Ares Management achieved a record fundraising quarter, securing $36 billion in the second quarter of 2026, with assets under management (AUM) jumping 17% to $671.3 billion. This growth was largely propelled by strong institutional demand for private credit strategies, with the credit segment alone attracting $23.7 billion. Oppenheimer analyst Chris Kotowski praised Ares' "very solid" investment performance and fundraising efforts, highlighting the firm's ability to attract capital in alternative assets.
The firm's fee-related earnings increased by 20% to $491.1 million, and after-tax realized income per share rose to $1.29 compared to $1.03 a year ago. Ares deployed $35.9 billion of capital during the quarter, with U.S. Direct Lending deploying approximately $12.4 billion. Despite slower M&A activity generally keeping a lid on sponsor-backed deals, Ares noted improved sequential deployment and a strong outlook for the second half of 2026, with an investment pipeline reaching a record $170 billion in uninvested capital.
CEO Michael Arougheti stated that institutional investors are increasingly looking to private credit for excess returns due to widened spreads and reduced competition. Ares' fundraising success included its flagship asset-based finance fund, which raised $8.5 billion. The firm's wealth platform also saw a 15% jump in inflows from a year ago, raising roughly $3.9 billion in the quarter. Management expressed confidence in a stronger second-half outlook for capital deployment as sponsor dialogue improves.
