Ares Mgmt 2025-26: $622B AUM (+29%), Record $113B Fundraising
FY25 revenue $6.47B (+67%); Op income $1.76B (+86%); NI $527M (+14%); EPS $1.96. Crossed $600B AUM (+29% YoY to $622B). Record $113B fundraising for 2025; $36B in Q4 alone. Q4 deployment record $46B. Wealth Channel + Real Estate + Infrastructure all scaling. FY26 guide: fundraising as good or better than 2025 record; FRE margin at high end of 0-150bp annual target range.
Key takeaways
- Crossed $600B AUM milestone. $622B exit FY25, +29% YoY. Among top 4 alternative asset managers globally.
- Record fundraising — $113B. $36B Q4 alone. Credit Group (largest) raised $65B+ (US + European direct lending dominant). Real Estate $16B+. Infrastructure $7B+. Secondaries $12.9B. Wealth Channel scaling.
- Multi-segment diversification. Credit + Real Estate + Infrastructure + Secondaries + Wealth all contributing materially. Not concentrated single-strategy.
- FRE margin at high end of target. FY26 guide: at high end of 0-150bp annual margin target range. Strong operating leverage as scale compounds against fixed cost.
- FY26 fundraising as good or better than record 2025. Continued institutional + wealth + retail demand for alternatives. Real estate market recovery + infrastructure tailwind.
Business
Ares Management is a global alternative asset manager with multi-strategy platform. Four primary investment groups + wealth channel:
- Credit Group (largest): US + European direct lending + structured credit + alternative credit. $65B+ raised FY25; $18B+ Q4. Direct lending dominant.
- Real Estate Group: Equity + debt across property types. $16B+ raised FY25; $7B Q4. Real estate market recovery thesis.
- Infrastructure: Renewables + transition + traditional infra. $7B+ raised FY25; expected to grow in FY26.
- Secondaries Group: Private equity + real estate + infrastructure secondaries. $12.9B raised FY25; AUM +45%. Fast-growing strategy.
- Wealth Channel: AUM in semi-liquid + drawdown vehicles. Distribution to wealth managers + private banks + RIAs. Strategic priority.
Strategic positioning: top-tier global alt asset manager with multi-strategy + multi-channel scale. Differentiated through Credit Group leadership + diversified investment groups.
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 3.63 | 3.88 | 6.47 |
| Gross profit ($B) | 2.15 | 2.15 | 4.84 |
| Op income ($M) | 834 | 946 | 1,761 |
| EBITDA ($B) | 2.43 | 2.41 | 2.30 |
| Net income ($M) | 474 | 464 | 527 |
| Diluted EPS ($) | 2.42 | 2.07 | 1.96 |
| FCF ($B) | -0.30 | 2.70 | 1.54 |
| Capex ($M) | -67 | -92 | -72 |
| Total debt ($B) | 15.76 | 13.15 | 14.91 |
| Dividends ($B) | -1.03 | -1.31 | -1.76 |
| Buyback | 0 | 0 | 0 |
The earnings print: Revenue +67% on consolidated AUM scale + management fee growth + performance fee realization. Op income +86%. EPS $1.96 (-5%) on share count.
Dividend stepped up to $-1.76B (+34% YoY) — reflecting fee-related earnings (FRE) growth.
Capital allocation
- Capex: $-72M FY25 (1.1% of revenue). Asset-light asset manager.
- Dividends: $-1.76B FY25 (+34% YoY). Strong dividend growth.
- Buybacks: zero. Capital priority on dividend + balance sheet.
- M&A: Bolt-ons + GP stakes; no major.
- Debt: $14.91B (+$1.77B YoY) on platform expansion.
FY26 outlook (per Q4 2025 call, 2026-02-05)
| FY26 framework | Direction |
|---|---|
| Total fundraising | As good or better than record 2025 ($113B) |
| Management fee growth | Strong on FPAUM growth |
| FRP (fee-related performance fees) | Significant growth potential from real estate market recovery |
| FRE margin | High end of annual target range (0-150bp expansion) |
| Realized incentive fees | Expected to scale |
The structural drivers: continued institutional + wealth allocation to alternatives + real estate cycle recovery + infrastructure capital deployment.
Key risks
- Capital cycle: If institutional + wealth fundraising slows, AUM growth + management fee compression.
- Credit cycle: Direct lending exposure to corporate credit; default cycle would compress performance fees.
- Real estate cycle: Real estate market recovery thesis depends on rates + capital markets activity.
- Performance fee realization: Vintage cycle determines realized incentives; can be lumpy.
- Competition: Blackstone, KKR, Apollo, Brookfield, etc. competing for institutional + wealth allocations.
- Regulatory: SEC + ESMA + global regulatory frameworks for alt asset management.
Bottom line
ARES FY25 is the AUM scale + fundraising record + multi-strategy diversification year. AUM $622B (+29%), fundraising $113B record, multiple strategy growth. FY26 fundraising guide as good or better; FRE margin at high end of target. Risks are capital cycle + credit + real estate + competition. Quality alt asset manager with diversified platform + capital return.
Citations
- Ares Management Corporation FY25 Form 10-K (filed February 2026, SEC EDGAR).
- ARES Q4 2025 earnings call, 2026-02-05 — crossed $600B AUM ($622B, +29%), record $113B fundraising for 2025 ($36B Q4), Q4 deployment record $46B; Credit Group $65B+ raised; Real Estate $16B+; Infrastructure $7B+; Secondaries $12.9B; Wealth Channel scaling; FY26 fundraising as good or better; FRE margin at high end of target.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).