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MONEY MANAGEMENT

Ares Management reports 4.7% AUM gain in quarter

Ares Management reported $99.8 billion in assets under management as of March 31, up 4.7% from Dec. 31 and up 6.6% from March 31, 2016, said the alternative investment manager's earnings report released Monday.

Ares had $3.1 billion in gross new capital in the quarter with $2.5 billion in net inflows. The firm invested $3.6 billion in the quarter. Ares Capital Corp.'s acquisition of business development company American Capital in January added $3.6 billion of AUM in the quarter.

AUM growth was partially offset by distributions and redemptions of $1.8 billion.

Ares' credit AUM was $65.2 billion as of March 31, up 7.8% from the end of the previous quarter and up 11.8% from a year-earlier. Private equity AUM totaled $24.7 billion, down 1.2% from three months earlier and down 1.6% from March 31, 2016. Real estate AUM was $9.9 billion as of March 31, up 1% from Dec. 31 and down 2.9% from a year earlier.

Ares reported a $41 million net loss under GAAP in the first quarter, compared to a net gain of $34 million in the previous quarter and a $3.1 million net loss in the first quarter of 2016. The $41 million net loss in the first quarter includes a $275.2 million one-time payment related to its acquisition of American Capital.

Management fees were $172 million in the quarter, up from $161.5 million in the fourth quarter and up from $158.4 million in the first quarter of 2016.

Performance fees were $55.2 million, down from $180.2 million in the previous quarter and a $29.9 million loss in the year-earlier quarter.

Administrative and other fees totaled $14.4 million, down from $16.5 million in the fourth quarter, and up from $7.5 million in the year-earlier quarter.