Ares Management Corporation (ARES) is a leading global alternative investment manager that provides investment solutions across multiple asset classes, including credit, private equity, real estate, and infrastructure. The company focuses on delivering attractive, risk-adjusted returns to its investors through market cycles. ARES operates globally, serving institutional and retail clients with a diverse range of investment strategies and products.
- Management Fees - Earned by managing assets across various investment strategies, this segment represents the core revenue driver for the company and reflects its expertise in asset management.
- Performance Income (Realized) - Generated from realized investment performance, this segment highlights the firm's ability to deliver strong returns on its investments.
- Fee-Related Performance Revenues - Derived from performance-based fees tied to specific investment outcomes, showcasing the firm's alignment with investor success.
- Other Fees - Includes administrative and transaction fees, contributing additional revenue streams to the company's operations.
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Given that your Fee-Related Performance Revenues (FRPR) growth may be modest in 2025 due to lower base interest rates and no expected FRPR from your real estate group until possibly 2026, how do you plan to sustain your FRE growth and margin expansion in the near term?
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With supplemental distribution expenses associated with your wealth management products increasing from $16.7 million in 2023 to $51.2 million in 2024, how confident are you that these expenses won't continue to pressure your FRE margins, and what steps are you taking to mitigate this?
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You mentioned that after the GCP International acquisition, there are few capabilities of consequence in the global alternative space that you don't already have; does this mean that your future growth might be limited without significant M&A opportunities, and how do you plan to drive growth organically in such a competitive environment?
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Considering the low gross-to-net deployment ratio in 2024 and the challenging M&A market, how realistic is your expectation that net deployment activity will significantly improve in 2025 to support your FRE growth, especially since you indicated slower deployment in certain periods?
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With intensifying competition in the wealth management sector and your aim to reach $100 billion in AUM across semiliquid products, what are the risks that competition could slow your fundraising momentum, and how do you plan to maintain your competitive edge in this space?
Research analysts who have asked questions during Ares Management earnings calls.
Kenneth Worthington
JPMorgan Chase & Co.
5 questions for ARES
Michael Cyprys
Morgan Stanley
5 questions for ARES
Kyle Voigt
Keefe, Bruyette & Woods
4 questions for ARES
William Katz
TD Cowen
4 questions for ARES
Alexander Blostein
Goldman Sachs
3 questions for ARES
Brian Bedell
Deutsche Bank
3 questions for ARES
Brian McKenna
Citizens JMP Securities
3 questions for ARES
Craig Siegenthaler
Bank of America
3 questions for ARES
Michael Brown
Wells Fargo Securities
3 questions for ARES
Patrick Davitt
Autonomous Research
3 questions for ARES
Steven Chubak
Wolfe Research
3 questions for ARES
Alex Blostein
Goldman Sachs
2 questions for ARES
Ben Budish
Barclays PLC
2 questions for ARES
Benjamin Budish
Barclays PLC
2 questions for ARES
Brennan Hawken
UBS Group AG
2 questions for ARES
William (Bill) katz
TD Cowen
1 question for ARES
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Form Technologies | 2025 | Ares Management funds acquired a majority of Form Technologies’ common equity via a $304 million capital injection (comprising $154 million of common equity and $150 million of preferred equity) to deleverage and accelerate global growth for a precision-engineered components leader operating 32 facilities in 22 countries. |
GLP Capital Partners International Business (GCP Acquisition) | 2024 | Ares Management Corporation entered into a definitive agreement to acquire GLP Capital Partners’ international business (excluding Greater China) for an initial consideration of approximately $3.7 billion—augmented by an earn-out potential of up to $1.5 billion—thereby nearly doubling its real estate AUM and enhancing capabilities in industrial real estate and digital infrastructure. |
Walton Street Capital Mexico S. de R.L. de C.V. | 2024 | Ares Management signed an agreement to acquire Walton Street Capital Mexico, a real estate asset management platform with $2.1 billion in AUM focused on the industrial sector, aiming to capitalize on nearshoring trends and complement its Real Assets group through cultural and strategic synergies. |
Crescent Point Capital | 2023 | Ares completed the acquisition of Crescent Point Capital on October 2, 2023, adding an Asia-focused private equity firm with $3.7 billion in AUM and 50 new investment professionals, thereby strengthening its presence and capabilities in the Asia Pacific region across credit, private equity, and real assets. |
AMP Capital’s Infrastructure Debt Platform | 2022 | Ares completed the acquisition on February 10, 2022 for a total of $328.6 million (comprising $315.8 million in cash and $12.8 million in restricted units), adding one of the largest global infrastructure debt platforms with $8.0 billion in AUM and setting the stage for accelerated fundraising and geographic expansion. |
Black Creek Group | 2021 | Ares acquired Black Creek Group on July 1, 2021, expanding its Real Estate Group by integrating a firm with $13.7 billion in AUM, a strong retail distribution platform (including over 100,000 financial advisors), and a team of 100+ professionals, which also generated a bargain purchase gain of $42.3 million. |
Recent press releases and 8-K filings for ARES.
- Ares Alternative Credit funds have entered into a strategic relationship with LenderMAC, which includes a structured debt investment and a buying arrangement for a significant portion of LenderMAC's Non-QM production.
- Ares will provide strategic capital to support LenderMAC's origination and growth efforts, with LenderMAC aiming to accelerate its growth trajectory in 2026 as a result.
- As of June 30, 2025, Ares Management Corporation's global platform managed over $572 billion of assets.
- SL Green Realty Corp. reported net income attributable to common stockholders of $0.34 per share for the third quarter of 2025, a significant improvement from a net loss of $0.21 per share in the same period of 2024.
