LOS ANGELES, CA - Ares Management Corporation (NYSE:ARES) announced today that it has completed the sale of additional shares, raising approximately $52.92 million in net proceeds. This transaction follows the company's underwriting agreement dated June 12, 2024, involving Morgan Stanley & Co (NYSE:MS). LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC, as representatives of the underwriters.
The company sold 397,500 shares of its Class A common stock at a par value of $0.01 per share. The completion of this sale comes as the underwriters exercised their option in full to purchase additional shares. With this recent sale, Ares Management has now raised a total of approximately $408.21 million in net proceeds from its latest offering, after accounting for underwriting discounts and commissions but before offering expenses.
Ares Management Corporation, headquartered at 2000 Avenue of the Stars, 12th Floor, Los Angeles, CA 90067, operates in the investment advice sector under the SIC code 6282. It is incorporated in Delaware with an IRS identification number of 954656677 and ends its fiscal year on December 31.
The additional funds secured through this sale could support Ares Management's strategic initiatives and growth plans. The company's Class A common stock is traded on the New York Stock Exchange under the ticker symbol ARES.
In other recent news, Ares Management, L.P. has been the subject of several analyst adjustments and strategic developments. Jefferies updated Ares Management's price target to $139 and maintained a Hold rating, following a revision of the company's second-quarter and full-year 2024 income estimates. The firm expects Ares Management's second-quarter Fee-Related Earnings (FRE) to be around $320 million, with net realized performance fees estimated at $35 million. This is despite a reduction in net performance fees and a decrease in investment income.
TD Cowen maintained a Buy rating on Ares Management with a price target of $168.00, in light of a recent equity raise by the company. The firm's analysis suggests growth could be particularly concentrated in areas requiring deal-making expertise, and commended Ares Management's track record of swiftly executing deals in close proximity to their capital raises.
Deutsche Bank adjusted its rating on Ares Management to Hold from Buy, setting a new price target of $132.00. This revision was attributed to an error in the previous analysis, where an incorrect share count was used in the valuation model, leading to the stock being seen as attractively valued.
Ares Management also announced a public offering of 2,650,000 shares of its Class A common stock, with the intent to use the proceeds for general corporate activities. This follows the company's recent performance report showing the firm managing approximately $428 billion in assets.
Finally, BofA Securities reiterated a Buy rating and a price target of $181.00 on Ares Management, expressing confidence in the company's robust five-year organic growth driven by its leading private credit business.
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