Ares Management stock down 25% as record fundraising raises dividend

Ares Management shares have slipped more than a quarter of their value this year, according to reporting from 24/7 Wall St., even as the alternative-asset manager continues to set fundraising records and increase its dividend payouts. The decline brings the stock down 25.42% year-to-date, closing at $116.57 on 1 October 2026, according to the same reporting.

The company specializes in private credit, raising capital from pensions, insurers, and wealthy families to make direct loans to companies. During the second quarter, its Credit Group generated $722.4 million in revenue, marking a 14% increase, as reported by 24/7 Wall St. Total assets under management reached $671.3 billion, representing a 17% rise, while the firm raised a record $36.4 billion in the quarter. Recent capital-raising efforts include the roughly US$4.2 billion Ares Global Structured Solutions Fund and a US$2 billion debt facility for Phoenix Tower International, according to filings and analysis cited by Yahoo Finance and 24/7 Wall St.

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Despite the share price slide, Ares has continued to elevate its cash returns to shareholders. The quarterly dividend now stands at $1.35 per share, following a 20% increase, according to 24/7 Wall St. Historical data shows the quarterly dividend was $0.47 in 2021, $0.77 in 2023, and $1.12 in 2025. The stock yields 4.25%, placing it near Blackstone’s 4.59% yield and well above KKR’s 0.82%, as reported by 24/7 Wall St.

Ares earns revenue through management fees and performance income. Fee-related earnings rose 20% to $491.1 million in the second quarter, while realized net performance income reached about $51 million, with management anticipating roughly $10 million in the third quarter, according to 24/7 Wall St. Roughly 94% of management fees derive from perpetual capital or long-dated funds that investors cannot quickly withdraw. However, the firm's effective management fee rate slipped from 1.00% to 0.97%, and management targets fee-related earnings growth between 16% and 20%.

Valuation metrics vary across models. Yahoo Finance notes a P/E ratio of 54.4x in certain calculations, while 24/7 Wall St. Reports a forward P/E of 17, compared with 16 for Blackstone and 13 for KKR. An Excess Returns model cited by Yahoo Finance assumes stable earnings of $6.35 per share on a book value base of $24.20 per share, implying a 26.26% return on equity. Against a cost of equity of $2.09 per share, the model calculates an excess return of $4.26 per share, though analysts on Simply Wall St. Also flag three warning signs—including two major concerns—alongside a community narrative suggesting the stock is 21% undervalued based on undeployed capital.

Broader market conditions and private-credit pressures have also weighed on sector valuations. Morningstar’s The Morning Filter podcast discussed that Morningstar cut its fair-value estimates on several alternative-asset managers, including Ares Management, Blue Owl, and KKR, due to growing private-credit concerns. Podcast participants Dave Sekera and Susan Dziubinski highlighted that defaults are creeping into 2022 vintages and institutional investors are increasingly seeking to reduce exposure. Furthermore, management at Ares acknowledged potential cyclical risks, stating, There is a risk that some of the wealth flows could be more pro-cyclical than people thought they were, which is why we continue to index aggressively into the institutional market.

Analyst sentiment remains mixed. According to 24/7 Wall St., the average analyst target price is $147.3, with 12 analysts rating the stock a buy or strong buy and seven rating it a hold. Stakeholders now await the upcoming third-quarter financial results, which will reveal whether fee-related earnings growth remains within the targeted range and whether fundraising activity stays on pace amidst a shifting credit environment.