01—Abstract
Summary
Summary of the 10-Q filed November 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Ares Management Corporation (ARES) reported solid financial results for the nine months ended September 30, 2024.
Total revenues increased to $2.63 billiona, up 2% year-over-year, driven by strong growth in management fees, which rose 17% to $2.18 billion. This growth was primarily attributed to increased fee-paying assets under management (FPAUM) across its Credit, Real Assets, and Secondaries segments, supported by successful capital deployment and new fund launches. Net income attributable to Ares Management Corporation common stockholders saw a slight decrease of 5% to $286.4 million for the nine-month period, influenced by higher operating expenses, particularly in compensation and benefits, and acquisition-related costs.
Despite these increases in expenses, the company's Fee Related Earnings (FRE) and Realized Income (RI) demonstrated robust growth, indicating the strength of its core recurring revenue streams and operational efficiency. The company also reported significant growth in Assets Under Management (AUM) to $463.8 billionb, up 17.4% year-over-year, highlighting continued fundraising success and investor confidence.
The company is actively pursuing strategic growth, with significant acquisitions announced in September and October 2024, including Walton Street Capital Mexico and GLP Capital Partners' international business, which are expected to enhance its global real estate and alternative asset management capabilities. These strategic moves, coupled with consistent growth in its core segments and a strong focus on generating Fee Related Earnings, position Ares Management for continued expansion and value creation for its shareholders.
02—Key points
Key Highlights
- Total revenues for the first nine months of 2024 increased by 2% year-over-year to $2.63 billion.
- Management fees grew by 17% to $2.18 billion, driven by increased FPAUM across key segments.
- Assets Under Management (AUM) reached $463.8 billion as of September 30, 2024, a 17.4% increase year-over-year.
- Fee Related Earnings (FRE) increased by 21% to $965.5 million for the first nine months of 2024.
- Realized Income (RI) grew by 19% to $991.1 million for the first nine months of 2024.
- Net income attributable to Ares Management Corporation Class A and non-voting common stockholders decreased by 5% to $286.4 million for the nine months ended September 30, 2024, due to higher operating expenses.
- Significant strategic acquisitions were announced in the latter part of Q3 2024, signaling continued growth ambitions.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 8, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.13B$671.25M | +68.3% |
| SG&A Expenses | $197.02M$211.84M | −7.0% |
| Operating Expenses | $854.89M$560.96M | +52.4% |
| Net Income | $118.46M$61.82M | +91.6% |
05—Questions
Frequently Asked Questions
What was Ares Management's total revenue for the nine months ended September 30, 2024?
Ares Management's total revenue for the nine months ended September 30, 2024, was $2.63 billion, an increase of 2% compared to the same period in 2023.
How did Ares Management's Assets Under Management (AUM) perform?
Ares Management's AUM grew to $463.8 billion as of September 30, 2024, representing a 17.4% increase year-over-year, indicating strong fundraising and deployment of capital.
What is the outlook for Ares Management's Fee Related Earnings (FRE)?
The company reported a 21% increase in FRE to $965.5 million for the first nine months of 2024, demonstrating the sustained growth and stability of its recurring management fee revenue streams.
Are there any significant upcoming events or acquisitions mentioned in the filing?
Yes, Ares Management announced definitive agreements to acquire Walton Street Capital Mexico in September 2024 and GLP Capital Partners' international business in October 2024, which are expected to further expand its real estate and alternative asset management platform.
06—Continue