Ares Management AUM up 4.6% in Q1, 21.5% for year

Ares Management has $136.7 billion in assets under management as of March 31, up 4.6% from the end of the prior quarter and 21.5% year-over-year, according to the alternative investment firm's earnings report released Thursday.

Ares attributed the increase over the 12 months to fundraising, primarily U.S. and European direct lending, syndicated loans and alternative credit funds.

"Demand for alternative assets remains robust and our broad platform continues to resonate with our clients with approximately $6.5 billion in gross capital added during the first quarter," President and CEO Michael Arougheti said in a news release.

Ares' largest business by AUM was credit with $101.1 billion in assets as of March 31, up 5.4% from Dec. 31 and 30.7% from March 31, 2019. Private equity AUM was $23.8 billion, a 1.3% increase from the end of the prior quarter and 2.1% from a year earlier. Real estate AUM was $11.8 billion, increasing 4.4% from Dec. 31 and 8.3% year-over-year.

GAAP management fees were $224.7 million in the first quarter, compared to $214.4 million in the fourth quarter and $189.5 million in the first quarter of 2018. Administrative, transaction and other fees were $9.7 million for the first quarter, down from $14.3 million for the prior quarter and $12.5 million in the year-earlier quarter.

Incentive fees were $16.8 million in the first quarter, down from $49.7 million in the fourth quarter and $5.1 million in the first quarter of 2018. Principal investment income was $28.8 million in the quarter, up from a loss of $771,000 in the prior quarter and $4.9 million principal investment income in the year-earlier quarter.

Ares had a GAAP net income of $44.9 million in the first quarter, compared to $11.9 million in the fourth quarter and $40.9 million year-over-year.