Ares Management Corporation Stock Price, News & Analysis

Ares Management (NYSE:ARES) reported strong Q3 2024 results with GAAP net income of $118.5 million and earnings per share of $0.55. The company achieved after-tax realized income of $316.0 million ($0.95 per share) and fee-related earnings of $339.3 million. With over $64 billion in fundraising year-to-date, Ares expects 2024 to be a record year with gross commitments reaching mid-$80 billion range. Third quarter deployment reached nearly $30 billion. The company declared a quarterly dividend of $0.93 per share of Class A stock, payable December 31, 2024.

Ares Capital (NASDAQ: ARCC) announced key leadership changes. Jim Miller was appointed as Co-President alongside Kort Schnabel. The Board of Directors expanded with Mitch Goldstein joining as a new member. Goldstein and Michael L. Smith were appointed as Co-Chairmen of the Board, replacing Michael Arougheti, who remains as Director. Kipp deVeer continues as Director and CEO. Miller, who joined Ares in 2006, serves as Co-Head of U.S. Direct Lending strategy and co-leads the Sports, Media and Entertainment strategy.

Ares Capital (ARCC) announced its Q3 2024 financial results and declared a Q4 2024 dividend of $0.48 per share. The company reported Q3 GAAP net income of $0.62 per share, down from $0.89 in Q3 2023, and Core EPS of $0.58. Portfolio investments at fair value increased to $25.9 billion from $22.9 billion in December 2023. During Q3, ARCC made new investment commitments of $3.9 billion, with 93% in first lien senior secured loans. The company maintained strong credit performance with loans on non-accrual status at 1.3% of total investments at amortized cost.

CION Ares Diversified Credit Fund (CADC) has surpassed $6 billion in total assets under management. Launched in 2017, the Fund operates as an interval fund structure offering diversified credit strategy to individual investors through financial advisors. CADC invests in both illiquid and liquid credit investments, employing a dynamic asset allocation framework and leveraging Ares' resources and infrastructure. The Fund is distributed through RIAs, independent broker-dealers, and wirehouses, maintaining strong net capital raise with consistently low redemption rates.

Ares Management has updated the time of its earnings conference call for the third quarter ending September 30, 2024. The call will now be held at 9:00am ET on Friday, November 1, 2024. The company will report its earnings earlier that morning, before the New York Stock Exchange opens.

Interested parties can participate via telephone or live webcast. The webcast link is available on the Investor Resources section of the Ares website. Domestic callers should dial +1 (800) 445-7795, while international callers should use +1 (203) 518-9848. Callers are advised to dial in 10-15 minutes early and reference the conference ID ARESQ324.

An archived replay will be available until December 1, 2024, accessible by phone and through the company's website.

Ares Management (NYSE: ARES) has priced an offering of $750 million aggregate principal amount of 5.600% Senior Notes due 2054. The notes, fully guaranteed by several Ares entities, will bear interest at 5.600% per annum, payable semi-annually. The offering is expected to close on October 11, 2024, with net proceeds of approximately $737.7 million.

Ares intends to use the proceeds for (i) partial payment of the cash consideration for its acquisition of GLP Capital Partners 's international business (excluding Greater China operations) and related expenses, and/or (ii) general corporate purposes, including debt repayment and strategic acquisitions. Morgan Stanley & Co. , Citigroup Global Markets Inc., RBC Capital Markets, , SMBC Nikko Securities America, Inc., and Truist Securities, Inc. are acting as joint book-running managers for the offering.

Ares Management (NYSE: ARES) has announced the pricing of its public offering of 27,000,000 shares of Series B Mandatory Convertible Preferred Stock at $50.00 per share. The offering is expected to close on October 10, 2024. Ares intends to use the net proceeds for the GCP Acquisition and general corporate purposes.

The Mandatory Convertible Preferred Stock will accumulate cumulative dividends at a rate of 6.75% per annum on the $50 liquidation preference. Unless previously converted or redeemed, each share will automatically convert into 0.2717 to 0.3260 shares of Ares' Class A Common Stock on October 1, 2027. Ares has granted underwriters a 30-day option to purchase up to an additional 3,000,000 shares.

Ares Management (NYSE: ARES) has announced the launch of an underwritten public offering of 27,000,000 shares of Series B Mandatory Convertible Preferred Stock. The company plans to grant underwriters a 30-day option to purchase up to 3,000,000 additional shares. The net proceeds will be used for:

• Partial payment of cash consideration for the acquisition of GLP Capital Partners 's international business (excluding Greater China operations)
• General corporate purposes, including debt repayment and strategic acquisitions

The Mandatory Convertible Preferred Stock will have a liquidation preference of $50 per share and will automatically convert into Ares' Class A Common Stock on or about October 1, 2027. Morgan Stanley and Citigroup are acting as joint bookrunning managers for the offering.

Ares Management (NYSE: ARES) has announced its acquisition of GCP International for $3.7 billion, excluding operations in Greater China. The deal includes $1.8 billion in cash and $1.9 billion in Ares Class A Common Shares. This strategic move will establish Ares Real Estate as a leading global platform, doubling its assets under management to approximately $96 billion across North America, Europe, Asia, and Latin America.

GCP International, with $44 billion in AUM as of June 30, 2024, specializes in new economy sectors like industrial, digital infrastructure, and self-storage. The acquisition is expected to be modestly accretive to Ares' after-tax realized income per share in the first full calendar year, with higher accretion anticipated in future years. The transaction is set to close in the first half of 2025, subject to regulatory approvals and closing conditions.