Ares posts mixed Q1 results as dry powder hits record high
Ares Management missed analysts’ expectations with net income of $73m ($58m) in the first quarter, despite a rise in assets under management (AUM) and “robust” fundraising activity.
The alternative asset management giant, which operates across a range of segments including credit, private equity, real assets and secondaries, posted earnings per share of $0.33 in the first quarter, below consensus estimates of $0.92.
Net income of $73m fell below expectations of $180.15m, amid a muted quarter for M&A-driven lending.
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The decline in earnings came despite a 19 per cent year-on-year rise in AUM to $428.3m.
Ares raised $17.4bn over the quarter, led by $14.2bn in credit.
The firm’s available capital – known as ‘dry powder’ – increased by 29 per cent year-on-year to a record high of $114.6bn.
Chief financial officer Jarrod Phillips said: “With a record amount of available capital at nearly $115bn along with 28 per cent growth in our AUM not yet paying fees, we believe we have significant capacity for growth when there is a return to higher levels of transaction activity.”
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Chief executive and president Michael Arougheti heralded strong growth across key financial metrics, noting the company’s higher deployment and attractive investment performance.
“Our portfolios continue to perform well and we are finding compelling investment opportunities across many segments of our expanding global platform,” he added.
Separately, Ares announced that it closed $9.3bn in new US direct lending commitments across 71 deals during the first quarter, bringing its annual total for that division to $29.6bn.
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