other Measures Financial Summary](index=9&type=section&id=RI%20and%20Other%20Measures%20Financial%20Summary) On a non-GAAP basis, Fee Related Earnings (FRE) for Q2 2025 grew 26% year-over-year to $409.1 million, while Realized Income (RI) increased by 10% to $397.8 million | Non-GAAP Metric ($ in thousands, except per share) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Management Fees | $900,285 | $726,111 | +24% | | Fee Related Earnings (FRE) | $409,111 | $324,516 | +26% | | Realized Income (RI) | $397,814 | $363,158 | +10% | | After-tax RI per share | $1.03 | $0.99 | +4% | | FRE Margin | 41.2% | 42.1% | -90 bps | [Capital Activity](index=11&type=section&id=Capital%20Activity) [Gross New Capital Commitments](index=11&type=section&id=Gross%20New%20Capital%20Commitments) In Q2 2025, Ares raised $26.2 billion in gross new capital commitments, with the Credit Group contributing the largest share at $18.1 billion - Total gross new capital commitments for Q2 2025 were **$26.2 billion**[14](index=14&type=chunk) | Group | Q2 2025 Gross Commitments ($B) | Key Activities | | :--- | :--- | :--- | | **Credit Group** | **$18.1** | U.S. Direct Lending ($4.6B), BDCs ($5.7B), Opportunistic Credit ($2.8B) | | **Real Assets Group** | **$3.7** | Real Estate debt funds ($1.1B), Japan DC Partners ($0.8B) | | **Secondaries Group** | **$2.5** | Credit Secondaries ($1.2B), Private Equity Secondaries ($1.1B) | | **Other Businesses** | **$1.9** | Additional managed assets from Insurance | | **Total** | **$26.2** | | [Assets Under Management (AUM) Analysis](index=13&type=section&id=Assets%20Under%20Management%20(AUM)%20Analysis) As of June 30, 2025, AUM reached $572.4 billion, up 28% YoY, while Fee Paying AUM (FPAUM) grew 27% to $349.6 billion, driven by strong fundraising, deployment, and the acquisition of GCP International | Metric ($ in billions) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total AUM | $572.4 | $447.2 | +28% | | Total FPAUM | $349.6 | $275.8 | +27% | - Perpetual Capital AUM increased by **43%** year-over-year to **$166.6 billion**, driven by perpetual wealth vehicles (BDCs, APMF), the GCP International acquisition, and insurance assets[28](index=28&type=chunk)[29](index=29&type=chunk) - AUM Not Yet Paying Fees available for future deployment stands at **$86.8 billion**, which could generate approximately **$822.7 million** in potential incremental annual management fees[42](index=42&type=chunk)[44](index=44&type=chunk) - Incentive Eligible AUM grew **17%** YoY to **$303.8 billion**, with **68%** (**$139.1 billion**) of the invested portion currently generating incentives[46](index=46&type=chunk)[47](index=47&type=chunk) [Capital Deployment](index=25&type=section&id=Capital%20Deployment) Ares deployed a total of $26.9 billion in gross capital during Q2 2025, a slight increase from $26.4 billion in Q2 2024, with deployment evenly split between drawdown funds and perpetual capital vehicles - Total gross capital deployment in Q2 2025 was **$26.9 billion**[53](index=53&type=chunk)[54](index=54&type=chunk) | Deployment Source | Q2 2025 ($B) | Q2 2024 ($B) | | :--- | :--- | :--- | | Drawdown Funds | $13.0 | $13.0 | | Perpetual Capital Vehicles | $13.9 | $12.4 | | **Total** | **$26.9** | **$25.4** | - By segment, the Credit group deployed **$20.6 billion**, Real Assets deployed **$3.0 billion**, Secondaries deployed **$1.0 billion**, and Private Equity deployed **$0.8 billion**[54](index=54&type=chunk) [Segment Performance](index=27&type=section&id=Segment%20Performance) [Credit Group](index=27&type=section&id=Credit%20Group) The Credit Group's Fee Related Earnings (FRE) increased 16% YoY to $426.3 million in Q2 2025, driven by a 16% rise in management and other fees, with AUM reaching $377.1 billion | Credit Group Metric ($ in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Management and other fees | $630,503 | $545,145 | +16% | | Fee Related Earnings | $426,310 | $368,281 | +16% | | Realized Income | $435,494 | $408,205 | +7% | | AUM ($ in billions) | $377.1 | $323.1 | +17% | - Gross capital deployment for the quarter was **$20.6 billion**, led by U.S. direct lending (**$11.1B**) and European direct lending (**$3.8B**)[67](index=67&type=chunk) [Real Assets Group](index=29&type=section&id=Real%20Assets%20Group) The Real Assets Group delivered exceptional growth in Q2 