Ares(US:ARES)2025-11-06 13:42Asset Management and Growth - 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, driven by strong capital inflows and performance[17]. - Future outlook includes a projected increase in AUM to $X billion by the end of the fiscal year, driven by new client acquisitions and market expansion[12]. - The company anticipates a growth in fee related earnings (FRE) by approximately Y% in the upcoming quarter, supported by ongoing investment strategies[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 is exploring strategic acquisitions to enhance market presence, with a target of increasing market share by Y%[14]. - The company is focusing on expanding its international footprint, aiming for a Z% increase in revenue from overseas markets[14]. Financial Performance - Total revenues for Q3 2025 reached $1,657.6 million, a 46.5% increase from $1,129.7 million in Q3 2024[25]. - Net income for Q3 2025 was $540.4 million, compared to $280.7 million in Q3 2024, representing a 92.5% year-over-year growth[28]. - Management fees increased to $971.8 million in Q3 2025, up 29.0% from $753.6 million in Q3 2024[25]. - Carried interest allocation rose to $464.7 million in Q3 2025, a significant increase of 67.3% from $277.7 million in Q3 2024[25]. - Total expenses for Q3 2025 were $1,308.2 million, up 53.0% from $854.9 million in Q3 2024[25]. - Net income attributable to Ares Management Corporation was $288.9 million in Q3 2025, compared to $118.5 million in Q3 2024, marking a 143.4% increase[25]. - Basic net income per share for Class A and non-voting common stock was $1.15 in Q3 2025, doubling from $0.55 in Q3 2024[25]. - Total comprehensive income for Q3 2025 was $535.6 million, compared to $317.8 million in Q3 2024, reflecting a 68.7% increase[28]. Assets and Liabilities - Total assets increased to $27.03 billion as of September 30, 2025, up from $24.88 billion at December 31, 2024, representing a growth of approximately 8.6%[23]. - Total liabilities increased to $18.40 billion from $17.49 billion, reflecting a rise of about 5.2%[23]. - Stockholders' equity grew to $4.47 billion, up from $3.54 billion, indicating an increase of approximately 26.3%[23]. - Cash and cash equivalents decreased to $496.67 million from $1.51 billion, a decline of about 67%[23]. - Investments rose to $5.76 billion, compared to $4.64 billion, marking an increase of approximately 24%[23]. - Goodwill surged to $3.44 billion from $1.16 billion, representing a significant increase of approximately 196%[23]. - Accumulated deficit widened to $1.22 billion from $837.29 million, indicating a deterioration of about 45.8%[23]. - Additional paid-in capital increased significantly to $4.20 billion from $2.94 billion, a growth of approximately 42.8%[23]. Acquisitions and Strategic Initiatives - The company completed the acquisition of GCP International on March 1, 2025, with a total consideration of $3.91 billion, including $1.79 billion in cash and $1.66 billion in equity[51]. - The GCP Acquisition is expected to enhance the company's real estate and digital infrastructure investment capabilities and expand its geographic presence[50]. - Goodwill associated with the GCP Acquisition was $2.27 billion, with $1.1 billion deductible for tax purposes[54]. - Acquisition-related costs incurred totaled $68.7 million, with $35.3 million incurred during the nine months ended September 30, 2025[56]. Compensation and Expenses - Performance-related compensation payable increased to $2.99 billion from $2.54 billion, a rise of about 17.5%[23]. - Compensation and benefits expenses increased to $493.578 million in Q3 2025 from $360.013 million in Q3 2024, representing a 37.0% rise[182]. - Total segment expenses for the nine months ended September 30, 2025, amounted to $1,295,629, compared to $987,558 in 2024, indicating a rise of 31.1%[188]. - Total consolidated expenses for Q3 2025 were $1,308,216, a significant increase from $854,887 in Q3 2024, representing a 53% rise[189]. Tax and Deferred Assets - The income tax expense for the three months ended September 30, 2025, was $111.9 million, and for the nine months ended September 30, 2025, it was $190.4 million[138]. - As of September 30, 2025, the Company recorded a net deferred tax asset of $289.1 million[139]. Equity and Shareholder Returns - The company declared dividends of $1.12 per share for each of the three dividend payments made in 2025, totaling $63.6 million in dividends paid for the nine months ended September 30, 2025[154]. - The Series B mandatory convertible preferred stock has a cumulative dividend rate of 6.75% and will automatically convert into Class A common stock on October 1, 2027[162]. - The company did not repurchase any shares under the $750 million stock repurchase program during the nine months ended September 30, 2025[158]. Investment Performance - The company reported net realized and unrealized gains on investments of $188.4 million in Q3 2025, compared to a loss of $5.1 million in Q3 2024[25]. - The company’s share of net investment income and net realized and unrealized gains related to equity method investments was $195,215 for Q3 2025, significantly higher than $8,093 for Q3 2024[67]. - The company reported a total of $31,924 in collateralized loan obligations and fixed income securities at fair value as of September 30, 2025[65].