Ares Raises $31 Billion in Third Quarter, Lifts Assets Under Management to $690.6 Billion
Key Facts
Ares Management reported on October 29 results for the third quarter ended September 30, 2026, recording total fundraising of $31.0 billion and net inflows of $28.6 billion after redemptions. The chief executive said capital commitments exceeded $31 billion and that more than half of inflows came from outside the credit group. Investment across the company’s strategies reached $35 billion during the period, while total assets under management reached $690.6 billion at quarter-end. The results highlight a broader range of sources of capital inflows alongside growth in the assets the company manages. Ares operates across credit, real estate, private equity and infrastructure.
Assets under management rose 16% year over year to $690.6 billion in the three months ended September 30, according to Reuters, compared with $671.3 billion in the second quarter of 2026, according to the company’s results presentation for that quarter. Fee-generating assets totaled $416.4 billion at the end of the third quarter. Fundraising was spread across business groups: the credit group attracted $15.2 billion, the real assets group $11.2 billion and the secondaries group $2.6 billion. The figures show fundraising extended beyond credit, consistent with the chief executive’s statement that more than half of inflows came from outside that group. Ares also deployed $34.8 billion of capital during the quarter, including $18.4 billion through drawdown funds.
Fee-related earnings rose to $524.2 million in the third quarter, from $471.210 million in the same period of 2025, an 11% year-over-year increase. The margin on these earnings climbed to 42.5% from 41.4% a year earlier. On another measure, net income under generally accepted accounting principles was $85.3 million, or $0.21 per diluted share. After-tax realized income was $449.6 million, equivalent to $1.26 per Class A share. These measures present the company’s results in two different formats: net income under accounting standards and after-tax realized income, which Ares disclosed separately. The company estimated it had $173.8 billion of available capital on September 30, including $93.8 billion of available non-fee-generating assets for investment and $2.3 billion of non-stabilized development assets.
Reuters said deal activity among private credit firms remained slow during the quarter amid subdued buyout activity and competition from the broadly syndicated loan market. By contrast, Ares’ capital deployment was tied to direct lending in the United States and Europe, alternative credit and infrastructure strategies spanning debt and equity. Reuters noted that the company’s acquisition of GCP International in the previous year strengthened its presence in real estate and digital infrastructure. Based on an estimate in the results presentation, non-fee-generating assets could generate about $826.9 million in additional annual fees if converted into fee-generating assets under the company’s assumptions. This places available investment capital among the factors management tracks alongside asset and inflow growth, while Reuters said Ares expects investment activity to increase in the fourth quarter.
Management forecast another record year for fundraising and said it sees an opportunity for a strong fourth quarter, supported by continued demand in institutional and global wealth channels, with capital deployment expected to improve during the quarter. The chief financial officer said capital raised but not yet generating fees provides visibility into growth in management fees and earnings in 2027 and beyond. In a separate shareholder decision, Ares declared a quarterly distribution of $1.35 per common share, payable on December 31, 2026, to shareholders of record on December 17. The company’s shares closed at $121.88 on October 26, then $122.19 on October 27 and $123.82 on October 28. The closing price rose to $127.47 on October 29, the day results were announced, and then to $128.15 on October 30.