Table of Contents I. Overview II. Market Opportunity III. Investment & Growth Strategy IV. Financial Performance & Position V. Conclusion VI. Appendix Segment Review Non-GAAP to GAAP Reconciliation Leadership Team…
Overview 4
Ares Management Overview Ares Management, L.P. (NYSE: ARES) is a leading global alternative asset manager with approximately 79 billion of assets under management(1) Since our inception in 1997, we have adhered to a disciplined…
Differentiated Business Model We believe Ares has a differentiated business model benefitting from high growth and consistent performance TRADITIONAL ASSET ALTERNATIVE ASSET MANAGERS MANAGERS BROAD ARRAY OF LONG-LIVED, LOCKED-…
The Power of our Platform Distinguishing features that together propel our investment performance and growth Collaborative Culture Cross group daily interaction Deep team of talented professionals sharing ideas and best…
Consistent Growth Across Market Cycles(1) Our compelling investment performance has contributed to double-digit AUM growth in each of the past ten years Assets Under Management 90 800 Tradable Credit 80 Direct Lending 700 Private…
Track Record of Performance Our key platform advantages have translated into attractive risk-adjusted performance in a range of alternative assets Distinctions Historical Returns Gross Annualized Returns / Basis Point Outperformance…
Market Opportunity 10
De-leveraging of the Global Banking System(1) The banks now hold 40-50% more capital than pre- Bank Regulations recession Top 5 Banks: Average Tier 1 11% Common Capital Ratio(2) 10% 1. Increasing 9% Basel III Bank Capital 8%…
Increasing Benefits of Scale in the Asset Management Space We believe fund investors are allocating a greater share of their assets to established and diversified platforms Capabilities of a Scaled Manager Advantages Provided to…
Accelerated Growth of Alternative Asset Allocations (1) Growth in alternative investments has more than doubled 2005 2013 AUM CAGR the growth rate of non-alternatives over the past five years By 2020, McKinsey & Company projects…
Investment & Growth Strategy 14
Sophisticated Composition Cross-group daily internal systems of investment interactions & & shared committees monthly meetings Investment Approach resources Ares four investment platforms share a common investment approach,…
Multi-Asset Class Capabilities Ares has experience in the following asset classes Ares Risk / Reward Spectrum Ares Risk / Reward Spectrum (1) Targeted Net Returns at September 2014 0% 5% 10% 15% 20% 25% TRADABLE CREDIT (2) Bank…
Flexible Strategies Provide Investment Opportunities Across Market Cycles Investors invest with us across market cycles given our adaptable strategies and our history of capitalizing on market volatility Tradable Credit Direct Lending…
Focus on Long-Lived, Locked-Up Capital 60% of Ares capital base has a tenor of 7 years or more Managed Permanent Accounts Capital 60% Long-Lived Capital 16% 15% Fewer than Management Fee Visibility 3 years 4% 10 or more…
Maintain a Diversified & Growing Investor Base Our deep and expanding investor relationships are founded on our demonstrated performance Pension Public Entity Institutional 55% Institutional Direct & Related Direct 19% 30%…
Multiple Avenues for Growth Larger subsequent funds Cross-market our strategies to existing clients Growth of business development group Organic 1 Enter adjacent asset classes Continue to develop differentiated New Products…
Financial Performance & Position 21
High Quality & Diverse Revenues Stable and diversified management fee driven business model Total Fee Revenue Composition(1) 363mm 572mm 619mm 692mm 6% 7% 6% Net Performance Fees: Other 4% 16% 1% 9% 10% Net Performance Fees:…
Favorable Financial Performance with Consistent Growth in millions Year ended December 31, Three months ended June 30, Six months ended June 30, 2011 2012 2013 2013 2014 2013 2014 Direct Lending 155 190 238 56 65 108 131 Tradable…
Well-Capitalized Balance Sheet We have a strong capital base for growth Combined Balance Sheet (1) June 30, 2014 - mm Cash 87 Low Debt Cash of 87mm vs. debt of 203mm Performance Fees Receivable 526 Due from Affiliates 138 Private…
Significant Remaining Capacity for Investment 19.0 2.1 15.3 13.0 1.9 4.4 As of June 30, 2014, our Available 0.3 Capital was primarily attributed 4.5 Available Capital(1) 5.5 to ACOF IV, ARCC & Related 7.1 bn 5.9 funds(2), and…
Conclusion 26
Conclusion 1. 1 Demonstrated investment approach with favorable track records across strategies 2. 2 Stable earnings due to long-lived, locked up capital and a diversified & growing investor base 3. 3 Meaningful benefits from…
Appendix Segment Review 28
Tradable Credit Group is a Leading Manager Across Long-Only and Alternative Credit Strategies Business Overview and Returns Assets Under Management (bn) Ares has been managing below investment grade credit 32.4 27.9 instruments since…
Direct Lending Group is Among the Largest Self Originating Middle Market Lenders Business Overview and Returns Assets Under Management (bn) Launched in 2004, Ares Direct Lending Group principally 28.1 originates private debt…
Private Equity Group Demonstrates a Differentiated Investing Approach and Top Tier Performance Business Overview and Returns Fund Sizes & Significant Transactions (bn) Raised first private equity fund in 2003, and currently 4.7 manages…
Real Estate Group has a Demonstrated Track Record of Investing Across the Capital Structure(1) Business Overview and Returns Assets Under Management Ares Real Estate Group manages comprehensive public and private equity and debt…
Appendix Non-GAAP to GAAP Reconciliation 33
Non-GAAP to GAAP Reconciliation Stand Alone Reporting Basis Note: Past performance is not indicative of future results. This table is a reconciliation of income before provision for income taxes on a consolidated basis to FRE on a…
Appendix Leadership Team 36
The Breadth, Depth and Tenure of our Leadership Management Committee Our 5 Co-Founders and 9 other senior professionals across the firm Board Directors / Co-Founders Other Management Committee Members Tony Ressler Chairman/CEO John…
Investment Leadership Each group is led by its own deep leadership team of highly accomplished investors who average 22+ years of experience Tradable Credit Direct Lending Private Equity Real Estate Greg Margolies Keith Ashton Michael…
Not for Publication or Distribution 39
Performance Notes to Slide 9, 17 and Slides 29-31 1) Lipper Rankings reported in Lipper Marketplace Best Money Managers, June 30, 2014. Lipper Marketplace publishes long-only and multi-strategy credit rankings. Lippers Best Money Managers…
Performance Notes to Slide 9 For comparison purposes the index includes the reinvestment of income and other earnings but does not include transaction costs, management fees or other costs. Gross and net returns include the reinvestment…
Loading...
