Transaction Summary We are forming Ares Kayne, a leading alternative asset manager with a highly differentiated business model We believe our merger will achieve key strategic objectives and generate meaningful benefits for our…
The Investment Case for Ares Kayne Both firms have distinguished performance track records and similar business models and bring together highly complementary investment strategies and investor relationships in an accretive combination…
Balanced Investment Platform At closing of the merger, we will have five distinct and complementary investment groups Tradable Credit Direct Lending Energy* Private Equity Real Estate AUM 34 billion 30 billion 21 billion 15 billion…
Track Record of Performance We have generated strong risk-adjusted investment returns across our strategies throughout market cycles Tradable Credit Direct Lending Energy* Private Equity Real Estate Gross Annualized Returns Since…
Track Record of Growth On a combined basis, Ares Kayne has achieved 5-year and 10-year AUM(1) CAGRs of 21%(2) and 27%(3) US in billions 120 113 109 100 100 26 28 26 79 80 63 18 60 54 14 42 12 87 40 82 32 8 74 27 60 7 20…
Broad and Diversified Investor Base We bring together highly complementary direct investor relationships and a large retail following Ares Kayne AUM 113 billion Ares AUM Kayne AUM 87 billion 26 billion Ares Public Entities &…
Kayne Anderson Ric Kayne Kayne Anderson Chairman 10
Overview We have a 30+ year track record of successful alternative asset management Our objective has always been to be a well above average investor for ourselves and those who are comfortable investing alongside us We seek above…
Strategic Rationale We have known members of the Ares leadership team for many years and have great respect for how they have developed global leadership positions across compelling investment strategies The more we looked at their…
Transaction Michael Arougheti Ares President 13
Transaction Financing Ares Combined Balance Sheet(1) March 31, 2015 mm Uses Purchase Consideration 2.55bn Cash 69 Transaction Funding Transaction Expenses(2) 30mm Performance Fees Receivable 590 Total 2.58bn Due from Affiliates…
Kayne Enhances Ares Financial Metrics(1) We expect that Kayne will double our Fee Related Earnings and Distributable Earnings in millions Ares Adjusted Kayne(2) COMBINED(3) 2014 Q115 2014 Q115 2014 Q115 Management Fees 598 162 303…
Impact on Earnings Illustrative Analysis (1) (1) in millions, except per unit amounts 2014 Q115 Drivers of 20152016 Ares Kayne Earnings Growth Ares Pretax ENI 289 83 Ares Aftertax ENI 267 75 (2) 1 (+) Decrease in Taxes due to Lower…
Long-Lived, Locked-Up Capital Meaningful AUM in permanent or long-lived, locked-up funds promotes stability and long-term investing focus Ares aum Ares Kayne AUM Kayne Aum 87 billion 113 billion 26 billion 15% Managed Managed 18%…
Stable, High Quality & Diversified Management Fees Predictable and diversified management fee driven business model Combined Total Fee Revenue Composition FY 2014 and Q1 2015(1)(2) 978 million 282 million Net Performance Fees 8% 17%…
Enhances Growth Alternative assets are enjoying increasing interest from all types of investor groups and we have a demonstrated ability to capitalize on this robust demand through multiple avenues Larger subsequent funds Crossmarket…
New Breed of Asset Manager We believe our investment thesis of high growth and stability is differentiated in the asset management space Traditional Alternative Asset Managers Asset Managers Broad Array of Funds Long-lived,…
Appendix 21
Financial Summary FYE December 2014 First Quarter 2015 (1) (2) (1) (2) in millions Ares Kayne Combined Ares Kayne Combined Tradable Credit Group 144 1 145 38 0 38 Direct Lending Group 276 15 290 71 3 74 Energy Group 257 257 60 60…
Ares GAAP to Non-GAAP Reconciliation Stand Alone Reporting Basis Year ended Three months in millions December 31, ended March 31, 2014 2015 Economic net income and fee related earnings: Income before taxes 557 407…
Kayne GAAP to Non-GAAP Reconciliation Adjusted Stand Alone Reporting Basis in millions Year ended December 31, 2014 Quarter ended March 31, 2015 GAAP Stand Alone Adj. Stand GAAP Stand Alone Adj. Stand Alone FY14 Adjustments Alone…
Kayne 2014 GAAP to Non-GAAP Reconciliation Adj. Stand Alone Reporting Basis ( in millions) GAAP Stand Adjusted Stand Alone FY14 Adjustments Note Alone FY14 Management fees 298 4 (1) 303 Administrative Fees and Other Income 7 (2)…
Kayne 1Q15 GAAP to Non-GAAP Reconciliation Adj. Stand Alone Reporting Basis ( in millions) GAAP Stand Adjusted Stand Alone Q1 2015 Adjustments Note Alone Q1 2015 Management fees 71 0 71 Administrative Fees and Other Income 1 1…
Loading...
