Ares Management (NYSE: ARES) reported $491 million in fee-related earnings for Q2 2026, a 20% year-over-year increase driven by record fundraising and asset growth. The firm raised a record $36 billion in gross capital during the quarter.

The alternative investment manager declared a quarterly dividend of $1.35 per share, marking a 20% increase from the prior-year period. Total assets under management (AUM) grew 17% year-over-year to approximately $671 billion, with fee-paying AUM reaching $410 billion.

Financial Performance

Management fees exceeded $1 billion for the quarter, rising 14% compared to the same period last year. Total revenues increased 17% year-over-year, supported by broad-based growth across credit, secondaries, and private equity strategies. Fee-related performance revenues surged 143% to approximately $41 million, largely driven by the Alternative Private Markets Strategy (APMS).

Realized net performance income reached $51 million, more than three times the prior-year amount. After-tax realized income totaled $468 million, up 27% year-over-year. The effective tax rate for the quarter was 13.7%, within the full-year guidance range of 11% to 15%.

Fundraising and Deployment

Ares Management raised approximately $66 billion in gross capital through the first half of 2026. Approximately 70% of capital raised this year originated outside its four largest credit fund families. The firm ended the quarter with $170 billion in available capital, including $114 billion in AUM not yet paying fees.

Institutional investors accounted for approximately 75% of overall AUM and represented more than 80% of gross equity inflows over the last 12 months. In wealth management, the firm raised $3.9 billion in gross equity commitments, a 15% increase from the prior-year period.

What the Numbers Show

Fee-paying AUM growth outpaced total AUM growth slightly, indicating efficient conversion of new capital into revenue-generating assets. Insurance fee-paying AUM increased by 54%, significantly higher than the overall platform growth of 17%, highlighting the accelerating contribution of the insurance segment to the fee base.

Investment Activity

Overall investment activity increased to approximately $36 billion in Q2 2026, compared to $27 billion in the prior-year period. U.S. direct lending deployment reached $12.4 billion, with 75% allocated to incumbent borrowers. The firmwide forward investment pipeline improved nearly 20% quarter-over-quarter to a new record level.

Portfolio performance remained strong, with gross returns of 16.4% in alternative credit and 19% in APAC credit over the last 12 months. Non-accrual levels in U.S. direct lending remained below 2%, while organic EBITDA growth from portfolio companies stood at 9% year-over-year.

Ares Management Corporation (NYSE: ARES) and PSP Investments have formed a joint venture to invest up to $2.4 billion in U.S. logistics real estate. The partnership pairs Ares Real Estate’s vertically integrated logistics platform with PSP Investments’ scaled capital to target high-conviction markets.

The joint venture includes a seed portfolio of 5.2 million square feet comprising 14 properties. These assets are located in key U.S. industrial hubs, including California, Texas and New Jersey.

Operational Structure

Marq Logistics, Ares Real Estate’s vertically integrated global logistics platform, will lead sourcing and manage the assets within the joint venture. Marq Logistics manages a portfolio of over 2,250 properties totaling more than 655 million square feet globally.

PSP Investments contributes scaled capital to the venture. As of March 31, 2026, PSP Investments managed C$320.6 billion of net assets. Ares Management Corporation reported over $671 billion of assets under management as of June 30, 2026.

Strategic Rationale

Dave Fazekas, Head of North America Logistics in Ares Real Estate, cited onshoring acceleration, digital infrastructure buildout and e-commerce growth as drivers strengthening investment fundamentals for strategically placed logistics facilities.

Laurence Bastien, Managing Director, Real Estate Investments, Americas at PSP Investments, noted that the U.S. logistics sector benefits from durable demand drivers and structurally constrained supply in critical submarkets.

Advisory Support

Eastdil Secured Savills acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Ares. Cushman & Wakefield acted as financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor to PSP Investments.