Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-36429 ARES MANAGEMENT CORPORATION (Exact name of Registrant as specified in its charter) Delaware 80-0962035 (State or other ...

Financial Data and Key Metrics Changes - The company reported a record $26 billion in gross capital raised during Q2 2024, marking a 29% increase in assets under management (AUM) not yet paying fees, positioning the company well for future deployment [10][27] - AUM reached $447 billion, an 18% increase year-over-year, with fee-paying AUM at $276 billion, up 14% from the previous year [31][32] - Fee-related earnings (FRE) totaled approximately $325 million, reflecting a 22% year-over-year growth, with a margin improvement of 130 basis points to 42.1% [31][32] Business Line Data and Key Metrics Changes - In private credit strategies, gross deployment increased over 58% year-over-year, with approximately $20 billion deployed in Q2 [11] - Real estate strategies saw deployment more than double compared to the previous year, with positive trends in industrial and multifamily sectors [13][14] - The company raised nearly $20 billion in funds managed accounts and collateralized loan obligations (CLOs) within its credit group during Q2 [17] Market Data and Key Metrics Changes - The macroeconomic environment improved, with a stronger transaction environment and stable credit trends, contributing to increased investor confidence [8][9] - The company noted significant institutional and retail demand for alternative investment products globally, particularly in credit strategies and real estate [9][10] - The wealth management channel saw a tripling of net flows year-over-year, indicating strong demand for alternative investments [16][22] Company Strategy and Development Direction - The company is focused on expanding its alternative investment offerings, particularly in private credit, real estate, and digital infrastructure [14][15][38] - There is a strategic emphasis on maintaining a balance sheet light model to capitalize on market opportunities while managing risks effectively [38] - The company is exploring inorganic growth opportunities in sectors such as insurance, Asia real estate, and digital infrastructure [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a large pool of available investment capacity and strong investor demand for products [39] - The company anticipates continued solid economic growth and favorable credit performance in both US and European markets [12] - Management highlighted the importance of adapting to changing market conditions and maintaining a competitive edge through rigorous due diligence and selective investment [12][62] Other Important Information - The company declared a third-quarter common dividend of $0.93 per share, representing a 21% increase over the same quarter last year [7] - Aspida, the company's minority-owned insurance affiliate, secured nearly $600 million in additional institutional equity, positioning it for continued growth [24] - The company has committed nearly $5 billion in digital-related infrastructure investments over the past five years [15] Q&A Session Summary Question: Update on the private wealth channel and new product launches - Management reported positive scaling in new products and noted that international expansion of wealth distribution is accelerating, with 30% to 35% of flows coming from outside the US [41][43] Question: Credit quality and industry outlook on defaults - Management indicated that while default rates may rise, they do not expect alarming levels, citing strong credit quality and a favorable capital structure [44][46] Question: M&A strategy and potential targets - Management highlighted a disciplined approach to M&A, focusing on cultural fit and financial accretion, while noting that rate cuts could catalyze deal flow [49][51] Question: Deployment dynamics and origination ratios - Management expects further improvement in the gross to net origination ratio, with a shift towards new transaction activity [53][54] Question: Wealth distribution fees and expense dynamics - Management clarified that distribution fees are a run-rate expense, and as fundraising increases, these expenses will also rise, but they view it positively as a sign of growth [57][59]

Ares Management Corporation Reports Second Quarter 2024 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its second quarter ended June 30, 2024. GAAP net income attributable to Ares Management Corporation was $94.9 million for the quarter ended June 30, 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 $0.43 for the quarter ended June 30, 2024. After-tax realized in ...

