Ares Management Corp Reports Robust Year-Over-Year Growth in Q4 and Full Year 2023
GAAP Net Income: $174.0 million for Q4 and $474.3 million for the full year.
After-tax Realized Income: $400.4 million for Q4 and $1,185.7 million for the full year.
Fee Related Earnings: $368.7 million for Q4 and $1,163.7 million for the full year.
Dividend: Quarterly dividend declared at $0.93 per share, payable on March 29, 2024.
Assets Under Management: Approximately $419 billion as of December 31, 2023.
Fundraising: $21 billion raised in Q4 and over $74 billion for the full year.
On February 8, 2024, Ares Management Corp (NYSE:ARES) released its 8-K filing, detailing a strong financial performance for both the fourth quarter and the full year ended December 31, 2023. The company, a leading global alternative investment manager, reported significant year-over-year growth in key financial metrics, reflecting a robust end to the year.
Financial Performance Highlights
ARES reported a GAAP net income attributable to Ares Management Corporation of $174.0 million for the fourth quarter and $474.3 million for the full year. The after-tax realized income stood at $400.4 million for the quarter and $1,185.7 million for the year, indicating a strong performance in generating profits. Fee-related earnings, a critical measure of profitability for asset management firms, were reported at $368.7 million for the quarter and $1,163.7 million for the full year.
Michael Arougheti, CEO and President of Ares, highlighted the company's significant growth in financial metrics, continued fundraising momentum, and accelerated investment activity. Jarrod Phillips, CFO of Ares, noted the record level of available capital, amounting to $111 billion, which positions the company to invest opportunistically and drive further growth.
Strategic Developments and Shareholder Returns
In line with its financial achievements, ARES declared a quarterly dividend of $0.93 per share, underscoring its commitment to shareholder returns. The company also announced a Dividend Reinvestment Program, effective for the upcoming quarterly dividend, demonstrating its focus on long-term value creation for its shareholders.
ARES's asset under management (AUM) reached approximately $419 billion, reflecting the company's expansive investment platform and its ability to attract significant capital. The company's fundraising efforts were particularly noteworthy, with $21 billion raised in the fourth quarter and over $74 billion for the year, marking its second-highest level ever.
Looking Ahead
The company's management expressed optimism about the future, citing growing contributions from recent investments made to expand the investment platform. With a substantial amount of capital available for deployment, ARES is well-positioned to capitalize on market opportunities and enhance its financial metrics further.
Investors and stakeholders can access a detailed presentation of ARES's fourth quarter and full year 2023 results on the company's website, providing deeper insights into its performance and strategic direction.
As Ares Management Corp (NYSE:ARES) continues to navigate the complexities of the global investment landscape, its latest earnings report reflects a strong foundation for sustained growth and a commitment to delivering value to its clients and shareholders alike.
Explore the complete 8-K earnings release (here) from Ares Management Corp for further details.
This article first appeared on GuruFocus.
