Management Fees ($M)

15% increase (from $2,551.2M to $2,942.1M)

Management fees rose by 15% driven by increased fee-paying assets under management and capital deployment into direct lending and alternative credit funds. In FY 2023, a lower FPAUM base limited fee collection, which improved significantly in FY 2024 due to higher pre-incentive net investment income from various funds. " " "

Incentive Fees ($M)

24% increase (to $344.2M)

Incentive fees surged by 24% as fund performance improved, particularly in the U.S. and European direct lending sectors. The better performance compared to the previous year boosted the incentive fee component. " "

Fee-Related Performance Revenues ($M)

21% increase (from $167.3M to $202.7M)

Fee-related performance revenues went up by 21% due to the higher incentive fee income recognized from an open-ended core alternative credit fund, reflecting improved performance compared to FY 2023. " "

Realized Net Performance Income ($M)

6% increase (from $111.8M to $118.4M)

Realized net performance income increased by 6% as stronger fund performance in FY 2024 yielded better results than in FY 2023, highlighting a modest but steady improvement. " "

Realized Net Investment Income ($M)

Shift from +$16.5M to –$1.7M

Realized net investment income turned negative in FY 2024 compared to a positive $16.5M in FY 2023, primarily due to lower realized gains on investments despite overall operational improvements. " "

Gross Capital Deployment ($B)

57% increase (from $55.7B to $87.6B)

Gross capital deployment surged by 57% as Ares aggressively expanded investments into U.S. and European direct lending, alternative credit, and liquid credit strategies. The previous lower capital allocation in FY 2023 set the stage for this significant ramp-up. "

Assets Under Management (AUM) ($B)

16% increase (from $299.4B to $348.8B)

AUM grew by 16% as a result of successful fundraising and a more robust deployment of capital, building on prior period figures where market confidence was lower. " "

Fee-Paying AUM (FPAUM) ($B)

13% increase (from $185.3B to $209.2B)

FPAUM increased by 13% reflecting an improvement in asset quality and fee generation capabilities in FY 2024, an area that had seen more modest growth in prior periods. " "

Compensation and Benefits ($M)

11% increase (to $1,418.5M)

Compensation and benefits expenses increased by 11% due to higher headcount and increased performance-related compensation, aligning with the company’s intensified operational activities in FY 2024 compared to FY 2023. " "

General, Administrative & Other Expenses ($M)

24% increase (to $500.6M)

General, administrative, and other expenses grew by 24% as a result of increased costs from acquisitions, expanded marketing efforts, and the development of new corporate headquarters compared to the prior year’s cost structure. " "

Acquisition-Related Costs ($M)

Increase of $45.4M

Acquisition-related costs rose by $45.4M mainly due to strategic acquisitions like the GCP and WSM deals, marking a more aggressive growth strategy relative to FY 2023. "

Interest & Dividend Income ($M)

123% increase (to $43.1M)

Interest and dividend income jumped by 123% driven by higher yields on investments, reflecting a notable improvement in investment income generation compared to the previous period. "

Non-Cash Impairment Charges ($M)

Reduction from $78.7M to $8.9M

Non-cash impairment charges decreased significantly, from $78.7M in FY 2023 to $8.9M in FY 2024, indicating a more favorable reassessment of the fair value of management contracts compared to the prior adverse evaluation. "

Wealth Management Growth

Strong momentum noted in Q4 2024 with record equity and AUM inflows ( " " ); Q3 2024 showed consistent increases in AUM and diversified product expansion ( " ); Q2 2024 emphasized product launches and generational wealth transfer ( " " )

Q1 2025 highlighted record capital gathering with $5 billion AUM raised, the launch of new products, and steady investor behavior ( " )

Consistent robust growth with ongoing innovation and diversification, reinforcing a long‐term positive outlook.

International Expansion

Q4 2024 highlighted significant capital flows from Europe and Asia ( " " ); Q3 2024 mentioned leveraging global distribution partners; Q2 2024 discussed 30–35% of flows coming from outside the U.S. ( " )

Q1 2025 described active franchise expansion outside the U.S., with over 30% demand now from European and Asian markets and optimism in Japan and Europe ( " " )

Sustained momentum with an emphasis on broadening geographic reach and capturing growing non‑U.S. investor interest.

European Market Dynamics & Geopolitical Risks

Q4 2024 focused on Europe’s resilience, better-than‑expected economic performance, and moderated geopolitical exposures ( " ); Q3 and Q2 had little detailed discussion regarding these factors

Q1 2025 noted modest acceleration in deployment in Europe with rising investor appetite, alongside concerns over tariffs and broader geopolitical volatility ( " , " , " )

Emerging focus with cautious optimism—while Europe remains attractive, new geopolitical factors (e.g. tariffs) are introducing additional uncertainty.

Capital Deployment & Origination Capabilities

Q4 2024 reported significant year‑over‑year deployment growth and a comprehensive global origination team ( " , " , " ); Q3 2024 highlighted record quarterly global deployment and diversified strategies ( " , " ); Q2 2024 reinforced strong pipelines and origination advantages ( " , " )

Q1 2025 reported its highest first‑quarter deployment at $31 billion with improved gross‑to‑net ratios and flexible, opportunistic origination across multiple asset classes ( " )

Consistently strong performance; record deployment numbers and diversified origination capabilities continue to drive the business despite market shifts.

