Ares Management Corp. reported $179.2 billion in assets under management as of Sept. 30, a 13.1% increase from $158.4 billion as of June 30 and up 24.2% from $144.3 billion at the end of the year-earlier quarter, the alternative investment firm said Wednesday.
Michael Arougheti, Ares president and CEO, attributed the increase in AUM largely to record fundraising in the third quarter as well as nearly 50% growth in realized income.
Ares had $52.5 billion in available capital as of Sept. 30, an increase of 55.3% from the end of the third quarter of 2019.
In response to an analyst's question during Wednesday's investor call, Mr. Arougheti said that he expects consolidation in the alternative investment management industry to increase.
"Anytime we go through a crisis of the depth and magnitude like the one that we're going through now, we always see market share consolidation," he said. "There is an overarching secular trend in alternatives for the larger platforms getting larger."
Unlike in traditional money management where size can sometimes hurt performance, "in alternatives, at least based on the way that we go about the business, we have found that the larger we get, the more we can invest in competitive advantages and the better our performance is," Mr. Arougheti said.