Ares Surges on Record $7.1B Credit Secondaries Fund as Sector Nears $50B Despite Modest Gains and 397th Trading Volume Rank

Market Snapshot

Ares Management (ARES) closed on January 14, 2026, with a 0.42% increase in share price, despite a 23.6% decline in trading volume to $0.33 billion, ranking 397th in market activity for the day. The muted volume suggests reduced short-term investor activity, though the positive price movement indicates underlying confidence in the firm’s strategic developments. The stock’s performance contrasts with broader market trends, where liquidity constraints and macroeconomic uncertainties have dampened trading enthusiasm.

Key Drivers

The primary catalyst for Ares’ stock performance is the firm’s landmark $7.1 billion capital raise for its inaugural Ares Credit Secondaries Fund (ACS), which far exceeded its initial $2 billion target. This represents the largest institutional fundraise in the credit secondaries sector, with $4 billion in limited partner (LP) equity commitments and additional capital from affiliated vehicles and leverage. The scale of the raise underscores investor appetite for alternative credit strategies, particularly as Ares positions itself as a leader in a rapidly expanding niche. Dave Schwartz, head of credit secondaries, emphasized the firm’s “early-mover advantage” and its disciplined approach to diversification and downside protection, which align with market demand for structured liquidity solutions.

The success of the ACS fund is tied to the broader growth of the private credit secondaries market, a segment projected to surpass $50 billion in deal volume within two to three years, up from $6 billion in 2023. Ares’ strategy focuses on senior secured, floating-rate loans and portfolios from LP-led and continuation vehicle transactions. This approach leverages Ares’ existing expertise in credit and secondaries, supported by its $595 billion in assets under management. The firm’s ability to execute on its pipeline—bolstered by a partnership with Mubadala Investment Corp. for a $1 billion global credit secondary joint venture—highlights its capacity to scale in a competitive landscape.

Competition in the credit secondaries space is intensifying, with peers such as Coller Capital ($6.8 billion fundraise) and HarbourVest Partners launching dedicated strategies. This sector expansion validates Ares’ market positioning and reinforces its ability to attract capital. The firm’s leadership team, including co-president Blair Jacobson and strategy partners Sebastien Burdel and Chrissy Lamont Svejnar, is critical to executing its vision. Their multi-decade experience in credit and secondaries, combined with Ares’ global infrastructure, positions the firm to capitalize on the sector’s growth trajectory.

Despite the bullish outlook, the stock’s modest price increase and declining volume may reflect investor caution around valuation metrics. Ares trades at a price-to-earnings ratio of 73.05, reflecting its premium status as a leader in alternative assets. However, the firm’s recent expansion into credit secondaries, coupled with its robust AUM growth (45.54% over the last 12 months), suggests long-term value creation potential. Analysts at UBS maintained a Neutral rating but adjusted the price target to $198.00, indicating a balance between optimism about the strategy and prudence around near-term execution risks.

The broader market environment also plays a role in Ares’ performance. As investors seek alternatives to traditional equities and bonds, credit secondaries offer a compelling blend of yield and liquidity. Ares’ focus on high-conviction, diversified portfolios aligns with this trend, particularly as institutional investors seek to recycle capital through continuation vehicles. The firm’s ability to facilitate these transactions—returning capital to LPs while attracting new commitments—creates a flywheel effect that could sustain its growth narrative.

In summary, Ares’ stock movement is driven by a combination of strategic execution, sector tailwinds, and institutional confidence in its credit secondaries platform. While short-term trading dynamics remain mixed, the firm’s leadership in a high-growth niche and its capacity to scale operations provide a strong foundation for continued investor interest.