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Ares Management Up 28.8% in 6 Months: How to Approach the Stock Now
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Key Takeaways
Ares Management shares have gained 28.8% in six months, outperforming the industry and the S&P 500.
Ares Management AUM rose 17% to $671.3B, while fee-paying AUM climbed 17% to $409.9B as of June 30, 2026.
ARES' rising expenses and debt, plus a 27.11X P/E, point to near-term pressure and a premium valuation.
Shares of Ares Management (ARES - Free Report) 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%.
Also, the company’s shares have fared better than its peers like Ameriprise Financial, Inc. (AMP - Free Report) and Federated Hermes (FHI - Free Report) . In the past six months, Ameriprise Financial and Federated Hermes shares have gained 21.5% and 12.8%, respectively.
6-Month Price Performance
Image Source: Zacks Investment Research
Does ARES stock have more upside left despite recent price strength? Let us find out by looking at its fundamentals and growth prospects.
Key Factors Supporting Ares Management
Strong AUM growth: Ares Management’s expanding assets under management (AUM) continues to strengthen its recurring fee base and support long-term revenue growth. Total AUM rose 17% year over year to $671.3 billion as of June 30, 2026, while fee-paying AUM increased 17% to $409.9 billion. This builds on a 26.9% AUM compound annual growth rate (CAGR) during 2019-2025 and reflects sustained demand for private credit, growing fundraising through the wealth management channel, and higher insurance-related allocations. With investor interest in private credit, real assets, and secondaries remaining strong, Ares Management’s $170 billion of available capital provides significant capacity for further investment and fundraising. Continued capital deployment and fundraising should support additional growth in AUM and fee-paying AUM.
AUM Growth Trend
Image Source: Ares Management
Organic Expansion: Ares Management’s growing fee-paying asset base continues to provide a strong foundation for organic revenue and earnings growth. Revenues increased at a 21.2% CAGR during 2019-2025, supported by sustained growth in management and performance fees. This momentum continued in the first half of 2026, with the company benefiting from continued expansion across its investment platforms as well as contributions from the GCP International acquisition. Management expects organic fee-related earnings (FRE) to grow 16-20% or more annually and realized income to increase more than 20% annually over the medium term. Continued fundraising, capital deployment and scaling of private credit and real assets strategies should support fee-paying AUM growth and provide further upside to recurring management fee revenues.
Strategic Acquisitions: Ares Management’s strategic acquisitions continue to strengthen its investment capabilities, diversify its product offerings and expand its addressable market. The February 2026 acquisition of BlueCove enhanced Ares Management's systematic fixed-income capabilities, while the GCP International acquisition expanded its real assets and digital infrastructure platform. Earlier acquisitions, including Landmark Partners, Black Creek Group and SSG Capital Holdings, added scale in secondaries, U.S. real estate and Asian private credit.
By adding complementary capabilities and broadening distribution channels, these transactions enhance Ares Management’s ability to capture growing investor demand across alternative asset classes while creating additional opportunities for AUM, fee-paying assets and long-term revenue growth.
Shareholder Returns: Ares Management’s strong earnings and cash generation support continued shareholder returns through dividends and potential share repurchases. The company declared a second-quarter 2026 dividend of $1.35 per share, more than 20% higher than the year-ago level, while management targets long-term annual dividend growth of more than 20%. Additionally, the board renewed its $750-million Class A share repurchase authorization through March 2027.
Although no shares were repurchased in the first half of 2026, the authorization provides flexibility to return excess capital to shareholders while maintaining capacity to fund growth initiatives. The Zacks Consensus Estimate for earnings is pegged at $5.94 per share for 2026 and $7.34 per share for 2027, indicating year-over-year growth of 24.8% and 23.5%, respectively, supporting the company’s ability to sustain and grow shareholder distributions.