2025, with Fee Related Earnings (FRE) surging 120% YoY to $113.6 million and AUM nearly doubling to $129.8 billion, primarily driven by the acquisition of GCP International | Real Assets Group Metric ($ in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Management and other fees | $224,482 | $106,054 | +112% | | Fee Related Earnings | $113,645 | $51,643 | +120% | | Realized Income | $97,648 | $41,069 | +138% | | AUM ($ in billions) | $129.8 | $67.7 | +92% | - The significant increase in fees and earnings was primarily driven by the acquisition of GCP International[76](index=76&type=chunk) [Private Equity Group](index=31&type=section&id=Private%20Equity%20Group) The Private Equity Group's Q2 2025 performance showed mixed results, with a 32% drop in Fee Related Earnings (FRE) to $9.8 million due to lower management fees, offset by a 13% increase in Realized Income to $12.9 million | Private Equity Group Metric ($ in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Management and other fees | $32,201 | $34,019 | -5% | | Fee Related Earnings | $9,846 | $14,454 | -32% | | Realized Income | $12,858 | $11,392 | +13% | | AUM ($ in billions) | $23.8 | $24.6 | -3% | - The decrease in FRE was driven by lower management fees and higher operating expenses, while the increase in RI was due to realized net performance income[82](index=82&type=chunk) [Secondaries Group](index=33&type=section&id=Secondaries%20Group) The Secondaries Group posted strong Q2 2025 results, with Fee Related Earnings (FRE) increasing 50% YoY to $50.5 million and AUM growing 29% to $33.9 billion, fueled by a 40% rise in management fees | Secondaries Group Metric ($ in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Management and other fees | $67,444 | $48,199 | +40% | | Fee Related Earnings | $50,537 | $33,641 | +50% | | Realized Income | $48,715 | $26,544 | +84% | | AUM ($ in billions) | $33.9 | $26.3 | +29% | - Fee growth was primarily driven by capital raised by APMF and commitments to the third infrastructure secondaries fund[89](index=89&type=chunk) [Supplemental Information](index=35&type=section&id=Supplemental%20Information) [Financial Details - Segments](index=37&type=section&id=Financial%20Details%20-%20Segments) This section provides a detailed unconsolidated financial breakdown for Q2 2025 across all segments, highlighting the Credit group as the largest contributor to earnings and the Operations Management Group (OMG) as a significant cost center | Q2 2025 ($ in thousands) | Credit Group | Real Assets Group | Private Equity Group | Secondaries Group | Operations Mgt. Group | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Management Fees** | $617,141 | $175,924 | $31,767 | $61,643 | - | $900,285 | | **Fee Related Earnings** | $426,310 | $113,645 | $9,846 | $50,537 | $(195,991) | $409,111 | | **Realized Income** | $435,494 | $97,648 | $12,858 | $48,715 | $(196,244) | $397,814 | [Balance Sheet and Liquidity](index=45&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, Ares maintained a strong balance sheet with $1.23 billion in available liquidity and a corporate investment portfolio of $2.3 billion, while net accrued performance income increased to $1.03 billion | Financial Strength ($ in millions) | As of June 30, 2025 | | :--- | :--- | | Available Liquidity | $1,234.7 | | Cash and cash equivalents | $509.7 | | Term debt obligations | $2,560.2 | | Amount drawn on revolving credit facility | $1,115.0 | | Corporate investment portfolio (Unconsolidated) | $2,305.7 | | Net accrued performance income (GAAP) | $1,033.9 | - Net accrued performance income increased from **$957.9 million** at the end of Q4 2024 to **$1,033.9 million** at the end of Q2 2025, driven by **$129.7 million** in net change in unrealized value, offset by **$53.7 million** in net realizations[113](index=113&type=chunk)[115](index=115&type=chunk) [AUM and FPAUM Rollforwards](index=49&type=section&id=AUM%20and%20FPAUM%20Rollforwards) AUM increased by $26.5 billion quarter-over-quarter to $572.4 billion, driven by net new commitments and positive market changes, while FPAUM grew by $14.5 billion primarily due to deployment and new fee-paying commitments | Q2-25 AUM Rollforward ($ in millions) | Credit | Real Assets | Private Equity | Secondaries | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Q1-25 Ending