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- **Revenue and Growth**: Management fees up 28%, AUM at $595B, and Q3 deployment of $41B highlight record fundraising and strategic expansion.
- **Margin Expansion**: FRE margins at 41.4%, with 2026 target for 0-150bps improvement. GCP integration adds $6B data center pipeline and fee stability.
- **Market Leadership**: 10%+ wealth market share, Japan wealth launch, and 3x larger infrastructure secondaries fund ($3.3B) reflect global dominance.
- **Credit Resilience**: 93% senior debt, 1% ARCC nonaccruals, and 27% CAGR fee growth in past cycles position Ares for outperformance.
- **Charitable Impact**: $45M Promote Giving pledge underscores commitment to social responsibility and stakeholder value.

**【CEO Summary Section】**
- **Record Financial Performance**: Management fees rose 28% YoY to $971 million, FRE increased 39%, and realized income grew 34%. AUM reached $595 billion, with fee-paying AUM at $368 billion (28% YoY growth).
- **Fundraising and Deployment**: Raised $30 billion in Q3, $77 billion YTD, and $105 billion over 12 months. Deployed $41 billion, 55% higher than Q2. Infrastructure secondaries fund closed at $3.3 billion, 3x larger than predecessor.
- **Strategic Growth**: Expanded into Japan's wealth market, launched new infrastructure and credit funds, and increased 2028 wealth AUM target to $125 billion. Promote Giving initiative pledged $45 million to charity.
- **Market Outlook**: Positive on credit markets, with spreads offering excess return vs. public markets. Positioned to benefit from lower rates and increased transaction activity.

**【CFO Financial Commentary】**
- **Revenue Growth**: Management fees ($971M) and FRPR ($85M) drove 25% YoY growth in after-tax realized income. FRE margins at 41.4%, with 2026 margin expansion expected.
- **Cost Efficiency**: Compensation expenses grew 4.6% QoQ, slower than management fees. G&A expenses also lagged revenue growth, supporting margin improvement.
- **Performance Metrics**: $1.2 billion in net accrued performance income, with $500M expected over 2025-2026. Realized income at $456M, up 34% YoY.
- **GCP Impact**: $6B in data center pipeline and $331M in credit assets, enhancing fee stability and deployment opportunities.

**【Q&A Highlights】**
- **Real Estate Momentum**: Q3 deployment up 51% QoQ, 78% YoY. Diversified non-traded REIT at 7.9% YTD return, benefiting from supply-demand balance.
- **Credit Cycle Resilience**: 93% senior debt exposure, low nonaccruals (1% at ARCC), and conservative LTV ratios (42% U.S., 48% Europe). Outperformed peers in past cycles with 27% CAGR fee growth.
- **Wealth Expansion**: Wealth AUM up 70% YoY, 10%+ market share. Japan launch drove offshore demand, with 8 semi-liquid products gaining traction.
- **GCP Synergies**: $6B data center pipeline and self-storage growth, integrating with existing infrastructure and real estate platforms.
- **Fraud Concerns**: Viewed as idiosyncratic, not indicative of broader credit cycle. Strong underwriting and restructuring teams mitigate risks.


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