Ares Management has lifted its growth forecasts for its wealth management division, highlighting growing opportunities in what it sees as a $140tn (£104.9tn) market.
The alternative asset manager has updated its target for year-end 2028 for its Ares Wealth Management Solutions (AWMS) platform to $125bn, up from $100bn announced last year at its investor day.
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It is now targeting management fees of $800m by the end of 2028, up from the previous target of $600m.
The update, included in a recent presentation for the firm’s research analysts, cited generational wealth transfer, the improved regulatory climate, and education and product innovation as key trends that are driving the growth of the market.
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While private markets assets were typically the preserve of ultra-high-net-worth and high-net-worth investors, Ares highlighted new opportunities in the mass affluent segment of the wealth market, such as European Long-Term Investment Funds and interval funds.
AWMS reported $40bn of assets under management last year and is forecasting this to grow to $50bn in 2025.
Private credit fund managers are increasingly targeting the wealth market, diversifying their sources of funding at a time when subdued M&A activity has left many institutional investors unable to allocate fresh capital to alternatives, while democratising access to the asset class.
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