Financial Data and Key Metrics Changes - Ares Management achieved a record $994 million in management fees for Q4 2025, totaling $3.7 billion for the full year, reflecting a 27% and 25% year-over-year growth respectively [30] - Fee-related earnings (FRE) for the full year increased by 30%, with a record $528 million in Q4, and FRE margins improved to 41.7% [32] - Realized income for Q4 reached a record $589 million, exceeding $1.8 billion for the full year, marking a 26% increase from 2024 [34] Business Line Data and Key Metrics Changes - The wealth management business saw AUM grow to over $66 billion, a 69% increase year-over-year, driven by strong performance across various strategies [9] - The real estate group raised more than $16 billion for the year, including over $7 billion in Q4, with significant commitments in various funds [19] - The secondaries group raised $12.9 billion for the full year, with AUM increasing by 45% [23] Market Data and Key Metrics Changes - Ares Management's total AUM reached over $622 billion, a 29% increase from the previous year [7] - The company reported a record $36 billion in fundraising for Q4, contributing to a total of $113 billion for the year [6] - Deployment in real assets more than doubled from approximately $10 billion in 2024 to over $23 billion in 2025 [11] Company Strategy and Development Direction - Ares Management is focused on expanding its investment platform and geographic reach, with significant investments in AI projects to enhance decision-making and operational efficiency [9] - The acquisition of GCP has positioned Ares as a top three global owner and operator of industrial real estate, enhancing its product offerings [9] - The company aims to leverage its diverse strategies to capture growth opportunities across various asset classes and geographies [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing improved conditions for deployment across a broader range of investment strategies [29] - The company anticipates significant growth in realized performance income from European-style funds, projecting approximately $350 million for 2026 [33] - Ares Management is well-prepared to navigate market challenges, with strong fundamentals across its credit portfolios and a substantial amount of dry powder for investment [46] Other Important Information - Ares Management declared a 20% year-over-year increase in its first quarter 2026 common dividend to $1.35 per share [4] - The company has a robust pipeline of investment opportunities, with record levels of origination capacity across its strategies [13] Q&A Session Summary Question: Impact of software AI disruption on deployment efforts - Management reassured that their software investments are well-positioned to withstand disruption risks, emphasizing the diversification and stability of their portfolio [49][51] Question: Wealth channel performance and sentiment - Management noted strong inflows in January and February, with broad-based demand across various products, indicating resilience in the wealth channel despite market volatility [56][62] Question: Outlook for fundraising and deployment in real assets and secondaries - Management highlighted ongoing growth in real estate and secondaries, with expectations for significant fundraising in flagship credit vehicles and a focus on diversifying strategies [66][70]