Ares Management Corporation · NYSE:ARES
Ares Management — Q2 2025 Earnings Presentation
45 slides from Ares Management's earnings presentation, Aug 1, 2025
Slide 1: Earnings Presentation Second Quarter 2025
Earnings Presentation Second Quarter 2025 Exhibit 99.2
Slide 2: Important Notice
2 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
Slide 3: Second Quarter 2025 Highlights
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Privat e Equ ity Real Esta te Strate gic Initi atives BUSINES S SECTOR PALETTE GENERA L PALE TTE 3 Q2-25 Financial Results Assets Under Management Corporate Actions Second Quarter 2025 Highlights 1. Unconsolidated
Slide 4: GAAP Statement of Operations
4 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 56,401 Principal investment
Slide 5: RI and Other Measures Financial Summary
5 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
Slide 6: Gross New Capital Commitments
6 Gross New Capital Commitments(1) 1. Represents gross new capital commitments during the period presented, including equity and debt commitments, and gross inflows into our open-ended managed accounts, publicly-traded vehicles and perpetual wealth vehicles. Commitments denominated in currencies oth
Slide 7: Assets Under Management
7 Q2-24 Q1-25 Q2-25 Assets Under Management 1. AUM amounts include vehicles managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of ARCC and a SEC-registered investment adviser (“IHAMˮ). AUM as of June 30, 2025 was $572.4 billion, an increase of 28% from prior year(1) • The i
Slide 8: Perpetual Capital
8 Q2-24 Q1-25 Q2-25 $1.7 Perpetual Capital Perpetual Capital AUM 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 ope
Slide 9: AUM and Management Fees by Type
9 8% 9% 8% 5% 52% 18% 23% 15% 6% 5% 42% 9% AUM and Management Fees by Type 82% 1. Long-dated funds generally have a contractual life of five years or more at inception. For the quarter ended June 30, 2025: • 82% of assets under management were perpetual capital or long-dated funds • 91% of managemen
Slide 10: Available Capital and AUM Not Yet Paying Fees
10 Q2-24 Q1-25 Q2-25 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 stra
Slide 11: AUM Not Yet Paying Fees Available for Future Deployment
11 $86.8 $12.0 $4.6 $1.4 AUM Not Yet Paying Fees Available for Future Deployment 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 managem
Slide 12: Incentive Eligible AUM and Incentive Generating AUM
12 Q2-24 Q1-25 Q2-25 $22.8 Incentive Eligible AUM and Incentive Generating AUM ($ in billions) ($ in billions) Credit(3) Real Assets(3) Private Equity Secondaries(3) Other Businesses Total Incentive Generating AUM $95.2 $23.5 $7.8 $11.3 $1.3 $139.1 + Uninvested IEAUM 70.0 11.9 4.5 10.8 0.6 97.8 + IE
Slide 13: Capital Deployment
13 $20.6 $3.0 $0.8 $1.0 $1.5 Q2-25 Gross Capital Deployment Capital Deployment ($ in billions) (2) Capital Deployment in Drawdown Funds ($ in billions) 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 bi
Slide 14: Credit Group
14 Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 37 for additional information. Credit Group(1) Alternative Credit 3.0% / 12.3% $ in thousands Q2-25 Q2-24 % Change YTD-25 YTD-24 % Change Management and other fees $630,503 $545,145 16% $1,226,497 $1
Slide 15: Real Assets Group
15 Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 38 for additional information. Financial Summary and Highlights Americas Real Estate Equity 3.4% / 9.2% Strategy Performance Highlights European Real Estate Equity 0.9% / 5.0% Infrastructure Debt 3.2
Slide 16: Private Equity Group
16 • 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 increase in operating
Slide 17: Secondaries Group
17 Note: Past performance is not indicative of future results. Please refer to the endnotes on slide 41 for additional information. Financial Summary and Highlights Private Equity Secondaries(3) 3.1% / (3.2)% Strategy Performance Highlights Real Estate Secondaries(3) 0.9% / 1.8% Q2-25 / since incept
Slide 18: Supplemental Details
Supplemental Details
Slide 19: Financial Details – Segments (Three Months)
19 Financial Details – Segments 1 2. Three months ended June 30, 2025 $ in thousands Credit Group Real Assets Group Private Equity Group Secondaries Group Other Operations Management Group Total(1) Management fees $617,141 $175,924 $31,767 $61,643 $13,810 $— $900,285 Fee related performance revenues
Slide 20: Financial Details – Segments (Six Months)
20 Six months ended June 30, 2025 $ in thousands Credit Group Real Assets Group Private Equity Group Secondaries Group Other Operations Management Group Total(1) Management fees $1,202,537 $306,377 $63,765 $119,293 $26,689 $— $1,718,661 Fee related performance revenues 18,709 147 — 25,892 — — 44,748
Slide 21: Realized Income per Share Data
21 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) (22,65
Slide 22: Weighted-Average Shares
