Why Ares Management (ARES) Outperforms in a Challenging Financial Sector

In an era marked by macroeconomic uncertainty and shifting investor priorities, Ares Management Corporation (ARES) has emerged as a standout performer in the financial sector. While peers like Voya Financial and Credit Acceptance Corporation (CACC) grapple with margin pressures and operational headwinds, Ares has leveraged strategic growth initiatives and operational efficiency to deliver robust financial results. This analysis examines how Ares's disciplined approach to asset management, fee-related earnings (FRE) growth, and expense optimization positions it as a leader in a fragmented market.

Strategic Growth: Scaling AUM and Fee-Related Earnings

Ares's third-quarter 2025 results underscore its ability to capitalize on market dynamics. The firm reported $1.07 billion in revenue, surpassing expectations, driven by a 28% year-over-year increase in management fees to $971 million according to the report. This growth was fueled by record fundraising of $30 billion in the quarter, propelling assets under management (AUM) to $595 billion, a 28% year-over-year jump according to the report. Such momentum reflects Ares's focus on expanding its alternative asset offerings and deploying capital efficiently.

Fee-related earnings (FRE), a critical metric for asset managers, surged 39% year-over-year to $471 million, with margins reaching 41.4% according to the report. This outpaces Voya Financial's 7.6% trailing twelve-month (TTM) revenue growth and Credit Acceptance's 3.9% increase in loan portfolio balances according to data. Ares's ability to convert AUM growth into higher FRE highlights its competitive edge in fee-based income generation.

Operational Efficiency: Balancing Growth and Cost Discipline

While Ares's revenue and AUM expanded rapidly, its expense structure remained resilient. For the twelve months ending September 30, 2025, operating expenses totaled $4.441 billion, a 62.76% year-over-year increase according to data. However, this growth pales in comparison to the 46.73% year-over-year revenue surge, resulting in a favorable expense-to-revenue ratio according to analysis. By contrast, Credit Acceptance faced a 13.3% year-over-year rise in operating expenses, driven by higher salaries and legal costs, which partially offset its revenue gains according to the report. Voya, while reporting disciplined expense management in its Investment Management segment (28.5% adjusted operating margin), lacks granular data on overall expense ratios according to the report.

Ares's efficiency is further evidenced by its FRE margin of 41.4%, which reflects strong cost control relative to fee-based income. This margin outperforms Voya's segment-specific figures and Credit Acceptance's narrower profit margins, particularly in a sector where operational leverage is increasingly hard to achieve according to industry analysis.

EPS Performance: Delivering Value to Shareholders

Ares's earnings per share (EPS) performance in Q3 2025 was equally impressive. The firm reported $1.19 in EPS, exceeding forecasts, while declaring a $1.12 per share dividend according to the report. This compares favorably to Voya's $2.45 adjusted operating EPS and Credit Acceptance's $10.28 adjusted EPS, though the latter's business model (focused on consumer finance) differs significantly from Ares's asset management focus according to data.

Notably, Ares's EPS growth was driven by both top-line expansion and margin optimization, whereas Voya's stock dipped 1.49% in premarket trading despite beating estimates, signaling investor caution around margin pressures according to market analysis. Credit Acceptance, meanwhile, faced declining unit and dollar volumes in its loan assignments, which offset gains in forecasted collection rates according to the report. Ares's consistent EPS growth and shareholder returns-via dividends and strategic capital deployment-underscore its resilience in volatile markets.

Conclusion: A Model for Sustainable Growth

Ares Management's outperformance in 2025 stems from its dual focus on strategic growth and operational efficiency. By scaling AUM through disciplined fundraising, optimizing fee-related earnings, and maintaining cost discipline, Ares has navigated macroeconomic headwinds more effectively than peers like Voya and Credit Acceptance. As the firm eyes further expansion-planning to exceed $93 billion in fundraising in 2025 and launching new funds in 2026-its ability to balance growth with profitability positions it as a compelling long-term investment according to the report.