Ares Management reported $112.5 billion in assets under management as of March 31, up 5.7% from three months earlier and up 12.7% from a year earlier, according to the alternative investment firm's first-quarter earnings released Thursday.
Ares attributed its increase in AUM to gross new capital of $6.9 billion in the quarter, partially offset by $1.6 billion in redemptions. Net inflows were $6.4 billion for the quarter ended March 31.
Ares switched to a C-corporation from a publicly traded partnership effective March 1, making it the first alternative investment manager to make the switch following passage of the U.S. tax reform legislation.
Ares' credit business AUM was $77.3 billion as of March 31, up 7.8% from Dec. 31 and up 18.6% from March 31, 2017. Private equity AUM was $24.3 billion as of March 31, down 0.8% from three months earlier and down 1.6% from a year earlier. Real estate AUM was $10.9 billion as of March 31, a 6.9% rise from the end of the previous quarter and a 10.1% increase from the end of the year-earlier quarter.
Management fees were $189.5 million for the first quarter, up 1.7% from the fourth quarter and up 10.2% from the year-earlier quarter. Administrative and other fees were $12.5 million in the first quarter, down 6.7% from the prior quarter and down 13.2% from the quarter ended March 31, 2017.
GAAP net income was $40.9 million in the quarter, compared to $39.6 million in the previous quarter and a net loss of $41.1 million in the year-earlier quarter.
