Ares Management (ARES) FY2025 10-K Annual Report
Ares Management (ARES) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 25, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Ares Management FY2025 10-K Analysis
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
Ares Management FY2025 Key Financial MetricsXBRL
Revenue
$5.6B
▲ +44.2% YoY
Net Income
$527M
▲ +13.7% YoY
Net Margin
9.4%
▼ -252bp YoY
ROE
12.3%
▼ -75bp YoY
Total Assets
$28.6B
▲ +15.1% YoY
Operating Cash Flow
$3.3B
▲ +17.0% YoY
Source: XBRL data from Ares Management FY2025 10-K filing on SEC EDGAR. All figures in USD.
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