Key Takeaways
- • Ares Management reported third-quarter 2026 revenue of $1.43 billion, beating Wall Street's $1.25 billion estimate by $180 million, or 14.4%, according to Investing.com's earnings call transcript coverage.
- • Adjusted EPS of $1.26 missed the $1.27 consensus by one cent, a shortfall of less than 1%.
- • Assets under management reached $691 billion, up 16% year over year, while fee-paying AUM rose 13% to $416 billion.
- • Fee-related earnings rose to $524 million with a 42.5% margin, and management fees climbed 10% to nearly $1.1 billion.
- • Ares raised more than $31 billion of gross capital in the quarter and raised its quarterly dividend to $1.35 per share, up more than 20% from a year earlier.
Summary
Ares Management reported third-quarter 2026 revenue of $1.43 billion, ahead of the $1.25 billion Wall Street consensus, while adjusted earnings per share of $1.26 came in one cent below the $1.27 forecast. The company reported assets under management of $691 billion, up 16% from a year earlier, and fee-paying AUM of $416 billion, up 13% year over year. Available capital reached $174 billion at quarter-end.
Management fees rose 10% from a year earlier to nearly $1.1 billion, and fee-related performance revenues added $79 million. Fee-related earnings reached $524 million, with the margin improving to 42.5%. Realized income totaled $490 million. Ares said results reflected growth across private credit, real estate, infrastructure and secondaries, and that its diversified platform offset uneven transaction activity, including slower U.S. direct lending. The firm raised more than $31 billion of gross capital during the quarter and said it expects a strong fourth quarter.
Ares shares rose 2.8% to $127.29 in pre-market trading from a previous close of $123.82, according to the report. The stock remains below its 52-week high of $181.19 and above its 52-week low of $95.80. The company also declared a quarterly dividend of $1.35 per share, which it said is more than 20% higher than a year earlier.
For full-year 2026, Ares expects realized performance income of $300 million to $325 million, including $160 million to $185 million in the fourth quarter. It also expects fourth-quarter gross fee-related performance revenues of $115 million to $125 million from credit separately managed accounts, assuming no major change in credit spreads. Management said fee-related earnings should grow within its 16% to 20% annual target range.
Chief Executive Michael Arougheti said the quarter demonstrated "the breadth and increasing diversification of our global platform," and that the company deployed $35 billion across strategies and geographies. Chief Financial Officer Jarrod Phillips said $117 billion of AUM not yet paying fees could eventually generate more than $800 million in incremental annual management fees if deployed or stabilized. On the call, management said the Ares Core Infrastructure Fund had about $2.7 billion of equity commitments and roughly $8.5 billion in AUM.
Management fees rose 10% from a year earlier to nearly $1.1 billion, and fee-related performance revenues added $79 million. Fee-related earnings reached $524 million, with the margin improving to 42.5%. Realized income totaled $490 million. Ares said results reflected growth across private credit, real estate, infrastructure and secondaries, and that its diversified platform offset uneven transaction activity, including slower U.S. direct lending. The firm raised more than $31 billion of gross capital during the quarter and said it expects a strong fourth quarter.
Ares shares rose 2.8% to $127.29 in pre-market trading from a previous close of $123.82, according to the report. The stock remains below its 52-week high of $181.19 and above its 52-week low of $95.80. The company also declared a quarterly dividend of $1.35 per share, which it said is more than 20% higher than a year earlier.
For full-year 2026, Ares expects realized performance income of $300 million to $325 million, including $160 million to $185 million in the fourth quarter. It also expects fourth-quarter gross fee-related performance revenues of $115 million to $125 million from credit separately managed accounts, assuming no major change in credit spreads. Management said fee-related earnings should grow within its 16% to 20% annual target range.
Chief Executive Michael Arougheti said the quarter demonstrated "the breadth and increasing diversification of our global platform," and that the company deployed $35 billion across strategies and geographies. Chief Financial Officer Jarrod Phillips said $117 billion of AUM not yet paying fees could eventually generate more than $800 million in incremental annual management fees if deployed or stabilized. On the call, management said the Ares Core Infrastructure Fund had about $2.7 billion of equity commitments and roughly $8.5 billion in AUM.
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