Bill Ackman's Pershing Square Faces 11% Decline, Potentially Impacting IPO Aspirations.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23 hours ago
0mins
Should l Buy ARES?
Source: Barron's
- Investment Performance: Bill Ackman's main investment vehicle has experienced an 11% decline in 2026.
- Future Plans: Ackman is preparing for a potential public offering of his management company and a new closed-end equity fund.
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Analyst Views on ARES
Wall Street analysts forecast ARES stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 113.360
Low
155.00
Averages
191.40
High
223.00
Current: 113.360
Low
155.00
Averages
191.40
High
223.00
About ARES
Ares Management Corporation is an alternative investment manager offering clients complementary primary and secondary investment solutions across various asset classes. Its segments include Credit Group, Private Equity Group, Real Assets Group, Secondaries Group, and Other. The Credit Group segment manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, direct lending and APAC credit. The Private Equity Group segment categorizes its investment strategies as corporate private equity, special opportunities and APAC private equity. The Real Assets Group segment manages comprehensive equity and debt strategies across real estate and infrastructure investments. The Secondaries Group segment invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. It has operations across North America, South America, Europe, Asia Pacific and the Middle East.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Capital Commitment: Ares Management announced the closure of a single-asset continuation vehicle for Convergint Technologies with approximately $850 million in commitments, reflecting strong confidence in the company's ongoing growth and expected to further enhance its market leadership.
- Strategic Investment: In addition to the continuation vehicle, Ares has made a substantial new investment in Convergint, ensuring shared control alongside existing partners LGP and Harvest Partners, thereby strengthening strategic support for the company.
- Market Leadership: Convergint operates over 220 technology centers globally, providing security and life safety solutions, and since Ares' investment in 2018, its Adjusted EBITDA has nearly quadrupled, demonstrating robust organic growth and over 40 acquisitions that solidify its market position.
- Future Outlook: As demand rises for providers with global scale, deep vertical expertise, and strong local leadership, Convergint's ability to navigate complex risk environments for customers will be enhanced, and the confidence from Ares and LGP in its growth trajectory will drive long-term value creation.
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- Investor Redemption Situation: In the last quarter, Blackstone's flagship private credit fund BCRED allowed investors to withdraw 7.9% of their capital, approximately $650 million, leading to an 8.5% drop in the company's stock price on Tuesday morning, indicating heightened market concerns about private credit.
- Loan Quality Defense: Blackstone President Jon Gray highlighted that over 400 borrowers in BCRED achieved 10% EBITDA growth last year, expressing optimism about loan quality despite the bearish market sentiment, which he believes will help stabilize investor confidence.
- Market Reaction Analysis: Although Blackstone's measures to allow investor redemptions aimed to address liquidity needs, this move did not alleviate market tensions but instead sparked broader concerns about the private credit sector, particularly regarding loans in the software industry.
- Fund Performance Data: BCRED has delivered an annualized return of 9.8% since inception for Class I shares, with a Blackstone spokesperson emphasizing the firm's commitment to meeting redemption requests, showcasing confidence in the fund and alignment with investors.
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- Oil Price Surge: Global benchmark Brent crude prices have surged 8% to over $84 per barrel, reaching a new 52-week high, driven by fears of prolonged supply disruptions that could hinder global economic recovery.
- Apple Price Target Raised: Barclays raised its price target on Apple from $239 to $248, adjusting estimates based on expectations for the upcoming foldable and Pro models, although the market's muted response suggests a need to monitor its performance among megacaps.
- MongoDB Shares Plummet: MongoDB shares fell 27% after its flagship database product Atlas reported a slower-than-expected growth rate of 29% in Q4, coupled with disappointing revenue guidance for fiscal 2027, indicating increased competitive pressures.
- Target Shares Rise: Target's stock rose over 4% in premarket trading after the retailer reported better-than-expected earnings for the holiday quarter, with new CEO indicating positive year-over-year sales in February, marking a significant milestone in the company's growth trajectory.
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- Impact on Alternative Asset Managers: Some alternative asset managers are experiencing declines following issues with Blackstone's private credit fund.
- Withdrawal Concerns: The situation has been exacerbated by significant withdrawal requests from investors, raising concerns about liquidity and fund stability.
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- Blackstone's Private Credit Fund: The flagship private credit fund of Blackstone experienced significant redemptions in the first quarter, indicating challenges within the private credit sector.
- Impact on Stock Performance: Following the news of redemptions, Blackstone's stock saw a decline during early trading on Tuesday.
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- Market Resilience: Despite the geopolitical tensions following the U.S. and Israel's attacks on Iran, the S&P 500 managed to close slightly higher on Monday, indicating a relatively muted market response to the conflict and reflecting investor optimism about economic prospects.
- Impact of Energy Independence: Jim Cramer noted that U.S. energy independence has altered how investors react to geopolitical shocks, as the abundance of domestic oil production diminishes the impact of global oil price fluctuations on the U.S. economy.
- Oil Price Volatility: During Monday's session, West Texas Intermediate crude surged over 12.4% at its peak, settling at $71.23 per barrel, although it could not maintain those highs, highlighting the market's sensitivity to oil price movements.
- Market Sentiment: Investors appeared unfazed by the steep declines in private equity firms like KKR, Blackstone, and Apollo, despite concerns in the software sector, suggesting a calm market attitude towards geopolitical turmoil and indicating that economic panic is not necessarily a consequence of such events.
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