Ares Management Corp. reported its 10th consecutive quarter of growth in assets under management but the firm failed to meet earnings expectations when it reported third-quarter earnings on Oct. 31.
The Century City-based asset manager posted earnings per share of 34 cents for the quarter. Analysts had expected Ares to deliver 37 cents per share.
Ares' assets under management reached $144.3 billion in the quarter, an increase of 15.3% from the same quarter last year. The company cited capital raising in its Credit Group — which saw income rise 23% year over year — for U.S. and European direct lending, alternative credit, and syndicated loan funds as the primary drivers for the boost.
Ares’ Real Estate Group saw income grow 23% to $16.6 million vs. the third quarter of 2018. The company credited a rise in fee-related earnings, which rose 43% year over year, with the strong performance in that group.
The company’s third line of business, its Private Equity Group, did not fare as well. The unit reported income of $28.8 million, a 34% year-over-year drop that the company attributed to reduced realized performance and investment income.
Net income attributable to Ares Management for the quarter ended Sept. 30 was $33.3 million, up from $15.9 million the same period last year.
Banking and finance reporter James B. Cutchin can be reached at firstname.lastname@example.org or (323) 556-8332. Follow him on Twitter @jamesbcutchin.
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