Ares Management Corporation Reports Second Quarter 2021 Results

Rhea-AI Summary

Ares Management Corporation (NYSE: ARES) reported its Q2 2021 financial results, showcasing a GAAP net income of $141.6 million, equating to $0.70 per share. After-tax realized income reached $192.1 million, with a fee-related earnings of $146.9 million. The company raised over $20 billion in capital, pushing its assets under management to a record $248 billion, up 56% year-over-year. A quarterly dividend of $0.47 per share was declared, payable on September 30, 2021.

Positive

• GAAP net income of $141.6 million, up significantly year-over-year.
• After-tax realized income increased to $192.1 million.
• Record assets under management of $248 billion, a 56% increase year-over-year.
• Quarterly dividend of $0.47 declared, indicating strong cash flow.

Negative

• None.

Ares Management Corporation (NYSE:ARES) today reported its financial results for its second quarter ended June 30, 2021.

GAAP net income attributable to Ares Management Corporation was $141.6 million for the quarter ended June 30, 2021. On a basic basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.70 for the quarter ended June 30, 2021. On a diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.69 for the quarter ended June 30, 2021.

After-tax realized income, net of Series A preferred stock dividends, was $192.1 million for the quarter ended June 30, 2021. After-tax realized income per share of Class A and non-voting common stock, net of Series A preferred stock dividends, was $0.64 for the quarter ended June 30, 2021. Fee related earnings was $146.9 million for the quarter ended June 30, 2021.

“Our uniquely positioned and differentiated business model delivered record results across nearly every financial metric for the second quarter, including quarterly records for fee related earnings, capital raising and fund appreciation,” said Michael Arougheti, Chief Executive Officer and President of Ares Management. “During the second quarter, we raised over $20 billion of capital which supported strong growth in our assets under management to a record $248 billion, up 56% on a year-over-year basis.”

“The second quarter is not only our 17th consecutive quarter of sequential quarter fee related earnings growth, but also reflects exceptional financial results with fee related earnings and realized income increasing 52% and 80%, respectively, year-over-year,” said Michael McFerran, Chief Operating Officer and Chief Financial Officer of Ares. “The second quarter also demonstrated the continued benefits of our operational scale with our fee related earnings margin expanding from 35% to approximately 39% over the past four quarters.”

Common Dividend

Ares declared a quarterly dividend of $0.47 per share of its Class A and non-voting common stock, payable on September 30, 2021 to its Class A and non-voting common stockholders of record at the close of business on September 16, 2021.

Dividend Reinvestment Program

Ares has a Dividend Reinvestment Program for its Class A common stockholders that will be effective for the quarterly dividend on September 30, 2021. American Stock Transfer and Trust Company is engaged to administer the plan on behalf of Ares. Additional information can be located on the Investor Resources section of our website.

Additional Information

Ares issued a full detailed presentation of its second quarter 2021 results, which can be viewed at www.aresmgmt.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled "Second Quarter 2021 Earnings Presentation."

Conference Call and Webcast Information

Ares will host a conference call on July 29, 2021 at 12:00 p.m. (Eastern Time) to discuss second quarter results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at www.aresmgmt.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing (888) 317-6003. International callers can access the conference call by dialing +1 (412) 317-6061. All callers will need to enter the Participant Elite Entry Number 4697983 followed by the # sign and reference “Ares Management Corporation” once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through August 26, 2021 to domestic callers by dialing (877) 344-7529 and to international callers by dialing +1 (412) 317-0088. For all replays, please reference conference number 10156452. An archived replay will also be available through August 26, 2021 on a webcast link located on the Home page of the Investor Resources section of our website.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2021, including the acquisition of Black Creek Group which closed July 1, 2021, Ares Management Corporation's global platform had approximately $262 billion of assets under management, with approximately 2,000 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

Forward-Looking Statements

Statements included herein contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "predicts," "intends," "plans," "estimates," "anticipates," "foresees" or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to the impact of the COVID-19 pandemic and the pandemic's impact on the U.S. and global economy, as well as those described from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. Ares Management Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call, whether as a result of new information, future developments or otherwise, except as required by law.

Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005341/en/

FAQ

What were Ares Management's Q2 2021 earnings per share?

For Q2 2021, Ares Management reported a basic earnings per share of $0.70 and diluted earnings per share of $0.69.

How much capital did Ares Management raise in the second quarter of 2021?

Ares Management raised over $20 billion in capital during the second quarter of 2021.

What is Ares Management's total assets under management as of Q2 2021?

As of Q2 2021, Ares Management's assets under management reached a record $248 billion.

When is Ares Management's quarterly dividend payable?

Ares Management's quarterly dividend of $0.47 per share is payable on September 30, 2021.