Ares Management Corp To Acquire GLP Capital Partners Ltd Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alex Blostein - Goldman Sachs - Analyst : This is [Luke being] calling on for Alex. Thanks for taking the question. I appreciate all the color on the financials and expected FRE growth. But as we look to bridge the $245 million in 2026. Could you just help us think about what margins look like on the business today? And do you mind fleshing out some of the assumptions such as fee rates and FPAUM growth to get to the $245 million in 2026? Thanks,

Question: Alex Blostein - Goldman Sachs - Analyst : Makes sense. Thanks guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 08, 2024 / 12:30PM, ARES.N - Ares Management Corp To Acquire GLP Capital Partners Ltd Call

Question: Bill Katz - TD Cowen - Analyst : Okay, Thank you very much. Congrats on the transaction. So just looking at your slide, it seems like there's a lot of growth opportunities here, whether it be geographically by product by distribution channel. So as you think through the opportunity set to leverage the combined platform, where are some of the top two or three areas of growth? And I was wondering if you could maybe speak to the opportunity in wealth management globally? Thank you,

Question: Bill Katz - TD Cowen - Analyst : Thank you, Michael.

Question: Steven Chubak - Wolfe Research, LLC - Analyst : Hi, good morning and congrats on the deal.

Question: Steven Chubak - Wolfe Research, LLC - Analyst : So, I wanted to start with maybe a bit of a multifaceted question just on the LP overlap. You note in the deck that Ares is currently managing $33 billion from GCP International's top 20 investors. And while about half of these LP's are not currently invested, I recognize with a real estate, it's still amount, a fair amount of LP overlap. So I just want to better understand the opportunities to further deepen and monetize these LP relationships. And at the same time how you're handicapping the risk of cannibalization with your legacy real estate business?

Question: Steven Chubak - Wolfe Research, LLC - Analyst : Very helpful color. Thanks for taking my question.

Question: Brennan Hawkins - UBS - Analyst : Good morning. Thanks for taking my questions. You flagged during your investor day, you flagged Asia and real assets as likely geographies and capabilities of strategic focus. So curious about whether or not this totally scratches that itch or should we expect more to come as you continue to scale when I was origin? Thanks.

Question: Brennan Hawkins - UBS - Analyst : Great. Thanks for taking my question.

Question: Ken Worthington - JPMorgan Chase & Co. - Analyst : Hi, good morning. Thanks for taking the question. You made some reference to the next GCP fundraising cycle. I think to Luke's question earlier, where is GCP in its fundraising cycle? And are there meaning or is there meaningful fundraise expected or bigger funds in market over the next '12 months? And then I guess a cleanup question, what portion of GCP's fee paying A is generated on committed versus invested? Like how do they, they generate the revenue?

Question: Ken Worthington - JPMorgan Chase & Co. - Analyst : Great. Thank you both.

Question: Patrick Davitt - Autonomous Research LLP - Analyst : Hey, good morning, everyone. You mentioned the Japanese vehicles are perpetual, but could you give us a little bit broader picture on, on the mix of a by vehicle or wrapper and, and mix of a lock ups across the broader $44 billion? Thank you.

Question: Michael Brown - Wells Fargo Securities - Analyst : Hey, good morning. Like, as you mentioned that the Japan franchise, that's the largest, the largest based on a and, and fee paying a. You touched on some of the funds there in that market. Can you just maybe expand on the near term growth potential from that market specifically? And then also what the kind of intermediate and longer term opportunities for areas in GCP together in terms of the opportunity to grow your franchise across private equity and credit in the region?

Question: Chris Kotowski - Oppenheimer - Analyst : Yeah, good morning. Thank you for taking the question. I want to try to understand the dynamic behind this drag of the data centers in the early years and then the growth after that. So a two part question one is you mentioned $200 million in FRE the first 12 months of the growth. Is that just the real estate operations, excluding the drag on the data center or does that include the drag on the data center? That that's the first question

Question: Chris Kotowski - Oppenheimer - Analyst : Okay, great. Thank you. And then secondly, the you mentioned '25 and '26 it's the and then '27 it becomes positive and I'm trying to understand is the dynamic behind that the fact that, you've already got the, you called them development vehicles. I'm thinking of that as like equity funds and that then there will be subsequent credit drawdown funds as you develop those properties or is it primarily driven by the milestone payments that Jarrod was referencing?

Question: Chris Kotowski - Oppenheimer - Analyst : And it will be both credit and equity or primarily credit.

Question: Chris Kotowski - Oppenheimer - Analyst : Great. Thank you.

Question: Shakira Taylor - RBC - Analyst : Yes. Hello, good morning. And thank you for the transparency in the presentation. I wanted to know if you could comment on your just for leverage, obviously just in the acquisitive environment wanted to know what your tolerance is for pro forma leverage and anything on the follow?

Question: Shakira Taylor - RBC - Analyst : Perfect. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 08, 2024 / 12:30PM, ARES.N - Ares Management Corp To Acquire GLP Capital Partners Ltd Call