Fundamentals snapshot
ARES · NYQ · Financial Services · Asset Management
Current price
$128.15
52-week range
$95.80 - $181.19
Market cap
$42.52B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net cash $0.00. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Ares Management Corporation essentially acts as a financial helper for businesses that need money to grow or get back on their feet. They make their money primarily by managing investments for others and providing loans, which can be a steady source of income (this is like recurring revenue, meaning income that keeps coming in regularly). This is important because it shows how Ares helps businesses get the capital they need to operate and expand, which in turn helps the overall economy.
Ares Management Corporation was founded in 1997 by a group of investment professionals, including Antony Ressler, Michael Arougheti, David Kaplan, John H. Kissick, and Bennett Rosenthal. The firm started by focusing on credit and structured equity investments. Over the years, Ares has grown significantly through both organic expansion and strategic acquisitions, broadening its investment strategies and geographic reach. A key development was the initial public offering (IPO) of Ares Capital Corporation in 2004, which is a business development company focused on direct lending. Ares Management itself later listed on the New York Stock Exchange in 2014. The company has continued to expand its offerings, notably through acquisitions that have bolstered its real estate, infrastructure, and secondaries capabilities, and has also launched platforms for private wealth management.
Ares Management is a global alternative investment manager. This means instead of investing in typical stocks and bonds that you might find in a mutual fund, Ares focuses on investments in private markets. Think of it like this: instead of buying a piece of a company that's already traded on a public stock exchange, Ares helps provide capital (money) to companies that aren't publicly traded. They do this across several different types of investments, including credit (lending money), private equity (buying stakes in private companies), real estate, and infrastructure. Their clients are typically large institutions like pension funds, endowments, and wealthy individuals, who are looking for different ways to grow their money beyond traditional investments.
The Credit Group is a major part of Ares Management, focusing on various forms of lending and credit investments. This includes direct lending, where Ares provides loans directly to companies, often those in the middle market (companies that are too big to be small businesses but not yet large enough to be major corporations). They also manage strategies across liquid (easily bought and sold) and illiquid (harder to sell) credit. This segment aims to provide steady income to investors by lending money to businesses and earning interest on those loans. It's a significant portion of Ares' business, providing flexible financing solutions to support companies' growth.
The Private Equity Group at Ares Management focuses on investing in companies that are not publicly traded on a stock exchange. This involves taking stakes, sometimes a majority ownership, in these private companies. Ares looks for opportunities in various stages of a company's life, including early-stage ventures, companies needing a turnaround, and established businesses looking for growth capital. They invest across different industries like healthcare, services, energy, industrials, and consumer goods, often targeting companies that may be under-capitalized (meaning they don't have enough money to fully pursue their goals). The goal here is to help these companies grow and improve, ultimately increasing their value.
Ares' Real Estate Group invests in property, focusing on both new developments and the improvement of existing properties. They often seek to take control or majority ownership of these real estate assets. This segment also involves originating and investing in financing opportunities for owners of commercial real estate, essentially providing loans for real estate projects. The strategy aims to generate returns through property appreciation and rental income, and can include investments in various types of real estate, such as logistics assets that are crucial for supply chains.
Ares Management is strategically focused on growing its assets under management, particularly those that generate recurring fees, which provide a more stable income stream. A key priority is expanding its presence in private credit, aiming to deepen its leadership in this area. The company is also working to broaden its real assets platform, which includes infrastructure investments, and is actively developing its distribution channels to reach more high-net-worth individuals through wealth management services. Management believes that by pairing strong investment origination capabilities with broader fundraising reach, Ares can consistently grow its management fees and performance income across different economic conditions.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net cash $0 - more cash than debt. Interest coverage 1.2x.
Ares Management Corporation's profit covers its interest bill about 1.2 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt — Interest coverage 1.16x This is the baseline the peer rows are being compared against.
Total debt $41.88B Interest coverage 22.32x +1,819% vs ARES Carries about 19.2x more debt cushion than ARES.
Total debt $56.16B Interest coverage 0.16x -86% vs ARES Carries about 7.3x less debt cushion than ARES.
Total debt $4.09B Interest coverage 11.24x +866% vs ARES Carries about 9.7x more debt cushion than ARES.
Total debt — Interest coverage 2.79x +140% vs ARES Carries about 2.4x more debt cushion than ARES.
What you should know
The numbers
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Valuation
Profitability
Health
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Cash flow
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What you should know