01—Abstract
Summary
Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Ares Management Corporation's (ARES) Q2 2026 filing demonstrates continued growth and operational strength.
Total revenues increased by 6% year-over-year to $1.43 billiona for the quarter and 16% for the six months to $2.83 billion, primarily driven by a significant rise in management fees. This growth was supported by strong fundraising across its credit and real assets segments, leading to a 20% increase in Fee Related Earnings (FRE) for the company. Despite a decline in carried interest allocation due to market conditions and a decrease in certain investment income, the company maintained robust net income growth of 38% year-over-year for the quarter and 62% for the six months.
The company's Assets Under Management (AUM) saw a substantial increase, reaching $671.3 billionb as of June 30, 2026, up from $622.5 billion at the end of 2025. Fee-Paying AUM also grew by 6.6% year-over-year to $409.9 billion. This growth reflects successful deployment of capital and strategic acquisitions, notably the GCP International business.
The company's balance sheet remains solid with significant cash reserves and ample credit facilities. The company also continues to return capital to shareholders, with increased dividends and distributions declared.
02—Key points
Key Highlights
- Total revenues increased by 6% year-over-year to $1.43 billion for the quarter and 16% to $2.83 billion for the six months ended June 30, 2026.
- Fee Related Earnings (FRE) grew by 20% year-over-year to $491.1 million for the quarter and 23% to $955.5 million for the six months.
- Assets Under Management (AUM) increased to $671.3 billion as of June 30, 2026, a 7.8% increase from December 31, 2025.
- Fee-Paying AUM (FPAUM) increased to $409.9 billion as of June 30, 2026, up 6.6% from $384.9 billion at year-end 2025.
- Net income attributable to Ares Management Corporation Class A and non-voting common stockholders increased by 12% for the quarter and 82% for the six months, reflecting strong operational performance.
- The Credit Group showed particularly strong growth, with FRE up 17% and RI up 25% year-over-year for both the quarter and six-month period.
- The company repurchased shares under its stock repurchase program, with $750.0 million authorized through March 2027.
03—Questions
Frequently Asked Questions
What was the total revenue for Ares Management Corporation in Q2 2026?
Total revenues for Ares Management Corporation were $1.43 billion for the quarter ended June 30, 2026.
How did the company's Assets Under Management (AUM) change compared to the previous year?
Ares Management Corporation's AUM grew to $671.3 billion as of June 30, 2026, an increase from $622.5 billion at the end of 2025, reflecting strong fundraising and capital deployment.
What drove the increase in management fees?
Management fees increased due to strong fundraising and capital deployment across various funds, particularly in the Credit and Real Assets Groups. The GCP Acquisition also contributed to higher management fees in the Real Assets Group.
What is the company's overall financial health and liquidity position?
Ares Management Corporation maintains a strong liquidity position with $557.1 million in cash and cash equivalents and $1.385 billion available under its Credit Facility as of June 30, 2026. The company believes its liquidity is sufficient to meet its foreseeable working capital needs, contractual obligations, dividend payments, and strategic initiatives.
How did the company perform in terms of profitability?
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders increased by 12% for the quarter and 82% for the six months ended June 30, 2026, compared to the prior year periods, indicating robust operational performance and profit generation.
04—Continue