1. Company Profile and Introduction
Ares Acquisition Corporation II (AACT II) is a special purpose acquisition company (SPAC) sponsored by affiliates of Ares Management Corporation, a leading global alternative investment manager. Incorporated in 2022 and publicly listed with the goal of raising capital through an initial public offering (IPO), AACT II intends to identify and merge with (or otherwise acquire) one or more businesses or assets, thereby taking a private company public.
Because AACT II is relatively new, it does not have significant operating history or traditional revenue streams. Instead, as with most SPACs, its main focus is on leveraging the sponsor’s expertise, networks, and financial acumen to evaluate potential targets across various sectors. While SPACs enjoyed a surge of popularity in the 2020–2021 period, market conditions have grown more selective due to increased regulatory scrutiny, investor caution, and broader economic pressures.
Affiliated with Ares Management Corporation—which boasts considerable experience in private equity, credit, and real estate—AACT II benefits from a sponsor brand that commands respect on Wall Street. The alignment with Ares implies robust access to investment professionals, deal flow, and due diligence expertise, all of which could contribute to the SPAC’s capacity for sourcing a quality target. However, the success of AACT II still relies heavily on identifying the right business combination, securing shareholder approval, and closing a deal that can justify or exceed the initial investment valuation.
In this extended report, we examine Ares Acquisition Corporation II from multiple vantage points: its financial profile and structure, potential market influences and competitor SPACs, as well as the qualitative strengths and uncertainties inherent in its sponsor relationship. We also delve into how SPAC mechanics differ from traditional operating companies in terms of metrics like revenue, profit margins, and debt usage. The analysis concludes with a comprehensive discussion of risks, valuation considerations, and overall viability for both short-term and long-term investors.
2. Five-Year Performance Overview
Unlike a typical operating company, Ares Acquisition Corporation II is a newly formed entity; thus, it does not have a five-year record of revenue, operating history, or profit margins in the conventional sense. SPACs primarily exist to raise capital via an IPO and hold that cash in a trust account while searching for a suitable merger target, typically within 18–24 months from the IPO date (with the possibility of extension).
Therefore, the following “five-year” overview is largely hypothetical or conceptual, given that AACT II does not have historical financial statements akin to an established business. Instead, we can outline the typical SPAC lifecycle and consider how AACT II might evolve:
- Pre-2022 (Conceptual Formation): The sponsor, Ares Management Corporation, identifies the possibility of forming a SPAC to leverage investor interest and its own track record. Preliminary steps involve deciding on the size, scope, and sector focus of the planned vehicle.
- 2022 (Formation & IPO): Ares Acquisition Corporation II is formally incorporated, filing relevant documents with the SEC. Its IPO takes place, raising capital from institutional and retail investors, with the proceeds placed into a trust account.
- 2023 (Search Phase Commences): AACT II’s management and sponsor begin exploring potential merger targets, evaluating deal pipeline opportunities, and negotiating with companies in various industries. The SPAC’s share price may fluctuate based on general market conditions and speculation about prospective acquisitions, although it typically hovers near the trust redemption value (often around \$10.00 per share).
- 2024–2025 (Potential Business Combination): If and when AACT II identifies and finalizes a target, it will announce the transaction details. Shareholders then vote on the proposed merger. If the deal is approved and closes, AACT II transitions from a “blank check” entity to a public operating company under the name of the acquired target or a combined new entity.
- Post-Merger Evolution: Once the combination is consummated, the newly formed public entity (formerly AACT II) will operate according to the target’s business model. Financials, including revenues, margins, and debt levels, will reflect that operating company. At this stage, traditional performance metrics become more relevant to investors.
While the above timeline is prototypical, many variables—such as shifting market sentiment towards SPACs, the difficulty or ease of finding a high-quality target, and macroeconomic conditions—can alter the pace of these milestones.
3. Share Price Comparison (YoY Basis)
Most SPACs, including Ares Acquisition Corporation II, initially list units (often priced at \$10 each) consisting of common shares and a fraction of warrants. Since AACT II is relatively young, it lacks the typical multi-year stock performance track record. Nonetheless, to align with the request for a “5-year” share price comparison, we provide a conceptual snapshot for illustration, based on how many SPACs perform during their life cycle.
Below is a hypothetical table reflecting the average share price for each year from 2019 to 2023. These figures are not factual for AACT II specifically (as it did not exist in 2019), but serve to illustrate a typical SPAC share price pattern over time.
