Ares Management raises $29.5bn in Q1, hits $644bn AUM
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- Ares Management drew $29.5bn of investor commitments in Q1, including $19.7bn in equity and $9.8bn in leverage, lifting total assets under management to $644bn, eclipsing Wall Street forecasts.
- Ares raised $5bn for real‑estate strategies, $1.2bn for infrastructure funds, and closed an $8.3bn opportunistic credit fund after securing a final $1.5bn in the first quarter.
- CEO Michael Arougheti said institutional investors are not pulling back from private credit, viewing the market dislocation as a “huge opportunity” for liquidity and excess returns.
- Ares limited withdrawals from a flagship US private‑credit fund after a surge in redemption requests from high‑net‑worth clients.
- Analysts at Visible Alpha project Ares’ assets under management to near $700bn by year‑end and note the firm’s $775bn target for 2028, a goal seen as achievable ahead of schedule.
- Ares saw management‑fee revenue rise >20% to almost $1bn and fee‑related earnings climb 26% to $464mn, though the effective fee rate slipped 0.03 percentage points.
- Ares shares rose 1.4% after the earnings release but remain down more than 25% for the year.
Why it matters: Institutional investors gain a fresh liquidity outlet and higher yields as Ares channels $20bn into real‑estate and infrastructure, while high‑net‑worth clients face tighter redemption limits; the firm’s fee surge and AUM growth signal a shift toward diversified credit amid softening US private‑credit demand.
