Core Insights - Aspida Life Re Ltd. has appointed Elinor Friedman to its Board of Directors, enhancing the board's expertise in product development and pricing within the reinsurance sector [1][3] Company Overview - Aspida Life Re Ltd. is a Bermuda-based reinsurance platform focused on providing life and annuity reinsurance solutions globally, aiming to be a trusted partner in clients' long-term financial growth [5] - As of December 31, 2024, Aspida Re has over $21 billion in total assets [5] Leadership and Expertise - Elinor Friedman brings extensive experience in the life insurance and reinsurance industry, having served as Managing Director at Willis Towers Watson from 2013 to 2024, where she provided consulting services to insurers and reinsurers [2][3] - Friedman's background includes roles as Life Division Leader and Sales and Practice Leader for the Americas at Willis Towers Watson, as well as positions at General American Life Insurance Company and RGA/Swiss Financial Group [3][4] Strategic Vision - Friedman expressed enthusiasm about joining Aspida Re's board, emphasizing her commitment to supporting the company's mission of delivering innovative and secure reinsurance solutions [4] - The company aims to leverage Friedman's expertise in actuarial science and insurance consulting to refine reinsurance structures and strengthen partnerships for long-term financial security [4]

Asset Management and Growth - The company reported a significant increase in assets under management (AUM), reaching $X billion, representing a Y% growth compared to the previous year[19]. - The company anticipates a continued upward trend in AUM, projecting an increase of B% over the next fiscal year[19]. - Ares has $484.4 billion in assets under management (AUM) as of December 31, 2024, up from $82.0 billion a decade ago, reflecting a compound annual growth rate (CAGR) of 27% over the past five years and 19% over the past ten years[26][27]. - In 2024, Ares raised $92.7 billion in gross new capital commitments across more than 185 investment vehicles, with $70.4 billion from over 660 institutional investors, including over 310 new investors[52]. - The total AUM of the company reached $484.4 billion as of December 31, 2024, with 80% attributable to direct institutional relationships[118]. - The number of direct institutional relationships grew from over 850 in 2019 to approximately 2,700 in 2024[116]. Revenue and Earnings - The effective management fee rate was reported at Z%, indicating a stable revenue stream from management fees[20]. - Fee related earnings (FRE) increased by A%, reflecting improved core operating performance driven by management fees and fee related performance revenues[20]. - New product offerings in the wealth management sector are expected to contribute an additional C million in revenue in the upcoming quarter[16]. - A new partnership initiative is expected to generate G million in additional revenue streams by leveraging existing client relationships[16]. - The company derives a significant portion of its management fees from ARCC, indicating reliance on specific revenue sources[162]. - The management fees from ARCC comprise a significant portion of the company's total management fees, and any decline in ARCC's assets or net investment income could adversely affect revenues[191]. Strategic Initiatives - The company is exploring strategic acquisitions to enhance market presence, with a focus on expanding into D regions[16]. - The company engages in strategic transactions, including acquisitions and investments, to enhance its growth strategy[35]. - The company is exploring growth strategies that include acquisitions and entering new lines of business, which involve various risks and uncertainties[162]. - The company plans to expand into new geographic markets and investment strategies, including Japan, Vietnam, and Brazil, which may introduce additional risks and complexities[198]. - The company is exploring growth through acquisitions of other investment management companies, which may involve additional risks and uncertainties[198]. Operational Efficiency and Technology - The management highlighted ongoing investments in technology to improve operational efficiency, with an estimated budget of E million allocated for the next year[16]. - The firm emphasizes a culture of collaboration and responsibility, which is critical for attracting and retaining top talent in the alternative investment management industry[38]. - Technological innovation, particularly in artificial intelligence and data science, is crucial for the company's future competitiveness, and failure to advance in these areas may result in a competitive disadvantage[158]. - The company is required to continuously develop systems and infrastructure to address the increasing complexity of international investments, which may incur significant additional expenses[197]. Regulatory Environment - The SEC has increased regulatory scrutiny on investment management firms, which may impact the company's ability to raise capital