Ares Management Corp-A 2024年度报告

2024 ANNUAL LETTER Dear Fellow Ares Shareholder, 2024 marked another year of significant achievementsand new milestones for our company. Among them, weset new records for the amount of capital we raised andinvested during the year. We also celebrated the 10-yearanniversary of Ares Management’s IPO and the 20-yearanniversary of Ares Capital Corporation’s IPO. We heldan Investor Day for both companies, during which wehighlighted the strong annual growth in shareholdervalue and relative stock outperformance that we havegenerated and outlined our near- and medium-termstrategic growth initiatives for each company. for our real estate business and cements Ares as oneof the largest investors and operators of logistics realestate across the globe. With respect to our 2024 financial results, our assetsunder management (“AUM”) grew approximately 16%to $484 billion at year-end. This was driven by newcapital commitments of $93 billion, up more than $18billion from the prior year. In addition to our strongfundraising, we invested a record $107 billion of capitalon behalf of our fund investors. The combination of ourstrong fundraising and resilient capital deploymentenabled us to generate record financial results withyear-over-year Fee Related Earnings (“FRE”) and RealizedIncome (“RI”) both up 17% and 16%, respectively, andmore than $1 billion of GAAP Net Income. Our recordRI of $1.5 billion included a 93% contribution from ourstable, recurring FRE, which we believe highlights thehigh-quality nature of our earnings (see Exhibit 1). During 2024, we also announced the strategicacquisition of GCP International, a leading alternativemanager of real assets with vertically integratedcapabilities and a significant presence in several keymarkets across Asia (excluding China), Europe andthe Americas. The acquisition, which closed in March2025, provides significant scale and global expansion EXHIBIT 1 In 2024, ARES shares once again outperformed relevant major stock indices For the year ended December 31, 2024, ARES generated a total stock return of 53%, more than doublingthe return of the S&P 500 index. Since our IPO, ARES shares have generated an annualized total returnof 28.9% compared to 13.3% for the S&P 500 index (see Exhibit 2). EXHIBIT 2 ARES Total Stock Returns vs. Comparable Indices Throughout the remainder of this letter, we will discuss the growth opportunities in our markets, our institutionalfundraising and the exciting growth we are experiencing in our wealth management solutions business, ourfundraising and investing activities across our investment groups, the benefits of our recent GCP Internationalacquisition, and our differentiated culture, which we believe continues to set Ares apart. We will conclude withour outlook for the business. Large and Growing Opportunity for Raising Capitaland Investing in Private Markets The market for alternative assets under managementcontinues to grow based on strong investmentperformance and higher allocations as investors seekto expand their exposure to private market assets.We believe Ares has the scale, relationships and trackrecord to capitalize on the expected growth in themarket and raise significant capital across the majoralternative asset classes. 2029, representing a compound annual growth rateof 12%.1We expect even stronger AUM growth tooccur from individual investors as they remain only3-5% allocated to alternative assets compared to atleast 10% allocated by institutional investors. With aclient solutions and investor relations team of over440 professionals with deep global networks andpartnerships targeting institutional and individualinvestors, we have strategically positioned Ares forsubstantial growth in our AUM in the years to come. Per Preqin data in Exhibit 3, global institutional AUMallocated to alternative assets is well over $10 trillionand is expected to reach more than $20 trillion by EXHIBIT 3 In turn, it is imperative that Ares is able to sourcedifferentiated investment opportunities withattractive risk/return profiles in various macro-economic environments. To that end, we continue toexpand our global investment capabilities by deepeningour local market coverage, extending our geographicreach and adding new strategies. In 2024, we addedapproximately 100 new investment professionals,which brought our total to more than 1,100 acrossthe firm. As shown in Exhibit 4, we estimate theaddressable investment markets across the globalCredit, Real Estate, Infrastructure, Private Equity andSecondaries asset classes are approximately $90trillion, with Ares’ $484 billion of AUM representing only roughly 0.5% of that figure.2Further, these endmarkets are growing and evolving in their acceptanceof private capital solutions compared to othertraditional sources. For example, we estimate a $2trillion market opportunity for private investments insports team franchises and their related ecosystemsthat was largely unavailable to institutional and retailinv