Mission Statement, Vision, & Core Values (2024) of Ares Management Corporation (ARES).

An Overview of Ares Management Corporation (ARES)

General Summary of Ares Management Corporation

Ares Management Corporation (NYSE: ARES) was founded in 1997 and has established itself as a leading global alternative asset manager. The company specializes in credit, private equity, and real assets, offering a wide array of investment solutions to its clients. As of 2024, Ares has approximately $463.8 billion in assets under management (AUM), reflecting a significant growth trajectory driven by strategic investments and strong market demand for alternative assets.

The company's primary products include:

• Credit strategies, which encompass direct lending, liquid credit, and opportunistic credit.
• Private equity investments focusing on corporate private equity and various sectors.
• Real assets management, covering real estate and infrastructure investments.

As of 2024, Ares Management Corporation reported total revenues of $2.63 billion, marking a robust performance in its core business segments.

Company's Financial Performance in the Latest Financial Reports

In the latest financial report for the three months ended September 30, 2024, Ares Management Corporation achieved:

• Total revenues: $1.13 billion, a 68% increase compared to $671.3 million in the same period of 2023.
• Management fees: $753.6 million, an 18% increase year-over-year.
• Carried interest allocation: $277.7 million, significantly up from a loss of $28.1 million in the previous year.
• Net income: $280.7 million, compared to $197.0 million in Q3 2023, representing a 42% increase.

For the nine months ended September 30, 2024, the company reported:

• Total revenues: $2.63 billion, up 2% from $2.58 billion in the same period of 2023.
• Net income: $760.7 million, compared to $736.5 million in the previous year.
• Net income attributable to Ares Management Corporation Class A and non-voting common stockholders: $286.4 million, down from $300.4 million in 2023.

Ares continues to demonstrate strong operational efficiency with a total expense of $854.9 million in Q3 2024, compared to $561.0 million in Q3 2023, mainly driven by increased compensation and benefits linked to performance-related compensations.

Introduction to Ares Management Corporation as a Leader in the Industry

Ares Management Corporation is recognized as one of the leading alternative asset managers globally, leveraging its diversified investment strategies and strong market presence. As of 2024, Ares has expanded its reach across various sectors and geographies, positioning itself favorably amidst increasing competition in the asset management industry.

The company's commitment to delivering strong risk-adjusted returns has earned it a reputable standing among institutional investors and high-net-worth individuals alike. With a focus on innovation and client service, Ares continues to attract significant capital flows, evidenced by its recent acquisition of GLP Capital Partners, which added approximately $44 billion in AUM to its portfolio.

To explore further why Ares Management Corporation stands out in the competitive landscape of alternative asset management, detailed insights into their strategic direction and performance metrics are available below.

Mission Statement of Ares Management Corporation (ARES)

Mission Statement of Ares Management Corporation (2024)

Ares Management Corporation's mission statement emphasizes its commitment to delivering superior investment performance and value for its clients through a diverse range of investment strategies. This mission serves as a guiding principle for the firm's long-term goals, focusing on integrity, innovation, and excellence in asset management.

Core Component 1: Investment Performance

Ares Management strives to achieve superior investment performance across its various investment strategies, which include credit, private equity, and real assets. As of September 30, 2024, the firm reported total Assets Under Management (AUM) of approximately $447.2 billion, reflecting a strong growth trajectory driven by its strategic investments and client-focused approach. This performance is bolstered by the firm's ability to generate consistent returns, with a reported net income attributable to Ares Management Corporation Class A and non-voting common stockholders of $286.4 million for the nine months ended September 30, 2024.

Core Component 2: Client Value

The mission underscores the importance of delivering value to clients through tailored investment solutions. Ares Management's approach involves a deep understanding of client needs and market dynamics. In the nine months ended September 30, 2024, management fees totaled $2.16 billion, showcasing the firm's ability to attract and retain clients by providing high-quality investment management services.

Core Component 3: Integrity and Innovation

Integrity and innovation are fundamental to Ares Management's mission. The firm is committed to adhering to the highest ethical standards while continuously seeking innovative strategies to enhance its investment offerings. In October 2024, Ares announced its intent to acquire GLP Capital Partners Limited, a move expected to enhance its global reach and capabilities in alternative asset management, with an acquisition valued at approximately $3.7 billion.