and distribute products to retail customers[143]. - The company is subject to extensive regulations, including compliance with the Investment Advisers Act and various global privacy laws, which could affect operational profitability[139][141]. - The U.K. and EU regulatory frameworks continue to impact the company's operations, especially in relation to marketing funds to investors in the EEA[149][150]. - The AIFMD imposes significant regulatory requirements on alternative investment fund managers, affecting operational conditions and transparency[151]. - Increased regulatory scrutiny, particularly regarding artificial intelligence technologies, could materially impact the company's operations[203]. - Compliance with the Dodd-Frank Act may impose additional costs and operational challenges, particularly regarding derivatives transactions and mandatory clearing requirements[206][207]. Market Competition - The company competes in an intensely competitive investment management industry, with expectations of continued competition globally and regionally[155]. - Competition in the investment management sector is intensifying, with larger competitors having greater financial and technical resources, which may create competitive disadvantages for the company[157]. - The company anticipates that institutional investors will consolidate their investments among fewer managers, intensifying competition in the industry[157]. - The investment management business is highly competitive, with various factors influencing competition, including investment performance and brand reputation[184]. Risks and Challenges - Inflation has adversely affected the company's business and the financial condition of its funds and portfolio companies, with ongoing inflation rates remaining above historical levels[171]. - The company is subject to various risks related to market volatility, including geopolitical tensions and economic uncertainties, which could adversely impact investment performance and capital raising activities[165]. - Poor performance of funds or regulatory constraints could hinder the ability to raise new capital, affecting future growth prospects[173]. - The company faces challenges in attracting and retaining qualified employees, which is critical for maintaining competitive effectiveness[159]. - The use of leverage exposes the company to substantial risks, particularly related to interest rate fluctuations and market conditions[168]. - Conflicts of interest may arise in investment activities, particularly with overlapping investment objectives among funds, potentially affecting capital allocation decisions[177].

Financial Data and Key Metrics Changes - Ares Management Corporation declared a quarterly dividend of $1.12 per share, representing a 20% increase compared to the same quarter last year [6] - For the full year, management fees and fee-related earnings (FRE) increased by 15% and 17% respectively, driven by fee-paying assets under management (FPAUM) growth [14][57] - AUM totaled $484 billion, up over 15% year-over-year, with fee-paying AUM increasing nearly 12% to approximately $293 billion [57] Business Line Data and Key Metrics Changes - Investment activity in Q4 reached over $32 billion, a 34% increase from the prior year, driven by increases in US private credit, real estate debt and equity, and secondary solutions [17] - The company raised a record $28.3 billion in new capital commitments in Q4, contributing to a full-year fundraising record of $92.7 billion, exceeding the previous record by over $15 billion [22] - The wealth management channel saw inflows tripling year-over-year, with total AUM exceeding $39 billion across eight semi-liquid products [33][38] Market Data and Key Metrics Changes - The company noted over $3 trillion of unrealized value across 28,000 unsold companies in global buyout portfolios, indicating significant pent-up demand for transactions [19] - The competitive landscape is intensifying, but Ares believes it maintains a strong competitive position supported by its products and performance track record [36] Company Strategy and Development Direction - Ares aims to deepen its ability to source differentiated high-quality assets and expand its investment strategies, including the recent acquisition of GCP International [15][20] - The company plans to leverage its leadership in corporate credit to expand market share in real estate and infrastructure lending [81] - Ares is focused on enhancing its capabilities in digital infrastructure and new economy real estate through strategic initiatives [81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, anticipating a gradual improvement in the transaction environment and increased net investment activity [18] - The company expects to enter 2025 with a record $133 billion of dry powder, positioning it well for future opportunities [21] - Management highlighted the importance of generating differentiated fund performance and maintaining strong relationships with investors [64] Other Important Information - Ares reported