Ares Management LP started trading earlier this month. It was the first initial public offering of a private equity firm since Carlyle Group in May 2012. Here is an overview of the firm’s business and investment strategies.

Ares stock slumped in its trading debut on May 2 on the New York Stock Exchange.

Ares reports its assets under management grew 31% annually during the past 10 years and 24% in the past five years.

All amounts are in U.S. billions as of Dec. 31, 2013
Source: Company filing

Tradable credit strategies accounted for 37.7% of AUM, closely followed by direct lending at 37.1%. Private equity and real estate assets were 13.3% and 11.9% of total AUM.

All amounts are in U.S. billions as of Dec. 31, 2013
Source: Company filing

Fund performance metrics for the year ended Dec. 31, 2013
Tradable credit group Net annualized return (%)
AUM ($ millions) 3-year 5-year Since inception
ECO I $2,632 11.0% 27.4% 1.9%
CSF $1,732 9.6% 15.9% 14.5%
AELIS VI $850 15.2% n/a 16.6%
ASIP II $820 7.4% n/a 11.1%
Direct lending group Net annualized return (%)
AUM ($ millions) 3-year 5-year Since inception
ARCC $9,658 12.3% 38.4% 14.1%
ACE I $780 7.2% 5.4% 3.1%
Private equity group Net annualized return (%)
AUM ($ millions) 3-year 5-year Since inception
ACOF III $3,661 17.9% 25.5% 24.7%
ACOF II $1,179 25.6% 24.4% 14.6%
Real estate group Net annualized return (%)
AUM ($ millions) 3-year 5-year Since inception
Euro RE Fund III $1,263 9.2% 8.8% 5.8%

Direct institutional investors accounted for 52% of assets. Of that, pension funds made up 37%, followed by sovereign wealth funds with 19%.