Ares Acquisition Corp. III · NYSE:AAC
Ares Acquisition Corp. III — Ares Management — Q1 2026 Earnings Presentation
47 slides from Ares Acquisition Corp. III's earnings presentation, Apr 30, 2026
Slide 1: Ares Management Corporation Reports First Quarter 2026 Results
Ares Management Corporation Reports First Quarter 2026 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its first quarter ended March 31, 2026. GAAP net income attributable to Ares Management Corporation was $142.6 million for the quarter ended March
Slide 2: Conference Call and Webcast Information
Conference Call and Webcast Information Ares will host a conference call on May 1, 2026 at 11:00 a.m. (Eastern Time) to discuss first 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 page
Slide 3: Earnings Presentation First Quarter 2026
Earnings Presentation First Quarter 2026
Slide 4: Important Notice
Important Notice This presentation is prepared for Ares Management Corporation (“Ares”) (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: First Quarter 2026 Highlights
First Quarter 2026 Highlights • GAAP net income attributable to Ares Management Corporation of $142.6 million • GAAP basic and diluted earnings per share of Class A and non-voting common stock of $0.46 • GAAP management fees of $989.5 million • Unconsolidated management fees and other fees of $1,075
Slide 6: GAAP Statements of Operations
GAAP Statements of Operations Three months ended March 31, $ in thousands, except share data 2026 2025 Revenues Management fees $989,527 $816,987 Carried interest allocation 146,631 160,008 Incentive fees 161,934 32,048 Principal investment income 477 21,998 Administrative, transaction and other fee
Slide 7: RI and Other Measures Financial Summary
RI and Other Measures Financial Summary Three months ended March 31, LTM ended March 31, $ in thousands, except share data (and as otherwise noted) 2026 2025 % Change 2026 2025 % Change Management fees1 $1,001,571 $818,376 22% $3,866,117 $3,082,441 25% Fee related performance revenues 19,556 28,051
Slide 8: Gross New Capital Commitments
Gross New Capital Commitments1 $ in billions Q1-26 Primary Activities Credit Group • Capital raised of $5.9 billion by our business development companies (“BDCs”), including $2.7 billion by ASIF and $1.3 billion by ARCC U.S. Direct Lending $9.5 • Equity and debt commitments to various funds • Capita
Slide 9: Assets Under Management
Assets Under Management1 AUM as of March 31, 2026 was $644.3 billion, an increase of 18% from prior year FPAUM as of March 31, 2026 was $399.6 billion, an increase of 19% from prior year • The increase of $98.4 billion was primarily driven by: • The increase of $64.5 billion was primarily driven by:
Slide 10: Perpetual Capital
Perpetual Capital Perpetual Capital as of March 31, 2026 was $215.3 billion, an increase of 39% from prior year • The increase of $60.5 billion was primarily driven by: – capital raised by our credit BDCs, our open-ended European direct lending fund, our open-ended infrastructure fund and APMF; – co
Slide 11: AUM and Management Fees by Type
AUM and Management Fees by Type For the quarter ended March 31, 2026: • 85% of assets under management were perpetual capital or long-dated funds • 93% of management fees were earned from perpetual capital or long-dated funds AUM by Type Management Fees by Type 7% 15% 11% 19% 10% 7% 85% 7% 93% 41% 6
Slide 12: Available Capital and AUM Not Yet Paying Fees
Available Capital and AUM Not Yet Paying Fees Available Capital as of March 31, 2026 was $158.1 billion, an increase of 11% from prior year AUM Not Yet Paying Fees as of March 31, 2026 was $101.7 billion, an increase of 3% from prior year • The increase of $16.1 billion was primarily driven by: • Th
Slide 13: AUM Not Yet Paying Fees
AUM Not Yet Paying Fees As of March 31, 2026, AUM Not Yet Paying Fees includes $79.4 billion of AUM available for future deployment1 and $4.2 billion of development assets not yet stabilized2 that could collectively generate approximately $715.9 million in potential incremental annual management fee
Slide 14: Incentive Eligible AUM and Incentive Generating AUM
Incentive Eligible AUM and Incentive Generating AUM Incentive Eligible AUM as of March 31, 2026 was $333.6 billion, an increase of 14% from prior year • The increase of $42.2 billion was primarily driven by commitments to funds across our real estate, infrastructure, U.S. and European direct lending
