Ares(ARES) - 2024 Q2 - Quarterly Results

Financial Performance - GAAP net income attributable to Ares Management Corporation was $94.9 million for Q2 2024, with basic and diluted earnings per share of $0.43[4] - Fee Related Earnings increased by 22% year-over-year to $324.5 million, with a Fee Related Earnings margin of 42.1%[9] - Realized Income for the quarter was $363.2 million, representing a 16% increase compared to the previous year[9] - Ares declared a quarterly dividend of $0.93 per share, payable to stockholders of record as of September 16, 2024[5] - Management fees for Q2 2024 were $721.7 million, up from $615.3 million in Q2 2023, reflecting a 17% increase[9] - Realized Income for Q2-24 increased by 17% to $407.9 million, driven by higher Fee Related Earnings[46] - Realized Income before corporate income taxes attributable to Class A and non-voting common stockholders increased to $224,494 million in Q2-24 from $184,977 million in Q2-23, representing a growth of 21.4%[66] - After-tax Realized Income attributable to Class A and non-voting common stockholders rose to $201,325 million in Q2-24, compared to $170,818 million in Q2-23, marking an increase of 17.8%[66] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $447.2 billion, with Fee Paying AUM (FPAUM) at $275.8 billion[4] - As of June 30, 2024, Assets Under Management (AUM) reached $447.2 billion, an 18% increase from the prior year, driven by commitments to various funds and the acquisition of Crescent Point[20] - Funded Perpetual Assets Under Management (FPAUM) was $275.8 billion, a 14% increase year-over-year, primarily due to capital raised by business development companies[20] - Perpetual Capital as of June 30, 2024, was $116.3 billion, reflecting a 17% increase from the previous year, mainly from commitments to alternative credit funds[21] - Available Capital for future deployment was $122.1 billion, with $70.8 billion in AUM not yet paying fees[4] - AUM Not Yet Paying Fees rose by 29% to $83.4 billion, primarily due to commitments to direct lending strategies[30] - Incentive Eligible AUM reached $259.5 billion, a 17% increase from the prior year, driven by commitments across various funds[34] - Total AUM (Assets Under Management) reached $323,123 million in Q2-24, reflecting a year-over-year increase of 22% from $264,553 million in Q2-23[100] Capital Deployment - Ares raised $26.0 billion in gross new capital commitments during the quarter, with net inflows of $25.1 billion[4][18] - Total Gross Capital Deployment in Q2-24 was $26.4 billion, up from $15.2 billion in Q2-23, with significant deployment in U.S. direct lending[38] - Management and other fees increased by 19% in Q2-24 compared to Q2-23, primarily due to deployment within alternative credit strategies[45] - The company reported net new par/equity commitments of $40,352 million in Q2-24, contributing to the overall growth in AUM[100] Fund Performance - The alternative credit strategy, represented by Pathfinder I, achieved net returns of 2.5% for Q2-24 LTM[152] - The opportunistic credit strategy composite, made up of ASOF I and ASOF II, reported net fund-level returns of (0.6)% for Q2-24[152] - U.S. senior direct lending strategy net returns were 3.0% for Q2-24, with gross and net returns for unlevered feeder funds at 2.9% and 2.3% respectively[152] - The European direct lending strategy net returns were 2.6% for Q2-24, with 8.6% for the previous year[152] - The infrastructure debt strategy achieved net returns of 9.2% for Q2-24 LTM[154] - The corporate private equity strategy, represented by ACOF V and ACOF VI, had net fund-level returns of 1.1% for Q2-24[157] Fee-Related Metrics - Available Capital increased by 27% to $122.1 billion, driven by commitments to U.S. and European direct lending strategies[27] - Fee-related earnings (FRE) is a non-GAAP measure used to assess core operating performance, primarily consisting of management fees and fee-related performance revenue[161] - The company expects to pay dividends to Class A and non-voting common stockholders aligned with expected annual fee-related earnings after tax allocations[159] Other Financial Metrics - Corporate income taxes for Q2-24 were $23,169 million, up from $14,159 million in Q2-23, reflecting an increase in tax provision due to higher realized income[66] - The total performance income-realized for the three months ended June 30, 2024, was $(109,642) thousand[142] - The total consolidated other income decreased to $93,187 from $126,421, a decline of 26%[150] - Net investment income from Consolidated Funds was $(109,559), compared to $(157,426) previously, showing an improvement[150]