Company Overview

Ares Management Corporation, founded in 1997 and headquartered in Los Angeles, California, is a leading global alternative investment manager with additional offices across the United States, Europe, and Asia. The company's stock trades under the ticker ARES on the New York Stock Exchange.

Ares Management Corporation specializes in investing across credit, real assets, private equity, and the secondaries market. It offers clients complementary primary and secondary investment solutions across credit, real estate, private equity, and infrastructure asset classes. The firm's mission is to advance stakeholders' long-term goals by providing flexible capital that supports businesses and creates value for investors and within communities.

Business Segments and Operations

The company's operations are structured across several key business segments: Credit Group, Private Equity Group, Real Assets Group, Secondaries Group, and Others. The Credit Group is the largest revenue generator, managing a diverse range of credit strategies.

Credit Group

This segment offers credit strategies spanning both liquid and illiquid markets, including syndicated bank loans, high yield bonds, credit opportunities, special situations, asset-backed investments, and U.S. and European direct lending. It provides solutions for traditional fixed income investors seeking exposure to syndicated bank loan and high yield bond markets, as well as opportunities across traded corporate credit. Additionally, it grants investors access to directly originated fixed and floating rate credit assets and the ability to capitalize on illiquidity premiums throughout the credit spectrum.

Private Equity Group

The Private Equity Group focuses on making majority or shared-control investments, primarily in under-capitalized companies.

Real Estate Group

This segment invests in new developments and asset repositioning, with a strong emphasis on control or majority-control investments. It also originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate.

Financial Performance and Market Position

Ares Management's financial performance highlights robust growth in Assets Under Management (AUM) and strong revenue generation. As of June 30, 2025, the company's total AUM reached $572.4 billion, marking a significant 28% increase from $447.2 billion in the prior year.

Key Financial Metrics (Q2 2025)

- Total Assets Under Management (AUM): $572.4 billion (June 30, 2025), up 28% year-over-year.

- GAAP Net Income Attributable to Corporation: $137.1 million

- Fee Related Earnings (FRE): Grew 26% year-over-year to $409.1 million.

- After-Tax Realized Income per Share: Increased 4% to $1.03.

- Management Fees: Grew 24% year-over-year to $900.3 million.

- Other Fees: Surged 230% to $76.1 million.

- New Capital Commitments Raised (Q2 2025): $26.2 billion.

- Net Inflows (Q2 2025): $25.1 billion.

Assets Under Management Breakdown

The Credit Group continues to be Ares' largest segment, accounting for $377.1 billion in AUM, representing 66% of the total. The Real Assets Group demonstrated the most significant growth, expanding by 92% year-over-year to $129.8 billion, largely driven by the acquisition of GCP International.

Perpetual capital, a strategic focus for the firm, grew 43% year-over-year to $166.6 billion, providing stable, long-term revenue streams. Approximately 82% of total AUM is categorized as either perpetual capital or long-dated funds, and these sources account for 91% of the management fees earned.

Market Capitalization and Valuation

Ares Management Corporation held a market capitalization of $40.15 billion as of September 2025. The company employed approximately 3,200 individuals as of September 22, 2025.

Recent Performance and Financial Strength

Investment Performance

The Corporate Private Equity Composite recorded a gross return of 3.3% during the quarter.

EBITDA

Ares Management Corporation reported an EBITDA of $1.53 billion USD, with a current EBITDA margin of 35.38%.

Dividend

The company declared a quarterly dividend of $1.12 per share for its Class A and non-voting common stock, payable on September 30, 2025, to stockholders of record as of September 16, 2025. In 2024, Ares Management Corporation's dividend yield was 2.10%, with a payout ratio of 179.61%. The preceding year saw a dividend yield of 2.59% and a payout ratio of 127.13%.

Growth Initiatives and Future Outlook

Private Wealth Strategy

AUM across Ares' eight semi-liquid products has surpassed $50 billion. Seven of these products manage over $1 billion, and the eighth, launched in June, shows promising early traction. The global wealth distribution network has expanded, partnering with over 80 firms worldwide, a 33% year-over-year increase. Notably, the firm engaged with over 1,300 new financial advisers in the quarter, representing a more than 200% increase from the previous year.

Future Capital Deployment

Ares Management Corporation has $104.8 billion in AUM that is not yet generating fees. Of this amount, $86.8 billion is available for future deployment, which is projected to generate approximately $822.7 million in potential incremental annual management fees.

The company continues to solidify its position as a premier alternative investment manager through its strategic growth initiatives, robust fundraising capabilities, and diversified investment strategies across various asset classes.