Ares Management (ARES) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly fundraising of over $30 billion, with year-to-date capital raised surpassing $77 billion and trailing 12-month fundraising up 24% year-over-year to $105 billion.

• Net income for Q3 2025 ranged from $288.9 million to $540.4 million, with basic and diluted EPS of $1.15 and after-tax realized income per share up to $1.19.

• Assets under management reached $595.7 billion as of September 30, 2025, up 28% year-over-year, with fee-paying AUM at $368 billion.

• Declared a quarterly dividend of $1.12 per share for Class A and non-voting common stock, with additional preferred stock dividends and a dividend reinvestment program.

• Completed the $3.9 billion acquisition of GCP International, expanding real estate and digital infrastructure capabilities.

Financial highlights

• Management fees grew 28%-29% year-over-year to $971.8 million for Q3 2025, with fee-related earnings (FRE) up 39% to $471.2 million.

• Realized income for Q3 2025 was $455.5 million, up 34%-35% year-over-year; after-tax realized income per share reached $1.19.

• Total revenues for Q3 2025 grew 47% to $1.66 billion, driven by higher management fees, carried interest, and incentive fees.

• Available capital stood at $149.5-$150 billion at the end of Q3 2025.

• Fee Related Earnings margin was 41.4% for Q3 2025.

Outlook and guidance

• Expect to meaningfully exceed last year’s $93 billion fundraising record, with continued strong demand for institutional and wealth products.

• Management anticipates continued growth in management fees and AUM, supported by fundraising, deployment, and GCP integration.

• Significant AUM not yet paying fees ($81-$103 billion) could generate up to $778.7 million in incremental annual management fees.

• FRE margin expansion expected in 2026 as GCP integration synergies are realized.

• Q4 expected to be the second highest quarter for wealth fundraising, with strong international demand.