Ares Management (ARES) investor relations material

Growth strategy and business model

• Growth has been driven by both organic expansion and targeted acquisitions, with about 25% of historic growth from M&A.

• Acquisitions focus on adjacent businesses where there is a right to win and potential for revenue synergies, allowing acquired units to retain autonomy.

• Centralized functions like sales, compliance, and technology enable scale, while business units maintain autonomy for specialization.

• A customer-centric approach has shaped the platform, evolving from product provider to holistic solutions provider across the capital stack.

• Diversification across products, geographies, and distribution channels is key to resilience and outperformance through cycles.

Information edge and market outlook

• Access to primary data from thousands of investments globally provides a significant information advantage.

• Private market data shows strong fundamentals, with double-digit cash flow growth and high occupancy rates.

• There is a disconnect between public market narratives and private market realities, with no signs of a credit crisis in portfolio data.

• The secular shift from public to private markets is durable and underappreciated by public market participants.

• Successful investors focus on relevant primary information rather than media-driven noise.

AI and technology transformation

• AI is seen as both a risk and an opportunity, with investments in digital infrastructure and renewable energy benefiting from AI-driven demand.

• Over 25 AI-driven projects are underway, targeting margin expansion and operational efficiency in both front and middle office functions.

• The impact of AI must be measurable, showing up in productivity or margin gains.

• The market's initial focus on software exposure is seen as too narrow; broader infrastructure and implementation cycles are more relevant.