Added to YB: 2026-04-24
Pitch date: 2026-02-20
ARES [bullish]
Ares Management Corporation
-3.47%
current return
Author Info
No bio for this author
Company Info
Ares Management Corporation operates as an alternative asset manager. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies.
Market Cap
$27.3B
Pitch Price
$118.90
Price Target
208.00 (+72%)
Dividend
4.46%
EV/EBITDA
34.56
P/E
68.60
EV/Sales
8.20
Sector
Capital Markets
Category
growth
Ares Management Corporation - $ARES
ARES: Alt mgr down 23% YTD on AI/software disruption fears despite only 6% AUM in software loans (avg 4yr duration, 37% LTV, >$350M EBITDA borrowers). FRE margin 41.7% vs peers' 55-69%, expansion potential +100-150bps/yr. $78B dry powder (20% FPAUM) driving deployment. European waterfall carry ramping $150M→$350M 2025-26, potential >$1B by 2030 (30% CAGR). Aspida insurance platform $26B→$50B by 2028. 20% EPS CAGR 2025-30 + 4.4% yield = 24% intrinsic value growth. Target $208 + $11.80 divs = 75%+ 2yr return at 23x P/E. Risks: software impairments, HNW flow slowdown, recession.
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