Earnings Estimate
Image Source: Zacks Investment Research
Ares Management Near-Term Headwinds
Ares Management’s rising operating expenses and elevated debt levels could weigh on near-term financial performance and financial flexibility. Total expenses increased at a 21.5% CAGR during 2019-2025, with the upward trend continuing in the first half of 2026, driven primarily by higher compensation and benefits, investments in fundraising and platform expansion, and acquisition and integration costs related to GCP International and BlueCove.
At the same time, corporate debt obligations increased to $4.58 billion as of June 30, 2026, from $3.94 billion at the end of 2025, while cash and cash equivalents were $557.1 million. The company also had $1.62 billion drawn on its revolving credit facility, with $885 million remaining available. Continued spending on platform expansion and integration, coupled with elevated debt obligations, could put pressure on near-term profitability and liquidity, particularly if economic conditions deteriorate.
Ares Management Valuation Analysis
In terms of its valuation, Ares Management stock is currently trading at a trailing 12-month price-to-earnings (P/E) ratio of 27.11X, compared with the industry average of 17.64X. This indicates that ARES is currently trading at a premium to its industry.
Price-to-Earnings TTM
Image Source: Zacks Investment Research
Ares Management also trades at a premium compared with Ameriprise Financial and Federated Hermes. At present, Ameriprise Financial and Federated Hermes trade at a trailing 12-month P/E of 13.01X and 11.6X, respectively.
Final Thoughts in ARES
Despite Ares Management’s robust AUM growth, expanding fee-paying asset base and continued strategic progress across its core investment platforms, the stock’s current risk-reward profile appears balanced.
The company continues to benefit from healthy fundraising, strong capital deployment, and solid earnings momentum, which should support long-term revenue growth and shareholder returns. However, elevated operating expenses and acquisition-related costs remain key concerns. In addition, rising corporate debt and greater utilization of its revolving credit facility could constrain financial flexibility.
Continued investments in platform expansion may also weigh on near-term profitability, particularly if AUM growth slows, fundraising conditions soften, or expense growth remains elevated. Moreover, the stock’s premium valuation leaves limited room for execution missteps and warrants a cautious stance at current levels.
Given these factors, prospective investors may prefer to wait for a more attractive entry point.
View the Zacks #1 Rank List
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Ares Management Up 28.8% in 6 Months: How to Approach the Stock Now
Key Takeaways
Shares of Ares Management (ARES - Free Report) 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%.
Also, the company’s shares have fared better than its peers like Ameriprise Financial, Inc. (AMP - Free Report) and Federated Hermes (FHI - Free Report) . In the past six months, Ameriprise Financial and Federated Hermes shares have gained 21.5% and 12.8%, respectively.
6-Month Price Performance
Image Source: Zacks Investment Research
Does ARES stock have more upside left despite recent price strength? Let us find out by looking at its fundamentals and growth prospects.
Key Factors Supporting Ares Management
Strong AUM growth: Ares Management’s expanding assets under management (AUM) continues to strengthen its recurring fee base and support long-term revenue growth. Total AUM rose 17% year over year to $671.3 billion as of June 30, 2026, while fee-paying AUM increased 17% to $409.9 billion. This builds on a 26.9% AUM compound annual growth rate (CAGR) during 2019-2025 and reflects sustained demand for private credit, growing fundraising through the wealth management channel, and higher insurance-related allocations. With investor interest in private credit, real assets, and secondaries remaining strong, Ares Management’s $170 billion of available capital provides significant capacity for further investment and fundraising. Continued capital deployment and fundraising should support additional growth in AUM and fee-paying AUM.
AUM Growth Trend
Image Source: Ares Management
Organic Expansion: Ares Management’s growing fee-paying asset base continues to provide a strong foundation for organic revenue and earnings growth. Revenues increased at a 21.2% CAGR during 2019-2025, supported by sustained growth in management and performance fees. This momentum continued in the first half of 2026, with the company benefiting from continued expansion across its investment platforms as well as contributions from the GCP International acquisition. Management expects organic fee-related earnings (FRE) to grow 16-20% or more annually and realized income to increase more than 20% annually over the medium term. Continued fundraising, capital deployment and scaling of private credit and real assets strategies should support fee-paying AUM growth and provide further upside to recurring management fee revenues.
