Ares Management Reports 44% Revenue Growth to $5.6 Billion for 2025

Ares Management Corp. reported a significant increase in total revenues for the year ended December 31, 2025, reaching $5.6 billion, a 44% increase from $3.9 billion in 2024. This growth was primarily driven by a $738.3 million increase in management fees and a $763.8 million increase in carried interest allocation. Despite the revenue surge, net income attributable to Ares Management Corporation Class A and non-voting common stockholders decreased slightly by 3% to $426.1 million, compared to $441.0 million in the previous year. This decrease was influenced by a substantial rise in total expenses, which increased by 60% to $4.7 billion, mainly due to higher compensation and related costs.

Compared to the previous fiscal year, Ares Management experienced notable strategic developments, including the completion of the GCP International acquisition on March 1, 2025. This acquisition contributed significantly to the Real Assets Group's performance, adding complementary logistics and digital infrastructure investment capabilities and expanding the company's geographic presence. The company also restructured and expanded its capital markets professionals and formalized and expanded its Capital Solutions Group to improve execution on financing and capital markets activities. These strategic moves are expected to enhance the company's ability to generate revenue and manage its diverse investment portfolio.

Key operational developments and business indicators reflect continued growth and expansion. As of December 31, 2025, Ares' assets under management (AUM) reached $622.5 billion, a 29% increase from $484.4 billion in the prior year. The company raised $113.2 billion in gross new capital commitments, with $77.4 billion raised directly from over 540 institutional investors and $35.8 billion raised through intermediaries. The investor base expanded to include over 2,850 direct institutional relationships, demonstrating the company's ability to attract and retain clients. Capital deployment also saw a substantial increase, with $145.8 billion invested across the platform, compared to $106.7 billion in the previous year.

Ares Management's outlook includes continued growth in AUM and fee-paying AUM, driven by fundraising efforts and capital deployment. The company expects to benefit from $78.8 billion of AUM not yet paying fees and $4.3 billion of development assets not yet stabilized, which could generate approximately $730.4 million in potential incremental annual management fees. The company's dividend policy contemplates a steady quarterly dividend for each calendar year that will be based on fee related earnings after an allocation of current taxes paid. The board of directors declared a quarterly dividend of $1.35 per share of Class A and non-voting common stock with respect to the first quarter of 2026 payable on March 31, 2026 to common stockholders of record at the close of business on March 17, 2026.