Financial Performance - GAAP net income attributable to Ares Management Corporation was $47.2 million for Q1 2025, compared to $73.0 million in Q1 2024, reflecting a decrease of 35.2%[13] - Management fees increased to $817.0 million, up 18.8% from $687.7 million in the same quarter last year[15] - Fee Related Earnings rose to $367.3 million, a 22% increase compared to $301.7 million in Q1 2024[17] - Realized Income for the quarter was $405.9 million, representing a 40.4% increase from $289.2 million in Q1 2024[17] - After-tax Realized Income per share of Class A common stock was $1.09, a 36.3% increase from $0.80 in Q1 2024[17] - After-tax realized income for Q1 2025 was $381.4 million, up 43.9% from $265.1 million in Q1 2024[99] - After-tax realized income per share increased to $1.13 in Q1 2025, compared to $0.83 in Q1 2024, reflecting a 36.1% growth[99] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $545.9 billion, with Fee Paying AUM (FPAUM) at $335.1 billion, indicating strong capital management[13] - As of March 31, 2025, Assets Under Management (AUM) reached $545.9 billion, a 27% increase from the prior year[22] - Funded Private Assets Under Management (FPAUM) was $335.1 billion, reflecting a 25% year-over-year growth[22] - Perpetual Capital increased to $154.8 billion, marking a 42% rise compared to the previous year[27] - Available Capital as of March 31, 2025, was $142.0 billion, up 24% from the prior year[35] - AUM Not Yet Paying Fees was $99.2 billion, an increase of 28% year-over-year[35] - The increase of $117.6 billion in AUM was primarily driven by commitments to SDL III, Ares Capital Europe VI, and the GCP Acquisition[24] Capital Raising and Deployment - The company raised $20.2 billion in capital, with net inflows of $19.6 billion during the quarter[13] - The company raised $10.7 billion in gross new capital commitments during Q1 2025[20] - Total Gross Capital Deployment during Q1-25 was $31.4 billion, compared to $18.6 billion during Q1-24, marking a 69% increase[52] - Gross Capital Deployment in drawdown funds was $16.7 billion in Q1-25, up from $9.4 billion in Q1-24[57] Management Fees and Performance - The effective management fee rate was 1.01%, slightly down from 1.02% in Q1 2024[17] - Management fees from perpetual capital or long-dated funds accounted for 92% of total management fees[33] - The potential incremental annual management fees from AUM Not Yet Paying Fees available for future deployment could reach approximately $764.4 million[42] - Management and other fees increased by 14% for Q1-25 compared to Q1-24, totaling $595,994 thousand[63] - Fee related performance revenues surged to $18,395 thousand in Q1-25, compared to $755 thousand in Q1-24, indicating a significant increase[63] Investment Performance - The Credit Group reported net returns of 1.9% for the alternative credit strategy in Q1-25 and 8.9% for the last twelve months (LTM)[156] - The U.S. senior direct lending strategy achieved net returns of 2.4% for Q1-25, with gross and net returns of 2.3% and 1.8% respectively for Q4-25[156] - The European direct lending strategy recorded net returns of 17% for Q1-25 and 8.5% for Q1-25 LTM, with U.S. dollar denominated feeder funds showing returns of 37% and 2.8% for Q1-25[156] - The APAC credit strategy net returns were 3.0% for Q1-25 and an impressive 77.4% for Q1-25 LTM[156] - The Americas real estate equity strategy net returns were 13% for Q1-25[161] - The European real estate equity strategy reported net returns of (0.2)% for Q1-25 and 0.1% for Q1-25 LTM[161] Corporate and Financial Strength - The company maintained a BBB+/A- rating from S&P and Fitch, indicating strong financial strength[108] - The corporate investment portfolio was valued at $1,335.0 million as of March 31, 2025, compared to $1,004.8 million on an unconsolidated basis[108] - Interest income for Q1 2025 was $22.3 million, significantly higher than the previous year's $8.3 million[96] Dividends - Declared a quarterly dividend of $1.12 per share of Class A common stock, payable on June 30, 2025[13] - The company expects to pay dividends aligned with expected annual fee-related earnings after current taxes are allocated[1]

