Ares Management reported that its deal pipeline was at a record high at the end of January, a metric described as a strong predictor of transaction volumes over the next six months. The firm also deployed roughly $46 billion of capital in the fourth quarter, marking its highest quarterly deployment to date.

CEO Michael Arougheti highlighted that Ares has evaluated about 160 AI use cases and is deploying 25 across front-, middle- and back-office functions to improve productivity and risk management. He emphasized that software exposures account for only about 6% of total assets, with a focus on enterprise applications featuring proprietary data moats and mission-critical systems.

Ares plans to expand digital infrastructure, notably through its GCP acquisition and data center projects—including a $2.4 billion Japanese fund and an additional $6 billion equity pipeline. The firm will also build on its Japan real estate foothold, develop a vertically integrated real estate platform, and pursue margin upside via middle-office consolidation and technology investments.

Arougheti cited a constructive interest rate backdrop, pro-business policies, bank de-risking, improving real estate valuations and ample dry powder as catalysts for healthy 2026 transaction volumes. Barring an unforeseen macro event, he expects deal flow to remain robust across the firm’s diversified business lines.