- Funds from operations (FFO) increased to $1.58 per share for the third quarter of 2025, up from $1.13 per share for the same period in 2024.
- The company signed 52 Manhattan office leases totaling 657,942 square feet in the third quarter of 2025, with Manhattan same-store office occupancy increasing to 92.4% as of September 30, 2025.
- SL Green entered into a contract to purchase Park Avenue Tower for $730.0 million and closed on the sale of a 5.0% interest in One Vanderbilt Avenue, generating $86.6 million in proceeds.
- Financing activities included a $1.4 billion refinancing of 11 Madison Avenue and a net gain of $57.2 million from discounted debt extinguishment in the third quarter of 2025.
- Ares Management has raised approximately $5.3 billion for its Infrastructure Secondaries strategy, including the final closing of its latest dedicated fund, Ares Secondaries Infrastructure Solutions III (ASIS III).
- The ASIS III fund exceeded its initial $2 billion target, closing at approximately $3.3 billion in equity commitments, and is more than three times the size of its 2021 predecessor fund.
- This capital raise is among the largest infrastructure secondaries campaigns to date, positioning the team to invest in a diversified portfolio of seasoned private infrastructure assets.
- As of June 30, 2025, Ares Management Corporation's global platform managed over $572 billion in assets.
- Ares Management Corp. has raised approximately $5.3 billion for its infrastructure secondaries strategy, significantly surpassing its $2 billion target and tripling the size of its 2021 predecessor.
- The $5.3 billion raise includes $3.3 billion from external investor commitments for the Ares Secondaries Infrastructure Solutions III fund, with the remaining $2 billion coming from employee commitments and affiliated pools.
- The strategy focuses on preferred equity investments, GP-led continuation vehicles, and traditional LP stake purchases, aiming to capitalize on mature infrastructure assets generating steady cash flow.
- This infrastructure secondaries platform is now part of Ares' broader $34 billion secondaries franchise, underscoring the firm's strong position in the private infrastructure sector.
- Ares Management Corporation's fund under its Infrastructure Opportunities strategy acquired a 49% stake in a $2.9 billion renewable energy portfolio from EDP Renov\u00e1veis, S.A.
- This acquisition adds 1,632 megawatts of solar, wind, and energy storage capacity, increasing Ares Infrastructure Opportunities\u2019 total power generation capacity to approximately 5.7 gigawatts across 11 U.S. states and five power markets since September 2024.
- The portfolio comprises 10 projects secured by long-term Power Purchase Agreements averaging 18 years, aligning with Ares' strategic expansion in key domestic power markets.
- As of June 30, 2025, Ares Management's global platform managed over $572 billion in assets.
- Ares Management Corporation, through its Ares Infrastructure Opportunities strategy, has acquired a 49% stake in a diversified U.S. energy portfolio from EDP Renovables, S.A..
- The total estimated enterprise value for 100% of the portfolio is approximately $2.9 billion.
- The portfolio includes 10 assets totaling 1,632 MW of capacity, comprising 1,030 MW of solar, 402 MW of wind, and 200 MW of storage across four U.S. power markets, all with an average remaining contract duration of 18 years on their Power Purchase Agreements.
- This investment significantly bolsters Ares Infrastructure Opportunities’ portfolio, bringing the total capacity of power generation assets in which the Ares fund has acquired interests to approximately 5.7 GW since September 2024.
- Ares Management has acquired Meade Pipeline from XPLR Infrastructure (NextEra Energy affiliate) for $1.1 billion in cash, gaining full control of a 40% stake in the Central Penn Line (CPL).
- The 180-mile CPL is a FERC-regulated natural gas pipeline, operational since 2018, with a capacity of about 2.3 billion cubic feet per day following the Leidy South expansion in 2022.
- CPL operates under two long-term triple-net-lease agreements with Williams Companies' Transco, which co-owns and operates the system.
- The acquisition was executed through Ares' Infrastructure Opportunities strategy, reflecting confidence in energy infrastructure amid rising power and natural gas demand.
- Ares Management purchased a 20% stake in Eni’s renewable energy unit Plenitude for €2 billion, valuing the business at >€12 billion (equity €10 billion; enterprise >€12 billion).
- The deal bolsters Ares’ renewable energy and infrastructure strategy, adding to its $42.9 billion in assets under management.
- Equity analysts maintain an Outperform consensus with an average target of $180.27, while a GF Value of $133.97 signals potential downside of ~19.18%.
- The investment aligns with Ares’ social impact objectives, including pledges to donate a portion of performance fees to global health and education charities.
- Robust portfolio performance with steady EBITDA growth (notably 11% in Q1) and strong credit metrics highlighted, despite market dislocations.
- Shift in transaction timing observed, with Q2 activity potentially deferring to more active Q3 and Q4 periods, supported by a 160% year-over-year increase in secondaries deployment.
- Expanding alternative credit strategy across direct lending, asset-backed finance, and real estate debt markets, leveraging significant dry powder and evolving retail flows.
- Emphasis on AI integration, including the acquisition of Bootstraps Lab and deployment of over 100 use cases (15 active) to enhance portfolio analytics and value creation.
- Ares Management Corp emphasized the resilience of its alternative credit and direct lending portfolio, noting strong NOI and EBITDA growth along with deleveraging and robust borrower quality.
- The firm highlighted its direct lending model featuring a 42% loan-to-value structure that leverages institutional equity to help mitigate credit risk.
- Management discussed its diversified deployment strategy, including active pipelines in direct lending, secondary markets via the Landmark acquisition, and a broad range of alternative credit solutions.
- The acquisition of GCP was noted as a key move to expand global infrastructure capabilities in industrial real estate and data center development.