Ares posts FY 2025 carried interest allocation of USD 1.2 billion (+196.0%)

Reuters02-25 22:11
Ares posts FY 2025 carried interest allocation of USD 1.2 billion (+196.0%)

Ares posted FY 2025 results with total revenues of USD 5.6 billion (+44%) and net income of USD 1.1 billion (-2%). Net income attributable to Ares was USD 527.4 million (+14%), while net income attributable to Class A and non-voting common stockholders was USD 426.1 million (-3%) after USD 101.3 million of Series B mandatory convertible preferred stock dividends declared. Management fees were USD 3.7 billion (+25%), carried interest allocation was USD 1.2 billion (about 3.0x), incentive fees were USD 362.5 million (+5%), and administrative, transaction and other fees were USD 356.4 million (+119%). Fee Related Earnings (FRE) totaled USD 1.8 billion (+30%) and Realized Income (RI) was USD 1.8 billion (+26%). Total AUM ended 2025 at USD 622.5 billion (up 29% in 2025), with Fee Paying AUM at USD 384.9 billion, and the company raised USD 113.2 billion of gross new capital during FY 2025. Key business updates included the completion of the GCP acquisition on March 1, 2025 (added logistics and digital infrastructure capabilities and expanded geographic presence), contributing USD 202.8 million of additional management fees and USD 157.2 million of incremental administrative/transaction/other fees in FY 2025. Ares reported USD 78.8 billion of AUM available for future deployment and USD 4.3 billion of development assets not yet stabilized, which it said could generate approximately USD 730.4 million in potential incremental annual management fees (a 23% embedded growth rate in 2025 base management fees). The firm also reported USD 156.0 billion of dry powder at year-end 2025, and noted that 93% of FY 2025 management fees were derived from perpetual capital vehicles or long-dated funds.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Ares Management Corporation published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001628280-26-011413), on February 25, 2026, and is solely responsible for the information contained therein.

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