CEO Michael Arougheti is executing a diversified growth strategy with nearly $150 billion in dry powder, record deployment of $41 billion in Q3, and a wealth management business growing at 70% year-over-year. Wealth management is accelerating with the semi-liquid funds business pulling in $5.4 billion in Q3 and management raising its 2028 wealth AUM target from $100 billion to $125 billion.
Cyborg Score Rationale
Ares Management shares have declined ~30% over the past year amid private credit and AI-related concerns. However, fee-related earnings increased 33.2% to $528 million and the company demonstrates strong capital raising momentum. Valuation concerns temper growth optimism, but operational execution remains solid.
Top Insights
Record $19.4 billion in new commitments closed in Q4 2025 and $55.0 billion closed in the 12 months ended December 31, 2025
Company is scaling rapidly in infrastructure with its third infrastructure secondaries fund at $3.3 billion and sixth infrastructure debt fund at $5.3 billion, raising over $10 billion across all infrastructure products in the past year
Management fees grew 27% while stock declined ~30% over the past year, reflecting market sentiment toward private credit exposure
Ares trades on a P/E of 69.23x compared to capital markets industry average of 23.12x, indicating premium valuation despite operational strength
Named Competitors
Apollo — Multi-asset alternative investment manager
Blackstone — Leading global asset management and real estate platform
Blue Owl Capital — Alternative asset manager with private credit focus
Carlyle Group — Global alternative asset manager
Recent Developments
(February 2026) Fee-related earnings increased 33.2% year-over-year to $528 million in Q4 2025
(February 2026) Ares completed $7.1 billion capital raise; announced record fundraising quarter