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 ...

Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $428.3 billion, a 19% increase from the previous year[15] - Total Fee Paying AUM (FPAUM) was $267.1 billion, reflecting a 14% year-over-year growth[15] - AUM Not Yet Paying Fees rose to $77.4 billion, a 28% increase, primarily due to commitments in direct lending and alternative credit strategies[26] - AUM reached $308.6 billion in Q1-24, a 24% increase from $249.1 billion in Q1-23[51] - Total AUM increased by 24% from Q1-23, driven by commitments to U.S. direct lending funds[77] - AUM for the Private Equity Group was $24.5 billion, an increase of 19% compared to Q1-23[57] - AUM for the Secondaries Group was $25.6 billion, an increase of 11% compared to Q1-23[59] - The Secondaries Group AUM increased by 57% from Q1-23, primarily driven by additional managed assets from the insurance platform[77] - The Corporate Private Equity segment had an AUM of $21.2 billion, which is 87% of its total strategy[93] Financial Performance - GAAP net income attributable to Ares Management Corporation was $73.0 million, with basic and diluted earnings per share of $0.80[4] - Fee Related Earnings totaled $301.7 million, with realized income of $289.2 million[4] - Fee Related Earnings rose by 21% in Q1-24 to $352.4 million, compared to $291.6 million in Q1-23[51] - Realized Income increased by 21% in Q1-24 to $356.0 million, compared to $293.2 million in Q1-23[51] - Management and other fees increased by 18% in Q1-24 to $520.9 million compared to $439.6 million in Q1-23[51] - Fee Related Earnings increased by 68% for Q1-24 compared to Q1-23, primarily driven by an increase in management fees[56] - Realized Income increased by 18% for Q1-24 compared to Q1-23, primarily driven by the increase in Fee Related Earnings and realized net performance income from ACOF IV[56] Capital Deployment - Gross new capital raised amounted to $17.4 billion, with net inflows of $14.4 billion[4] - Total Gross Capital Deployment in Q1-24 was $18.6 billion, up from $12.2 billion in Q1-23, representing a 52% increase[32] - Capital deployment in the Credit Group totaled $16.4 billion in Q1-24, primarily driven by $9.4 billion in U.S. direct lending[50] - Capital deployment in the Real Assets Group totaled $1.0 billion in Q1-24, primarily driven by $0.4 billion in infrastructure debt[53] - Capital deployment totaled $0.1 billion for Q1-24, primarily driven by corporate private equity[56] - Net new debt commitments for the Credit Group in Q1-24 were $19.59 billion, a substantial increase from previous periods[77] Management Fees and Performance Metrics - Management fees in the Credit Group increased by 18% for Q1-24, primarily due to deployment within U.S. and European alternative credit[50] - Credit Group management fees for Q1-24 were $510.97 million, up from $430.47 million in Q1-23, representing an increase of 18.7%[73] - Total management fees for the Secondaries Group in Q1-24 were $44.42 million, compared to $39.86 million in Q1-23, indicating a growth of 11.5%[73] - Part I Fees are classified as management fees and are predictable and recurring, generally cash-settled each quarter[122] - Part II Fees are paid in arrears and are contingent on cumulative realized capital gains exceeding cumulative unrealized capital depreciation[122] - Performance Income is based on the performance of a fund, adhering to general hurdle rates defined in investment management agreements[122] Investment Strategies and Returns - The company reported a net allocation among investment strategies of $4.16 million in Q1-24, indicating strategic rebalancing[77] - The company reported net allocations among investment strategies of $4.433 billion in Q1-24[90] - The gross multiple of invested capital (MoIC) for ACOF V is 1.5x, while ACOF VI reports a MoIC of 1.4x, indicating strong performance metrics[104] - The internal rate of return (IRR) for ACOF VI stands at 23.6% gross and 16.7% net, showcasing robust investment returns[104] - The gross and net IRR for the single investor U.S. Dollar parallel fund are 9.9% and 7.6%, respectively[106] - The gross and net IRR for the Euro unhedged parallel fund are 1.9% and 9.0%, respectively[106] - The gross and net IRR for the GBP hedged parallel fund are 12.0% and 8.9%, respectively[106] - The gross and net IRR for the Yen hedged parallel fund are 11.0% and 7.7%, respectively[106] Unrealized and Realized Values - Realized value represents the sum of all cash distributions to limited partners, excluding tax and incentive distributions[108] - Unrealized value represents the limited partners' share of the fund's NAV reduced by the accrued incentive allocation[108] - The unrealized values for the funds are subject to market conditions