Ares Management : First Quarter 2021 Conference Call

Ares Management Corporation Reports First Quarter Results

LOS ANGELES--Ares Management Corporation (NYSE:ARES) today reported its financial results for its first quarter ended March 31, 2021.

GAAP net income attributable to Ares Management Corporation was $58.4 million for the quarter ended March 31, 2021. On a basic basis, net income attributable to Ares Management Corporation per share of Class A common stock was $0.33 for the quarter ended March 31, 2021. On a diluted basis, net income attributable to Ares Management Corporation per share of Class A common stock was $0.32 for the quarter ended March 31, 2021.

After-taxrealized income, net of Series A preferred stock dividends, was $127.6 million for the quarter ended March 31, 2021. After-tax realized income per share of Class A common stock, net of Series A preferred stock dividends, was $0.46 for the quarter ended March 31, 2021. Fee related earnings was $128.5 million for the quarter ended March 31, 2021.

"During the first quarter, we crossed a major milestone for our company by surpassing $200 billion in assets under management after reaching $100 billion just four years ago," said Michael Arougheti, Chief Executive Officer and President of Ares. "Our 39% growth in assets under management was supported by continued strong momentum in both fundraising and fund performance as we generated attractive investment solutions for our investors. Looking ahead to the rest of 2021, we see a constructive market backdrop and strong fundamentals for the core drivers of our business and we continue to see favorable industry tailwinds and significant expansion opportunities for us on the longer term horizon."

"We are off to a strong start to the year with $10 billion of new capital raised, 38% growth in our fee related earnings and record quarterly deployment," said Michael McFerran, Chief Operating Officer and Chief Financial Officer of Ares. "With over $56 billion of available capital in flexible investment strategies, we are well positioned for continued growth as we continue to leverage the advantages of our expanding investment platform and global presence."

Common Dividend

Ares declared a quarterly dividend of $0.47 per share of its Class A common stock, payable on June 30, 2021 to its Class A common stockholders of record at the close of business on June 16, 2021.

Dividend Reinvestment Program

Ares has a Dividend Reinvestment Program for its Class A common stockholders that will be effective for the quarterly dividend on June 30, 2021. American Stock Transfer and Trust Company is engaged to administer the plan on behalf of the Company. Additional information can be located on the Investor Resources section of our website.

Preferred Dividend

Ares declared a quarterly dividend of $0.4375 per share of its Series A preferred stock with a payment date of June 30, 2021 to its Series A preferred stockholders of record as of the close of business on June 15, 2021.

Additional Information

Ares issued a full detailed presentation of its first quarter 2021 results, which can be viewed at www.aresmgmt.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled "First Quarter 2021 Earnings Presentation."

Conference Call and Webcast Information

Ares will host a conference call on April 29, 2021 at 12:00 p.m. (Eastern Time) to discuss first quarter results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at www.aresmgmt.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing (888) 317- 6003. International callers can access the conference call by dialing [phone]. All callers will need to enter the Participant Elite Entry Number 9371836 followed by the # sign and reference "Ares Management Corporation" once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through May 27, 2021 to domestic callers by dialing [phone] and to international callers by dialing [phone]. For all replays, please reference conference number 10153153. An archived replay will also be available through May 27, 2021 on a webcast link located on the Home page of the Investor Resources section of our website.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. Ares Management's investment groups collaborate to deliver innovative investment solutions and consistent, attractive investment returns for fund investors throughout market cycles. As of March 31, 2021, Ares Management's global platform had approximately $207 billion of assets under management with more than 1,450 employees operating across North America, Europe and Asia Pacific. For more information, please visit www.aresmgmt.com.

Forward-Looking Statements

Statements included herein contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "predicts," "intends," "plans," "estimates," "anticipates," "foresees" or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to the impact of the COVID-19 pandemic and the pandemic's impact on the U.S. and global economy, as well as those described from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. Ares Management Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call, whether as a result of new information, future developments or otherwise, except as required by law. Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates.

Investor Relations Contacts
Carl Drake	Greg Mason	Cameron Rudd
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Earnings Presentation

First Quarter 2021

Important Notice

This presentation is prepared for Ares Management Corporation (NYSE: ARES) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares Management Corporation ("Ares") and certain of its affiliates. Any discussion of specific Ares entities is provided solely to demonstrate such entities' role within the Ares organization and their contribution to the business, operations and financial results of Ares. This presentation may not be referenced, quoted or linked by website, in whole or in part, except as agreed to in writing by Ares.

This presentation contains "forward looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Forward-looking statements can be identified by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "predicts," "intends," "plans," "estimates," "anticipates," "foresees" or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of many factors beyond the control of Ares, including but not limited to the impact of the COVID-19 pandemic and the pandemic's impact on the U.S. and global economy, as well as those described in the "Risk Factors" section of our filings with the Securities and Exchange Commission ("SEC"). These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in our periodic filings. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date of this presentation. Ares assumes no obligation to update or revise any such forward-looking statements except as required by law.

Certain information discussed in this presentation was derived from third party sources and has not been independently verified and, accordingly, Ares makes no representation or warranty in respect of this information and assumes no responsibility for independent verification of such information.

