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Ares Management Corp 8-K Report, Financial Results (Aug 1, 2025)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed August 1, 2025
Period End
August 1, 2025
Securities
ARESARES-PB
In the record · 2016–202610-K1110-Q328-K128

ARES filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 128 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Dec ’17Dec ’17
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Material agreement8-K · Apr ’22Apr ’22
  4. Material agreement8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.

Ares Management (ARES) reported strong second-quarter 2025 results, with GAAP net income attributable to Ares Management Corporation of $137.1 milliona, or $0.46 per share, and After-tax Realized Income of $367.9 million, or $1.03 per Class A share, up 11% year over year.

Fee Related Earnings rose 26% to $409.1 millionb, with a 41.2% margin. Management fees reached $900.6 million, and total AUM grew 28% year over year to $572.4 billion, while fee-paying AUM rose 27% to $349.6 billion. The growth was driven by the GCP International acquisition, record-level market appreciation, and strong fundraising.

Gross capital raised was $26.2 billionc, with net inflows of $25.1 billion, and management said it is on pace to meet or exceed its prior annual fundraising record. Available capital stood at $150.8 billion, and AUM not yet paying fees was $104.8 billion, including $86.8 billion available for future deployment that management estimates could generate roughly $822.7 million in potential incremental annual management fees. Capital deployment was $26.9 billion.

Perpetual capital reached $166.6 billiond, and 91% of management fees came from perpetual or long-dated funds. The company declared a quarterly Class A dividend of $1.12 per share, payable September 30, 2025, and a Series B mandatory convertible preferred dividend of $0.84375 per share.

Investors should note that GAAP results were more volatile than the non-GAAP measures, with a large carried interest allocation of $323.9 million in the quarter, while the Series B preferred dividends reduced net income available to Class A holders. Fee Related Performance Revenues fell 23% year over year to $16.7 million, and realized net performance income declined 59%.

02—Key points

Key Highlights

  1. GAAP net income attributable to Ares Management of $137.1M ($0.46 per share), versus $94.9M ($0.43) in Q2 2024.
  2. After-tax Realized Income of $367.9M, or $1.03 per Class A share, up 11% year over year (the per-share figure is up 4%).
  3. Fee Related Earnings of $409.1M, up 26% year over year, with a 41.2% margin; management fees of $900.6M, up 25% year over year.
  4. AUM of $572.4B, up 28% year over year, including $48.6B from the GCP International acquisition; fee-paying AUM of $349.6B, up 27%.
  5. Gross capital raised of $26.2B with net inflows of $25.1B; available capital of $150.8B (up 24%) and $86.8B of AUM available for future deployment.
  6. Quarterly dividend of $1.12 per Class A share payable September 30, 2025 (record date September 16), plus a $0.84375 Series B preferred dividend payable October 1, 2025.

03—Questions

Frequently Asked Questions

  1. How did Ares perform in Q2 2025 on a core earnings basis?

    Ares grew Fee Related Earnings 26% to $409.1 million, driven by management fee growth of 25% and the first full quarter of GCP International. After-tax Realized Income rose 11% to $367.9 million, and per-share after-tax Realized Income of $1.03 was up 4%, reflecting dilution from the increased share count, including the Series B preferred conversion.

  2. What drove the growth in assets under management?

    AUM rose $125.2 billion year over year to $572.4 billion. Drivers included $35.8 billion from drawdown funds (notably SDL III, ACE VI, and the third opportunistic credit fund), $26.5 billion from perpetual wealth vehicles and ARCC, $48.6 billion from the GCP International acquisition, and $2.2 billion from insurance-platform managed assets.

  3. What are the risks in the quarter's results?

    GAAP results are more volatile than the non-GAAP measures. Net income attributable to Ares Management was affected by a large carried interest allocation of $323.9 million and by $25.3 million of Series B preferred dividends. Fee Related Performance Revenues fell 23% and realized net performance income fell 59%, reducing the contribution from performance-based income. Interest expense also rose, and the company's Q2 results depend on continued fundraising and deployment.

  4. What does the dividend announcement mean for investors?

    Ares declared a $1.12 quarterly dividend per Class A share, payable September 30, 2025 to holders of record on September 16, 2025. The company also declared a $0.84375 quarterly dividend on its 6.75% Series B mandatory convertible preferred stock, payable October 1, 2025. The Class A dividend is set in line with expected annual Fee Related Earnings after taxes, and the company's dividend reinvestment program takes effect for the September 30 payment.

04—Continue

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