Ares Management Hits $464B AUM as Private Lending Surges

According to Bloomberg, Ares Management (ARES) enjoyed significant growth in Q3, driven by an uptick in private credit demand and strategic acquisitions like Crescent Point Capital. 

By The Numbers

The firm’s total assets under management (AUM) rose by 17% year over year to $464B, as it capitalized on heightened interest in direct lending. 

• The firm generated $1.1 billion in revenue, up 68% from Q3 2023, with fee income from its credit division rising 19% to $567 million.
• After-tax realized income was reported at $316 million, or 95 cents per share.
• Undeployed capital stood at $74.1 billion, including $33.2 billion earmarked for US direct lending.

Strategic Expansions

Ares expanded its real estate footprint by agreeing to acquire GLP Capital Partners Ltd.’s operations outside of China, doubling its real estate AUM to approximately $96B. 

This acquisition aligns with broader industry trends where alternative asset managers are pursuing scale mostly through acquisitions.

Competitive Landscape

While analysts raised concerns about competition from the booming syndicated loan market, CEO Michael Arougheti emphasized Ares’ diversified strategy, encompassing real estate, infrastructure, and alternative credit solutions. 

He noted the resilience of private debt amid a broader trend of “de-banking,” outpacing sub-investment grade market competition.

Looking Ahead

Ares is positioned for continued growth as it leverages strategic acquisitions and increasing global demand for private credit. 

The firm’s diverse asset base and commitment to quality management are expected to sustain its competitive edge amidst rising competition.