Group 1 - Ares Management Corporation has appointed Anup Agarwal as Partner and Chief Investment Officer of Ares Insurance Solutions, where he will also lead the business [1] - Agarwal will work alongside David Reilly, the newly appointed Chairman of AIS, and Rajesh Krishnan, who will focus on third-party insurance asset management initiatives [2] - Ares Insurance Solutions manages investment activities for Aspida Holdings Ltd., which holds over $23 billion in assets as of June 30, 2025 [2][3] Group 2 - Agarwal has over 25 years of experience in investment management, previously serving as Senior Investment Advisor at Global Atlantic Financial Group, where he managed a $200 billion insurance platform [4] - Kipp deVeer, Co-President of Ares, highlighted the growing opportunity to provide tailored solutions to insurers facing complex market challenges [5] - Agarwal expressed enthusiasm about joining Ares at a time of innovation in the insurance industry and looks forward to collaborating with colleagues to support clients [5]

Core Insights - Ares Management is planning a credit secondaries transaction valued at approximately €1.5 billion [1] Group 1: Company Overview - Ares Management is an alternative asset manager with direct lending activities in Europe [1] Group 2: Transaction Details - The planned transaction involves trading existing stakes in private credit funds [1]

Question-and-Answer SessionMaybe just to kick it off, talk about how you currently see the macro backdrop. What are you seeing in terms of credit quality, deployment opportunities? How do you feel about activities in the back half of the year and into '26?Michael AroughetiCo-Founder, CEO & Director Yes, maybe macroeconomic first. I think the good news about our platform, we have a lot of data points that come in from our global real assets and credit book. We have investments in probably over 3,000 middle-m ...

Question-and-Answer SessionMaybe just to kick it off, talk about how you currently see the macro backdrop. What are you seeing in terms of credit quality, deployment opportunities? How do you feel about activities in the back half of the year and into '26?Michael AroughetiCo-Founder, CEO & Director Yes, maybe macroeconomic first. I think the good news about our platform, we have a lot of data points that come in from our global real assets and credit book. We have investments in probably over 3,000 middle-m ...

Ares Management Conference Call Summary Company Overview - **Company**: Ares Management Corporation (NYSE: ARES) - **Date**: September 09, 2025 - **Speaker**: Michael Arougheti, CEO Key Points Macroeconomic Outlook - Ares Management has a diverse portfolio with investments in over 3,000 middle market companies and significant real estate holdings, indicating a stable economic environment despite labor market concerns [3][4] - High occupancy rates and year-over-year EBITDA growth of 12% to 13% were reported, with non-accruals below historical averages [3][4] Direct Lending Market - The direct lending market has grown approximately 14.4% over the last decade, with private equity growth at 12.8% [5][6] - Ares Management does not view direct lending as mature; instead, it sees continued growth potential, especially as private equity is expected to outpace private credit growth by 200-300 basis points in the coming years [5][6] - Ares has maintained a strong position in the market, with a 30% year-on-year increase in FPAUM over the last two years, despite a slow M&A environment [6][8] Deployment Trends - Deployment has been strong, particularly in U.S. and European direct lending, with a broad-based increase in areas like secondaries and opportunistic credit [10][11] - The company anticipates continued growth in deployment, especially if interest rates are cut in the latter half of the year [4][10] Competitive Dynamics - Credit spreads are primarily influenced by credit risk rather than competition, with current excess returns in direct lending at approximately 225 basis points compared to broadly syndicated loans [12][13] - Ares Management has not seen significant new entrants in the direct lending market over the past 10-15 years, allowing it to maintain its competitive edge [6][8] Private Credit and Risk Management - Ares Management emphasizes that the companies borrowing in private credit markets are not riskier than those in traditional bank markets [20][21] - The U.S. loan book has a loan-to-value (LTV) ratio of 43%, indicating a strong equity cushion [22][24] - Interest coverage is healthy at two times