Ares Management Corporation Reports Second Quarter 2024 Results

Rhea-AI Summary

Ares Management (NYSE:ARES) reported strong second quarter 2024 results, with GAAP net income of $94.9 million and earnings per share of $0.43. The company achieved record gross fundraising of $26 billion and its second-highest level of deployment in history. After-tax realized income was $332.0 million, with $0.99 per share. Fee related earnings reached $324.5 million.

CEO Michael Arougheti highlighted the growing interest from institutional and high net worth investors in Ares' private market investment solutions. CFO Jarrod Phillips noted double-digit growth across key financial metrics and a record $120 billion in available capital. Ares declared a quarterly dividend of $0.93 per share, payable on September 30, 2024.

Positive

• Record gross fundraising of $26 billion in Q2 2024
• Second-highest level of deployment in company history
• After-tax realized income of $332.0 million ($0.99 per share)
• Fee related earnings of $324.5 million
• Record available capital of over $120 billion
• Double-digit growth across key financial metrics

Negative

• None.

Insights

Financial Analyst

Ares Management 's Q2 2024 results demonstrate robust performance and growth across key metrics. The company reported $94.9 million in GAAP net income and $332.0 million in after-tax realized income. Notably, fee-related earnings reached $324.5 million, highlighting the firm's strong revenue generation from management fees.

The standout figure is the $26 billion in capital raised during the quarter, marking their highest level of gross fundraising in company history. This exceptional fundraising performance indicates strong investor confidence in Ares' private market investment solutions, particularly among institutional and high-net-worth investors.

With over $120 billion in available capital, Ares is well-positioned to capitalize on investment opportunities in the improving transaction environment. This substantial dry powder suggests potential for significant future earnings growth and deployment capabilities.

The declared quarterly dividend of $0.93 per share represents a commitment to shareholder returns. The implementation of a Dividend Reinvestment Program also provides flexibility for stockholders to reinvest their dividends, potentially compounding their returns over time.

Overall, Ares' Q2 results paint a picture of a company experiencing accelerated growth, strong fundraising capabilities and solid positioning in the private markets landscape. The firm's ability to attract capital and generate fee-related earnings in a challenging market environment is particularly noteworthy.

Market Research Analyst

Ares Management's Q2 2024 results offer intriguing insights into the current state of the alternative asset management industry. The firm's record-breaking fundraising of $26 billion in a single quarter is a strong indicator of the growing appetite for private market investments among both institutional and high-net-worth investors.

This trend aligns with the broader shift we're seeing in the investment landscape, where investors are increasingly allocating capital to alternative assets in search of higher yields and diversification. Ares' success in this environment suggests they've positioned their offerings effectively to meet this demand.

The company's $120 billion in available capital is particularly noteworthy. In an environment where many are concerned about economic uncertainties, this substantial dry powder could provide Ares with a significant competitive advantage. It allows them to be opportunistic in their investments, potentially capitalizing on distressed assets or undervalued opportunities that may arise in various sectors.

The acceleration in investment activity mentioned by the CFO is also telling. It suggests that despite economic headwinds, Ares is finding attractive investment opportunities across its various strategies. This could be a positive sign for the broader private equity and credit markets, indicating that deal flow is improving after a period of relative stagnation.

Lastly, the implementation of a Dividend Reinvestment Program is a strategic move that could help Ares retain capital and potentially increase its assets under management over time, further fueling its growth trajectory.

NEW YORK--(BUSINESS WIRE)-- Ares Management Corporation (NYSE:ARES) today reported its financial results for its second quarter ended June 30, 2024.

GAAP net income attributable to Ares Management Corporation was $94.9 million for the quarter ended June 30, 2024. On a basic and diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.43 for the quarter ended June 30, 2024.

After-tax realized income was $332.0 million for the quarter ended June 30, 2024. After-tax realized income per share of Class A common stock was $0.99 for the quarter ended June 30, 2024. Fee related earnings were $324.5 million for the quarter ended June 30, 2024.

“We generated impressive results in the second quarter, including our highest level of gross fundraising and our second highest level of deployment in our firm’s history,” said Michael Arougheti, Chief Executive Officer and President of Ares. “During the quarter, we raised $26 billion in capital as a growing number of institutional and high net worth investors are finding value in our broad offering of private market investment solutions.”

“In the second quarter, we experienced continued strength in the fundamental performance of our portfolios and double-digit growth across many of our key financial metrics as our investment activity accelerated,” said Jarrod Phillips, Chief Financial Officer of Ares. “With a record amount of available capital at more than $120 billion, we believe that we are well positioned to capitalize on the improving transaction environment and generate additional earnings growth.”

Common Stock Dividend

Ares declared a quarterly dividend of $0.93 per share of its Class A and non-voting common stock, payable on September 30, 2024 to its Class A and non-voting common stockholders of record at the close of business on September 16, 2024.

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, 2024. Equiniti 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 2024 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 2024 Earnings Presentation.”

Conference Call and Webcast Information

Ares will host a conference call on August 2, 2024 at 11:00 a.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 http://www.aresmgmt.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 225-9448. International callers can access the conference call by dialing +1 (203) 518-9708. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARESQ224. For interested parties, an archived replay of the call will be available through September 2, 2024 to domestic callers by dialing +1 (800) 839-4012 and to international callers by dialing +1 (402) 220-2981. An archived replay will also be available through September 2, 2024 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, real estate, private equity 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, 2024, Ares Management Corporation's global platform had over $447 billion of assets under management with more than 2,950 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 forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current views with respect to, among other things, future events, operations and financial performance. You can identify these forward-looking statements 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. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Actual results may vary materially from those indicated in these forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Management Corporation does not undertake any obligation to publicly update or review any forward-looking statement, 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/20240801195055/en/

Investor Relations

Greg Mason

gmason@aresmgmt.com

(800) 340-6597

Carl Drake

cdrake@aresmgmt.com

(800) 340-6597

Cameron Rudd

crudd@aresmgmt.com

(800) 340-6597

Source: Ares Management Corporation

FAQ

What were Ares Management's (ARES) key financial results for Q2 2024?

Ares Management reported GAAP net income of $94.9 million, earnings per share of $0.43, after-tax realized income of $332.0 million ($0.99 per share), and fee related earnings of $324.5 million for Q2 2024.

How much capital did Ares Management (ARES) raise in Q2 2024?

Ares Management raised a record $26 billion in gross fundraising during the second quarter of 2024.

What is the quarterly dividend declared by Ares Management (ARES) for Q2 2024?

Ares Management declared a quarterly dividend of $0.93 per share of its Class A and non-voting common stock, payable on September 30, 2024.

How much available capital does Ares Management (ARES) have as of Q2 2024?

Ares Management reported a record amount of available capital at more than $120 billion as of the second quarter of 2024.