a record level of realized income for the full year, exceeding $1.4 billion, a 16% increase from 2023 [56] - The company is committed to supporting employees affected by recent wildfires in Los Angeles, providing resources and support through the Ares Charitable Foundation [44] Q&A Session Summary Question: Long-term expense outlook and G&A growth - Management indicated that supplemental distribution fees are a major driver of G&A changes, with expectations for continued increases as new distribution channels open [71][75] Question: Strategic initiatives post-management changes - Management emphasized a focus on integrating GCP and capitalizing on opportunities in digital infrastructure and private credit [80] Question: Update on M&A appetite and business mix - Management stated that the bar for acquisitions is higher, focusing on organic growth opportunities while remaining open to strategic acquisitions [88][90] Question: Credit fee-paying AUM growth and deployment pipeline - Management noted strong deployment activity in Q4 and anticipated gradual improvement in the deployment environment, driven by pent-up demand [95][96] Question: Fundraising momentum and flagship contributions - Management highlighted a diverse range of funds in the market for 2025, with expectations for strong contributions from non-flagship fundraising channels [102][105] Question: Aspida partnership and potential for 401(k) market - Management expressed excitement about the partnership with T. Rowe Price, indicating potential for co-developing investment offerings and exploring opportunities in the 401(k) space [108][110]

Ares Management Corporation Reports Fourth Quarter and Full Year 2024 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its fourth quarter and full year ended December 31, 2024. GAAP net income attributable to Ares Management Corporation was $177.3 million for the quarter ended December 31, 2024. On a basic and diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.72 for the quarter ended ...

Core Insights - Ares Management reported a revenue of $1.24 billion for the quarter ended December 2024, reflecting a year-over-year increase of 30.6% and a surprise of +1.67% over the Zacks Consensus Estimate of $1.22 billion [1] - The earnings per share (EPS) for the quarter was $1.23, slightly up from $1.21 in the same quarter last year, but below the consensus estimate of $1.29, resulting in an EPS surprise of -4.65% [1] Financial Performance Metrics - The total FPAUM (Fee-Generating Assets Under Management) ending balance was reported at $292.60 billion, which was lower than the average estimate of $299.03 billion by three analysts [4] - The FPAUM for the Credit Group was $209.20 billion, below the average estimate of $213.65 billion [4] - The FPAUM for the Private Equity Group was $11.40 billion, compared to the average estimate of $12.87 billion [4] - The FPAUM for the Real Assets Group was $44.10 billion, slightly below the average estimate of $44.77 billion [4] Revenue Breakdown - Other fees amounted to $25.35 million, which was in line with the average estimate of $25.42 million, showing a year-over-year increase of 15.5% [4] - Fee-related performance revenues were reported at $161.98 million, below the average estimate of $179.58 million, representing a year-over-year decline of 6.6% [4] - Management fees totaled $780.69 million, slightly below the average estimate of $786.26 million, but reflecting an 11% year-over-year increase [4] - Performance income-realized was reported at $275.25 million, exceeding the average estimate of $257 million [4] Realized Income Analysis - Realized income from the Secondaries Group was $39.48 million, surpassing the average estimate of $26.77 million, marking a year-over-year increase of 16.7% [4] - Realized income from the Real Assets Group was $74.21 million, exceeding the average estimate of $57.51 million, representing a year-over-year increase of 24.4% [4] - Realized income from the Private Equity Group was $15.83 million, below the average estimate of $21.60 million, indicating a significant year-over-year decline of 56.6% [4] - Realized income from the Credit Group was $529.14 million, slightly below the average estimate of $541.82 million, but showing a year-over-year increase of 16% [4] Stock Performance - Ares Management shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Ares Management reported quarterly earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.29 per share, but showing an increase from $1.21 per share a year ago, resulting in an earnings surprise of -4.65% [1] - The company posted revenues of $1.24 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.67%, compared to year-ago revenues of $951.78 million [2] - Ares Management shares have increased approximately 10.4% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.06 on revenues of $925.59 million, and for the current fiscal year, it is $5.56 on revenues of $4.92 billion [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Financial Performance - GAAP net income