Ares Management limited withdrawals from its Strategic Income Fund after investors sought to redeem 14.4% of shares, though the firm expects to clear its redemption backlog by year-end.
Ares Management Corporation ARES and KKR & Co. Inc. KKR are prominent alternative asset managers with diversified investment platforms across private equity, credit and real assets. ARES primarily focuses on alternative investment solutions spanning credit, private equity, real assets, secondaries and insurance-related strategies.
Ares Management has corrected ~34% from highs, but its fee base and earnings remain resilient, supporting a buy rating. Q1 2026 showed management fees up 22% YoY, FRE margin expansion to 42.4%, and record fundraising, indicating robust institutional demand. ~85% of AUM is in locked or long-dated vehicles, structurally insulating ARES from rapid credit stress and making the current valuation discount appear excessive.
The Touchstone Mid Cap Growth Fund (Class A Shares, Load Waived) outperformed its benchmark, the Russell Midcap Growth Index, for the quarter ended March 31, 2026. Among the top contributors to relative performance during the quarter were Vertiv Holdings, Ascendis Pharma, Howmet Aerospace, Diamondback Energy, and Roblox Corp. The largest detractors from relative performance during the quarter were Atlassian Corp., DoorDash Inc., Ares Management, Axon Enterprise, and MongoDB.
Most of the requests to withdraw money from a private credit fund for the wealthy run by alternative asset manager Ares came from outside the United States, its CEO said on Wednesday.
Ares Management Corporation (ARES) Presents at Goldman Sachs 30th Annual European Financials Conference 2026 Transcript
Ares Management Corporation (ARES) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript
Ares Management targets strong long-term earnings growth as rising AUM, fee revenues and acquisitions expand its alternative investment platform.
Ares Management grew fee-related earnings by 26% year-over-year during the first quarter. AUM reached $644.3 billion, and management fees rose 25%. ARES is currently paying a 4.4% dividend yield, the highest in over 5 years, with the company having a history of blockbuster dividend hikes. 93% of management fees are from perpetual or long-dated capital, supporting stable earnings despite private credit redemption fears.
Ares Management Corporation (ARES) Q1 2026 Earnings Call Transcript
The firm dismissed concerns surrounding private-credit fund redemption requests and artificial intelligence disruption.
ARES' Q1 realized income per share misses estimates as expenses rise Y/Y. Nevertheless, shares gain nearly 1.2% as AUM climbs 18% from a year ago.