The following slides contain summaries of certain financial and statistical information about Ares. The information contained in this presentation is summary information that is intended to be considered in the context of Ares' SEC filings and other public announcements that Ares may make, by press release or otherwise, from time to time. Ares undertakes no duty or obligation to publicly update or revise these statements or other information contained in this presentation. In addition, this presentation contains information about Ares, its affiliated funds and certain of their respective personnel and affiliates, and their respective historical performance. You should not view information related to the past performance of Ares and its affiliated funds as indicative of future results.

Certain information set forth herein includes estimates and targets and involves significant elements of subjective judgment and analysis. No representations are made as to the accuracy of such estimates or targets or that all assumptions relating to such estimates or targets have been considered or stated or that such estimates or targets will be realized. Further, certain performance information, unless otherwise stated, is before giving effect to management fees, carried interest or incentive fees and other expenses.

This presentation does not constitute, and shall not be construed as, an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, investment funds, vehicles or accounts, investment advice, or any other service by Ares of any of its affiliates or subsidiaries. Nothing in this presentation constitutes the provision of tax, accounting, financial, investment, regulatory, legal or other advice by Ares or its advisors.

Management uses certain non-GAAP financial measures, including Assets Under Management, Fee Paying Assets Under Management, Fee Related Earnings and Realized Income to evaluate Ares' performance and that of its business segments. Management believes that these measures provide investors with a greater understanding of Ares' business and that investors should review the same supplemental non-GAAP financial measures that management uses to analyze Ares' performance. The measures described herein represent those non-GAAP measures used by management, in each case, before giving effect to the consolidation of certain funds within its results in accordance with GAAP. These measures should be considered in addition to, and not in lieu of, Ares' financial statements prepared in accordance with GAAP. The definitions and reconciliations of these measures to the most directly comparable GAAP measures, as well as an explanation of why we use these measures, are included in the Appendix. Amounts and percentages may reflect rounding adjustments and consequently totals may not appear to sum.

For the definitions of certain terms used in this presentation, please refer to the "Glossary" slide in the appendix.

The statements contained in this presentation are made as of March 31, 2021, unless another time is specified in relation to them, and access to this presentation at any given time shall not give rise to any interpretation that there has been no change in the facts set forth in this presentation since that date.

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First Quarter 2021 Highlights

• Total Assets Under Management ("AUM") of $207.2 billion
• Total Fee Paying AUM ("FPAUM") of $127.6 billion

Assets Under Management

• Available Capital of $56.8 billion
• AUM Not Yet Paying Fees available for future deployment of $37.6 billion
• Raised $10.6 billion in gross new capital with net inflows(1) of $10.1 billion

• Capital deployment of $10.3 billion, including $8.9 billion by our drawdown funds
• Q1-21GAAP net income attributable to Ares Management Corporation of $58.4 million

Financial

Results

• Q1-21GAAP basic earnings per share of Class A common stock of $0.33 and diluted earnings per share of Class A common stock of $0.32
• Q1-21GAAP management fees of $320.3 million
• Q1-21unconsolidated management and other fees of $334.3 million(2)
• Q1-21Fee Related Earnings of $128.5 million
• Q1-21Realized Income of $136.8 million
• Q1-21after-tax Realized Income of $0.46 per share of Class A common stock(3)

	Corporate	∙	Declared quarterly dividend of $0.47 per share of Class A common stock(4)
	Actions	∙	Declared quarterly dividend of $0.4375 per share of Series A preferred stock(5)

Recent

Developments

• On March 30, 2021, a subsidiary of Ares entered into a definitive agreement to acquire 100% of Landmark Partners, LLC (collectively with its subsidiaries, "Landmark"), a leading investment manager focused on the secondary markets. Landmark manages private equity, real estate and infrastructure secondaries funds totaling approximately $18.7 billion in AUM as of December 31, 2020
• In April 2021, Ares sold approximately $250.0 million of common stock, consisting of non-voting common stock and Class A common stock, to Sumitomo Mitsui Banking Corporation in a private offering and approximately $578.2 million of Class A common stock in connection with a public offering
• On April 29, 2021, Ares held the final closing of its fifth commingled European direct lending fund, Ares Capital Europe V ("ACE V"), at €11.0 billion, representing the largest European direct lending fund raised to date

1. Net inflows represents gross capital commitments less redemptions.
2. Unconsolidated management fees includes $11.7 million from Consolidated Funds that are eliminated upon consolidation for GAAP for Q1-21 and excludes management fees attributable to certain joint venture partners. Unconsolidated other fees represents $6.8 million primarily of transaction-based fees earned from Credit Group funds for Q1-21. Unconsolidated other fees excludes administrative fees that are netted against the respective expenses and administrative fees attributable to certain joint venture partners.
3. After-taxRealized Income per share of Class A common stock is net of the preferred share dividend.
4. Payable on June 30, 2021 to shareholders of record as of June 16, 2021.
5. Payable on June 30, 2021 to shareholders of record as of June 15, 2021.

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