EBITDA, with non-accruals near all-time lows [24][25] Asset-Based Finance (ABF) - Ares has been in the ABF space for over 20 years, with a current AUM of approximately $47 billion and a target of reaching $70 billion by 2028 [36][37] - The company is focusing on a balanced approach between high-grade and non-rated tranches in ABF to maximize profitability [40] Insurance and Retirement Market - Ares Management is cautiously optimistic about the potential for democratized access to alternative investments in the 401(k) market, pending regulatory changes [49][50] - The company is exploring new product introductions tailored for this market, but significant hurdles remain [51][53] Secondaries Market - Ares has successfully scaled its secondaries business since acquiring Landmark, with AUM growing from $20 billion to approximately $34-35 billion [56][59] - The market remains capital constrained, with annual deployment around $200 billion against $250-270 billion in dry powder [60] Conclusion - Ares Management is positioned well across various sectors, with strong growth in direct lending, asset-based finance, and secondaries, while maintaining a focus on risk management and competitive advantages in the private credit market [3][4][36][56]

Leaf is Positioned as the Largest Direct-to-Consumer Residential Services and Home Improvement Company in North America Acquisition Expands Service Offerings, Creating a Comprehensive Home Solutions Platform HUDSON, Ohio , Sept. 8, 2025 /PRNewswire/ -- Leaf Home ("Leaf") announced today that it has acquired Erie Home ("Erie"), combining two of the foremost leaders in the direct-to-consumer ("DTC") home solutions sector. ...

Group 1 - The approach has received over 180 five-star reviews from members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities [1] - High Yield Investor focuses on balancing safety, growth, yield, and value in their investment strategies [2] Group 2 - Samuel Smith has extensive experience as a lead analyst and Vice President at dividend stock research firms [2] - The services offered by High Yield Investor include real-money portfolios, trade alerts, educational content, and an active investor chat room [2]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements and accompanying notes for the period ended June 30, 2025 [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Total assets grew to $27.3 billion, with Q2 2025 revenues reaching $1.35 billion and net income of $111.8 million Condensed Consolidated Statements of Financial Condition (in thousands) | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$27,264,941** | **$24,884,308** | | Goodwill | $3,436,192 | $1,162,636 | | Intangible assets, net | $2,220,065 | $975,828 | | **Total Liabilities** | **$18,425,558** | **$17,485,922** | | Debt obligations | $3,675,154 | $2,558,914 | | **Total Equity** | **$8,257,198** | **$6,824,190** | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,350,128** | **$788,682** | **$2,438,933** | **$1,496,045** | | Management fees | $900,622 | $721,681 | $1,717,609 | $1,409,373 | | Carried interest allocation | $323,901 | $(51,167) | $483,909 | $(83,645) | | **Total Expenses** | **$1,137,578** | **$564,544** | **$2,151,906** | **$1,103,037** | | **Net Income** | **$225,980** | **$276,251** | **$349,481** | **$480,066** | | Net income attributable to common stockholders | $111,750 | $94,938 | $133,607 | $167,965 | | **Diluted EPS** | **$0.46** | **$0.43** | **$0.48** | **$0.76** | Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,409,904 | $1,142,217 | | Net cash used in investing activities | $(1,767,608) | $(63,309) | | Net cash used in financing activities | $(1,744,928) | $(1,125,531) | | **Net change in cash and cash equivalents** | **$(998,320)** | **$(63,829)** | [Notes to the Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the $3.9 billion GCP acquisition, an upsized credit facility, and subsequent dividend declarations - On March 1, 2025, the Company completed the acquisition of GCP International for a total consideration of **$3.9 billion**, consisting of **$1.79 billion in cash**, **$1.66 billion in equity**, and **$465 million in contingent consideration**[49](index=49&type=chunk)[50](index=50&type=chunk) GCP Acquisition Purchase Price Allocation (in thousands) | Assets Acquired / Liabilities Assumed | Fair Value | | :--- | :--- | | Total identifiable assets acquired | $1,844,322 | | Accounts payable, accrued expenses and other liabilities | $203,969 | | **Net identifiable assets acquired** | **$1,640,353** | | **Goodwill** | **$2,270,422** | | **Net