What smart money is saying about Ares Management Corporation
3 funds in our archive have pitched Ares Management Corporation — most recently Vulcan Value Partners Quarterly Composite in March 2026.
Ares Management Corporation functions as an investment firm specializing in alternative assets, with operations spanning the United States, Europe, and Asia. Its Tradable Credit division oversees diverse investment vehicles, including pooled funds and separately managed accounts for institutional investors, alongside publicly traded products and sub-advised funds aimed at retail investors, all within the tradable and non-investment grade corporate credit markets. The Direct Lending segment delivers financial solutions to small and medium-sized businesses. Through its Private Equity arm, the company primarily targets investments where it holds a majority or shared controlling interest, focusing on companies that are currently under-capitalized. The Real Estate group is involved in financing new property developments and the strategic repositioning of existing assets, often taking control or majority-control stakes. This group also creates and invests in specialized financing opportunities for middle-market commercial real estate owners and operators. Established in 1997, the company, formerly known as Ares Management, L.P., is headquartered in Los Angeles, California, and maintains a global footprint with additional offices across the United States, Europe, and Asia. Ares Management GP LLC serves as its general partner.
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Position history
Between Q1 2025 and Q1 2026, 3 fund letters reported a position in Ares Management Corporation — 1 opened or added to the position.
| Quarter | Letters | Bought | Sold | Theses |
|---|---|---|---|---|
| Q1 2026 | 3 | 1 | 0 | 1 |
| Q2 2025 | 0 | 0 | 0 | 1 |
| Q1 2025 | 0 | 0 | 0 | 1 |
Fund activity · 3 positions · 1 move
- March 2026
“Our two alternative asset manager holdings, Ares Management Corp (ARES) and KKR & Co. (KKR) were under pressure during the first quarter primarily driven by their exposure to private credit as well as Software.”
Ares Management Corporation - March 2026
“ Broader skepticism toward private credit weighed on Ares Management (ARES) in the quarter.”
Ares Management Corporation - March 2026
“Ares is in the second category. It is an alternative asset manager widely considered to be the leading private credit provider globally. Its value has compounded at double digit rates while we have owned it. Its stock price declined 6www.vulcanvaluepartners.com || 205.803.1582 6.2% last year and 31.6% during the first quarter on AI related fears. Specifically, bears are worried about its exposure to software companies and about clients allocating capital away from ARES because of AI related fears about that same software exposure. Let us dissect both related arguments. First, ARES exposure to software is a relatively small proportion of its portfolio. Second, its exposure is in credit, so ARES has the most senior position if the companies begin to struggle. Their loan to value ratio is approximately 37%. The companies are not struggling, and default rates are close to zero. The average duration of their loans is about three and a half years so they will get all of their money back or refinance relatively soon, before AI causes financial stress, if it ever does. ARES has been aware of AI risks for many years and has been very selective in the types of companies in which they invest. Assuming we are wrong and 15% of their software loans default we estimate it would only reduce the company’s growth rate by 3% or 4% for one year and that ARES would continue to grow at a double digit rate. Second, ARES has a very impressive track record minimizing credit losses going back to the financial crisis. Most of the funds they manage are institutional, which provides stability. Their assets under management continue to grow nicely. Their primary “wealth channel” or “retail” related assets under management comes from ARCC, a business development company that acts like a closed end fund. Investors can sell ARCC’s stock but they cannot force ARES to liquidate ARCC’s loans. Bears have cited meaningful fund withdrawals at Blue Owl, a smaller ARES competitor that is much more retail oriented with less stable capital than ARES, as a reason to sell ARES. We looked at Blue Owl several years ago and decided it did not qualify for investment precisely because its structure is inferior compared to ARES. We believe that fears expressed by the bears are not supported by facts so that ARES’ value is stable and that its stock price decline represents a compelling buying opportunity. We have been buying.”
Ares Management Corporation
Fund coverage · 3 theses
Ares Management Corporation is a leading private credit manager with stable, institutional capital and limited direct AI risk.
Read the full thesis- Vulcan Value PartnersJune 2025
Ares Management is a high-quality, diversified alternative asset manager known for its strong performance and growth during market dislocations, supported by defensiveness in credit and a favorable long-term industry outlook.
Read the full thesis - Clearbridge All Cap Growth StrategyMarch 2025
Ares Management is a leading alternative asset manager in private credit, poised to benefit from market trends while maintaining a balance sheet light strategy and strong performance in downturns.
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