Summary
Ares Management Corporation reported solid financial performance for the first quarter of 2023, with total revenues increasing by 14% year-over-year to $813.4 million. Net income attributable to Ares Management Corporation Class A and non-voting common stockholders surged by 105% to $94.0 million, or $0.49 per diluted share. This growth was driven by a significant increase in management fees, up 26% to $600.5 million, reflecting strong fundraising and capital deployment across its Credit, Private Equity, Real Assets, and Secondaries segments. Despite a decrease in carried interest and incentive fees compared to the prior year, the company demonstrated resilience and effective management of its diverse investment strategies. The company's Assets Under Management (AUM) grew to $360.3 billion, up from $325.0 billion in the prior year's first quarter, highlighting continued investor confidence and the success of its long-term investment focus. The company's Fee Paying Assets Under Management (FPAUM) also saw a healthy increase, reaching $233.9 billion from $199.0 billion year-over-year. This growth underscores the increasing revenue-generating base for Ares. The company's Fee Related Earnings (FRE) increased by 24% to $254.6 million, demonstrating the core profitability of its asset management operations. The company's diversified business segments performed well, with the Credit Group showing particularly strong growth in Fee Related Earnings. The company maintains a robust liquidity position, with $272.2 million in cash and cash equivalents at the end of the quarter.
Financial Highlights
27 data points| Revenue | $813.36M |
| SG&A Expenses | $148.34M |
| Operating Expenses | $628.64M |
| Interest Expense | $24.99M |
| Net Income | $94.04M |
Key Highlights
- 1Total revenues increased 14% year-over-year to $813.4 million.
- 2Net income attributable to Ares Management Corporation Class A and non-voting common stockholders increased 105% to $94.0 million ($0.49 per diluted share).
- 3Management fees increased 26% to $600.5 million, driven by capital deployment and increased AUM.
- 4Fee Related Earnings (FRE) increased 24% to $254.6 million, indicating strong core operational profitability.
- 5Total Assets Under Management (AUM) grew to $360.3 billion from $325.0 billion in the prior year's first quarter.
- 6Fee Paying Assets Under Management (FPAUM) increased to $233.9 billion from $199.0 billion year-over-year.
- 7The Credit Group showed significant growth in Fee Related Earnings, up 34% year-over-year.