Ares Management Q1 2025 slides: AUM surges to $545.9 billion, realized income up 40%

Ares Management Corporation (NYSE:ARES) released its first quarter 2025 financial results on May 5, 2025, showcasing continued strong growth across key metrics. The alternative asset manager reported significant increases in assets under management, fee-related earnings, and realized income, driven by robust fundraising and strategic acquisitions.

Quarterly Performance Highlights

Ares reported GAAP net income attributable to Ares Management Corporation of $47.2 million for Q1 2025. After-tax realized income reached $381.4 million ($1.09 per share), representing a substantial 40.4% increase from $265.1 million ($0.80 per share) in Q1 2024. The company declared a quarterly dividend of $1.12 per share of its Class A and non-voting common stock, payable on June 30, 2025.

As shown in the following financial summary, management fees grew 18.0% year-over-year to $818.4 million, while fee-related earnings increased 21.7% to $367.3 million:

Fee-related earnings margin stood at 41.5%, reflecting the company’s operational efficiency. This performance builds upon the momentum seen in previous quarters, with Q3 2024 having shown an 18% rise in management fees and 24% growth in fee-related earnings.

Assets Under Management Growth

Ares Management’s total assets under management (AUM) reached $545.9 billion as of March 31, 2025, representing a 27.5% increase from $428.3 billion in Q1 2024 and a 12.7% increase from $484.4 billion in Q4 2024. Fee-paying AUM grew to $335.1 billion, up 25.5% year-over-year.

The following chart illustrates the growth in AUM and fee-paying AUM across Ares’ business segments:

A significant driver of this growth was the acquisition of GCP International (excluding operations in Greater China) on March 1, 2025, which added $45.3 billion to Ares’ AUM. Additionally, the company raised $20.2 billion in new capital commitments during the quarter, with the Credit Group accounting for $10.7 billion of this total.

Perpetual capital, a key focus for Ares, increased to $154.8 billion, up 41.8% from $109.2 billion in Q1 2024. This growth was primarily driven by commitments to certain funds and SMAs in alternative credit and direct lending strategies, capital raised by perpetual wealth vehicles, and the GCP acquisition.

The company’s emphasis on perpetual capital and long-dated funds continues to provide stability to its revenue streams, with 83% of AUM and 92% of management fees coming from these sources:

Capital Deployment and Fundraising

Ares deployed $31.4 billion of capital during Q1 2025, with $16.7 billion deployed by drawdown funds and $13.0 billion by perpetual capital vehicles. The Credit Group led deployment activities, accounting for a significant portion of the total.

The company’s available capital stood at $142.0 billion as of March 31, 2025, up from $114.6 billion a year earlier. This provides substantial dry powder for future investments. Additionally, AUM not yet paying fees increased to $99.2 billion, including $81.5 billion available for future deployment that could generate approximately $764.4 million in potential incremental annual management fees.

Balance Sheet and Financial Position

Ares maintained a strong balance sheet with $618.5 million in cash and cash equivalents as of March 31, 2025. The company’s term debt obligations stood at $2,559.5 million, with $985.0 million drawn on its $1,400.0 million revolving credit facility. Ares’ corporate investment portfolio was valued at $1,335.0 million, while gross accrued performance income reached $3,557.3 million.

The company’s balance sheet investments were diversified across strategies, with Real Assets accounting for $452.5 million, Credit for $348.1 million, and Private Equity for $326.9 million:

Segment Performance

The Credit Group, Ares’ largest segment, continued to deliver strong results with management and other fees of $596.0 million in Q1 2025, fee-related earnings of $408.6 million, and realized income of $431.9 million. The Real Assets Group generated management and other fees of $151.8 million, with fee-related earnings of $74.3 million and realized income of $87.6 million.

The Private Equity Group reported management and other fees of $32.4 million and fee-related earnings of $14.3 million, while the Secondaries Group contributed management and other fees of $57.8 million and fee-related earnings of $40.6 million.

Forward-Looking Statements

Ares Management’s Q1 2025 results demonstrate continued execution of its growth strategy, with significant increases across key financial metrics. The company’s substantial available capital and AUM not yet paying fees position it well for future growth. The acquisition of GCP International enhances Ares’ global presence and contributes to its expanding AUM base.

The strong performance in Q1 2025 builds upon the momentum seen in previous quarters, with the company’s focus on perpetual capital and long-dated funds providing stability to its revenue streams. With $142.0 billion in available capital and robust fundraising capabilities, Ares is well-positioned to capitalize on investment opportunities across its diverse platform.

Ares Management’s stock (NYSE:ARES) closed at $157.07 on May 2, 2025, up 3.15% for the day. The stock has performed strongly over the past year, trading near its 52-week high of $200.49, reflecting investor confidence in the company’s growth trajectory and business model.

Full presentation:

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