Ares Management (ARES) investor relations material

Executive summary

• Q3 gross fundraising was $31.0 billion, with $28.6 billion of net inflows; gross capital deployment was $34.8 billion across diversified strategies.

• AUM reached $690.6 billion, up 16% YoY, and fee-paying AUM was $416.4 billion, up 13%.

• More than half of Q3 gross fundraising came from outside Credit; management cited sustained institutional and wealth-channel demand and expected record FY26 fundraising.

Financial highlights

• GAAP management fees were $1,057.1 million; unconsolidated management and other fees were $1,155.5 million. Part I fees were $169 million, up 21%.

• FRE was $524.2 million, up 11% YoY, with a 42.5% margin versus 41.4%; YTD FRE was $1.5 billion, up 19%.

• Realized income was $490.1 million, up 8%; after-tax realized income was $449.6 million, up 6%, or $1.26 per share. Nine-month realized income rose 20% to $1.5 billion.

• GAAP net income attributable to common stockholders was $85.3 million, or $0.21 per diluted share.

• Fee-related performance revenues were $79 million; realized net performance income was $12 million for the quarter.

Outlook and guidance

• Management expected record FY26 fundraising and a strong Q4; YTD results and anticipated higher Q4 deployment positioned 2026 to meet or exceed key financial objectives.

• FY2026 FRE growth was expected within the 16%–20% annualized target; realized income growth within the 20%–25%+ range.

• FY2026 FRE margin expansion was expected slightly above the midpoint of the 0–150 bps range; 2027 margin growth was expected in the top half, supported by catch-up fees.

• FY2026 net realized performance income guidance was $300–325 million, including $160–185 million in Q4; ~90% of Q4 was expected from European waterfall-style funds.

• Q4 gross FRPR was expected at $115–125 million from credit SMAs; record U.S. direct lending pipelines were beginning to convert, supporting stronger deployment and growth into 2027.