Ares Management CEO Michael Arougheti said the firm's artificial intelligence strategy and private credit market pressures on CNBC's "Squawk on the Street" Monday.
The interview comes as the investment firm navigates a shifting financial landscape where AI is expected to disrupt traditional operations. The company's ability to integrate these technologies while managing massive capital inflows will determine its competitive edge in the private credit sector.
Ares reported a record fundraising amount of $30 billion [1] for the first quarter of 2026. This surge in capital follows a period of significant growth for the firm's overall portfolio. Total assets under management have increased to $644 billion, representing an 18% increase year-over-year [2].
Fee-paying assets under management also saw a rise, climbing 19% year-over-year to reach $400 billion [3]. Arougheti said how the firm intends to deploy this liquidity. Ares has slated $158 billion in capital for deployment throughout 2026 [4].
Regarding financial targets, the firm is aiming for a fee-related earnings compound annual growth rate of 16% to 20% for the current year [5]. This growth target is tied to the firm's ability to scale its operations and manage the pressures currently facing private credit markets.
Arougheti said the role of AI in the firm's future, focusing on how the technology can be implemented to improve efficiency and mitigate risks. The integration of AI is viewed as a necessary evolution to maintain the firm's momentum as it crosses significant asset milestones.
“Ares reported a record fundraising amount of $30 billion for the first quarter of 2026.”
The intersection of record-breaking capital inflows and AI integration suggests that Ares Management is attempting to scale its operational capacity rapidly. By targeting a high compound annual growth rate for fee-related earnings while deploying over $150 billion, the firm is signaling confidence in its ability to find yield in a volatile private credit market. The focus on AI is likely a response to the need for more sophisticated risk management and data processing to handle an increasingly large asset base.
