The company said it agreed to acquire GCP International, with AUM of $44.0 billion as of June 30, 2024, and the initial consideration is about $3.7 billion, consisting of about $1.8 billion in cash and about $1.9 billion in equity. The earn-out does not exceed $1.5 billion. In October 2024, Ares entered into a definitive agreement to acquire GCP International.

1. 01

   The company said it agreed to acquire GCP International, with AUM of $44.0 billion as of June 30, 2024, and the initial consideration is about $3.7 billion, consisting of about $1.8 billion in cash and about $1.9 billion in equity. The earn-out does not exceed $1.5 billion. In October 2024, Ares entered into a definitive agreement to acquire GCP International.

2. 02

   The company issued 30,000,000 shares of Series B mandatory convertible preferred stock in October 2024, raising $1,462.5 million in total (after deducting underwriting discounts). In the same month, it issued 5.60% senior notes of $750.0 million. The company entered into an agreement to acquire WSM in September 2024.

3. 03

   The company said capital deployment into direct lending, alternative credit and opportunistic credit funds within the Credit Group led to higher FPAUM, which contributed to the increase in management fees. Management fees rose by $63.2 million and $177.9 million for the 3 months and 9 months ended September 30, 2024, respectively.

4. 04

   The company said compensation and benefits rose by $23.6 million and $72.8 million in 2024 for the 3-month and 9-month periods, respectively, driven by equity-based compensation. General and administrative expenses, before amortization related to impairment of intangible assets, rose by 29% and 21%, respectively. Acquisition-related costs rose by $22.8 million and $29.3 million, respectively.

Key figures

Quarter ended September 30, 2024

Revenue

$1.1B

Net income

$216M

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.