Core Insights - Ares Management Corporation has acquired a 20% stake in Plenitude for €2 billion, reflecting an implied enterprise value of over €12 billion [1] Group 1: Acquisition Details - The acquisition was made by Ares Alternative Credit funds and other affiliated Ares funds [1] - The transaction highlights Ares Management's capability to provide flexible capital solutions [1]

Core Viewpoint - ARES (ARES.US) has received an upgrade in its MSCI ESG rating from BBB to A as of November 4, 2025, according to the ESG Rating Center of Sina Finance [1] Group 1 - ARES's MSCI ESG rating improvement indicates a stronger commitment to environmental, social, and governance practices [1]

Core Viewpoint - Aries Management reported higher profit and revenue in Q3, driven by improving credit quality, record fundraising, and increased investment activity across its platform [1][2]. Fundraising and Revenue Growth - The company achieved record fundraising, raising $105 billion over the last 12 months, including a $30 billion quarter [3]. - The wealth management segment raised approximately $12 billion year-to-date, contributing significantly to overall growth [4]. Market Trends and Structural Shifts - There are long-term secular tailwinds in private markets, with a notable shift towards private credit, wealth management, insurance, and digital infrastructure [5]. - Market share consolidation is evident, with limited partners allocating more capital to fewer large platforms [5]. Investment Activity - Aries Management experienced a record deployment quarter, deploying about $40 billion across various sectors, including secondaries, digital infrastructure, and private credit [6]. Credit Quality and Risk Management - The company maintains a low non-accrual rate of approximately 1% at fair value, indicating strong credit quality [9]. - Concerns about underwriting standards and potential fraud in specific market segments are acknowledged, but the overall data does not suggest a late-cycle environment [8][10]. Private Credit Market Dynamics - The private credit market is highly concentrated, with 65% of capital held by the largest managers, which may mitigate risks associated with smaller players [12]. - The company emphasizes that private credit exposures are positioned high in the capital structure, reducing the likelihood of significant losses [14]. Regulatory Developments - There is a movement towards allowing private investments in 401(k) plans, which is expected to diversify fundraising channels and broaden access for individual investors [18][19].

Core Viewpoint - Ares Management Corporation is a prominent alternative asset manager with a focus on diversifying revenue streams and expanding its presence in the energy infrastructure sector [1][3][4]. Group 1: Company Overview - Ares Management operates through various segments including Tradable Credit, Direct Lending, Private Equity, and Real Estate, catering to diverse investment needs [1]. - The company competes with major asset managers such as Blackstone and Apollo Global Management in the alternative investment market [1]. Group 2: Stock Performance and Analyst Sentiment - The consensus price target for Ares Management's stock has decreased from $191.88 to $180.67 over the past year, indicating a slight adjustment in analysts' expectations [2]. - Despite the decrease, the price target has remained stable over the last month and quarter, reflecting steady analyst sentiment [2][5]. Group 3: Strategic Initiatives - Ares is actively expanding in the energy infrastructure sector and is focusing on private wealth and insurance to diversify its revenue streams [3][5]. - The company has successfully raised $5.3 billion for infrastructure projects, aiming to attract high-net-worth clients to enhance its higher-margin business [3]. - Ares anticipates margin expansion as synergies from acquisitions are realized, supported by strong free cash flow yield and robust dividend growth [4].

Financial Data and Key Metrics Changes - Ares Management reported a 28% year-over-year increase in management fees, totaling $971 million, and a 39% increase in fee-related earnings (FRE) [22][23] - Realized income for the quarter increased by 34% year-over-year, reaching $456 million [29] - Assets under management (AUM) grew to over $595 billion, with fee-paying AUM increasing to $368 billion, both up 28% year-over-year [8][22] Business Line Data and Key Metrics Changes - The firm raised over $30 billion in new capital during the quarter, marking the highest quarter on record, and has raised over $77 billion year-to-date [6][7] - Gross deployment reached over $41 billion, a 55% increase from the previous quarter and 30% above the previous high [8] - The infrastructure secondaries fund closed at $3.3 billion, exceeding its hard cap due to strong investor demand [10] Market Data and Key Metrics Changes - The company experienced strong demand for private credit strategies, with $19.3 billion raised in credit strategies during the quarter [11] - Approximately 40% of third-quarter inflows came from outside the U.S., indicating strong international demand [16] - The diversified non-traded REIT saw record fundraising, driven by a leading 1031 exchange program [17] Company Strategy and Development Direction - Ares Management aims to continue increasing its quarterly dividend, with a 20% increase announced for the current quarter [4][5] - The company is focused on expanding its wealth management platform and enhancing its distribution capabilities globally [18] - Ares is positioning itself to benefit from potential credit cycle opportunities, emphasizing its asset-light model and strong capital base [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, noting a rebound in transaction activity and strong M&A volumes expected in the fourth quarter [19] - The firm anticipates continued strong demand for its institutional funds and expects to exceed last year's fundraising record of $93 billion [15][48] - Management highlighted the resilience of its credit portfolios and the low realized loss rates, indicating a healthy credit environment [33][39] Other Important Information - Ares launched the "Promote Giving" initiative, committing to donate a portion of fund performance fees to charitable organizations [20][21] - The company is actively investing in expanding its investment teams across various products and geographies [40] Q&A Session Summary Question: Real estate market outlook and Ares' position - Management highlighted Ares' position as the third-largest institutional real estate manager, benefiting from scale and a vertically integrated platform [43][44] Question: Fundraising outlook for next year - Management expressed confidence in surpassing previous fundraising records, driven by strong performance and diverse strategies [47][48] Question: Impact of lower yields in private credit - Management indicated that investor appetite for private credit remains strong, as private credit spreads continue to offer better relative returns compared to traded alternatives [53][54] Question: Update on GCP transaction integration - Management reported positive integration progress with GCP, enhancing Ares' real estate platform and expanding opportunities in data centers [62][63] Question: Asset-based finance market strategy - Management discussed the significant growth in asset-based finance deployment, with nearly double the deployment in Q3 compared to Q2 [80]

