Private Equity: Ares Management Corporation Reports Quarterly Earnings

February 13, 2020 | Investments, News, Private Equity

Ares Management Corporation (NYSE: ARES) beat earnings expectations for its fourth quarter and fiscal year ended December 31, 2019 reports.

GAAP net income attributable to Ares Management Corporation was $38.5 million and $148.9 million, respectively, for the quarter and year ended December 31, 2019. On a diluted basis, net income attributable to Ares Management Corporation per share of Class A common stock was $0.25 and $1.06, respectively, for the quarter and year ended December 31, 2019. With approximately $149 billion in assets under management, Ares Management Corporation is one of the largest global alternative asset managers. It operates three investment groups: credit, private equity and real estate.

Ares Management Corporation in 2019

It was a good year for raising and deploying capital at Ares.  The firm raised $6.6 billion and $23.8 billion in gross new capital with net inflows of $6.3 billion and $21.5 billion for Q4-19 and FY-19, respectively. Capital deployment of $5.1 billion and $27.4 billion during Q4-19 and FY-19, respectively, including $4.0 billion and $21.5 billion related to our drawdown funds for these periods. Assets under management at year-end were $148.9 billion, an increase of 14.0% from the prior year.

Michael Arougheti, Chief Executive Officer and President of Ares commented on the quarter and year telling investors that “Our fourth quarter capped off a strong year for Ares with growth in management fees and fee-related earnings each in excess of 20% and 25%, respectively, along with quality fund performance for our clients,” said Michael Arougheti, President and CEO. “We are well positioned to continue our firm’s growth into 2020 with the deployment of a portion of our dry powder and multiple flagship fundraises expected across our strategies.”

CFO Michael McFerran also commented in the press release and notifie investors of a substantial dividend increase.

“Based on the trajectory of our business and strong outlook, we are excited to announce a 25% increase in our 2020 dividend,” he said. “With multiple strategic investments recently announced, we believe we are laying the groundwork for new growth initiatives to fuel expansion in future years.”

Related: CalPERS allocates more than $3 billion to real estate

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