attributable to Ares Management Corporation was $177.3 million for Q4 2024 and $463.7 million for the full year 2024[11]. - Fee Related Earnings for Q4 2024 were $396.2 million, reflecting a 7% increase from Q4 2023[14]. - After-tax Realized Income per share of Class A and non-voting common stock was $1.23 for Q4 2024, a 2% increase from $1.21 in Q4 2023[14]. - Total revenues for Q4 2024 were $1.26 billion, compared to $1.05 billion in Q4 2023, marking a significant increase[13]. - Realized income increased by 10% in Q4-24 to $529.1 million, and by 17% for FY-24 to $1.7 billion[54]. - Fee related earnings for the year ended December 31, 2024, reached $1,568,157 thousand, up from $1,317,012 thousand in 2023, indicating a year-over-year increase of 19.1%[72]. - After-tax realized income for the quarter ended December 31, 2024, was $434,685 thousand, compared to $400,382 thousand in Q4 2023, reflecting an increase of 8.6%[74]. - The realized income per share for Q4 2024 was $1.30, slightly up from $1.26 in Q4 2023, marking a 3.2% increase[74]. Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $484.4 billion, with Fee Paying AUM (FPAUM) at $292.6 billion[11]. - Assets Under Management (AUM) as of December 31, 2024, reached $484.4 billion, marking a 16% increase from the prior year, while FPAUM increased by 12% to $292.6 billion[17][18]. - AUM Not Yet Paying Fees was $95.0 billion as of December 31, 2024, reflecting a 28% increase from the prior year[30]. - Perpetual Capital as of December 31, 2024, was $133.6 billion, representing a 28% increase year-over-year[22]. - Available Capital as of December 31, 2024, was $133.1 billion, a 19% increase from the prior year, driven by commitments to U.S. and European direct lending and real estate debt strategies[29]. - The total AUM as of Q4-24 was $484.4 billion, with Credit accounting for $348.8 billion, Real Assets $75.3 billion, Private Equity $24.0 billion, and Secondaries $29.2 billion[84]. Capital Raising and Deployment - Ares raised $28.3 billion in gross new capital for Q4 2024 and $92.7 billion for the full year 2024, with capital deployment of $32.1 billion and $106.7 billion respectively[11]. - Total gross capital deployment in Q4 2024 was $32.1 billion, compared to $24.0 billion in Q4 2023, and for FY 2024, it was $106.7 billion, up from $68.1 billion in FY 2023[46]. - Gross new capital commitments for Q4 2024 totaled $28.3 billion, with a full year total of $92.7 billion, reflecting significant equity and debt commitments across various funds[16]. - Capital deployment by drawdown funds was $14.0 billion in Q4-24, a decrease of 9% from $15.4 billion in Q4-23, while deployment by perpetual capital vehicles increased to $17.2 billion from $8.2 billion, a growth of 109%[48]. - Gross capital deployment totaled $25.8 billion in Q4-24, representing a 25% increase from $20.7 billion in Q4-23, and $87.6 billion for FY-24 compared to $70.5 billion in FY-23[50]. Management Fees and Earnings - Management fees for Q4 2024 were $779.2 million, up from $697.8 million in Q4 2023, representing an 11% increase[13]. - Management and other fees increased by 14% in Q4-24 to $585.6 million, compared to $514.7 million in Q4-23, and by 17% for FY-24 to $2.2 billion[50]. - The effective management fee rate remained stable at 1.02% for both Q4 2024 and Q4 2023[14]. - Fee related performance revenues for FY 2024 were $231.5 million, primarily generated from U.S. and European private equity secondaries strategies[42]. - Fee related earnings increased by 18% in Q4-24 to $39.2 million, and by 21% for FY-24 to $126.2 million, driven by management fees and net fee related performance revenues[68]. Investment Performance - The Credit Group reported net returns of 2.3% for Q4 2024 in the alternative credit strategy, and 7.8% for the full year 2024[112]. - The U.S. senior direct lending strategy achieved net returns of 2.3% for Q4 2024 and 9.3% for FY 2024[112]. - The European direct lending strategy reported net returns of 2.1% for Q4 2024 and 9.0% for FY 2024[112]. - The APAC credit strategy delivered net returns of 3.2% for Q4 2024 and 9.4% for FY 2024[112]. - Total performance income-realized from consolidated funds was $275.25 million for Q4 2024, compared to $226.33 million in Q4 2023, reflecting a 21.6% increase[109]. - The carried interest allocation for Q4 2024 was $196.17 million, significantly up from $76.75 million in Q4 2023[109]. Strategic Initiatives - Ares completed the acquisition of Walton Street Capital Mexico, increasing AUM by $2.5 billion[11]. - The company plans to continue expanding its market presence through strategic acquisitions and new product developments[110]. - The overall investment performance reflects a strong recovery and growth trajectory, positioning the company favorably for future opportunities[110]. - The company has a focus on expanding its managed accounts and commingled funds that meet perpetual capital criteria[126]. - Future strategies may include further development and distribution of investment offerings through the OMG[125].

