Short answer
Ares Management (ARES) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $5.6B (+44.2% year over year) and net income of $527M.
- Top risk flagged: FSOC non-bank SIFI designation risk under Dodd-Frank Act: if designated, triggers Federal Reserve capital, leverage, and stress-test requirements designed for banks
FY2025 key financial metrics · XBRL
- Revenue
- $5.6B
- +44.2% YoY
- Net income
- $527M
- +13.7% YoY
- ROE
- 12.3%
- −0.8 pp YoY
- Operating cash flow
- $3.3B
- +17.0% YoY
Source: XBRL data from the Ares Management (ARES) FY2025 10-K on SEC EDGAR. USD.
Ares Management FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global alternative asset manager with $622.5B AUM across Credit ($406.9B), Real Assets ($139.1B), Secondaries ($42.1B), and Private Equity ($25.3B)
- GCP Acquisition (completed March 1, 2025) added logistics and digital infrastructure capabilities, expanding geographic presence into GLP's international markets
- Record $113.2B gross new capital raised in 2025; $145.8B deployed, with Credit dominating at $111.1B deployed
- AUM CAGR of 26% over 5 years, growing from $94.0B a decade ago; institutional relationships expanded from 1,090 in 2020 to 2,850 in 2025
- SPAC investment converted into Kodiak AI (Nasdaq: KDK) in September 2025 after AAC II completed business combination with Kodiak Robotics
Management Discussion & Analysis
- Total revenues $5.60B, up 44% YoY (+$1.72B), driven by management fees +25% to $3.68B and carried interest surge to $1.15B from $390M
- FRE $1.78B vs $1.36B; RI $1.85B vs $1.47B; no consolidated operating margin disclosed, but net income attributable to AMC $527M vs $464M (+14%)
- Best segment: Credit Group FRE $1.82B (+16%); worst: Private Equity Group FRE $58M (-4%), RI $40M (-25%)
- GCP Acquisition (March 2025) added $202.8M management fees, $157.2M other fees, $113.3M employment costs, and $179.4M G&A to Real Assets; no buyback or dividend figures disclosed beyond $101.3M Series B preferred dividends
- AUM $622.5B (+29% YoY); $78.8B dry powder not yet fee-paying could add ~$730M incremental annual management fees (23% embedded growth); key risks include tariff uncertainty, interest rate volatility, and GCP integration costs
Risk Factors
- FSOC non-bank SIFI designation risk under Dodd-Frank Act: if designated, triggers Federal Reserve capital, leverage, and stress-test requirements designed for banks
- Direct lending AUM = 44% of total AUM as of Dec 31, 2025: concentrated exposure to credit market downturns and rising regulatory scrutiny of private credit
- ARCC management fees (including Part I Fees) comprise significant portion of total revenues: termination of advisory agreement requires only 60 days notice
- $1,380M outstanding under Credit Facility plus $2,150M senior notes and $450M subordinated notes: SOFR-based facility exposes interest costs to short-rate increases
- AI adoption by competitors, including low-cost algorithmic platforms, cited as direct competitive threat: new entrants may enter asset management using AI-native investment platforms
Generated from the filing text; verify against the original. How to read a 10-K
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