Ares(ARES) - 2025 Q1 - Quarterly Results

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]