Ares Management Corporation · NYSE:ARES
Ares Management — Q4 2025 Earnings Presentation
48 slides from Ares Management's earnings presentation, Feb 5, 2026
Slide 1: Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results
Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results NEW YORK--Ares Management Corporation (NYSE:ARES) today reported its financial results for its fourth quarter and full year ended December 31, 2025. GAAP net income attributable to Ares Management Corporation was $54.2 mil
Slide 2: Conference Call and Webcast Information
Conference Call and Webcast Information Ares will host a conference call on February 5, 2026 at 11:00 a.m. (Eastern Time) to discuss fourth quarter and full year results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link locat
Slide 3: Earnings Presentation Fourth Quarter and Full Year 2025
Earnings Presentation Fourth Quarter and Full Year 2025
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: Fourth Quarter and Full Year 2025 Highlights
Fourth Quarter and Full Year 2025 Highlights • GAAP net income attributable to Ares Management Corporation of $54.2 million and $527.4 million, respectively • GAAP basic and diluted earnings per share of Class A and non-voting common stock of $0.08 and $1.71, respectively • GAAP management fees of $
Slide 6: GAAP Statements of Operations
GAAP Statements of Operations Quarter ended December 31, Year ended December 31, $ in thousands, except share data 2025 2024 2025 2024 Revenues Management fees $991,096 $779,156 $3,680,467 $2,942,126 Carried interest allocation 205,401 196,174 1,153,976 390,180 Incentive fees 206,658 239,118 362,453
Slide 7: RI and Other Measures Financial Summary
RI and Other Measures Financial Summary Quarter ended December 31, Year ended December 31, $ in thousands, except share data (and as otherwise noted) 2025 2024 % Change 2025 2024 % Change Management fees1 $993,655 $780,692 27% $3,682,922 $2,957,430 25% Fee related performance revenues 171,158 161,98
Slide 8: Gross New Capital Commitments
Gross New Capital Commitments1 $ in billions Q4-25 FY 2025 Full Year Primary Activities Credit Group • Capital raised of $18.4 billion by our business development companies (“BDCs”), including $11.5 billion by Ares Strategic Income Fund (“ASIF”) and $5.5 billion by ARCC U.S. Direct Lending $11.0 $36
Slide 9: Assets Under Management
Assets Under Management1 AUM as of December 31, 2025 was $622.5 billion, an increase of 29% from prior year FPAUM as of December 31, 2025 was $384.9 billion, an increase of 32% from prior year • The increase of $138.1 billion was primarily driven by: • The increase of $92.3 billion was primarily dri
Slide 10: Perpetual Capital
Perpetual Capital Perpetual Capital as of December 31, 2025 was $200.0 billion, an increase of 50% from prior year • The increase of $66.4 billion was primarily driven by: – capital raised by our credit BDCs, our open-ended European direct lending fund, APMF and our open-ended infrastructure fund; –
Slide 11: AUM and Management Fees by Type
AUM and Management Fees by Type For the year ended December 31, 2025: • 85% 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% 15% 7% 10% 23% 9% 85% 93% 6% 43% 16
Slide 12: Available Capital and AUM Not Yet Paying Fees
Available Capital and AUM Not Yet Paying Fees Available Capital as of December 31, 2025 was $156.0 billion, an increase of 17% from prior year AUM Not Yet Paying Fees as of December 31, 2025 was $101.0 billion, an increase of 6% from prior year • The increase of $22.9 billion was primarily driven by
Slide 13: AUM Not Yet Paying Fees
AUM Not Yet Paying Fees As of December 31, 2025, AUM Not Yet Paying Fees includes $78.8 billion of AUM available for future deployment1 and $4.3 billion of development assets not yet stabilized2 that could collectively generate approximately $730.4 million in potential incremental annual management
Slide 14: Incentive Eligible AUM and Incentive Generating AUM
Incentive Eligible AUM and Incentive Generating AUM Incentive Eligible AUM as of December 31, 2025 was $329.9 billion, an increase of 18% from prior year • The increase of $50.2 billion was primarily driven by: – commitments to funds across our U.S. and European direct lending, real estate, infrastr
