Ares Management Earnings Call Transcripts
Fiscal Year 2026
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Growth is driven by a blend of organic expansion and strategic acquisitions, with a focus on autonomy and customer-centric solutions. Strong information advantages, AI-driven transformation, and a diversified approach underpin resilience. Culture, trust, and philanthropy are core to leadership.
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Management expects a robust deal environment in 2026, driven by strong transaction pipelines, a favorable macro backdrop, and AI-driven opportunities. Strategic focus is on digital infrastructure, real estate integration, and margin improvement, with reaffirmed growth targets and expanding wealth distribution.
Fiscal Year 2025
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A record year with AUM up 29% to $622B, fundraising at $113B, and strong growth across credit, real estate, and secondaries. Management fees, FRE, and realized income all rose over 20% year-over-year, with a 20% dividend increase and robust outlook for 2026.
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Private credit remains robust with record fundraising and broad-based deployment across asset classes. Wealth channel and global expansion are driving growth, while strategic investments in digital infrastructure and secondaries position the firm for continued margin expansion and capital redeployment.
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Alternative asset management has evolved into diversified, capital-light, fee-driven models, with scale and disciplined credit standards driving outperformance. Volatility is seen as an opportunity, and growth is expected in asset-based lending and digital infrastructure. Industry leadership is likely to remain stable.
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Record fundraising and AUM growth drove double-digit increases in management fees, FRE, and realized income. Broad-based strength across credit, infrastructure, real estate, and wealth channels, with robust deployment and strong performance metrics, positions the firm for continued momentum into 2026.
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Economic conditions remain stable with strong credit quality and robust deployment trends. Direct lending and private credit continue to grow, supported by scale and global reach, while asset-based finance and secondaries are key growth areas. Strategic acquisitions and vertical integration in real assets enhance fee streams and market presence.
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Second quarter saw record fundraising, robust AUM growth, and strong segment performance across private credit, real assets, and wealth channels. Integration of GCP International and expansion in Europe and Asia are fueling future growth, with FRE margins stable and a 20% dividend increase.
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Portfolio companies showed resilience amid volatility, with optimism for increased activity in late 2024. Capital deployment is focused on secondaries, alternative credit, and real estate debt, while technology and AI are driving operational efficiency and new growth avenues.
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Inflation and rates are expected to remain elevated, but portfolio fundamentals are strong and resilient. Direct lending and private credit continue to outperform, with stable deployment and low loss rates. Expansion in asset-based finance, infrastructure, secondaries, and retail channels supports growth, while five-year earnings guidance remains intact.
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Record AUM and fee growth were achieved, driven by strong fundraising, GCP acquisition, and robust performance across credit, real estate, and secondaries. Despite market volatility, portfolios remain defensively positioned, with ample dry powder and positive outlook for 2025.
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Record fundraising and deployment were achieved, with growth driven by product innovation, global expansion, and a major acquisition. Wealth and insurance channels are expanding, while the firm maintains strong financial performance and readiness for regulatory changes in retirement.
Fiscal Year 2024
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Record AUM, fundraising, and realized income were achieved in 2024, with strong growth across direct lending, real estate, and wealth channels. The outlook for 2025 remains robust, supported by a record dry powder, new executive appointments, and the pending GCP International acquisition.
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The discussion outlined ambitious five-year growth targets, with a focus on diversified fundraising, core business execution, and integrating the GCP acquisition. Private credit and real estate are set for growth, supported by strong market fundamentals and expanding global reach. Wealth management and retirement channels are key growth areas, with new products and broader distribution planned.
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Q3 2024 saw double-digit growth in management fees, FRE, and realized income, with record fundraising and deployment. Strategic acquisitions and new product launches expanded global reach, while strong performance in private credit and real assets positions for continued growth.
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The acquisition of GCP International expands capabilities in industrial real estate, data centers, and self-storage across key global markets, with a $3.7 billion upfront consideration and up to $1.5 billion in earn-outs. The deal is expected to be accretive to FRE and realized income, with significant long-term growth driven by data centers and Japanese perpetual capital.
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Credit quality and deployment remain strong, with robust fundraising and a positive outlook for private credit. Partnerships with banks and expansion into alternative credit, infrastructure, and global markets are key growth drivers. Margin expansion is expected as new investments mature.
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Q2 delivered record fundraising, robust deployment, and double-digit growth in AUM and earnings. Credit and real estate strategies outperformed, with strong investor demand and a positive outlook for continued activity and margin expansion.
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Portfolio fundamentals remain strong with low delinquencies and robust EBITDA growth, supported by a focus on non-cyclical industries. Optimism is rising in capital markets, with increased refinancing and sponsor activity, while new products and AI integration drive innovation and efficiency.
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Portfolio companies are showing strong growth and resilience, with expanding opportunities in direct lending, alternative credit, and infrastructure. Strategic partnerships with banks and a focus on innovation, including AI integration, support ambitious growth and margin targets.
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The firm is targeting significant AUM growth through global expansion, product innovation, and a collaborative culture, with a focus on private credit, insurance, and retail platforms. Strong fundamentals support direct lending, while retail and alternative credit offer major growth opportunities. Margin expansion will follow quality-driven growth.