Ares Management Corp, Ares reported 47.2 million USD in net income on 1.1 billion USD in revenues in 1Q 2025 compared to 73 million USD in net income on 707.3 million USD in revenues in 1Q 2024.
Ares' assets under management stand at 545.9 billion USDs. 359.1 billion USDs of which are in private credit, 124.2 billion are in real estate, 24.7 billion USDs are in private equity, 31.3 billion USDs are in secondaries and 6.6 billion USDs are in other businesses.
Private credit is in a boom phase globally and Ares' 359.1 billion USDs of assets in private credit put it in the top 3 worldwide in private credit assets managers. Mid capitalization technology companies borrow at interest rates of 7% to 14 % which feeds the private credit business. Artificial intelligence, AI continues to be a dominant investment theme for Ares.
Ares market capitalization stands at 54.13 billion USDs. Ares Management is undervalued. Ares' intrinsic worth is 120 billion USD, according to Wolfteam Ltd.'s projections and estimates.
Below is Ares Management 1st Quarter 2025 earnings statement:
$ in thousands, except share data 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
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