Private Equity: Ares Management Corporation Reports Quarterly Earnings
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.”
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