Summary
Ares Management Corporation (ARES) reported a strong second quarter of 2023, driven by significant growth in management fees and a substantial increase in carried interest allocation. Total revenues surged by 82% year-over-year to $1.09 billion, primarily fueled by a 153% increase in carried interest allocation, reaching $418.5 million. This growth reflects the strong performance of their underlying investments across various segments. Fee Related Earnings (FRE) saw a healthy increase of 21% to $266.1 million, indicating the company's ability to generate consistent, recurring revenue streams that cover its operational expenses. The Credit Group, in particular, demonstrated robust FRE growth of 26%, driven by strong management fee contributions from its direct lending and alternative credit strategies. Overall, the company continues to exhibit effective management of its assets under management (AUM), with AUM growing to $377.6 billion, up from $334.3 billion in the prior year period, demonstrating successful fundraising and capital deployment.
Financial Highlights
25 data points| Revenue | $1.09B |
| SG&A Expenses | $141.15M |
| Operating Expenses | $837.74M |
| Interest Expense | $25.84M |
| Net Income | $144.51M |
Key Highlights
- 1Total revenues increased by 82% year-over-year to $1.09 billion, driven by strong performance across all segments.
- 2Carried interest allocation saw a significant surge of 153% year-over-year, reaching $418.5 million, reflecting positive investment performance.
- 3Fee Related Earnings (FRE) grew by 21% year-over-year to $266.1 million, highlighting the company's stable, recurring revenue generation capabilities.
- 4Assets Under Management (AUM) increased to $377.6 billion from $334.3 billion in the prior year period, indicating successful fundraising and capital deployment.
- 5The Credit Group demonstrated strong performance, with Fee Related Earnings increasing by 26% year-over-year.
- 6Net income attributable to Ares Management Corporation Class A and non-voting common stockholders was $144.5 million, a significant increase from $39.7 million in the prior year period.
- 7The company announced a definitive agreement to acquire 100% of Crescent Point Capital, a move expected to further expand its Asia-focused private equity capabilities.