Ares Management (ARES) FY2024 10-K Annual Report

Filed: Feb 27, 2025
Financials
Investment AdviceSEC EDGAR

Ares Management (ARES) 10-K annual report for fiscal year 2024, filed with SEC EDGAR on Feb 27, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Ares Management FY2024 10-K Analysis

Business Overview

  • Core business: Global alternative investment manager focusing on Credit, Real Assets, Private Equity, Secondaries with $484.4B AUM and 3,200+ employees in 15+ countries
  • New segment composition in 2024: Special opportunities strategy moved from Private Equity to Credit as opportunistic credit
  • Strategic expansion via acquisition of Walton Street Capital Mexico, integrating into North American real estate equity strategy
  • Capital raised $92.7B in 2024 with $70.4B from 660+ direct institutional investors, including 310+ new investors
  • Noteworthy: 85% of 2024 direct institutional fundraising came from existing investors re-upping or committing to new products

Management Discussion & Analysis

  • Revenue growth driven by AUM up 16% in 2024; raised $92.7B gross new capital; $81.0B AUM not yet fee-paying
  • Capital deployed $106.7B in 2024 vs $68.1B in 2023; capital available for investment $133.1B vs $111.4B prior year
  • No specific operating margin or profitability % figures disclosed in provided text
  • Best segment: private equity with increased deal value and favorable deal-making; worst: European real estate with volatility impacting recovery and negative returns (–6.5%)
  • Forward outlook: expectation for continued fundraising in NA, Europe, APAC; focus on multi-asset class products and disciplined capital deployment

Risk Factors

  • Regulatory risk: SEC oversight on CLO consolidation given 27 consolidated CLOs with $37.4 billion in IGAUM as of Dec 31, 2024
  • Macroeconomic threat: Market depreciation impacts SVV investment causing $474.9M carried interest reversal in Private Equity funds
  • Operational risk: Dependency on interest and fees from direct lending funds including ACE V and PCS II generating $153.2M and $131.1M carried interest respectively
  • Competitive risk: Private equity segment facing reversals from SVV lower stock price impacting carried interest by hundreds of millions
  • Financial risk: Convertible preferred stock dividends declared $22.8M in 2024, introducing additional capital structure complexity

Ares Management FY2024 Key Financial Metrics
XBRL

Revenue

$3.9B

+7.0% YoY

Net Income

$464M

-2.2% YoY

Net Margin

11.9%

-112bp YoY

ROE

13.1%

-1196bp YoY

Total Assets

$24.9B

+0.6% YoY

Operating Cash Flow

$2.8B

+1296.6% YoY

Source: XBRL data from Ares Management FY2024 10-K filing on SEC EDGAR. All figures in USD.

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