Slide 15: Capital Deployment
Capital Deployment Total Gross Capital Deployment during Q1-26 was $32.3 billion compared to $31.4 billion during Q1-25 • Deployment by our drawdown funds was $17.2 billion in Q1-26 compared to $16.7 billion in Q1-25 – Of our drawdown funds, the investment strategies with the highest deployment were
Slide 16: Credit Group
Credit Group1 • Management and other fees increased by 17% for Q1-26 compared to Q1-25, primarily driven by deployment within our U.S. and European direct lending and alternative credit strategies and by capital raised by our perpetual wealth vehicles • Fee related performance revenues decreased by
Slide 17: Real Assets Group
Real Assets Group1 • Management and other fees increased by 60% for Q1-26 compared to Q1-25, primarily driven by the full quarter impact of fees from funds that we manage as a result of the acquisition of GCP International in March 2025. The increase in management fees was also driven by capital rai
Slide 18: Secondaries Group
Secondaries Group1 • Management and other fees increased by 25% for Q1-26 compared to Q1-25, primarily driven by higher management fees from capital raised by APMF and by commitments to ACS – Management fees in Q1-25 included catch-up fees of $3.7 million primarily from ASIS III • Fee related perfor
Slide 19: Private Equity Group
Private Equity Group1 • Management and other fees increased by 4% for Q1-26 compared to Q1-25, primarily driven by management fees from ACOF VII which started generating fees in Q4-25, partially offset by lower fees from ACOF VI due to the step down in fee rate and change in fee base beginning in Q1
Slide 20: Supplemental Details
Supplemental Details
Slide 21: Financial Details – Segments
Financial Details – Segments Three months ended March 31, 2026 Real Private Operations Credit Assets Secondaries Equity Management $ in thousands Group Group Group Group Other Group Total1 Management fees $684,663 $196,626 $70,275 $33,119 $16,888 $— $1,001,571 Fee related performance revenues 5,256
Slide 22: Realized Income per Share Data
Realized Income per Share Data Three months ended March 31, $ in thousands, except share data 2026 2025 After-tax Realized Income Realized Income before taxes $502,736 $405,924 Entity level foreign, state and local taxes (12,559) (8,805) Realized Income before corporate income taxes 490,177 397,119
Slide 23: Weighted-Average Shares
Weighted-Average Shares Q1-26 Q1-25 Common Shares, Common Shares, Total Shares As Adjusted1 Total Shares As Adjusted1 Weighted-average shares of Class A and non-voting common stock 224,033,628 224,033,628 209,350,849 209,350,849 Ares Operating Group Units exchangeable into shares of Class A common s
Slide 24: Balance Sheet
Balance Sheet Substantial balance sheet value related to investments primarily in Ares managed vehicles and net accrued performance income $ in millions As of March 31, 2026 Cash and cash equivalents $568.8 Financial Strength Metrics Term debt obligations 2,961.5 Amount drawn on $1,840.0 revolving c
Slide 25: Balance Sheet Investments by Strategy
Balance Sheet Investments by Strategy1 $ in millions As of March 31, 2026 As of December 31, 2025 Credit Liquid Credit2 $58.7 $107.3 Alternative Credit 3.6 1.7 Opportunistic Credit 21.3 19.5 U.S. Direct Lending 68.2 72.1 European Direct Lending 22.5 22.5 APAC Credit 8.3 7.9 Credit $182.6 $231.0 Real
Slide 26: AUM Rollforward
AUM Rollforward Q1-26 AUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q4-25 Ending Balance $406,866 $139,088 $42,156 $25,288 $9,107 $622,505 Acquisitions 5,544 — — — — 5,544 New par/equity commitments 11,575 5,253 741 858 1,315 19,742 New debt commi
Slide 27: FPAUM Rollforward
FPAUM Rollforward Q1-26 FPAUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q4-25 Ending Balance $249,816 $84,065 $29,481 $14,437 $7,150 $384,949 Acquisitions 5,495 — — — — 5,495 Commitments 6,415 2,613 487 — 540 10,055 Deployment/increase in leverage
Slide 28: AUM and FPAUM by Strategy
AUM and FPAUM by Strategy As of March 31, 2026 $ in billions AUM % AUM FPAUM % FPAUM Credit Liquid Credit $60.2 14% $58.5 22% Alternative Credit 48.7 12 36.0 14 Opportunistic Credit 21.4 5 10.4 4 U.S. Direct Lending1 193.2 46 102.9 40 European Direct Lending 87.0 21 46.5 18 APAC Credit 12.1 2 5.9 2
Slide 29: Credit Group Fund Performance Metrics