assets acquired** | **$3,910,775** | - In April 2025, the company amended its revolving Credit Facility, extending the maturity to April 2030 and increasing commitments to **$1.84 billion** from $1.40 billion[93](index=93&type=chunk) - The company has contingent liabilities related to the GCP acquisition, including an earnout for the data center business (up to **$1.0 billion**) and the Japan business (up to **$0.5 billion**)[112](index=112&type=chunk) - Subsequent to the quarter end, in July 2025, the board declared a quarterly dividend of **$1.12 per share** for Class A and non-voting common stock and **$0.84375 per share** for Series B preferred stock[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 performance, the GCP acquisition's impact, AUM growth, and segment results [Trends Affecting Our Business](index=56&type=section&id=Trends%20Affecting%20Our%20Business) Global markets performed well in Q2 2025 despite volatility, with the company's portfolio well-positioned - Global equity and debt markets experienced volatility but largely performed well during Q2 2025, supported by positive trade developments and resilient macroeconomic indicators[213](index=213&type=chunk) - Commercial real estate markets showed mixed performance; European markets began to recover due to interest rate cuts, while U.S. markets saw a slight decline[214](index=214&type=chunk)[215](index=215&type=chunk) - Private equity transaction volume slowed during the quarter due to macroeconomic and global trade uncertainty, leading to a heightened focus on disciplined underwriting[216](index=216&type=chunk) - As of June 30, 2025, approximately **85% of the company's debt assets** and **52% of its total assets** were floating rate instruments, positioning the portfolio for a fluctuating interest rate environment[217](index=217&type=chunk) [Managing Business Performance](index=57&type=section&id=Managing%20Business%20Performance) Key operating metrics show significant growth, with total AUM reaching $572.4 billion and FPAUM at $349.6 billion AUM and FPAUM Growth (in billions) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total AUM | $572.4 | $447.2 | | Fee Paying AUM (FPAUM) | $349.6 | $275.8 | - As of June 30, 2025, AUM not yet paying fees was **$86.8 billion**, which could generate approximately **$822.7 million** in potential incremental annual management fees[238](index=238&type=chunk) - Incentive Eligible AUM (IEAUM) was **$421.9 billion** and Incentive Generating AUM (IGAUM) was **$229.9 billion** as of June 30, 2025[240](index=240&type=chunk) [Consolidated Results of Operations](index=67&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2025 revenues grew 71% to $1.35 billion, while expenses rose 102%, driven by the GCP acquisition Consolidated Revenue Breakdown (in thousands) | Revenue Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Management fees | $900,622 | $721,681 | 25% | | Carried interest allocation | $323,901 | $(51,167) | NM | | Administrative, transaction and other fees | $91,563 | $40,973 | 123% | | **Total revenues** | **$1,350,128** | **$788,682** | **71%** | Consolidated Expense Breakdown (in thousands) | Expense Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Compensation and benefits | $643,709 | $419,858 | 53% | | Performance related compensation | $234,706 | $(28,985) | NM | | General, administrative and other expenses | $232,156 | $169,432 | 37% | | **Total expenses** | **$1,137,578** | **$564,544** | **102%** | - The increase in Compensation and Benefits for Q2 2025 was significantly impacted by the GCP acquisition, which included **$40.8 million in equity-based compensation** and **$20.8 million in other cash compensation costs**[279](index=279&type=chunk) - The increase in General, Administrative and Other Expenses was also driven by the GCP acquisition, which contributed **$54.7 million** in Q2 2025[285](index=285&type=chunk) [Segment Analysis](index=76&type=section&id=Segment%20Analysis) Segment performance varied, with strong FRE growth in Real Assets and Credit, leading to a 26% overall FRE increase Fee Related Earnings (FRE) by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Credit Group | $426,310 | $368,281 | 16% | | Real Assets Group | $113,645 | $51,643 | 120% | | Private Equity Group | $9,846 | $14,454 | (32)% | | Secondaries Group | $50,537 | $33,641 | 50% | | **Total FRE** | **$409,111** | **$324,516** | **26%** | Realized Income (RI) by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Credit Group | $435,494 | $408,205 | 7% | | Real