Ares Management Corporation · NYSE:ARES
Ares Management — Q3 2026 Earnings Presentation
49 slides from Ares Management's earnings presentation, Oct 29, 2026
Slide 1: Ares Management Corporation Reports Third Quarter 2026 Results
Ares Management Corporation Reports Third Quarter 2026 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its third quarter ended September 30, 2026. GAAP net income attributable to Ares Management Corporation was $85.3 million for the quarter ended Se
Slide 2: Conference Call and Webcast Information
Conference Call and Webcast Information Ares will host a conference call on October 29, 2026 at 9:00 a.m. (Eastern Time) to discuss third quarter results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home p
Slide 3: Earnings Presentation Third Quarter 2026
Earnings Presentation Third Quarter 2026
Slide 4: Important Notice
Important Notice This presentation is prepared for Ares Management Corporation (“Ares”) (NYSE: ARES) for the benefit of its public stockholders. This presentation is solely for information purposes in connection with evaluating the business, operations and financial results of Ares and certain of it
Slide 5: Third Quarter 2026 Highlights
Third Quarter 2026 Highlights • GAAP net income attributable to Ares Management Corporation of $85.3 million • GAAP basic and diluted earnings per share of Class A and non-voting common stock of $0.21 • GAAP management fees of $1,057.1 million Q3-26 • Unconsolidated management fees and other fees of
Slide 6: GAAP Statements of Operations
GAAP Statements of Operations Three months ended September 30, Nine months ended September 30, $ in thousands, except share data 2026 2025 2026 2025 Revenues Management fees $1,057,116 $971,762 $3,064,206 $2,689,371 Carried interest allocation 161,748 464,666 558,293 948,575 Incentive fees 82,299 10
Slide 7: RI and Other Measures Financial Summary
RI and Other Measures Financial Summary Three months ended September 30, Nine months ended September 30, $ in thousands, except share data (and as otherwise noted) 2026 2025 % Change 2026 2025 % Change Management fees1 $1,069,310 $970,606 10% $3,100,897 $2,689,267 15% Fee related performance revenue
Slide 8: Investment Performance Highlights
Investment Performance Highlights Gross Returns (%) Q3-26 Q3-26 LTM Credit1 Alternative Credit 3.6 15.2 Opportunistic Credit 2.5 7.0 U.S. Senior Direct Lending 3.3 12.0 U.S. Junior Direct Lending 2.8 6.8 European Direct Lending 2.2 8.1 APAC Credit 5.0 17.0 Real Assets1 Americas Real Estate Equity 2.
Slide 9: Gross Fundraising
Gross Fundraising1 $ in billions Q3-26 Primary Activities Credit Group • Capital raised of $3.3 billion by our business development companies (“BDCs”) and affiliates, including $2.5 billion by ARCC and its affiliates U.S. Direct Lending $7.2 • Debt and equity commitments to various funds, including
Slide 10: Assets Under Management
Assets Under Management1 AUM as of September 30, 2026 was $690.6 billion, an increase of 16% from prior year FPAUM as of September 30, 2026 was $416.4 billion, an increase of 13% from prior year • The increase of $94.9 billion was primarily driven by: • The increase of $48.8 billion was primarily dr
Slide 11: Perpetual Capital
Perpetual Capital Perpetual Capital as of September 30, 2026 was $233.9 billion, an increase of 23% from prior year • The increase of $43.6 billion was primarily driven by: – capital raised by our credit BDCs, our open-ended infrastructure fund, our open-ended European direct lending fund, our diver
Slide 12: AUM and Management Fees by Type
AUM and Management Fees by Type For the quarter ended September 30, 2026: • 84% of assets under management were perpetual capital or long-dated funds • 93% of management fees were earned from perpetual capital or long-dated funds AUM by Type Management Fees by Type 7% 16% 12% 22% 9% 84% 7% 93% 8% 39
Slide 13: Available Capital and AUM Not Yet Paying Fees
Available Capital and AUM Not Yet Paying Fees Available Capital as of September 30, 2026 was $173.8 billion, an increase of 16% from AUM Not Yet Paying Fees as of September 30, 2026 was $117.1 billion, an increase of 14% from prior year prior year • The increase of $24.3 billion was primarily driven
Slide 14: AUM Not Yet Paying Fees
AUM Not Yet Paying Fees As of September 30, 2026, AUM Not Yet Paying Fees includes $93.8 billion of AUM available for future deployment1 and $2.3 billion of development assets not yet stabilized2 that could collectively generate approximately $826.9 million in potential incremental annual management
Slide 15: Incentive Eligible AUM and Incentive Generating AUM
Incentive Eligible AUM and Incentive Generating AUM Incentive Eligible AUM as of September 30, 2026 was $364.0 billion, an increase of 15% from prior year • The increase of $47.5 billion was primarily driven by commitments to funds across our infrastructure, alternative credit, real estate, private
