Ares Management Corporation · NYSE:ARES
Ares Management — Investor Day (2021)
26 slides from Ares Management's investor day presentation, 2021
Slide 1: Stakeholder Impact
Stakeholder Impact Michael Arougheti Indhira Arrington Co-Founder, Chief Executive Officer and Global Chief Diversity, Equity and President Inclusion Officer Adam Heltzer Michelle Armstrong Head of ESG Head of Philanthropy Ares Management Corporation Investor Day 2021 - Not for Publication or Distri
Slide 2: Important Notice
Important Notice This presentation is prepared for Ares Management Corporation (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 Management Corporation (“A
Slide 3: Important Notice
Important Notice Dated information: This video may contain dated information. Viewers are cautioned that this video and the associated presentation is maintained here solely for the purposes of providing historical background about Ares Management Corporation. As the video may contain dated informat
Slide 4: Our Purpose Driven Culture Positions Ares to Be a Leader
Our Purpose Driven Culture Positions Ares to Be a Leader Collaborative Purpose We achieve more together We are a catalyst for shared prosperity and a better future Trustworthy We are dedicated stewards Vision We are a leader in our industry in seeking to generate attractive returns and Responsible W
Slide 5: Translating Aspirations into Actions
Translating Aspirations into Actions Today we act on our purpose through three distinct but interconnected sets of activities IMPACT AT ARES | ESG | DEI | PHILANTHROPY Adam Heltzer Indhira Arrington Michelle Armstrong Head of ESG Chief DEI Officer Head of Philanthropy ESG Integration into the Grants
Slide 6: ESG Makes Good Business Sense
ESG Makes Good Business Sense Strong ESG performance supports greater profitability and higher enterprise values1 Stronger Growth Prospects Greater Investment Increased Cost Performance Efficiencies ESG Economic Benefits2 Enhanced Employee Improved Risk Productivity and Management Engagement 1. Pens
Slide 7: We are Building the ESG Program of the Future
We are Building the ESG Program of the Future We see three key markers of a differentiated ESG program in alternative investment management Head of ESG reports directly to Executive Priority Ares’ CEO and President ~90 ESG champions lead bespoke ESG Distributed Resource Model integration efforts wit
Slide 8: Our ESG Framework
Our ESG Framework We have conviction in developing leading sustainability practices and then amplifying these principles through our investments Corporate Sustainability Demonstrate our commitment through industry-leading sustainability practices in our Responsible own corporate operations Investmen
Slide 9: Recent ESG Successes and Results
Recent ESG Successes and Results We commit to continued improvement in transparency and reporting as part of sustainability best practices Inaugural report and disclosures published in May Sustainability Tracking KPIs Report Inaugural disclosures for key public funds published in early July
Slide 10: Diversity, Equity & Inclusion is a Business-Critical Issue
Diversity, Equity & Inclusion is a Business-Critical Issue Diversity, equity & inclusion are good for business, our investors and our stakeholders 25%+ 36%+ Diversity Gender diverse companies Ethnically diverse DEI is Core to Our more likely to outperform less companies more likely to diverse organi
Slide 11: Diversity, Equity & Inclusion at Ares
Diversity, Equity & Inclusion at Ares Our DEI framework and strategy aspires to harness the power of difference to be a force for good and contribute to the long- term success of Ares, the companies in which we invest, and the communities in which we operate. People Business & & Investment Communiti
Slide 12: Operation AmpliFY DEI: Leading By Example
Operation AmpliFY DEI: Leading By Example Ares and certain PE portfolio companies1 implemented a strategic review of DEI practices focusing on three main areas DEI Infrastructure Diversity Inclusion Assessment Assessment Assessment Assesses the infrastructure Results Illustrates opportunities to Eva
Slide 13: Philanthropy Yields Returns Beyond Dollars and Cents
Philanthropy Yields Returns Beyond Dollars and Cents Our commitment to “do good” reflects our core values and helps enhance our ability to attract and retain talent who embrace these ideals 501(c)(3) funded by Ares’ investment profits and Ares Charitable Ares in E employee donations to accelerate eq
Slide 14: Our Philanthropy Makes Us Distinctly Different
Our Philanthropy Makes Us Distinctly Different We lead by example, give back with intentionality and create opportunities for team members to give and get involved Grantmaking Employee Engagement Sponsorships & Support Ares is committing a 1,800+ volunteer hours $6.1 million contributed percentage o
Slide 15: AltFinance: Investing in Black Futures
AltFinance: Investing in Black Futures Industry-first initiative to help attract, develop and provide professional opportunities for Historically Black College & University (“HBCU”) students to increase diversity in the alternatives industry $30 million Career Preparation & Collaboration with Apollo
Slide 16: Integrated Approach Maximizes Impact
Integrated Approach Maximizes Impact We are committed to an integrated approach across the organization to maximize our impact Our three integrated approaches to stakeholder impact are purposefully designed to drive growth and accelerate results Ares Management Corporation Investor Day 2021 - Not fo
Slide 17: Appendix
Appendix Ares Management Corporation Investor Day 2021 - Not for Publication or Distribution
Slide 18: GAAP Statement Of Operations
GAAP Statement Of Operations Year Ended December 31, $ in thousands, except share data Q2-21 LTM 2020 2019 2018 2017 2016 2015 2014 Revenues Management fees $1,307,451 $1,150,608 $979,417 $802,502 $722,419 $642,068 $634,399 $486,477 Carried interest allocation 1,583,262 505,608 621,872 42,410 620,45
Slide 19: RI and Other Measures Financial Summary
RI and Other Measures Financial Summary Year Ended December 31, $ in thousands, except share data (and as otherwise noted) Q2-21 LTM 2020 2019 2018 2017 2016 2015 2014 Management fees(1) $1,335,413 $1,186,565 $1,012,530 $836,744 $744,825 $659,451 $650,918 $598,046 Other fees 25,993 19,948 18,078 24,
Slide 20: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis Year Ended December 31, $ in thousands Q2-21 LTM 2020 2019 2018 2017 2016 2015 2014 Realized Income and Fee Related Earnings: Income before taxes $944,635 $379,478 $425,180 $184,341 $149,859 $297,920 $81,484 $556,915 Adjustments: Amort
Slide 21: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd)
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd) Year Ended December 31, $ in thousands Q2-21 LTM 2020 2019 2018 2017 2016 2015 2014 Performance income and net investment income reconciliation: Carried interest allocation $1,583,262 $505,608 $621,872 $42,410 $620,454 $494,58
Slide 22: Glossary
Glossary Ares Management Corporation Investor Day 2021 - Not for Publication or Distribution
Slide 23: Glossary
Glossary ARCC Part II Fees ARCC Part II Fees refers to fees that are paid in arrears as of the end of each calendar year when the cumulative aggregate realized capital gains exceed the cumulative aggregate realized capital losses and aggregate unrealized capital depreciation, less the aggregate amou
Slide 24: Glossary
Glossary Fee Related Earnings Fee Related Earnings or “FRE”, a non-GAAP measure, is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees, is sufficient to cover operating expenses and to generate profits. FRE differs from income
Slide 25: Glossary
Glossary Our Funds Our Funds refers to the funds, alternative asset companies, co-investment vehicles and other entities and accounts that are managed or co-managed by the Ares Operating Group, and which are structured to pay fees. It also includes funds managed by Ivy Hill Asset Management, L.P., a
Slide 26: Ares Management Corporation Investor Day 2021 - Not for Publication or Distribution
Ares Management Corporation Investor Day 2021 - Not for Publication or Distribution