Ares Management Reports 71% Revenue Growth to $1.35 Billion in Latest Quarter

Ares Management Corporation reported significant financial growth in its latest quarterly results, with total revenues reaching $1.35 billion for the three months ended June 30, 2025, a 71% increase from $788.7 million in the same period last year. For the first half of 2025, revenues totaled $2.44 billion, up 63% from $1.50 billion in the prior year. The surge in revenue was primarily driven by a substantial increase in management fees, which rose to $900.6 million from $721.7 million year-over-year, reflecting a 25% increase. The company also reported a carried interest allocation of $323.9 million, a significant recovery from a loss of $51.2 million in the previous year.

The company’s net income for the second quarter was $226.0 million, down 18% from $276.3 million in the prior year, while net income attributable to Ares Management Corporation increased by 44% to $137.1 million. The decline in overall net income was attributed to higher expenses, which more than doubled to $1.14 billion, largely due to increased compensation and benefits expenses associated with the acquisition of GCP International, which added 844 professionals to the company’s workforce.

Strategically, Ares Management completed the acquisition of GCP International on March 1, 2025, for a total consideration of approximately $3.9 billion. This acquisition is expected to enhance Ares' capabilities in real estate and digital infrastructure investments, expanding its geographic presence significantly. The integration of GCP International is anticipated to contribute positively to the company’s revenue streams, particularly in the Real Assets Group, which saw management fees increase by 77% to $175.9 million in the second quarter.

Operationally, Ares Management reported a total of $572.4 billion in assets under management (AUM) as of June 30, 2025, a notable increase from $447.2 billion a year earlier. The growth in AUM was driven by net new commitments and capital raised across various segments, including Credit, Real Assets, and Secondaries. The company also reported a 31% increase in full-time equivalent headcount, reflecting its ongoing expansion efforts.

Looking ahead, Ares Management remains optimistic about its growth trajectory, bolstered by its diversified investment strategies and the integration of GCP International. The company anticipates continued revenue growth from its management fees and performance-related revenues, particularly as it capitalizes on the synergies from recent acquisitions and the favorable market conditions for its investment strategies.