Ares Management reported $95.3 billion in assets under management as of June 30, up 2% from three months earlier and up 9% from a year earlier, said the alternative investment firm's earnings statement.
Ares raised $4.4 billion in gross new capital in the second quarter and $24.7 billion in gross new capital commitments over the past 12 months. The quarterly AUM growth was partially offset by distributions of $1.5 billion, primarily in private equity and real estate funds, and a change in leverage of $1.4 billion from the pay down of loans and repayment of convertible notes by the firm's business development company, Ares Capital Corp.
Credit was Ares' largest business segment at $62.1 billion, up 4% from the end of the first quarter and down 1% year-over-year. Ares' private equity AUM was $23 billion as of June 30, down 1% from March 31 and up 56% from June 30, 2015. Ares real estate business was relatively flat in all three periods with $10.1 billion as of June 30, down from $10.2 billion three months earlier but up from $10 billion a year earlier.
Net income under GAAP was $37.6 million in the second quarter, up from a GAAP net loss of $3.1 million for the three months ended March 31 and up from net income of $12.1 million in the three months ended June 30, 2015. Management fees were $158.5 million in the second quarter, up from $156.6 million in the second quarter of 2015. Performance fees were $203.2 million in the second quarter, up from $77.6 million in the three months ended June 30, 2015. Administrative and other fees were $7.9 million in the second quarter, up from $6.9 million in the year-earlier quarter.
The increase in management fees was due to Ares' launch of four collateralized loan obligations and 28 funds in the year ended June 30. This was offset by Ares' agreement to waive management fees for Ares Corporate Opportunities Fund II effective Jan. 1 in exchange for a one-year extension of the fund's term.