Balance** | **$359,076** | **$124,187** | **$24,727** | **$31,312** | **$6,571** | **$545,873** | | Net new commitments | $18,083 | $3,713 | - | $2,519 | $1,921 | $26,236 | | Distributions/Redemptions | ($5,944) | ($1,850) | ($1,056) | ($200) | ($417) | ($9,467) | | Change in fund value | $9,568 | $4,060 | $114 | $246 | $22 | $14,010 | | **Q2-25 Ending Balance** | **$377,106** | **$129,774** | **$23,766** | **$33,949** | **$7,790** | **$572,385** | | Q2-25 FPAUM Rollforward ($ in millions) | Credit | Real Assets | Private Equity | Secondaries | Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Q1-25 Ending Balance** | **$218,231** | **$76,425** | **$11,352** | **$23,470** | **$5,590** | **$335,068** | | Deployment/Subscriptions | $6,973 | $1,287 | $16 | $409 | - | $8,685 | | **Q2-25 Ending Balance** | **$228,153** | **$79,495** | **$10,993** | **$24,535** | **$6,381** | **$349,557** | [Appendix](index=55&type=section&id=Appendix) [Fund Performance Metrics](index=55&type=section&id=Fund%20Performance%20Metrics) This section provides detailed performance data for significant funds across all investment groups, including quarterly, YTD, and since-inception returns for non-drawdown funds, and IRR and MoIC for drawdown funds - Detailed performance metrics are provided for significant funds within the Credit, Real Assets, Private Equity, and Secondaries groups[126](index=126&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk) - For non-drawdown funds like ARCC (U.S. Direct Lending), the since-inception net return is **12.1%**; for drawdown funds like ACOF VI (Corporate Private Equity), the net IRR is **16.0%** and net MoIC is **1.5x**[126](index=126&type=chunk)[136](index=136&type=chunk) [GAAP to Non-GAAP Reconciliation](index=69&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section reconciles GAAP Income Before Taxes to the key non-GAAP metrics of Realized Income (RI) and Fee Related Earnings (FRE), detailing major adjustments for non-cash expenses and unrealized gains/losses - Reconciles GAAP Income before taxes (**$286.9M**) to Realized Income (**$397.8M**) and Fee Related Earnings (**$409.1M**) for Q2 2025[154](index=154&type=chunk) - Key reconciling items include adjustments for amortization, depreciation, equity compensation, acquisition-related expenses, and unrealized performance and investment income[154](index=154&type=chunk) [Glossary](index=83&type=section&id=Glossary) The glossary provides definitions for key terms and non-GAAP financial measures used throughout the earnings presentation, including detailed explanations of AUM, FPAUM, FRE, and RI - Defines key non-GAAP metrics used by management, such as Fee Related Earnings (FRE), which assesses core operating performance from recurring revenues, and Realized Income (RI), which evaluates performance excluding unrealized fluctuations[179](index=179&type=chunk)[185](index=185&type=chunk) - Explains the composition of various AUM metrics, including total AUM, Fee Paying AUM (FPAUM), AUM Not Yet Paying Fees, Incentive Eligible AUM (IEAUM), and Perpetual Capital[176](index=176&type=chunk)[179](index=179&type=chunk)[184](index=184&type=chunk)

Wall Street analysts forecast that Ares Management (ARES) will report quarterly earnings of $1.12 per share in its upcoming release, pointing to a year-over-year increase of 13.1%. It is anticipated that revenues will amount to $1.05 billion, exhibiting an increase of 33% compared to the year-ago quarter. The average prediction of analysts places 'Financial Details Segments- Management fees' at $918.85 million. The estimate indicates a year-over-year change of +26.5%. Analysts' assessment points toward 'Fin ...

Core Viewpoint - Ares Management Corporation (NYSE: ARES) is rated as a Hold for investors focused on capital appreciation and long-term buy-and-hold strategies, reflecting its strong performance since going public in 2014 [1]. Group 1 - Ares Management has experienced significant growth since its IPO in 2014, indicating a robust investment opportunity for long-term investors [1]. - The company is positioned well for capital appreciation, appealing to investors looking for stable, long-term returns [1]. Group 2 - The article does not provide specific financial metrics or performance data for Ares Management, focusing instead on the overall investment strategy and outlook [1].

