ARES - Ares Management Q1 earnings miss even with solid growth in AUM management fees
2023-04-28 09:50:56 ET
Ares Management ( NYSE: ARES ) stock drifted down as much as 1.6% in Friday morning trading after the company's first-quarter earnings fell short of Wall Street expectations and dropped from the prior quarter, despite strong growth in management fees.
“With $16 billion in gross inflows in the first quarter, we are off to a strong start with our fundraising pipeline as we continue to experience strong investor demand for our private capital offerings,” said CEO and President Michael Arougheti.
Q1 adjusted EPS of $0.71, trailing the average analyst estimate of $0.81, fell from $1.21 in the previous quarter and rose from $0.65 a year ago.
Assets under management advanced to $360.3B from $352.0B in Q4 2022 and +11% from Q1 of last year, partly driven by commitments to its U.S. direct listing funds.
Funds managed by its Credit Group closed around $2.1B in U.S. direct lending commitments across 35 transactions during Q1. That compares with $8.3B in U.S. direct lending commitments across 50 transactions during Q4 2022.
Total gross invested capital was $12.9B vs. $21.8B in Q4 2022 and $16.0B in Q1 2022.
Management fees of $602.6M increased from $590.1M in the previous quarter and from $482.9M a year before. Fee-related earnings came in at $254.6M, down from $335.7M in Q4 2022 and up from $205.7M in Q1 2022.
Conference call at 11:00 a.m. ET.
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Ares Management Q1 earnings miss even with solid growth in AUM, management fees