Ares Management Corp
F:0QN
Ares Management Corp
Ares Management Corporation stands as a beacon of expertise in the intricate realm of alternative asset management, a field that demands astute financial foresight and strategic acumen. Founded in 1997, the company has meticulously crafted its reputation through a distinctive approach that integrates credit, private equity, real estate, and infrastructure, bridging infrastructure with innovative financial products. This Los Angeles-based firm employs a wealth of financial talent and relies on its diversified strategies to navigate and thrive in the volatile terrains of today's global markets. Understanding how to balance risk and return, Ares caters to a broad clientele that includes institutional investors, private clients, and a cadre of other stakeholders looking for returns that surpass the conventional boundaries of mainstream financial instruments.
The lifeblood of Ares Management's operations lies in its ability to generate substantial revenue by leveraging distinct investment strategies across its various platforms. The firm earns management fees based on the assets it oversees, ensuring a steady stream of income. What sets Ares apart is its emphasis on performance fees, which are secured when its investment strategies yield returns exceeding predefined benchmarks. This model aligns the company's incentives with those of its clients, creating a shared goal of maximizing returns. Ares' tactical forays into diverse asset types provide robust flexibility, enabling it to pivot and adapt swiftly to market changes, ensuring it remains a formidable force amidst the ever-shifting tides of global finance. This sophisticated amalgamation of strategy and execution underscores the very foundation upon which Ares stands, weaving a narrative of careful stewardship and innovative triumph in the field of alternative investments.
Ares Management Corporation stands as a beacon of expertise in the intricate realm of alternative asset management, a field that demands astute financial foresight and strategic acumen. Founded in 1997, the company has meticulously crafted its reputation through a distinctive approach that integrates credit, private equity, real estate, and infrastructure, bridging infrastructure with innovative financial products. This Los Angeles-based firm employs a wealth of financial talent and relies on its diversified strategies to navigate and thrive in the volatile terrains of today's global markets. Understanding how to balance risk and return, Ares caters to a broad clientele that includes institutional investors, private clients, and a cadre of other stakeholders looking for returns that surpass the conventional boundaries of mainstream financial instruments.
The lifeblood of Ares Management's operations lies in its ability to generate substantial revenue by leveraging distinct investment strategies across its various platforms. The firm earns management fees based on the assets it oversees, ensuring a steady stream of income. What sets Ares apart is its emphasis on performance fees, which are secured when its investment strategies yield returns exceeding predefined benchmarks. This model aligns the company's incentives with those of its clients, creating a shared goal of maximizing returns. Ares' tactical forays into diverse asset types provide robust flexibility, enabling it to pivot and adapt swiftly to market changes, ensuring it remains a formidable force amidst the ever-shifting tides of global finance. This sophisticated amalgamation of strategy and execution underscores the very foundation upon which Ares stands, weaving a narrative of careful stewardship and innovative triumph in the field of alternative investments.
Record Year: Ares achieved record fundraising, deployment, AUM, and earnings in 2025, with AUM topping $622 billion and fundraising reaching $113 billion.
Dividend Hike: The first quarter 2026 dividend was increased by 20% to $1.35 per share, reflecting strong realized income growth.
Fee Growth: Management fees, fee-related earnings, and after-tax realized income all grew over 20% year-over-year, with fee-related earnings up 33% in Q4.
Strong Fund Performance: Double-digit returns were reported across key strategies including direct lending, real estate, infrastructure, and private equity.
Wealth & Insurance Momentum: Wealth AUM surged 69% to $66 billion, and insurance-related AUM rose 20% to $86 billion, with robust flows from both channels.
Strategic Expansion: The GCP acquisition boosted real estate capabilities, and over 25 AI projects were launched to enhance efficiency and support future margin growth.
Positive 2026 Outlook: Management expects 2026 fundraising to at least match 2025’s record, with optimism for continued AUM and earnings growth.
Software Credit Exposure: Software makes up 6% of AUM and 9% of private credit AUM, with low loss rates and little perceived risk from AI disruption.