Ares Management Corporation (NYSE:ARES) reported fourth-quarter results on Thursday that fell short of analyst profit expectations, even as the alternative asset manager posted strong expansion in assets under management.
The company reported after-tax realised income of $1.45 per share, missing analyst estimates of $1.70 per share. Shares declined about 1.6% in premarket trading following the results announcement.
Ares reported significant growth in assets under management (AUM), which increased 29% year-on-year to $622.5 billion. Fee-paying AUM rose 32% to $384.9 billion, while management fee income increased 25% compared with the same period last year.
For the fourth quarter, the company recorded GAAP net income attributable to shareholders of $54.2 million, or $0.08 per share. Fee-related earnings reached $527.7 million, representing a 33% increase from the previous year. Total revenue for the quarter came in at $1.5 billion.
“Our strong fourth quarter concluded an exceptional year full of milestones and strategic accomplishments for Ares. We crossed $600 billion in AUM, established new annual records for fundraising and investing of over $100 billion and closed our GCP International acquisition which meaningfully broadened our real estate and digital infrastructure capabilities,” said Michael Arougheti, Chief Executive Officer of Ares.
During the quarter, Ares raised $35.9 billion in new capital and deployed $45.8 billion across its investment strategies. For the full year, the firm raised $113.2 billion and invested $145.8 billion.
Ares announced a quarterly dividend of $1.35 per share, marking a 20% increase from its previous payout level. The dividend is scheduled to be paid on March 31, 2026, to shareholders on record as of March 17, 2026.
“With our platform’s enhanced global fundraising and investment capabilities and more than $150 billion of available capital, we are well positioned to generate strong earnings for our shareholders,” said Jarrod Phillips, Chief Financial Officer of Ares.