Carlyle Group upgraded to Outperform from Market Perform at BMO Capital » 05:2009/1309/13/21
CG, BX, ARES
BMO Capital analyst Rufus…
BMO Capital analyst Rufus Hone upgraded Carlyle Group (CG) to Outperform from Market Perform with a price target of $65, up from $59, implying 35% total return. The analyst expects a "narrowing of the valuation gap" relative to capital-lite peers Blackstone (BX) and Ares Management (ARES), driven by a near-term inflection in organic net flows and earnings growth, a reduction in the perceived cyclicality of Carlyle's business and further increases in the accrued carry balance. While Carlyle's recent growth has been below peer, it should inflect in the near term, Hone tells investors in a research note.
|Over a week ago|
Ares Management resumed with an Equal Weight at Morgan Stanley » 06:4109/1009/10/21
Morgan Stanley analyst…
Morgan Stanley analyst Michael Cyprys resumed coverage of Ares Management with an Equal Weight rating and $90 price target. While he sees a path for fee-related earnings to reach $1.3B in 2025, his forecasts are in-line with consensus and he sees strong growth prospects being "largely priced in," Cyprys tells investors. He also sees less scope for upward revisions given his view of the potential for greater competition, the analyst added.
Ares Management appoints four to further expand net lease activity » 06:3709/0709/07/21
ARES, O, APO
Ares Management Corporation announced that John Case, Ben Fox, Joel Tomlinson and Taejoon Chun have joined to expand Ares' presence and activity in net lease and related investment opportunities. These additions reflect Ares' view of the compelling investment opportunities in the $12T net lease market in the U.S. and Europe as well as the Company's continued commitment to enhance its capabilities across the platform. Ares' net lease team is a joint initiative between Ares' Alternative Credit strategy and its Real Estate Group, building on Ares' long history of sourcing and managing net lease assets across these platforms. Ares has significant experience in the asset class with more than $4 billion in net lease investments made in the last year. Messrs. Case, Fox, Tomlinson and Chun will be based in San Diego and will work collaboratively to leverage the insights across both Ares' Alternative Credit strategy and its Real Estate Group. In addition, the team will leverage the experience and relationships of Ares' Credit Group and Private Equity Group to help source compelling opportunities that draw on the competitive advantages of the entire Ares platform. The team will be responsible for advancing the net lease strategy, acquiring properties, developing innovative capital solutions and structuring investments. The team will also be a resource for managing Ares' existing portfolio of net lease assets. Case joins as a Partner and Senior Advisor and will work with the Company on a part-time basis. Prior to joining Ares, Mr. Case served as Chief Executive Officer and Director of Realty Income Corporation from 2013 to 2018. Fox joins as a Managing Director. Prior to joining Ares, Mr. Fox was Executive Vice President, Asset Management and Operations at Realty Income, Tomlinson joins as a Managing Director. Prior to joining Ares, Mr. Tomlinson was previously a Partner at Apollo Global Management, where he helped build and operate the Apollo Net Lease Capital Corporation. Chun joins as a Principal. Prior to joining Ares in 2021, Mr. Chun was Senior Vice President, Investments & Head of Asset Management at Realty Income.
|Over a month ago|
Ares Management price target raised to $85 from $77 at BMO Capital » 07:0208/1308/13/21
BMO Capital analyst Rufus…
BMO Capital analyst Rufus Hone raised the firm's price target on Ares Management to $85 from $77 and keeps an Outperform rating on the shares. The analyst cites the company's new medium-term financial targets announced at its investor day which outlined an organic path to over $500B in AUM and which implies an about 20% CAGR. The outsized organic AUM growth should drive above-consensus fee related earnings over the medium term, Hone adds.
Ares Management to host virtual investor day » 07:5508/1208/12/21
Ares Management to host virtual investor day » 04:5508/1208/12/21
Ares Management to host virtual investor day » 16:5908/1108/11/21
Ares Management price target raised to $80 from $71 at RBC Capital » 06:3208/0308/03/21
RBC Capital analyst…
RBC Capital analyst Kenneth Lee raised the firm's price target on Ares Management to $80 from $71 and keeps an Outperform rating on the shares after its Q2 earnings beat. The company's strong fundraising momentum continued in the quarter and the market backdrop remains conducive to opportunistic portfolio realizations, the analyst tells investors in a research note. Lee adds that he is positive on Ares's exposure to private credit and sees substantial growth for its fee-related earnings over the long-term.
Ares Management reports Q2 realized EPS 64c, consensus 51c » 06:0807/2907/29/21
"Our uniquely positioned and differentiated business model delivered record results across nearly every financial metric for the second quarter, including quarterly records for fee related earnings, capital raising and fund appreciation," said CEO Michael Arougheti. "During Q2, we raised over $20B of capital which supported strong growth in our AUM to a record $248B, up 56% on a year-over-year basis". "Q2 is not only our 17th consecutive quarter of sequential quarter fee related earnings growth, but also reflects exceptional financial results with fee related earnings and realized income increasing 52% and 80%, respectively, year-over-year," said COO and CFO Michael McFerran. "Q2 also demonstrated the continued benefits of our operational scale with our fee related earnings margin expanding from 35% to approximately 39% over the past four quarters."
Ares Capital prices public offering » 06:0307/2907/29/21
Ares Capital (ARCC) has…
Ares Capital (ARCC) has priced a public offering of 12,500,000 shares of its common stock. Ares Capital has granted the underwriters an option to purchase up to an additional 1,875,000 shares of common stock. The offering is expected to close on August 2. The offering of the shares is being made under Ares Capital's shelf registration statement filed with the SEC on June 3. On July 28, the official close price of Ares Capital's common stock on NASDAQ was $20.38 per share. Ares Capital expects to use the net proceeds of this offering to repay certain outstanding indebtedness under its credit facilities. Ares Capital may reborrow under its credit facilities for general corporate purposes, which include investing in portfolio companies in accordance with its investment objective.