Ares Management Breaks Fundraising Records Despite Scrutiny

Ares Management, a prominent player in private credit, has reported a record first-quarter fundraising haul of approximately $30 billion. This significant achievement underscores the persistent strength of investor demand for private credit, a sector that has recently faced considerable negative attention and intense scrutiny.

Despite a slowdown in fundraising from the private wealth channel across the industry, analysts anticipate strong overall performance for Ares, largely due to its substantial institutional backing. The firm's CEO indicated that Ares is on track for another record fundraising year, citing broad-based investor demand and strong fundamental performance across its investment portfolios, even within a volatile market environment.

Ares has successfully expanded its investor base, with a notable 50% increase in direct institutional clients between 2022 and 2025. These institutional investors, such as pension funds, typically make longer-term commitments and demonstrate greater patience during market volatility.

The alternative asset manager, widely recognized for its significant presence in the credit landscape, saw its credit segment generate $20.4 billion in capital during the quarter, while its real assets division attracted $6.2 billion. Assets under management experienced an 18% year-over-year increase, reaching $644.3 billion, with a stated goal of surpassing $750 billion by 2028.

The firm boasts a record investment pipeline, positioning it well to invest capital opportunistically and meet its 2026 financial targets. Ares concluded the quarter with $158.1 billion in uninvested capital, an 11% rise from the previous year. The company deployed $32.3 billion in capital during the quarter, with a significant portion allocated to U.S. and European direct lending, real estate, and alternative credit strategies.

Ares' earnings are substantially boosted by fees generated from its assets under management, providing a stable income stream regardless of market conditions. Fee-related earnings saw a 26% increase year-over-year, reaching $464.4 million. After-tax realized income for the first quarter was $452.4 million, or $1.24 per share, compared to $381.4 million, or $1.09 per share, in the same period last year.