Q2 2024 Ares Management Corp Earnings Call Transcript
Key Points
- Ares Management Corp (ARES) declared a third-quarter common dividend of $0.93 per share, representing a 21% increase over the same quarter last year.
- The company achieved its single best quarter of fundraising in history, raising $26 billion in gross capital.
- Assets under management (AUM) grew to a record $447 billion, up 18% year-over-year.
- Fee-related earnings grew by 22% year-over-year, supported by strong deployment and fundraising activities.
- The company reported a 29% increase in AUM not yet paying fees, indicating strong future revenue potential.
- General and administrative (G&A) expenses spiked in Q2 due to the first-ever front-line VGM pounds, impacting overall costs.
- Despite strong performance, the net accrued performance income declined slightly to $919 million, primarily due to the reversal of carried interest in certain funds.
- The company faces competitive pressures in the private credit market, which could impact future deployment and returns.
- There is a potential for increased defaults and non-accruals in the broader private credit industry, despite Ares Management Corp (ARES) outperforming the market.
- The company is experiencing higher supplemental distribution fees, which could impact margins if not offset by increased revenues.
(Operator instructions) Boom. Okay. So we'll move on several reasons. Okay. oh, sorry, our best assessment again.
Good morning, everyone, and welcome to the ARIES Management Corporation's Second Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session.
(Operator instructions) And now at this time, I would like to turn things over to Mr. Greg Mason, Co-Head of public markets investor. Good morning, and thank you for joining us today for our second quarter conference call. Speaking on call today will be Michael AirGate or Chief Executive Officer, and Gary Phillips, our Chief Financial Officer.
We also have several executives with us today who will be available during the Q&A session. Before we begin, I want to remind you that comments made during this call contain forward-looking statements are subject to risks and uncertainties,
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