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Overview of Ares Management Corporation
Ares Management Corporation (ARES) is a globally recognized alternative asset manager, known for its diversified investment approach. The company provides investors with a spectrum of investment solutions, covering credit strategies, private equity, real estate, and secondary market opportunities. Its disciplined investment philosophy and risk-adjusted strategies have consistently enabled it to navigate market cycles, making it a notable name in the alternative investments arena.
Core Business Segments
Ares Management operates through several distinct but integrated investment groups. Each group leverages its specialized expertise while benefiting from the overarching collaborative structure:
- Credit Group: Specializes in a broad range of credit strategies including both liquid and illiquid markets. This segment is crucial for generating revenue, focusing on providing flexible capital through direct lending and other credit facilities.
- Private Equity Group: Manages a variety of corporate private equity investments, infrastructure projects, and special opportunities. Its strategies involve hands-on involvement in growth-oriented companies and operational transformations.
- Real Assets Group: Focuses on comprehensive equity and debt strategies in the real estate and infrastructure sectors. This group is instrumental in creating value through diversified real asset investments.
- Secondaries Group: Engages in investments within secondary markets across multiple alternative asset classes, thereby offering liquidity and strategic repositioning across diverse markets.
- Others: This includes a range of complementary investment strategies that support the company’s holistic approach to alternative investments.
Investment Philosophy and Market Approach
Since its inception in 1997, Ares Management has adhered to a disciplined investment philosophy centered on delivering strong, risk-adjusted returns. The company emphasizes rigorous due diligence, a robust risk management framework, and a deep understanding of market dynamics. This approach allows Ares to capitalize on opportunities across economic cycles while maintaining a diversified risk profile.
Global Presence and Operational Excellence
The company has established a significant global footprint, operating across North America, Europe, Asia Pacific, and other key markets. This expansive presence is supported by a network of offices and a team of experienced professionals who are adept at navigating complex financial landscapes. Its ability to integrate localized market insights with global investment strategies is a testament to its operational excellence.
Competitive Landscape and Differentiation
Ares Management Corporation distinguishes itself through a holistic integration of its investment groups. By sharing research, market insights, and capital across its various segments, the company is positioned to offer innovative and flexible investment strategies that address the needs of diverse investors. This unique collaborative framework not only enhances its competitive edge but also reinforces its commitment to delivering consistent investment performance.
Strategic Value Proposition
The primary value of Ares Management lies in its ability to provide comprehensive alternative investment solutions. The synergy among its credit, private equity, real assets, and secondaries groups creates an environment where cross-segment expertise results in optimized capital allocation. Investors benefit from a structure that prioritizes risk management, flexibility, and long-term value creation within a competitive global marketplace.
Industry-Specific Insights
For industry professionals and investors, Ares offers an exemplary model of diversified asset management. The application of advanced credit analysis, strategic private equity investments, and real asset financing methodologies demonstrates a deep mastery of the alternative investments space. These characteristics, combined with an extensive global network, attest to the company's capability in adapting to varied economic conditions while maintaining operational consistency.
Conclusion
In summary, Ares Management Corporation exemplifies a robust and multi-dimensional approach to alternative asset management. Its disciplined investment strategy, combined with a diversified operational framework and comprehensive market insights, positions it as a significant player in the global investment landscape. The company’s integration of complementary strategies across its investment groups enables it to effectively manage market risks and seize value creation opportunities throughout economic cycles.
Ares Capital (NASDAQ: ARCC) has disclosed its tax treatment for 2024 common stock distributions. The company will distribute $1.92 per share throughout 2024, paid in four quarterly installments of $0.48 each on March 29, June 28, September 30, and December 30.
Of the total distributions, 83.66% ($1.606291 per share) is classified as ordinary income, while 16.34% ($0.313709 per share) represents long-term capital gains. The company has designated these distributions as qualified dividend income and eligible for the dividends received deduction for U.S. domestic corporations. Additionally, specific percentages of each dividend payment are designated as interest-related dividends under IRC section 871(k).
ID.me, a digital identity wallet provider, has secured a $275 million credit facility from Ares Management (NYSE: ARES), which also plans to make a substantial equity investment in the company. ID.me has demonstrated significant growth with over 139 million users in its digital wallet, including 65 million users verified to federal IAL2 standards. The company's revenue has grown over 450% from 2020 through 2024.
ID.me's platform is uniquely positioned as the only digital wallet meeting federal government standards for secure login and multi-factor authentication, offering online, video chat, and in-person identity verification options. The company serves 19 federal agencies, 44 state government agencies, 66 healthcare organizations, and over 600 consumer brands. The new financing will support ID.me's continued growth and path to sustainable profitability.
Form Technologies, a global leader in precision-engineered components, announced its acquisition by Ares Management funds. The transaction includes approximately $304 million in new equity capital, consisting of $154 million in common equity from investors including Ares, D. E. Shaw group and Onex Credit, plus $150 million in preferred equity from D. E. Shaw group and Ripple Industries.