Fee‑Related Earnings Margin Trends & Pressures

Q4 2024 showed FRE margins around 40–41.5% with supplemental distribution fees causing headwinds ( " , " ); Q3 2024 noted similar margins with fee pressures lowering FRE margins by 107 bps, yet expecting expansion; Q2 2024 highlighted a 130‑bps improvement and outlook for further gains ( " , " )

Q1 2025 reported FRE margins of 41.5% with temporary drag from integration (GCP) but an outlook of 0–150 basis points margin expansion in 2025 ( " , " )

Margins remain under pressure from distribution expenses and integration challenges; however, long‑term expansion is anticipated as scale and synergies are realized.

Private Credit Quality & Direct Lending Risks

Q4 2024 showed strong U.S. direct lending quality with low nonaccruals and robust portfolio growth ( " , " ); Q3 2024 and Q2 2024 featured conservative LTVs, healthy EBITDA growth, and low nonaccrual levels ( " , " , " )

Q1 2025 emphasized very low nonaccruals (1.5%), favorable LTVs (42% in U.S., 48% in Europe), and over 11% YoY EBITDA growth, indicating robust portfolio strength ( " , " )

Stable and resilient credit quality maintained across cycles, supporting a defensive posture in uncertain economic conditions.

Integration & Technological Investment Challenges

Q4 2024 discussed GCP International integration and opportunities in digital infrastructure and data centers ( " , " , " ); Q3 and Q2 2024 did not mention these topics explicitly

Q1 2025 noted the ongoing integration of GCP, with expected synergy realization—though technological investment challenges were only implicit, reflecting a focus on refinement ( " )

An emerging strategic focus as recent acquisitions drive integration efforts and tech-enabled platforms, indicating a gradual shift toward overcoming operational challenges.

Macro‑Economic Conditions & Interest Rate Impacts

Q4 2024 described an improving macro backdrop with lower rates benefiting capital markets ( " , " ); Q3 2024 noted a constructive environment and anticipatory rate cuts aiding valuations ( " ); Q2 2024 highlighted an improving real estate and credit landscape with rate cut expectations ( " , " )

Q1 2025 cited increased market volatility amid geopolitical events and tariff announcements; lower rates are benefiting parts of the real estate market despite construction cost concerns ( " , " )

Overall improvement with intermittent volatility—interest rate cuts and stabilizing conditions support growth, even as geopolitical uncertainties add short‑term challenges.

Real Estate Investment Trends

Q4 2024 forecast higher deployment and improved fundraising in real estate ( " , " ); Q3 2024 showcased strong transaction activity, key acquisitions, and robust deal pipelines ( " , " ); Q2 2024 emphasized recovery in industrial, multifamily, and digital infrastructure sectors ( " , " )

Q1 2025 reported strong real estate fundraising (e.g. $3.1B in commitments, launch of a Japan data center fund), with tariffs potentially boosting asset values and spurring activity ( " , " )

Upward momentum continues with strategic focus on digital and data center opportunities alongside traditional sectors, supported by favorable market dynamics and increasing deal flow.

Fundraising & Capital Raising Momentum

Q4 2024 described record quarterly and annual fundraising achievements that broke previous records ( " , " ); Q3 2024 and Q2 2024 underscored robust inflows across institutional, wealth, and managed account channels ( " , " , " , " )

Q1 2025 showcased record fundraising across multiple strategies, with strong institutional and private wealth inflows and diverse product performance ( " , " )

Sustained and record‑breaking momentum with diverse channels driving consistent high levels of capital inflows, underscoring investor confidence.

Secondary Market Performance & Fee Structuring Complexities

Q4 2024 discussed significant secondary investment activity and noted fee‐related pressures; Q3 2024 elaborated on performance lags and fee structures affected by supplemental distribution fees ( " , " , " ); Q2 2024 highlighted robust secondary opportunities with evolving fee harmonization ( " , " )

Q1 2025 reported positive market dynamics in secondaries with expanded strategies and flexible fee structuring, though fee complexities were not a primary focus ( " )

Generally stable performance in secondaries with persistent fee complexities that are gradually being normalized as the market matures and compensation frameworks adjust.

Competitive Pressures in Lending Markets

Q4 2024 emphasized bank partnerships and a differentiated lending approach to mitigate competition ( " ); Q2 2024 underscored origination advantages and structural discipline to overcome competitive challenges ( " , " ); Q3 2024 did not directly address competitive pressures

Q1 2025 detailed initial spread widening (50–75 bps) during price discovery followed by moderated competitive pressures, notably in European markets ( " )

Competitive pressures remain present, but strategic initiatives (such as strong incumbency, partnership models, and diversified origination) effectively mitigate risks and adapt to evolving market dynamics.

Distressed Asset Opportunity Dynamics

Q2 2024 provided a detailed discussion on phases of distressed opportunities amid the regional banking crisis, outlining a transition from early-phase resolution to sustained opportunities ( " )

Q1 2025 did not mention distressed asset opportunities explicitly

The focus on distressed assets has receded, indicating that the window of acute distress may be closing as broader market conditions stabilize.

Cyclical Behavior in Private Wealth Flows

Q4 2024 noted seasonal deployment patterns (slower in Q1/Q3, stronger in Q2/Q4); Q3 2024 mentioned strong inflows in October without delving into cyclicality; Q2 2024 did not specifically discuss cycle patterns ( " , " )

Q1 2025 expanded on retail investor pro‑cyclicality, explaining that while traditionally retail flows are pro‑cyclical, early signs suggest a potential flattening of these swings ( " )

Cyclical patterns remain inherent in retail wealth flows, yet efforts to temper pro‑cyclical behaviors are showing early, albeit uncertain, indications of reduced volatility over the long term.