Ares’ CEO forecasts ‘strong’ fundraising as assets reach record
Its cash reserve rises 17% to US$156 billion in 2025, boosting its quarterly dividend more than 20% to US$1.35 a share
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[LONDON] Ares Management’s assets under management climbed to a record US$622 billion as at end 2025, as its clients bet on private credit and secondary investments.
The alternative manager’s assets rose 4.5 per cent in the fourth quarter, bringing its total annual increase to 29 per cent, with inflows driven by its US direct lending business.
Its cash reserves swelled 17 per cent to US$156 billion in the year, the company said on Thursday (Feb 5), and its quarterly dividend was boosted by more than 20 per cent to US$1.35 a share.
The fundraising and war chest show that customers continued pumping money into Ares products ahead of a 15 per cent drop in the company’s stock price this year so far. This is as shareholders of Wall Street’s largest alternative asset managers have been focusing on potential risks in credit and valuations.
In a nod to those concerns, the company’s quarterly earnings statement noted that exposure to the software industry – in which stocks have plunged in recent days – represents 6 per cent of total assets, and less than 9 per cent of private credit.
Chief executive officer Michael Arougheti said: “Robust investor demand across all three of our channels is continuing. We expect another strong year of fundraising, which could match or exceed our record levels from 2025.”
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Its fee-related earnings jumped 33 per cent to almost US$528 million in the quarter, against the year before, the New York-based company said. That beat the US$516 million average estimate of analysts compiled by Bloomberg.
Realised income in the firm’s private equity group fell 65 per cent to US$5.8 million in the quarter, as the firm liquidated a fund. The business posted gross returns of 5 per cent for the year. BLOOMBERG
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