Ares(US:ARES)2025-02-05 11:17Financial Performance - GAAP net income attributable to Ares Management Corporation was $177.3 million for Q4 2024 and $463.7 million for the full year 2024[11]. - Fee Related Earnings for Q4 2024 were $396.2 million, reflecting a 7% increase from Q4 2023[14]. - After-tax Realized Income per share of Class A and non-voting common stock was $1.23 for Q4 2024, a 2% increase from $1.21 in Q4 2023[14]. - Total revenues for Q4 2024 were $1.26 billion, compared to $1.05 billion in Q4 2023, marking a significant increase[13]. - Realized income increased by 10% in Q4-24 to $529.1 million, and by 17% for FY-24 to $1.7 billion[54]. - Fee related earnings for the year ended December 31, 2024, reached $1,568,157 thousand, up from $1,317,012 thousand in 2023, indicating a year-over-year increase of 19.1%[72]. - After-tax realized income for the quarter ended December 31, 2024, was $434,685 thousand, compared to $400,382 thousand in Q4 2023, reflecting an increase of 8.6%[74]. - The realized income per share for Q4 2024 was $1.30, slightly up from $1.26 in Q4 2023, marking a 3.2% increase[74]. Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $484.4 billion, with Fee Paying AUM (FPAUM) at $292.6 billion[11]. - Assets Under Management (AUM) as of December 31, 2024, reached $484.4 billion, marking a 16% increase from the prior year, while FPAUM increased by 12% to $292.6 billion[17][18]. - AUM Not Yet Paying Fees was $95.0 billion as of December 31, 2024, reflecting a 28% increase from the prior year[30]. - Perpetual Capital as of December 31, 2024, was $133.6 billion, representing a 28% increase year-over-year[22]. - Available Capital as of December 31, 2024, was $133.1 billion, a 19% increase from the prior year, driven by commitments to U.S. and European direct lending and real estate debt strategies[29]. - The total AUM as of Q4-24 was $484.4 billion, with Credit accounting for $348.8 billion, Real Assets $75.3 billion, Private Equity $24.0 billion, and Secondaries $29.2 billion[84]. Capital Raising and Deployment - Ares raised $28.3 billion in gross new capital for Q4 2024 and $92.7 billion for the full year 2024, with capital deployment of $32.1 billion and $106.7 billion respectively[11]. - Total gross capital deployment in Q4 2024 was $32.1 billion, compared to $24.0 billion in Q4 2023, and for FY 2024, it was $106.7 billion, up from $68.1 billion in FY 2023[46]. - Gross new capital commitments for Q4 2024 totaled $28.3 billion, with a full year total of $92.7 billion, reflecting significant equity and debt commitments across various funds[16]. - Capital deployment by drawdown funds was $14.0 billion in Q4-24, a decrease of 9% from $15.4 billion in Q4-23, while deployment by perpetual capital vehicles increased to $17.2 billion from $8.2 billion, a growth of 109%[48]. - Gross capital deployment totaled $25.8 billion in Q4-24, representing a 25% increase from $20.7 billion in Q4-23, and $87.6 billion for FY-24 compared to $70.5 billion in FY-23[50]. Management Fees and Earnings - Management fees for Q4 2024 were $779.2 million, up from $697.8 million in Q4 2023, representing an 11% increase[13]. - Management and other fees increased by 14% in Q4-24 to $585.6 million, compared to $514.7 million in Q4-23, and by 17% for FY-24 to $2.2 billion[50]. - The effective management fee rate remained stable at 1.02% for both Q4 2024 and Q4 2023[14]. - Fee related performance revenues for FY 2024 were $231.5 million, primarily generated from U.S. and European private equity secondaries strategies[42]. - Fee related earnings increased by 18% in Q4-24 to $39.2 million, and by 21% for FY-24 to $126.2 million, driven by management fees and net fee related performance revenues[68]. Investment Performance - The Credit Group reported net returns of 2.3% for Q4 2024 in the alternative credit strategy, and 7.8% for the full year 2024[112]. - The U.S. senior direct lending strategy achieved net returns of 2.3% for Q4 2024 and 9.3% for FY 2024[112]. - The European direct lending strategy reported net returns of 2.1% for Q4 2024 and 9.0% for FY 2024[112]. - The APAC credit strategy delivered net returns of 3.2% for Q4 2024 and 9.4% for FY 2024[112]. - Total performance income-realized from consolidated funds was $275.25 million for Q4 2024, compared to $226.33 million in Q4 2023, reflecting a 21.6% increase[109]. - The carried interest allocation for Q4 2024 was $196.17 million, significantly up from $76.75 million in Q4 2023[109]. Strategic Initiatives - Ares completed the acquisition of Walton Street Capital Mexico, increasing AUM by $2.5 billion[11]. - The company plans to continue expanding its market presence through strategic acquisitions and new product developments[110]. - The overall investment performance reflects a strong recovery and growth trajectory, positioning the company favorably for future opportunities[110]. - The company has a focus on expanding its managed accounts and commingled funds that meet perpetual capital criteria[126]. - Future strategies may include further development and distribution of investment offerings through the OMG[125].