Ares Management keeps raising its dividend and breaking fundraising records even as its stock slides 25% this year, which raises a question most investors in the company have not yet answered: what exactly are they holding?
ARES' stock price has jumped by roughly 16.5% since my last strong buy rating. ARES delivered robust double-digit FRE growth (~20%) and record fundraising, with AUM reaching $671B and FPAUM at $410B. The infrastructure segment is driving outsized growth, with FRE up ~30% year-over-year. I expect more upside thanks to the AI and power infrastructure.
Shares of Ares Management ARES have jumped 28.8% in the past six months, outperforming the industry's 15.3% growth. In the same time frame, the S&P 500 has rallied 13.1%.
ARES' Q2 earnings meet estimates as fee-related earnings and AUM grow y/y, even as revenues missed expectations.
Ares Management NYSE: ARES reported second-quarter results marked by record fundraising, higher fee-paying assets under management and double-digit growth in fee-related earnings and realized income, as the alternative investment manager expanded activity across credit, real assets, secondaries and wealth products.
While the top- and bottom-line numbers for Ares Management (ARES) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Ares Management (ARES) came out with quarterly earnings of $1.29 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.03 per share a year ago.
ARES' Q2 results, set to be reported on July 31, are expected to benefit from higher AUM, management fees and revenues, supported by favorable inflows.
Shares of the State Street Financial Select Sector SPDR ETF (XLF) touched a fresh all-time high Tuesday. That gain is part of a broader shift in the market.
Ares Management (ARES) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Ares Management is rated a 'Buy,' offering an attractive entry for dividend growth and total return potential. ARES is demonstrating record fundraising, driven by strong institutional demand and expanding fee-paying assets. ARES benefits from diversified growth avenues—real estate, infrastructure, and international markets—beyond private credit, mitigating sector-specific risks.
Ares Management is oversold as the market panicked about some risks in the asset management space. I see strong financial growth, solid inflows, and a growing AUM. I don't see AI as a risk for ARES, but as an opportunity given its upcoming digital infrastructure fund and years of experience on that front.