Ares Management CEO Michael Arougheti reported a record $36 billion [1] in private-credit fundraising during the second quarter of 2026.
The results signal a shift in institutional appetite for private markets, as the firm leverages artificial intelligence to scale operations and manage diversifying asset classes.
Speaking with Bloomberg Technology on July 31, Arougheti said the firm is focusing on horizontal diversification across various private market asset classes. He said that the current environment is driving a surge in interest from large-scale investors.
"The institutional demand for private credit is probably accelerating right now because they're seeing spreads widening and they're seeing capital leave the market," Arougheti said.
Financial results for the second quarter show a significant increase in revenue. Sales rose 25.6% year-on-year to $1.28 billion [2], while non-GAAP profit reached $1.29 per share [3]. These figures coincide with a broader strategic push to integrate AI across the firm's deployment and management processes.
Despite the fundraising momentum, the firm has faced some liquidity pressures. Earlier this year, Ares capped withdrawals at its flagship private-credit fund after receiving redemption requests for 14.4% of shares [4].
Arougheti said the firm intends to maintain its growth trajectory by remaining diversified. This strategy aims to capture opportunities across multiple sectors as institutional investors seek alternatives to traditional public markets.
“The institutional demand for private credit is probably accelerating right now”
The combination of record fundraising and the adoption of AI suggests that Ares is positioning itself to capture a larger share of the private credit market as institutional investors flee volatility in public markets. However, the recent redemption requests and subsequent withdrawal caps indicate a tension between rapid growth and liquidity management that may persist as the firm scales.
