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Ares Management Eyes Buyout to Strengthen Private Equity Business
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Key Takeaways
Ares Management is exploring a buyout to expand its private equity arm and better compete with larger peers.
ARES says it has capacity for organic growth & deals as US retirement plans expand access to private markets.
Private equity is about $25B, just over 4% of Ares Management AUM, down from more than 13% in 2014.
Ares Management Corp. (ARES - Free Report) is exploring a potential acquisition to expand its private equity business and better compete with industry leaders such as Blackstone (BX - Free Report) , KKR & Co. Inc. (KKR - Free Report) and Apollo Global Management (APO - Free Report) . According to an article on Private Equity Wire, Michael Arougheti, CEO of Ares Management, said this in an interview with the Financial Times.
Rationale Behind Ares Management’s Potential Move
Arougheti said that ARES has adequate financial capacity to pursue both organic growth and acquisitions, particularly as U.S. retirement plans begin expanding access to private markets. He noted that a broader and more diversified private equity franchise will become increasingly important as defined contribution plans open up to alternative investments.
Although Arougheti didn’t mention any specific targets, he said that even a private equity firm managing $100 billion or more would be financially feasible for Ares Management and would not be outsized relative to its market value. However, he stressed the importance of balance, noting that the company does not intend to swing from being underexposed to private equity to overly concentrated in the strategy.
He further indicated that ARES could scale its private equity business through greater size, geographic diversification or by adding sector-specific capabilities that complement its broader platform. While no transaction is imminent and there is no immediate strategic gap, he acknowledged that the company’s private equity arm remains relatively small compared to Blackstone, KKR and Apollo.
Private equity accounts for roughly $25 billion of ARES’ assets under management (AUM) as of Sept. 30, 2025, representing just more than 4% of total AUM, down from more than 13% at the time of the company’s public listing in 2014. This contrasts with its dominant private credit franchise, which has been the primary driver of growth and profitability.
Ares Management has been engaged in acquisitions to reshape its business. In March 2025, it purchased the international arm of GLP Capital Partners in a deal valued at up to $5.2 billion. This complemented the company’s real estate and digital infrastructure investment capabilities and expanded geographic presence.
How are ARES’ Peers Expanding?
Similar to Ares Management, its peers are scaling their businesses through strategic collaborations or acquisitions. Earlier this month, Blackstone partnered with Phoenix Financial, with a tie-up across a range of credit strategies, including corporate, real estate and asset-based credit. Phoenix will invest up to $5 billion across these strategies.
Likewise, KKR expanded its partnership with Capital Group to offer new, integrated retirement and wealth solutions. The collaboration builds on their successful launch of public-private investment strategies in 2025. On the other hand, in September, Apollo Global acquired Bridge Investment Group Holdings Inc. to strengthen its real estate investment platform and support long-term fee-based revenue growth.
Ares Management’s Price Performance & Zacks Rank
Over the past three months, shares of Ares Management have gained 3.3% against the industry’s decline of 6.7%.
Image: Bigstock
Ares Management Eyes Buyout to Strengthen Private Equity Business
Key Takeaways
Ares Management Corp. (ARES - Free Report) is exploring a potential acquisition to expand its private equity business and better compete with industry leaders such as Blackstone (BX - Free Report) , KKR & Co. Inc. (KKR - Free Report) and Apollo Global Management (APO - Free Report) . According to an article on Private Equity Wire, Michael Arougheti, CEO of Ares Management, said this in an interview with the Financial Times.
Rationale Behind Ares Management’s Potential Move
Arougheti said that ARES has adequate financial capacity to pursue both organic growth and acquisitions, particularly as U.S. retirement plans begin expanding access to private markets. He noted that a broader and more diversified private equity franchise will become increasingly important as defined contribution plans open up to alternative investments.
Although Arougheti didn’t mention any specific targets, he said that even a private equity firm managing $100 billion or more would be financially feasible for Ares Management and would not be outsized relative to its market value. However, he stressed the importance of balance, noting that the company does not intend to swing from being underexposed to private equity to overly concentrated in the strategy.
He further indicated that ARES could scale its private equity business through greater size, geographic diversification or by adding sector-specific capabilities that complement its broader platform. While no transaction is imminent and there is no immediate strategic gap, he acknowledged that the company’s private equity arm remains relatively small compared to Blackstone, KKR and Apollo.
Private equity accounts for roughly $25 billion of ARES’ assets under management (AUM) as of Sept. 30, 2025, representing just more than 4% of total AUM, down from more than 13% at the time of the company’s public listing in 2014. This contrasts with its dominant private credit franchise, which has been the primary driver of growth and profitability.
Ares Management has been engaged in acquisitions to reshape its business. In March 2025, it purchased the international arm of GLP Capital Partners in a deal valued at up to $5.2 billion. This complemented the company’s real estate and digital infrastructure investment capabilities and expanded geographic presence.
How are ARES’ Peers Expanding?
Similar to Ares Management, its peers are scaling their businesses through strategic collaborations or acquisitions. Earlier this month, Blackstone partnered with Phoenix Financial, with a tie-up across a range of credit strategies, including corporate, real estate and asset-based credit. Phoenix will invest up to $5 billion across these strategies.
Likewise, KKR expanded its partnership with Capital Group to offer new, integrated retirement and wealth solutions. The collaboration builds on their successful launch of public-private investment strategies in 2025. On the other hand, in September, Apollo Global acquired Bridge Investment Group Holdings Inc. to strengthen its real estate investment platform and support long-term fee-based revenue growth.
Ares Management’s Price Performance & Zacks Rank
Over the past three months, shares of Ares Management have gained 3.3% against the industry’s decline of 6.7%.
Image Source: Zacks Investment Research
Currently, ARES carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.