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Will ARES' Expanding AUM Balance Aid Long-Term Earnings Growth?
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Key Takeaways
Ares Management posted 43.7% revenue growth in first-quarter 2026 from higher fee revenues.
ARES reported a 26.9% AUM CAGR from 2019-2025, driven by private credit inflows.
Ares Management expects fee-related earnings growth of 16-20% or more over the medium term.
Ares Management Corporation’s (ARES - Free Report) assets under management (“AUM”) balance is steadily rising, driven by higher fee-related revenues, strong fundraising momentum and continued platform expansion. As a global alternative investment manager, Ares Management benefits from growing investor demand for private credit, real assets, secondaries and insurance-linked investment solutions.
As of March 31, 2026, ARES’ total AUM was $644.3 billion, up 18% from the prior-year period. Fee-paying AUM increased 19.2% year over year, while perpetual capital AUM jumped 39.1%. This is important because fee-paying AUM directly supports management fee revenues, while perpetual capital provides a more stable and long-duration earnings base. Over 2019-2025, the company’s AUM recorded a six-year compound annual growth rate (“CAGR”) of 26.9%, reflecting strong capital inflows into private credit strategies, higher fundraising through wealth management channels and increased allocations to insurance-related managed assets.
The company’s organic growth profile also remains encouraging. Revenues witnessed a six-year CAGR of 21.2% through 2025, aided by higher management and performance fees from an expanding asset base. In the first quarter of 2026, revenues rose 43.7% year over year. Management continues to target 16-20% or more annual organic growth in fee-related earnings and more than 20% annual growth in realized income over the medium term, indicating confidence in the scalability of the business.
Strategic acquisitions further strengthened Ares Management’s long-term growth prospects. The February 2026 acquisition of BlueCove expanded its systematic credit capabilities, while the 2025 GCP International deal enhanced its real assets and digital infrastructure platform. These transactions broaden ARES’ product offerings and improve its ability to capture global investor demand.
Current concerns in the private credit market could moderately slow Ares Management’s near-term AUM growth, as weaker investor sentiment and rising redemption requests weigh on fundraising momentum. Nevertheless, the long-term outlook for private credit remains favorable, with industry AUM expected to grow meaningfully as institutional investors continue shifting toward alternative assets. As a result, sustained AUM growth should remain a key driver of Ares Management’s earnings trajectory. Over the next three to five years, the company’s earnings are projected to grow 27.2%, well above the industry average of 5.9%.
AUM Performance of ARES’ Peers
Apollo Global Management’s (APO - Free Report) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025), with the rising trend continuing in the first quarter of 2026. The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.
The acquisition of Bridge Investment Group Holding nearly doubled Apollo’s real estate AUM to more than $110 billion. By 2029, Apollo Global Management expects its total AUM to reach $1.5 trillion by scaling its private equity business.
Similarly, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its AUM balance. Over the past five years (2020-2025), total AUM and fee-earning AUM have recorded CAGR of 15.6% and 14.4%, respectively. The total AUM rose 12% year over year in the first quarter of 2026.
Blackstone’s robust AUM base supports its long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms.
ARES’ Price Performance & Zacks Rank
The company’s shares have lost 19.5% in the past six months compared with the industry’s 6.5% decline.
View the Zacks #1 Rank List
Image: Bigstock
Will ARES' Expanding AUM Balance Aid Long-Term Earnings Growth?
Key Takeaways
Ares Management Corporation’s (ARES - Free Report) assets under management (“AUM”) balance is steadily rising, driven by higher fee-related revenues, strong fundraising momentum and continued platform expansion. As a global alternative investment manager, Ares Management benefits from growing investor demand for private credit, real assets, secondaries and insurance-linked investment solutions.
As of March 31, 2026, ARES’ total AUM was $644.3 billion, up 18% from the prior-year period. Fee-paying AUM increased 19.2% year over year, while perpetual capital AUM jumped 39.1%. This is important because fee-paying AUM directly supports management fee revenues, while perpetual capital provides a more stable and long-duration earnings base. Over 2019-2025, the company’s AUM recorded a six-year compound annual growth rate (“CAGR”) of 26.9%, reflecting strong capital inflows into private credit strategies, higher fundraising through wealth management channels and increased allocations to insurance-related managed assets.
The company’s organic growth profile also remains encouraging. Revenues witnessed a six-year CAGR of 21.2% through 2025, aided by higher management and performance fees from an expanding asset base. In the first quarter of 2026, revenues rose 43.7% year over year. Management continues to target 16-20% or more annual organic growth in fee-related earnings and more than 20% annual growth in realized income over the medium term, indicating confidence in the scalability of the business.
Strategic acquisitions further strengthened Ares Management’s long-term growth prospects. The February 2026 acquisition of BlueCove expanded its systematic credit capabilities, while the 2025 GCP International deal enhanced its real assets and digital infrastructure platform. These transactions broaden ARES’ product offerings and improve its ability to capture global investor demand.
Current concerns in the private credit market could moderately slow Ares Management’s near-term AUM growth, as weaker investor sentiment and rising redemption requests weigh on fundraising momentum. Nevertheless, the long-term outlook for private credit remains favorable, with industry AUM expected to grow meaningfully as institutional investors continue shifting toward alternative assets. As a result, sustained AUM growth should remain a key driver of Ares Management’s earnings trajectory. Over the next three to five years, the company’s earnings are projected to grow 27.2%, well above the industry average of 5.9%.
AUM Performance of ARES’ Peers
Apollo Global Management’s (APO - Free Report) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025), with the rising trend continuing in the first quarter of 2026. The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.
The acquisition of Bridge Investment Group Holding nearly doubled Apollo’s real estate AUM to more than $110 billion. By 2029, Apollo Global Management expects its total AUM to reach $1.5 trillion by scaling its private equity business.
Similarly, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its AUM balance. Over the past five years (2020-2025), total AUM and fee-earning AUM have recorded CAGR of 15.6% and 14.4%, respectively. The total AUM rose 12% year over year in the first quarter of 2026.
Blackstone’s robust AUM base supports its long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms.
ARES’ Price Performance & Zacks Rank
The company’s shares have lost 19.5% in the past six months compared with the industry’s 6.5% decline.
Image Source: Zacks Investment Research
Currently, Ares Management carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.