Credit Group Fund Performance Metrics The following table presents the performance data for our perpetual capital vehicles as of March 31, 2026: Returns(%) Year of Quarter-to-Date Since Inception3 $ in millions Primary Investment Strategy Inception AUM Gross Net Gross Net ARCC4* U.S. Direct Lending
Slide 30: 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 March 31, 2026: Capital MoIC IRR(%) Year of Original Capital Invested to Realized Unrealized Total $ in millions Primary Investment Strategy Inception AUM Commitments Date Va
Slide 31: Real Assets Group Fund Performance Metrics
Real Assets Group Fund Performance Metrics The following table presents the performance data for our perpetual capital vehicles as of March 31, 2026: Returns(%) Primary Investment Year of Quarter-to-Date Since Inception4 $ in millions Strategy Inception AUM Gross Net Gross Net Diversified non-traded
Slide 32: Secondaries Group Fund Performance Metrics
Secondaries Group Fund Performance Metrics The following table presents the performance data for our perpetual capital vehicle as of March 31, 2026: Returns(%) Primary Investment Year of Quarter-to-Date Since Inception4 $ in millions Strategy Inception AUM Gross Net Gross Net APMF2* Private Equity S
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 March 31, 2026: Capital MoIC IRR(%) Primary Investment Year of Original Capital Invested to Realized Unrealized Total $ in millions Strategy Inception AUM Commitments Date Val
Slide 34: Corporate Data
Corporate Data Board of Directors Michael Arougheti Ashish Bhutani Antoinette Bush Kipp deVeer Paul G. Joubert David Kaplan Co-Founder and Chief Executive Former Chairman and Chief Former Senior Advisor to News Corp Co-President Former Partner at Co-Founder Officer of Ares Executive Officer of Lazar
Slide 35: Corporate Data (cont'd)
Corporate Data (cont'd) Research Coverage Autonomous Bank of America Merrill Lynch Barclays BMO Capital Markets Deutsche Bank Goldman Sachs Patrick Davitt Craig Siegenthaler Benjamin Budish Brennan Hawken Brian Bedell Alexander Blostein (646) 561-6254 (646) 855-5004 (212) 526-2418 (646) 648-2408 (21
Slide 36: Reconciliation and Disclosures
Reconciliation and Disclosures
Slide 37: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis Three months ended March 31, LTM ended March 31, $ in thousands 2026 2025 2026 2025 Realized Income and Fee Related Earnings: Income before taxes $312,921 $141,038 $1,458,776 $1,185,342 Adjustments: Amortization of intangibles 47,106 3
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 March 31, LTM ended March 31, $ in thousands 2026 2025 2026 2025 Performance income and net investment income reconciliation: Carried interest allocation $146,631 $160,008 $1,140,599 $582,666 Incentive fees
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) Real Assets Group 14) ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in 17) ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in 1) Th
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) 7) Performance is measured by total return, which includes income and appreciation and 13) For the real estate funds (excluding EIP II) and EIF V, the gross IRR is an annualized since 16) EPEP II is made up
Slide 42: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Secondaries Group Private Equity Group 1) The Secondaries Group had ~110 investment and investor relations professionals, ~1,000 8) The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying 1) The P
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 entities Ares Operating Group entities or an “AOG Entity” refers to, collectively, Ares Holdings L.P. (“Ares Holdings”) 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 Op
Slide 45: Glossary (cont'd)
Glossary (cont'd) Fee Related Performance Revenues Fee Related Performance Revenues refers to performance revenues from perpetual capital vehicles that are: (i) measured and eligible to be received on a recurring basis; and (ii) not dependent on realization events from the underlying investments. Ce
Slide 46: Glossary (cont'd)
Glossary (cont'd) Perpetual Capital Perpetual Capital refers to the AUM of publicly-traded funds, 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 inves
Slide 47: Glossary (cont'd)
Glossary (cont'd) Unless otherwise indicated, fund references throughout this presentation include the main fund and related parallel funds, feeder funds and co-investment vehicles. The following list sets forth the funds referred to throughout this presentation: Acronym Fund Name Acronym Fund Name