How did Ares perform on its key non-GAAP earnings measures this quarter?

After-tax Realized Income was $425.8 million, or $1.19 per Class A share, up 25% from $0.95 a year earlier. Fee Related Earnings were $471.2 million, up 39%, with a 41.4% margin. Realized Income before taxes was $455.5 million, up 34%. These measures strip out unrealized performance and investment gains, so they show recurring operating strength.

Why is fundraising important, and what did Ares say about the outlook?

Fundraising drives future management fees. Ares raised $30.9 billion in Q3 with $28.5 billion of net inflows and deployed $41.7 billion. CEO Michael Arougheti said the company expects to meaningfully exceed its previous annual fundraising record of $93 billion in 2025, citing demand across strategies and distribution channels. This is a forward-looking expectation and is subject to market and execution risk.

Are the GAAP results and the dividend secure?

GAAP net income is more volatile than Realized Income because it includes unrealized carried interest and investment gains, and it rose sharply partly due to higher performance income. The $1.12 Class A dividend is set against after-tax Realized Income of $1.19 per share, and the company's dividend policy aligns payouts with expected annual Fee Related Earnings after current taxes. Dividends are not guaranteed, and the company says it could reduce or suspend them if FRE cash flows were insufficient over a sustained period.

How much growth potential is already in the platform?

Ares reported $149.5 billion of available capital and $103.0 billion of AUM Not Yet Paying Fees. Management estimates that $81.0 billion of AUM available for future deployment could generate about $756.3 million in potential incremental annual management fees, though management stresses there is no assurance this capital will be deployed or that these fees will be earned. Acquisitions such as GCP International also contributed to AUM and FPAUM growth.

What did the acquisition of GCP International contribute to results?

The acquisition, which closed March 1, 2025, was a major driver of growth in the Real Assets Group, where AUM rose 88% and FPAUM rose 87% year over year. Real Assets management fees more than doubled, up 106% in Q3, though management noted the growth was primarily acquisition-driven. The company also cited GCP International as a contributor to overall AUM and FRE growth.

ARES/ARES-PB 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed November 3, 2025. Cited figures are marked; the original filing is the authoritative source.

Ares Management reported strong third-quarter 2025 results, with growth in fee-related earnings and fundraising.

GAAP net income attributable to Ares Management Corporation was $288.9 million^a, or $1.15 per share of Class A and non-voting common stock. After-tax Realized Income, the company's key cash-earnings measure, was $425.8 million, or $1.19 per share, up 25% year over year. Fee Related Earnings (FRE) rose 39% to $471.2 million, with a 41.4% margin.

Total AUM reached $595.7 billion^b (up 28%), and FPAUM reached $367.6 billion (up 28%). Management fees grew with the platform, though part of the growth came from the acquisition of GCP International. Fundraising was a standout.

Ares raised $30.9 billion^c in the quarter, with net inflows of $28.5 billion, and deployed $41.7 billion of capital. Management said it now expects to meaningfully exceed its prior annual fundraising record of $93 billion in 2025. Available capital stood at $149.5 billion, and AUM Not Yet Paying Fees was $103.0 billion, which management estimates could generate substantial future fees as capital is deployed.

Carried interest allocation rose to $464.7 million^d from $277.7 million a year earlier, and performance-related compensation rose to $404.1 million, so the GAAP results are sensitive to unrealized performance income. The company declared a quarterly dividend of $1.12 per Class A share, payable December 31, 2025, to holders of record on December 17, 2025. It also declared a $0.84375 quarterly dividend on its 6.75% Series B mandatory convertible preferred stock, payable January 1, 2026.

Investors should note that the results and presentation are furnished under Items 2.02 and 7.01 and are not deemed filed for Section 18 purposes. Forward-looking statements, including the fundraising outlook, carry risk.

02—Key points

Key Highlights

GAAP net income attributable to Ares Management was $288.9 million ($1.15 per share), up from $118.5 million ($0.55 per share) in Q3 2024.
After-tax Realized Income was $425.8 million ($1.19 per share of Class A stock), up 25% from $0.95 per share a year earlier.
Fee Related Earnings grew 39% year over year to $471.2 million, with a 41.4% margin; management fees rose 28% to $970.6 million (unconsolidated basis).
Record fundraising: $30.9 billion raised in Q3 with $28.5 billion of net inflows. Management now expects 2025 fundraising to meaningfully exceed the prior $93 billion annual record.
AUM reached $595.7 billion (+28% YoY) and FPAUM reached $367.6 billion (+28% YoY). Available capital totaled $149.5 billion.
Quarterly dividend of $1.12 per Class A share (payable Dec. 31, 2025) and $0.84375 per Series B mandatory convertible preferred share (payable Jan. 1, 2026).
Carried interest allocation rose to $464.7 million from $277.7 million, but performance-related compensation also rose to $404.1 million, so earnings quality depends on realizations and unrealized marks.

03—Questions

Frequently Asked Questions

How did Ares perform on its key non-GAAP earnings measures this quarter?
After-tax Realized Income was $425.8 million, or $1.19 per Class A share, up 25% from $0.95 a year earlier. Fee Related Earnings were $471.2 million, up 39%, with a 41.4% margin. Realized Income before taxes was $455.5 million, up 34%. These measures strip out unrealized performance and investment gains, so they show recurring operating strength.
Why is fundraising important, and what did Ares say about the outlook?
Fundraising drives future management fees. Ares raised $30.9 billion in Q3 with $28.5 billion of net inflows and deployed $41.7 billion. CEO Michael Arougheti said the company expects to meaningfully exceed its previous annual fundraising record of $93 billion in 2025, citing demand across strategies and distribution channels. This is a forward-looking expectation and is subject to market and execution risk.
Are the GAAP results and the dividend secure?
GAAP net income is more volatile than Realized Income because it includes unrealized carried interest and investment gains, and it rose sharply partly due to higher performance income. The $1.12 Class A dividend is set against after-tax Realized Income of $1.19 per share, and the company's dividend policy aligns payouts with expected annual Fee Related Earnings after current taxes. Dividends are not guaranteed, and the company says it could reduce or suspend them if FRE cash flows were insufficient over a sustained period.
How much growth potential is already in the platform?
Ares reported $149.5 billion of available capital and $103.0 billion of AUM Not Yet Paying Fees. Management estimates that $81.0 billion of AUM available for future deployment could generate about $756.3 million in potential incremental annual management fees, though management stresses there is no assurance this capital will be deployed or that these fees will be earned. Acquisitions such as GCP International also contributed to AUM and FPAUM growth.
What did the acquisition of GCP International contribute to results?
The acquisition, which closed March 1, 2025, was a major driver of growth in the Real Assets Group, where AUM rose 88% and FPAUM rose 87% year over year. Real Assets management fees more than doubled, up 106% in Q3, though management noted the growth was primarily acquisition-driven. The company also cited GCP International as a contributor to overall AUM and FRE growth.

04—Continue

← View all 8-K filings