Summary
Ares Management Corporation (ARES) reported robust financial performance for the first quarter of 2019, with significant year-over-year increases in total revenues and net income, largely driven by strong growth in management fees and a substantial rise in carried interest allocation and incentive fees. The company's assets under management (AUM) also saw a healthy increase, reflecting successful fundraising and capital deployment across its Credit, Private Equity, and Real Estate groups. Despite increased compensation and benefits expenses, the company demonstrated operational efficiency, leading to an 18% increase in Fee Related Earnings (FRE). The company's Credit Group was a key driver of this growth, with substantial increases in both Fee Related Earnings (FRE) and Realized Income (RI). The Private Equity Group also showed strong performance, particularly in realized net performance income, while the Real Estate Group demonstrated steady growth in management fees and FRE. Ares Management's diversified business model and strategic focus on long-term, stable capital sources appear to be yielding positive results, positioning the company well for continued expansion and profitability.
Financial Highlights
24 data points| Revenue | $477.20M |
| Operating Expenses | $369.11M |
| Net Income | $44.95M |
Key Highlights
- 1Total revenues increased by 79% to $477.2 million for the three months ended March 31, 2019, compared to $266.1 million for the same period in 2018, primarily driven by a 79% increase in total revenue.
- 2Net income attributable to Ares Management Corporation Class A common stockholders increased by 11% to $39.5 million, or $0.36 per diluted share, compared to $35.5 million, or $0.28 per diluted share, in the prior year.
- 3Fee Related Earnings (FRE) increased by 18% to $71.3 million for the three months ended March 31, 2019, indicating strong operational performance and growth in recurring revenue streams.
- 4Assets Under Management (AUM) grew to $136.7 billion as of March 31, 2019, an increase from $112.5 billion as of March 31, 2018, demonstrating continued fundraising success and AUM growth across all segments.
- 5The Credit Group showed significant growth, with management fees up 24% to $163.0 million and Fee Related Earnings (FRE) increasing by 20% to $92.2 million, driven by higher ARCC Part I Fees and increased capital deployment.
- 6Carried interest allocation and incentive fees saw a substantial increase, rising by 264% and 232% respectively, reflecting strong investment performance and successful realizations across various funds.