Ares hits record Q1 fundraising in private credit

Ares Management reported record first-quarter fundraising of about $30 billion on May 1, 2026, underscoring strong investor appetite for the firm’s strategies. The result represents a 45% increase compared with the same period a year earlier, according to the company.

The fundraising milestone comes against a backdrop of recent market volatility. Despite that environment, Ares attracted sizable commitments across its platforms, with private credit playing a central role in the quarter’s flows.

Alongside the fundraising performance, Ares’ assets under management rose to $644.3 billion as of May 1, 2026. This marked an 18% year-over-year increase, reflecting both new capital raised and continued interest in alternative investment strategies.

Private credit remains the largest contributor to the firm’s AUM. Of the total, $422.6 billion was attributed to its private credit segment, highlighting the strategy’s scale within the broader Ares platform.

In the first quarter of 2026, Ares raised $20.4 billion from its private credit platform alone. This figure illustrates the central role of credit strategies in the firm’s overall fundraising and its positioning in the private markets ecosystem.

Within private credit, direct lending strategies were key drivers. U.S. direct lending accounted for $9.5 billion of the quarter’s credit fundraising, while European direct lending contributed $4 billion, underscoring demand across both regions.

The strength in direct lending comes as investors seek alternative sources of yield and financing solutions outside traditional public markets. Ares reported a robust pipeline of new institutional funds in this area, supporting expectations for continued activity.

Looking ahead, Ares is targeting significant growth from wealth management clients. CEO Michael Arougheti reiterated on May 1, 2026, that the firm aims to raise $125 billion from wealth clients by 2028, positioning this channel as an important contributor to future growth.

Arougheti highlighted the resilience of institutional investors despite broader economic uncertainty, noting that this has supported the firm’s fundraising momentum. The combination of institutional demand and expanding access to wealth investors underpins Ares’ long-term strategy.

The firm’s ability to post record fundraising, increase AUM and grow private credit commitments in the current environment suggests it sees continued opportunity in the asset class, as well as room to scale its offerings globally across client segments.