Ares Management, a titan in the private credit arena, has announced a monumental fundraising achievement, securing $36 billion in the second quarter of 2026. This remarkable feat underscores the growing allure of private credit among institutional investors, who are increasingly favoring established managers in the alternative assets space.
The surge in fundraising positions Ares among the elite in the asset management industry. This shift is driven by institutional investors, such as pension funds, which are known for their long-term investment horizons and resilience in the face of market volatility. Ares has successfully expanded its investor base, with the number of direct institutional investors more than tripling since 2019.
Ares’ Strategic Growth and Performance
CEO Michael Arougheti attributed the success to the firm’s consistent fund performance across various strategies. The credit segment led the inflows, drawing $23.7 billion while the real assets division raised $9.7 billion. Notably, Ares’ flagship asset-based finance fund garnered $8.5 billion during the quarter.
Ares’ assets under management soared by 17% to $671.3 billion with fee-related earnings climbing 20% to $491.1 million year-over-year. Much of Ares’ earnings stem from management fees on the assets it oversees, providing a stable and predictable revenue stream.
Deployment and Investment Pipeline
Despite a slightly subdued deal activity due to geopolitical uncertainties, Ares remains optimistic about its investment pipeline. Arougheti highlighted the firm’s diverse global origination platform which enabled active investing in attractive opportunities even in a slower transaction environment. Ares deployed $35.9 billion of capital in the quarter, driven by its U.S. and European direct lending, real estate, and alternative credit strategies.
One notable deal involved Ares leading a $1.7 billion debt financing to support KSL Capital Partners’ acquisition of Invited Clubs, a private clubs operator. This transaction exemplifies Ares’ strategic involvement in significant financial maneuvers.
Future Prospects and Financial Metrics
Uninvested capital at Ares jumped 13% to a record $170 billion positioning the firm to execute on its largest-ever forward investment pipeline. This substantial dry powder is expected to support continued earnings growth as Ares starts generating management fees upon deploying the capital.
In terms of investment performance, alternative credit posted a gross return of 4.1% U.S. senior direct lending returned 2.5% and infrastructure equity returned 9%. After-tax realized income per share of Class A common stock was $1.29 for the quarter ended June 30, compared with $1.03 a year ago.
Ares declared a quarterly dividend of $1.35 per share for its Class A and non-voting common stock, payable on September 30, 2026. The company also declared a $0.84375-per-share dividend for its 6.75% Series B mandatory convertible preferred stock, payable on October 1, 2026.
Looking ahead, Ares’ ability to convert its record fundraising and substantial dry powder into deployed capital will be crucial. The firm’s strategic focus on consistent performance and diverse investment opportunities positions it well to navigate the current financial landscape and drive future growth.
