What was the primary driver of the significant increase in total revenues?

The primary driver of the significant increase in total revenues to $4.1 billion for the nine months ended September 30, 2025, was the successful completion of the GCP Acquisition in March 2025, which significantly boosted the Real Assets segment and contributed to overall AUM growth. Additionally, strong performance across credit strategies and increased capital deployment in private funds contributed to higher management and carried interest allocations.

How did the GCP Acquisition impact the company's financial results?

The GCP Acquisition had a substantial positive impact on Ares' financial results. It contributed $46.1 billion to AUM and significantly boosted management and other fees, particularly in the Real Assets segment. However, it also led to increased operating expenses, including compensation and administrative costs related to integration.

What is the trend in Assets Under Management (AUM) and Fee Paying Assets Under Management (FPAUM)?

Ares' AUM grew to $595.7 billion as of September 30, 2025, up from $463.8 billion at the end of 2024, indicating strong fundraising and investment activity. Fee Paying Assets Under Management (FPAUM) also saw a healthy increase, reaching $367.6 billion as of September 30, 2025, up from $286.8 billion at the end of 2024, reflecting the growing base from which management fees are earned.

How did carried interest performance evolve in the current period?

Carried interest allocation increased dramatically by 383% to $948.6 million for the nine months ended September 30, 2025. This significant growth was driven by strong fund performance across the Credit, Real Assets, Private Equity, and Secondaries segments, with several funds generating returns in excess of their hurdle rates.

ARES/ARES-PB 10-Q Quarterly Report Q3 FY2025

Summary

Ares Management Corporation (ARES) reported robust financial performance for the nine months ended September 30, 2025, with total revenues reaching $4.1 billion, a significant 56% increase year-over-year, driven by strong growth across all segments. The GCP Acquisition, completed in March 2025, significantly contributed to this growth, particularly in the Real Assets segment, adding complementary real estate and digital infrastructure capabilities. Net income attributable to Ares Management Corporation also saw a substantial increase of 65% to $473.1 million for the nine-month period. The company's Assets Under Management (AUM) grew to $595.7 billion, up from $463.8 billion at the end of the prior year, reflecting successful fundraising and deployment of capital. Key drivers included strong performance in credit strategies and the strategic integration of the GCP acquisition. Despite increased operating expenses, largely due to the GCP acquisition and associated integration costs and compensation, the company maintained healthy profitability margins.

Financial Highlights

26 data points

Beta

Revenue

$1.66B

Net Income

$288.88M

0.2% Net Margin

Total Assets

$27.03B

Cash & Equivalents

$496.67M

Free Cash Flow

$1.34B

Financial Statements

Beta

Revenue	$1.66B
SG&A Expenses	$246.15M
Operating Expenses	$1.31B
Net Income	$288.88M

Key Highlights

1Total revenues increased by 56% to $4.1 billion for the nine months ended September 30, 2025, compared to the prior year period.
2Net income attributable to Ares Management Corporation grew by 65% to $473.1 million for the nine months ended September 30, 2025.
3Assets Under Management (AUM) increased to $595.7 billion as of September 30, 2025, up from $463.8 billion at the end of 2024.
4The GCP Acquisition, completed in March 2025, significantly contributed to revenue growth, particularly in the Real Assets segment, and added $46.1 billion in AUM.
5Management fees increased by 24% to $2.7 billion for the nine months ended September 30, 2025, reflecting growth in AUM and new business initiatives.
6Carried interest allocation saw a substantial increase of 383% to $948.6 million for the nine months ended September 30, 2025, driven by strong fund performance across various segments.
7Total expenses increased by 77% to $3.5 billion for the nine months ended September 30, 2025, primarily due to increased compensation, the impact of the GCP acquisition, and associated integration costs.

Ares Management Corp Quarterly Report for Q3 Ended Sep 30, 2025

Summary

Financial Highlights

Key Highlights

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