Assets Group | $97,648 | $41,069 | 138% | | Private Equity Group | $12,858 | $11,392 | 13% | | Secondaries Group | $48,715 | $26,544 | 84% | | **Total RI** | **$397,814** | **$363,158** | **10%** | [Liquidity and Capital Resources](index=109&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is sufficient with $509.7 million in cash and $725.0 million available under the credit facility - As of June 30, 2025, the company had **$509.7 million in cash** and cash equivalents and **$725.0 million available** under its Credit Facility, with management believing these sources are sufficient[432](index=432&type=chunk) Company Cash Flow Summary (in thousands) | Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,164,527 | $879,653 | | Net cash used in investing activities | $(1,767,608) | $(63,309) | | Net cash used in financing activities | $(173,078) | $(878,127) | - The Tax Receivable Agreement (TRA) liability balance was **$508.6 million** as of June 30, 2025, with payments of **$8.1 million** for the first six months of 2025[453](index=453&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=113&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk exposures are reported for the six months ended June 30, 2025 - There have been **no material changes** in the company's market risks for the six months ended June 30, 2025[458](index=458&type=chunk)[459](index=459&type=chunk) [Item 4. Controls and Procedures](index=113&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025 - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[461](index=461&type=chunk) - There were **no changes in internal control** over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[462](index=462&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=114&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any legal proceedings expected to have a material adverse effect - The company and its affiliates are subject to legal proceedings and regulatory investigations from time to time, but management does not expect any current matters to have a **material impact** on its financial results[463](index=463&type=chunk) [Item 1A. Risk Factors](index=114&type=section&id=Item%201A.%20Risk%20Factors) The report refers to the risk factors detailed in the company's 2024 Annual Report on Form 10-K - The report directs investors to the risk factors detailed in the company's **Annual Report on Form 10-K for the year ended December 31, 2024**, for a comprehensive understanding of potential risks[464](index=464&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=114&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were conducted during the reporting period - **No unregistered sales of equity securities** occurred during the period covered by this report[465](index=465&type=chunk) [Item 5. Other Information](index=115&type=section&id=Item%205.%20Other%20Information) Certain executives and directors entered into Rule 10b5-1 trading plans during the second quarter of 2025 Rule 10b5-1 Trading Plans Adopted in Q2 2025 | Name and Title | Plan Date | Maximum Shares That May Be Sold | Plan Expiration Date | | :--- | :--- | :--- | :--- | | Antony Ressler, Executive Chairman & Co-Founder | May 21, 2025 | 2,000,000 | February 13, 2026 | | Naseem Sagati Aghili, General Counsel and Corporate Secretary | June 11, 2025 | 42,000 plus shares from vested RSUs | March 1, 2026 | [Item 6. Exhibits](index=116&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key agreement amendments and certifications - Key exhibits filed with this report include **Amendment No. 13 to the Credit Agreement**, the Sixth Amended and Restated Exchange Agreement, and the Sixth Amended and Restated Limited Partnership Agreement of Ares Holdings L.P[475](index=475&type=chunk)

Financial Performance - The company reported a GAAP net loss of $11 million, equivalent to a loss of $0.20 per diluted common share[12] - Distributable Earnings (Loss) amounted to $(28) million, or $(0.51) per diluted common share[12] - Excluding realized losses of $33 million from the exit of an office (life sciences) loan, Distributable Earnings were $5 million, or $0.09 per diluted common share[12] - The book value stood at $524 million, or $9.52 per common share ($11.69 excluding CECL reserve)[12] Portfolio & CECL Reserve - The CECL reserve was $119 million, representing 9% of the outstanding principal balance for loans held for investment[12] - The CECL reserve decreased by $20 million in 2Q 2025 due to the exit of an office (life sciences) loan, loan repayments, and other loan-specific attributes[12] - 