Ares Management (ARES) 28 Oct 202020 Q3 Earnings call transcript

Welcome to Ares Management Corporation's Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode.

As a reminder, this conference call is being recorded on Wednesday, October 28, 2020. I will now turn the call over to Carl Drake, Head of Public Company Investor Relations for Ares Management. Please go ahead.

you conference us call. thank third for and XXXX quarter afternoon for today joining our Good Officer Officer. I'm Chief Michael Operating Executive today Officer Chief joined by and McFerran, Michael our Arougheti, our and Financial Chief

our the Cwiertnia, In addition, number Kipp Equity our today, our a Private Benjamin, we deVeer, of Estate Co-Head Head Bennett Co-Chairman and Equity Credit Real question-and-answer Group; Head available Rosenthal, Bill of including Private session executives have of for Matt Group; of Group Group. our of

Before I made to are you during uncertainties, our remind this risks filings. and SEC in including to we statements risk want begin, our that factors those identified call comments contain subject within and forward-looking

any not such performance statements. that results past guarantee note a forward-looking actual differ we could undertake update Our Please is future and materially results. of no to obligation

accordance certain During financial measures isolation or refer as non-GAAP a considered Principles. measures, which in Generally this will for in call, not be from with we substitute Accepted Accounting to should prepared

December December share, to of dividend last morning be per of Fund. In our available on the XX, purchase addition, to dividend same measures. announced earnings quarter the that for an to we XX% to include XXXX. on of $X.XX quarter ARCC comparable our offer declared holders directly dividend call Ares Resources year. we fourth third that sell Please presentation interest This in fees XXXX I reconciliations fees. a Nothing will the record common to Part an solicitation the of our our on or quarter refer Investor measures increase paid XX, section for website an our GAAP any this The constitutes most on note of management representing of offer of an

December quarterly December preferred per of to is share preferred which our Series payable We on XX, $XX.XX at XXXX. A XX,XXXX dividend on holders declared also record

with start who highlights. and over some the business to turn will will Michael call I quarterly Now, Arougheti, financial

Great. well. results. all of I afternoon and continue setting the hope wish I areas our you the Thanks all Despite effects well we functional good quarter core of you're record Carl, with across execute crisis, third everyone. broad to healthy and COVID

saw growth a third quarter XX% market. our growth of some our realized assets we driven Our our and growth monetize strengthening a year-over-year XX% management, investments of a under nearly in in record in quarter fee-related as earnings income by in XX% fundraising. equity

against our our markets. continue to liquid to FRE scale, pleased benefits also reported I'm favorable technicals margin we also say as We fund that economy of see of was highest performance generally the our IPO. the in an since strong improving and backdrop the

grow Going forward, XX% our we ahead. earnings continue by positioned in least well the fee-related year years that business is to believe to per at

previous a was as activity deployment our quarter, market compared measured third the transition. to slower was transaction During periods more little and in

alternative quarter, billion in continued During invested particularly third direct versus and private to credit special lending, our on second billion $X.X focus from funds providing flexible strategies. we companies, global with a in solutions our the scaled, the opportunities quarter drawdown $X.X

as within interesting both We deployment both pickup real backdrop see monetization. Europe, M&A North expect been there sectors to also activity volatility. and certain we where public are has We're transaction and the healthy for markets create assets starting estate, in seeing which considerable a in for will a significant some undervalued in America opportunities such

and environment. fit cash just also company. example both This underlying diversified our We and last alternative real collaborated was for believe real and alternative in platform looks a of our last recently our where how for this in leveraging attractive strategy significant information funds bring to German week, strong we for market company, with this we example, class, made current In This market. take value Zurich-based owner a investment collaborating a traded scaled estate our to this pools the given specialized a assets, preferred asset opportunity scale, For and core by stable our see natural flexible with property with partnering managed we public asset single European a situation, estate asset specific equity in deal unique in strategy creation. credit assets. exists credit a solution actively and flow. class to navigate our flow strategies residential well experience a publicly we're which perfect the the across with contractual convertible an it Also, leadership's rental of and our fit that manager we're family value of private deal more announced is

example, recently direct As Opportunities facility our transportation leader team commit lending rescue to strategy in to first another partnered Special a to global the our with capital a lien industry.

remain turning investing interest frustrated with traded valuations of be low very volatility Investors to challenges case dual the rates Now and in to the The fundraising. and markets. compelling. high alternatives for continues

the with In broad trusted among offering relationships addition, a long-term product the is of consolidating fewer ongoing. managers investors trend

We clients commitments we their continue runway allocations LP their increase have to long our they and for and growth expand that our across alternatives we a fund both wallet share believe as with our platform.

