Ares Management Corp. is strategically deepening its involvement in the artificial intelligence domain, underpinned by strong financial performance and ambitious future objectives. The firm’s recent quarterly results, while slightly below analyst predictions, revealed impressive growth in management fees and a notable increase in assets under management. This momentum has led to a favorable re-evaluation of its stock by financial analysts, signaling confidence in its sustained expansion and investment potential within evolving market landscapes.
Ares Management Charts Ambitious Course in AI and Private Markets
On Monday, February 16, 2026, Ares Management Corp. (NYSE: ARES) outlined its strategic growth plans at the Bank of America Financial Services Conference. CEO Michael Arougheti highlighted a remarkable fourth-quarter capital deployment of $46 billion and a 20% increase in dividend payouts, propelling assets under management to surpass $600 billion within five years. The firm is actively pursuing expansion in key areas such as private credit, digital infrastructure, and real estate, alongside a proactive integration of artificial intelligence to enhance operational efficiencies. Ares has set aggressive targets, aiming for an annual fee-related earnings (FRE) growth of 16%–20% and an investment return (RI) growth exceeding 20%. With a substantial $150 billion in available capital and a robust deal pipeline, Arougheti expressed strong confidence in capitalizing on favorable market conditions.
Previously, on February 5, Ares Management Corp. announced its fourth-quarter 2025 earnings, with an adjusted earnings per share of $1.45 and revenues of $1.5 billion. These figures were marginally below analyst consensus estimates of $1.70 EPS and $1.52 billion in revenue. Despite this, the company showcased a 27% year-over-year increase in management fees and successfully raised over $100 billion in funds for the year, pushing its total assets under management beyond the $600 billion mark. Looking ahead, Ares Management anticipates its fundraising efforts in 2026 to at least match, if not exceed, the levels achieved in 2025.
In response to these developments, Raymond James upgraded ARES stock from Market Perform to Strong Buy on February 9, establishing a price target of $157. This upgrade reflects the firm’s optimistic outlook on Ares Management’s projected growth, with fee-related earnings expected to expand by 16-20% through 2028. Raymond James further noted the predictability of Ares Management's growth, citing over $100 billion in assets under management that are yet to generate fees. The company's attractive 4.1% common dividend yield also strengthens the investment case for ARES stock, making it a compelling option for investors.
Reflecting on Ares Management's Strategic Vision and Market Positioning
Ares Management's proactive embrace of AI and its ambitious growth targets underscore a forward-thinking strategy in the dynamic alternative investment landscape. The firm’s comprehensive approach, spanning private equity, credit, and real estate, positions it uniquely to navigate market complexities and deliver diverse investment solutions. The confidence expressed by Raymond James, coupled with the impressive financial metrics, suggests a robust foundation for continued success. This narrative offers valuable insights into the strategic imperatives driving growth in the financial sector, particularly in the integration of technological advancements like AI and the expansion into high-potential private markets. For investors and industry observers, Ares Management's trajectory serves as a compelling case study on leveraging diversified portfolios and technological innovation to achieve sustained leadership and generate significant stakeholder value.