Ares Posts Fee-Related Earnings of $524.2 Million in Third Quarter

Key Facts

Ares Management posted fee-related earnings of $524.2 million in the third quarter of 2026, compared with $491.1 million in the second quarter, while realized income after taxes was $449.6 million. The company reported results on October 29 before the New York Stock Exchange opened and held a conference call to discuss them at 9 a.m. Eastern time. But net income attributable to Ares was $85.3 million, and basic and diluted earnings per share were $0.21, compared with $150.6 million and $0.49 per share in the previous quarter. Operating income measures therefore moved differently from net income and earnings per share between the two quarters. In a filing dated September 30, Ares had reported a preliminary estimate of about $10 million in net realized performance income, versus $9 million in the comparable period of 2025, a measure separate from the figures in the published results.

Ares said realized income after taxes was $449.6 million, and realized income per Class A share was $1.26. The latter is a per-share Class A measure, not total realized income divided by shares. Fee-related earnings were also $524.2 million, compared with $491.1 million in the second quarter. In the same period of the previous quarter, realized income after taxes was $467.6 million. On a quarter-on-quarter basis, fee-related earnings rose while realized income after taxes fell, alongside declines in reported net income and earnings per share.

In its pre-results filing, Ares said it preliminarily expected net realized performance income of about $10 million for the quarter ended September 30, compared with $9 million in the corresponding quarter of 2025. It explained that net realized performance income consists of realized income, a measure that is not prepared in accordance with generally accepted accounting principles. The company said it could not provide a reconciliation of the non-GAAP measure before completing its financial closing procedures. It cautioned that actual quarterly results could differ, potentially materially, from the preliminary estimate. It also said the estimate was not intended to forecast net realized investment income, realized income or any other financial information for the quarter.

Chief Executive Michael Arougheti said the company raised more than $31 billion in gross capital commitments in the third quarter, with more than half of the inflows coming from outside the credit group. He added that Ares invested $35 billion across its strategies during the period. In the second quarter, the company said it recorded inflows exceeding $36 billion, describing it as another record fundraising quarter, and noted strong and consistent performance across its funds and strategies. Assets under management on its global platform exceeded $671 billion on June 30, 2026, according to an earlier investor relations announcement. The company said fee-generating assets increased by $48.8 billion year over year through September 30, attributing the increase mainly to capital deployment from drawdown funds and fundraising across permanent capital vehicles.

In U.S. direct lending, Ares funds closed about $6.3 billion in new commitments across 55 transactions in the third quarter. In the twelve months ended September 30, 2026, closed commitments totaled about $43.4 billion across 314 transactions. These figures are part of the investment activity that management said reached $35 billion across the company's strategies in the quarter. Direct lending data reflects the pace of transactions completed in that business, while the company's capital commitments also included inflows from outside the credit group. Management said it expects another record year for fundraising, supported by continued demand across institutional channels and global wealth channels.

Management said year-to-date performance and an expected improvement in capital deployment in the fourth quarter put the company in a position to meet or exceed its key financial targets for 2026. Chief Financial Officer Jarrod Phillips added that capital raised but not yet generating fees provides visibility into continued growth in management fees and earnings in 2027 and beyond. Ares declared a quarterly cash dividend of $1.35 per common share, payable on December 31 to shareholders of record on December 17, 2026. Phillips is scheduled to present at the BMO Financial Services Conference on November 10, 2026, at 9:30 a.m. Eastern time. The company held its third-quarter results conference call on October 29 at 9 a.m. Eastern time, and a replay is available through November 29, 2026.