Century City private equity firm Ares Management on Tuesday reported substantial growth in assets under management and a downturn in profitability in its first earnings release as a public company.

The firm earned net income of $77.4 million (34 cents a share) for the three months ended March 31, down 18 percent from the same period a year earlier. Revenue for the first quarter was $140 million. Assets under management grew 27 percent to $77 billion.

Ares chalked up most of the decline in net income to weakness in the tradable credit market, which accounts for more than 20 percent of the firm’s business. However, management believes the firm’s multifaceted offerings provide value to investors.

“We believe our diversified platform is well positioned to benefit from the growth in global demand for alternative investments as investors seek higher returns without taking commensurate risk,” Ares Chief Executive Antony Ressler said in statement.

Ressler is ranked No. 42 on the Business Journal’s list of Wealthiest Angelenos with an estimated net worth of $1.14 billion.

At Tuesday’s close, Ares fell slightly to $18.57 on the NYSE.