- Company name
- Ares Management
- Sector
- Alternative asset management
- About
- Ares Management Corporation (Ares) is an alternative investment manager. It runs funds in credit, real assets (real estate and infrastructure), secondaries and private equity. It earns management fees on fee paying assets under management (FPAUM), fee related performance revenues, other fees and performance income. Assets under management (AUM) were $690.6 billion at September 30, 2026, against $595.7 billion a year before, and FPAUM was $416.4 billion, of which Credit was $271.2 billion. Fee related earnings (FRE) were $524.2 million in Q3 2026 and $1,479.7 million in nine months. Ares has four classes of common stock. Class A common stock (224.1 million shares at November 2, 2026) and non-voting common stock (3.5 million shares) have the same economic rights. Class B (1,000 shares) and Class C (102.7 million shares) are non-economic and carry votes. Holders of Ares Operating Group (AOG) Units can exchange them one for one for Class A shares. Ares also has 30 million shares of 6.75% Series B mandatory convertible preferred stock, which convert into Class A shares on October 1, 2027. Its shares trade on the New York Stock Exchange, and Michael Arougheti is Chief Executive Officer.
- Thesis
- The market prices Ares on how long its fee growth lasts and on how much of its profit is steady. About 93% of management fees come from perpetual capital or long-dated funds, so fees are steady. Two doubts hold the shares back. The first is the pace of fundraising and investing in a slower market, and the quality of the loans in its credit funds. The second is the part of income that is not fee related: realized net performance income was only about $10 million in Q3, and it can be uneven. For the shares to earn more, three things must be true. FPAUM must keep growing, up 13% in a year to $416.4 billion, helped by more than $31 billion of gross commitments in Q3 and by assets that do not yet pay fees, which could add about $826.9 million of annual management fees. FRE must keep rising faster than costs: it was $524.2 million in Q3 against $471.2 million a year before. And the credit funds must perform, while Ares services $4.8 billion of its own debt. On October 1, 2027, the Series B preferred converts into 8.2 million to 9.8 million Class A shares. The Q4 2026 report with the 2027 outlook, expected in February 2027, is the next test.
- Risks
- Fee growth depends on raising and investing capital. If fundraising or deployment slows, FPAUM and management fees grow less. Ares raised $31 billion in Q3 but invested $35 billion, and a slower market for deals would delay fees on committed capital.
Credit is the largest group, with FPAUM of $271.2 billion. Losses on loans in its funds would cut performance income and could make clients invest less.
Ares owes $4,778.2 million, including $1,815.0 million drawn on its credit facility. Its interest expense is part of realized income, so higher rates or more borrowing would lower per-share earnings.
Performance income is uneven. Realized net performance income was about $10 million in Q3 2026 and more than $50 million in Q2 2026. Per-share earnings can move from quarter to quarter for this reason.
The Series B preferred converts on October 1, 2027 into 8.2 million to 9.8 million Class A shares, and the conversion rate depends on the share price before that date. Exchanges of AOG Units also add Class A shares over time.
- Balance sheet
- Ares reported cash of $597.7 million and debt obligations of $4,778.2 million at September 30, 2026. The debt is $1,815.0 million drawn on the credit facility that matures on May 21, 2031 at 4.61%, a $400 million term loan due March 27, 2029, senior notes of $500 million due 2028, $400 million due 2030, $500 million due 2052 and $750 million due 2054, and $450 million of subordinated notes due 2051. The revolver commitments are $2.5 billion. Investments include $4,274.7 million of accrued carried interest, goodwill is $3,464.8 million and intangible assets are $2,046.0 million. The Series B preferred stock (30,000,000 shares) costs $25.3 million of dividends each quarter. Perpetual capital or long-dated funds earned 93% of management fees in Q3.
As of Sep 30, 2026.
- Checkpoints
- Oct 29, 2026: Q3 2026 results: FRE and fundraising. Passed. Watch: Fee related earnings above $500 million and more than $30 billion of gross commitments pass; lower figures fail. Outcome: FRE was $524.2 million and Ares raised more than $31 billion of gross commitments.
Feb 4, 2027 (estimate): Q4 2026 results: FRE growth and 2027 outlook. Pending. Watch: FRE at least 10% above the $527.7 million of Q4 2025 and record 2026 fundraising pass; slower growth fails.
Oct 1, 2027: Series B preferred converts into Class A shares. Pending. Watch: The 30 million preferred shares convert into 8.2 million to 9.8 million Class A shares and after-tax realized income per share keeps growing, which passes; a fall in the per-share figure fails.
- Recent events
- Nov 6, 2026: Ares filed its Form 10-Q for Q3 2026. It shows AUM of $690.6 billion, FPAUM of $416.4 billion, $826.9 million of potential annual management fees on AUM that is not yet paying fees, and debt obligations of $4,778.2 million. At November 2, 2026, Ares had 224,138,030 Class A shares, 3,489,911 non-voting shares and 102,689,992 Class C shares.
Oct 29, 2026: Ares reported Q3 2026 results. GAAP net income attributable to Ares was $85.3 million, or $0.21 per share. After-tax realized income was $449.6 million, or $1.26 per share, and FRE was $524.2 million. Ares raised more than $31 billion of gross capital commitments, with over half outside Credit, and invested $35 billion.
Oct 29, 2026: Ares declared a quarterly dividend of $1.35 per share of Class A and non-voting common stock, payable on December 31, 2026 to holders of record on December 17, 2026. It also declared $0.84375 per share on the Series B preferred stock, payable on January 1, 2027. Management said that it expects to meet or exceed its key financial objectives for 2026.
Sep 30, 2026: Ares said in an 8-K that it expected realized net performance income of about $10 million for Q3 2026, against $9 million for Q3 2025.
Jul 31, 2026: Ares reported Q2 2026 results. After-tax realized income was $467.6 million, or $1.29 per share, and FRE was $491.1 million. Ares recorded more than $36 billion of inflows, a record for a quarter.
May 21, 2026: Ares amended its credit facility on May 21, 2026. The revolver commitments rose to $2.5 billion, with an accordion up to $3.0 billion, and the maturity moved to May 21, 2031.
May 1, 2026: Ares reported Q1 2026 results. After-tax realized income was $452.4 million, or $1.24 per share, FRE was $464.4 million, and record first-quarter fundraising was $30 billion.
Feb 5, 2026: Ares reported Q4 and full-year 2025 results. After-tax realized income was $529.1 million for Q4, or $1.45 per share, and FRE was $527.7 million. Ares crossed $600 billion of AUM, raised the quarterly common dividend by 20% to $1.35 per share, and had closed its GCP International acquisition.