and may not be realized, emphasizing the importance of ongoing market analysis[105] - The gross and net Multiple of Capital (MoC) for the U.S. Dollar denominated parallel fund EF IV are 1.6x and 1.4x, respectively[117] - The gross and net Internal Rate of Return (IRR) for the U.S. Dollar denominated parallel fund EF IV are 14% and 11.9%, respectively[117] Other Financial Information - The balance sheet included $346.3 million in cash and cash equivalents and $3,046.2 million in debt obligations as of March 31, 2024[67] - Perpetual Capital as of March 31, 2024, was $109.2 billion, an increase of 14% from the prior year[16] - 88% of AUM was from perpetual capital or long-dated funds, contributing to 95% of management fees[20] - After-tax RI is calculated by subtracting the current income tax provision from RI, reflecting a more accurate distribution to stockholders[123] - The Operations Management Group (OMG) supports reportable segments by providing infrastructure and administrative services, with revenues and expenses not allocated to reportable segments[122]

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 ...

PART I [Business](index=9&type=section&id=Item%201.%20Business) Ares Management Corporation is a global alternative investment manager with **$418.8 billion** AUM, operating across five investment groups and emphasizing disciplined growth and human capital management - **Assets Under Management (AUM)** reached **$418.8 billion** as of December 31, 2023, demonstrating a **19% 10-year CAGR** and **26% 5-year CAGR**[23](index=23&type=chunk)[24](index=24&type=chunk)[65](index=65&type=chunk) - In 2023, Ares raised **$74.5 billion** in new capital and deployed **$68.1 billion**[23](index=23&type=chunk)[24](index=24&type=chunk) - The firm's growth strategy includes expanding product offerings, enhancing distribution channels, increasing global presence, and completing strategic acquisitions, such as the acquisition of Crescent Point Capital in October 2023 to bolster its APAC private equity capabilities[23](index=23&type=chunk)[32](index=32&type=chunk) - Ares emphasizes strong human capital management, focusing on talent development, diversity, equity, and inclusion (DEI), and environmental, social, and governance (ESG) integration into its investment process[39](index=39&type=chunk)[45](index=45&type=chunk)[49](index=49&type=chunk) AUM Growth and Key Metrics (as of Dec 31, 2023) | Metric | Value (USD) | | :--- | :--- | | **Assets Under Management (AUM)** | $418.8 billion | | **10-Year AUM CAGR** | 19% | | **5-Year AUM CAGR** | 26% | | **2023 Gross New Capital Raised** | $74.5 billion | | **2023 Capital Deployed** | $68.1 billion | | **Employees** | Over 2,850 | | **Direct Institutional Relationships** | Over 2,300 | AUM by Investment Group (as of Dec 31, 2023) | Investment Group | AUM (USD Billions) | | :--- | :--- | | **Credit** | $284.8 | | **Private Equity** | $39.1 | | **Real Assets** | $65.4 | | **Secondaries** | $24.7 | | **Other Businesses** | $4.8 | [Investment Groups](index=20&type=section&id=Investment%20Groups) Ares operates five distinct investment groups, with the Credit Group being the largest at **$284.8 billion** AUM, alongside Private Equity, Real Assets, Secondaries, and Other Businesses - The Credit Group is a market leader, with its direct lending strategy alone managing **$191.4 billion** in AUM across U.S. and European markets[83](index=83&type=chunk)[86](index=86&type=chunk) - The Private Equity Group expanded its Asia-Pacific presence through the acquisition of Crescent Point Capital in October 2023[32](index=32&type=chunk)[102](index=102&type=chunk) - Beginning in 2024, the Special Opportunities strategy, previously in the Private Equity Group, will be integrated into the Credit Group to form a new opportunistic credit strategy[101](index=101&type=chunk) Investment Group AUM Breakdown (as of Dec 31, 2023) | Investment Group | AUM (USD Billions) | Key Strategies | | :--- | :--- | :--- | | **Credit** | $284.8 | Direct Lending, Liquid Credit, Alternative Credit, APAC Credit | | **Private Equity** | $39.1 | Corporate Private Equity, Special Opportunities, APAC Private Equity | | **Real Assets** | $65.4 | Real Estate Equity & Debt, Infrastructure Opportunities & Debt | | **Secondaries** | $24.7 | Private Equity, Real Estate, Infrastructure, Credit Secondaries | | **Other Businesses** | $4.8 | Insurance Solutions, SPACs | [Organizational Structure and Regulation](index=31&type=section&id=Organizational%20Structure%20and%20Regulation) Ares Management Corporation operates as a holding company through its Ares Operating Group, subject to extensive U.S. and international financial regulations, and maintains a multi-class stock structure - AMC is a holding company and operates