Is ARES a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The bull case for Ares Management (ARES) rests on Private credit leadership: Ares is one of the largest private credit managers globally, with its credit group representing over 60% of AUM. Q1 2026 revenue is ~$1.27B. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: Ares is heavily concentrated in credit, so a broad rise in defaults, spread compression, or a downturn in private-credit demand would pressure both fees and asset marks. Whether ARES is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
Ares Management is one of the world's largest alternative investment managers, overseeing roughly $644 billion of assets under management as of early 2026 across four groups: credit (its dominant business at over 60% of AUM, spanning direct lending, high yield, and alternative credit), real assets (roughly 20% of AUM, including logistics, data centers, and infrastructure), private equity, and other alternatives. The firm earns most of its economics from recurring management fees on long-dated capital, supplemented by performance fees when funds hit return targets, and it distributes a large share of that cash to shareholders as dividends. The investment picture is one of a fee-driven growth compounder riding the secular expansion of private credit. Management fees topped $1 billion in a single quarter for the first time in Q1 2026, fee-paying AUM rose about 19% year over year to roughly $400 billion, and the firm posted record first-quarter fundraising of about $30 billion. The trade-off is valuation: ARES trades at a premium trailing earnings multiple, and its results are exposed to credit-market stress, slower fundraising, and pressure on the private-credit spreads that underpin its flagship business.
What's the case for buying ARES?
1. Private credit leadership
Ares is one of the largest private credit managers globally, with its credit group representing over 60% of AUM. As borrowers continue to shift from bank loans to direct lending, Ares collects recurring management fees on a growing, largely long-dated capital base, which is the core engine of its earnings growth.
2. Fee-related earnings growth
Management fees crossed $1 billion in a quarter for the first time in Q1 2026, and fee-related earnings rose about 26% year over year. The firm targets compound annual growth of roughly 16% to 20% in fee-related earnings, which tends to be more stable than performance fees because it does not depend on realizing gains.
3. Real assets and infrastructure expansion
The real assets group has grown to roughly 20% of AUM, focused on logistics, data centers, and essential infrastructure. This diversifies Ares beyond credit and taps demand tied to AI-driven data-center buildout and supply-chain investment.
4. Record fundraising and dry powder
Ares raised about $30 billion in Q1 2026, up 46% year over year, and holds over $158 billion available to deploy, including more than $100 billion in credit. That undeployed capital converts into future fee-paying AUM as it is put to work.
What are the risks to ARES?
Ares is heavily concentrated in credit, so a broad rise in defaults, spread compression, or a downturn in private-credit demand would pressure both fees and asset marks. Its valuation carries a high trailing earnings multiple, leaving little room for disappointment on fundraising or margins, and Q1 2026 revenue and EPS both missed analyst expectations. The firm and its affiliated vehicles face periodic legal and regulatory scrutiny, including a shareholder derivative suit against its Ares Capital (ARCC) business development company alleging inflated marks and excessive fees, and a past SEC compliance fine. Rising rates or a recession could slow fundraising and reduce performance fees. Its non-traded retail credit funds also expose it to redemption and marketing risk if sentiment sours.
How is ARES valued? (as of July 2026)
Snapshot for ARES as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Market cap: ~$37.5B
- Assets under management: ~$644B
- Fee-paying AUM: ~$400B
- Q1 2026 revenue: ~$1.27B
- P/E (TTM): ~55x
- Dividend yield: ~4.3%
ARES trades at a premium trailing earnings multiple (around 55x TTM but closer to 19x on forward estimates), reflecting expectations of continued double-digit fee growth. The firm pays an annual dividend of about $5.40 per share after a roughly 20% hike, a yield near 4.3%. Q1 2026 EPS of $1.24 and revenue both came in below analyst estimates even as AUM and fundraising set records.
How do you decide if ARES is a buy?
Rather than asking whether ARES is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold ARES indirectly through an index or sector ETF before adding more.
For the full picture, see the ARES stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about ARES against your real portfolio and see your actual exposure before deciding.
The bottom line on ARES
The bottom line: Ares Management's story right now is Private credit leadership, with q1 2026 revenue at ~$1.27B. If you believe that narrative continues, the call is about sizing ARES sensibly and checking overlap with what you own; if you doubt it (the risk: ares is heavily concentrated in credit, so a broad rise in defaults, spread compression, or a downturn in private-credit demand would pressure both fees and asset marks.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
More on ARES
- ARES stock guide (what the company does, ETFs that hold it, similar stocks, and the themes it fits)
- ARES stock forecast (the drivers and risks shaping the outlook)
- Does ARES pay a dividend?
Build a basket around ARES with Walnut
Use Ares Management as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is ARES a good stock to buy right now?
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The case for Ares Management right now is Private credit leadership, with q1 2026 revenue at ~$1.27B. If you believe that thesis holds, ARES is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is ares is heavily concentrated in credit, so a broad rise in defaults, spread compression, or a downturn in private-credit demand would pressure both fees and asset marks. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does Ares Management do?
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Ares Management is one of the world's largest alternative investment managers, overseeing roughly $644 billion of assets under management as of early 2026 across four groups: credi
What are the main risks of ARES?
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Ares is heavily concentrated in credit, so a broad rise in defaults, spread compression, or a downturn in private-credit demand would pressure both fees and asset marks. Its valuation carries a high trailing earnings multiple, leaving little room for disappointment on fundraising or margins, and Q1 2026 revenue and EPS both missed analyst expectations. The firm and its affiliated vehicles face periodic legal and regulatory scrutiny, including a shareholder derivative suit against its Ares Capital (ARCC) business development company alleging inflated marks and excessive fees, and a past SEC compliance fine. Rising rates or a recession could slow fundraising and reduce performance fees. Its non-traded retail credit funds also expose it to redemption and marketing risk if sentiment sours.
What does Ares Management do?
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Ares is a global alternative asset manager that raises long-dated capital from institutions and individuals and invests it across credit, real assets, private equity, and other alternatives. It earns recurring management fees plus performance fees, with private credit as its largest business.
How big is Ares Management?
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Ares managed roughly $644 billion of assets under management as of early 2026, with about $400 billion of fee-paying AUM. Its market capitalization is around $37.5 billion, making it one of the largest publicly traded alternative managers, though smaller than Blackstone, Apollo, and KKR.
Does ARES pay a dividend?
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Yes. Ares pays an annual dividend of about $5.40 per share, a yield near 4.3%, after raising its quarterly payout roughly 20% to $1.35 per share. The dividend is funded largely by recurring management fees, though it can vary with performance income.
Why is ARES's P/E ratio so high?
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Its trailing P/E of around 55x reflects strong expected growth in fee-related earnings and the market's premium on asset managers with durable, recurring fees. On forward estimates the multiple is closer to 19x, so much of the premium assumes continued double-digit earnings growth.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell ARES; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.