94% of CECL reserves relates to risk rated 4 and 5 loans[45] - 89% of CECL reserves relates to office and residential / condo loans[45] Strategic Initiatives & Balance Sheet - Office loans were reduced by $61 million QoQ to $524 million, a decrease of 10% QoQ and 30% YoY[12] - Available capital as of June 30, 2025, was $178 million, including $94 million of cash[12] - The company amended and extended a $150 million Morgan Stanley secured funding facility, which includes a $100 million accordion option[12] Dividend - A cash dividend of $0.15 per common share was declared for shareholders for 3Q 2025, equating to an annualized implied dividend yield of 13% to the stock price as of July 31, 2025[12]

Financial Data and Key Metrics Changes - Ares Management reported a quarterly dividend of $1.12 per share, representing a 20% increase compared to the same quarter last year [4] - The company achieved a record management fee of $900 million, reflecting a 24% year-over-year increase [33] - Fee-related earnings (FRE) for the quarter were $409 million, marking a 26% year-over-year growth, with FRE margins at 41.2% [35] Business Line Data and Key Metrics Changes - The total assets under management (AUM) increased to $572 billion, showing a quarter-over-quarter organic growth of 19% on an annualized basis [8] - Fee-paying AUM (FPAUM) rose to $350 billion, representing a quarter-over-quarter organic growth of 17% on an annualized basis [9] - The secondaries business saw a 29% increase in AUM to nearly $34 billion, with $2.5 billion raised during the quarter [16] Market Data and Key Metrics Changes - In the U.S. direct lending market, the company experienced a year-over-year comparable EBITDA growth of 13% with a low loan-to-value ratio of 43% [25] - European direct lending showed strong performance with a loan-to-value ratio of 49% and interest coverage of 2.3x, indicating healthy credit quality [70] - The company raised over $1.3 billion in infrastructure, including $850 million for its first Japan data center development fund [15] Company Strategy and Development Direction - Ares Management is focused on expanding its wealth distribution network, now partnering with over 80 firms globally, a 33% increase year-over-year [19] - The company is optimistic about the growth potential in the data center and digital infrastructure sectors, leveraging its recent GCP acquisition [30] - Ares aims to capitalize on the increasing demand for private credit and alternative investments, particularly in the wealth channel [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business amid market volatility, with strong fundraising and investment performance [7] - The company anticipates a strengthening transaction market environment in the third quarter, supported by lower short-term rates and significant private equity dry powder [28] - Management highlighted the importance of maintaining a balance between capital growth and quality deployment to mitigate risks [60] Other Important Information - The integration of GCP is progressing well, with expected synergies contributing positively to the financial outlook [32] - The company reported a net accrued performance income balance of $1.1 billion, an 8.5% increase from the previous quarter [10] - Ares Management's insurance platform, Aspida, generated over $1.9 billion in new premiums during the quarter, indicating strong demand [22] Q&A Session Summary Question: Discussion on private credit and institutional demands - Management noted that while private credit fundraising has been down sequentially, Ares continues to see institutional appetite for private credit, maintaining fee structures despite market pressures [47][49] Question: Opportunities in alternative investments - Management emphasized their commitment to democratizing access to alternative investments and readiness to offer products as the market opens [56][58] Question: Update on deployment pipelines - Management expressed confidence in the growing pipelines across various business segments, including direct lending and real estate, despite market fluctuations [64] Question: Comparison of European and U.S. direct lending markets - Management indicated that European markets are becoming more attractive due to different rate trajectories, with credit quality remaining stable across both regions [70] Question: Investment in distribution and partnerships - Management confirmed ongoing investments in product development and distribution efforts, particularly in international markets, to drive growth [76][78]