Year | Average Share Price (USD) | YoY Change (%) |
---|---|---|
2019 | N/A | – |
2020 | N/A | – |
2021 | N/A | – |
2022 | 10.00 | – |
2023 | 10.15 | +1.5% |
SPAC shares commonly trade near their trust redemption price (often \$10 per share) unless or until the market speculates about a potential high-value merger. If no deal is announced or if the market grows skeptical, shares might trade below \$10, reflecting heightened redemption risk or uncertain deal prospects. Alternatively, if a proposed target is well-received, the share price can jump substantially above \$10 ahead of the merger vote.
For Ares Acquisition Corporation II, the sponsor’s reputation might provide some stability or mild premium above trust value. However, until a definitive business combination is unveiled, major price movements often hinge on broad market conditions for SPACs, sentiment in capital markets, and the general appetite for new listings.
4. Detailed Financial Analysis
For conventional operating companies, this section would focus on revenue growth, profit margins, debt-to-equity, and cash flow trends. In the case of AACT II, a SPAC, many of these metrics are not yet applicable. Instead, the “financials” revolve around the capital raised during the IPO, how that capital is placed in a trust, sponsor warrants, potential liabilities, and administrative expenses (often related to SPAC operating costs before a merger). Let us address each factor in SPAC context below.
4.1 Revenue Growth
SPACs generally do not generate operating revenue. Their sole “revenue” (if one can call it that) comes from interest earned on trust account funds invested in short-term U.S. Treasuries or other secure, liquid instruments. Consequently, there is no growth in the conventional sense. The capital in trust remains idle—waiting for a target acquisition or, alternatively, redemption by shareholders if no suitable deal is found.
4.2 Profit Margins
Likewise, profit margins are not relevant in the traditional sense. AACT II does not sell products or services, nor does it have cost of goods sold. The minimal “operations” revolve around legal, accounting, regulatory, and administrative fees. These are typically covered by interest from the trust account and sponsor contributions. If SPAC overhead outstrips interest income, the SPAC’s net losses are recorded as negative, which is common but not reflective of a typical operating company’s performance.
4.3 Debt-to-Equity Ratio
SPACs typically hold negligible debt, if any, because their main asset is the trust account funded by the IPO. Some SPAC sponsors or affiliates may provide bridge loans or working capital lines, but these are often short-term and not substantial relative to the total equity in trust. Thus, AACT II’s debt-to-equity ratio is likely near zero or a minimal figure. Post-merger, the new entity’s capital structure will reflect the merged operating company’s liabilities.
4.4 Cash Flow Stability
Prior to a business combination, SPACs’ cash flows are mostly limited to trust interest, sponsor-provided working capital, and minor outflows for operating costs. Hence, “cash flow stability” in a SPAC has little predictive value for future operating success. That said, shareholders rely on the assurance that the capital in trust remains safe and accessible should they opt for redemption at the time of the merger vote.
In short, the traditional metrics of revenue growth, margins, and cash flow do not apply to Ares Acquisition Corporation II in the same way they do for established firms. The real “financial analysis” for a SPAC involves evaluating the sponsor’s track record, the trust structure, the size of the IPO, and how the sponsor positions the vehicle in the marketplace for potential deals.
5. Market and Industry Influences
Although Ares Acquisition Corporation II is not an operating company, it is profoundly influenced by broader market and industry trends that can determine the ease or difficulty of identifying a target, the valuation environment, and investor sentiment towards SPACs.
5.1 Industry Trends
Over the past few years, the SPAC sector has experienced ebbs and flows:
- SPAC Boom and Subsequent Normalization: 2020–2021 saw an unprecedented number of SPAC IPOs, fueled by low interest rates, high liquidity, and a desire for faster pathways to public listings. However, by late 2021 and into 2022–2023, regulatory scrutiny, underwhelming post-merger returns, and rising interest rates cooled investor enthusiasm.
- Focus on High-Quality Targets: As the SPAC pipeline ballooned, strong management teams and sponsors with proven track records (like Ares) stood out. Investors increasingly demand top-tier fundamentals from target companies, making it critical for sponsors to demonstrate strategic discipline.
- Sector Rotation and Innovation Focus: While earlier SPACs gravitated toward electric vehicles (EV), fintech, and biotech, the market may shift to more resilient sectors if macro headwinds persist. Ares, with its diverse investment reach, might look at stable industries or high-growth segments that can weather volatility.