coupled attractive across with new other in see evidence into the desire multiple existing capital of a strategies. Ares to commit to continue strategies, We re-ups this

expect we fund of flagship on initial quarter reflects the fund, was or fifth that is that committed investors investors hitting we're we our relationships in the the our at XXX EURXXX and existing our billion. our of capital XX XX% and believe size gross we've approximately XX% and Once will testament to built consistent capital Ares fundraising directly the and way committed our new in to billion our deep European Year-to-date, $XX to our which for market years. largest EURX be this our was existing $X.X more including of May. first billion XX growing lending strong Specific was performance organic our quarter the months. or and that including have LP direct nearly more fund raised, The attractive over finished, lending already to us which just quarter puts direct to To-date, fund. for from capital leadership third ever with for XXX commitments with European well investors XXX investors $XX.X and the a raised new raised existing nine than plus previous We're accounted raised, X last The our and more this investors third of launched a which fundraising, we than note, XX billion target million ever months the for EURX institutional largest approximately ago five investors segment. platform. XX above investors investors, from closings billion over

credit closings post During additional billion U.S. quarter its other the target third quarter, approximately across fund flagship progress make original also alternative our fund totaling credit including billion. credit, of we $X Of and liquid with continue end, credit alternative our reached strategies, to note, lending. direct $X

investment coming concluding the closings Given pipeline, investor strong fundraise. considerable in momentum the we're planning the months before additional for and

remains has strategy a in XX% AUM increased credit and last alternative than quarters six the Our us. opportunity by for significant more future growth its

corporate commitments closed flagship $X.X fund to PE billion on of date. has Our sixth

the we XXXX. hold hold final here the expect as We've and first of half to investments both of today, in toehold We plan closing closing a in and have opportunities. fund, we initiated another to by strong the sit traditional pipeline year-end distressed

and market now that We transition on which billion infrastructure of climate in additional $XXX secured inflows SSGs fund, $X senior is initial approaching fund also had the commitments. focuses direct closings million energy Ares our to in lending

into Our focused call, The meet in the exceed there closings surpassing October, fundraising for goal we've in that and year. shared is we were opportunity folks billion Based XXXX. of with fourth we we year on that $XX our momentum we billion on our $XX incremental an last on pipeline. is to already that fundraising fundraising the quarter a saw achieved forward continuing record gross in significant commitments that or believe quarterly recall,

these in raises of and billion are market a new the performance fund Opportunities equity funds either We Outside our our of are of strategies which significant our annual or end that commingled the and funds, quarter. gross all managed performance returns in funds, amount next raised. will X% certainly accounts more incremental forward, other $XX was private through which that launched fundraising between quarterly generated to led the third the collectively, these strong commingled currently in expected across amounts Looking gains QX. Special equity in capital have our X%. for and of strategic partnerships, funds And returns we funds have be public the funds, vehicles, corporate we XX efforts capital our months. over continue That and to fund closed-end significant targeting closed a than commitments traditionally dozen positive saw account commingled various of by with

Our and lending also gross credit between liquid European direct X.X% generated X.X%. and ranging returns composites

U.S. a continue with third X.X%. quarter Ares see of performance direct Our net flagship fund, Capital improved lending to Corporation, return

the composites Our realized we sale positive advantage Decor position income quarterly we returns ACOF third from monetization & markets strengthening our also from to X% real quarter, approximately final in the of X%. a generated estate equity took during of generated perspective, Floor ranging From equity the and III.

year. Company which in position IPO completed sold the we in ACOF minority an company, a earlier addition, the In portfolio AZEK IV

happy strong, monetization equity now are companies and on so to markets. market see as the improving And continue is to both to public we'll markets continue We private the in opportunistic be prospering backdrop front. the be

that subsidiary I Lastly, initiatives Last and our before our to Ares strategic plans reinsurance agreement. partnership our a Mike, FGL is brief with closed, through the grow accelerate Aspida a Holdings reinsurance our reinsurance of Once Aspida call the believe we provide into this FGL platform. through additional platform through on Holdings acquisitions. Solutions and for possible Insurance announced flow both subsidiary that acquiring I want to it month, to turn organically, transactions over will entered we update insurance a

platform financial growth support capital. enhance same we as Insurance continue Insurance CIO Mike and and Of CIO to turn expect Solutions results. continue for we to the just remain Ares business Solutions. note, and with And added we Our an F&G leadership positioning third-party Raj on I'll Mike? the remarks now Ares over Krishnan, this as the insurance our his team our sponsored to former plans with of Ares annuity largely McFerran for call our to

Mike. well. in with hope like position. more I'd begin detailed you of results before and of all are review to Hello, our to comments Great. safe I turning some level quarter high Thanks, everyone, and financial the

which that benefits we business the The growth are third of trajectory of and from XXth quarter overall scale. the highlights strong growth, deriving marks consecutive our FRE quarter greater our

largest dry ever our our of quarter of As with fund, flagship million, this close fund first our a quarterly represents capital FRE, single Mike the highlighted, of AUM, raising, powder an quarter with fee-paying yet lending financial AUM, milestones earning not new for fees. record AUM excess direct and several business fifth $XXX European largest

