Core Viewpoint - The firm identifies a buying opportunity in the private credit market despite recent uncertainties and jitters [1] Group 1 - The firm believes that current market conditions present favorable investment opportunities [1] - Recent fluctuations in the private credit market have not deterred the firm's investment strategy [1]

Ares Management Conference Call Summary Company Overview - **Company**: Ares Management (NYSE: ARES) - **Assets Under Management**: Approximately $600 billion - **Core Expertise**: Credit, real assets, secondaries, and private equity - **2025 Performance**: Sustained industry-leading growth momentum with record fundraising, strong deployment, and investment performance [1][5][12] Key Industry Insights Private Credit Market - **Market Sentiment**: Investors are moving away from anxiety regarding private credit, supported by strong fundamentals [5][6] - **Portfolio Performance**: Ares credit portfolios are large, diversified, with non-accrual rates near historic lows; company-level cash flow growing at 10%-12% annually [7] - **Market Strength**: Deployment in Q4 is strong, with pipelines at or near record levels [7][12] Fundraising Dynamics - **2025 Fundraising**: On track for a record year, exceeding $90 billion, with strong demand from institutional and wealth channels [12][13] - **2026 Outlook**: Anticipated strong demand for private credit, with larger flagship funds expected to enter the market [14] Alternative Credit Opportunities - **ABF Strategies**: Ares focuses on both investment-grade (IG) and non-rated asset-backed finance (ABF), with non-rated strategies being more profitable [15][17] - **Market Position**: Ares has raised three of the four largest ABF funds, indicating strong market presence [16] Deployment and Market Activity - **Deployment Overview**: Q3 saw over $40 billion deployed; Q4 is expected to continue this momentum across various segments, including infrastructure and real estate credit [21][22] - **Market Segmentation**: Deployment is broad-based, indicating overall market health, with strong opportunities in asset-backed finance and opportunistic credit [22] Wealth Channel Growth - **Wealth AUM Target**: Increased target to $125 billion by 2028, with consistent quarterly inflows of about $4 billion [23][24] - **Product Evolution**: Introduction of new funds in core infrastructure and sports/media, with ongoing demand for geography-specific funds [25] Direct Lending Insights - **Advisor Demand**: Financial advisors are focusing on durable yield from various asset classes, not solely private credit [26][28] - **Market Dynamics**: Demand for private credit remains stable despite changing interest rates, driven by excess return generation [29] International Market Dynamics - **Distribution Landscape**: About 40% of wealth products come from outside the U.S., with a more fragmented and less concentrated market in Europe and Asia-Pacific [30][33] Strategic Partnerships and Growth - **Partnership Approach**: Ares is cautious about partnerships with traditional managers, focusing on delivering differentiated outcomes for clients [38][39] - **401(k) Market Potential**: Ares supports the inclusion of alternative assets in defined contribution plans but emphasizes the need for investor suitability and fiduciary duty considerations [40][42] Acquisition and Integration - **GCP Acquisition**: Integration is progressing well, with expectations for margin expansion as duplicative infrastructure costs decrease [47][48] - **Secondaries Market Growth**: Ares is expanding into infra secondaries, with significant growth expected in the coming years [49][51] Financial Outlook - **FRE Margin Guidance**: Expected margin expansion in 2026 due to successful fundraising and deployment [54][56] - **Capital Management Strategy**: Ares is considering various options for redeploying free cash flow, including dividends, buybacks, and investments in growth [59][61] Conclusion - Ares Management is positioned for continued growth in the alternative asset management space, with strong fundamentals in private credit, a robust fundraising outlook, and strategic expansion into new markets and product offerings.

Core Insights - Ares Management has joined the S&P 500 index, resulting in a 7.27% increase in its stock price as investors reacted positively to its new status [1] - The S&P Dow Jones Indices announced that Ares would replace Kellanova, which is undergoing a $36 billion acquisition by Mars [1][2] - Ares has approximately $596 billion in assets under management and meets the criteria for S&P 500 inclusion, which requires a market capitalization of at least $22.7 billion [3] Company Performance - Following its inclusion in the S&P 500, Ares has reduced its year-to-date losses to 1.47%, while competitors KKR and Blackstone have seen losses closer to 9% and 10% respectively [4] - The inclusion in the index is expected to lead to increased demand for Ares shares from funds that track the S&P 500 [4] Industry Context - The private credit market is projected to grow from $2 trillion in 2020 to $3 trillion by the start of 2025, and is expected to reach $5 trillion by 2029 [5] - Larger players like Ares are anticipated to benefit from high customer demand for alternative assets and a trend towards limiting the number of providers used by investors [5] - Concerns remain regarding risks associated with illiquidity and opaque lending standards in private markets [5]

Fears of the private credit market are vastly overblown, writes Apollo CEO Marc Rowan (via @opinion) https://t.co/yPlAXMPmoB ...

Defaults are poised to rise across the $1.7 trillion private credit market next year as a growing number of middle-market firms are experiencing stress, according to Kroll Bond Rating Agency. https://t.co/8EEMeJrLcb ...

Blue Owl was once the poster child of the boom times in the $1.7 trillion private credit market. Now a scrapped merger has it facing increased scrutiny and falling shares https://t.co/dBBoz9nAqA ...

Thereafter, Mike and Amit will discuss our investment portfolio and financial results in greater detail, and we'll leave some time for questions at the end. Yesterday, after market close, we delivered another quarter of solid results for the third quarter ended September 30. Q3 net investment income per share was $0.45, representing an annualized yield on book value of 10.3% and exceeding our regular quarterly dividend by 7%. Q3 earnings per share were $0.29, reflecting an annualized return on book value of ...

Anna Skoglund, Goldman Sachs Co-Head of EMEA Investment Banking, says the private credit market today is a big, deep and sophisticated market. "It is the natural development when the market enters into some form of acceleration and activity. But I would not say there's any reason to worry," she said. Skoglund also weighed in on investment banking in 2026, M&A activity and AI's impact on banking talent. Skoglund joined "The Pulse with Francine Lacqua" on Bloomberg Television. ...

Core Viewpoint - BlackRock is facing a $500 million loss due to alleged fraud in its shadow banking business, raising concerns about the stability of the shadow banking industry [1][2][6]. Group 1: BlackRock and HPS Investment Partners - BlackRock's private credit investment arm, HPS Investment Partners, is pursuing legal action to recover loans made to a US telecom firm accused of faking customer payments [1][2]. - HPS provided loans to Bankim Brahmbhatt, owner of Broadband Telecom and Bridgevoice, under the condition that he pledged customer receivables as collateral [3][5]. - Allegations include that Brahmbhatt forged contracts, emails, and invoices to misrepresent the legitimacy of the receivables [3][6]. Group 2: Industry Concerns - The incident has intensified worries about the opaque nature of the shadow banking industry, which has attracted significant investments but is now facing potential crises [2][6]. - The International Monetary Fund (IMF) has raised alarms regarding the unregulated private credit market, while JP Morgan's CEO has warned of hidden risks within the financial system [7][6]. Group 3: Legal and Financial Implications - A lawsuit was filed by Alter Domus, a financial services firm acting for HPS, in August, and several companies linked to Brahmbhatt have filed for Chapter 11 bankruptcy protection [5][6]. - The recent failures of companies like First Brands and Tricolor have caused market instability, highlighting the risks associated with bad loans in the financial sector [6].

The Asia Pacific private credit market is projected to grow to $92 billion in 2027 from $59 billion in 2024, representing a 16% compound annual growth rate, according to an industry report released this week https://t.co/BOQxSlWZVM ...