Slide 15: Fee Related Performance Revenues
Fee Related Performance Revenues Fee related performance revenues were $301.3 million during FY-25, generated primarily in our U.S. and European direct lending, alternative credit and private equity secondaries strategies IGAUM by Strategy for Funds Generating Net Fee Related Performance Revenues1 F
Slide 16: Capital Deployment
Capital Deployment Total Gross Capital Deployment during Q4-25 was $45.8 billion compared to $32.1 billion during Q4-24 • Deployment by our drawdown funds was $19.2 billion in Q4-25 compared to $14.0 billion in Q4-24 – Of our drawdown funds, the most active investment strategies were U.S. and Europe
Slide 17: Credit Group
Credit Group1 • Management and other fees increased by 18% and 16% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by deployment within our U.S. and European direct lending and alternative credit strategies and by capital raised by our publicly-traded and perpetual w
Slide 18: Real Assets Group
Real Assets Group1 • Management and other fees increased by 125% and 100% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by fees from funds that we manage as a result of the acquisition of GCP International – Management fees in Q4-25 included catch-up fees2 of $11.4
Slide 19: Private Equity Group
Private Equity Group1 • Management and other fees increased by 24% and 2% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by management fees from ACOF VII which started generating fees in the fourth quarter of 2025 – Management fees in Q4-25 and FY-25 included catch-
Slide 20: Secondaries Group
Secondaries Group1 • Management and other fees increased by 17% and 43% for Q4-25 and FY-25, respectively, compared to Q4-24 and FY-24, primarily driven by higher management fees from capital raised by APMF and by commitments to ASIS III – Management fees in FY-25 included catch-up fees of $25.9 mil
Slide 21: Supplemental Details
Supplemental Details
Slide 22: Financial Details – Segments
Financial Details – Segments Quarter ended December 31, 2025 Real Private Operations Credit Assets Equity Secondaries Management $ in thousands Group Group Group Group Other Group Total1 Management fees $674,811 $194,323 $42,123 $65,696 $16,702 $— $993,655 Fee related performance revenues 129,258 29
Slide 23: Financial Details – Segments
Financial Details – Segments Year ended December 31, 2025 Real Private Operations Credit Assets Equity Secondaries Management $ in thousands Group Group Group Group Other Group Total1 Management fees $2,529,312 $678,355 $139,172 $276,292 $59,791 $— $3,682,922 Fee related performance revenues 210,356
Slide 24: Realized Income per Share Data
Realized Income per Share Data Quarter ended December 31, Year ended December 31, $ in thousands, except share data 2025 2024 2025 2024 After-tax Realized Income Realized Income before taxes $589,061 $476,050 $1,848,308 $1,467,120 Entity level foreign, state and local taxes (18,544) (6,152) (49,841)
Slide 25: Weighted-Average Shares
Weighted-Average Shares Q4-25 Q4-24 Common Shares, Common Shares, Total Shares As Adjusted1 Total Shares As Adjusted1 Weighted-average shares of Class A and non-voting common stock 221,143,277 221,143,277 202,602,918 202,602,918 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 December 31, 2025 Cash and cash equivalents $488.9 Financial Strength Metrics Term debt obligations 2,561.4 Amount drawn on $1,840.0 revolvin
Slide 27: Balance Sheet Investments by Strategy
Balance Sheet Investments by Strategy1 $ in millions As of December 31, 2025 As of December 31, 2024 Credit Liquid Credit $107.3 $139.8 Alternative Credit 1.7 0.8 Opportunistic Credit 19.5 36.8 U.S. Direct Lending 72.1 93.6 European Direct Lending 22.5 40.3 APAC Credit 7.9 10.1 Credit $231.0 $321.4
Slide 28: AUM Rollforward
AUM Rollforward Q4-25 AUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q3-25 Ending Balance $391,454 $132,354 $25,096 $38,375 $8,377 $595,656 Net new par/equity commitments 10,175 6,412 779 3,699 1,963 23,028 Net new debt commitments 8,608 3,905 — 30