$XXX of we along with go the F&G billion $XXX.X of $X.X the at of million In approximately increase this from other strategic adding economic compared from business closed addition, earnings ventures the trust Ares that closing of to I'll SSG the Fee-related up in AUM with an quarter our despite will same upon fee-paying billion In investors This acquisition in of Capital have the us. are that, and quarter XX% the XXXX. illustrates Aspida include SSG connection year. the growth With quarter. in period its of COVID-XX third the our within of for million, AUM. through details was fallout totaled quarter, third our Year-to-date reporting acquisition, $X.X acquisition. a our Re initiatives, XX% of we FRE last the the beginning and resilience strategic the

our the business durability of management fee driven Our continued model. growth demonstrates FRE consistency and

of by the target a deployment Based XX% fee-paying fundraising Our a months. With and a market $XX.X rate, of our that and margin results of year-over-year. billion and margins we years, basis margin quarter the not to from expect and quarter, gross continue expansion. timing grow within the increasing reached believe an This achieving we upon for year increase fundraise per to year deliver we can billion XX% conditions, XX%, points further record and last XXX the XXX of to margin XX% ago new respectively $XX.X in reflect FRE up three to highs, over the for XX% our XX% AUM shadow drove of if AUM XX AUM, high sooner. an quarter, nearly run

of prior income represents for the the for quarter, totaled increase In consisting year. million of XX% an quarter the year. of were XX% which million as $XXX.X totaled or a representing and the Our $XXX.X which compared million, million, XXXX. $XX $XXX.X management represents prior over XX% an third increase compensation comparison, the fees over expenses total quarter to increase Realized nearly G&A

Equity mainly Decor & driven $X third Our billion contribute from Company, Group the year-over-year realized and recognized stock for of stock, XXXX. in the preferred AZEK quarter per Private our income quarter A over in from was in of XX% and common net the income. Floor After-tax realizations which increase sales third realized an $X.XX of share third of distributions quarter, increase the to Class

turn I'll metrics. our to AUM Next, and related

quarter, compared quarterly totaled XXth, a increase billion September a for $XXX.X $XXX.X AUM of our XX%. a the As to of second billion

SSG $X commitments AUM XX%. $X.X the billion, over billion of AUM acquisition. driven Year-over-year grown market Our of was growth and capital gross new from appreciation $XX.X Capital billion our has significant largely by

increased year-over-year estate by alternative real in strategies. quarter credit and the AUM global approximately and driven breaks equity $XXX.X down XX% AUM, initiatives funds, funds meaningful strategic funds, lending, X% deployments X% direct with of special funds. XX% XX% fee-paying fee-paying which We private Our third opportunities ended credit our billion

powder, new ahead this available us. optimistic the to if increased billion uninvested of $XX.X deployment year-over-year. capital an Last, totaling incentive dry fees we of million. high with is on prospects available billion at AUM our which, increased $XX.X billion, With capital ended by $XXX quarter future annual $XX fees and XX% of increase the billion $XX.X management than our paying for billion AUM $XXX.X more growth of to and very to over potential corresponds eligible yet available quarter remain significant not end. of record Our $XX.X and was amount, deployed, approximately billion of We

more and at revolving Last at structure, $XXX financial moment especially robust in the our to like which We quarter of beginning year I'd the advantage we with took $X appreciation million. a X.XX% the environment the fees XX% at sheet the With our the interest building we amounts $XX of take balance, represents drawn saw this year. first net including cash place quarter, and income, This than to our of net end to further increased this $XXX The billion on uninvested $XXX.X liquidity address time. XX% since the million quarter the third position a performance ended continued performance and million billion record accrued and sits increase increase levels in no of with billion year. nearly accrued on long-term have next, strength in recognize of believe value incentive from that's from the rate, AUM blocks which notes a income meaningful quarter generate our balance with rate through the $X.XXX facility. performance now second our in over eligible and flexibility earlier a in we corporate quarter credit along market capital low lowest issuing by XX And additional cycle.

Importantly, and million. in of excess we XXXX of we have of our all maturities outstanding until have cash $XXX debt no

well related and our XXXX As continued reevaluate strategic liquidity we perpetual scale to we previously volatility issued into With the the With equity closer, callable areas. This we this retiring concluding position when especially aggressive opportunities may June And us outstanding capitalized, very possible see uncertainty, in beyond. any expensive comparatively $XXX it's more as calling stock quarter and that to newly a to of substantial this compelling of a preferred market deductible going debt. million announced, when interest strategic is I'm to in advantage going this of and of option are and will XXXX. to date as final for and remain of sheet, balance take if arise. we now remarks. we compared gets election our further as positioned turn strong be gives and back fit X% Mike

Mike. Thanks,

in outperformed environments "all market We of those various said it's markets. have business unique has is Ares one and can and that weather perform that a long difficult in businesses", differentiated

Our just we're also financial demonstrating our success. and is current business most record resilience This backdrop, forward results capital the and market momentum. durability in great isn't strong evident from but experiencing raising our

capabilities are approach, flow breadth these advantages competitive differentiated we we tested cycle our Our all and see the performance of us our the and level well this during deal our markets, originate. in and serving challenging fund

of to leverage now our direct and we more the our our able capital businesses strengths raising to and our underscores special our PE credit. but like not businesses recent like of We're think alternative scale comparatively can diversification lending, only business. and comparatively grow mature opportunities I some scale

