Ares Management Discloses New Investment Stakes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy ARES?
Source: Newsfilter
- Portfolio Expansion: Ares Management disclosed new investments in its quarterly 13-F filing, including a $53.3 million stake in medical device manufacturer Integer Holdings, indicating a strategic move into the healthcare sector.
- First-Time Investments: The firm also made initial investments in business development companies like BlackRock TCP Capital and Carlyle Secured Lending, further diversifying its portfolio and strengthening its influence in the small and mid-sized lending market.
- Increased Holdings: Ares boosted its stakes in 17 other holdings, including Golub Capital BDC and Blue Owl Technology Finance, demonstrating ongoing confidence in the BDC sector despite pressures on lending standards.
- Asset Liquidation: The only sale recorded by Ares was the liquidation of its stake in New Mountain Finance, which sold a $477 million asset portfolio in February, reflecting Ares's strategy to adjust its investment portfolio in response to market changes.
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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: 121.110
Low
155.00
Averages
191.40
High
223.00
Current: 121.110
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.
Scion and Ares Form Joint Venture for Student Housing
- Significant Investment: Scion and Ares have formed a joint venture focusing on high-quality off-campus student housing in the U.S., acquiring a 12-property portfolio valued at approximately $910 million, which provides 7,578 beds, demonstrating strong confidence in the student housing market.
- Market Leadership: Scion's portfolio now exceeds 105,000 beds, making it the world's largest owner of off-campus student housing, reflecting the company's dominant position and ongoing expansion capabilities in the rapidly growing student housing sector.
- Capital Deployment Success: Since 2016, Scion has deployed over $10.2 billion in capital, including $3.4 billion in the past 24 months, indicating its active role and significant market influence in the sector.
- Industry Consolidation Trend: This transaction not only marks the first collaboration between Scion and Ares but also reflects broader structural changes in the student housing market, attracting more institutional capital into this demand-driven real estate sector.
See More
Ares Management Forms JV with Scion Group for Student Housing Investment
- Portfolio Acquisition: Ares Management's real estate fund has formed a joint venture with The Scion Group to invest in off-campus student housing, successfully acquiring a 12-property portfolio with 7,578 beds for approximately $910 million, highlighting the strong demand characteristics in this sector.
- Sustained Market Demand: Scion Group CEO Bronstein stated that the student housing market continues to demonstrate resilient demand, and the formation of the joint venture not only expands Ares's investment platform but also underscores its ability to execute on complex investment opportunities.
- Enhanced Execution Capability: Andrew Holm, head of U.S. diversified equity for Ares Real Estate, emphasized that this transaction showcases Ares's capability to execute large, complex opportunities, leveraging its scale, sector experience, and operational relationships to strengthen its market position.
- Optimistic Industry Outlook: With the growing demand for off-campus student housing, the collaboration between Ares and Scion is expected to yield long-term revenue growth opportunities for both parties, reflecting confidence in this niche market.
See More
Ares Management Discloses New Investment Stakes
- Portfolio Expansion: Ares Management disclosed new investments in its quarterly 13-F filing, including a $53.3 million stake in medical device manufacturer Integer Holdings, indicating a strategic move into the healthcare sector.
- First-Time Investments: The firm also made initial investments in business development companies like BlackRock TCP Capital and Carlyle Secured Lending, further diversifying its portfolio and strengthening its influence in the small and mid-sized lending market.
- Increased Holdings: Ares boosted its stakes in 17 other holdings, including Golub Capital BDC and Blue Owl Technology Finance, demonstrating ongoing confidence in the BDC sector despite pressures on lending standards.
- Asset Liquidation: The only sale recorded by Ares was the liquidation of its stake in New Mountain Finance, which sold a $477 million asset portfolio in February, reflecting Ares's strategy to adjust its investment portfolio in response to market changes.
See More
Wealthy Investors Cut Private Equity Investments Amid Concerns
- Investment Reduction Trend: In the first quarter, wealthy individuals significantly reduced their investments in private equity funds, indicating growing concerns about valuations and credit quality across the private capital sector, with KKR and Ares attracting less capital to their evergreen vehicles compared to last year, reflecting a lack of market confidence.
