Ares Management Corporation
- Open
- 141.66
- Day high
- 144.13
- Day low
- 141.29
- Prev close
- 142.53
- Volume
- 1.8M
- Mkt cap
- $32.6B
- P/E (TTM)
- 62.5
- EPS (TTM)
- $2.29
- P/B
- 8.2
- P/S
- 5.1
- Yield
- 3.45%
- Per share
- $4.94
Ares Management Corporation (ARES) is a Financial Services company listed on NYSE. The stock is down 21% over the past year. Drillr has 3 published research articles covering ARES.
Ares Management Corporation (ARES) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARES earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 31, 2026 | $1.28 | $1.29 | +0.8% | $1.4B | +15.6% |
| May 1, 2026 | $1.32 | $1.24 | -6.1% | $1.3B | +0.9% |
| Feb 5, 2026 | $1.71 | $1.45 | -15.2% | $1.8B | +49.9% |
| Aug 1, 2025 | $1.08 | $1.03 | -4.6% | $1.4B | +33.3% |
| Feb 5, 2025 | $1.35 | $1.23 | -8.9% | $1.6B | +45.5% |
| Nov 1, 2024 | $0.94 | $0.95 | +1.2% | $1.4B | +90.5% |
| Aug 2, 2024 | $0.98 | $0.99 | +0.9% | $789M | +1.3% |
| May 2, 2024 | $0.92 | $0.80 | -13.0% | $707M | -5.6% |
| Feb 8, 2024 | $1.10 | $1.21 | +10.0% | $1.1B | +21.9% |
| Aug 1, 2023 | $0.85 | $0.90 | +5.9% | $1.1B | +51.3% |
| Apr 28, 2023 | $0.82 | $0.71 | -13.4% | $813M | +16.5% |
| Feb 9, 2023 | $1.07 | $1.21 | +13.1% | $938M | +5.4% |
ARES insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 3, 2026 | Joubert Paul G.director | Grant | 1,728 | — |
| Aug 3, 2026 | BUSH ANTOINETTE COOKdirector | Grant | 1,728 | — |
| Aug 3, 2026 | Olian Judy D.director | Grant | 1,728 | — |
| Aug 3, 2026 | Naughton Eileendirector | Grant | 1,728 | — |
| Aug 3, 2026 | BHUTANI ASHISHdirector | Grant | 1,728 | — |
| Aug 3, 2026 | Lynton Michaeldirector | Grant | 1,728 | — |
| Jul 2, 2026 | Arougheti Michael Jdirector, officer: Co-Founder and CEO | Tax | 82,957 | $111.31 |
| Feb 24, 2026 | Olian Judy D.director | Buy | 480 | $124.43 |
| Feb 10, 2026 | BHUTANI ASHISHdirector | Buy | 10,000 | $126.61 |
| Feb 6, 2026 | Sagati Aghili Naseemofficer: General Counsel | Sell | 1,200 | $137.72 |
| Feb 6, 2026 | Sagati Aghili Naseemofficer: General Counsel | Sell | 100 | $131.61 |
| Feb 6, 2026 | Sagati Aghili Naseemofficer: General Counsel | Sell | 1,110 | $135.28 |
| Feb 6, 2026 | Sagati Aghili Naseemofficer: General Counsel | Sell | 300 | $126.68 |
| Feb 6, 2026 | Sagati Aghili Naseemofficer: General Counsel | Sell | 611 | $136.74 |
| Feb 3, 2026 | Arougheti Michael Jdirector, officer: Co-Founder and CEO | Grant | 200,000 | — |
Source: ARES SEC Form 4 filings, latest Aug 3, 2026. For informational purposes only — not investment advice.
