Ares Management Corporation · NYSE:ARES
Ares Management — Q2 2025 Earnings Presentation
47 slides from Ares Management's earnings presentation, Aug 1, 2025
Slide 1: Ares Management Corporation Reports Second Quarter 2025 Results
Ares Management Corporation Reports Second Quarter 2025 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its second quarter ended June 30, 2025. GAAP net income attributable to Ares Management Corporation was $137.1 million for the quarter ended June
Slide 2: Conference Call and Webcast Information
Conference Call and Webcast Information Ares will host a conference call on August 1, 2025 at 11:00 a.m. (Eastern Time) to discuss second quarter results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home p
Slide 3: Earnings Presentation Second Quarter 2025
Earnings Presentation Second Quarter 2025
Slide 4: Important Notice
Important Notice This presentation is prepared for Ares Management Corporation (“Aresˮ) (NYSE: ARES) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares and certain of it
Slide 5: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights • GAAP net income attributable to Ares Management Corporation of $137.1 million • GAAP basic and diluted earnings per share of Class A and non-voting common stock of $0.46 • GAAP management fees of $900.6 million Q2-25 • Unconsolidated management fees and other fees of
Slide 6: GAAP Statements of Operations
GAAP Statements of Operations Three months ended June 30, Six months ended June 30, $ in thousands, except share data 2025 2024 2025 2024 Revenues Management fees $900,622 $721,681 $1,717,609 $1,409,373 Carried interest allocation 323,901 (51,167) 483,909 (83,645) Incentive fees 23,079 47,734 55,127
Slide 7: RI and Other Measures Financial Summary
RI and Other Measures Financial Summary Three months ended June 30, Six months ended June 30, $ in thousands, except share data (and as otherwise noted) 2025 2024 % Change 2025 2024 % Change Management fees(1) $900,285 $726,111 24% $1,718,661 $1,419,476 21% Fee related performance revenues 16,697 21
Slide 8: Gross New Capital Commitments
Gross New Capital Commitments(1) $ in billions Q2 2025 Primary Activities Credit Group U.S. Direct Lending $4.6 Debt and equity commitments to various funds, including debt commitments of $2.5 billion to Ares Senior Direct Lending Fund III, L.P. (“SDL IIIˮ) Business Development 5.7 Capital raised of
Slide 9: Assets Under Management
Assets Under Management AUM as of June 30, 2025 was $572.4 billion, an increase of 28% from prior year(1) • The increase of $125.2 billion was primarily driven by: ◦ commitments to SDL III, Ares Capital Europe VI, L.P. (“ACE VIˮ) and our third opportunistic credit fund; ◦ capital raised by our credi
Slide 10: Perpetual Capital
Perpetual Capital Perpetual Capital as of June 30, 2025 was $166.6 billion, an increase of 43% from prior year • The increase of $50.3 billion was primarily driven by: ◦ capital raised by our perpetual wealth vehicles, including our credit BDCs, our open-ended European direct lending fund and APMF;
Slide 11: AUM and Management Fees by Type
AUM and Management Fees by Type For the quarter ended June 30, 2025: • 82% of assets under management were perpetual capital or long-dated funds • 91% of management fees were earned from perpetual capital or long-dated funds AUM by Type Management Fees by Type 9% 8% 18% 9% 23% 8% 82% 91% 5% 42% 15%
Slide 12: Available Capital and AUM Not Yet Paying Fees
Available Capital and AUM Not Yet Paying Fees Available Capital as of June 30, 2025 was $150.8 billion, an increase of 24% from prior year • The increase of $28.7 billion was primarily driven by: ◦ commitments to our U.S. and European direct lending and opportunistic credit strategies; and ◦ the acq
Slide 13: AUM Not Yet Paying Fees
AUM Not Yet Paying Fees As of June 30, 2025, AUM Not Yet Paying Fees includes $86.8 billion of AUM available for future deployment that could generate approximately $822.7 million in potential incremental annual management fees(1) • The $86.8 billion of AUM Not Yet Paying Fees available for future d
Slide 14: Incentive Eligible AUM and Incentive Generating AUM
Incentive Eligible AUM and Incentive Generating AUM Incentive Eligible AUM as of June 30, 2025 was $303.8 billion, an increase of 17% from prior year • The increase of $44.3 billion was primarily driven by: ◦ commitments to funds across our U.S. and European direct lending, opportunistic credit, rea
Slide 15: Capital Deployment
Capital Deployment Total Gross Capital Deployment during Q2-25 was $26.9 billion compared to $26.4 billion during Q2-24 • Deployment by our drawdown funds was $13.0 billion in both Q2-25 and Q2-24 ◦ Of our drawdown funds, the investment strategies with the highest deployment were U.S. and European d
Slide 16: Credit Group