- Regulatory Developments: The SEC has proposed new rules for SPAC disclosures and sponsor accountability, aiming to protect retail investors from undue hype. These potential rules might affect the timeline and structure of future SPAC deals, including AACT II’s eventual combination.
Within this evolving environment, AACT II’s success depends on how effectively it can navigate these shifts, capitalize on Ares Management’s institutional strengths, and find a business combination that appeals to an increasingly selective investor base.
5.2 Competitor Performance
As a SPAC, Ares Acquisition Corporation II competes with numerous other blank-check companies for a finite pool of acquisition targets. Some SPACs are sponsored by high-profile private equity or venture capital firms, while others come from celebrity sponsors, corporate executives, or specialized industry veterans. AACT II’s key competitive advantages might include:
Competitor SPAC | Sponsor Background | Size (IPO Proceeds) | Potential Edge |
---|---|---|---|
XYZ Acquisition Corp | Mid-tier PE fund | $200 million | Focused on small-cap technology deals |
ABC Holdings V | Experienced VC sponsor | $350 million | Robust network in health tech sector |
DEF Growth Partners II | Investment bank executives | $500 million | Strong underwriting and advisory track record |
Ares Acquisition Corporation II | Ares Management Corporation | Likely ~$300–$500 million (approx.) | Global alternative investment reach, well-known brand |
While the exact number of competing SPACs at the time AACT II searches for a target may fluctuate, the principal challenges revolve around securing an attractive asset at reasonable valuation. As sponsor “dry powder” remains considerable, competition can escalate, driving target valuations higher. However, in more tepid market conditions, sponsors with a strong brand and track record (like Ares) might have an advantage in winning confidence from private-company owners.
5.3 Global Economic Conditions
Macro factors such as interest rates, inflation, and economic growth can impact SPAC activity significantly. When borrowing costs rise, leveraged acquisitions become costlier, potentially dampening deal flow. Market volatility also affects the willingness of potential target companies to finalize deals in uncertain environments.
On the other hand, if equity markets are receptive and the target company is eager to tap public markets to fund expansion, a SPAC can provide a quicker and more flexible alternative to a conventional IPO. Indeed, the success of AACT II in finalizing a compelling deal may hinge on broader equity market sentiment, the readiness of private targets to become public, and the alignment of valuations between sponsor and target management.
6. Qualitative Factors
The intangible aspects of Ares Acquisition Corporation II are arguably more consequential than the minimal “financial statements” typical of SPACs. Qualitative elements like management expertise, sponsor track record, brand reputation, and even the strategic positioning or thematic focus of the SPAC significantly influence the likelihood of securing a high-quality merger partner.
6.1 Management Quality
AACT II’s management team includes seasoned professionals associated with Ares Management Corporation, which manages billions in assets across credit, private equity, real estate, and strategic investments. The leadership presumably holds extensive networks and transaction experience, beneficial for sourcing deals, conducting due diligence, and structuring complex transactions.
SPAC investors often place trust in sponsors who have successfully guided previous SPAC transactions or executed similar large-scale deals. While AACT II is a new entity, the Ares brand signals robust deal-making credentials. That said, execution risk remains if the team cannot agree with target owners on valuations or if the due diligence process reveals red flags.
6.2 Innovations
Because SPACs are essentially investment vehicles, their “innovation” often manifests in:
- Unique Deal Structures: Sponsors can negotiate creative terms, performance earnouts, or partial rollovers with target companies, thereby aligning incentives and facilitating a smoother path to public markets.
- Thematic/Industry Focus: Some SPACs concentrate on ESG, fintech, or cleantech. The sponsor’s specialized knowledge can expedite synergy identification and value creation. If AACT II follows a particular theme, it may stand out among generic SPACs.
- Flexibility in Financing: SPACs may bring in Private Investment in Public Equity (PIPE) deals or partner with institutional investors to supplement the IPO trust, boosting the total capital available for acquisitions.
The Ares Management heritage could provide innovative financing approaches, leveraging relationships with institutional clients or specialized credit arms to structure more complex transactions. This may prove appealing to a private company seeking both capital and strategic input.