Strategic Acquisitions: Ares Management’s strategic acquisitions continue to strengthen its investment capabilities, diversify its product offerings and expand its addressable market. The February 2026 acquisition of BlueCove enhanced Ares Management's systematic fixed-income capabilities, while the GCP International acquisition expanded its real assets and digital infrastructure platform. Earlier acquisitions, including Landmark Partners, Black Creek Group and SSG Capital Holdings, added scale in secondaries, U.S. real estate and Asian private credit.
By adding complementary capabilities and broadening distribution channels, these transactions enhance Ares Management’s ability to capture growing investor demand across alternative asset classes while creating additional opportunities for AUM, fee-paying assets and long-term revenue growth.
Shareholder Returns: Ares Management’s strong earnings and cash generation support continued shareholder returns through dividends and potential share repurchases. The company declared a second-quarter 2026 dividend of $1.35 per share, more than 20% higher than the year-ago level, while management targets long-term annual dividend growth of more than 20%. Additionally, the board renewed its $750-million Class A share repurchase authorization through March 2027.
Although no shares were repurchased in the first half of 2026, the authorization provides flexibility to return excess capital to shareholders while maintaining capacity to fund growth initiatives. The Zacks Consensus Estimate for earnings is pegged at $5.94 per share for 2026 and $7.34 per share for 2027, indicating year-over-year growth of 24.8% and 23.5%, respectively, supporting the company’s ability to sustain and grow shareholder distributions.
Earnings Estimate
Image Source: Zacks Investment Research
Ares Management Near-Term Headwinds
Ares Management’s rising operating expenses and elevated debt levels could weigh on near-term financial performance and financial flexibility. Total expenses increased at a 21.5% CAGR during 2019-2025, with the upward trend continuing in the first half of 2026, driven primarily by higher compensation and benefits, investments in fundraising and platform expansion, and acquisition and integration costs related to GCP International and BlueCove.
At the same time, corporate debt obligations increased to $4.58 billion as of June 30, 2026, from $3.94 billion at the end of 2025, while cash and cash equivalents were $557.1 million. The company also had $1.62 billion drawn on its revolving credit facility, with $885 million remaining available. Continued spending on platform expansion and integration, coupled with elevated debt obligations, could put pressure on near-term profitability and liquidity, particularly if economic conditions deteriorate.
Ares Management Valuation Analysis
In terms of its valuation, Ares Management stock is currently trading at a trailing 12-month price-to-earnings (P/E) ratio of 27.11X, compared with the industry average of 17.64X. This indicates that ARES is currently trading at a premium to its industry.
Price-to-Earnings TTM
Image Source: Zacks Investment Research
Ares Management also trades at a premium compared with Ameriprise Financial and Federated Hermes. At present, Ameriprise Financial and Federated Hermes trade at a trailing 12-month P/E of 13.01X and 11.6X, respectively.
Final Thoughts in ARES
Despite Ares Management’s robust AUM growth, expanding fee-paying asset base and continued strategic progress across its core investment platforms, the stock’s current risk-reward profile appears balanced.
The company continues to benefit from healthy fundraising, strong capital deployment, and solid earnings momentum, which should support long-term revenue growth and shareholder returns. However, elevated operating expenses and acquisition-related costs remain key concerns. In addition, rising corporate debt and greater utilization of its revolving credit facility could constrain financial flexibility.
Continued investments in platform expansion may also weigh on near-term profitability, particularly if AUM growth slows, fundraising conditions soften, or expense growth remains elevated. Moreover, the stock’s premium valuation leaves limited room for execution missteps and warrants a cautious stance at current levels.
Given these factors, prospective investors may prefer to wait for a more attractive entry point.
Ares Management currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.