Ares Management reported first-quarter fundraising of about $30 billion, a company-record total that underscores sustained investor interest in private credit despite recent negative coverage of the sector. The firm said the fundraising result came even as the broader private wealth channel has slowed across the industry, with analysts nonetheless expecting Ares to maintain strong overall fundraising because of its institutional investor base.
CEO Michael Arougheti said in a statement, "We are on track for another record year of fundraising as we continue to see broad-based investor demand across our platform." He added that Ares continues to see "strong fundamental performance across our investment portfolios despite the volatile market environment."
Over recent years Ares has expanded its mix of investors. The company reported that the number of direct institutional clients rose about 50% from 2022 to 2025, a change that management highlighted as a stabilizing factor because institutional commitments - such as those from pension funds - tend to be longer-term and more predictable than retail flows.
Although Ares operates across multiple alternative asset classes, including real estate, private equity and infrastructure, its reputation is strongest in the credit space. In the quarter the credit segment attracted $20.4 billion in capital while the real assets division drew $6.2 billion.
Assets under management increased 18% year-over-year to $644.3 billion. The firm has a stated target of exceeding $750 billion by 2028.
Investment pipeline and capital deployment
Finance chief Jarrod Phillips said Ares has a record investment pipeline and is positioned to deploy capital opportunistically while pursuing its financial targets for 2026. The firm finished the quarter with $158.1 billion in uninvested capital, an 11% rise from the same period a year earlier.
During the quarter Ares deployed $32.3 billion of capital, primarily into U.S. and European direct lending, real estate and alternative credit strategies. As that capital is put to work, the company begins earning management fees on the assets, which contributes to profits.
Earnings and fee income
Fee-related earnings, which provide a steady income stream less sensitive to market swings, increased 26% from a year earlier to $464.4 million for the quarter. After-tax realized income rose to $452.4 million, or $1.24 per share, in the three months ended March 31, up from $381.4 million, or $1.09 per share, in the prior-year period.
The firm noted that a sizeable portion of its earnings is derived from fees on assets under management, which tends to smooth revenue compared with reliance solely on transaction-driven income.
Despite the recent negative headlines and closer scrutiny into the private credit industry, Ares reported robust capital-raising, a growing AUM base and a substantial queue of uninvested capital ready for deployment. Management highlighted institutional demand and a record investment pipeline as factors supporting the firm’s outlook as it pursues its 2026 financial objectives.