Core Insights - Ares Management (ARES) is expected to report quarterly earnings of $0.94 per share, reflecting a 17.5% increase year over year, with revenues projected at $913.68 million, a 24.1% year-over-year increase [1] - Over the past month, the consensus EPS estimate has been revised downward by 4.3%, indicating a reassessment by analysts [1][2] Financial Performance Estimates - Analysts forecast 'Financial Details Segments- Other fees' to reach $26.37 million, a 32.7% increase year over year [4] - The estimate for 'Financial Details Segments- Fee related performance revenues' is $12.38 million, indicating a significant increase of 233% from the prior-year quarter [4] - 'Financial Details Segments- Management fees' is projected to be $817.56 million, reflecting a 17.9% increase from the previous year [5] - 'Financial Details Segments- Performance income-realized' is expected to reach $70.69 million, a 204.9% increase year over year [5] Assets Under Management (AUM) Estimates - The consensus estimate for 'FPAUM Rollforward - Ending Balance - Total' is $327.60 billion, up from $267.12 billion in the same quarter last year [6] - 'FPAUM Rollforward - Ending Balance - Credit Group' is expected to be $217.62 billion, compared to $189.83 billion a year ago [6] - 'FPAUM Rollforward - Ending Balance - Private Equity Group' is projected at $13.08 billion, up from $12.57 billion year over year [7] - 'FPAUM Rollforward - Ending Balance - Real Assets Group' is expected to reach $66.98 billion, compared to $40.84 billion in the same quarter last year [7] - 'FPAUM Rollforward - Ending Balance - Secondaries Group' is estimated at $23.20 billion, up from $19.89 billion year over year [8] - The total 'AUM Rollforward - Ending Balance' is expected to be $536.48 billion, compared to $428.34 billion a year ago [8] Recent Stock Performance - Shares of Ares Management have shown a return of +2.2% over the past month, contrasting with the S&P 500 composite's -0.2% change [9] - Ares Management holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [10]

Wall Street expects a year-over-year increase in earnings on higher revenues when Ares Management (ARES) reports results for the quarter ended March 2025. 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 5, 2025, might help the stock move higher if these key numbers are better than expe ...

NASHVILLE, Tenn., April 21, 2025 /PRNewswire/ -- Epika Fleet Services, Inc. ("Epika" or the "Company"), a leading mobile-focused provider of preventative maintenance and repair services for commercial trucking fleets, announced that an Ares Private Equity fund ("Ares") has acquired a majority stake in the Company. The transaction provides Epika with significant additional capital to support investments in the quality and buildout of its service offerings, expand its customer base in underserved geographies ...

Core Insights - Ares Management Corporation is a private markets investment manager focused on private credit and real assets, founded in 1997 and publicly listed [1] Group 1: Company Overview - Ares Management Corporation specializes in identifying high-quality companies and applying a disciplined valuation approach to uncover underappreciated investment opportunities [1] - The firm aims to invest in cash-rich companies with strong balance sheets and shareholder-friendly policies [1] - Ares employs a long-only investment strategy with a long-term focus [1]

Core Insights - Omni Bridgeway and Ares Management have completed a strategic transaction to establish Omni Bridgeway Fund 9, which includes a diversified global portfolio of over 150 legal assets [1][2] - Ares acquired a 70% interest in Omni Bridgeway Fund 9 for approximately A$320 million, resulting in a day-1 cash multiple on invested capital exceeding 3x for Omni Bridgeway [2] - The transaction is significant as it represents the first continuation fund in the legal finance industry and one of the largest secondary market transactions in scope and size [2][6] Company Insights - Omni Bridgeway is a global alternative asset manager specializing in legal assets, with approximately A$3.5 billion in cumulative capital raised across 11 funds and a track record of over 35 years [7] - The company has a team of 175 professionals operating from over 20 locations in 15 countries, making it the largest and most diversified fund platform for managing legal assets [7] - The transaction has allowed Omni Bridgeway to fully deleverage its balance sheet while providing significant added working capital, enhancing liquidity for reinvestment in new funds [3][6] Industry Insights - The transaction highlights the increasing interest of institutional investors in legal assets due to their attractive, asymmetrical, and uncorrelated return profile, especially in a volatile capital markets environment [4] - Ares Management's selection of Omni Bridgeway reflects the global scale, diversification, and long-term track record of Omni Bridgeway's portfolio, showcasing the value of its institutional-grade asset management platform [5] - The deal demonstrates that deep pools of institutional secondary capital are available to increase liquidity and mitigate duration risk for well-managed portfolios of legal assets [6]

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 ...