Ares Management AUM Tops $600B on Fundraising Strength

Key Financial Milestones

Ares Management announced its assets under management (AUM) surpassed the $600 billion mark, reaching $622.5 billion in the fourth quarter. This growth was fueled by robust fundraising, which brought in $35.9 billion in gross new capital during the period.

The firm demonstrated strong performance, with quarterly after-tax realized income rising to $1.45 per share, compared to $1.23 per share in the same quarter of the previous year. The company has set a long-term goal to exceed $750 billion in assets by 2028.

Private Credit Market Landscape

Despite mounting concerns over potential cracks in the private credit market, institutional demand has remained resilient. Investors continue to seek higher returns and diversification away from public markets. Ares deployed $45.8 billion of capital in Q4, with a focus on U.S. and European direct lending, real estate, and alternative credit.

The company also addressed investor concerns regarding sector exposure, clarifying that its investments in the software industry represent only 6% of its total assets.

Strategic Outlook and Impact

Ares Management's strong fundraising momentum signals continued investor confidence. CEO Michael Arougheti stated the firm expects another strong year of fundraising that could match or exceed record levels. The firm's recent inclusion in the S&P 500 index further solidifies its position as a leading global alternative asset manager.

Summary

Ares Management shows significant growth by crossing the $600 billion AUM threshold, supported by strong capital inflows. The firm's outlook remains positive as it navigates the private credit landscape and works toward its ambitious 2028 asset target. Continued fundraising success will be a key performance indicator to watch.

FAQ

Q: What was Ares Management's total AUM in the fourth quarter?
A: Ares Management's assets under management reached $622.5 billion in the fourth quarter.

Q: What is Ares Management's future AUM target?
A: The firm has set a target to surpass $750 billion in assets by 2028.

Source: Reuters via Investing.com