Ares Management on Pace for Record Fundraising Year, RBC Capital Markets Says

MT Newswires Live10-30 23:58

Ares Management (ARES) is on track for a record year of fundraising as the institutional pipeline remains robust and wealth stabilization continues, RBC Capital Markets said in a Friday research report.

The company's higher-than-expected fundraising in Q3 was primarily driven by real assets, the brokerage said, adding that its positive fundraising outlook is supported by a higher rate environment.

Ares Management reported Q3 after-tax realized income Thursday of $1.26 per diluted share, up from $1.19 a year-ago. Analysts polled by FactSet expected $1.25. Revenue for the quarter ended Sept. 30 was $1.43 billion, down from $1.66 billion a year earlier.

Management expects US direct lending deployment to reaccelerate in Q4 and beyond, as record pipelines should start converting more rapidly and potential for secondaries deals to speed up, given the rate backdrop, according to the note.

The brokerage said it reiterated its outperform rating on the stock and raised its price target to $171 per share from $168.

Price: 127.12, Change: -0.36, Percent Change: -0.28

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