Ares Chief Sees Private Markets Momentum Build

In Brief: In a CNBC interview with Sara Eisen and Carl Quintanilla, Ares Management CEO Michael Arougheti discusses recent leadership appointments and outlines the firm's strategic direction amid changing market conditions.

Big Picture Drivers:

• Bank Retreat: Traditional lenders pulling back creates opportunities for private credit providers

• AI Surge: Growing compute demands driving data center infrastructure investments

• Democratization: Retail investors seeking access to alternative investments

• Energy Transition: Push toward renewable and nuclear power solutions for data centers

Key Topics Covered:

• Leadership Transition: Elevation of Kipp deVeer and Blair Jacobson to co-presidents after 25 years of partnership

• Market Opportunity: Shift from private credit dominance to broader deployment across real estate and secondary markets

• Infrastructure Play: Partnership with Amazon on X Energy for data center power solutions

• Wealth Strategy: Major push into retail investor market through non-traded products

Memorable Quotes:

• "The animal spirits have been unleashed and that's generally good for the business"

• "We can deploy into really attractive opportunities regardless of the administration"

• "Most of the data center pipeline that we're working on now is entitled, powered, leased and on its way to financing"

By The Numbers:

• Deployment: Over $100 billion deployed in 2024, up 60% year-over-year

• Client Base: Nearly 3,000 institutional investors globally

• Wealth Business: Raising $1+ billion monthly in non-traded equity

• Market Share: 3rd largest player in non-traded wealth space with 10% share

The Wrap: Ares Management's strategic expansion beyond private credit, coupled with new leadership appointments and strong deployment numbers, signals confidence in private markets' growth trajectory. The firm's diversification into data centers, real estate, and wealth management positions it to capitalize on market opportunities while maintaining resilience across various economic conditions.