Financial Data and Key Metrics Changes - Ares Management reported a 28% year-over-year increase in management fees, totaling $971 million, and a 39% increase in fee-related earnings (FRE) [6][22] - Realized income increased by 34% year-over-year, reaching $456 million, with after-tax realized income per share of Class A stock growing by 25% [22][29] - Assets under management (AUM) rose to over $595 billion, with fee-paying AUM increasing to $368 billion, both up 28% year-over-year [8][22] Business Line Data and Key Metrics Changes - The firm raised over $30 billion in new capital during the quarter, the highest on record, contributing to a year-to-date total of over $77 billion [7][8] - Gross deployment reached over $41 billion, a 55% increase from the previous quarter and 30% above the previous high [8] - The infrastructure secondaries fund closed at $3.3 billion, exceeding its hard cap due to strong investor demand, making it one of the largest in the market [10] Market Data and Key Metrics Changes - The firm experienced strong demand for private credit strategies, with $19.3 billion raised in credit strategies during the quarter [11][12] - The wealth management segment saw a record $5.4 billion in equity inflows, with significant contributions from international markets, particularly Japan [16][18] - The diversified non-traded REIT achieved the highest quarterly common stock raise in over two years, maintaining a 20% market share in the 1031 exchange space [17] Company Strategy and Development Direction - Ares Management aims to continue increasing its quarterly dividend, with a 20% increase announced for the current quarter [4][5] - The company is focused on expanding its investment strategies, including launching new funds in various sectors such as digital infrastructure and special situations [15][40] - Ares is positioning itself to benefit from potential credit cycle changes, emphasizing its asset-light model and strong fundraising capabilities [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current credit market conditions, indicating that recent bankruptcies are isolated incidents and not indicative of a broader credit cycle downturn [32][33] - The firm anticipates strong M&A activity and deployment opportunities in the upcoming quarters, supported by improving financing conditions [19][20] - Management highlighted the ongoing demand for durable income and differentiated private market solutions, which positions Ares favorably for future growth [8][19] Other Important Information - Ares has committed to donating a portion of fund performance fees to charitable organizations through the Promote Giving initiative, reflecting the firm's core values [20][21] - The company is actively investing in expanding its investment teams and capabilities across various products and geographies [40] Q&A Session Summary Question: Real estate market outlook and Ares' position - Management highlighted Ares' strong position as the third-largest institutional real estate manager, benefiting from scale and a vertically integrated platform [43][44] Question: Fundraising outlook for next year - Management expressed confidence in surpassing the previous record of $93 billion in fundraising, driven by strong performance and diverse strategies [47][48] Question: Impact of lower yields in private credit - Management indicated that investor appetite for private credit remains strong, as it offers relative returns compared to traded alternatives, and lower rates could lead to increased transaction activity [53][54] Question: Update on GCP transaction integration - Management reported positive integration progress with GCP, enhancing Ares' real estate platform and expanding opportunities in data centers [61][63] Question: Wealth fundraising acceleration - Management noted strong momentum in wealth fundraising, particularly from new product launches and international markets, with expectations for continued growth [70][71] Question: Acquisition of BlueCove and Liquid Credit - Management discussed the strategic fit of BlueCove within Ares' insurance capabilities, anticipating significant growth and synergies from the acquisition [73][74] Question: Asset-based finance market strategy - Management outlined a balanced approach to sourcing opportunities in both rated and non-rated markets, with significant deployment growth expected [78][80]