Core Viewpoint - Analysts forecast Ares Management (ARES) will report quarterly earnings of $1.29 per share, reflecting a year-over-year increase of 6.6%, with revenues expected to reach $1.22 billion, a 28.5% increase compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 0.9% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Key Financial Metrics - The consensus estimate for 'Financial Details Segments- Other fees' is $25.42 million, showing a year-over-year change of +15.8% [5]. - 'Financial Details Segments- Fee related performance revenues' is forecasted to reach $179.58 million, indicating a +3.5% change from the prior year [5]. - 'Financial Details Segments- Management fees' is expected to be $786.26 million, reflecting an 11.8% year-over-year increase [6]. - 'Realized Income- Secondaries Group' is projected at $26.77 million, indicating a decline of -20.9% from the previous year [6]. FPAUM and AUM Estimates - Analysts estimate 'FPAUM Rollforward - Ending Balance - Total' at $299.03 billion, up from $261.69 billion year-over-year [7]. - 'FPAUM Rollforward - Ending Balance - Credit Group' is expected to reach $213.65 billion, compared to $176.79 billion last year [7]. - 'FPAUM Rollforward - Ending Balance - Private Equity Group' is projected at $12.87 billion, down from $21.61 billion year-over-year [8]. - 'AUM Rollforward - Ending Balance - Total' is anticipated to be $478.70 billion, compared to $418.85 billion last year [9]. Stock Performance - Ares Management shares have increased by +10.8% in the past month, outperforming the Zacks S&P 500 composite, which rose by +2.9% [11].

Core Insights - Ares Management has established itself as a leader in private credit with over $450 billion in assets under management (AUM) allocated to various credit strategies [1] Group 1: Investment Strategy - The company focuses on special situations and deep value plays, utilizing long/short positioning to capture market inefficiencies on both the upside and downside [1] - Ares Management seeks asymmetric opportunities where the downside risk is limited while the upside potential is not fully recognized by the market, such as restructurings, spin-offs, and takeover targets [1] Group 2: Research and Positioning - The company operates as a research group and occasionally takes positions in stocks discussed publicly, indicating a proactive approach to investment opportunities [1]

Capital and Strategic Growth - Form Technologies has received $304 million in new equity capital, including $154 million of common equity from investors like Ares, D E Shaw group, and Onex Credit, and $150 million of preferred equity from D E Shaw group and Ripple Industries [1] - The new capital will support deleveraging and accelerate the company's strategic growth initiatives, including investments in operational capabilities and commercial strategy [1] Company Overview and Market Position - Form Technologies operates 32 facilities across 22 countries, serving nearly 2,000 customers in key markets such as automotive, aerospace, healthcare, and enterprise technology [2] - The company specializes in precision-engineered components, producing over five billion high-precision components annually with expertise in die casting, investment casting, and metal injection molding [4] - Form Technologies has strengthened its commercial organization and expanded its customer base through differentiated solutions and engineering excellence [2][3] Leadership and Strategic Vision - CEO David Angell highlighted the company's strategic repositioning over the past two years, solidifying its position as a global leader in precision-engineered parts [3] - Ares Management, a major investor, expressed confidence in Form Technologies' leadership and its ability to address the growing needs of its diversified customer base [3] Financial and Legal Advisors - Jefferies LLC served as financial advisor and Kirkland & Ellis LLP as legal counsel to Form Technologies [3] - Evercore acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel to Ares Management [3]