See the full ARES insider & 13F page →ARES research & analysis
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Ares Management Corporation company profile
Overview
Ares Management Corporation (NYSE:ARES) is a leading alternative asset management firm founded in 1997 and headquartered in Los Angeles, California. The company has grown from a startup to become one of the largest alternative investment managers globally, with operations spanning the United States, Europe, and Asia. Ares went public in 2014 and has since established itself as a dominant player in the private credit market, while also maintaining significant presence in private equity, real estate, and other alternative investment strategies. The firm manages over $546 billion in assets under management as of Q1 2025, serving institutional investors, high-net-worth individuals, and retail investors through various investment vehicles and strategies.
Business
Ares Management operates as an alternative asset manager, which means it manages investment funds that invest in assets outside of traditional stocks and bonds. The alternative asset management industry focuses on private markets, including private credit (loans to companies not publicly traded), private equity (ownership stakes in private companies), and real estate investments. These investments typically offer higher potential returns but require longer investment periods and are less liquid than public market investments. The company operates through four main business segments: 1. Tradable Credit Group (~45-50% of AUM): This segment manages various investment funds that focus on publicly traded and liquid credit instruments. These include corporate bonds, leveraged loans, and other debt securities that can be bought and sold in public markets. The group serves both institutional investors through separate accounts and retail investors through publicly traded vehicles. 2. Direct Lending Group (~35-40% of AUM): This is Ares' largest and most distinctive business, providing financing solutions directly to small and medium-sized companies. Rather than these companies borrowing from banks, Ares provides loans directly, typically at higher interest rates. This segment has benefited significantly from banks reducing their lending to middle-market companies following regulatory changes after the 2008 financial crisis. 3. Private Equity Group (~10-15% of AUM): This segment focuses on acquiring majority or significant ownership stakes in under-capitalized companies, improving their operations, and eventually selling them for a profit. Private equity investments typically have holding periods of 3-7 years. 4. Real Estate Group (~5-10% of AUM): This segment invests in commercial real estate development, repositioning of existing properties, and real estate debt. The focus is on control or majority-control investments, as well as providing financing to middle-market real estate owners and operators. The company has been particularly successful in private credit, where it has built one of the industry's largest platforms with over $280 billion in credit-related assets under management.
Revenue model
Ares generates revenue through a traditional alternative asset management fee structure consisting of management fees and performance fees. Management fees are typically charged as an annual percentage (usually 1-2%) of assets under management or committed capital, providing steady, recurring revenue regardless of investment performance. Performance fees, also called "carried interest," are earned when investments generate returns above predetermined hurdle rates, typically representing 15-20% of profits above the hurdle. The company's primary revenue streams include: 1. Management Fees (approximately 60-70% of total revenue): These provide stable, recurring income based on the size of assets under management. In Q1 2025, management fees reached $818 million, representing an 18% year-over-year increase. 2. Performance Fees (approximately 20-30% of revenue): These are more volatile and depend on investment performance. The company earned over $40 million in net realized performance income in Q1 2025. 3. Fee-Related Performance Revenues (approximately 5-10% of revenue): These come from certain fund structures that provide performance-based compensation tied to management fee arrangements. Ares' customers are primarily institutional investors including pension funds, insurance companies, sovereign wealth funds, and endowments, as well as high-net-worth individuals through wealth management channels. The company has been expanding its retail distribution, raising over $10 billion through wealth management channels in 2024. Several factors influence the company's profitability margins. Positive margin drivers include: the scalable nature of the business model where additional assets can be managed with relatively modest incremental costs; the shift toward higher-fee strategies like opportunistic credit and alternative credit; and the growing wealth management channel which, while initially margin-dilutive due to distribution costs, becomes more profitable as assets mature. Negative margin pressures include: increased competition in private credit leading to fee compression; higher compensation costs as the firm grows and competes for talent; and the costs associated with expanding distribution channels, particularly in wealth management where upfront distribution costs can be significant before management fees begin accruing.
