What was the financial performance of Ares Management in Q1 2014?

In the first quarter of 2014, Ares Management reported total revenues of $133.6 million, an increase from $107.5 million in the prior year's quarter. However, net income attributable to controlling interests decreased to $42.8 million from $61.9 million year-over-year. This decrease was influenced by a rise in net income attributable to non-controlling interests in consolidated funds, which increased from $148.6 million to $225.2 million.

What are the key business segments of Ares Management, and how did they perform?

Ares operates through four main segments: Tradable Credit, Direct Lending, Private Equity, and Real Estate. Management fees increased across most segments, notably in Direct Lending and Real Estate, driven by capital raises and acquisitions. However, performance fees decreased, particularly in the Tradable Credit Group, impacting overall segment performance. The company also reports on its Operations Management Group (OMG), which incurred a net loss but is considered essential for supporting business operations.

What were the significant corporate events during or shortly after this reporting period?

The most significant event was the company's Initial Public Offering (IPO) on May 7, 2014, which raised approximately $209.2 million in net proceeds. This was preceded by a series of reorganization transactions to facilitate the IPO. Additionally, Ares completed the acquisition of Keltic Financial Services LLC in June 2014, expanding its commercial finance capabilities.

How did the company manage its liquidity and capital resources?

Ares Management's liquidity was primarily supported by cash flows from operations, realizations from investments, and its credit facilities. The company had $36.6 million in cash and cash equivalents as of March 31, 2014. Post-IPO, the company entered into a new $1.03 billion revolving credit facility, replacing the previous one, to support working capital, growth initiatives, and debt repayment. Distributions to owners and capital commitments to funds are key uses of cash.

ARES/ARES-PB 10-Q Quarterly Report Q1 FY2014

Summary

Ares Management, L.P.'s Q1 2014 Form 10-Q highlights significant financial activities leading up to its Initial Public Offering (IPO) on May 7, 2014. The report details the company's structure and financial performance as a predecessor entity. Key financial metrics like total revenues and net income attributable to controlling interests show growth compared to the prior year's quarter. The company is actively managing its Assets Under Management (AUM) across its four distinct investment groups: Tradable Credit, Direct Lending, Private Equity, and Real Estate. The financial statements reflect the consolidation of certain funds managed by Ares, which significantly increases reported assets, liabilities, revenues, and expenses, though these do not impact net income attributable to controlling interests. The report also details various non-GAAP financial measures used by management, such as Economic Net Income (ENI), Fee Related Earnings (FRE), Performance Related Earnings (PRE), and Distributable Earnings (DE), to assess operational performance and segment results. Post-quarter, significant corporate actions occurred, including the IPO which raised approximately $209.2 million in net proceeds, and subsequent amendments to credit facilities. These events are crucial for understanding the company's financial health and strategic direction as it transitions into a publicly traded entity.

Financial Highlights

8 data points

Beta

Revenue

$133.63M

Total Assets

$22.04B

Cash & Equivalents

$350.00

Financial Statements

Beta

Revenue	$133.63M
Operating Expenses	$184.13M

Key Highlights

1Ares Management, L.P. reported total revenues of $133.6 million for the three months ended March 31, 2014, an increase from $107.5 million in the same period of 2013.
2Net income attributable to controlling interests decreased to $42.8 million for Q1 2014 from $61.9 million for Q1 2013, primarily due to increased non-controlling interests in consolidated funds.
3Total Assets Under Management (AUM) grew to $77.0 billion as of March 31, 2014, from $60.7 billion as of March 31, 2013.
4Fee Earning AUM increased to $57.2 billion as of March 31, 2014, from $47.6 billion as of March 31, 2013.
5The company completed its Initial Public Offering (IPO) on May 7, 2014, issuing 11,363,636 common units at $19.00 per unit, raising approximately $209.2 million in net proceeds.
6Significant increases in management fees were noted in the Direct Lending Group ($14.5 million) and Real Estate Group ($14.3 million), largely due to capital raises and acquisitions.
7Expenses, particularly Compensation and Benefits and General, Administrative and Other Expenses, increased significantly, partly due to headcount growth, acquisitions (AREA), and preparations for the IPO and public company status.

Ares Management Corp Quarterly Report for Q1 Ended Mar 31, 2014

Summary

Financial Highlights

Key Highlights

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