Ares(US:ARES)2024-05-02 01:54Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $428.3 billion, a 19% increase from the previous year[15] - Total Fee Paying AUM (FPAUM) was $267.1 billion, reflecting a 14% year-over-year growth[15] - AUM Not Yet Paying Fees rose to $77.4 billion, a 28% increase, primarily due to commitments in direct lending and alternative credit strategies[26] - AUM reached $308.6 billion in Q1-24, a 24% increase from $249.1 billion in Q1-23[51] - Total AUM increased by 24% from Q1-23, driven by commitments to U.S. direct lending funds[77] - AUM for the Private Equity Group was $24.5 billion, an increase of 19% compared to Q1-23[57] - AUM for the Secondaries Group was $25.6 billion, an increase of 11% compared to Q1-23[59] - The Secondaries Group AUM increased by 57% from Q1-23, primarily driven by additional managed assets from the insurance platform[77] - The Corporate Private Equity segment had an AUM of $21.2 billion, which is 87% of its total strategy[93] Financial Performance - GAAP net income attributable to Ares Management Corporation was $73.0 million, with basic and diluted earnings per share of $0.80[4] - Fee Related Earnings totaled $301.7 million, with realized income of $289.2 million[4] - Fee Related Earnings rose by 21% in Q1-24 to $352.4 million, compared to $291.6 million in Q1-23[51] - Realized Income increased by 21% in Q1-24 to $356.0 million, compared to $293.2 million in Q1-23[51] - Management and other fees increased by 18% in Q1-24 to $520.9 million compared to $439.6 million in Q1-23[51] - Fee Related Earnings increased by 68% for Q1-24 compared to Q1-23, primarily driven by an increase in management fees[56] - Realized Income increased by 18% for Q1-24 compared to Q1-23, primarily driven by the increase in Fee Related Earnings and realized net performance income from ACOF IV[56] Capital Deployment - Gross new capital raised amounted to $17.4 billion, with net inflows of $14.4 billion[4] - Total Gross Capital Deployment in Q1-24 was $18.6 billion, up from $12.2 billion in Q1-23, representing a 52% increase[32] - Capital deployment in the Credit Group totaled $16.4 billion in Q1-24, primarily driven by $9.4 billion in U.S. direct lending[50] - Capital deployment in the Real Assets Group totaled $1.0 billion in Q1-24, primarily driven by $0.4 billion in infrastructure debt[53] - Capital deployment totaled $0.1 billion for Q1-24, primarily driven by corporate private equity[56] - Net new debt commitments for the Credit Group in Q1-24 were $19.59 billion, a substantial increase from previous periods[77] Management Fees and Performance Metrics - Management fees in the Credit Group increased by 18% for Q1-24, primarily due to deployment within U.S. and European alternative credit[50] - Credit Group management fees for Q1-24 were $510.97 million, up from $430.47 million in Q1-23, representing an increase of 18.7%[73] - Total management fees for the Secondaries Group in Q1-24 were $44.42 million, compared to $39.86 million in Q1-23, indicating a growth of 11.5%[73] - Part I Fees are classified as management fees and are predictable and recurring, generally cash-settled each quarter[122] - Part II Fees are paid in arrears and are contingent on cumulative realized capital gains exceeding cumulative unrealized capital depreciation[122] - Performance Income is based on the performance of a fund, adhering to general hurdle rates defined in investment management agreements[122] Investment Strategies and Returns - The company reported a net allocation among investment strategies of $4.16 million in Q1-24, indicating strategic rebalancing[77] - The company reported net allocations among investment strategies of $4.433 billion in Q1-24[90] - The gross multiple of invested capital (MoIC) for ACOF V is 1.5x, while ACOF VI reports a MoIC of 1.4x, indicating strong performance metrics[104] - The internal rate of return (IRR) for ACOF VI stands at 23.6% gross and 16.7% net, showcasing robust investment returns[104] - The gross and net IRR for the single investor U.S. Dollar parallel fund are 9.9% and 7.6%, respectively[106] - The gross and net IRR for the Euro unhedged parallel fund are 1.9% and 9.0%, respectively[106] - The gross and net IRR for the GBP hedged parallel fund are 12.0% and 8.9%, respectively[106] - The gross and net IRR for the Yen hedged parallel fund are 11.0% and 7.7%, respectively[106] Unrealized and Realized Values - Realized value represents the sum of all cash distributions to limited partners, excluding tax and incentive distributions[108] - Unrealized value represents the limited partners' share of the fund's NAV reduced by the accrued incentive allocation[108] - The unrealized values for the funds are subject to market conditions and may not be realized, emphasizing the importance of ongoing market analysis[105] - The gross and net Multiple of Capital (MoC) for the U.S. Dollar denominated parallel fund EF IV are 1.6x and 1.4x, respectively[117] - The gross and net Internal Rate of Return (IRR) for the U.S. Dollar denominated parallel fund EF IV are 14% and 11.9%, respectively[117] Other Financial Information - The balance sheet included $346.3 million in cash and cash equivalents and $3,046.2 million in debt obligations as of March 31, 2024[67] - Perpetual Capital as of March 31, 2024, was $109.2 billion, an increase of 14% from the prior year[16] - 88% of AUM was from perpetual capital or long-dated funds, contributing to 95% of management fees[20] - After-tax RI is calculated by subtracting the current income tax provision from RI, reflecting a more accurate distribution to stockholders[123] - The Operations Management Group (OMG) supports reportable segments by providing infrastructure and administrative services, with revenues and expenses not allocated to reportable segments[122]