Key Takeaways
- • Ares Management raised $31 billion of gross capital in the third quarter, including $4.2 billion from the wealth channel, the second-highest quarter on record for wealth at the firm, and is on track for a record fundraising year.
- • Blackstone reported inflows exceeding $270 billion over the last 12 months, the highest level in four years, while its multiasset investing unit (which houses hedge fund products) grew AUM 22% year-over-year to $114 billion with record organic net inflows in the third quarter.
- • Blue Owl Capital said institutional and insurance investors drove approximately 70% of its equity capital fundraise over the last 12 months, and its AUM grew 12% year-over-year to $330 billion as of Sept. 30 with $10.2 billion raised in the third quarter.
- • Managers diverge on AI infrastructure: Ares will focus on the roughly 40% of an estimated $5 trillion in AI infrastructure investment needed for data centers and avoid GPU financing, while Blue Owl has invested in chip financing despite viewing data centers and chips as distinct risk profiles.
- • Wealth channel expansion is a shared priority, with Blackstone's BXPE recording $2.9 billion in sales in the third quarter and Acadian Asset Management winning mandates with St. James Place and a UBS Asia wealth partnership.
Summary
The largest alternative asset managers posted strong third-quarter results driven by fundraising, AI-related deployment and growth in the wealth channel, according to their earnings reports and calls. Ares Management, a $696 billion manager, raised $31 billion of gross capital in the quarter. U.S. direct lending led with $7.2 billion, followed by real estate at $5.9 billion and infrastructure at $5.2 billion. CEO Michael Arougheti said on the firm's Oct. 29 earnings call that infrastructure AUM has grown more than 50% over the past year, and that the firm is launching an infrastructure fund focused solely on GP-led transactions after its third infrastructure secondary strategy raised over $5 billion and increased its hard cap.
Blackstone reported inflows exceeding $270 billion over the last 12 months, per executives on its Oct. 22 call. President and COO Jon Gray said the multiasset investing unit has "reemerged as a growth engine." Its flagship secondaries vehicle has raised over $16 billion to date against a target of at least $22 billion. Blue Owl, which has faced scrutiny over elevated redemptions at its retail-heavy business development companies, said institutional and insurance investors drove roughly 70% of equity fundraising over the last 12 months. Co-CEO Marc Lipschultz said that through the third quarter, about a third of institutional activity came from re-ups, a third from new investors and a third from cross-selling into new products.
Managers differ in how they approach AI infrastructure. Arougheti estimated an additional $5 trillion will be invested in AI infrastructure by 2030, and said Ares will focus on the roughly 40% needed for data centers rather than GPU financing, which he described as less simple to underwrite. Lipschultz argued that data center assets, such as a facility Blue Owl still owns that was originally used by AOL, have far longer lifespans than chips, and that the two should not be conflated, though Blue Owl has also invested in chip financing. Blackstone said it works with Google, Anthropic and Nvidia across power, financing and data center solutions, with the majority of its activity long-term contracted, including 15- to 20-year data center contracts. Goldman Sachs Chairman and CEO David Solomon said there will be substantial financing needs and that rising rates could pressure project returns over time.
Wealth distribution is another growth focus. Blackstone's BXPE reported record sales of $2.9 billion in the third quarter, bringing net asset value to $29 billion, and its BXHF perpetual hedge fund raised approximately $400 million. Gray said investors globally are roughly 1% allocated to private assets. Acadian Asset Management, which manages $239.6 billion, won multiple U.K. wealth mandates with St. James Place and formalized a partnership with UBS's Asia wealth arm, according to CEO Kelly Young. T. Rowe Price highlighted an international value SMA selected for a large wealth firm's model and Oak Hill Advisors strategies used across six Goldman Sachs models.
Blackstone reported inflows exceeding $270 billion over the last 12 months, per executives on its Oct. 22 call. President and COO Jon Gray said the multiasset investing unit has "reemerged as a growth engine." Its flagship secondaries vehicle has raised over $16 billion to date against a target of at least $22 billion. Blue Owl, which has faced scrutiny over elevated redemptions at its retail-heavy business development companies, said institutional and insurance investors drove roughly 70% of equity fundraising over the last 12 months. Co-CEO Marc Lipschultz said that through the third quarter, about a third of institutional activity came from re-ups, a third from new investors and a third from cross-selling into new products.
Managers differ in how they approach AI infrastructure. Arougheti estimated an additional $5 trillion will be invested in AI infrastructure by 2030, and said Ares will focus on the roughly 40% needed for data centers rather than GPU financing, which he described as less simple to underwrite. Lipschultz argued that data center assets, such as a facility Blue Owl still owns that was originally used by AOL, have far longer lifespans than chips, and that the two should not be conflated, though Blue Owl has also invested in chip financing. Blackstone said it works with Google, Anthropic and Nvidia across power, financing and data center solutions, with the majority of its activity long-term contracted, including 15- to 20-year data center contracts. Goldman Sachs Chairman and CEO David Solomon said there will be substantial financing needs and that rising rates could pressure project returns over time.
Wealth distribution is another growth focus. Blackstone's BXPE reported record sales of $2.9 billion in the third quarter, bringing net asset value to $29 billion, and its BXHF perpetual hedge fund raised approximately $400 million. Gray said investors globally are roughly 1% allocated to private assets. Acadian Asset Management, which manages $239.6 billion, won multiple U.K. wealth mandates with St. James Place and formalized a partnership with UBS's Asia wealth arm, according to CEO Kelly Young. T. Rowe Price highlighted an international value SMA selected for a large wealth firm's model and Oak Hill Advisors strategies used across six Goldman Sachs models.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.