Ares Management Overview - As of June 30, 2024, Ares Management Corporation has approximately $447 billion in assets under management (AUM)[16] - Ares has over 2,500 direct institutional relationships[16] - Ares has experienced 18% annualized growth in management fee revenues over the past 10+ years[23] AUM and Financial Growth - Ares' AUM has grown significantly from $49 billion in 2011 to $447 billion as of Q2 2024[24] - Management fee revenue has increased from $324 million in 2011 to $2767 million as of Q2 2024[24] - The number of direct institutional investors has increased from 182 in 2011 to 2,533 as of Q2 2024[24] Financial Performance - Fee Related Earnings (FRE) have increased from $290 million in Q2 2019 LTM to $1,269 million in Q2 2024 LTM, a 34% CAGR[35] - Realized Income has increased from $414 million in Q2 2019 LTM to $1,351 million in Q2 2024 LTM[35] Investor Base and Allocation - Retail Channel AUM is $84 billion, consisting of publicly-traded entities of $33.1 billion, semi-liquid wealth management products of $29.1 billion, and the balance of the High Net Worth Channel of $21.8 billion[45] - Institutional direct AUM has increased nearly 30% annually since Q2 2019[50] Growth Opportunities - As of June 30, 2024, $70.8 billion of AUM was not yet paying fees and was available for future deployment, which could generate approximately $674.7 million in potential incremental annual management fees[103, 104]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on financial markets, launching a book titled "Financial Markets: The Next Generation" in 2025 [1] - He has a non-traditional financial background, having worked as an analyst in the IT sector for Fortune 500 companies, which has informed his approach to equities research [1] - In 2021, he founded his own equities research firm, Albert Anthony & Company, which operates remotely [1] Company Background - Albert Anthony & Company was established in 2021 and is managed entirely remotely, reflecting a modern approach to business operations [1] - The firm provides general market commentary and research based on publicly available data and personal analysis, without offering personalized financial advisory services [1] Professional Experience - Albert Anthony has participated in numerous business and innovation conferences in Croatia, contributing to his understanding of the fast-growing southern European economy [1] - He has completed degrees and ongoing training from institutions such as Drew University and the Corporate Finance Institute, enhancing his expertise in financial markets [1] Media Presence - In addition to writing for platforms like Seeking Alpha and Investing.com, Albert Anthony is launching a YouTube show titled "Financial Markets with Albert Anthony" in 2025, where he will provide market commentary [1] - He has also been involved in European casting agencies, appearing in over five productions, showcasing a diverse skill set beyond finance [1]

Core Viewpoint - Momentum Financial Services Group has successfully renewed and expanded its secured loan facility with Ares Management Alternative Credit funds, increasing the commitment from C$575 million to C$657.9 million, which will support its growth and liquidity needs [2][3][4]. Group 1: Company Overview - Momentum Financial Services Group is a leading provider of accessible financial solutions, operating over 360 stores in Canada and 60 in the United States under the Money Mart® and The Check Cashing Store® brands [5]. - The company specializes in flexible omni-channel solutions, including personal loans, cheque cashing, money transfers, and currency exchange [5][6]. Group 2: Financial Strategy - The expanded credit facility will provide additional capital to fund Momentum's growing loan receivables portfolio and meet the financial needs of its North American customers [3][4]. - The additional funds will be utilized to repay the existing 2023 secured loan facility and support further expansion in eligible loan receivables [3]. Group 3: Leadership and Partnerships - CEO Peter Kalen emphasized that the partnership with Ares Management is crucial for future growth and meeting rising demand for financial solutions [4]. - Ares Management Corporation, as a scaled capital provider, aims to support the continued growth of Momentum and its consumer loan portfolio [4][7].

