Core Viewpoint - The Chinese market is too large, innovative, and dynamic to be ignored, and alternative investments have become mainstream globally [2][3][20]. Group 1: Importance of the Chinese Market - AIMA's commitment to China has remained steadfast despite market fluctuations, highlighting the market's vast size and innovative nature [6][8]. - AIMA has established a close partnership with the Asset Management Association of China (AMAC) and has hosted multiple forums to introduce China's asset management industry globally [7][8]. - The Chinese asset management industry is increasingly aligning with international standards, providing opportunities for AIMA to add value [9]. Group 2: Institutionalized Operations - Establishing operational and compliance frameworks that meet institutional standards is crucial for long-term success in alternative investments [12]. - AIMA provides guidance materials and training to help members align their operational standards with global expectations [13]. - Key areas of focus include valuation, operational management, and cybersecurity, which are essential for aligning interests between fund managers and investors [14]. Group 3: Trends in Alternative Investments - There is considerable uncertainty in global public markets, prompting investors to increase allocations to alternative assets, particularly hedge funds with low correlation to public markets [16][17]. - The global alternative investment industry is projected to grow from approximately $22 trillion to $30 trillion by 2030, indicating significant potential growth [18][19]. - Alternative investments have become mainstream, with major North American pension funds allocating close to 30% of their portfolios to this asset class [25][26]. Group 4: Private Credit Growth - Private credit has emerged as a significant growth area within alternative investments, with projections suggesting the market could reach $7 trillion in the coming years [31][34]. - The growth of private credit is supported by attractive returns for investors, particularly insurance institutions, and is underpinned by strong fundamentals [36][37]. - The trend of mergers and acquisitions in the asset management industry reflects the increasing integration of traditional and alternative investment services [38].

Ares Management Overview - As of June 30, 2024, Ares Management Corporation has approximately $447 billion in assets under management (AUM)[16] - Ares has over 2,500 direct institutional relationships[16] - Ares has experienced 18% annualized growth in management fee revenues over the past 10+ years[23] AUM and Financial Growth - Ares' AUM has grown significantly from $49 billion in 2011 to $447 billion as of Q2 2024[24] - Management fee revenue has increased from $324 million in 2011 to $2767 million as of Q2 2024[24] - The number of direct institutional investors has increased from 182 in 2011 to 2,533 as of Q2 2024[24] Financial Performance - Fee Related Earnings (FRE) have increased from $290 million in Q2 2019 LTM to $1,269 million in Q2 2024 LTM, a 34% CAGR[35] - Realized Income has increased from $414 million in Q2 2019 LTM to $1,351 million in Q2 2024 LTM[35] Investor Base and Allocation - Retail Channel AUM is $84 billion, consisting of publicly-traded entities of $33.1 billion, semi-liquid wealth management products of $29.1 billion, and the balance of the High Net Worth Channel of $21.8 billion[45] - Institutional direct AUM has increased nearly 30% annually since Q2 2019[50] Growth Opportunities - As of June 30, 2024, $70.8 billion of AUM was not yet paying fees and was available for future deployment, which could generate approximately $674.7 million in potential incremental annual management fees[103, 104]