- Private Credit Decline: Private credit experienced the steepest fundraising decline, dropping 30% from both the previous quarter and the same period last year, closely tied to Blue Owl's decision to halt redemptions at its inaugural retail fund, leading to an overall decline in alternative investment fundraising to $180 billion for 2026.
- Increased Redemption Requests: Fears about AI's impact on software companies have driven mounting investor redemption requests from private credit vehicles, with EQT executives stating that without the private credit issues, the firm would have raised over €1 billion more in the quarter, highlighting the sector's vulnerabilities.
- Infrastructure and Real Estate Growth: Despite the overall downward trend, quarterly inflows to evergreen property funds rose over 25% year-on-year, indicating that certain asset classes remain favored by investors in uncertain market conditions, potentially providing support for future investment opportunities.
See More
Ares Management Corporation Q1 2026 Earnings Call Highlights
- AUM Growth: Ares Management's assets under management (AUM) increased by 18% year-over-year to $644 billion, with fee-paying AUM rising 19% to $400 billion, indicating strong market performance and enhanced client trust.
- Record Fundraising: The company achieved a record $30 billion in gross capital raised in Q1 2026, a 46% increase compared to the previous year, reflecting strong demand for its products and setting the stage for future investment opportunities.
- Management Fees Milestone: Quarterly management fees exceeded $1 billion for the first time, marking a 22% year-over-year increase, which signifies a substantial improvement in profitability and operational efficiency, thereby strengthening its competitive position in the market.
- Optimistic Outlook: Management anticipates a compound annual growth rate of 16% to 20% for 2026, particularly in free cash flow and dividends, demonstrating confidence in achieving financial objectives and capitalizing on market opportunities.
See More
Ares Management Reports Record $30 Billion Fundraising Amid Private Credit Stability
- Record Fundraising: Ares Management achieved approximately $30 billion in fundraising during the first quarter, demonstrating robust performance in the private credit sector, which further solidifies its stable base among institutional clients and enhances market confidence.
- Credit Business Growth: Ares Capital Corp (ARCC) indicated in its quarterly results that it expects limited impact from industry liquidity pressures, particularly regarding loans to software companies, showcasing its effective risk management capabilities.
- Market Dynamics Shift: While Blackstone's BCRED faces weaker investor demand and redemption pressures, and AIG has reduced its private credit activities due to market conditions, Ares's performance has attracted investor attention, driving its stock price up sharply.
- Accelerated M&A Activity: Lazard announced an agreement to acquire private equity advisory firm Campbell Lutyens for approximately $575 million, signaling the rapid expansion of the secondary market for private credit and equity assets, further advancing the private capital advisory business.
See More
Scion and Ares Form Joint Venture for Student Housing
- Significant Investment: Scion and Ares have formed a joint venture focusing on high-quality off-campus student housing in the U.S., acquiring a 12-property portfolio valued at approximately $910 million, which provides 7,578 beds, demonstrating strong confidence in the student housing market.
- Market Leadership: Scion's portfolio now exceeds 105,000 beds, making it the world's largest owner of off-campus student housing, reflecting the company's dominant position and ongoing expansion capabilities in the rapidly growing student housing sector.
- Capital Deployment Success: Since 2016, Scion has deployed over $10.2 billion in capital, including $3.4 billion in the past 24 months, indicating its active role and significant market influence in the sector.
- Industry Consolidation Trend: This transaction not only marks the first collaboration between Scion and Ares but also reflects broader structural changes in the student housing market, attracting more institutional capital into this demand-driven real estate sector.
See More
Ares Management Forms JV with Scion Group for Student Housing Investment
- Portfolio Acquisition: Ares Management's real estate fund has formed a joint venture with The Scion Group to invest in off-campus student housing, successfully acquiring a 12-property portfolio with 7,578 beds for approximately $910 million, highlighting the strong demand characteristics in this sector.
- Sustained Market Demand: Scion Group CEO Bronstein stated that the student housing market continues to demonstrate resilient demand, and the formation of the joint venture not only expands Ares's investment platform but also underscores its ability to execute on complex investment opportunities.
- Enhanced Execution Capability: Andrew Holm, head of U.S. diversified equity for Ares Real Estate, emphasized that this transaction showcases Ares's capability to execute large, complex opportunities, leveraging its scale, sector experience, and operational relationships to strengthen its market position.
