Ares Management Corporation (NYSE:ARES) Q3 2023 Earnings Call Transcript

But not a big build in order to capture the full market opportunity. So again, it’s going to be about just continuing to form capital, drive partnerships with other market participants and the banks. Places that we’re spending a lot of time on right now, as we’ve talked about are bank asset portfolios and lender finance, including NAV lending. NAV lending is a $100 billion market opportunity in my estimation, and we’re uniquely positioned to execute. We are working on a number of what I would call rescue loans and structured equity type investments into the financial services market for good platforms with bad balance sheets. And so I’d expect that you’ll see more of that. Eventually, I think the consumer part of the business will turn on. As I said earlier, there’s about $2 trillion of consumer loans sitting on bank balance sheets that we think are going to need some form of resolution, which is a pretty big addressable market for us.

And Craig had asked if there are things that we avoid. I think generally, the team has done a good job saying that there are certain things that we categorically avoid like patent litigation, for example, or viaticales. But at the end of the day, the whole reason for this platform to exist is to be able to move around with a really good relative value lens between the different parts of the alternative credit landscape in the different geographies. So we’re pretty excited about what lies ahead for that team. Okay. So thanks, Carl, for pulling us back online. And sorry, Craig, that we didn’t get to you the first time around. I didn’t have anything to say other than, again, to thank everybody for their time today and continued support. We look forward to seeing everybody next quarter, and happy Halloween.

Operator: Ladies and gentlemen, this concludes our conference call for today. If you missed any part of today’s call, an archived replay of this conference call will be available through November 28, 2023, by dialing (877) 660-6853 and for international callers by dialing (201) 612-7415. For all replays, please reference conference number 13740717. An archived replay will also be available on a webcast link located on the home page of the Investor Resources section of our website.