Ares Management Will Grow Further, But Upside Is Limited

Cash Flow Venue 5.55K Followers Follow Summary ARES' stock price has jumped by roughly 16.5% since my last strong buy rating. ARES delivered robust double-digit FRE growth (~20%) and record fundraising, with AUM reaching $671B and FPAUM at $410B. The infrastructure segment is driving outsized growth, with FRE up ~30% year-over-year. I expect more upside thanks to the AI and power infrastructure. Valuation has risen to nearly 24x forward P/E, moderating upside potential to low double digits, but ARES remains attractive if growth persists. That's why I'm downgrading ARES to a buy. gorodenkoff/iStock via Getty Images If you read some of my articles during the last couple of months, you probably know that I'm quite bullish about the asset management space. I argued, on behalf of several players of that sector, that Mr. Market overpanicked and This article was written by Cash Flow Venue 5.55K Followers Follow I'm Cash Flow Venue and I've been investing for years trying to build my dividend portfolio. I like dividends doing the work for me, but I also have a separate growth portfolio.I'm an M&A Advisor, which means that I advise people and businesses on selling (but sometimes buying) their businesses.I usually work on some financial models, due dilligence, and negotiations. Oh, yes - and I have to attend too many meetings :) Wha'ts my industry focus? I invest in technology, real estate, software, finance, and consumer staples. I've spent years advising clients from these industries. That's why I pay the closest attention to these sectors when investing and writing.I started writing on Seeking Alpha to learn and share ideas. Dividend investing has played a big role in my financial journey. I believe it’s one of the simplest and most accessible ways to work toward financial freedom. By sharing what I learn, I hope to make the process feel less complicated for anyone building long-term wealth. In the end, the goal is simple: move closer to financial freedom through dividend investing. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.