Lastly, for new initiatives, consolidator that growing is have in growth. on execute reminder market a continued and organic our ability and that strategic a solid to we we're a inorganic avenues long-term multiple

grid fortunate on to and of we're mentioned, how impressed capitalized just these stakeholders am our how to all Mike all want and our doing times. conclude As that demonstrating expressing the I the for the these hard opportunities. I and dedication proud am growth team challenging by said, for work be With that exciting to execute of is grateful well that I in to and all deliver they're

of investors duly our also our up to line open support ready and we're thank company I today. your of think that, appreciate operator, We the you time continuing questions. all And for all for for we with

encountered apologize at call. would We of issues you. the today's we like for beginning Thank to the

question Our KBW. from We Robert with ahead. will now begin the Lee question-and-answer Instructions] session. Please comes go [Operator first

thanks. Great thanks my for and Good afternoon taking everyone and question.

in of kind good. been your and your from peers, investment outlook broadly the curious, Mike, So you universe? but just I deployment seeing to are what the of starting I that getting has are performance if I are the mean that's the hearing that more hope -- of maybe But opportunities maybe credit I flat fall it's mean clearly what of competitors is footed not kind you seeing greater what's better kind just competitive from by on well. whether away acquisition we some some you am flat, everyone's guess, capture are what now more or because And LPs? particularly that of appointment, happened. case, signs were quite is creating they are

you secular we it there of like going hit of Sure. always a I'll can is so one and quarters, crisis platforms the share invest performance, try the is. in based about drill a that alternatives, through we we we have go size an trend the alternatives performance lot markets we larger believed our in and get, the go consolidation. larger There in Anytime that we the the if is depth advantages we're see down. that long And there, sometimes in business, in can a most we've competitive then and follow-up, we overarching talked way to that better And for the past larger. where in as about the have market the found have through magnitude now, hurt more at we liquid getting on unlike least can

takes this think than I in that how is that consolidate share in and different past no many crises we crisis forms. So respect

out we to point, pivot flexible capital have So, and scaled as the market because develops. to your we capital deploy

four where in now the private the loans platform months and were active middle of through nine during capital liquid or markets in pivoting rescue yet comes much the the the five into pivoted starts regular months on to buyout year the of sidelines. the the and as year deployment And way the into see economy in year, market of off the the more actively again heal are across the we so first you'll our first that markets

through cycle, to capital So well. have able to we front the to and opportunity to the have, I play think succeed in in each and execute and you have order the every gets way that people you put you the of have be to that

where in up time the and balance actually So, showing differently the that's hear anecdotally prices weaker that and talked yes, the across with with with that the having less us from single functioning were of three enjoying home about being larger raising experiencing than our all and markets larger playing environment, liquid some we smaller a peers we've to are. often of think We I weaker And those significant went phases the are work juxtapose deployment managers think that are portfolios, with think cycle. think products. of One are the then fundraising. multiple I that also into were challenging crisis much taking you capability, who phase I the the capital sheets, peers I very active liquid lastly, we asset very regard first distressed. up, in success this all that not

we QX, coming I demand think to we economic a the just that of for of asset of asset going kind as albeit now, both, people of quality as of balance year, where year. the of high-quality liquidity which And the slower some the recovery, call combination sheets selling uneven, time. rates markets with capital through The deployment, the assets need high lot rescue what was for remarks, taking that's second a is bad or probably normalizing. part a lot we've prepared prices and prospects the quality of some opportunities end owners support I in and off head phase the the that being been are in were low for I asset And a sidelines with people's into in as a on middle result are now been and mentioned longer pent-up sheets the advantage largely of tax for would pools, view in driven decent think what the deployment I balance doing

people the very, cycle capitalized. the we that's that are get up as of when the pick across talked of into phase still are we significant in have very who you We deployment kind And seeing platform. spot, sweet poorly about, because

impacted opportunity go for COVID to and not way more and companies between the pick flow regular have So, impacted. away, assets to you non-COVID the but choose now distressed opportunity relative the does

So and we're into early into about monetization pretty the deployment of -- optimistic end year XXXX. going the and into

Right. Thanks, it. Appreciate Mike.

Thanks, Rob.

from with next Gerry go Jefferies. O'Hara question comes Please ahead. Our

thanks. a as years. little it Great, would a you hitting you little target confidence unpacked three sense to it the next you push be that XX% that of kind what little that with maybe obviously. color target, bit, McFerran just relates any for provide would around what of Can up perhaps accelerate gives one give bit FRE mentioned over it and additional picking but Perhaps Mike a that you can -- us Maybe could out, or of even you. number Thank be around helpful. that margin

lot Sure, forward-looking I'll we happy as we, that. start to you put a Gerry. know, like with, forward don't guidance Yes, of

while others, statements we outlook consistently the or I would think think can't where So either and when made about margin in over-delivered. guarantee past anything we've hopefully we've the be we it met under-promised

