UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) April 26, 2016
ARES MANAGEMENT, L.P.
(Exact Name of Registrant as Specified in Charter)
Delaware | | 001-36429 | | 80-0962035 |
(State or Other Jurisdiction
of Incorporation) | | (Commission
File Number) | | (IRS Employer
Identification No.) |
2000 Avenue of the Stars, 12th Floor, Los Angeles, CA | | 90067 |
(Address of Principal Executive Offices) | | (Zip Code) |
Registrant’s telephone number, including area code (310) 201-4100
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
On February 16, 2016, the registrant announced that it would be combining its Tradable Credit Group and Direct Lending Group to form a single segment called the Ares Credit Group. The registrant will begin reporting the new Credit Group as an operating segment beginning with the quarter ended March 31, 2016, which results will be released on May 10, 2016.
For comparability purposes and to help our investors understand our results, the results previously reported for the Tradable Credit and Direct Lending Groups are presented below on a combined basis for the last eight quarters and twelve months ended December 31, 2015 and 2014. No changes have been made to the Company’s other operating segments, to its Operations Management Group or to its total stand alone results.
Ares Credit Group by Quarter
For the Years Ended December 31, 2015 and 2014
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Year Ended | | | For the Three Months Ended | | For the Year Ended | |
| | 3/31/2015 | | 6/30/2015 | | 9/30/2015 | | 12/31/2015 | | 12/31/2015 | | | 3/31/2014 | | 6/30/2014 | | 9/30/2014 | | 12/31/2014 | | 12/31/2014 | |
| | | | | | | | | | | | | | | | | | | | | | |
Management fees | | $ | 108,348 | | $ | 108,179 | | $ | 110,589 | | $ | 112,607 | | $ | 439,723 | | | $ | 99,897 | | $ | 100,877 | | $ | 105,991 | | $ | 112,908 | | $ | 419,673 | |
Administrative fees and other income | | 98 | | 101 | | 103 | | 112 | | 414 | | | 107 | | 309 | | 111 | | 665 | | 1,192 | |
Compensation and benefits | | (42,565 | ) | (43,036 | ) | (41,699 | ) | (45,562 | ) | (172,862 | ) | | (43,017 | ) | (43,206 | ) | (45,628 | ) | (50,701 | ) | (182,552 | ) |
General, administrative and other expenses | | (7,125 | ) | (6,825 | ) | (7,868 | ) | (6,992 | ) | (28,810 | ) | | (5,610 | ) | (6,142 | ) | (6,425 | ) | (6,928 | ) | (25,105 | ) |
Fee related earnings | | 58,756 | | 58,419 | | 61,125 | | 60,165 | | 238,465 | | | 51,377 | | 51,838 | | 54,049 | | 55,944 | | 213,208 | |
| | | | | | | | | | | | | | | | | | | | | | |
Performance fees - realized | | 35,214 | | 40,081 | | 4,588 | | 10,549 | | 90,432 | | | 10,252 | | 24,283 | | 31,599 | | 55,729 | | 121,863 | |
Performance fees - unrealized | | (19,201 | ) | (26,175 | ) | (7,247 | ) | (30,390 | ) | (83,013 | ) | | 15,801 | | (8,018 | ) | (30,378 | ) | (37,783 | ) | (60,378 | ) |
Performance fee compensation - realized | | (21,004 | ) | (22,618 | ) | (276 | ) | (1,867 | ) | (45,765 | ) | | (5,535 | ) | (15,986 | ) | (6,983 | ) | (33,875 | ) | (62,379 | ) |
Performance fee compensation - unrealized | | 14,531 | | 16,153 | | 1,184 | | 11,794 | | 43,662 | | | (7,806 | ) | 1,105 | | 5,127 | | 23,851 | | 22,277 | |
Net performance fees | | 9,540 | | 7,441 | | (1,751 | ) | (9,914 | ) | 5,316 | | | 12,712 | | 1,384 | | (635 | ) | 7,922 | | 21,383 | |
| | | | | | | | | | | | | | | | | | | | | | |
Investment income (loss) - realized | | 8,618 | | 5,903 | | 654 | | 750 | | 15,925 | | | 17,421 | | 5,634 | | 7,298 | | 15,181 | | 45,534 | |
Investment income (loss) - unrealized | | (3,369 | ) | (6,533 | ) | (13,636 | ) | (11,798 | ) | (35,336 | ) | | (11,342 | ) | (2,317 | ) | 663 | | (10,328 | ) | (23,324 | ) |
Interest and other investment income (loss) | | (1,526 | ) | 3,933 | | 4,678 | | 3,347 | | 10,432 | | | 349 | | 4,472 | | 2,397 | | 3,474 | | 10,692 | |
Interest expense | | (1,734 | ) | (1,734 | ) | (3,097 | ) | (510 | ) | (7,075 | ) | | (691 | ) | (874 | ) | (668 | ) | (1,322 | ) | (3,555 | ) |
Net investment income (loss) | | 1,989 | | 1,569 | | (11,401 | ) | (8,211 | ) | (16,054 | ) | | 5,737 | | 6,915 | | 9,690 | | 7,005 | | 29,347 | |
Performance related earnings (loss) | | $ | 11,529 | | $ | 9,010 | | $ | (13,152 | ) | $ | (18,125 | ) | $ | (10,738 | ) | | $ | 18,449 | | $ | 8,299 | | $ | 9,055 | | $ | 14,927 | | $ | 50,730 | |
Economic net income | | $ | 70,285 | | $ | 67,429 | | $ | 47,973 | | $ | 42,040 | | $ | 227,727 | | | $ | 69,826 | | $ | 60,137 | | $ | 63,104 | | $ | 70,871 | | $ | 263,938 | |
Distributable earnings | | $ | 75,707 | | $ | 81,605 | | $ | 63,469 | | $ | 70,746 | | $ | 291,527 | | | $ | 71,862 | | $ | 67,057 | | $ | 84,473 | | $ | 93,597 | | $ | 316,989 | |
The information disclosed under this Item 7.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | ARES MANAGEMENT, L.P. |
| | | By: Ares Management GP LLC, its general partner |
Date: April 26, 2016 | | | |
| | | |
| | By: | /s/ Michael R. McFerran |
| | Name: | Michael R. McFerran |
| | Title: | Chief Financial Officer |
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