Ares Management Corporation (NYSE: ARES) reported first‑quarter 2026 results that included a net income of $142.6 million and earnings per share of $0.46. Revenue rose to $1.396 billion, up 28% from $1.089 billion a year earlier, and beat consensus estimates of $1.32 billion by roughly $76 million. Fee‑related earnings increased to $464.4 million, a 26% year‑over‑year gain that lifted the fee‑related earnings margin to 42.4%, up 90 basis points from the prior year. Assets under management grew 18% to $644 billion, while fee‑paying assets increased 19% to $400 billion. The company also announced record first‑quarter fundraising of $30 billion, up more than 45% year over year, and became the first alternative‑asset manager to generate more than $1 billion in management fees in a single quarter.
Revenue growth was driven by strong demand across core segments, offsetting headwinds in legacy products. The 28% increase in top‑line revenue reflects the firm’s expanding global platform and the continued inflow of capital into its credit, real‑estate, private‑equity, and infrastructure strategies. The revenue beat consensus estimates, underscoring the resilience of Ares’s diversified portfolio in a volatile market environment.
Fee‑related earnings grew 26% year over year, supported by a 25% rise in management fees that followed the 18% and 19% increases in total and fee‑paying assets, respectively. The margin expansion to 42.4% reflects the firm’s ability to capture higher fee income while managing operating costs. CFO Jarrod Phillips noted that “Strong inflows and deployment contributed to AUM and fee‑paying AUM year over year growth of 18% and 19%, respectively, which contributed to 25% growth in management fees and improving operating margins.”
AUM and fee‑paying AUM growth were key drivers of the firm’s fee‑related earnings performance. The 18% rise in total assets and 19% rise in fee‑paying assets helped the company reach a milestone of more than $1 billion in quarterly management fees for the first time. CEO Michael Arougheti highlighted the record fundraising, stating, “We reported strong first quarter results highlighted by continued growth across our key financial metrics, including record first quarter fundraising of $30 billion, up more than 45% year over year. We are on track for another record year of fundraising as we continue to see broad‑based investor demand across our platform.”
Management also acknowledged headwinds. CFO Phillips added that “elevated expenses” were a challenge, but the firm remains well positioned to invest capital opportunistically, citing a nearly $160 billion available capital and a record investment pipeline. CEO Arougheti emphasized that “Our AUM increased 18% year‑over‑year to $644 billion, and our fee‑paying AUM increased 19% to $400 billion. This is translating into strong top‑line growth and profitability.”
The results suggest a healthy underlying business with strong investor demand and expanding fee‑related earnings, but the earnings per share miss of $0.08 against consensus indicates pressure from rising expenses. The firm’s record fundraising and AUM growth reinforce its competitive position in the alternative‑asset space, while margin expansion signals operational efficiency. No forward guidance was disclosed, so the market will likely focus on the firm’s ability to sustain growth and manage cost pressures in the coming quarters.
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