I think think back out, as pushed being risk far low. I that's of So getting the as

embedded talk online. in as the Gerry, I And capital doing management heard for last -- we deployment. put years, work it's us you've XX those the months we know market that it going the so, meaningfully backdrop about the to our margin fees the of this to about last all and in businesses, thought raising. not is of really bring life to investment the teams, cost timing basis two When grow yet in impact related our basis quarter to really functions. cycle of capital which continue today non-investment AUM earning mean, capital our expanded are our the Our has timing points. the I and has of firm fees expanded teams, XXX our our raising when what's going with that talk to in that The it's past, XXX it over already capital points over by

operating coming those when as And we operate that a revenue we So comes with online. that much in are comes a expenses of online at front margin higher result, leading in it at. that revenue

the yet going that's So we continued it related AUM at the well really, it's as achievable XX% business, rate and but fees, just how a of trajectory three earning run definitely that, frankly the discipline funds not function was within expense and to of within look -- amount happen a years may and a when sooner. -- involve be of

thank the Great, for question. you taking

Sure.

comes next go Credit Our Suisse. from with question ahead. Siegenthaler Please Craig

Hope everyone. doing you afternoon, good Hey, all well.

Same to you, Craig.

I V the still businesses also inception. and and know but doing wanted are and with ACOF since perspective wanted on fund, I to the I start positioned on how your performance young it's a

Sure.

Matt why invented let on, that. have we We handle don't them

Great. Fantastic.

So, and this I join in. is can I'll Matt Cwiertnia, start then

we we ACOF question, So your non-energy answer break very populated fund. about portfolio being good, one optimistic to V, parts, the two it the feel very We into we and think have opportunities that part companies, to of long-term front continuing very we of weather are have great in the and portfolio think with that just companies good what call crisis, them. franchise this we

So good we feel very about the non-energy portfolio.

V to challenges think the of those balance we a time. in those of being in recovery the lot long-term. and time way two I a of this companies ACOF lot those and worked When restructure a On side, hopeful over into those sheets are optimistic year, hard a very together, we their room fund operating teams some investments to make had we've the energy the of but give energy good management about you markets still put

about does I and to portfolio have happen, we've success position for in a what in think for that good long-term. bit that we markets what little feel we take done, the place try to energy of control but the to that needs recovery energy that

how to energy large the allocation just are within is downstream you the quantify that midstream V? And able exposures, on are Thanks, And also or assets? those larger ACOF Matt. exposures upstream, generally

Sure.

in side and of one side. primarily now energy from is an about to first, of on portfolio overall. And XX% on XX% less fair Fund it's the taking midstream closer sort probably again, assets. the start invested in I'll value energy perspective, we're on ACOF So, remaining basis V the second funds the Today, a the value

And so our goal portfolio in is. what sort for back our is and money and back us, getting hope portfolio that our that beyond of energy towards making

Matt. Great, thank you,

Craig. Thanks,

Morgan. Please J.P. go Our Worthington next with question ahead. comes from Ken

some insurance of Ares sure Hi, some on you good if alternate you. competitiveness business. price you market not of or recently, Is We are about of the or deal one-off managers F&G that for are. just that's for morning and I'm where the a you competition not? was the highlight insurance Maybe factors business did that. the win see depending for the afternoon more beyond questions that seeing Thank deal. And Ares influenced of sort Could rising? competitive maybe whether

Sure.

in seeing like it are for that with interest with all the to the low market generate of would to trend, long inability and longer the needs as competition, asset insurance sense us, the Ares those but liabilities organized that struggling meet returns competitive is is rates same portfolio. looked the which characterize duration So, I long-term that, and

accelerate. So more if dynamic, we of evolution like were surprisingly, think insurance to us, not on that manage very here the is that differentiated to a amount of aligning name to clients, of stay, about large platforms, how you and I in folks can strategically performance continue insurance asset manager trend that excess generate And oriented a is market. liability start being to managing significant prior capital just of game the because out and continue the just to you and will with a expect It company figure company behalf is transition will actually return.

would to to it expanding fixed if But insurance core our what for of income comment build be you will, think is plenty is I alongside us for what means room I on our to field, alternative the manager. businesses of all there playing business. an continue actually

higher the to private sense So of the income the traditional as income or historically what that or high- a sheet, the lot the insurance fixed income, company call opposed would captive fixed some is for assets. alternatives balance fixed of grade I product makes up credit insurers alternatives clients traditional

So in like set consistent. it's and many the respects opportunity expanded competition, for I said, the it's like folks us

new are again, the of it, going of the sourcing commitment to the to coming not those a So the insurance are because, to at access who continue business and seen capital have who the but us we and entrants think that a think I scale. have building you to so need the are lot building right, are need in you scale, people ones market in I differentiated

Great, thanks very much.

