Ares Management (ARES.N), a leading global alternative investment manager, has reported record first-quarter fundraising of approximately $30 billion. This result signals robust investor appetite for private credit, despite recent intense scrutiny and a barrage of negative headlines facing the multi-trillion-dollar sector. Ares invests across diverse asset classes, including credit, private equity, real estate, and infrastructure, but is particularly recognised for its significant presence in credit. Its credit segment alone attracted $20.4 billion in capital this quarter.
CEO Michael Arougheti told analysts that Ares is on track for another record fundraising year, citing broad-based institutional investor demand despite market noise. He noted institutional investors view the current environment as a significant opportunity to leverage market dislocations. The firm’s expanded direct institutional client base, surging approximately 50% since 2022, underpins its strength. RBC analyst Bart Dziarski highlighted Ares’ results, anticipating a positive share reaction. Following the announcement, Ares shares rose as much as 6.2%, closing up 2.3%, despite a year-to-date decline of 27.4%.
Arougheti also addressed concerns regarding lending standards, asserting that while defaults might occur elsewhere, Ares is not observing signs of an impending default cycle, believing private credit players are well-compensated for risks. The firm’s assets under management climbed 18% year-on-year to $644.3 billion, bolstered by the February acquisition of BlueCove. Ares deployed $32.3 billion of capital, predominantly in U.S. and European direct lending. With $158.1 billion in uninvested capital, it maintains a robust pipeline. Fee-related earnings, a stable income source, increased 26% to $464.4 million, reflecting strong financial performance.
