Ares Management (ARES) Q1 2026 earnings summary

Executive summary

• Achieved record fundraising of $30 billion in Q1 2026, up over 45% year-over-year, with AUM rising 18% to $644.3 billion and fee-paying AUM up 19% to $399.6 billion; broad-based investor demand and strong portfolio performance persisted despite market volatility.

• Management fees exceeded $989.5 million, up 25% year-over-year, and fee-related earnings reached $464.4 million, up 26%; after-tax realized income per share was $1.24.

• Net income attributable to common stockholders rose to $117.3 million, with GAAP net income of $142.6 million and EPS of $0.46.

• Declared quarterly dividend of $1.35 per share for Class A and non-voting common stock, and $0.84375 per share for Series B preferred stock.

• Completed BlueCove acquisition, adding $5.5 billion to AUM and resulting in a $37.4 million bargain purchase gain.

Financial highlights

• Total revenues for Q1 2026 were $1.40 billion, a 28% increase from Q1 2025, led by higher management and incentive fees.

• Management fees rose 21%–25% year-over-year to $989.5 million, with 93% derived from perpetual capital or long-dated funds.

• Incentive fees surged to $161.9 million, mainly due to the sale of SDL I assets.

• Realized income totaled $502.7 million, up 24% year-over-year.

• Perpetual capital AUM reached $215.3 billion, up 39% year-over-year.

Outlook and guidance

• Management expects continued strong fundraising and capital deployment, supported by a record investment pipeline and nearly $160 billion of available capital.

• On track to meet 2026 goals: 16%-20% compound annual FRE growth, 20%-25% realized income growth, and 20% dividend growth.

• Embedded growth rate in base management fees is estimated at 22% from the last twelve months.

• Portfolio positioned for fluctuating interest rates, with 83% of debt assets floating rate.

• Confident in achieving the $125 billion 2028 fundraising target.