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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