Mike from go ahead. of comes Please with Bank question next America. Our Carrier

Hi, questions. thanks the for taking

the performance strong more middle an the impact is COVID tends some around have of has guys. for investment But and on roll smaller companies. you been of market longer the to So it

just shift your the of opportunities. you given skill you or guys possible areas are areas through enough in have to challenges terms part thus in that into what cheap some gotten avoided that far Price of So the has of market, cycle. seeing

in average in made opportunities team the look than and ARCC comments return yesterday, smaller excess Kipp to issuer a no about some a $XXX think expand. the that EBITDA around as seeing bring the size some there market There's firm I'm Yes. because probably out obviously crisis the continues middle-market, better is to concept the of million is of of we're squarely Ares how place relative kind you glad definition middle-market playing to up now that companies. middle of but of of and to

to smaller institutional quality, models opportunities less in believe fewer consistent obviously crisis, navigating liquidity, maybe exit. durable less or levers to business less for the I they've So, companies access have pull

And would the of so, to in lower upper more end. stress market than end expect we see the the

of most that's see performance think, the fortunately, and of you in deployment the book. market end in-place so I the our upper is benefited how can of

to that's also is we But to indicator, given in should in capital that liquidity we're and assets actually just little to picture, terms because portfolios lot people putting owners. you check more where inefficiency. credit money capital whether return of go with earnings market. the It's assets, opportunities into around scale in will in if companies. clearly we who terms and or down a history that's company have relative be smaller adjusted provider forward those there best rescue not digital loans asset value perversion can and now to to it's higher our actually alternative of of through us, bit should relative continue the clarity be to opportunity a any opportunity a quality rates coming special both our be companies a present the buying write situation seeing us, of direct itself for but individual a creating of a business, in yes, an risk work get return to As we're tell at I higher and those the right lending

it. Got

strategic the thanks. have see that kind the or some to some some moves further position the some in days of Okay, been seen Asia. just your you areas on COVID a but the has And more past. -- made progress, at given of guys terms to on of early least standpoint, then in you markets of early those -- things that opportunities how be longer in to moves growth, of it's for particularly that I made, in it still from know just wanted

Yes, it's interesting.

why pivot I And that. in billion on launched the special a lending having third Deployment particularly already, out but fundraising be Asia, very One significant in come administration's have has to earlier, globalizes, economies are view, been of European we we about they developing recovery as parts along in liquid also cycle, to been and a that the been of despite reasons do, our we XX current the active talked different $X.X terms It to invest a more I is and at want as in set going strategies is But into U.S. close global on we've earlier ability those mentioned, investing, that's that's now have our as where they similar we're market is Asian an the way global. the our towards to to regular of and clearly a COVID. starting build mentioned, other through we've interesting GDP cover path of mirroring to wanted economy vehicles over amount crisis senior fund years, different as the situation and the where same for to now next trajectory. a the the in world, a window billion the we're slightly growth were in there. direct that opportunity is way to want because so so our the juxtaposition markets $X I their mentioned strong, are phase in the if the as flexibly

terms So, that so proposition out and return so the the far underwrote playing Obviously, generation all but good. of as scale early, is value in world both we window it's into we had hoped.

Great, thanks a all right, lot.

comes with Our ahead. from Alex Blostein Goldman Please next Sachs. question go

hello -- ham everybody. great A

also well. So, lot more Mike, been obviously on the obviously the that alternatives ask firms much is where but as wanted both, and as buyer speculation, the There's a comment in side of the world, a broadly more traditional is M&A a you as to we some seller. maybe about but growth seen

a how opportunity, So today distribution the as if think way. business guys could do that momentum round, about in relative other their to growth or for somebody an distribution accelerate partner somebody with the you way you either into having and plug to you buyer the

So, bit of curious I but thoughts know on little your bigger picture a a to that. get

is long-term asset institutional long-term a great I as we've retail pretty and well I there convergence traditional and It's that alternative. that emphasize, Sure. think management transparent -- believe trend would in been a between and as and question of we

I lines as to move towards I look and plus XX scale. these continue if models those And years, will think forward business blur evolving continue so

year every think functional you area, the financial our fundamentals look we've have when I business, is growing to at every metric. been the in XX% challenge we in across candidly XX% per

our mark-to-market of our The in traditional fee forth. of tailwinds so and the the of outflows space risk you volatility, in see terms appetite or compression risk secular business have that doesn't structure We and the for of assets. the have on so the

are our on want struggling frankly attention growth, meantime, expansion in for alternatives hard a towards margin future, playbook wind to industrial logic struggling for to is for for that do vision our business hard the convergence trend eye that a have that. we in long-term performance. where have to execute at back to our the we it's It's models think into So be such it an lead But struggling be or see us what divert because continuing to that on for alternate our asset new there on be you've can active capability, definitions favorable and we acquisition great the will we what as new managers not great what have be and growth will globally, to to means think we of In new the will backdrop. new be the distribution, I geographies seen, to that to where continue asset into means managers we it traditional. open to front, add accelerate

at can on surround way much the we've capability, before organically teams as is higher, that sizable special acquisitions with about businesses bar grow long-term talked with alternative demonstrated actually a because credit, opportunities now we just size in more bring pretty them and we As and things buying. capital we're or where the getting like to for though, to platform, a creation value and accretive than structure is

higher, given we look step organically to things I of always the getting grow been it's at all some our think So is while ability out these bar, strategies. just while high