22 Weighted-Average Shares 1. Represents proportional dilutive impact based upon the weighted average percentage of Ares Operating Group owned by Ares Management Corporation (67.03% and 63.21% as of June 30, 2025 and 2024, respectively). 2. Represents units exchangeable for shares of Class A common
Slide 23: Balance Sheet
23 72% 19% 12% 1% Substantial balance sheet value related to investments primarily in Ares managed vehicles and net accrued performance income as of June 30, 2025 Balance Sheet 1. Unconsolidated investments includes $957.3 million of investments in Consolidated Funds that are eliminated upon consoli
Slide 24: Balance Sheet Investments by Strategy
24 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
Slide 25: AUM Rollforward
25 Credit • AUM increased by 17% from Q2-24, primarily driven by commitments to SDL III, ACE VI and our third opportunistic credit fund, and by capital raised by our BDCs and our open-ended European direct lending fund Real Assets • AUM increased by 92% from Q2-24 primarily driven by the acquisition
Slide 26: FPAUM Rollforward
26 Credit • FPAUM increased by 16% from Q2-24, primarily driven by deployment of capital in funds across our U.S. and European direct lending and alternative credit strategies, and by capital raised by our BDCs and our open-ended European direct lending fund Real Assets • FPAUM increased by 91% from
Slide 27: AUM and FPAUM by Strategy
27 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
Slide 28: Credit Group Fund Performance Metrics
28 Credit Group Fund Performance Metrics The following table presents the performance data for funds that are not drawdown funds as of June 30, 2025: Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the app
Slide 29: Credit Group Fund Performance Metrics (cont'd)
29 Credit Group Fund Performance Metrics (cont'd) Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NMˮ as they may not b
Slide 30: Real Assets Group Fund Performance Metrics
30 Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NMˮ as they may not be considered meaningful due to the limited time
Slide 31: Private Equity Group Fund Performance Metrics
31 Private Equity Group Fund Performance Metrics Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NMˮ as they may not be
Slide 32: Secondaries Group Fund Performance Metrics
32 Secondaries Group Fund Performance Metrics Note: Past performance is not indicative of future results. Return information presented may not reflect actual returns earned by investors in the applicable fund. Fund performance metrics for significant funds may be marked as “NMˮ as they may not be co
Slide 33: Reconciliation and Disclosures
Reconciliation and Disclosures
Slide 34: Corporate Data
34 Corporate Data Board of Directors Michael Arougheti Co-Founder and Chief Executive Officer of Ares Ashish Bhutani Former Chairman and Chief Executive Officer of Lazard Asset Management and Former Vice Chairman of Lazard Ltd Antoinette Bush Former Senior Advisor to News Corp Kipp deVeer Co-Preside
Slide 35: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis
35 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 52,6
Slide 36: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd)
36 GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd) Note: These tables reconcile consolidated carried interest allocation and incentive fees reported in accordance with GAAP to unconsolidated realized performance income and consolidated GAAP other income to unconsolidated re
Slide 37: Investment Group Highlights and Fund Performance Endnotes
37 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 - Segmentsˮ on slides 19-20 for complete financial results.
Slide 38: Credit Group Endnotes (cont'd)
38 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 fee-paying limited partners and, if applicable, exclude interes
Slide 39: Investment Group Highlights and Fund Performance Endnotes (cont'd)
39 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. S
Slide 40: Real Assets Group Endnotes (cont'd)
40 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 and net MoIC for the U.S. Dollar denominated parallel fund are 1
Slide 41: Private Equity Group Endnotes (cont'd)
41 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 returns to the fee-paying limited partners and, if applicable, ex
Slide 42: Glossary
42 Glossary Ares Operating Group Entities Ares Operating Group entities or an “AOG Entityˮ refers to, collectively, Ares Holdings L.P. (“Ares Holdingsˮ) and any future entity designated by our board of directors in its sole discretion as an Ares Operating Group entity. Ares Operating Group Unit Ares
Slide 43: Glossary (Cont'd)
43 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
Slide 44: Glossary (Cont'd)
44 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 as
Slide 45: Glossary (Cont'd)
45 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 investor