Ares Management (ARES) official guidance

We anticipate stronger deployment in the fourth quarter, which is nearly always our strongest deployment quarter of the year.

We expect to be at the higher end of our 11%-15% range in the fourth quarter due to the higher expected levels of FRPR and realized performance income in the fourth quarter.

For the full year 2026, we expect FRE growth to be within our 16%-20% annualized growth target with some added growth tailwinds going into next year.

Given the later timing of the first close for this fund and certain other funds that pay management fees on committed capital, we expect FRE margin growth for the full year 2026 will be slightly above the midpoint of our zero to 150 annual basis point range.

In the fourth quarter, we expect to receive gross fee-related performance revenues of approximately $115 million to $125 million in gross FRPR from credit SMAs, which assumes no significant changes in credit spreads but remains subject to changes in market values through year-end.

In European direct lending, we expect to launch our seventh institutional fund in the first half of 2027.

Investor interest in our global digital infrastructure equity strategy also remains very strong, and we expect to hold a meaningful first close for the fund in the fourth quarter.

In infrastructure debt, we expect to hold a final close for our latest commingled vintage in early November above the fund's $6 billion target.

Including a similar amount that we expect to raise in the fourth quarter, full year gross equity inflows are anticipated to be roughly in line with the $16 billion that we raised last year.

Looking forward to next year, we anticipate further growth in flows driven by expanded distribution partnerships, broader access to our eight flagship strategies for international investors, and a rebound in flows into ASIF, supported by strong fund performance, core earnings in excess of its dividend, and the potential for higher base rates to further enhance dividend coverage, all else equal.

Finally, our 10th real estate secondaries fund is expected to complete its first close by year-end at more than 50% of its initial $2.5 billion target, as persistent interest rate volatility and limited DPI continue to provide meaningful opportunities for real estate LP and GP investments.

We also expect growth in realized income within our 20%-25% plus range.

These delays will modestly impact our expectations for the full year, which we now expect will come in at a range of $300 million-$325 million in total net realized performance income, implying $160 million-$185 million for the fourth quarter.

These delays will modestly impact our expectations for the full year, which we now expect will come in at a range of $300 million-$325 million in total net realized performance income, implying $160 million-$185 million for the fourth quarter.

“We also have substantial embedded growth from capital already raised but not yet earning fees, which provides meaningful visibility into continued management fee and earnings growth in 2027 and beyond.”

“We continue to expect another record year in fundraising with visibility for a strong fourth quarter, driven by sustained demand in our global institutional and wealth channels.”

“We continue to expect another record year in fundraising with visibility for a strong fourth quarter, driven by sustained demand in our global institutional and wealth channels.”

“We also have substantial embedded growth from capital already raised but not yet earning fees, which provides meaningful visibility into continued management fee and earnings growth in 2027 and beyond.”

Ares Management Corporation (the “Company”) is furnishing this Current Report on Form 8-K to disclose that, based on information currently available, it preliminarily expects realized net performance income for the quarter ending September 30, 2026 to be approximately $10 million, compared to $9 million in realized net performance income for the quarter ended September 30, 2025.

In conclusion, our second quarter and year-to-date results leave us well positioned to achieve our financial objectives for 2026, which remain consistent with our long-term compound annual growth targets of 16%-20% for FRE, 20%+ for RI and dividend growth.