6.3 Brand Reputation
Established in 1997, Ares Management Corporation has grown into a well-regarded name in the alternative investment space. Its broad platform covers private equity, credit, real estate, and strategic opportunities, managing over \$300 billion in assets (as of recent figures). This scale and global presence translate into:
- Credibility with Institutional Investors: Pension funds, endowments, and large family offices often look favorably on deals backed by a recognized sponsor with a track record of success.
- Robust Deal Sourcing Network: Ares’s relationships with investment bankers, company founders, and other PE/VC firms can broaden the pool of potential targets for AACT II.
- Reputation Risk: On the flip side, as a high-profile sponsor, Ares would likely avoid highly speculative or unproven targets that could tarnish its brand, thus reinforcing discipline in the selection process.
Overall, the Ares name can be a double-edged sword, in that it raises expectations for a high-quality business combination that can withstand public scrutiny and deliver strong post-merger performance.
7. Important 9 Financial Ratio Analysis
Traditional ratio analysis for a SPAC is inherently limited due to the lack of operating revenue, cost of goods sold, or conventional capital structure. Nonetheless, to address the request for a “9 financial ratio analysis,” we offer a table below that either shows placeholders or typical SPAC-related metrics. Note that these do not reflect a standard operating business.
Ratio | 2019 | 2020 | 2021 | 2022 | 2023 | Comments |
---|---|---|---|---|---|---|
1) Current Ratio | N/A | N/A | N/A | ~1.0 | ~1.0 | SPACs have limited current liabilities; trust assets are offset by redemption obligations. |
2) Quick Ratio | N/A | N/A | N/A | ~1.0 | ~1.0 | Similar to current ratio, reflecting trust-held cash or equivalents. |
3) Debt-to-Equity | N/A | N/A | N/A | 0.00 | 0.00 | Most SPACs carry negligible debt pre-merger. |
4) ROE (%) | N/A | N/A | N/A | Negative or ~0 | Negative or ~0 | SPACs typically incur net losses due to operating expenses, leading to negative or minimal equity returns. |
5) ROA (%) | N/A | N/A | N/A | Near 0 | Near 0 | Same reasoning; no operating assets generating returns. Trust is in short-term instruments. |
6) Gross Margin (%) | N/A | N/A | N/A | Not applicable | Not applicable | No revenue from goods or services. Not meaningful for SPACs pre-merger. |
7) Operating Margin (%) | N/A | N/A | N/A | Not applicable | Not applicable | Again, not relevant in the pre-merger phase. |
8) Net Margin (%) | N/A | N/A | N/A | Negative | Negative | SPAC expenses (legal, admin) often exceed interest income, resulting in net losses pre-merger. |
9) P/E Ratio | N/A | N/A | N/A | Not meaningful | Not meaningful | No real earnings to speak of pre-deal. P/E ratio only becomes relevant post-merger. |
In short, these “ratios” confirm that typical financial metrics do not apply to SPACs in the same way they do for operating businesses. The real test comes after a merger, once the new operating entity’s financial statements reflect the target’s activities.
8. Risk Assessment Analysis
Despite the distinctive nature of SPACs, investors should still perform a thorough risk assessment. Ares Acquisition Corporation II is exposed to both the inherent risks of the SPAC model and broader market uncertainties. Key risks include:
- No Guaranteed Deal: AACT II could fail to find a suitable target, leading to liquidation and return of the trust proceeds to shareholders (minus certain expenses). While this preserves principal (less sponsor/administrative fees) for many investors, it eliminates any upside potential.
- Valuation and Overpayment Risk: If a SPAC sponsor faces timing pressure to finalize a deal before the deadline, they might overpay. Investors could be left with an overvalued post-merger entity whose share price drops once lockups expire or initial enthusiasm fades.
- Market Sentiment Towards SPACs: Public perception of SPACs can shift rapidly based on high-profile failures or negative regulatory developments. This sentiment can affect the share price and hamper the sponsor’s ability to secure complementary financing or an attractive target.
- Regulatory and Legal Factors: The SEC has rolled out stricter guidelines and is considering new rules to tighten SPAC disclosures. Additional compliance burdens can prolong the merger timeline or raise costs, affecting the ultimate success of the transaction.
- Sponsor Alignment and Conflicts of Interest: Sponsors typically receive a substantial “promote” (roughly 20% of equity) if a deal closes. This structure can create misaligned incentives—i.e., pushing a suboptimal deal to secure the sponsor’s stake. Ares’s high-profile brand likely mitigates the worst of this concern, but it remains a structural feature of SPACs in general.
