Q2 2025 Ares Management Corp Earnings Call Transcript
Key Points
- Ares Management Corp (ARES) reported strong second quarter results with significant growth in AUM and fee-paying AUM, driven by successful fundraising and investment performance.
- The company achieved its second highest quarterly fundraising total on record, raising over $26 billion across more than 20 strategies and 40 funds.
- Management fees increased by 24% year-over-year, reflecting strong growth across private credit strategies, private wealth franchise, secondaries business, and Real Assets business.
- Ares Management Corp (ARES) declared a quarterly dividend of $1.12 per share, representing a 20% increase over the same quarter last year.
- The integration of the GCP acquisition is progressing well, contributing $103 million in revenues and $34 million in FRE, with expectations for significant future contributions.
- The deployment environment was modestly impacted by market volatility, particularly at the beginning of the quarter, affecting transaction activity.
- The integration of GCP temporarily compressed FRE margins by 90 basis points, although this is expected to be temporary.
- There is a risk of fee pressure in the private credit market as some peers have cut fees to attract capital, although Ares Management Corp (ARES) has resisted this trend.
- The potential for a credit cycle remains a concern, although Ares Management Corp (ARES) believes it is well-positioned to manage through it.
- The timeline for deploying AUM not yet paying fees remains uncertain, with expectations ranging from 18 to 24 months, although historical trends suggest a closer timeline to one year.
Please stand by. Your program is about to begin. Welcome to Ares Management Corporation's Second Quarter 2025 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded on Friday, August 1, 2025.
I will now turn the call over to Greg Mason, Co-Head of Public Markets Investor Relations for Ares Management.
Good morning, and thank you for joining us today for our second quarter 2025 earnings 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 to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