Competitive moat
Ares possesses a moderately strong competitive moat built primarily around scale advantages, relationship networks, and specialized expertise, though the moat faces increasing pressure from competition. The company's primary competitive advantages include its massive scale in private credit markets, which provides significant origination capabilities and allows it to offer comprehensive financing solutions that smaller competitors cannot match. With over $280 billion in credit assets under management, Ares can participate in larger transactions and maintain relationships with major private equity sponsors who prefer working with established, well-capitalized partners. The firm's relationship-based origination network represents another key moat element. Ares has built deep, long-standing relationships with private equity sponsors, investment banks, and intermediaries who consistently bring deal flow to the firm. These relationships, developed over more than 25 years, create a self-reinforcing cycle where successful execution leads to more deal referrals. Additionally, the company's geographic diversification across the US, Europe, and Asia-Pacific provides access to a broader opportunity set than regional competitors. However, the moat faces meaningful challenges. The private credit industry has attracted significant capital inflows, with numerous well-funded competitors entering the market. Large institutional investors including pension funds and insurance companies are increasingly building internal capabilities or partnering with multiple managers, reducing dependence on any single provider. Traditional banks are also selectively re-entering middle-market lending as regulatory pressures ease, potentially competing away some of the most attractive opportunities. The commoditization risk in certain credit strategies is real, as basic middle-market lending becomes increasingly standardized. However, Ares has been positioning itself in more specialized areas like opportunistic credit, asset-based finance, and alternative credit strategies where relationships and expertise create higher barriers to entry. The company's expanding wealth management distribution and insurance partnerships also provide additional moats through diversified capital sources that are less institutional and more sticky than traditional limited partner relationships.
Risks & safety
Ares demonstrates a strong margin of safety from a balance sheet perspective, though valuation metrics suggest limited upside at current levels. **Liquidity and Solvency:** - Strong cash position of $2.7 billion as of Q4 2024, providing substantial liquidity buffer - Debt-to-equity ratio of 3.71x appears high but is typical for asset managers due to fund-level financing structures - Positive free cash flow of $2.7 billion in 2024, demonstrating strong cash generation capabilities - Current ratio of 0.98x indicates adequate short-term liquidity, though working capital management requires attention **Valuation Metrics:** - Trading at 75.6x trailing P/E ratio, significantly above historical averages and peer multiples - Price-to-book ratio of 9.9x reflects substantial premium to tangible book value - EV/EBITDA of 18.9x suggests full valuation relative to earnings power - Graham number of $30.70 compared to current price of $167 indicates significant overvaluation by traditional value metrics **Other Considerations:** - Fee-related earnings provide more stable valuation base than total earnings, which include volatile performance fees - Asset-light business model reduces capital intensity and provides operational flexibility - Strong growth trajectory in AUM and fee-paying assets supports premium valuation multiples - Exposure to market cycles through performance fees creates earnings volatility risk
Recent development
Over the past few years, Ares has executed several strategic initiatives to diversify its business and expand its market reach. The company has significantly expanded its wealth management distribution, growing from serving primarily institutional clients to raising over $10 billion through wealth channels in 2024. This expansion included launching new retail-focused products and establishing partnerships with over 60 distribution platforms, representing a 50% increase year-over-year. The firm has pursued strategic geographic expansion through acquisitions, including the completion of the GCP International acquisition to strengthen its European presence and the acquisition of Crescent Point to enhance its Asia-Pacific capabilities. These moves support Ares' goal of building a truly global alternative asset management platform. Product innovation has been another key focus, with Ares launching specialized strategies in opportunistic credit, alternative credit, and infrastructure debt. The company raised over $4.6 billion for its third opportunistic credit fund and has been expanding its asset-based finance capabilities, building teams of over 80 professionals focused on bank partnerships and portfolio acquisitions. The company has also strengthened its insurance partnerships, with the Aspida insurance business doubling its AUM to over $14 billion. These partnerships provide a stable source of capital and allow Ares to offer more comprehensive solutions to its investment strategies. Recent leadership changes include the promotion of Kip DeVeer and Blair Jacobs to co-presidents, aimed at expanding management capacity and developing next-generation leadership as the firm continues to scale. The company has also been investing heavily in technology and data analytics to enhance its investment processes and client reporting capabilities.
ARES company profile · for informational purposes only — not investment advice.
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