Ares Management (ARES) Q4 2025 earnings summary

Executive summary

• Achieved record AUM of $622.5 billion, up 29% year-over-year, driven by strong capital raising, fund commitments, and the GCP International acquisition.

• Raised $113.2 billion in total fundraising for FY-25, including $35.9 billion in Q4; gross deployment reached $146 billion for the year, with Q4 deployment at $46 billion.

• Net income attributable to the corporation was $54.2 million for Q4-25 and $527.4 million for FY-25; EPS was $0.08 and $1.71, respectively.

• Wealth management AUM grew 69% to $66 billion, and secondaries AUM increased 45% to nearly double since 2021.

• Strong fund performance across credit, real assets, and private equity, with robust investor demand from both institutional and individual channels.

Financial highlights

• Management fees hit a record $994 million in Q4 and $3.7 billion for the year, up 27% and 25% respectively year-over-year.

• Fee Related Earnings reached $527.7 million for Q4-25 and $1,775.3 million for FY-25, up 33% and 30% year-over-year; FRE margin for 2025 was 41.7%.

• Net realized performance income reached $169 million for the year, with Q4 at $102 million; realized income for the year exceeded $1.8 billion, up 26%.

• Effective tax rate on realized income was 10.3% for 2025, rising to 13.5% in Q4.

• Dividend for Q1 2026 increased 20% year-over-year to $1.35 per share.

Outlook and guidance

• Expect 2026 fundraising to meet or exceed 2025’s record, with strong demand anticipated from institutional, wealth, and insurance channels.

• FRE margin for 2026 expected at the high end of the 0-150 basis point annual target range.

• Anticipate $350 million in European-style net realized performance income for 2026, more than double 2025 levels.

• Effective tax rate on realized income projected at 11%-15% for 2026.

• Large pipeline of new investments and realizations expected, with improving transaction environment and high visibility into future growth.