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Alternatives

Ares Management assets up 1.5% for quarter, 8.5% for year

Ares Management reported $105.6 billion in assets under management as of Sept. 30, a 1.5% increase from the end of the prior quarter and up 8.5% from Sept.30, 2016, the alternative investment firm's third-quarter earnings release stated.

The firm attributed the increase partially to $5.5 billion in gross new capital commitments — $2.9 billion for equity strategies and $2.6 billion for debt strategies. The new commitments were offset by $2.2 billion in distributions and $1.2 billion in redemptions, primarily in private equity and real estate funds that were past their reinvestment periods. The new commitments were also offset by $1.9 billion in reduced leverage, primarily due to paying down collateralized loan obligations and the dissolution of a senior direct lending program of Ares' business development company, Ares Capital Corp.

Ares' credit business AUM was $70.5 billion as of Sept. 30, up 4.6% from June 30 and up 13.7% from a year earlier. The firm's private equity AUM was $24.6 billion as of Sept. 30, a 4.7% drop from the end of the previous quarter and a slight downward shift of 1.2% from Sept. 30, 2016. Real estate AUM was $10.5 billion as of Sept. 30, up 2.8% from June 30 and flat year-over-year.

Management fees were $183.2 million in the quarter, an 1.3% increase from $180.8 million in the prior quarter and up 12% from $163.6 million a year earlier. Performance fees were $87 million, a 74.3% drop from $338 million in the prior quarter and down 47.1% from $164.5 million in the year-earlier quarter. Administrative and other fees were $13.5 million, down 10.5% from $15.1 million in the quarter ended June 30 but up 2.4% from $7.4 million in the year-earlier period.

GAAP net income was $27.8 million in the quarter, compared to $49.9 million in the previous quarter and $43.3 million in the quarter ended Sept. 30, 2016.