and controls the business through its general partner interest in the Ares Operating Group[137](index=137&type=chunk) - The multi-class stock structure (Class A, B, C, and non-voting) grants significant voting control to the Holdco Members, making Ares a "controlled company" under NYSE rules[139](index=139&type=chunk)[497](index=497&type=chunk) - The firm's businesses are subject to extensive regulation by governmental and self-regulatory organizations in the U.S. and foreign jurisdictions, including the SEC, FINRA, the U.K.'s FCA, and Luxembourg's CSSF[149](index=149&type=chunk)[152](index=152&type=chunk)[160](index=160&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Ares faces significant risks from market volatility, complex regulations, intense competition, operational failures, and its multi-class stock structure, all potentially impacting financial performance and reputation - **Business & Market Risks:** Difficult market conditions, inflation, and political instability can reduce investment values, hamper performance, and limit the ability to raise or deploy capital; the business is intensely competitive and depends on raising capital from investors[179](index=179&type=chunk)[187](index=187&type=chunk)[193](index=193&type=chunk) - **Regulatory & Compliance Risks:** The company operates in a complex and extensive regulatory environment; changes in laws, increased scrutiny (especially regarding ESG), and failure to comply with regulations like "pay to play" could lead to significant liabilities, increased costs, and reputational damage[236](index=236&type=chunk)[306](index=306&type=chunk)[309](index=309&type=chunk) - **Fund & Performance Risks:** Poor performance of funds can lead to lower revenues, repayment of previously paid carried interest ("clawback"), and difficulty raising future funds; the use of significant leverage, investments in illiquid or high-risk assets, and subjective valuation methodologies pose substantial risks[214](index=214&type=chunk)[395](index=395&type=chunk)[382](index=382&type=chunk) - **Organizational & Structural Risks:** The company's multi-class stock structure concentrates voting power with Holdco Members, making it a "controlled company" and limiting the influence of Class A stockholders; potential conflicts of interest may arise between different stockholder classes[494](index=494&type=chunk)[497](index=497&type=chunk)[509](index=509&type=chunk) - **Operational Risks:** The business is exposed to operational risks, including cybersecurity failures, data security incidents, employee misconduct, and dependence on third-party service providers, which could disrupt operations and cause financial or reputational harm[366](index=366&type=chunk)[566](index=566&type=chunk) [Unresolved Staff Comments](index=100&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[585](index=585&type=chunk) [Cybersecurity](index=100&type=section&id=Item%201C.%20Cybersecurity) Ares maintains an enterprise-wide cybersecurity program aligned with NIST, overseen by the CISO and board, with no material breaches in the last three fiscal years - The company's cybersecurity strategy is aligned with the National Institute of Standards and Technology (NIST) Cybersecurity Framework and is managed by an internal team led by the CISO[586](index=586&type=chunk)[592](index=592&type=chunk) - Oversight is provided by the cross-functional Enterprise Risk Committee (ERC) and the audit committee of the board of directors, with periodic reporting from the CISO[587](index=587&type=chunk)[593](index=593&type=chunk) - The company has not experienced a material information security breach in the last three fiscal years and does not consider any current cybersecurity risks reasonably likely to have a material impact[590](index=590&type=chunk) [Properties](index=101&type=section&id=Item%202.%20Properties) Ares leases its principal executive offices in Los Angeles and other global locations, owning no real property, which management deems suitable for operations - The company's principal executive offices are leased at 2000 Avenue of the Stars, 12th Floor, Los Angeles, California[594](index=594&type=chunk) - Ares does not own any real property and leases all its office spaces worldwide[594](index=594&type=chunk) [Legal Proceedings](index=101&type=section&id=Item%203.