Core Insights - Ares Management reported revenue of $786.5 million for the quarter ended June 2024, a decrease of 0.7% year-over-year, with EPS at $0.99 compared to $0.90 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $860.09 million, resulting in a surprise of -8.56%, while the EPS exceeded the consensus estimate of $0.98 by +1.02% [1] Financial Performance Metrics - Total FPAUM (Fee-Generating Assets Under Management) ending balance was $275.85 billion, below the average estimate of $279.90 billion [3] - Credit Group FPAUM ending balance was $197.09 billion, compared to the estimated $199.03 billion [3] - Private Equity Group FPAUM ending balance was $12.27 billion, lower than the estimated $13.74 billion [3] - Real Assets Group FPAUM ending balance was $41.62 billion, slightly below the estimate of $41.68 billion [3] - Other fees amounted to $23.08 million, exceeding the estimate of $22.67 million [3] - Management fees were reported at $726.11 million, slightly below the estimate of $726.59 million [3] - Realized performance income was $109.64 million, compared to the average estimate of $126.16 million [3] Additional Income Metrics - Fee-related performance revenues were $21.57 million, significantly higher than the estimate of $4.19 million [4] - Realized income from the Secondaries Group was $31.68 million, above the estimate of $26.98 million [4] - Realized income from the Real Assets Group was $42.22 million, below the estimate of $52.93 million [5] - Realized income from the Private Equity Group was $10.31 million, compared to the estimate of $20.80 million [6] - Realized income from the Credit Group was $407.90 million, slightly below the estimate of $408.38 million [7] Stock Performance - Ares Management shares have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite, which changed by -0.4% [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [7]

Ares Management (ARES) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.98 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.02%. A quarter ago, it was expected that this private equity firm would post earnings of $0.93 per share when it actually produced earnings of $0.80, delivering a surprise of -13.98%.Over the last four quarters, ...

| --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------| | | | | | | | | | | | ØARES | | | | | | | | | | Earnings Presentation Second Quarter 2024 | | | | Important Notice This presentation is prepared for Ares Management Corporation ('Ares'') (NYSE: ARES) for the benefit of its public stockholders. This presenta purposes in connection with evaluating the business, operations and financial results of Ares and certain of its affiliates. Any discussio provided solely to ...

In its upcoming report, Ares Management (ARES) is predicted by Wall Street analysts to post quarterly earnings of $0.98 per share, reflecting an increase of 8.9% compared to the same period last year. Revenues are forecasted to be $868.13 million, representing a year-over-year increase of 9.6%.Over the last 30 days, there has been a downward revision of 1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their in ...

Core Viewpoint - Ares Management is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly influence its stock price [1][2]. Earnings Expectations - The consensus estimate for Ares Management's quarterly earnings is $0.98 per share, reflecting an 8.9% increase year-over-year [2]. - Revenues are projected to be $868.13 million, which is a 9.6% increase from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.01% over the last 30 days, indicating a reassessment by analysts [2]. - Ares Management's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.81%, suggesting a bearish outlook from analysts [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a strong Zacks Rank [4]. - Ares Management currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, Ares Management was expected to post earnings of $0.93 per share but only achieved $0.80, resulting in a surprise of -13.98% [7]. - Over the past four quarters, Ares Management has beaten consensus EPS estimates two times [7]. Conclusion - Ares Management does not appear to be a compelling candidate for an earnings beat based on current estimates and revisions, but other factors should also be considered by investors [8].

Company Overview - Unrivaled Sports has made a strategic investment in SNÖBAHN, a leading indoor action sports center in Colorado, enhancing its action sports division with support from Ares Management funds [1][4] - SNÖBAHN aims to expand into new markets, making action and snow sports more accessible, with state-of-the-art facilities designed for efficient learning in skiing, snowboarding, skateboarding, and BMX [2][8] - The partnership with notable athletes like Shaun White and Bode Miller is expected to drive growth and participation in action sports [3][5] Investment and Growth Strategy - Ares Management's investment is aligned with Unrivaled Sports' commitment to enriching communities and inspiring future athletes through innovative training experiences [4][9] - The collaboration aims to introduce action sports to a broader audience, leveraging urban-centric facilities and professional instructors [4][5] - SNÖBAHN's unique training approach is designed to break down geographical barriers traditionally associated with learning snow sports [2][3] Market Position and Future Plans - SNÖBAHN is positioned as a scalable platform for growing participation in various action sports, supported by a strong curriculum and influential partnerships [3][4] - Unrivaled Sports' portfolio includes various youth sports properties, indicating a diversified approach to sports development [6][7] - The company is currently running summer camps at its Colorado locations, further promoting engagement in action sports [5][8]

Ares Management Corporation (ARES) is in talks on a possible merger with real estate investment firm GLP Capital Partners Ltd. The news was first reported by Bloomberg, citing people with knowledge of the matter who asked not to be identified because the information is private.There is no certainty yet that the talks will lead to a deal. Representatives for ARES and GLP Capital declined to comment on the matter.If finalized, the merger will rank as one of the biggest combinations in the alternative asset ma ...