Q1 2024 Ares Management Corp Earnings Call Transcript
Key Points
- Ares Management Corp (ARES) reported strong first quarter results with double-digit year-over-year growth in key financial metrics, including a 19% growth in Assets Under Management (AUM).
- The company declared a second quarter common dividend of $0.93 per share, representing a 21% increase over the same quarter a year ago.
- Ares Management Corp (ARES) experienced robust fundraising, raising over $17 billion in gross capital during the quarter.
- The firm's net accrued performance income balance increased by more than $55 million year-over-year, despite realizing $136 million in net performance income over the past 12 months.
- Ares Management Corp (ARES) is well-positioned for future growth with a record amount of dry powder and 28% growth in AUM not yet paying fees.
- First quarter realizations were seasonally light, leading to realized income being comprised entirely of more stable fee-related earnings.
- The current geopolitical risks, sustained inflationary data, and high interest rates could pose challenges to the financial markets and Ares Management Corp (ARES)'s operations.
- Despite strong gross deployment activity, the net deployment was more muted, which slowed growth in fee-paying AUM.
- The company's European-style funds' realizations are more seasonal and concentrated in the fourth and second quarters, which could lead to variability in performance income.
- Ares Management Corp (ARES) faces intense competition in the syndicated loan market, which could impact transaction volumes and profitability.
Welcome to the Ares Management Corporation's First Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded on Thursday, May 2, 2024.
I would now like to turn the call over to Greg Mason, Co-Head of Public Markets Investor Relations for Ares Management. Please go ahead, sir.
Good morning, and thank you for joining us today for our first quarter conference call. I'm joined today by Michael Arougheti, our Chief Executive Officer; and Jarrod Phillips, our Chief Financial Officer. We also have a number of executives with us today who will be available during the Q&A session.
Before we begin, I want to remind you that comments made during this call contain forward-looking statements and are subject to risks and uncertainties, including those identified in our risk factors in our SEC filings. Our actual results could differ materially, and we undertake no obligation to update any such forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
