10-KPeriod: FY2022

Ares Management Corp Annual Report, Year Ended Dec 31, 2022

Filed February 24, 2023For Securities:ARESARES-PB

Summary

Ares Management Corporation's 2022 10-K filing highlights a robust year characterized by significant AUM growth, reaching $352.0 billion. The company successfully raised $56.8 billion in gross new capital across its diverse investment strategies, with a strong emphasis on existing investors. The firm's integrated platform, encompassing Credit, Private Equity, Real Assets, Secondaries, and Strategic Initiatives, demonstrates broad expertise and a disciplined investment approach. Ares continues to prioritize talent development, a collaborative culture, and ESG integration into its business practices. While the company experienced a decrease in net income attributable to Class A and non-voting common stockholders in 2022 compared to 2021, this was largely driven by a significant decline in carried interest allocation due to market conditions impacting performance income. Management fees, however, showed strong growth, reflecting the expansion of AUM and successful fundraising efforts.

Financial Highlights

29 data points
Beta

Revenue

$3.06B

Net Income

$167.54M

5.5% Net Margin

Total Assets

$22.00B

Cash & Equivalents

$389.99M

Free Cash Flow

-$734.11M

Financial Statements
Beta
Revenue$3.06B
SG&A Expenses$695.26M
Operating Expenses$2.75B
Interest Expense$71.36M
Net Income$167.54M

Key Highlights

  • 1Total Assets Under Management (AUM) grew to $352.0 billion as of December 31, 2022.
  • 2Gross new capital raised in 2022 was $56.8 billion, with 92% coming from existing institutional investors.
  • 3The company's integrated investment platform spans Credit, Private Equity, Real Assets, Secondaries, and Strategic Initiatives.
  • 4Management fees increased by 33% in 2022 compared to 2021, driven by AUM growth and strategic acquisitions.
  • 5Carried interest allocation significantly decreased by 78% in 2022 compared to 2021, primarily due to lower performance income from market conditions.
  • 6Fee Related Earnings (FRE) increased by 40% in 2022 to $994.35 million, reflecting growth in management fees and fee-related performance revenues.
  • 7Ares Management Corporation continues to emphasize its commitment to diversity, equity, and inclusion (DEI) and ESG initiatives across its operations and investment processes.

Frequently Asked Questions

As of December 31, 2022, Ares Management Corporation's total Assets Under Management (AUM) stood at $352.0 billion.

In 2022, Ares Management Corporation raised $56.8 billion in gross new capital across more than 135 investment vehicles, with a significant portion (92%) coming from existing institutional investors, demonstrating strong client retention and satisfaction.

The decrease in net income attributable to Class A and non-voting common stockholders in 2022 was primarily due to a significant decline in carried interest allocation, which was impacted by market conditions that affected performance income. This decline was partially offset by growth in management fees.

Ares Management Corporation views its people and culture as critical strategic drivers. The company invests heavily in talent management, including recruiting, onboarding, mentorship, training, and employee engagement programs, aiming to create a welcoming and inclusive work environment.