%20Legal%20Proceedings) As of December 31, 2023, the company was not subject to any material pending legal proceedings that would significantly impact its financial condition - As of December 31, 2023, the company was not subject to any material pending legal proceedings[595](index=595&type=chunk) [Mine Safety Disclosures](index=101&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[596](index=596&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=102&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ares Management Corporation's Class A common stock trades on the NYSE under "ARES", with a dividend policy aligned to fee-related earnings, and no issuer share repurchases in the period - The company's Class A common stock is traded on the New York Stock Exchange (NYSE) under the ticker symbol "ARES"[599](index=599&type=chunk) - The dividend policy is to provide a fixed quarterly dividend based on expected fee-related earnings after an allocation of current taxes paid, with the amount reassessed annually[603](index=603&type=chunk)[604](index=604&type=chunk) - No issuer purchases of equity securities were made during the period[602](index=602&type=chunk) Quarterly Dividend per Share | Year | Quarterly Dividend per Share (USD) | Annual Dividend per Share (USD) | | :--- | :--- | :--- | | **2022** | $0.61 | $2.44 | | **2023** | $0.77 | $3.08 | | **2024 (Q1 Declared)** | $0.93 | - | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=104&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, Ares achieved strong growth with **$418.8 billion** AUM and **$1.16 billion** Fee Related Earnings, primarily driven by the Credit Group, while maintaining a robust liquidity position - Global markets finished 2023 positively despite volatility, with U.S. and European high-yield bonds and leveraged loans showing positive returns; private markets faced valuation pressures and muted realization opportunities, highlighting the need for flexible capital solutions[616](index=616&type=chunk)[617](index=617&type=chunk) - As of December 31, 2023, the company had **$111.4 billion** in available capital and **$62.9 billion** in AUM not yet paying fees, which could generate approximately **$621.6 million** in potential incremental annual management fees[621](index=621&type=chunk)[643](index=643&type=chunk) - On a consolidated GAAP basis, total revenues increased **19%** to **$3.6 billion**, and net income attributable to Ares Management Corporation increased **183%** to **$474.3 million** for the year ended December 31, 2023[696](index=696&type=chunk) Key Performance Metrics (Year Ended Dec 31) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **AUM** | $418.8B | $352.0B | 19% | | **FPAUM** | $262.4B | $231.1B | 14% | | **Fee Related Earnings (FRE)** | $1,163.7M | $994.4M | 17% | | **Realized Income (RI)** | $1,265.5M | $1,131.0M | 12% | [Results of Operations by Segment](index=128&type=section&id=Results%20of%20Operations%20by%20Segment) In 2023, the Credit Group drove segment growth with **29%** FRE increase, while Real Assets declined due to lower performance fees, and Private Equity and Secondaries saw mixed results - **Credit Group:** Growth was driven by a **$333.3 million (24%)** increase in management fees, including a **$109.6 million** rise in Part I Fees from ARCC, CADC, and ASIF, and a **$95.8 million (134%)** increase in fee-related performance revenues[743](index=743&type=chunk)[745](index=745&type=chunk)[747](index=747&type=chunk) - **Real Assets Group:** The decline was primarily caused by a **$167.4 million (100%)** decrease in fee-related performance revenues, as non-traded REITs (AREIT and AIREIT) did not meet performance hurdles in 2023 after generating significant fees in 2022[804](index=804&type=chunk)[807](index=807&type=chunk) - **Private Equity Group:** Growth was supported by a **$35.3 million** increase in management fees from ASOF II deployment and a **$7.4 million** contribution from the Crescent Point acquisition[780](index=780&type=chunk) Fee Related Earnings (FRE) by Segment (Year Ended Dec 31, 2023) | Segment | FRE (USD Millions) | % Change YoY | | :--- | :--- | :--- | | **Credit Group** | $1,257.5 | 29% | | **Private Equity Group** | $112.5 | 33% | | **Real Assets Group** | $218.8 | (19)% | | **Secondaries Group** | $104.4 | (6)% | | **Operations Management Group** | ($538.1) | (20)% | [Liquidity and Capital Resources](index=154&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2023, Ares maintained a strong liquidity position with **$348.3 million** cash and **$430.0 million** credit facility availability, funding commitments and TRA liabilities - Primary liquidity needs include funding investment commitments, operating expenses, debt service, dividend payments, and strategic growth initiatives[871](index=871&type=chunk) - The Tax Receivable Agreement (TRA) liability, which requires payment to certain unitholders for tax benefits realized by the company, increased to **$191.3 million** as of December 31, 2023[889](index=889&type=chunk) Liquidity Position (as of Dec 31, 2023) | Component | Value (USD Millions) | | :--- | :--- | | **Cash and cash equivalents** | $348.3 | | **Available under Credit Facility** | $430.0 | | **Total Debt