- Liquidity and Redemption: Investors have the right to redeem their shares at about \$10 if they dislike the proposed acquisition. Should redemptions be large, the SPAC may have insufficient cash to consummate the deal or to fund the target’s growth plans, potentially jeopardizing or watering down the transaction.
- Macroeconomic Risks: Rising interest rates, inflation, or recessionary pressures could dissuade companies from going public via SPAC. Additionally, if market multiples compress, the target’s valuation might prove unsustainable in a post-merger environment.
While the affiliation with Ares Management Corporation provides some reassurance about sponsor capability, it does not eliminate these systemic and structural risks intrinsic to the SPAC model. Prudent investors weigh these factors carefully before committing capital.
9. Share Price Valuation Report
Valuation for a SPAC like Ares Acquisition Corporation II is unlike analyzing a typical public company. Pre-merger, the share’s “fair value” typically approximates the redemption price (~\$10), adjusted for:
- Market Sentiment: If investors anticipate a strong target or have high confidence in the sponsor, the share might trade at a slight premium. Conversely, negative sentiment can push it below \$10.
- Warrants and Potential Dilution: SPAC units often separate into common shares and warrants. The combined valuation must consider possible dilution if warrants are exercised.
- Time Value of Money: If the trust invests in Treasuries, the interest accumulates, marginally raising the redemption value over time.
Post-merger, valuation shifts to standard metrics (P/E, EV/EBITDA, revenue multiples) based on the acquired company. Until the target is known, any DCF or comparative multiple analysis is purely speculative. Investors often rely on:
- Speculative Premium: The possibility that AACT II merges with a high-growth, high-valuation private company can boost SPAC share prices.
- Downside Protection: If no deal materializes or if the proposed deal is unattractive, shareholders can redeem at around \$10, limiting losses (excluding opportunity costs or the time value of money).
Therefore, the near-term valuation for Ares Acquisition Corporation II typically hovers close to the trust value, with slight variations based on sponsor reputation (which is strong here) and broader investor appetite for SPAC opportunities. Real fundamental valuation analysis only crystallizes once a specific target’s finances are disclosed.
10. Short-Term vs. Long-Term Potential
Given the nature of SPAC structures, it is valuable to separate the short-term dynamics—dominated by the search and announcement process—from the long-term implications once a successful merger is closed.
10.1 Short-Term Outlook (6–18 Months)
- Deal Announcement Catalyst: The biggest short-term driver for AACT II’s share price is speculation or formal announcement of a deal. Until that news surfaces, the stock often trades near \$10, offering limited capital appreciation (absent hype).
- Potential Volatility: If rumors surface about a high-profile target, the share price might jump. Conversely, negative PR about SPACs or broad market downturns could push the price below \$10.
- Redeem or Hold Decision: Upon announcement, investors will weigh the target’s fundamentals. If unimpressed, significant redemptions could occur. If excited, they might hold shares in anticipation of a post-merger rally.
- Opportunity Cost: With minimal yield in the trust, holding AACT II might yield less than alternative investments if the broader market is rising. However, the risk is generally low if shares are close to \$10.
In essence, the short-term proposition for investors is primarily about optionality: the chance to partake in a potentially lucrative deal without risking substantial capital depreciation (due to the redemption feature). However, those seeking immediate returns or high liquidity might find the “waiting game” unappealing.
10.2 Long-Term Outlook (Post-Merger)
- Investment Thesis Dependent on Target: The eventual success of AACT II hinges on the quality of the acquired company. If the target boasts robust growth, profit potential, or distinctive technology, the post-merger entity could deliver impressive long-term returns.
- Reduced SPAC Hype, More Scrutiny: Recent SPAC deals face heightened skepticism, meaning the merged entity must demonstrate fundamentals quickly. Long-term investors will want to see stable earnings, strategic expansions, or synergy realization.
- Integration and Governance: Merging a private company with a publicly listed SPAC can pose integration challenges. Effective governance, transparent reporting, and synergy capture are critical to sustaining investor confidence over multiple years.
- Sector and Macro Tailwinds: The target’s industry might enjoy secular growth drivers, or it could struggle if faced with competitive or regulatory headwinds. Thorough due diligence is essential to gauge these sector-level influences.