- Optimistic Industry Outlook: With the growing demand for off-campus student housing, the collaboration between Ares and Scion is expected to yield long-term revenue growth opportunities for both parties, reflecting confidence in this niche market.
See More
Ares Management Discloses New Investment Stakes
- Portfolio Expansion: Ares Management disclosed new investments in its quarterly 13-F filing, including a $53.3 million stake in medical device manufacturer Integer Holdings, indicating a strategic move into the healthcare sector.
- First-Time Investments: The firm also made initial investments in business development companies like BlackRock TCP Capital and Carlyle Secured Lending, further diversifying its portfolio and strengthening its influence in the small and mid-sized lending market.
- Increased Holdings: Ares boosted its stakes in 17 other holdings, including Golub Capital BDC and Blue Owl Technology Finance, demonstrating ongoing confidence in the BDC sector despite pressures on lending standards.
- Asset Liquidation: The only sale recorded by Ares was the liquidation of its stake in New Mountain Finance, which sold a $477 million asset portfolio in February, reflecting Ares's strategy to adjust its investment portfolio in response to market changes.
See More
Wealthy Investors Cut Private Equity Investments Amid Concerns
- Investment Reduction Trend: In the first quarter, wealthy individuals significantly reduced their investments in private equity funds, indicating growing concerns about valuations and credit quality across the private capital sector, with KKR and Ares attracting less capital to their evergreen vehicles compared to last year, reflecting a lack of market confidence.
- Private Credit Decline: Private credit experienced the steepest fundraising decline, dropping 30% from both the previous quarter and the same period last year, closely tied to Blue Owl's decision to halt redemptions at its inaugural retail fund, leading to an overall decline in alternative investment fundraising to $180 billion for 2026.
- Increased Redemption Requests: Fears about AI's impact on software companies have driven mounting investor redemption requests from private credit vehicles, with EQT executives stating that without the private credit issues, the firm would have raised over €1 billion more in the quarter, highlighting the sector's vulnerabilities.
- Infrastructure and Real Estate Growth: Despite the overall downward trend, quarterly inflows to evergreen property funds rose over 25% year-on-year, indicating that certain asset classes remain favored by investors in uncertain market conditions, potentially providing support for future investment opportunities.
See More
Ares Management Corporation Q1 2026 Earnings Call Highlights
- AUM Growth: Ares Management's assets under management (AUM) increased by 18% year-over-year to $644 billion, with fee-paying AUM rising 19% to $400 billion, indicating strong market performance and enhanced client trust.
- Record Fundraising: The company achieved a record $30 billion in gross capital raised in Q1 2026, a 46% increase compared to the previous year, reflecting strong demand for its products and setting the stage for future investment opportunities.
- Management Fees Milestone: Quarterly management fees exceeded $1 billion for the first time, marking a 22% year-over-year increase, which signifies a substantial improvement in profitability and operational efficiency, thereby strengthening its competitive position in the market.
- Optimistic Outlook: Management anticipates a compound annual growth rate of 16% to 20% for 2026, particularly in free cash flow and dividends, demonstrating confidence in achieving financial objectives and capitalizing on market opportunities.
See More
Ares Management Reports Record $30 Billion Fundraising Amid Private Credit Stability
- Record Fundraising: Ares Management achieved approximately $30 billion in fundraising during the first quarter, demonstrating robust performance in the private credit sector, which further solidifies its stable base among institutional clients and enhances market confidence.
- Credit Business Growth: Ares Capital Corp (ARCC) indicated in its quarterly results that it expects limited impact from industry liquidity pressures, particularly regarding loans to software companies, showcasing its effective risk management capabilities.
- Market Dynamics Shift: While Blackstone's BCRED faces weaker investor demand and redemption pressures, and AIG has reduced its private credit activities due to market conditions, Ares's performance has attracted investor attention, driving its stock price up sharply.
- Accelerated M&A Activity: Lazard announced an agreement to acquire private equity advisory firm Campbell Lutyens for approximately $575 million, signaling the rapid expansion of the secondary market for private credit and equity assets, further advancing the private capital advisory business.
See More
