Question · Q3 2025
Alex Blohstein asked about Ares Management's real estate and real assets franchise positioning, anticipating normalized LP appetite across institutional and wealth clients, and the potential for increased transaction volumes.
Answer
Mike Arougheti, Co-Founder, CEO, and Director, explained that Ares' global real estate business, now the third-largest institutional manager, benefits from scale, vertical integration, and concentration in high-conviction sectors like industrials and multifamily. He noted that declining rates are constructive for real estate transaction volumes, with Q3 deployment up 51% quarter-over-quarter and 78% year-over-year, indicating green shoots.