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Piper Sandler set its price target for the investment manager at $150 on Thursday. This is slightly higher than the $149 average target across all Wall Street firms that follow the company. While the stock has fallen recently, analysts generally expect it to climb back toward these levels as the company continues to grow its fee-earning assets.
Source: Piper Sandler
Ares and the Public Sector Pension Investment Board have formed a joint venture to put up to 2.4 billion dollars into logistics real estate. This part of the property market focuses on the warehouses and shipping hubs that power online shopping and global trade.
This move is a clear example of how Ares grows its fee-paying assets by teaming up with massive institutional partners. For a long-term owner, this is exactly the kind of deal that builds the pool of assets Ares manages, which in turn generates the steady management fees that make the business predictable.
Source: Business Wire
The Ares Dynamic Credit Allocation Fund, a closed-end fund that invests in various types of corporate debt, declared its monthly payout of $0.1125 per share for September. These distributions are a routine part of how this specific fund operates, returning income from its loan and bond holdings to its shareholders. For Ares as a whole, the steady performance of these individual funds helps maintain the management fees that drive its overall profit.
Source: PRNewsWire
Aspida, the insurance and annuity business owned by Ares, has named Aaron Sarfatti as its new Chief Risk Officer. He will be responsible for managing the risks associated with the company's insurance products and investment portfolios. This follows the appointment of a new finance chief at Aspida earlier this month. While executive changes at subsidiaries are routine, keeping a steady hand on risk is important for an insurance business that relies on matching long-term payouts with steady investment returns.
Source: GlobeNewsWire
Ares Capital, the company's main division for lending to mid-sized businesses, is issuing 750 million dollars in unsecured notes due in 2033. These notes carry a 6.25 percent interest rate. The firm plans to use the cash to provide new loans to businesses and to pay off some of its own shorter-term debt.
This is a routine move for a company that acts like a bank for private companies. By locking in long-term borrowing at a fixed rate, Ares ensures it has the capital ready to lend out at higher rates to its own clients. For a long-term owner, this shows the company is successfully maintaining the pool of cash it needs to keep its lending engine running.
Source: PRNewsWire
Ares has missed its own profit targets in three of the last six quarters. This suggests management is setting aggressive goals that the business occasionally struggles to hit on time.
| Expectation | |
|---|---|
| EPS | $1.31 |
| Revenue | $1.25B |
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