“To support organic growth, the sector should industrialise this strategy. Historically, only about one-third of assets under management growth came from net new money. Firms who embed next best action analytics, straight-through-onboarding, pricing guardrails and incentives for sticky inflows have tended to outperform.”“Additionally, firms should look to build an ecosystem that supports private markets investments. These include educating advisors and clients, curating product shelfs as well as introducing ...

In the months since President Donald Trump ordered a review of ERISA fiduciary guidelines aimed at expanding access to alternative investments, debate and research around these once-niche assets has surged. And 401(k) plan advisors are increasingly warming to them as well, a new study shows. Roughly 1 in 4 defined contribution plan advisors say they are likely to recommend alternatives in workplace plan offerings, with 10% already doing so, according to a survey from market research firm Escalent. The s ...

Company Overview - Ares Management is a leading global alternative asset manager with approximately $600 billion in assets under management [1] Industry Performance - In 2025, Ares maintained its industry-leading growth momentum, driven by record fundraising, accelerated deployment, and strong investment performance [2]

Core Insights - The asset management landscape is evolving, with companies employing innovative strategies and strong partnerships gaining investor interest [1] - Goldman Sachs analyst upgraded Hamilton Lane Inc. to Buy, with a price forecast of $165, indicating over 30% upside potential [1][2] Company Performance - Hamilton Lane's strong position in the alternative asset management sector, particularly in Wealth/Evergreen funds and Secondaries, is highlighted [2] - The company's Evergreen franchise manages approximately $14 billion in NAV, contributing over 30% to fee-related revenue, the highest among alternative managers [4] - Recent financial results show Hamilton Lane reported adjusted EPS of $1.54, exceeding estimates, and revenue of $190.9 million, surpassing consensus [6] Growth Projections - Fee-related earnings (FRE) are expected to grow at a 27% compound annual rate from 2025 to 2027, driven by management fees from Evergreen products and performance-fee contributions [3] - Earnings per share are projected to grow at a 20% annual rate, supported by a significant performance-fee pool with unrealized value [3] Valuation Metrics - Hamilton Lane shares are currently trading at 21 times next-twelve-month P/E, below the historical average of 27× and peers' 23× [5] - Goldman Sachs estimates for EPS are $5.36 for 2025, $6.28 for 2026, and $7.77 for 2027, reflecting expected margin and revenue acceleration [5]

Financial Data and Key Metrics Changes - The company reported strong portfolio performance with positive NOI and EBITDA growth, indicating resilience in its financials [3][4] - The alternative credit business is valued at $40 billion, reflecting a robust position in the market [3] Business Line Data and Key Metrics Changes - Direct lending portfolios maintain a loan-to-value ratio of 42%, suggesting a strong backing by institutional equity [7][30] - The company has seen a 61% increase in deployment despite a 7% decline in US M&A volumes, showcasing effective management of capital [25][26] Market Data and Key Metrics Changes - Credit spreads have widened by 50 to 75 basis points post-Liberation Day, but the total return in direct lending remains attractive at around 10% [18][21] - The secondary market for private equity is experiencing significant growth, with an estimated $160 billion in secondary deployment last year, indicating a healthy demand for liquidity solutions [62] Company Strategy and Development Direction - The acquisition of GCP enhances the company's position in industrial real estate and digital infrastructure, aligning with its strategic roadmap for growth in Asia and data centers [57][58] - The company aims to double its asset-based finance business to $75-80 billion, focusing on sub-investment grade and investment grade opportunities [36][38] Management's Comments on Operating Environment and Future Outlook - Management expresses cautious optimism about the economy, noting strong fundamentals despite concerns over inflation and economic growth [4][5] - The company maintains its five-year fee-related earnings growth guidance of 16% to 20%, reflecting confidence in its business model and market position [85][86] Other Important Information - The company emphasizes the importance of maintaining a balance between retail and institutional fundraising to ensure sustainable growth and performance [78][79] - Management highlights the educational efforts made to improve investor understanding of asset-based finance, which is crucial for market expansion [42][44] Q&A Session Summary Question: What are the biggest risks to the private credit market? - Management believes that private credit is one of the last places to see losses due to the high quality of borrowers and the structure of the market [8][9] Question: How is the integration of the GCP acquisition progressing? - The acquisition is on track to enhance the company's capabilities in industrial real estate and data centers, with significant growth potential identified [57][58] Question: How does the company manage the conflict between retail and institutional flows? - The company focuses on building investment capacity to ensure that it can meet the demands of both retail and institutional investors without compromising performance [78][79]