Continuation Vehicles in Focus: The private equity strategy of continuation vehicles (CVs) is under scrutiny following a significant failure involving United Site Services (USS), with major firms like Ares Management and Blackstone facing a potential $1.4 billion loss.
Investment Maneuver: Platinum Equity established a CV in 2021 to transition USS into a new fund, valuing the company at $4 billion and allowing investors to cash out $2.6 billion without a direct sale.
Challenges Faced by USS: USS encountered difficulties due to rising interest rates affecting the construction sector, which is a key customer, and struggled with integrating previous acquisitions, leading to financial strain.
Risks of Continuation Vehicles: The USS situation underscores the risks associated with CVs, which can result in concentrated, illiquid investments for new investors, despite being a popular exit strategy in private equity.
Wall Street analysts forecast ARES stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARES is 189.58 USD with a low forecast of 156.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast ARES stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARES is 189.58 USD with a low forecast of 156.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 163.230
Low
156.00
Averages
189.58
High
215.00
Current: 163.230
Low
156.00
Averages
189.58
High
215.00
Barclays
Overweight
maintain
$218
2025-12-24
Reason
Barclays
Price Target
$218
2025-12-24
maintain
Overweight
Reason
Barclays keeps an Overweight rating on Ares Management with a $218 price target after the Financial Times reported the company is considering acquiring a private equity firm. A hypothetical deal could be modestly dilutive, but could also have more long-term strategic importance, the analyst tells investors in a research note.
Keefe Bruyette
Jade Rahmani
Market Perform -> Outperform
upgrade
2025-12-14
Reason
Keefe Bruyette
Jade Rahmani
Price Target
2025-12-14
upgrade
Market Perform -> Outperform
Reason
Keefe Bruyette analyst Jade Rahmani upgraded Ares Commercial to Outperform from Market Perform with a price target of $5.50, up from $4.75. The firm adjusted ratings in the real estate sector as part of its 2026 outlook. Keefe expects the commercial real estate cycle to enter a "more secure recovery phase with moderate yet still healthy growth" in 2026. This favors commercial real estate services names and "high-quality" commercial mortgage real estate investment trusts, the analyst tells investors in a research note.
Barclays
Overweight
maintain
$187 -> $218
2025-12-12
Reason
Barclays
Price Target
$187 -> $218
2025-12-12
maintain
Overweight
Reason
Barclays raised the firm's price target on Ares Management to $218 from $187 and keeps an Overweight rating on the shares. The firm adjusted targets in the brokers, asset managers and exchanges group as part of its 2026. Market conditions "look constructive" going into 2026, particularly for the alternative asset managers and wealth brokers, the analyst tells investors in a research note. Barclays sees a more mixed outlook for the exchanges and traditional asset managers.
UBS
Neutral
initiated
$201
2025-12-11
Reason
UBS
Price Target
$201
2025-12-11
initiated
Neutral
Reason
UBS assumed coverage of Ares Management with a Neutral rating and $201 price target, noting strong sector fundamentals across 20 U.S. asset managers and brokers despite more mixed views on valuations and consensus expectations.The outlook favors undervalued growth, disciplined capital allocation, and firms positioned for margin expansion, while secular tailwinds support wealth brokers and independent investment banks whose robust earnings growth appears partly priced in, the analyst tells investors in a research note.
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.
