MONEY MANAGEMENT

Ares Management’s AUM declines 2% in quarter, but up 1.7% over 2016

Ares Management reported $95.3 billion in assets under management, down 2% from the end of the third quarter but up 1.7% from Dec. 31, 2015, according to the alternative investment manager’s earnings report.

The firm reported $1.3 billion in gross new capital in the quarter and $13.9 billion in gross new capital during the year ended Dec. 31. Ares invested $2.8 billion in the quarter and $10.2 billion in the year ended Dec. 31.

AUM growth was partially offset by distributions and redemptions of $7.1 billion in the year.

Ares’ credit AUM was $60.5 billion as of Dec. 31, down 2.4% from three months earlier and flat from a year ago. Private equity AUM was $25 billion as of Dec. 31, flat from three months earlier and up 8.7% from Dec. 31, 2015. Real estate AUM was $9.8 billion at the end of the quarter, down 5.8% from Sept. 30 and down 4.9% from a year earlier.

Net income under GAAP was $34 million in the quarter, down from $43.3 million in the third quarter and $185 million in the fourth quarter of 2015. Management fees were $161.5 million, down from $163.6 million in the third quarter and relatively flat from $161.1 million in the fourth quarter of 2015. Performance fees were $180.2 million in the quarter, up from $164.5 million in the third quarter and a $9.7 million loss in the fourth quarter of 2015. Administrative and other fees totaled $16.5 million in the quarter, up from $7.4 million in the third quarter and $8.2 million in the year-over-year quarter.