Ares hauls record $36 billion on private credit fundraising momentum

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. Ares' wealth platform raised roughly **$3.9 billion** in the quarter, a 15% jump from a year ago. July flows were about **$1.5 billion**, Arougheti said. Much of Ares' earnings comes from the fees it earns on assets it manages, providing a more stable and predictable stream of income. Assets under management jumped **17% to $671.3 billion**, while fee-related earnings rose **20% to $491.1 million** from a year ago. Deal activity for private credit firms remained slightly subdued during the quarter, as geopolitical uncertainty kept a lid on sponsor-backed M&A activity. Ares struck a constructive tone about the second half of 2026 as it sits on a record investment pipeline. Arougheti said that current deal discussions point to a stronger second-half outlook for capital deployment as sponsor dialog improves and more companies return to market after delaying transactions earlier in the year. Ares deployed **$35.9 billion** of capital in the quarter, driven by its U.S. and European direct lending, real estate and alternative credit strategies. Among the notable deals in the quarter, Ares led a more than **$1.7 billion** debt financing supporting buyout firm KSL Capital Partners' acquisition of private clubs operator Invited Clubs. "Clients continue to reward us due to our strong and consistent fund performance across our strategies," Arougheti said. Alternative credit posted a gross return of **4.1%** in the quarter, while U.S. senior direct lending returned **2.5%**. Opportunistic credit returned **2.4%**. Oppenheimer analyst Chris Kotowski said that Ares' investment performance and fundraising were "very solid." Fundraising, capital deployment and investment performance are key metrics that Wall Street watches closely as they drive future earnings. Uninvested capital jumped **13% to a record $170 billion** in the quarter. That positions Ares well to execute on its largest-ever forward investment pipeline and support continued earnings growth, finance chief Jarrod Phillips said. Ares starts generating management fees as it deploys uninvested capital, further boosting profit. After-tax realized income per share of Class A common stock was **$1.29** for the quarter ended June 30, compared with **$1.03** a year ago. July 31 (Reuters) - Ares Management, one of the biggest names in private credit, reported a record fundraising of **$36 billion** in the second quarter on Friday, as institutions continued allocating to the asset class. The record fundraising places Ares among the top firms attracting capital in alternative assets, as institutional investors consolidate relationships with larger, established managers. CEO Michael Arougheti told analysts that Ares' fundraising pipeline remains robust and the firm continues to see "very strong" institutional demand for its credit strategies. These investors now see an opportunity to get excess returns from private credit, as weaker flows from the wealth channel are creating less competition, Arougheti said. Institutional investors such as pension funds, which have lower exposure to private credit, 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. The bulk of its business is institutional-focused, which analysts say positions Ares well to gain market share. Ares shares rose about 2%. The stock has slipped 23% this year as of the last close, in line with peers.

Ares hauls record $36 billion on private credit fundraising momentum

Assets under management and fee earnings rise

Deployment ticks up and uninvested capital hits record

Record quarterly fundraising and stronger investor demand

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