Mike. Great, that. the makes for other all Cleanup to sense, question agree

strategic think margin the of initiative from of path segment also business. and the us the the side? can help margin there, And like the on the segments, through quite high it asset where the there new looks the On segment part sort reporting, obviously break that out, is growth you you guys incremental it fee in because

more Just margin AUM sustainability of that of the that how curious time. that about with sort over into fees part in and coming of translates model

in prepared a going that, that it's to and segments into it that's become challenging have business business, and -- that the to Ares think be things would there, grow, that in on -- future. because -- I segments much of mentioned look, too expect I in we SSG going try of is be is growing Yes, would will in it. is going evolve different Aspida time focus going to probably out the segments own grow And there. the I again, as -- things margin will to their I area, my some remarks, be over

the would direction relate more that to that group the looking on our segment. costs So, consistent would I you're it, a activities say some of I so that's others, the you with we operations for segment portion what challenging. into when I in management would by way, is, modeling margin, corporate that highlight are What we're that I reporting segment call look know the think at

presentation. think our in So that's I appendix of earnings the

some of that see there. you'll So

more is after have more -- look that definitely once But a run this we rate I that Re a be things -- to couple around to other closed, of little it. to an you'll is our with a see F&G So this easier of apples-to-apples start it think comparison businesses. at

thanks Great, again. very Awesome. much

Sure.

Thanks.

Fargo. with Harris Our go comes from Chris question Wells Please next ahead.

Thanks guys.

is, just very, business mean, Another for guys low. back step business. how the days Do look highlighted, opportunity question on where I just we this still you at so be big are growth be here can the for opportunities? early market and environment, Look, with very this and you business the but it's they you know interest are or interest organic M&A about rates an insurance think more now in rates this more grower I

our the is the platform. legacy approaching have we're build the of it's been insurance we benefits by exposures in that our think approach before, We've way talked I both. not Yes, that sheet about one large balance of any of encumbered

think And on and large sitting to you're generate in-force to had or a rate need the struggling with liabilities environment, may be their know, true, we I we pension in deal individual. support actuarial to returns or with were fund we going what this that's insurance if is an company they everybody to rates, differently. here's models. that asset the feel legacy So, book But low we whether

of about And to about to need so generate think they and rates to how return through are going in continue but low retirement. I to think drive themselves savings, people the think

the that the the spread top way to of At [indiscernible] the going is day, and others end continue of So retirement I is this to market we business are the at lending think business. it grow. list annuities a whole

differentiated growth it going continue we living that's as that to generate to in. for structuring spread, we're be origination excess use And so confident to a world pretty can as our and to be long I'm the vehicle will continue then us

Okay, thanks a lot.

question Adam with Please Beatty ahead. go UBS. next comes Our from

much seeing real deal cross-asset get my like taking highlighted of generating for you. perhaps sense many you a -- -- feel wanted real out Thank you you opportunities are you're that. or thank comparatively of how how estate the question. in for deals types commentary and to of otherwise, Hi, broaden a estate, and involving that those to In positioned that how and perhaps just or

Sure.

about people what who a those a on similar known appreciate. know talk lot we I heard to So us then long the approaches. collaborative have the time, of power talk of execute it's about that call people us Adam, and always I and many have culture, actually harder platform think

and to create That some any in I aligned think how in grow constraints prepared up incentives collaboration partnership of have siloed to to sense the many and invest with collaboration the businesses highlighting get like environment. we looked not are we can the ours have we and were active who that of that core that have we didn't and remarks. is that type can

between example, U.S. lending recorded harking to lending is direct our and of called back quarters, a did which collaboration couple we and that Ardonagh, direct close a as an Unitranche if actually European the as largest company Unitranche the $X you team ever billion, done when was team. for our European So

capital that etc. situations if funds market a come to better unique with there many where situations a for so catalysts together you for scale, that's The us where insights we're U.S. capital scale into forcing credit that transaction or it's these a that and is business. have collaboration. the of mechanisms and When into lot at case like the to hybrid And relationships, for there's a teams European one for have this a estate because are So is a lease that amplified their active unique Unitranche expertise net real then information, get all crisis assets. of you looking those bring of the regular part expertise are you in going need the everybody. now, bring a of to we kind of either happens get just reason can is challenges pushing force -- these together, collaboration want it's or flexibility, capital structural

ever, in of now more the think So core middle ever culture crisis, collaborating manage to say we in here. than now to and people the we the it's have more about not, partnership we're just how I need terms it's core but to be business how would a than we of

Great, that's really clear. Thank you, Mike.