Slide 16: Capital Deployment
Capital Deployment Total Gross Capital Deployment during Q3-26 was $34.8 billion compared to $41.7 billion during Q3-25 • Deployment by our drawdown funds was $18.4 billion in Q3-26 compared to $20.2 billion in Q3-25 – Of our drawdown funds, the investment strategies with the highest deployment were
Slide 17: Credit Group
Credit Group2 • Management and other fees increased by 10% for Q3-26 compared to Q3-25, primarily driven by higher management fees from deployment within our U.S. and European direct lending and alternative credit strategies and by capital raised by our perpetual wealth vehicles • Fee related perfor
Slide 18: Real Assets Group
Real Assets Group2 • Management fees increased by 29% for Q3-26 compared to Q3-25, primarily from capital raised by our open-ended core infrastructure fund, including Part I Fees, from capital raised by our diversified non-traded REIT and from commitments to US XI – Management fees in Q3-25 included
Slide 19: Secondaries Group
Secondaries Group3 • Management and other fees decreased by 19% for Q3-26 compared to Q3-25, driven by $27.2 million of catch-up fees from ASIS III in Q3-25. Excluding the impact of the catch-up fees, management fees increased primarily from capital raised by APMF • Fee related performance revenues
Slide 20: Private Equity Group
Private Equity Group2 • Management and other fees increased by 3% for Q3-26 compared to Q3-25, primarily driven by management fees from ACOF VII which started generating fees in Q4-25, partially offset by lower fees from ACOF VI due to the step down in fee rate and change in fee base beginning in Q1
Slide 21: Supplemental Details
@ ARES Supplemental Details
Slide 22: Financial Details – Segments
Financial Details – Segments Three months ended September 30, 2026 Real Private Operations Credit Assets Secondaries Equity Management $ in thousands Group Group Group Group Other Group Total1 Management fees $713,941 $229,503 $73,273 $34,000 $18,593 $— $1,069,310 Fee related performance revenues 63
Slide 23: Financial Details – Segments
Financial Details – Segments Nine months ended September 30, 2026 Real Private Operations Credit Assets Secondaries Equity Management $ in thousands Group Group Group Group Other Group Total1 Management fees $2,102,064 $628,719 $215,423 $100,919 $53,772 $— $3,100,897 Fee related performance revenues
Slide 24: Realized Income per Share Data
Realized Income per Share Data Three months ended September 30, Nine months ended September 30, $ in thousands, except share data 2026 2025 2026 2025 After-tax Realized Income Realized Income before taxes $490,142 $455,509 $1,514,379 $1,259,247 Entity level foreign, state and local taxes (17,362) (8
Slide 25: Weighted-Average Shares
Weighted-Average Shares Q3-26 Q3-25 Common Shares, Common Shares, Total Shares As Adjusted1 Total Shares As Adjusted1 Weighted-average shares of Class A and non-voting common stock 227,518,886 227,518,886 219,881,697 219,881,697 Ares Operating Group Units exchangeable into shares of Class A common s
Slide 26: Balance Sheet
Balance Sheet Substantial balance sheet value related to investments primarily in Ares managed vehicles and net accrued performance income $ in millions As of September 30, 2026 Financial Strength Metrics Cash and cash equivalents $597.7 Term debt obligations 2,963.2 Amount drawn on $2,500.0 revolvi
Slide 27: Balance Sheet Investments by Strategy
Balance Sheet Investments by Strategy1 $ in millions As of September 30, 2026 As of December 31, 2025 Credit Liquid Credit2 $35.1 $107.3 Alternative Credit 10.8 1.7 Opportunistic Credit 6.2 19.5 U.S. Direct Lending 35.6 72.1 European Direct Lending 4.9 22.5 APAC Credit 1.1 7.9 Credit $93.7 $231.0 Re
Slide 28: AUM Rollforward
AUM Rollforward Q3-26 AUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q2-26 Ending Balance $440,544 $151,230 $44,179 $24,451 $10,915 $671,319 New par/equity commitments 6,371 7,847 2,579 — 1,967 18,764 New debt commitments 8,832 3,397 32 — — 12,261
Slide 29: FPAUM Rollforward
FPAUM Rollforward Q3-26 FPAUM Rollforward $ in millions Credit Real Assets Secondaries Private Equity Other Businesses Total Q2-26 Ending Balance $266,120 $88,614 $31,466 $13,907 $9,815 $409,922 Commitments 4,474 3,615 792 — 1,316 10,197 Deployment/increase in leverage 8,486 2,182 434 — 158 11,260 C
Slide 30: AUM and FPAUM by Strategy
AUM and FPAUM by Strategy As of September 30, 2026 $ in billions AUM % AUM FPAUM % FPAUM Credit Liquid Credit $62.2 14% $60.3 22% Alternative Credit 62.2 14 41.2 15 Opportunistic Credit 20.8 5 10.3 4 U.S. Direct Lending1 199.7 45 104.3 38 European Direct Lending 88.7 20 49.3 18 APAC Credit 12.6 2 5.
