Ares Management Corp - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did ARES Beat Earnings? Q3 2025 Results
Ares Management delivered a standout third quarter for 2025, beating on both the top and bottom lines as record fundraising and surging assets under management drove results well ahead of expectations. Adjusted EPS of $1.19 topped the $1.14 consensus by 3.98%, while revenue of $1.66 billion exceeded estimates by 54.73% and grew 46.7% year-over-year, reflecting the firm's expanding scale across credit, real assets, and secondaries. The single biggest driver was a record $30.90 billion in quarterly fundraising, which lifted total AUM 28% year-over-year to $595.70 billion and pushed Fee Related Earnings up 39% to $471.21 million. The GCP International acquisition meaningfully amplified Real Assets results, with that segment's management fees more than doubling year-over-year. Looking ahead, CEO Michael Arougheti signaled that Ares expects to meaningfully exceed its prior annual fundraising record of $93.00 billion in 2025, and with $81.00 billion in AUM not yet paying fees representing roughly $778.70 million in potential incremental annual management fees, the earnings runway remains substantial.
- 28% year-over-year increase in AUM, FPAUM and management fees
- Record quarter of fundraising at $30.9 billion with net inflows of $28.5 billion
- Capital deployment of $41.7 billion, up from $29.6 billion in Q3-24
- Fee related performance revenues increased 93% year-over-year to $85.4 million
- GCP International acquisition drove significant Real Assets Group growth
- Perpetual capital AUM increased 53% year-over-year to $190.3 billion
- 87% of AUM in perpetual capital or long-dated funds; 94% of management fees from those sources
- Credit Group gross capital deployment of $33.1 billion driven by U.S. and European direct lending
“We reported an outstanding third quarter, highlighted by strong financial results, quality fund performance, improving credit quality, a record quarter of fundraising and increased investment activity across the platform.”
Ares Management CEO, on the earnings call
Forward Guidance & Outlook
Ares expects to meaningfully exceed its previous annual fundraising record of $93 billion in 2025, driven by growing breadth of investor demand across investment strategies and distribution channels. Management noted an improving tone in markets and a healthy investment pipeline, positioning the firm to generate future earnings growth as it deploys significant available capital of $150 billion. AUM not yet paying fees available for future deployment of $81 billion could generate approximately $778.7 million in potential incremental annual management fees upon deployment.
ARES YoY Financials
ARES Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.