comes next Morgan Michael from Please ahead. with go Our Stanley. question Cyprys

more that's excited a Hey, could you dive raising good special them, ones there. taking guys on most there, was afternoon. hoping one I organic capital organic you I bit raising capital initiatives, some you've are the the are about are into question. in guys the year you're thinking capital, cusp imagine particular, of initiatives the of the for sits newer Thanks in just building may adjacencies which two? in that been hired ones could teams, others additional raising be or folks you where out you've be or what How the guess from here? of next about on extending out

secrets capital of so away I'll remarks, number generate markets. of so be in commitments, step that that the quarter. queue strategies our are through months $XX incremental in that out of kind don't highlight in excess funds adjacent over had what equity end going XX Yes, I give Embedded talked want raised of the here, prepared of will we and are the plus in those billion to we in are to next think trade we just the some about

healthcare be lending parts direct private healthcare leveraging our expertise leveraging expertise in into into example, ecosystem. our of for market it may other So industries, specific the in equity,

want many rate burst about I'd to till is by another folks example, and the wait then onto obviously and to asset and new on where they're So, But a talk I incubating, highlighting is something platform. last one a solutions special bringing don't be the rather driving that are opportunity year drill alternative over type we're have capital able so by XX% been growth things what are we there half is down base great that grow we've of credit and to key organically new we and evasive, is to you're interesting but how that to happy we it. the

of we think you'll over are good those of quarters, situations far of next exposure to what types along couple and that the number get So those very are. I a some have

on that but the infrastructure front, opportunities that not Maybe are or just just here what Okay. get there How just I follow-up an you I growing that infrastructure some opportunity the of today, of be, platform? that your further update maybe change give ask sort scaling and business. set investing we if And spending was also hoping might could just looks deployment what kind how of you're the can an wave growth? has a seeing, on catalyze a on blue that from bill? might any

Yes.

is transition we market for the call close quarter That both technology. team, focused a that and infrastructure, XXX% exciting fully the and ranges the deployment mentioned, residential, electrification, which infrastructure credit our entire into climate we energy and that infrastructure been investment the to well. where renewable on and It's from the in transition battery vehicle the the renewable technology on where it has So are that's infrastructure like both on ESG is solar with investors been first money an repositioned equity now side and there part, in most has is we our what very investing around strategy, had into as The market power we now of sustainable opportunity renewable think where the energy where the that. be. focus waterfront is storage, consistent from stand things for and will generation going, I also as stand standpoint, we

So that really runs the gamut.

a massive be folks catalyst favorable the probably unlock at been that bill capital big much if fuel through think we heavily we've and opportunity I and as level infrastructure have given state significant thrive, blue business energy would kind well. of I pulling just that we pretty at to the despite like wave consumer level, supportive has think of feel going actually administration they're a industry, that a current happening that a blue for that's fossil set preference renewable position more wave us. so for way a the business there. yes, fact and actually The But because renewables, seen team the the and the change that that's for local there's the the

you. thank Great,

wind than and and I call of am Obviously we Yes would to it. so have sustainable go. range what the solar. just infrastructure broader proud of I is

as would we've U.S. So out then I other us now, well. see been us market that geographically, our continue investment business to you to to And continue there. would to think I as expect but expands broaden look limiting geographies, right in the see

thank Great, you.

Thanks.

from Jeremy with comes ahead. Campbell question Barclays. Please next Our go

it, so expenses maybe McFerran. Hey, thanks. after follow-up Level, high-level is quick and for a Mike just good

thanks clean up First, color But for the on wondering type your here? or around like that or on pretty since lift from majority that margins time, going else to really a corporate in went if bought wholly up geography corporate stake a guys near-term business. formed was I'm something if that more about over didn't this stake SSG on cost. from costs flow segment minor $X was there FRE you quarter-over-quarter, so little be million might up of looks expenses

say I'd quarter that. question. this about Good to of related $X million G&A was

would we we're think so in million quarter, XXs, prior $X including I to G&A had SSG -- I be of last -- I probably its [ph]. to said thought low kind would off So, back XX.X the

quarter, some capital the expenses some raising. did to This of related have we non-recurring

have and and the a costs, volatile, more see just little function I all related booked around me a the little time a that, just will just As get a to money, you raising they expenses quarter. you're SSG professional can raise. elevated lot lot G&A capital this of a you restructuring appreciate, to be fees work when but of of adding felt

Got it.

it, Good frankly. reason for

corporate then side And FTE -- to there is any exactly. through ahead are Re segment? we that to is on look flow going as the too the there going be or the to list Yes, mostly close

segment. to going through flow It's the

a lot. Thanks Perfect.

Sure.

like no turn back to concludes Arougheti I the conference This over our session. further any remarks. question-and-answer Mike closing questions. for Showing to would

of look the we in and Dodger all disgruntled you. with as Yankees everybody speaking partnership, We hope us. win quarter. see, No, also I'm the L.A. want appreciate well, I spending my to next fan, safe happy tough stays we spirit on a congratulate do colleagues and And time but forward everybody everybody of for to with to

So, Thanks. to congratulations and quarter. everybody we'll next talk

our today. Ladies and call gentlemen, concludes this conference for

you part dialing conference this X-XXX-XXX-XXXX. through be an of If to archived XX, call international of call, by callers will any available today's and missed XXXX replay November dialing XXX-XXX-XXXX, by

also on of website. available located XXXXXXXX. link on of replay archived will homepage number be please reference An a the For webcast all conference Investor the section replays, Resources our