Slide 31: Credit Group Fund Performance Metrics
Credit Group Fund Performance Metrics The following table presents the performance data for certain perpetual capital vehicles as of September 30, 2026: Returns(%) Year of Quarter-to-Date Year-to-Date Since Inception3 $ in millions Primary Investment Strategy Inception AUM Gross Net Gross Net Gross
Slide 32: Credit Group Fund Performance Metrics (cont'd)
Credit Group Fund Performance Metrics (cont'd) The following table presents the performance data for certain drawdown funds as of September 30, 2026: Original Capital MoIC IRR(%) Primary Investment Year of Capital Invested to Realized Unrealized Total $ in millions Strategy Inception AUM Commitments
Slide 33: Real Assets Group Fund Performance Metrics
Real Assets Group Fund Performance Metrics The following table presents the performance data for certain perpetual capital vehicles as of September 30, 2026: Returns(%) Primary Investment Year of Quarter-to-Date Year-to-Date Since Inception4 $ in millions Strategy Inception AUM Gross Net Gross Net G
Slide 34: Secondaries Group Fund Performance Metrics
Secondaries Group Fund Performance Metrics The following table presents the performance data for certain perpetual capital vehicle as of September 30, 2026: Returns(%) Primary Investment Year of Quarter-to-Date Year-to-Date Since Inception4 $ in millions Strategy Inception AUM Gross Net Gross Net Gr
Slide 35: Private Equity Group Fund Performance Metrics
Private Equity Group Fund Performance Metrics The following table presents the performance data for certain drawdown funds as of September 30, 2026: Original Capital MoIC IRR(%) Primary Investment Year of Capital Invested to Realized Unrealized Total $ in millions Strategy Inception AUM Commitments
Slide 36: Corporate Data
Corporate Data Board of Directors Michael Arougheti Ashish Bhutani Antoinette Bush Kipp deVeer Paul G. Joubert David Kaplan Co-Founder and Chief Executive Former Chairman and Chief Former Senior Advisor to News Corp Co-President Former Partner at Co-Founder Officer of Ares Executive Officer of Lazar
Slide 37: Corporate Data (cont'd)
Corporate Data (cont'd) Research Coverage Autonomous Bank of America Merrill Lynch Barclays BMO Capital Markets Deutsche Bank Goldman Sachs Patrick Davitt Craig Siegenthaler Benjamin Budish Brennan Hawken Brian Bedell Alexander Blostein (646) 561-6254 (646) 855-5004 (212) 526-2418 (646) 648-2408 (21
Slide 38: Reconciliation and Disclosures
Reconciliation and Disclosures
Slide 39: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis Three months ended September 30, Nine months ended September 30, $ in thousands 2026 2025 2026 2025 Realized Income and Fee Related Earnings: Income before taxes $241,636 $652,271 $940,499 $1,080,247 Adjustments: Amortization of intang
Slide 40: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd)
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd) Three months ended September 30, Nine months ended September 30, $ in thousands 2026 2025 2026 2025 Performance income and net investment income reconciliation: Carried interest allocation $161,748 $464,666 $558,293 $948,575 I
Slide 41: Investment Group Highlights and Fund Performance Endnotes
Investment Group Highlights and Fund Performance Endnotes The tables for each of the investment group highlights on slides 15-18 are a financial summary only and segment results are shown before the unallocated support costs of the Operations Management Group. Please refer to “Financial Details - Se
Slide 42: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Credit Group (cont’d) Real Assets Group 14) ACE VI is made up of six parallel funds, four denominated in Euros and two denominated in 17) ACE IV is made up of four parallel funds, two denominated in Euros and two denominated in 1) Gr
Slide 43: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Real Assets Group (cont’d) 7) Performance is measured by total return, which includes income and appreciation and 13) The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying 16) IDF V is made up o
Slide 44: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Real Assets Group (cont’d) Secondaries Group 19) IDF IV is made up of U.S. Dollar hedged, U.S. Dollar unhedged, Euro unhedged, Yen hedged 1) Performance is measured by total return, which includes income and appreciation and 8) The n
Slide 45: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Private Equity Group 1) All returns are gross fund-level time-weighted rates of return and include the reinvestment of 7) The gross IRR is an annualized since inception gross internal rate of return of cash flows to and income and ot
Slide 46: Glossary
Glossary Ares Operating Group entities Ares Operating Group entities or an “AOG Entity” refers to, collectively, Ares Holdings L.P. (“Ares Holdings”) and any future entity designated by our board of directors in its sole discretion as an Ares Operating Group entity. Ares Operating Group Unit Ares Op
Slide 47: Glossary (cont'd)
Glossary (cont'd) Fee Related Performance Revenues Fee Related Performance Revenues refers to performance revenues from perpetual capital vehicles that are: (i) measured and eligible to be received on a recurring basis; and (ii) not dependent on realization events from the underlying investments. Ce
Slide 48: Glossary (cont'd)
Glossary (cont'd) Perpetual Capital Perpetual Capital refers to the AUM of publicly-traded funds, perpetual wealth funds, commingled funds and managed accounts that have an indefinite term, are not in liquidation, and for which there is no immediate requirement to return invested capital to investor
Slide 49: Glossary (cont'd)
Glossary (cont'd) Unless otherwise indicated, fund references throughout this presentation include the main fund and related parallel funds, feeder funds and co‑investment vehicles. The following list sets forth the funds referred to throughout this presentation: Acronym Fund Name Acronym Fund Name