Summary
Ares Management Corporation reported a strong second quarter for 2025, driven by significant growth in management fees and a substantial increase in Assets Under Management (AUM). Total revenues increased by 71% year-over-year to $1.35 billion, primarily due to a 25% rise in management fees, bolstered by strong performance across its Credit and Real Assets segments. The acquisition of GCP International in March 2025 significantly contributed to the Real Assets Group's revenue growth, adding new capabilities and geographic reach. Despite increased operating expenses, largely due to integration costs and equity-based compensation, the company's Fee Related Earnings (FRE) saw a robust 26% increase, indicating the core profitability of its operations. Net income attributable to Ares Management Corporation Class A and non-voting common stockholders rose by 18% to $111.75 million, reflecting disciplined cost management and successful integration of recent acquisitions. The company's balance sheet remains strong with total assets growing to $27.26 billion, supported by continued fundraising and strategic capital deployment.
Financial Highlights
26 data points| Revenue | $1.35B |
| SG&A Expenses | $232.16M |
| Operating Expenses | $1.14B |
| Net Income | $137.06M |
Key Highlights
- 1Total revenues surged by 71% to $1.35 billion for the three months ended June 30, 2025, compared to the prior year period, driven by strong growth across all segments.
- 2Management fees increased by 25% year-over-year to $900.6 million, primarily due to growth in the Credit and Real Assets segments, with the GCP Acquisition significantly boosting the latter.
- 3Fee Related Earnings (FRE) increased by 26% to $409.1 million for the three months ended June 30, 2025, demonstrating the recurring and stable profitability of the core business.
- 4Net income attributable to Ares Management Corporation Class A and non-voting common stockholders increased by 18% to $111.75 million for the quarter, reflecting improved operational performance.
- 5Assets Under Management (AUM) grew significantly, reaching $572.4 billion as of June 30, 2025, an increase of $125.1 billion from the previous year, driven by strong fundraising and capital deployment.
- 6The company completed the acquisition of GCP International on March 1, 2025, which is expected to add complementary real estate and digital infrastructure investment capabilities and expand geographic presence, contributing $67.6 million in additional management fees in the current quarter.
- 7Total expenses increased by 102% to $1.14 billion, primarily due to higher compensation and benefits, including integration costs and equity-based compensation related to acquisitions, and increased general, administrative, and other expenses.