Ares Management Surges 4% as Firm Leads €300M Deal Amid Private Credit Recovery
Ares Management (ARES) shares jumped 4.38% on Wednesday morning, significantly outperforming a sluggish S&P 500 as the alternative asset manager announced a major new continuation fund in Europe. The stock’s climb to $110.30 marks a sharp reversal from multi-year lows reached last week, fueled by fresh deal flow and stabilizing investor sentiment toward the private credit sector.
New €300 Million Continuation Fund and European Expansion
Ares Management is making waves in the European private equity space today, with reports confirming the firm is leading a €300 million ($346 million) continuation fund for the frozen bakery giant Europastry SA. The deal, led by Ares’ secondaries franchise, allows the current owner, MCH Private Equity, to maintain its stake in the high-performing asset following a previously cancelled initial public offering.
In addition to the Europastry transaction, news broke this morning that Ares has successfully acquired the Janer retail park in Cádiz, Spain. The 15,000-square-meter facility features high-profile tenants like Mercadona and McDonald’s. These moves underscore Ares’ aggressive strategy to deploy capital into structured transactions and real assets at a time when traditional exit environments remain challenging for many of its peers.
Recovery from 52-Week Lows
Today's 4.38% rally is a welcome sight for shareholders who have endured a difficult start to the year. ARES hit a 52-week low of $95.80 on March 12, 2026, amid sector-wide concerns regarding loan valuations and retail credit flows. However, the stock has now rebounded nearly 15% from those depths.
Market analysts suggest the stock had become significantly oversold, with the current price of $110.30 still sitting well below the average 12-month price target of $182.67 set by Wall Street firms. Recent upgrades, including a "Strong Buy" from Raymond James, have highlighted the firm's projected fee-related earnings growth of 16-20% through 2028 as a primary reason for the bullish outlook.
Private Credit Fundamentals and Shareholder Returns
Investor confidence is also being bolstered by recent commentary from CEO Michael Arougheti, who highlighted "strong" portfolio fundamentals during a recent industry conference. Notably, Arougheti reported zero percent non-accruals in the firm’s large non-traded Business Development Company (BDC), which manages over 900 borrowers. This data point has helped dispel fears of a looming credit crisis within the firm's $620 billion platform.
Furthermore, the stock is seeing support following its recent dividend record date on March 17. Ares recently increased its quarterly common dividend by approximately 21% year-over-year to $1.35 per share, signaling management's confidence in the stability of its fee-based income streams. While the broader market (SPY) dipped 0.24% today, Ares' relative strength of +4.62% suggests a rotation back into high-quality alternative asset managers as risk appetite returns to the financial sector.
Key Takeaways
- Ares leads a €300 million continuation fund for Europastry SA, providing liquidity in a slow exit environment.
- The stock has rebounded nearly 15% from its March 12 52-week low of $95.80, reaching $110.30 in intraday trading.
- Management reports zero non-accruals in its primary BDC portfolio, easing concerns over private credit asset quality.
- Ares continues aggressive European expansion with the acquisition of the Janer retail park in Spain.