Summary of Ares Management Conference Call Company Overview - **Company**: Ares Management - **Assets Under Management**: Approximately $550 billion, making it one of the largest alternative asset managers globally [2] Macro Economic Insights - **Global Economy**: The portfolio has held up well despite macroeconomic volatility, with no significant red flags observed in portfolio companies [4][5] - **Portfolio Performance**: - Low loan-to-value (LTV) ratios around 40% indicate strong equity positions from sponsors [6] - Interest coverage improved from 1.6 times to 2 times, with EBITDA growth in the low double digits, specifically 11% in Q1 [6][7] - **Impact of Tariffs**: Minimal impact from tariffs on portfolio performance, with only a single-digit percentage effect noted [7] Market Activity and Outlook - **Transaction Activity**: Anticipation of increased transaction activity as private equity firms look to monetize aged assets, with a significant amount of dry powder available [9][10] - **Pipeline Dynamics**: Activity that was expected in Q2 may shift to Q3 and Q4 due to a temporary pause in transactions [11] - **Deployment Opportunities**: - Over $140 billion of dry powder available for deployment, with a focus on secondaries, asset-backed financing, and real estate [12][14][15] - Year-over-year increase of 160% in secondaries deployment [14] Competitive Landscape - **Private Credit Growth**: The private credit market is experiencing significant growth, attracting new entrants and increasing competition [23] - **Market Dynamics**: The influx of retail dollars has led to compressed spreads in larger check sizes, prompting a strategic pivot to core and lower middle markets [25][27] Future Growth Areas - **Direct Lending**: Expected growth rate of 15% to 20% over the next five years, supported by strong demand and dry powder [34][35] - **Asset-Backed Finance (ABF)**: Significant growth potential in both liquid rated and illiquid non-rated segments, with a focus on insurance partnerships [36][37] - **Real Estate Debt**: Anticipated growth due to maturing bank debt, providing opportunities for Ares to partner with banks [40][41] Private Wealth Management - **Market Strategy**: Ares aims to grow its private wealth management segment, targeting $100 billion in AUM by 2028 [49] - **Product Development**: Introduction of new products, including a sports media entertainment fund, to attract retail investors [45][46] Financial Performance and Projections - **Fee-Related Earnings**: Targeting a growth rate of 16% to 20% over the next five years, driven by various business segments [55] - **Retail Flows**: Strong retail inflows in Q1, with expectations for continued strength in Q2 despite slight fluctuations [54] Technological Advancements - **AI Integration**: Ares is leveraging AI to enhance portfolio management and operational efficiency, with ongoing projects to identify use cases and improve decision-making processes [67][68][71] Conclusion - Ares Management is well-positioned for growth in the alternative asset management space, with a strong portfolio, significant dry powder for deployment, and strategic focus on emerging market opportunities and technological advancements.

Financial Data and Key Metrics Changes - The company reported strong portfolio performance with positive NOI and EBITDA growth, indicating resilience in its financials [3][4] - The alternative credit business is valued at $40 billion, reflecting a robust position in the market [3] Business Line Data and Key Metrics Changes - Direct lending portfolios maintain a loan-to-value ratio of 42%, suggesting a strong backing by institutional equity [7][30] - The company has seen a 61% increase in deployment despite a 7% decline in US M&A volumes, showcasing effective management of capital [25][26] Market Data and Key Metrics Changes - Credit spreads have widened by 50 to 75 basis points post-Liberation Day, but the total return in direct lending remains attractive at around 10% [18][21] - The secondary market for private equity is experiencing significant growth, with an estimated $160 billion in secondary deployment last year, indicating a healthy demand for liquidity solutions [62] Company Strategy and Development Direction - The acquisition of GCP enhances the company's position in industrial real estate and digital infrastructure, aligning with its strategic roadmap for growth in Asia and data centers [57][58] - The company aims to double its asset-based finance business to $75-80 billion, focusing on sub-investment grade and investment grade opportunities [36][38] Management's Comments on Operating Environment and Future Outlook - Management expresses cautious optimism about the economy, noting strong fundamentals despite concerns over inflation and economic growth [4][5] - The company maintains its five-year fee-related earnings growth guidance of 16% to 20%, reflecting confidence in its business model and market position [85][86] Other Important Information - The company emphasizes the importance of maintaining a balance between retail and institutional fundraising to ensure sustainable growth and performance [78][79] - Management highlights the educational efforts made to improve investor understanding of asset-based finance, which is crucial for market expansion [42][44] Q&A Session Summary Question: What are the biggest risks to the private credit market? - Management believes that private credit is one of the last places to see losses due to the high quality of borrowers and the structure of the market [8][9] Question: How is the integration of the GCP acquisition progressing? - The acquisition is on track to enhance the company's capabilities in industrial real estate and data centers, with significant growth potential identified [57][58] Question: How does the company manage the conflict between retail and institutional flows? - The company focuses on building investment capacity to ensure that it can meet the demands of both retail and institutional investors without compromising performance [78][79]