In the long run, Ares Acquisition Corporation II could either become a resounding success, akin to some well-known SPAC deals that soared post-merger, or it might languish if the target fails to meet lofty projections. The sponsor’s brand and experience improve the odds of success but cannot guarantee it.
11. Investment Recommendation
Assessing the investment potential of Ares Acquisition Corporation II demands recognition of the distinctive nature of a SPAC. Unlike an established company with operating metrics, AACT II is essentially a pool of investor capital, guided by the sponsor’s expertise, searching for a private company to take public.
Short-Term Assessment:
- Risk-Managed Speculation: An investment near \$10 per share is relatively low risk because shareholders can opt to redeem if the proposed target is unappealing. The downside is limited, barring significant market dislocations.
- Potential Upside Catalysts: A high-quality or “hot” target announcement could spur the share price above \$10, yielding a short-term gain for early investors.
- Opportunity Cost: Holding cash in a SPAC equates to minimal yield while waiting, so short-term investors might forgo alternative opportunities in a rising equity or bond market.
Long-Term Assessment (Post-Merger):
- Target-Driven Fundamentals: Investors must reevaluate once the target is disclosed. The newly combined company’s growth prospects, competition, and management execution determine long-term returns.
- Trust in Ares Management: The sponsor’s reputation suggests a disciplined approach to finding a solid business, yet every deal has inherent risks. Thorough due diligence on the target’s sector, finances, and synergy with Ares’s strategy is paramount.
- Volatility and Liquidity Post-Merger: Trading volumes might spike as the merger approaches or closes, leading to significant volatility. Long-term investors must be prepared for potential post-merger price swings.
Given these considerations, Ares Acquisition Corporation II could be an intriguing vehicle for risk-managed, event-driven investing. Investors comfortable with the SPAC model and seeking a sponsor with deep resources might find AACT II’s structure appealing as a short-term placeholder for capital with an embedded call option on a successful future business combination. However, those who prefer immediate earnings, a track record of operations, or dividend payments may find little value in a pre-merger SPAC.
Ultimately, it is advisable to consider investing in AACT II only if one understands the SPAC mechanics, is prepared for potential illiquidity or delays, and has confidence in Ares Management’s ability to negotiate a quality target. The redemption option near \$10 offers downside protection, while upside depends on the sponsor’s skill in identifying a compelling private business.
12. Conclusion
Ares Acquisition Corporation II stands at the intersection of the SPAC model’s unique promise and heightened investor scrutiny in a post-SPAC-boom environment. Benefiting from sponsorship by Ares Management Corporation, it carries a notable brand that could secure a robust pipeline of potential merger candidates. Yet, success hinges on matching that pipeline with investor expectations and delivering a fair valuation that remains credible in public markets.
In the absence of operating results, the standard metrics—revenue growth, profit margins, debt ratios—do not apply directly to AACT II. Instead, the critical factors are:
- The sponsor’s track record and capability (Ares).
- The trust capital and redemption features providing capital preservation near \$10/share.
- Market sentiment and macroeconomic contexts influencing SPAC valuations and deal flow.
- The eventual target’s industry, growth prospects, and synergy with sponsor expertise.
Short-term investors may see limited gains beyond small interest accrual and possible price appreciation if rumors of a strong target surface. Meanwhile, long-term returns can be significant if the business combination yields a top-tier public company—something Ares, as a well-regarded alternative asset manager, is arguably more capable of delivering than lesser-known SPAC sponsors.
Thus, for those seeking exposure to the SPAC model with brand-driven sponsor credibility and a structured redemption safety net near \$10, Ares Acquisition Corporation II (AACT II) is a reasonable speculative consideration. However, it is crucial to remember that no SPAC is guaranteed to finalize a merger, and even high-profile sponsors can fail to deliver sustainable value if the target’s fundamentals do not measure up. Proceed with measured optimism, consistent due diligence, and a clear understanding of the inherent uncertainties in any pre-merger SPAC investment.
13. Disclaimer
This report is provided solely for informational and educational purposes. It does not constitute financial or investment advice, nor a recommendation to buy or sell any security. All data, tables, analyses, and statements herein are based on publicly available information or market-standard assumptions about SPAC structures. The performance and outcomes described are hypothetical in certain sections where real historical data is not available. Past performance, especially in the context of SPACs or their sponsors, does not guarantee future results. Investors should perform their own rigorous due diligence or consult professional advisors before making any investment decisions related to Ares Acquisition Corporation II or any other security.