Ares Management has reported a “record first quarter” in fundraising for 2026, which reached just under $30bn (£22bn), with the majority driven by its private credit platform despite investor anxiety over the asset class.
In its first-quarter results, the Los Angeles-headquartered firm reported growth in both profits and assets under management (AUM). Total AUM rose to $644.3bn in the first quarter of 2026, an increase of 18 per cent year on year, with $422.6bn attributable to private credit.
Another notable figure in the earnings release was $29.5bn in new commitments during the quarter, of which $20.4bn came from its credit platform. Within this, Ares’ US direct lending strategy raised $9.5bn, European direct lending raised $4bn, and liquid credit strategies contributed $3.4bn.
The firm also reported net inflows of $27.9bn for the quarter and capital deployment of $32.3bn, including $17.2bn from its drawdown funds.
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“We reported strong first quarter results highlighted by continued growth across our key financial metrics, including record first quarter fundraising of $30bn, up more than 45 per cent year over year,” said Michael Arougheti, chief executive officer of Ares. “We are on track for another record year of fundraising as we continue to see broad-based investor demand across our platform.”
Ares posted positive returns across most of its credit strategies, with its alternative credit strategy returning 3.9 per cent for the quarter. However, its corporate private equity strategy returned negative 1.1 per cent.
Arougheti added: “We also continue to see strong fundamental performance across our investment portfolios despite the volatile market environment.”
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Ares’ fundraising strength comes amid concerns over private credit’s exposure to software, with the US wealth market already showing strain. Some managers have told Alternative Credit Investor that they are struggling to raise capital from new entrants over recent months amid recent volatility and investor jitters.
Overall, Ares’ net income rose to $142.6m, up from the prior year, while fee-paying AUM stood at $399.6bn, according to its first quarter results.
“Strong inflows and deployment contributed to AUM and fee-paying AUM year over year growth of 18 per cent and 19 per cent, respectively, which contributed to 25 per cent growth in management fees and improving operating margins,” said Jarrod Phillips, chief financial officer of Ares.
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