Ares Management Raises Record $36 Billion in Q2
Miles Bennett
Alternative-asset giant Ares Management raised a record $36 billion in Q2 and deployed $35.9 billion in the same period — both all-time highs — with credit strategies alone accounting for nearly two-thirds of new capital, underscoring how institutional money is concentrating toward top-tier managers.
Where did the $36 billion come from?
Credit strategies contributed $23.7 billion, nearly two-thirds of total fundraising and the single largest line.
Real assets raised $9.7 billion; within that, the flagship asset-backed finance fund — a vehicle investing in securities packaged from loans, leases, and similar assets — pulled in $8.5 billion, the quarter's biggest single raise.
This means → Ares's growth engine is credit and real assets, not equity. Institutional allocators are voting for strategies with more predictable cash flows.
How profitable is the overall business?
Assets under management (AUM) rose 17% year-on-year to $671.3 billion.
Fee-related earnings (FRE) — profit derived from steady management fees rather than volatile performance fees — grew 20% to $491.1 million.
After-tax realized earnings per Class A share reached $1.29, up from $1.03 a year earlier.
This means → scale is growing, and per-unit profitability is growing faster — management-fee revenue is outpacing the cost of running a larger platform.
What do $170 billion in dry powder signal?
Undeployed capital — industry shorthand "dry powder," money raised but not yet invested — rose 13% quarter-on-quarter to $170 billion, another all-time high.
CFO Jarrod Phillips said this positions the firm to execute its largest-ever forward pipeline.
In plain terms = the ammunition is there, but whether it hits the target depends on deployment speed and deal quality in coming quarters.
What can Ares deploy into amid geopolitical headwinds?
CEO Michael Arougheti acknowledged geopolitical uncertainty has weighed on M&A, yet stressed the firm remains actively deploying. He noted a "meaningful uptick" in the firm-wide investment pipeline.
Marquee deal this quarter: Ares led over $1.7 billion in debt financing for private-equity firm KSL Capital Partners' acquisition of private-club operator Invited Clubs.
This reflects Ares's playbook — rather than buying assets outright, it acts as the capital provider behind the deal, taking lower risk and steadier cash flow.
How are individual strategy returns holding up?
Alternative credit delivered a 4.1% gross return; U.S. senior direct lending returned 2.5%; infrastructure equity posted 9%.
Infrastructure equity leads on return but is far smaller in scale — high returns and massive scale are hard to achieve simultaneously.
Ares's direct institutional investor count has more than doubled since 2019. This means → the trend of institutional capital concentrating toward top managers is still accelerating, and next quarter's fundraising data will be the key test of whether it continues.
Content is for reference only, not financial advice.