Obligations** | $2,965.5 | | **Unfunded Capital Commitments** | $1,030.6 | [Quantitative and Qualitative Disclosures About Market Risk](index=161&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Ares is exposed to market, interest rate, and exchange rate risks impacting fund investments and revenues, though management fees are largely insulated from market value fluctuations - **Market Risk:** The firm's revenue is sensitive to the fair value of fund investments; however, the impact on management fees is mitigated as most are based on committed or invested capital rather than market value, and a hypothetical **10%** decrease in fair value would not materially impact management fees[910](index=910&type=chunk)[913](index=913&type=chunk)[914](index=914&type=chunk) - **Interest Rate Risk:** The company is exposed to interest rate risk through its variable-rate Credit Facility; a **100 basis point** increase in interest rates would increase interest expense on any outstanding revolver balance, while its funds are also exposed, with rising rates negatively affecting fixed-rate securities but benefiting floating-rate securities[923](index=923&type=chunk)[924](index=924&type=chunk) - **Exchange Rate Risk:** The company has exposure to foreign currency movements through its international investments and operations, managing this risk through operational hedging and derivative instruments; a hypothetical **10%** decline in foreign currencies against the USD is not expected to have a material impact[920](index=920&type=chunk)[921](index=921&type=chunk)[922](index=922&type=chunk) [Financial Statements and Supplementary Data](index=163&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements and accompanying notes from the F-pages of the Annual Report on Form 10-K - The required information is incorporated by reference to the consolidated financial statements and notes located in the F-pages of the report[928](index=928&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=163&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 - None[928](index=928&type=chunk) [Controls and Procedures](index=163&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes reported - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[929](index=929&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended December 31, 2023[930](index=930&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 over financial reporting as of December 31, 2023[933](index=933&type=chunk)[936](index=936&type=chunk) [Other Information](index=166&type=section&id=Item%209B.%20Other%20Information) Several executive officers and directors adopted Rule 10b5-1 trading plans in Q4 2023 to pre-establish future sales of Class A common stock Adoption of Rule 10b5-1 Trading Plans (Q4 2023) | Plan Participant | Title | Plan Date | Max Shares to be Sold | | :--- | :--- | :--- | :--- | | Bennett Rosenthal | Director, Co-Founder | Dec 14, 2023 | 250,000 | | David Kaplan | Director, Co-Founder | Dec 14, 2023 | 250,000 | | Michael Arougheti | CEO & President | Dec 14, 2023 | 999,585 | | Antony Ressler | Executive Chairman | Dec 15, 2023 | 2,000,000 | PART III [Directors, Executive Officers and Corporate Governance](index=166&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[945](index=945&type=chunk) [Executive Compensation](index=166&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[946](index=946&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=166&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Information on security ownership of beneficial owners and management is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[947](index=947&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=166&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[948](index=948&type=chunk) [Principal Accounting Fees and Services](index=167&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the 2024 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[949](index=949&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=168&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists consolidated financial statements, the independent auditor's report, and a comprehensive catalog of exhibits filed with the Form 10-K - This item contains the consolidated financial statements and the report of the independent registered public accounting firm[951](index=951&type=chunk) - A comprehensive list of exhibits is provided, including the company's certificate of incorporation, bylaws, debt indentures, equity incentive plans, and various material agreements[952](index=952&type=chunk)[954](index=954&type=chunk)[956](index=956&type=chunk) [Form 10-K Summary](index=172&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates no Form 10-K summary is provided - None[961](index=961&type=chunk)