Key Takeaways
- • Citizens reiterated a Market Outperform rating and $160.00 price target on Ares Management, L.P. (ARES) following its third-quarter 2026 results, according to Investing.com.
- • Ares reported after-tax realized income per share of $1.26, in line with consensus, and fee-related earnings of $524 million, up 11% year-over-year and matching consensus of about $525 million.
- • Fee-related earnings margin expanded roughly 110 basis points year-over-year to 42.5%, while management fees rose 10% to nearly $1.1 billion.
- • Fee-related performance revenue of $79 million came in about 6% below consensus of roughly $84 million.
- • The firm reported a record U.S. Direct Lending pipeline beginning to convert, a meaningful reduction in wealth redemption requests, and continued fundraising across its platforms.
Summary
Citizens reiterated its Market Outperform rating and $160.00 price target on Ares Management, L.P. following the company's third-quarter 2026 results, according to Investing.com. The firm cited improved visibility into fee and margin growth during 2027, based on commentary from the company's earnings call.
Ares reported after-tax realized income per share of $1.26 on Tuesday, in line with consensus expectations. Fee-related earnings rose 11% year-over-year to $524 million, matching consensus of approximately $525 million. The fee-related earnings margin expanded roughly 110 basis points year-over-year to 42.5%. Management fees increased 10% year-over-year to nearly $1.1 billion, and the company's revenue growth of 10% over the last twelve months aligned with that management fee increase. Fee-related performance revenue of $79 million was approximately 6% below consensus of roughly $84 million.
Operationally, the firm reported a record U.S. Direct Lending pipeline that is beginning to convert and a meaningful reduction in wealth redemption requests during the quarter. Fundraising continued across the firm's platforms. The article cites a market capitalization of $42.1 billion.
Separate third-quarter coverage in the same article notes revenue of $1.43 billion, ahead of Wall Street's estimate of $1.25 billion, and assets under management of $691 billion. Adjusted earnings per share were slightly below the forecasted $1.27. The article's remaining content is platform promotion and does not bear on the results.
Ares reported after-tax realized income per share of $1.26 on Tuesday, in line with consensus expectations. Fee-related earnings rose 11% year-over-year to $524 million, matching consensus of approximately $525 million. The fee-related earnings margin expanded roughly 110 basis points year-over-year to 42.5%. Management fees increased 10% year-over-year to nearly $1.1 billion, and the company's revenue growth of 10% over the last twelve months aligned with that management fee increase. Fee-related performance revenue of $79 million was approximately 6% below consensus of roughly $84 million.
Operationally, the firm reported a record U.S. Direct Lending pipeline that is beginning to convert and a meaningful reduction in wealth redemption requests during the quarter. Fundraising continued across the firm's platforms. The article cites a market capitalization of $42.1 billion.
Separate third-quarter coverage in the same article notes revenue of $1.43 billion, ahead of Wall Street's estimate of $1.25 billion, and assets under management of $691 billion. Adjusted earnings per share were slightly below the forecasted $1.27. The article's remaining content is platform promotion and does not bear on the results.
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