Ares Management, one of the biggest names in private credit, reported record fundraising of $36 billion in the second quarter on Friday, as institutions continued allocating to the asset class.
The results place Ares among the strongest fundraisers in alternative assets, as institutional capital shifts to larger, established managers.
Top asset managers have pointed to broad-based demand from institutional investors despite negative headlines around private credit in recent months, helping cushion a slowdown in the wealth channel.
Institutional investors such as pension funds tend to allocate capital with a long-term perspective and are more patient through pockets of volatility.
Ares has broadened its investor base, with the number of direct institutional investors more than tripling since 2019. Bulk of its business is institutional-focused.
"Clients continue to reward us due to our strong and consistent fund performance across our strategies," CEO Michael Arougheti said.
Inflows were led by the credit segment, which drew $23.7 billion during the quarter. The real assets division raised $9.7 billion.
Major fundraising included Ares' flagship asset-based finance fund, which raised $8.5 billion in the quarter.
Assets under management jumped 17% to $671.3 billion, while fee-related earnings rose 20% to $491.1 million from a year ago.
Much of Ares' earnings comes from the fees it earns on assets it manages, providing a more stable and predictable stream of income.
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