Slide 29: FPAUM Rollforward
FPAUM Rollforward Q4-25 FPAUM Rollforward $ in millions Credit Real Assets Private Equity Secondaries Other Businesses Total Q3-25 Ending Balance $240,168 $80,503 $11,848 $28,079 $7,024 $367,622 Commitments 8,305 3,245 564 1,312 1,318 14,744 Deployment/increase in leverage 9,522 2,270 31 352 — 12,17
Slide 30: AUM and FPAUM by Strategy
AUM and FPAUM by Strategy As of December 31, 2025 $ in billions AUM % AUM FPAUM % FPAUM Credit Liquid Credit $53.1 13% $52.0 21% Alternative Credit 48.1 12 35.3 14 Opportunistic Credit 19.8 5 9.8 4 U.S. Direct Lending1 189.6 47 102.3 41 European Direct Lending 84.7 21 45.1 18 APAC Credit 11.5 1 5.3
Slide 31: Credit Group Fund Performance Metrics
Credit Group Fund Performance Metrics The following table presents the performance data for funds that are not drawdown funds as of December 31, 2025: Returns(%) Year of Quarter-to-Date Year-to-Date Since Inception3 ($ 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 our drawdown funds as of December 31, 2025: Capital MoIC IRR(%) Year of Original Capital Invested to Realized Unrealized Total ($ in millions) Primary Investment Strategy Inception AUM Commitments Da
Slide 33: Real Assets Group Fund Performance Metrics
Real Assets Group Fund Performance Metrics The following table presents the performance data for funds that are not drawdown funds as of December 31, 2025: Returns(%) Primary Investment Year of Quarter-to-Date Year-to-Date Since Inception5 ($ in millions) Strategy Inception AUM Gross Net Gross Net G
Slide 34: Private Equity Group Fund Performance Metrics
Private Equity Group Fund Performance Metrics The following table presents the performance data for our drawdown funds as of December 31, 2025: Capital MoIC IRR(%) Primary Investment Year of Original Capital Invested to Realized Unrealized Total ($ in millions) Strategy Inception AUM Commitments Dat
Slide 35: Secondaries Group Fund Performance Metrics
Secondaries Group Fund Performance Metrics The following table presents the performance data for fund that is not drawdown fund as of December 31, 2025: Returns(%) Primary Investment Year of Quarter-to-Date Year-to-Date Since Inception5 ($ in millions) Strategy Inception AUM Gross Net Gross Net Gros
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 Founding Partner of EdgeAdvisors Co-Founder Officer of Ares Executive O
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 Quarter ended December 31, Year ended December 31, $ in thousands 2025 2024 2025 2024 Realized Income and Fee Related Earnings: Income before taxes $206,646 $399,873 $1,286,893 $1,275,352 Adjustments: Amortization of intangibles 51,160
Slide 40: GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd)
GAAP to Non-GAAP Reconciliation – Unconsolidated Reporting Basis (cont'd) Quarter ended December 31, Year ended December 31, $ in thousands 2025 2024 2025 2024 Performance income and net investment income reconciliation: Carried interest allocation $205,401 $196,174 $1,153,976 $390,180 Incentive fee
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) Th
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) 8) Performance is measured by total return, which includes income and appreciation and 14) For the real estate funds (excluding EIP II), USPF IV and EIF V, the gross IRR is an annualized 17) EF IV is made u
Slide 44: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Private Equity Group Secondaries Group 1) The Private Equity Group had ~90 investment and investor relations professionals, ~110 8) The gross IRR is an annualized since inception gross internal rate of return of cash flows to and 1)
Slide 45: Investment Group Highlights and Fund Performance Endnotes (cont'd)
Investment Group Highlights and Fund Performance Endnotes (cont'd) Secondaries Group (cont’d) 9) The net MoIC is calculated at the fund-level and is based on the interests of the fee-paying limited partners and if applicable, excludes those interests attributable to the non-fee paying limited partne
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, perpetual wealth vehicles, 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 investors u