Expanded Growth in Alternative Investment Portfolio for Ares Management
**Ares Management Corporation: Robust Growth and Commitment to Sustainability**
Ares Management Corporation, a global alternative investment manager, has demonstrated impressive growth over the past few years, with assets under management (AUM) surging from $295 billion in 2021 to approximately $546 billion as of March 31, 2025—a remarkable 79% increase. This growth is attributed to strong inflows from investors and consistently strong investment performance, as well as strategic acquisitions and diversification into new sectors.
The company's flagship credit funds have outperformed benchmarks in both bullish and bearish markets, highlighting disciplined underwriting and risk management. Notable acquisitions include the purchase of Black Creek’s U.S. real estate business, bolstering logistics and industrial real estate expertise, and a minority stake in the NFL’s Las Vegas Raiders, signaling diversification into entertainment and related real estate.
Ares has maintained strong performance across its core asset classes, with private equity and credit strategies outperforming amid volatile market conditions. The firm continues to grow its private markets platform, including its Ares Private Markets Fund, which integrates ESG principles and targets sustainable investments. Ares’ recent acquisition of a minority stake in Plenitude (Eni’s renewables business in Europe) for €2 billion underscores its expansion into energy infrastructure and related sectors.
In the real estate sector, the integration of Black Creek’s logistics-focused U.S. real estate platform has significantly enhanced Ares’ capabilities, while diversification into entertainment-linked assets further expands its real estate exposure. Infrastructure debt, particularly in energy transition, has become a major growth engine for Ares, with the firm increasingly active in sustainable infrastructure.
Ares has embedded ESG risk assessments into all new investments and is actively courting ESG-focused institutional investors, a group that commands $40 trillion in global assets. This positions Ares to capitalize on the growing demand for responsible investment products, particularly in private equity, real estate, and infrastructure.
Ares is expected to release its second-quarter 2025 earnings on August 1, 2025, with analysts anticipating further updates on its infrastructure debt portfolio and ESG initiatives. The company’s multi-asset strategy, acquisition-led growth, and ESG integration suggest continued momentum, especially in sectors with strong secular tailwinds like logistics, energy transition, and sustainable real estate.
Here's a summary table of Ares' recent performance, growth drivers, ESG integration, and key statistics:
| Asset Class | Recent Performance | Growth Drivers | ESG Integration | |------------------|-----------------------------------|-----------------------------------------------------------|---------------------------| | Private Equity | Strong, outperformed benchmarks | Acquisitions, ESG funds, energy transition | ESG risk assessments | | Real Estate | Rapid AUM growth, sector focus | Logistics, entertainment diversification | ESG-linked underwriting | | Infrastructure | Emerging as growth engine | Debt portfolio, renewables, SDG alignment | $20B SDG-aligned by 2027 |
With a strong track record of growth and a commitment to sustainability, Ares Management Corporation appears well positioned for continued success in the alternative investment space.
Investing in Ares Management Corporation's private equity strategy has proven to be a sound decision, as it has outperformed benchmarks and expanded into sectors with strong secular tailwinds like energy transition and logistics.
The firm's commitment to sustainability is evident in its integration of ESG principles into new investments, particularly in real estate and infrastructure, where it aims to align with the United Nations' Sustainable Development Goals (SDGs) and has pledged to have $20 billion SDG-aligned by 2027.
