Ares Management Corp Quarterly Report for Q1 Ended Mar 31, 2015

Summary

Ares Management L.P. reported solid financial performance for the first quarter of 2015, with total revenues increasing by 36% year-over-year to $181.7 million. This growth was primarily driven by a 22.5% increase in management fees and a significant 147.1% surge in performance fees, indicating strong investment performance across several segments. The company's Private Equity Group saw substantial growth in management fees, partly due to the recent acquisition of EIF, and a significant increase in performance fees, largely from Ares Corporate Opportunities Fund IV, L.P. The Direct Lending Group also experienced growth in management fees, supported by increased capital deployment and higher fees from ARCC. Despite a challenging market environment with increased volatility, Ares Management demonstrated resilience across its diverse business segments, with positive contributions from its Tradable Credit, Direct Lending, Private Equity, and Real Estate groups. Net income attributable to Ares Management, L.P. was $18.5 million, reflecting the consolidation of various funds and non-controlling interests. The company's liquidity remains strong, with $69.4 million in cash and cash equivalents and $970 million in available borrowings under its credit facility as of March 31, 2015. The acquisition of EIF in January 2015 further expanded the company's capabilities in the energy infrastructure sector. Ares Management's strategic focus on diverse investment strategies and robust infrastructure positions it well for continued growth and value creation for its investors.

Key Highlights

• 1Total revenues increased by 36.3% to $181.7 million in Q1 2015 compared to Q1 2014.
• 2Management fees rose by 22.5% to $135.4 million, driven by growth across all segments, notably Private Equity and Direct Lending.
• 3Performance fees significantly increased by 147.1% to $40.1 million, primarily due to strong performance in the Private Equity Group from Ares Corporate Opportunities Fund IV, L.P.
• 4The company completed the acquisition of EIF Management, LLC in January 2015, adding approximately $4.4 billion in AUM and a new energy infrastructure strategy to its Private Equity Group.
• 5Net income attributable to Ares Management, L.P. was $18.5 million, a substantial increase from $0 in the prior year period.
• 6Liquidity remains strong with $69.4 million in cash and cash equivalents and $970 million of available borrowings under its credit facility as of March 31, 2015.
• 7Assets Under Management (AUM) grew to $86.9 billion as of March 31, 2015, up from $81.8 billion at the beginning of the quarter, with a significant portion attributed to new commitments and acquisitions.

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