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ARES reported record $46B 4Q25 investment and a record-high January 2026 pipeline.
Ares Management is expanding its digital infrastructure, launching a $2.4B data center fund.
ARES reaffirmed 16-20% FRE growth, more than 20% RI growth and raised its Q1 dividend 20%.
At the 34th Annual Financial Services Conference hosted by Bank of America, Michael Arougheti, co-founder and CEO of Ares Management Corporation (ARES - Free Report) , delivered an optimistic outlook on the firm’s prospects for 2026. Management indicated that deal momentum is accelerating, supported by a record-high transaction pipeline as of January 2026, signaling a rebound in private-market activity following a period marked by valuation mismatches and elevated interest rates.
Ares Management’s optimism is reinforced by its strong capital deployment activity. The company invested approximately $46 billion in the fourth quarter of 2025 alone, its highest quarterly deployment on record, demonstrating both confidence in investment opportunities and the operational scale required to execute efficiently. Arougheti described the firm as “very constructive on the deal environment for 2026,” noting that pipelines accelerated toward year-end and remain diversified across business segments, positioning Ares well for sustained transaction volumes in the months ahead.
From a strategic perspective, Ares Management is prioritizing expansion in digital infrastructure, growth in Japan, deeper vertical integration within real estate, and margin enhancement through technology investment and middle-office consolidation. The firm highlighted continued progress in data center development following its acquisition of GCP, including the successful launch of a $2.4-billion Japanese data center fund and a broader global pipeline that will require additional equity capital. Japan represents a key growth market, where Ares aims to leverage its strong real estate footprint to expand into private credit and infrastructure strategies.
On the financial front, Ares Management reaffirmed its medium-term targets of generating 16% to 20% or more annual organic growth in fee-related earnings (FRE) and more than 20% annual growth in realized income (RI). The company also reiterated its disciplined capital return framework. Private credit remains central to ARES’ growth strategy, with management emphasizing disciplined origination, selective underwriting and the advantages of scale.
How ARES’ Peers Are Positioned
Apollo Global Management (APO - Free Report) is focusing heavily on expanding its retail distribution channels, which has been a key driver of its success. The company has been actively adding distribution partners, particularly through its Athene subsidiary, which continues to hold a strong market share in the retail sector. This expansion is expected to contribute positively to future flows and solidify the company's position in the retail investment market.
Apollo Global Management expects fee-related earnings to witness 20% average annual growth by 2029, while spread-related earnings are projected to witness 10% average annual growth by 2029. Apollo Global Management also anticipates generating $21 billion in capital by 2029.
KKR & Co. (KKR - Free Report) is making efforts to improve and add investment strategies, which will likely continue to support asset under management (AUM) growth in the upcoming period. The company expects to reach $1 trillion in AUM by 2030. The addition of the latest capabilities to capture growing opportunities from infrastructure, real estate, growth and core investing activities is expected to scale KKR & Co.’s core businesses in the long term. Through these efforts, the company is increasing its deal counts meaningfully and growing its revenue base.
KKR & Co.’s management expects fee-related earnings per share of more than $4.50 in 2026, while total operating earnings per share are projected to be more than $7.
ARES’ Price Performance & Zacks Rank
Ares Management has declined 29.3% in the past six months compared with the industry’s fall of 13.6%.
View the Zacks #1 Rank List
Image: Bigstock
ARES Signals Strong 2026 Deal Momentum, Reaffirms Growth Targets
Key Takeaways
At the 34th Annual Financial Services Conference hosted by Bank of America, Michael Arougheti, co-founder and CEO of Ares Management Corporation (ARES - Free Report) , delivered an optimistic outlook on the firm’s prospects for 2026. Management indicated that deal momentum is accelerating, supported by a record-high transaction pipeline as of January 2026, signaling a rebound in private-market activity following a period marked by valuation mismatches and elevated interest rates.
Ares Management’s optimism is reinforced by its strong capital deployment activity. The company invested approximately $46 billion in the fourth quarter of 2025 alone, its highest quarterly deployment on record, demonstrating both confidence in investment opportunities and the operational scale required to execute efficiently. Arougheti described the firm as “very constructive on the deal environment for 2026,” noting that pipelines accelerated toward year-end and remain diversified across business segments, positioning Ares well for sustained transaction volumes in the months ahead.
From a strategic perspective, Ares Management is prioritizing expansion in digital infrastructure, growth in Japan, deeper vertical integration within real estate, and margin enhancement through technology investment and middle-office consolidation. The firm highlighted continued progress in data center development following its acquisition of GCP, including the successful launch of a $2.4-billion Japanese data center fund and a broader global pipeline that will require additional equity capital. Japan represents a key growth market, where Ares aims to leverage its strong real estate footprint to expand into private credit and infrastructure strategies.
On the financial front, Ares Management reaffirmed its medium-term targets of generating 16% to 20% or more annual organic growth in fee-related earnings (FRE) and more than 20% annual growth in realized income (RI). The company also reiterated its disciplined capital return framework. Private credit remains central to ARES’ growth strategy, with management emphasizing disciplined origination, selective underwriting and the advantages of scale.
How ARES’ Peers Are Positioned
Apollo Global Management (APO - Free Report) is focusing heavily on expanding its retail distribution channels, which has been a key driver of its success. The company has been actively adding distribution partners, particularly through its Athene subsidiary, which continues to hold a strong market share in the retail sector. This expansion is expected to contribute positively to future flows and solidify the company's position in the retail investment market.
Apollo Global Management expects fee-related earnings to witness 20% average annual growth by 2029, while spread-related earnings are projected to witness 10% average annual growth by 2029. Apollo Global Management also anticipates generating $21 billion in capital by 2029.
KKR & Co. (KKR - Free Report) is making efforts to improve and add investment strategies, which will likely continue to support asset under management (AUM) growth in the upcoming period. The company expects to reach $1 trillion in AUM by 2030. The addition of the latest capabilities to capture growing opportunities from infrastructure, real estate, growth and core investing activities is expected to scale KKR & Co.’s core businesses in the long term. Through these efforts, the company is increasing its deal counts meaningfully and growing its revenue base.
KKR & Co.’s management expects fee-related earnings per share of more than $4.50 in 2026, while total operating earnings per share are projected to be more than $7.
ARES’ Price Performance & Zacks Rank
Ares Management has declined 29.3% in the past six months compared with the industry’s fall of 13.6%.
Image Source: Zacks Investment Research
ARES currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.