Ares Management Corp recently released its 10-K report, offering a detailed look into its operations as an alternative asset manager in the United States, Europe, and Asia. The company's Direct Lending Group provides financing solutions to small-to-medium sized companies, while its Private Equity Group focuses on majority or shared-control investments primarily in under-capitalized companies. Additionally, its Real Estate Group invests in new developments and repositioning of assets, with a focus on control or majority-control investments.
In the 10-K, Ares Management Corp discussed various aspects of its financial condition and results of operations. Notably, the report detailed the company's management fees, which are based on a percentage of capital commitments, invested capital, net asset value (NAV), or the fair value of assets. The report also provided specific fee rates and bases for different investment strategies, such as Liquid Credit, U.S. and European Direct Lending, Real Estate, Infrastructure, and Private Equity, among others.
Furthermore, the 10-K delved into the company's incentive fees, which are performance-based fees received by the general partners, managers, or similar entities of certain funds. These fees are based on a fund’s cumulative net investment returns for a specified measurement period, subject to certain net loss carry-forward provisions, high-watermarks, and/or preferred returns. The report also outlined the fee related performance revenues and carried interest allocation earned by the company from its various funds and perpetual wealth vehicles.
In addition to its financial operations, the 10-K report also provided insights into Ares Management Corp's business combinations and commitments and contingencies. This included details about the investment advisory and management agreements of the company's publicly-traded funds and perpetual wealth vehicles, as well as contractual expense support and expense limitation agreements.
Following these announcements, the company's shares moved 0.07%, and are now trading at a price of $169.69. If you want to know more, read the company's complete 10-K report here.