The company operates 32 facilities across 22 countries, specializing in die casting, investment casting, and metal injection molding. Form Technologies serves nearly 2,000 customers across automotive, aerospace, healthcare, and enterprise technology sectors. The new capital will support investment in operational capabilities and accelerate commercial strategy, following a platform-wide strategic repositioning over the past two years.
Ares Management (NYSE: ARES) has announced the final closing of its sixth European direct lending fund, Ares Capital Europe VI (ACE VI), raising €17.1 billion in commitments, exceeding its €15 billion target and reaching its hard cap. Including related vehicles and anticipated leverage, the total available capital for the European Direct Lending strategy is expected to be approximately €30 billion.
The fund size represents a 53% increase compared to its predecessor fund, ACE V, which closed at €11.1 billion in 2021. Combined with the previously announced $33.6 billion raised for Senior Direct Lending Fund III, Ares has secured approximately $64.5 billion across both strategies.
ACE VI has already deployed €6.4 billion across over 50 investments. The fund targets senior-secured positions in high-quality European companies with EBITDA exceeding €10 million. Ares' European Direct Lending strategy manages over $74 billion in assets and has completed nearly 380 investments totaling over €70 billion since inception.
Ares Management (NYSE: ARES) has promoted Kevin Alexander to Co-Head of Alternative Credit, joining current Co-Heads Keith Ashton and Joel Holsinger. Alexander, who joined Ares in 2019, has been instrumental in the strategy's investment origination and structuring efforts. He brings over 27 years of industry experience, including 20 years at Natixis CIB Americas where he served as Deputy CEO.
The Alternative Credit strategy at Ares is a major player in asset-based credit with $43.1 billion in assets under management as of September 30, 2024. The team focuses on investments across various sectors including specialty finance, lender finance, equipment leasing, structured products, and net lease. The strategy includes the Pathfinder family of funds, where portfolio managers commit to donate a portion of performance fees to global health and education charities.
Ares Management (ARES) has announced it will release its financial results for the fourth quarter and full year 2024 on Wednesday, February 5, 2025, before the NYSE opening. The company will host a conference call and webcast at 10:00 a.m. Eastern Time on the same day to discuss the results.
Investors can join via phone or webcast through the company's website. Domestic callers should dial +1 (800) 343-5172, while international callers can use +1 (203) 518-9856, referencing conference ID ARESQ424. Participants are advised to dial in 10-15 minutes early. An archived replay will be available until March 5, 2025, accessible via phone and website.
Ares Management (NYSE: ARES) has secured over $2.3 billion in equity commitments to support Aspida Holdings , a life insurance and annuity company. Combined with a recent $700 million credit facilities offering, total capital raised exceeds $3 billion.
Aspida has grown to over $19 billion in total assets as of September 30, 2024, leveraging its technology platform for annuity and reinsurance clients. The company maintains an open architecture sub-advisor selection, with Ares Insurance Solutions (AIS) managing its assets. The portfolio is over 90% investment grade and matched to liabilities.
The funding aims to capitalize on increasing retirement solution demands driven by increased life expectancy, rising healthcare costs, and elevated expenses. Aspida's platform combines spread-based business model and digital capabilities with AIS's asset origination and investment expertise.
Ares Capital (ARCC) has priced a $1 billion public offering of unsecured notes with a 5.800% interest rate, maturing on March 8, 2032. The notes can be redeemed at any time at par plus a make-whole premium. The offering, led by multiple joint book-running managers including BofA Securities, J.P. Morgan Securities, and SMBC Nikko Securities, is expected to close on January 8, 2025.
The company plans to use the net proceeds to repay existing debt facilities, with the option to reborrow for general corporate purposes, including portfolio company investments. The offering is subject to customary closing conditions and is being made through a prospectus supplement and accompanying prospectus filed with the SEC.
Ares Management (NYSE:ARES) has launched the Ares Private Markets Fund (AUT) in Australia, providing wholesale clients access to their private equity secondaries strategy through APMF. The fund, which has grown to approximately A$3 billion in AUM since its 2022 launch, focuses on private equity fund stakes in North America and Europe.
The expansion builds on Ares' success in the Australia/New Zealand region, where they have raised over A$1.5 billion since 2020 through their credit strategies products. The APMF offers quarterly liquidity and enhanced transparency, leveraging the Ares Secondaries Group's 30+ years of experience in managing secondary investments.
Ares Management has announced that Michael Arougheti, the company's Co-Founder, CEO and President, will deliver a presentation at the Goldman Sachs Financial Services Conference on Wednesday, December 11, 2024, at 9:20am ET.
The presentation will be accessible through a live audio webcast in the Investor Resources section of Ares' website. For those who cannot attend the live broadcast, a replay will be made available on the company's website after the event.
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