Ares Management 1 Quarter 2025 Earnings Comment

Ares Management Corp reported net income of 47.2 million USD for 1Q 2025 compared with 73 million USD net income for 1Q 2024. 

Revenues, though were much stronger in 1Q 2025 with 1.1 billion USD in revenues for 1Q 2025 compared with 707.4 million USD for 1Q 2024. 

With total assets under management of 545.9 billion USDs distributed in credit with 359.1 billion USDs, real assets with 124.2 billion USDs and 24.7 billion USDs in private equity Ares Management is one of the global leaders in the alternative asset management industry.

Private credit, where Ares is a top global company is in a boom phase and Ares is poised to ride the up wave in a great and profitable way which will unlock tens of billions of USDs of additional value for Ares Management's shareholders.

In short, due to the global booming private markets Ares Management is undervalued, according to Wolfteam Ltd.'s projections and estimates.

Below is Ares Management's 1Q 2025 earnings statement:

 $ in thousands, except share data  Three months ended March 31, 2025 2024
Revenues
Management fees $816,987 $687,692
Carried interest allocation 160,008 (32,478)
Incentive fees 32,048 8,667
Principal investment income 21,998 7,050
Administrative, transaction and other fees 57,764 36,432
Total revenues 1,088,805 707,363
Expenses
Compensation and benefits 657,125 412,951
Performance related compensation 122,633 (50,532)
General, administrative and other expenses 227,914 170,928
Expenses of Consolidated Funds 6,656 5,146
Total expenses 1,014,328 538,493
Other income (expense)
Net realized and unrealized gains on investments 268 10,516
Interest and dividend income 17,656 5,382
Interest expense (36,387) (37,824)
Other income (expense), net (10,714) 270
Net realized and unrealized gains on investments of Consolidated Funds 88,406 34,424
Interest and other income of Consolidated Funds 160,072 257,276
Interest expense of Consolidated Funds (152,740) (207,866)
Total other income, net 66,561 62,178
Income before taxes 141,038 231,048
Income tax expense 17,537 27,233
Net income 123,501 203,815
Less: Net income attributable to non-controlling interests in Consolidated Funds 55,977 66,716
Net income attributable to Ares Operating Group entities 67,524 137,099
Less: Net income attributable to redeemable interest in Ares Operating Group entities 316 73
Less: Net income attributable to non-controlling interests in Ares Operating Group entities 20,038 63,999
Net income attributable to Ares Management Corporation 47,170 73,027
Less: Series B mandatory convertible preferred stock dividends declared 25,313 —
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders $21,857 $73,027
Net income per share of Class A and non-voting common stock:
Basic $0.00 $0.33
Diluted $0.00 $0.33
Weighted-average shares of Class A and non-voting common stock:
Basic 209,350,849 192,622,609
Diluted 209,350,849 192,622,609
GAAP Statements of Operations