Q1 2026 Ares Management Corp Earnings Call Transcript
Key Points
- Ares Management Corp (ARES) reported a significant increase in assets under management (AUM), with a year-over-year growth of 18% to $644 billion.
- The company achieved a record first quarter in fundraising, raising $30 billion of gross capital, marking a 46% increase compared to the previous year's first quarter.
- Management fees increased by 22% year-over-year, contributing to strong top-line growth and profitability.
- Ares Management Corp (ARES) declared a quarterly dividend of $1.35 per share, representing an increase of over 20% compared to the same quarter last year.
- The company has a robust pipeline of new institutional funds, with significant momentum in its largest institutional private credit funds, indicating strong future growth potential.
- The transaction market environment for US direct lending was slower in the first quarter, with a 41% decline in middle market M&A compared to the previous year.
- There is a potential risk of redemption activity in non-traded BDCs, which could impact fee-paying AUM by approximately 1% annually if redemptions persist.
- The geopolitical issues, such as the Iran War, have contributed to market uncertainty, affecting investment activities.
- The company faces challenges in the software sector, with some companies at risk of AI disruption, although Ares Management Corp (ARES) has conducted a detailed review to assess these risks.
- Interest expense increased to $51 million due to normal increased Q1 seasonality, which could impact net income if not managed effectively.
Good morning, everyone. Welcome to the Ares Management Corporation's first quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded on Friday, May 1, 2026.
I would now like to turn the call over to Mr. Greg Mason, Co-Head of Public Markets Investor Relations for Ares Management. Please go ahead, sir.
Good morning, and thank you for joining us today for our first quarter 2026 conference call. I'm joined today by Michael Arougheti, our Chief Executive Officer; and Jarrod Phillips, our Chief Financial Officer. We also have a number of executives with us today who will be available during Q&A.
Before we begin, I want to remind you that comments made during this call contain forward-looking statements and are subject to risks and uncertainties including those identified in our risk factors in our SEC filings.
Our actual results could differ materially, and we undertake no obligation to
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