Stock Markets February 5, 2026

Ares Management AUM Tops $600 Billion as Fundraising Remains Strong

Robust capital inflows lift assets to $622.5 billion in Q4 even as private credit faces scrutiny

By Nina Shah ARES
Ares Management AUM Tops $600 Billion as Fundraising Remains Strong
ARES

Ares Management reported that assets under management rose above $600 billion in the fourth quarter, reaching $622.5 billion after raising $35.9 billion of gross new capital. The firm maintained a goal of exceeding $750 billion by 2028. While investor demand for private credit remains solid, industry concerns persist following recent high-profile bankruptcies and scrutiny of exposure to software companies.

Key Points

  • Ares raised $35.9 billion in gross new capital in Q4, lifting assets under management to $622.5 billion.
  • The firm aims to exceed $750 billion in AUM by 2028 and deployed $45.8 billion of capital in the quarter, mainly into U.S. and European direct lending, real estate and alternative credit.
  • Ares reports software industry exposure at 6% of total assets and under 9% of private credit, as the sector draws investor scrutiny amid concerns about AI-driven disruption.

Ares Management said its assets under management (AUM) climbed past the $600 billion threshold in the fourth quarter, driven by strong fundraising activity amid persistent investor interest in private credit.

The alternative asset manager reported $35.9 billion of gross new capital raised during the quarter, bringing total AUM to $622.5 billion. The firm reiterated its strategic objective of surpassing $750 billion in assets by 2028.

Institutional demand for private credit has held up even as market participants weigh concerns about stress within the sector. Investors appear to be attracted to private credit as a means of securing higher yields and diversifying beyond public markets, supporting continued fundraising momentum for managers such as Ares.

CEO Michael Arougheti commented on investor appetite, saying: "Robust investor demand across all three of our channels is continuing and we expect another strong year of fundraising which could match or exceed our record levels from 2025."

Analysts and market observers will be closely watching upcoming earnings reports from alternative asset managers as they evaluate the sector's exposure to software companies - an area that has drawn heightened attention because of potential disruption from artificial intelligence technologies.

Ares disclosed that its investment exposure to the software industry accounts for 6% of its total assets and under 9% of its private credit portfolio, quantifying the firm's direct link to that sector.

The private credit market has been under increased scrutiny since September, after the twin bankruptcies of auto-parts maker First Brands and subprime lender Tricolor raised concerns about credit stress in the non-bank lending space. Ares noted that it deployed $45.8 billion of capital during the fourth quarter, with the majority allocated to U.S. and European direct lending, real estate and alternative credit strategies.

On a reported basis, Ares' quarterly after-tax realized income was $1.45 per share, up from $1.23 per share a year earlier.

As one of the largest alternative asset managers with a strong credit orientation, Ares has also expanded its capabilities in real estate and digital infrastructure through the acquisition of GCP International. The firm became a member of the S&P 500 index in December, marking another milestone in its growth trajectory.

Investors will likely continue to balance the firm's fundraising strength and deployment activity against the lingering uncertainties in parts of private credit and concentrated exposures to specific industries such as software.

Risks

  • Potential stress in the private credit market, highlighted by recent bankruptcies (First Brands and Tricolor), which could affect lenders and alternative credit strategies.
  • Concentration risk from exposure to the software industry, which is under close examination as investors assess vulnerability to disruption from artificial intelligence.
  • Broader investor scrutiny of alternative asset managers' earnings and portfolio exposures may influence market sentiment toward asset-management firms and credit-focused strategies.

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