Credit Group(1) • Management and other fees increased by 16% for Q2-25 compared to Q2-24, primarily driven by deployment within our U.S. and European direct lending and alternative credit strategies and capital raised by our perpetual wealth vehicles • Fee Related Earnings increased by 16% for Q2-25
Slide 17: Real Assets Group
Real Assets Group(1) • Management and other fees increased by 112% for Q2-25 compared to Q2-24, primarily driven by fees from funds that we manage as a result of the acquisition of GCP International ◦ Management fees in Q2-25 included catch-up fees of $3.1 million primarily from our second climate i
Slide 18: Private Equity Group
Private Equity Group(1) • Management and other fees decreased by 5% for Q2-25 compared to Q2-24, primarily driven by a corporate private equity extended value fund that stopped paying fees at the end of Q4-24 • Fee Related Earnings decreased by 32% for Q2-25 compared to Q2-24, primarily due to the i
Slide 19: Secondaries Group
Secondaries Group(1) • Management and other fees increased by 40% for Q2-25 compared to Q2-24, primarily driven by higher management fees from capital raised by APMF and by commitments to our third infrastructure secondaries fund ◦ Management fees in Q2-25 and Q2-24 included catch-up fees of $3.2 mi
Slide 20: Supplemental Details
Supplemental Details
Slide 21: Financial Details – Segments
Financial Details – Segments Three months ended June 30, 2025 Real Private Operations Credit Assets Equity Secondaries Management $ in thousands Group Group Group Group Other Group Total(1) Management fees $617,141 $175,924 $31,767 $61,643 $13,810 $— $900,285 Fee related performance revenues 314 147
Slide 22: Financial Details – Segments
Financial Details – Segments Six months ended June 30, 2025 Real Private Operations Credit Assets Equity Secondaries Management $ in thousands Group Group Group Group Other Group Total(1) Management fees $1,202,537 $306,377 $63,765 $119,293 $26,689 $— $1,718,661 Fee related performance revenues 18,7
Slide 23: Realized Income per Share Data
Realized Income per Share Data Three months ended June 30, Six months ended June 30, $ in thousands, except share data 2025 2024 2025 2024 After-tax Realized Income Realized Income before taxes $397,814 $363,158 $803,738 $652,314 Entity level foreign, state and local taxes (13,845) (8,002) (22,650)
Slide 24: Weighted-Average Shares
Weighted-Average Shares Q2-25 Q2-24 Common Shares, Common Shares, Total Shares As Adjusted(1) Total Shares As Adjusted(1) Weighted-average shares of Class A and non-voting common stock 218,915,599 218,915,599 196,186,922 196,186,922 Ares Operating Group Units exchangeable into shares of Class A comm
Slide 25: Balance Sheet
Balance Sheet Substantial balance sheet value related to investments primarily in Ares managed vehicles and net accrued performance income as of June 30, 2025 $ in millions As of June 30, 2025 Financial Strength Cash and cash equivalents $509.7 Metrics Term debt obligations 2,560.2 Amount drawn on $
Slide 26: Balance Sheet Investments by Strategy
Balance Sheet Investments by Strategy(1) $ in millions As of June 30, 2025 As of December 31, 2024 Credit Liquid Credit $132.6 $139.8 Alternative Credit 0.8 0.8 Opportunistic Credit 33.1 36.8 U.S. Direct Lending 106.1 93.6 European Direct Lending 40.9 40.3 APAC Credit 14.8 10.1 Credit $328.3 $321.4
Slide 27: AUM Rollforward
AUM Rollforward Q2-25 AUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q1-25 Ending Balance $359,076 $124,187 $24,727 $31,312 $6,571 $545,873 Net new par/equity commitments 8,922 2,094 — 2,519 1,921 15,456 Net new debt commitments 9,161 1,619 — — — 1
Slide 28: FPAUM Rollforward
FPAUM Rollforward Q2-25 FPAUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q1-25 Ending Balance $218,231 $76,425 $11,352 $23,470 $5,590 $335,068 Commitments 5,858 880 — 688 1,747 9,173 Deployment/subscriptions/increase in leverage 6,973 1,287 16 409
Slide 29: AUM and FPAUM by Strategy
AUM and FPAUM by Strategy As of June 30, 2025 $ in billions AUM % AUM FPAUM % FPAUM Credit Liquid Credit $48.8 13% $46.6 20% Alternative Credit 43.7 12 31.6 14 Opportunistic Credit 18.0 5 8.8 4 U.S. Direct Lending(1) 174.2 46 94.0 41 European Direct Lending 81.3 22 41.9 18 APAC Credit 11.1 2 5.3 3 C
Slide 30: Credit Group Fund Performance Metrics
Credit Group Fund Performance Metrics The following table presents the performance data for funds that are not drawdown funds as of June 30, 2025: Returns(%) Quarter-to-Date Year-to-Date Since Inception(3) Year of Primary Investment ($ in millions) Inception AUM Gross Net Gross Net Gross Net Strateg
Slide 31: Credit Group Fund Performance Metrics (cont'd)
Credit Group Fund Performance Metrics (cont'd) The following table presents the performance data for our drawdown funds as of June 30, 2025: Original Capital MoIC IRR(%) Year of Capital Invested to Realized Unrealized Total Primary Investment ($ in millions) Inception AUM Commitments Date Value(8) V
