Ares forecasts record fundraising year after income doubles in Q3
Ares Management is forecasting a “record year” of fundraising, following a strong third quarter in which the firm doubled its income and boosted investment into its US direct lending business.
The alternative asset manager said that it attracted $15.2bn (£11.6bn) in US direct lending commitments over the three months to 30 September, up from $8.8bn in the second quarter.
Notable deals included financing for AeriTek Global’s acquisition of Due North, Clearlake’s purchase of Dun and Bradstreet and Goldman Sachs Alternatives’ takeover of Liquid Environmental Solutions.
Read More: Ares acquires FI manager BlueCove
Meanwhile, income rose to $288.9m, up from $137.1m in the second quarter.
“We reported an outstanding third quarter, highlighted by strong financial results, quality fund performance, improving credit quality, a record quarter of fundraising and increased investment activity across the platform,” said Michael Arougheti, chief executive officer of Ares. “We now expect to meaningfully exceed our previous annual fundraising record of $93bn this year, driven by the growing breadth of investor demand across our various investment strategies and distribution channels.”
Read More: Private credit bigwigs hit back at “misinformation” over First Brands collapse
Ares reported a 28 per cent rise in assets under management over the third quarter to $596bn. Fee-related earnings increased to $471.2m, up from $409.1m in the previous quarter.
“Our strong fundraising and investing activities supported a 28 per cent year-on-year increase in AUM, fee paying AUM and management fees in the third quarter,” added Jarrod Phillips, chief financial officer of Ares. “Based on an improving tone in our markets and a healthy investment pipeline, we are well positioned to generate future earnings growth as we deploy our significant available capital, which stood at $150bn at the end of the quarter.”
Read More: Oaktree using private credit financing from Barings & Ares to acquire Perpetual
