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Markets EdgePAPPY 23August 1, 20262 min readAd-free
Ares Management raises $36 billion in Q2 private credit, marks record quarter for alternative credit demand
The fundraising sprint signals family offices and institutions are doubling down on floating-rate, senior-secured exposure as rate-cut timing remains unclear.
Ares Management$ARES · filed: grew revenue 44.2% in FY2025 to $5.6BSound shipNext year $5.3B–$10.1B sealedCheck ▾Close ▴
What Ares Management filed
Grew revenue 44.2% in FY2025 to $5.6 billion, equity 14.9% of assets, and dividend per share up 1 year running. Every figure links to the filing it came from on Ares Management’s card. Sound ship: one warning sign.
What the house said in advance
Revenue for the fiscal year after 2025-12-31 between $5.3B and $10.1B, an 80% range sealed on 27 Sept 2026 · receipt #ddbb3e · graded in public by the revenue in Ares Management’s next annual report.
Figures as filed with the SEC. Ranges, scores and boats are statistical descriptions of past filings, not ratings or recommendations. Reporting, not advice.
In plain words
**$36 billion** Q2 raise signals private credit remains the preferred allocation for floating-rate exposure, but secondaries activity hints at vintage pressure.
$36 billion
into its private credit vehicles during the second quarter
$28 billion
raised in Q1
5 percent
Ares now manages approximately
$240 billion
in private credit assets across nearly thirty separate vehicles
Ares Management pulled $36 billion into its private credit vehicles during the second quarter, the largest quarterly haul in the firm's history and a sharp acceleration from the $28 billion raised in Q1. The Los Angeles-based alternative asset manager disclosed the figure in its earnings release, noting that limited partners continued to allocate heavily toward direct lending and asset-backed strategies despite mounting concerns over commercial real estate exposure and a slowing IPO calendar.
The fundraising pace reflects sustained institutional appetite for floating-rate credit instruments, which have delivered high-single-digit to low-teens net returns over the past eighteen months as the Federal Reserve held rates above 5 percent. Ares now manages approximately $240 billion in private credit assets across nearly thirty separate vehicles, making it the second-largest manager in the category behind Blackstone. Concurrently, the firm announced it had bundled roughly €3 billion in seasoned private credit loans for sale to secondaries buyers, a move that provides liquidity for older vintage funds while recycling capital into higher-yielding 2024 originations. The secondaries transaction is expected to close in Q3, with pricing rumored near 92-94 cents on par depending on collateral quality.
The twin developments—record primary fundraising and active secondaries recycling—suggest Ares is positioning for a prolonged period of elevated rates rather than an imminent easing cycle. Family offices and institutional allocators have historically increased private credit exposures when they believe the curve will stay inverted or flat, allowing them to lock in floating-rate income without significant duration risk. Ares' direct lending strategies have targeted middle-market borrowers in healthcare, software, and business services, segments where sponsor-backed M&A remains active despite a 40 percent decline in overall buyout volume since 2021. The firm's ability to deploy capital at scale while maintaining credit discipline will determine whether these record inflows translate into sustainable performance or simply reflect a crowded trade.
Operators should monitor Ares' Q3 deployment pace and any uptick in non-accruals, particularly within its asset-based finance book. The secondaries sale will offer a real-time valuation benchmark for private credit portfolios originated in 2020-2021, a vintage cohort now facing refinancing pressure. Institutional allocators should also track whether Ares begins to shift capital toward opportunistic credit or distressed strategies, a sign the firm expects default rates to climb above the current 2.8 percent average in its direct lending portfolio. The firm has signaled it may raise a dedicated dislocated credit fund by year-end, with a target size near $5 billion.
Ares reported the secondaries sale during the same week KKR and Blackstone disclosed similarly large private credit inflows, suggesting the category is absorbing capital faster than managers can prudently deploy it. The real question is not demand but discipline.
Branded by POPS4 · proof in 60 seconds
For the principal
Monitor Ares' deployment velocity and any shift toward opportunistic credit funds; vintage 2020-2021 secondaries pricing will reveal true marks.
For the operator
Track non-accrual trends in Ares' asset-based finance book and watch for any material repricing in the €3 billion secondaries transaction expected Q3.
For the house
Named accounts maintain underweight direct lending; initiate small exposure if Ares launches distressed fund near $5 billion target before year-end.
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