The rating on Ares Management L.P. reflects the company's stable cash flows from management fees and strong investment performance. Additional ratings support comes from the company's diversified revenue streams among its four lines of business and its solid financial profile underpinned by low debt leverage and strong interest coverage. Negative rating factors include Ares Management's on-balance-sheet liquidity that is lower than peers', its high concentration in funds exposed to credit markets (specifically in its tradable credit and direct lending segments), its modest presence in real estate, and its relatively short track record in real estate debt. Ares Management is an alternative asset manager with $77 billion of assets under management (AUM) as of March 31, 2014. Fee-paying assets under management
