Will Ares Management's (ARES) Record Infrastructure Fund Shape Its Edge in Alternative Investments?

• In recent days, Ares Management announced the closing of its latest infrastructure secondaries fund at US$5.3 billion, more than tripling the size of its predecessor and surpassing the initial fundraising target.
• This achievement highlights both the accelerating investor demand for infrastructure secondaries and Ares' ability to expand its presence in a competitive segment of the alternative investments market.
• We'll explore how Ares' record-breaking infrastructure fund close could impact its diversified growth and future fee potential.

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Ares Management Investment Narrative Recap

Ares Management appeals to investors who believe in the long-term growth of alternative assets, fueled by rising institutional demand and product innovation. The closing of its US$5.3 billion infrastructure secondaries fund underscores Ares’ strong global positioning and ability to scale, but it doesn’t materially alter the current short-term catalyst, ongoing success in raising and deploying capital into higher-fee asset classes. The most pressing risk remains potential fee pressure as competition intensifies, which could impact long-term management margin stability.

Of recent announcements, the launch of the Ares Core Infrastructure Fund (AUT) in Australia stands out as highly relevant, supporting the theme of global infrastructure momentum. This initiative dovetails with the latest secondaries fund close, reinforcing Ares’ push to broaden fee-generating opportunities across institutional and retail channels.

In contrast, investors should be mindful that accelerating fund size may not offset potential future margin pressure if competition continues to...

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

Ares Management's narrative projects $7.1 billion in revenue and $2.2 billion in earnings by 2028. This requires 13.7% yearly revenue growth and a $1.83 billion increase in earnings from the current $369.5 million.

Uncover how Ares Management's forecasts yield a $191.00 fair value, a 36% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range from US$24.60 to US$201.41, showing sharply differing views. Many see strong fundraising and AUM growth as a key catalyst, but fee compression risks remain central to long-term outcomes, so it pays to consider all angles.

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 4 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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