Ares Management (ARES) Q4 2024 earnings summary

Executive summary

• Achieved record financial and strategic milestones in 2024, including all-time highs in AUM, fundraising, deployment, management fees, and realized income.

• Reported GAAP net income of $177.3M for Q4-24 and $463.7M for FY-24, with EPS of $0.72 and $2.04, respectively.

• Expanded executive management with new co-presidents and broadened investment platform across institutional, wealth, and insurance segments.

• Significant organic and inorganic investments, including the pending GCP International acquisition and completed Walton Street Capital Mexico acquisition.

• Celebrated 10-year IPO anniversary and 20-year anniversary of the publicly traded BDC.

Financial highlights

• Assets under management (AUM) grew 16% year-over-year to $484.4 billion; fee-paying AUM rose nearly 12% to $293 billion.

• Management fees reached a record $781 million in Q4; full-year management fees and FRE increased 15% and 17%, respectively.

• Realized income for Q4 was a record $476.1 million; full-year realized income exceeded $1.4 billion, up 16% from 2023.

• Raised $93 billion in new funds during 2024, with Q4 raising $28.3 billion.

• Quarterly dividend declared at $1.12 per share for Class A and non-voting common stock.

Outlook and guidance

• Management expects continued strong growth in 2025, with transaction activity anticipated to expand year-over-year.

• Fundraising in 2025 projected to be only modestly lower than 2024 despite absence of two largest campaign funds.

• European-style net realized performance income expected to more than double in 2025 to $225–$275 million, with further growth in 2026.

• $81–$95 billion of AUM not yet paying fees is available for future deployment, with potential to generate significant incremental annual management fees.

• Effective tax rate on realized income anticipated at 11%-15% for 2025.