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Ares Administration missed analysts’ expectations with internet earnings of $73m ($58m) within the first quarter, regardless of an increase in belongings beneath administration (AUM) and “sturdy” fundraising exercise.
The choice asset administration big, which operates throughout a spread of segments together with credit score, personal fairness, actual belongings and secondaries, posted earnings per share of $0.33 within the first quarter, beneath consensus estimates of $0.92.
Web earnings of $73m fell beneath expectations of $180.15m, amid a muted quarter for M&A-driven lending.
Learn extra: Ares tops European direct lender rankings
The decline in earnings got here regardless of a 19 per cent year-on-year rise in AUM to $428.3m.
Ares raised $17.4bn over the quarter, led by $14.2bn in credit score.
The agency’s obtainable capital – referred to as ‘dry powder’ – elevated by 29 per cent year-on-year to a report excessive of $114.6bn.
Chief monetary officer Jarrod Phillips stated: “With a report quantity of obtainable capital at practically $115bn together with 28 per cent progress in our AUM not but paying charges, we imagine now we have important capability for progress when there’s a return to increased ranges of transaction exercise.”
Learn extra: Ares launches tools finance firm
Chief govt and president Michael Arougheti heralded robust progress throughout key monetary metrics, noting the corporate’s increased deployment and enticing funding efficiency.
“Our portfolios proceed to carry out effectively and we’re discovering compelling funding alternatives throughout many segments of our increasing international platform,” he added.
Individually, Ares introduced that it closed $9.3bn in new US direct lending commitments throughout 71 offers through the first quarter, bringing its annual complete for that division to $29.6bn.
Learn extra: Direct lending returns will “greater than offset” increased defaults this yr
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