The Top 5 Analyst Questions From Ares’s Q2 Earnings Call

Ares Management delivered a quarter that met Wall Street’s revenue expectations and modestly exceeded consensus non-GAAP earnings per share for Q2, prompting a positive market response. Management attributed the performance to strong global fundraising, with CEO Michael Arougheti highlighting a record $36 billion raised across diverse strategies and approximately 17% year-over-year growth in both assets under management and fee-paying assets. The breadth of institutional investor engagement and expansion into real assets, credit, and wealth management were cited as key contributors.

Is now the time to buy ARES? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Ares’s Q2 Earnings Call

• Craig Siegenthaler (Bank of America): Asked about accelerating institutional demand for private credit and interplay with private wealth flows. CEO Michael Arougheti highlighted increased institutional appetite due to wider spreads and less competition, while noting that wealth redemptions are stabilizing primarily in Asia.
• Alexander Blostein (Goldman Sachs): Inquired about inorganic growth priorities and potential private equity expansion. Arougheti described a disciplined M&A framework emphasizing cultural, strategic, and financial fit, noting that scaling private equity could broaden client relationships.
• Steven Chubak (Wolfe Research): Asked about the outlook for U.S. Direct Lending amid subdued sponsor M&A. Arougheti pointed to a record pipeline and rising activity, with both incumbent and new relationships contributing to deployment momentum.
• William Katz (TD Cowen): Questioned drivers of anticipated margin expansion and sustainability. CFO Jarrod Phillips cited normalization of one-off expenses, contributions from new products, and the structural ability to reinvest margin into growth initiatives.
• Benjamin Budish (Barclays): Sought details on new interval fund offerings for the mass market and liquidity considerations. Arougheti explained that interval funds offer familiar liquidity structures, and product expansion will focus on ease of use and geographic tailoring.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will watch (1) the pace of deployment in direct lending and infrastructure as sponsor M&A and digital projects accelerate, (2) signals of operating margin stabilization amid ongoing investments and expense normalization, and (3) the rollout and adoption of new wealth management products targeting mass affluent and global investors. Execution on recent acquisitions and integration of technology initiatives will also serve as key indicators of strategic progress.

Ares currently trades at $138.00, up from $124.12 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).

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