Q1 2025 Ares Management Corp Earnings Call Transcript
Key Points
- Ares Management Corp (ARES) reported a year-over-year growth in management fees of 18%, FRE growth of 22%, and after-tax realized income per share growth of 36%.
- The company raised over $20 billion in gross new capital commitments, marking the highest level for first-quarter fundraising on record.
- Ares Management Corp (ARES) crossed over $0.5 trillion in total AUM, reaching $546 billion, including $45 billion added through the acquisition of GCP.
- The firm has $142 billion of available capital, providing significant capacity for additional management fee growth.
- Ares Management Corp (ARES) declared a quarterly dividend of $1.12 per share, representing a 20% increase over the same quarter a year ago.
- Market volatility and uncertainty increased due to geopolitical events and tariff policies, impacting liquid credit and equity markets.
- The integration of GCP was a modest drag on FRE margins, with GCP's FRE margins being slightly below Ares Management Corp (ARES)'s margins.
- The market entered a new phase of volatility, causing a drop in activity in liquid credit and equity markets.
- There is uncertainty over the path of economic growth, with potential impacts from tariffs and geopolitical events.
- The company faces challenges in maintaining consistent capital allocations from institutional investors during periods of volatility.
Please stand by, we're about to begin. Welcome to the Ares Management Corporation's first quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded on Monday, May 5, 2025.
I will now turn the call over to Greg Mason, Co-Head of Public Markets Investor Relations for Ares Management. Please go ahead, sir.
Good morning, and thank you for joining us today for our first quarter 2025 conference call. I'm joined today by Michael Arougheti, our Chief Executive Officer; and Jarrod Phillips, our Chief Financial Officer. We also have a number of executives with us today who will be available during Q&A.
Before we begin, I want to remind you that comments made during this call contain certain forward-looking statements and are subject to risks and uncertainties, including those identified in our risk factors in our SEC filings. Our actual results could differ materially, and we undertake no obligation
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