Ares Management (ARES) Stock Forecast & Price Target

Ares Management Corp is experiencing robust fundraising momentum, with gross new commitments reaching $20.9 billion, exceeding earlier estimates, and projections for total fundraising in the mid-$80 billion range for the current year, indicating strong investor interest across various asset strategies. The company's diversified operational segments are strategically positioned to benefit from ongoing growth trends in private credit, private equity, and real assets as institutional investors increasingly seek exposure to less correlated, illiquid asset classes. Additionally, the recent announcement of the pending acquisition of GCP International is expected to enhance Ares' foothold in the Asia-Pacific region and provide opportunities for significant fee income, reinforcing the company's long-term growth prospects.

Ares Management Corp. has displayed a concerning trend in margins, with expectations for 4Q margins dropping to approximately 40%, notably lower than the previously estimated 42.7%. Additionally, the company's total ending assets under management (AUM) fell short at $463.8 billion compared to the forecast of $465.7 billion, while fee-paying AUM also declined from estimates. The Private Equity Group's realized income of $12.3 million was underwhelming in relation to the expected $15.3 million, indicating challenges in performance income and adding to the negative outlook for the company’s financial health.