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Mar 31, 2020

Ares Q1 2020 Earnings Report

Ares Management Corporation reported first quarter 2020 results.

Key Takeaways

Ares Management Corporation reported a GAAP net loss of $31.0 million for the quarter ended March 31, 2020. Despite economic disruption, the company generated a record level of fee related earnings with growth of 31% versus the prior year period, and fee paying AUM exceeded $100 billion for the first time.

Ares workforce responded well and is operating highly effectively during the COVID-19 pandemic.

Fee related earnings grew by 31% versus the prior year period.

Fee paying AUM exceeded $100 billion for the first time.

The company is well positioned to continue growing fee related earnings by 15% or more annually.

Total Revenue
$274M
Previous year: $233M
+17.5%
EPS
$0.45
Previous year: $0.35
+28.6%
Total AUM
$149B

Ares

Ares

Forward Guidance

Ares believes they are well positioned to continue growing their fee related earnings by 15% or more annually as they execute on a strong fundraising cycle and seek to make attractive, value-oriented investments from their long dated assets under management, with significant available capital of more than $33 billion.

Positive Outlook

  • Strong fundraising cycle
  • Attractive, value-oriented investments
  • Long dated assets under management
  • Significant available capital of more than $33 billion
  • Flexible strategies

Challenges Ahead

  • Impact of the COVID-19 pandemic
  • Pandemic's impact on the U.S. and global economy
  • Market volatility
  • Economic disruption
  • Challenging times