Financial Data and Key Metrics Changes - Ares Management reported a 28% year-over-year increase in management fees, totaling $971 million, and a 39% increase in fee-related earnings (FRE) [5][20] - Realized income increased by 34% year-over-year, reaching $456 million, with after-tax realized income per share of Class A stock growing by 25% [19][27] - Assets under management (AUM) rose to over $595 billion, with fee-paying AUM increasing to $368 billion, both up 28% year-over-year [6][20] Business Line Data and Key Metrics Changes - The firm raised over $30 billion in new capital during the quarter, marking the highest quarter on record, and has raised over $77 billion year-to-date [5][6] - The infrastructure secondaries fund closed at $3.3 billion, exceeding its initial hard cap due to strong investor demand, making it one of the largest in the market [9] - In alternative credit, the open-ended core alternative credit fund raised over $1 billion, bringing total AUM to over $7.4 billion, positioning it as the largest non-rated asset-based finance fund [11] Market Data and Key Metrics Changes - The company noted strong demand for private credit strategies from both institutional and individual investors, with a significant increase in fundraising across various sectors [8][14] - The third quarter saw record fundraising for diversified non-traded REITs, driven by a leading 1031 exchange program [15] - Approximately 40% of third-quarter inflows came from outside the U.S., indicating strong international demand [14] Company Strategy and Development Direction - Ares Management aims to continue increasing its quarterly dividend, with a 20% increase announced for the current quarter [3][4] - The firm is focused on expanding its wealth management platform and enhancing its distribution capabilities globally, particularly in the semi-liquid product space [16][65] - The company is well-positioned to benefit from a potential credit cycle, leveraging its asset-light model and significant dry powder for deployment [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, anticipating strong M&A activity and improved financing conditions [17][18] - The firm expects to exceed last year's fundraising record of $93 billion, driven by strong performance and investor demand [5][46] - Management highlighted the importance of maintaining a diversified product lineup to meet evolving investor needs [16][46] Other Important Information - Ares Management is leading an industry initiative called Promote Giving, committing to donate a portion of fund performance fees to charitable organizations [19] - The company has raised its AUM target for semi-liquid wealth products from $100 billion to $125 billion, reflecting strong advisor demand [15] Q&A Session Summary Question: Insights on real estate market positioning - Management highlighted their global real estate business as the third-largest institutional manager, benefiting from scale and a vertically integrated platform, with significant deployment increases noted [40][41][42] Question: Fundraising outlook for next year - Management expressed confidence in surpassing previous fundraising records, attributing this to strong underlying performance and a diverse strategy mix [44][46] Question: Impact of lower yields in private credit - Management indicated that investor appetite for private credit remains strong, as relative returns compared to traded alternatives are still favorable, despite potential lower yields [49][50] Question: Update on GCP transaction integration - Management reported positive integration progress with GCP, highlighting growth opportunities in real estate and data centers as key areas of focus [57][58][60] Question: Asset-based finance market strategy - Management discussed their balanced approach to sourcing opportunities in both rated and non-rated markets, with significant deployment growth observed [73][75]

Financial Performance - GAAP net income attributable to Ares Management Corporation was $288.9 million for the quarter ended September 30, 2025[1] - After-tax realized income was $425.8 million for the quarter ended September 30, 2025[2] - Fee related earnings were $471.2 million for the quarter ended September 30, 2025[2] - Total assets under management reached $595.7 billion as of September 30, 2025, a 28% year-over-year increase[9,3] - Total fee paying AUM was $367.6 billion as of September 30, 2025, a 28% year-over-year increase[3,37] Fundraising and Capital Deployment - Ares expects to exceed its previous annual fundraising record of $93 billion this year[3] - The company raised $30.9 billion in Q3 2025, with net inflows of capital of $28.5 billion[25] - Capital deployment reached $41.7 billion, including $20.2 billion by drawdown funds[25] - Available capital stood at $150 billion at the end of the third quarter[3] Dividends - Ares declared a quarterly dividend of $1.12 per share of Class A and non-voting common stock[4] - Ares declared a quarterly dividend of $0.84375 per share of its 6.75% Series B mandatory convertible preferred stock[5]

Approximately $15.2 Billion in New Commitments Closed in the Third Quarter and Approximately $49.3 Billion Closed in the 12 Months Ended September 30, 2025 NEW YORK, NY / ACCESS Newswire / November 3, 2025 / Ares Management Corporation (NYSE:ARES) announced today that funds managed by its Credit Group (collectively "Ares") closed approximately $15.2 billion in U.S. direct lending commitments across 88 transactions during the third quarter of 2025 and approximately $49.3 billion in direct lending commitments ...

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