TLDR
- ARES closed at $157.07 on May 2, up 3.15%
- Q1 after-tax realized income hit $381.4 million, or $1.09 per share
- Assets under management topped $500 billion
- Declared $1.12 quarterly dividend, payable June 30
- Stock up 19.75% over 1 year but down 10.58% YTD
Ares Management Corporation (NYSE: ARES) shares closed at $157.07 on May 2, gaining 3.15% ahead of its first-quarter 2025 earnings release.
The alternative asset manager posted robust results, including after-tax realized income of $381.4 million, or $1.09 per share. Assets under management (AUM) crossed $500 billion, marking a significant milestone for the firm.
Strong Growth in a Volatile Market
CEO Michael Arougheti highlighted Ares’ 20 %+ year-over-year growth in key metrics despite market volatility. The firm raised and deployed capital aggressively, while its acquisition of GCP International bolstered its Real Assets division. CFO Jarrod Phillips noted nearly $100 billion in dry powder—assets not yet paying fees—positioning Ares to capitalize on new investment opportunities during market dislocations.
$ARES Ares Management Corporation Reports First Quarter 2025 Resultshttps://t.co/94yM6143Zq
— Lycanbull (@Lycanbull) May 5, 2025
Fee-related earnings came in at $367.3 million for the quarter, underscoring the strength of Ares’ fee-centric, asset-light business model, which has historically delivered resilient growth through different market cycles.
Dividend Boost Reflects Management Confidence
Ares declared a quarterly dividend of $1.12 per share, payable June 30 to shareholders of record on June 16. The dividend hike signals confidence in sustained cash flow generation. Preferred shareholders will receive $0.84375 per share on July 1. The company also confirmed that its Dividend Reinvestment Program will be active for the June payment.
With its AUM hitting record highs and fresh capital ready for deployment, Ares appears poised to maintain its growth trajectory while rewarding shareholders.
Solid Long-Term Returns Despite 2025 Pullback
ARES shares have surged 19.75% over the past year and delivered a remarkable 154.79% return over three years. The five-year return stands at a staggering 463.27%, far outpacing the S&P 500’s 100.89% gain. However, the stock is down 10.58% year-to-date, underperforming the S&P 500’s 3.31% decline in 2025.
With earnings momentum and dividend strength, Ares could attract income and growth investors alike, despite recent underperformance amid broader market softness.
