One of the largest names in private credit, Ares Management, announced a record first-quarter fundraising of over $30 billion on Friday, indicating that investor interest in the asset class is still high.
In recent months, the multitrillion-dollar private loan sector has been under severe scrutiny due to a deluge of unfavorable headlines.
Despite the industry-wide slowdown in private wealth channel fundraising, analysts anticipate good overall fundraising for Ares due to its institutional strength.
“We continue to see widespread investor demand throughout our platform, and we are on course for another record year of fundraising.”
In a statement, CEO Michael Arougheti stated, “We also continue to see strong fundamental performance across our investment portfolios despite the volatile market environment.”
Ares has expanded its investment base over time; between 2022 and 2025, the number of direct institutional clients increased by almost 50%.
Pension funds and other institutional investors usually make longer-term financial commitments.
In times of turbulence, they also typically exhibit greater patience and predictability than ordinary investors.
“Ares’ results highlight the strength of its franchise, which should drive a positive reaction in the shares given resilient results despite continued negative sentiment around private credit,” Bart Dziarski, analyst at RBC, said.
In mild premarket activity, the company’s shares increased by 2%. So far this year, the stock has gone down 27.4%.
Although Ares invests in a variety of asset types, including infrastructure, real estate, and private equity, the alternative asset manager is most well-known for its significant influence in the credit industry.
The real assets section brought in $6.2 billion during the quarter, while its credit segment generated $20.4 billion.
Compared to a year ago, assets under management increased by 18% to $644.3 billion. By 2028, Ares wanted to have surpassed $750 billion.
Ares increased its assets under management by $5.5 billion in February after completing the acquisition of London-based systematic fixed income manager BlueCove.
PIPELINE FOR RECORD INVESTMENT
According to finance head Jarrod Phillips, Ares has a record investment pipeline and is well-positioned to make opportunistic capital investments and reach its financial goals for 2026.
The company’s uninvested capital at the end of the quarter was $158.1 billion, an increase of 11% over the previous year.
During the quarter, Ares invested $32.3 billion, mostly in real estate, alternative credit methods, and direct lending in the United States and Europe.
Ares begins to collect fees on the AUM as it invests available funds, increasing profit even further.
The fees Ares receives on the assets it manages account for a sizable portion of its revenue, giving it a steadier and more predictable source of income even during volatile market conditions.
In comparison to the same period last year, fee-related earnings increased by 26% to $464.4 million.
In the three months ending March 31, after-tax realized income was $452.4 million, or $1.24 per share, as opposed to $381.4 million, or $1.09 per share, a year ago.
