Why Ares Management (ARES) Is Up 10.2% After S&P 500 Debut And Logistics Rebrand

• Ares Management has already been added to the S&P 500 index, replacing Kellanova after its pending acquisition by Mars prompted the benchmark’s latest reshuffle.
• Ares also unveiled “Marq Logistics,” uniting more than 600 million square feet of global logistics real estate under a single brand following its GLP Capital Partners acquisition outside China, underscoring its expanding real assets footprint.
• We’ll now examine how S&P 500 inclusion, and the broader institutional attention it brings, may influence Ares Management’s investment narrative.

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Ares Management Investment Narrative Recap

To own Ares Management, you need to believe that demand for alternatives, especially private credit and real assets, will keep supporting its fee-based growth despite competition and a rich valuation. S&P 500 inclusion and the Marq Logistics rollout raise Ares’ visibility, but do not materially change the near term balance between fee growth as a key catalyst and the risk of rising fee pressure across the sector.

The launch of Marq Logistics, consolidating more than 600 million square feet of logistics real estate, looks most relevant here as it reinforces Ares’ push into scalable real assets that can support fee-related earnings over time. For investors, that sits alongside S&P 500 inclusion as another sign of a platform becoming larger and more complex, which could amplify both the benefits of scale and the impact if integration or margin pressures disappoint.

Yet beneath the index upgrade and logistics expansion, investors should still be aware of...

Read the full narrative on Ares Management (it's free!)

Ares Management's narrative projects $7.1 billion revenue and $2.2 billion earnings by 2028. This requires 13.7% yearly revenue growth and about a $1.8 billion earnings increase from $369.5 million today.

Uncover how Ares Management's forecasts yield a $183.60 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$31 to US$201 per share, underlining how far apart individual views can be. You are weighing these against a business where growth in perpetual capital is a key catalyst for future fee stability and earnings resilience.

Explore 3 other fair value estimates on Ares Management - why the stock might be worth less than half the current price!

Build Your Own Ares Management Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ares Management research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Ares Management research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ares Management's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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