Slide 32: Real Assets Group Fund Performance Metrics
Real Assets Group Fund Performance Metrics The following table presents the performance data for funds that are not drawdown funds as of June 30, 2025: Returns(%) Quarter-to-Date Year-to-Date Since Inception(4) Year of Primary Investment ($ in millions) Inception AUM Gross Net Gross Net Gross Net St
Slide 33: Private Equity Group Fund Performance Metrics
Private Equity Group Fund Performance Metrics The following table presents the performance data for our drawdown funds as of June 30, 2025: Original Capital MoIC IRR(%) Year of Capital Invested to Realized Unrealized Primary Investment ($ in millions) Inception AUM Commitments Date Value(3) Value(4)
Slide 34: Secondaries Group Fund Performance Metrics
Secondaries Group Fund Performance Metrics The following table presents the performance data for fund that is not drawdown fund as of June 30, 2025: Returns(%) Quarter-to-Date Year-to-Date Since Inception(4) Year of Primary Investment ($ in millions) Inception AUM Gross Net Gross Net Gross Net Strat
Slide 35: Reconciliation and Disclosures
Reconciliation and Disclosures
Slide 36: Corporate Data
Corporate Data Board of Directors Executive Officers Research Coverage Research Coverage (Con’t) Michael Arougheti Michael Arougheti Autonomous Redburn Atlantic Co-Founder and Chief Executive Officer Co-Founder and Chief Executive Officer Patrick Davitt Nicolas Watts of Ares Kipp deVeer (646) 561-62
Slide 37: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis Three months ended June 30, Six months ended June 30, $ in thousands 2025 2024 2025 2024 Realized Income and Fee Related Earnings: Income before taxes $286,938 $317,325 $427,976 $548,373 Adjustments: Amortization of intangibles 52,666
Slide 38: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd)
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd) Three months ended June 30, Six months ended June 30, $ in thousands 2025 2024 2025 2024 Performance income and net investment income reconciliation: Carried interest allocation $323,901 $(51,167) $483,909 $(83,645) Incentive
Slide 39: Investment Group Highlights and Fund Performance Endnotes
Investment Group Highlights and Fund Performance Endnotes The tables for each of the investment group highlights on slides 14-17 are a financial summary only and segment results are shown before the unallocated support costs of the Operations Management Group. Please refer to “Financial Details - Se
Slide 40: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Credit Group (cont’d) 13. The net IRR is an annualized since inception net internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Net IRRs reflect returns to the
Slide 41: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Real Assets Group (cont’d) 5. Performance is measured by total return, which includes income and appreciation and reinvestment of all distributions for the respective time period. Returns are shown for institutional share class. Shar
Slide 42: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Real Assets Group (cont’d) 16. EF IV is made up of two parallel funds, one denominated in U.S. Dollars and one denominated in Euros. The gross and net MoIC presented in the table are for the Euro denominated parallel fund. The gross
Slide 43: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Private Equity Group (cont’d) 7. The gross IRR is an annualized since inception gross internal rate of return of cash flows to and from the fund and the fund’s residual value at the end of the measurement period. Gross IRRs reflect r
Slide 44: Glossary
Glossary Ares Operating Group Ares Operating Group entities or an “AOG Entityˮ refers to, collectively, Ares Holdings L.P. (“Ares Holdingsˮ) and any future entity Entities designated by our board of directors in its sole discretion as an Ares Operating Group entity. Ares Operating Group Ares Operati
Slide 45: Glossary (Cont'd)
Glossary (Cont'd) Fee Paying AUM Fee Paying AUM or “FPAUMˮ refers to the AUM from which we directly earn management fees. FPAUM is equal to the sum of all the individual fee bases of our funds that directly contribute to our management fees. For our funds other than CLOs, our FPAUM represents the am
Slide 46: Glossary (Cont'd)
Glossary (Cont'd) Management Fees Management Fees refers to fees we earn for advisory services provided to our funds, which are generally based on a defined percentage of fair value of assets, total commitments, invested capital, gross asset value, net asset value, net investment income, total asset
Slide 47: Glossary (Cont'd)
Glossary (Cont'd) Perpetual Capital Perpetual Capital refers to the AUM of publicly-traded, perpetual wealth vehicles, commingled funds and managed accounts that have an indefinite term, are not in liquidation, and for which there is no immediate requirement to return invested capital to investors u