Feb 5 (Reuters) - Ares Management's assets under management crossed the $600 billion mark in the fourth quarter on the back of robust fundraising momentum, even as concerns mounted over cracks in the private credit market.
The alternative asset manager hauled in $35.9 billion in gross new capital during the quarter, lifting AUM to $622.5 billion. The firm has set a target of surpassing $750 billion in assets by 2028.
Demand for private credit from the institutional community has been resilient despite
rising concerns as investors chase higher returns and diversify beyond public markets.
"Robust investor demand across all three of our channels is continuing and we expect another strong year of fundraising which could match or exceed our record levels from 2025," CEO Michael Arougheti said.
Alternative asset manager earnings will be in sharp focus over the next few days as investors assess the sector's exposure to software companies amid fears of disruption from artificial intelligence.
Ares said on Thursday its investment exposure to the software industry represents 6% of its total assets and less than 9% of private credit.
The industry had already been under intense scrutiny since September, with the twin bankruptcies of auto-parts maker First Brands and subprime lender Tricolor stoking market concerns about private credit.
Ares deployed $45.8 billion of capital in the fourth quarter. Most of it was dedicated to U.S. and European direct lending, real estate and alternative credit.
Quarterly after-tax realized income was $1.45 per share, compared with $1.23 per share a year earlier.
Ares, one of the biggest alternative asset managers globally, is heavily credit-focused. It has also broadened its real estate and digital infrastructure capabilities through the acquisition of GCP International.
The firm joined the S&P 500 in December, becoming the latest alternative asset manager to join the benchmark index.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)