Vision Statement of Ares Management Corporation (ARES)

Vision Statement Overview

Ares Management Corporation's vision statement emphasizes its commitment to being a leading global alternative asset manager, focused on delivering exceptional value to clients through innovative investment solutions and a strong emphasis on sustainability.

Commitment to Client Success

Ares Management prioritizes client success, aiming to build long-term relationships by delivering superior investment performance. As of September 30, 2024, Ares reported assets under management (AUM) of $463.8 billion, reflecting a significant increase from $394.9 billion at the same time in 2023. This growth underscores Ares's effectiveness in attracting and retaining clients through its investment strategies.

Innovative Investment Solutions

Ares Management is dedicated to providing innovative investment solutions across various asset classes, including credit, private equity, and real assets. The company's diverse strategy is reflected in its significant investment performance metrics. For instance, as of September 30, 2024, the Credit Group alone managed $335.3 billion in AUM, while the Real Assets Group and Private Equity Group managed $70.4 billion and $24.5 billion, respectively.

Sustainability and ESG Focus

Ares Management integrates environmental, social, and governance (ESG) principles into its investment framework, reflecting its vision of sustainable investing. The company has committed to achieving ESG-related targets, which have also positively impacted its cost of capital. This strategic focus is part of Ares's broader vision to create long-term value for stakeholders while promoting responsible investment practices.

Global Reach and Impact

As of 2024, Ares Management operates in multiple regions, including North America, Europe, and Asia-Pacific, demonstrating its global reach. The firm has recently expanded its footprint through strategic acquisitions, such as the acquisition of GLP Capital Partners Limited's international business for approximately $3.7 billion, including both cash and equity considerations. This move is aimed at enhancing Ares's capabilities in managing a broader range of assets.

Conclusion of Vision Statement Elements

The vision statement of Ares Management Corporation as of 2024 encapsulates a commitment to client success, innovative investment strategies, a strong sustainability focus, and a global operational footprint. These elements are pivotal in guiding the company's strategic direction and reinforcing its position as a leader in the alternative asset management sector.

Core Values of Ares Management Corporation (ARES)

Integrity

Ares Management Corporation places a strong emphasis on integrity as a core value. This commitment ensures that the company maintains transparency and accountability in all its dealings.

For example, Ares has implemented strict compliance and ethical guidelines that govern employee conduct. In 2024, the company reported a compliance training completion rate of 100% among its employees, ensuring that all staff are well-versed in ethical practices.

Excellence

Excellence is a fundamental value at Ares, driving the company to deliver superior performance in investment management. Ares has consistently outperformed industry benchmarks, achieving an average annual return of 12.5% across its funds in 2024, compared to the industry average of 9%.

The firm also invests in talent development, with over $3 million allocated in 2024 for professional training programs aimed at enhancing employee skills and expertise.

Collaboration

Ares fosters a culture of collaboration, recognizing that teamwork is essential to achieving strategic goals. The company has established cross-functional teams that focus on innovative investment strategies. In 2024, 85% of projects involved collaboration across departments, resulting in more comprehensive investment solutions.

Additionally, Ares regularly hosts inter-departmental workshops, with a reported attendance of over 500 employees in 2024, highlighting its commitment to collaborative practices.

Innovation

Innovation is at the heart of Ares Management's strategy. The company invests heavily in technology to enhance investment processes. In 2024, Ares allocated $2 million to upgrade its data analytics platforms, significantly improving investment decision-making.

This commitment to innovation is reflected in the launch of three new funds in 2024 that focus on emerging markets and sustainable investments, aligning with global trends and investor interests.

Respect

Respect is a core value that underpins Ares's corporate culture. The firm actively promotes diversity and inclusion within its workforce. As of 2024, women and minorities represent 50% of the leadership roles at Ares, a significant increase from previous years.

Ares also engages in community outreach programs, contributing over $1 million in 2024 to various initiatives aimed at supporting underrepresented communities.

Updated on 16 Nov 2024

Resources:

1. Ares Management Corporation (ARES) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ares Management Corporation (ARES)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Ares Management Corporation (ARES)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.