Ares(US:ARES)2025-05-10 00:28Financial Performance - Total revenues for Q1 2025 reached $1,088,805, an increase of 53.8% compared to $707,363 in Q1 2024[25]. - Management fees increased to $816,987 in Q1 2025, up from $687,692 in Q1 2024, reflecting a growth of 18.8%[25]. - Net income attributable to Ares Management Corporation was $21,857 for Q1 2025, a decrease of 70% from $73,027 in Q1 2024[25]. - Comprehensive income attributable to Ares Management Corporation was $89,271 for Q1 2025, compared to $68,177 in Q1 2024, indicating a growth of 30.9%[28]. - Total consolidated expenses rose to $1,014,328, compared to $538,493 in the prior year, an increase of 88.5%[164]. - Income before taxes for Q1 2025 was $141,038, a decrease of 39% from $231,048 in Q1 2024[168]. - The company reported net realized and unrealized gains on investments of $268 for Q1 2025, down from $10,516 in Q1 2024[25]. Assets and Liabilities - Total assets as of March 31, 2025, were $27,181,768, an increase of 9.2% from $24,884,308 as of December 31, 2024[23]. - Total liabilities increased to $18,389,821 as of March 31, 2025, compared to $17,485,922 as of December 31, 2024, reflecting a rise of 5.2%[23]. - Total stockholders' equity increased to $4,454,107 as of March 31, 2025, compared to $3,543,646 as of December 31, 2024, reflecting a growth of 25.7%[23]. - The company reported cash flows used in investing activities of $1,744,690,000 for the three months ended March 31, 2025, compared to $34,071,000 in 2024[36]. - The company’s total investments reached $4.9 billion as of March 31, 2025, up from $4.6 billion at the end of 2024[63]. Growth and Expansion - The company reported a significant increase in assets under management (AUM), reaching $X billion, representing a Y% growth compared to the previous quarter[12]. - Fee paying AUM (FPAUM) increased to $X billion, reflecting a Z% rise, indicating strong demand for the company's investment products[17]. - The company anticipates a growth in fee related earnings (FRE) by X% in the upcoming quarter, driven by increased management fees and performance revenues[17]. - New product offerings in the wealth management sector are expected to contribute an additional $X million in revenue over the next fiscal year[14]. - The company plans to expand its market presence in Europe, targeting a growth of X% in AUM from this region by the end of the next fiscal year[14]. - A strategic acquisition is in progress, which is projected to enhance the company's operational capabilities and add approximately $X billion in AUM[14]. Compensation and Expenses - Performance-related compensation increased to $122,633 in Q1 2025, compared to a negative $50,532 in Q1 2024[25]. - Compensation and benefits expenses totaled $260,714, up from $205,858, indicating a rise of 26.6%[164]. - Total equity-based compensation expense for the three months ended March 31, 2025, was $257.862 million, significantly higher than $92.422 million in 2024[134]. - The company expects to recognize approximately $411.5 million in total compensation expense related to unvested equity awards over the remaining weighted average period of 3.6 years[57]. Investments and Market Strategy - The Credit Group manages credit strategies across various sectors, including liquid credit and direct lending, indicating a diversified approach to credit management[151]. - The Real Assets Group focuses on equity and debt strategies in real estate and infrastructure investments, highlighting the company's commitment to tangible asset classes[151]. - The Private Equity Group categorizes its strategies into corporate private equity and APAC private equity, suggesting a targeted investment approach in different geographical markets[152]. - The Secondaries Group invests in secondary markets across alternative asset classes, including private equity and credit, which may enhance liquidity and investment opportunities[152]. Cash Flow and Capital Management - Net cash provided by operating activities for the three months ended March 31, 2025, was $1,994,203,000, significantly higher than $710,045,000 in 2024[36]. - The company reported cash and cash equivalents decreased to $618,536 as of March 31, 2025, from $1,507,976 as of December 31, 2024[23]. - The company issued $1,657,881,000 in equity related to acquisition activities during the three months ended March 31, 2025[36]. - The company had aggregate unfunded commitments of $1,554.3 million as of March 31, 2025, compared to $1,451.4 million as of December 31, 2024, reflecting a 7.1% increase[104]. Acquisitions - The acquisition of GCP International was completed on March 1, 2025, with a total consideration of $3.9 billion, including $1.8 billion in cash and $1.7 billion in equity[50][51]. - GCP International contributed revenues of $38.8 million and net income of $7.6 million for the period from March 1, 2025, to March 31, 2025[59]. - The Company incurred $69.2 million in acquisition-related costs, with $33.7 million expensed during the three months ended March 31, 2025[58]. Tax and Deferred Assets - The income tax expense for the three months ended March 31, 2025, was $17.537 million, compared to $27.233 million for the same period in 2024[10]. - The net deferred tax asset increased from $241.9 million as of December 31, 2024, to $281.7 million as of March 31, 2025[127].